Guyana is a sovereign, stable and democratic state with a population of 0.762 million and a per capita GDP of 4,508 PPP US$ (source UNDP – HDR 2007-8).
Guyana is a presidential democracy. Mr Jagdeo is serving his second consecutive term since August 1999, when he took up the post after the incumbent President resigned due to health problems. Mr Jagdeo's position was confirmed and reconfirmed in general elections in 2001 and 2006 respectively.
After a flood related contraction of the economy in 2005, a recovery facilitated by an improved political climate encouraging private investments has taken place. Nevertheless, the economy is now constrained by the global economic crisis and challenges in Guyana's main economic sectors, agriculture (sugar) and mining, albeit new investment in mining (bauxite and gold) may reverse the recent decline in the latter.
EC cooperation has consistently complemented Guyana’s development agenda and stated priorities in the National Development Strategy both through budget support and continued support to the Guyana Sea Defences.
The non-targeted Poverty Reduction budget support which has been implemented in coordination with the Bretton Woods institutions has proven to be a relatively efficient aid delivery mechanism. Following the EC success, other donors in Guyana are considering shifting.
Under the 10th EDF, an envelope of € 51 M is allocated to Guyana.
This envelope covers long term programmable development operations under the strategy, and in particular the continued support to the sea defences (€ 14.8 M) and coastal management, and macro economic support to PRSP and MDG (€ 30.2 M).