Henry in Guyana

There seems to be a paradox in Guyana between wages and the cost of living. People are paid very little but the cost of living does not reflect this. A policeman earns around 40,000 GYD, which is around £120. The cost of renting a reasonable flat or apartment starts at 50,000 GYD, around £150.

It is not just the policemen however, I am told that most jobs pay very little. Teachers earn an average annual salary of 500,000 GYD after tax which is £1500. This sounds ridiculous compared to say, a teacher in the UK earning £25,000 which here would be 8.25 million GYD.

So how is the wage rate so low despite the cost of living, and how does everyone get by? I am becoming aware of what I would say is a hidden economy. There are a number of ways that Guyanese people make the difference: illegal drugs (smuggling out to the US and Europe) apparently account for 60% of the economy and corruption is a real problem.

Legitimate earnings also make the difference. Private businesses can do quite well - food sellers on the street for example can turn a profit that will cover their living expenses. Those fortunate enough to be employed by foreign companies of agencies get paid foreign salaries and can live very well indeed. The main thing however, is money coming from abroad. Someone told me that the recordable (through banks, MoneyGram etc) influx of money from abroad is 450 million USD per year. Most Guyanese have families abroad, many of whom send money back. If you consider the population to be 750,000 $450 million is a huge amount of money to come in (and this doesn't cover cash or other methods of remittance).

One of the biggest problems, in my opinion, is the low wage rate. Many jobs provide less income than is required to live unless you own your house or live with your parents. As a result fraud, theft and corruption are almost understandable to make ends meet. At the same time, the hidden economy seems to bridge the difference - if people were really paid too little the wage rate would increase. It seems like a perpetual situation of people "hustling" to get by.

I have been told that most educated people (particularly teachers) will all have applications to leave the country and are waiting for the opportunity, and I don't blame them. You could teach in the UK for a year and return very wealthy, or stay in Guyana and earn less than it costs to live.

Guyana would be a desperately poor country if it wasn't for the international diaspora, reportedly larger than the resident population. Their money props up, but perhaps also confounds, the economy.

This is my opinion at the moment, but I am sure I have more to learn...