In recent news, Guyana, a small South American nation with a population of over 800,000 people, has gained significant attention due to its neighbor, Venezuela. The autocratic leader of Venezuela, Nicolás Maduro, called for a referendum in early December 2023 to seek approval for the annexation of Essequibo, which constitutes two-thirds of Guyana's land. Surprisingly, Venezuelans approved the proposal, disregarding the fact that the dispute had already been settled by an international tribunal in 1899.

The recent escalation of tensions between the two countries can be attributed to the discovery of oil in Guyana. Dr. Terrence Blackman, founder and CEO of the Guyana Business Journal, explained that the oil discovery has made Guyana an attractive target for Venezuela. The 2015 oil find propelled Guyana to become the world's fastest-growing economy, achieving the highest real GDP growth rate in both 2022 and 2023.

However, Venezuela's situation stands in stark contrast. Despite possessing the world's largest oil reserves, Venezuela's economy has been in a state of collapse since Maduro assumed power in 2013. Therefore, Venezuela lacks the necessary support to pursue its ambitions of annexing Guyana, while Guyana enjoys the backing of international public law and an alliance with the United States.

Valerie Marcel, director at New Producers Group, emphasized that Guyana now feels more confident against its larger neighbor, as it has the law and international support on its side. The fears that once plagued Guyana seem to have diminished, thanks to its newfound alliances and legal backing.

Nevertheless, experts have raised concerns about Guyana's sudden economic progress. Critics argue that the country's weak democratic institutions and deeply divided politics along ethnic lines could lead to the so-called resource curse. While the impressive GDP growth rate looks promising on paper, Guyana's future may be challenging if it fails to address these underlying issues.

Gregory Brew, an energy analyst at Eurasia Group, described Guyana as being at a crossroads in its history. As it gears up to become one of the world's most significant oil-producing countries, the nation faces both opportunities and challenges on its path to economic development.

The ongoing escalation with Venezuela and the implications of Guyana's oil industry for the United States have caught the attention of oil experts worldwide. As Guyana's journey unfolds, the world watches closely, acknowledging the country's potential while keeping an eye on the obstacles it may encounter along the way.

In conclusion, Guyana's remarkable economic growth sparked by its oil discoveries has positioned the nation on the global stage. As it navigates its escalating border dispute with Venezuela, Guyana faces both opportunities and obstacles while striving for a prosperous future.