Economist Dr. Martin Pertab aims for a winning track record as the first Head of Guyana’s Local Content Secretariat (LCS), established about a year ago. If he achieves his goal, it will be yet another high point in his stellar academic and professional career that started from humble beginnings in a quiet indigenous village tucked away amid savannahs and dense jungle.
As the leader of the LCS-the body responsible for overseeing and implementing Guyana’s Local Content Act- Pertab has to direct the quest for full compliance with the Act to secure optimal participation of Guyanese in the local oil and gas industry. Leading the charge to maximize local involvement in a cluster of disparate networks that serve the technology-driven sector is grueling. It requires a clear vision, exceptional skills, and a proven ability to overcome challenges qualities Pertab appears to have in abundance.
His commitment is to do whatever it takes to ensure Guyana and Guyanese get the best benefits from their world-class oil resources. “I intend to utilize local content to help build a complex economy capable of generating aggregate scale economies in the form of pecuniary as well as technological externalities between sectors,” he says. “That will eventually result in virtuous circles of growth and agglomeration of economic activity…stimulating structural transformation and helping to diversify our economy. Implicit in this outcome is also to enhance our local industries’ competitiveness.”
Acutely aware of the danger of the Dutch disease in the emerging oil-based economy, Pertab is confident that the current leaders’ game plan will protect the country. The economist supports strategic efforts to diversify the economy, invest in human resources, and stabilize the Debt- to-GDP (Gross Domestic Product) ratio.
“By the end of 2022, revenue generated by all public enterprises is expected to increase by more than GYD8 billion-or 7.1 percent-to GYD120 billion, compared to 2021, the largest increase in more than 10 years,” he explains.
“In the banking sector, the government has made significant progress in recapitalizing our central bank…From 2020 to 2021, almost GYD4.1 billion was added to our gold reserve; market securities and international reserves moved from GYD94 billion to GYD122 billion… international reserves at the Bank of Guyana increased by USD130 million to USD810 million,” Pertab notes. “The government has paid in excess of GYD180 billion, reversing the GYD135 billion overdraft that was recorded at the end of 2020. These major achievements illustrate….unwavering commitment to building a robust economy.”
According to Pertab, the government has enacted critical legislation the Sovereign Wealth Fund (SWF) Bill and the Local Content Act (LCA)-that will guard against mismanagement in the vital oil industry for the long-term benefit of all Guyanese. “So…the nation’s risk of the Dutch disease is minimal, given the existing robust macroeconomic framework and the slew of transformational projects in the pipeline specifically geared to enhance economic growth and productivity,” he asserts.
Perseverance
Born and raised in St. Cuthbert’s Mission, a small Amerindian Village around 90 miles up the Mahaica River in Guyana, Dr. Pertab is the youngest of three siblings born to his Amerindian mom and East Indian dad. His father, the breadwinner, worked as a woodcutter while his mother was a housewife. “Life was tough growing up,” Pertab recalls, especially since he and other young villagers had to walk through difficult terrain to get to and from school. “One day, on my way to school, I had to request one of my friends’ slippers to walk through the blistering hot sand,” he remembers.
At 11 years old, young Martin left his home village to stay at the Cove and John Ashram (a Hindu religious institution) and attend the Cove and John Secondary School. During his first year there, where he honed essential life skills like cooking and cleaning. “From a youngster’s perspective, life was a bit challenging: however, as I grew older, my perception of the experience changed. These very same skill sets became indispensable for my survival and adaptation in other places.” He now believes the hardships in his formative years taught him discipline and perseverance, which have served him well in his career.
One year after his enrollment at the institution, Pertab’s mom became concerned about his well-being and began looking for a guardian. “I recall seeing her going from door to door asking strangers if they could keep her son. It was heart- wrenching to witness, and more so to live with strangers. At least at the Ashram, I had friends. But I trusted her instincts and complied.” This was a turning point at which he resolved to excel in school. In 2003, he became one of his school’s top performers in the Caribbean Secondary Education Certificate exams, which gave him a solid foundation for higher education.
After completing his secondary education, he applied for a scholarship to pursue a degree in Economics. “My decision to study economics had to do with my desire to help improve the lives of my fellow countrymen, especially my Amerindian brothers and sisters. In 2004, I was fortunate to be part of a cohort of scholarship awardees to study in Cuba.” He studied in Cuba from 2004 to 2010, and after graduating, he became a financial analyst at the Ministry of Housing and Water under then-Minister Irfaan Ali, who is now the President of Guyana.
In 2014, he decided to step up his education. “I came across a scholarship offer by the Organisation of American States (OAS). The areas of priority were engineering, statistics, and agriculture; economics was not part of the list. However, I was quite determined…I quickly gathered up the relevant information, filled out the form…” Pertab needed Minister Ali to approve and justify his pursuit of the scholarship, and he was pleasantly surprised when the minister readily agreed.
As one of two recipients of the prestigious OAS scholarship, Pertab attended New Mexico State University (NMSU) in the USA and completed a Master’s Degree in Economics. When he returned in late 2015, the government had changed, and Ali was no longer a minister. He resumed his role at the Ministry of Communities and remained in that position until early 2018 when his job title changed to Housing Economist.
“The country was still coming to grips with the string of Martin Pertab earned his doctorate after overcoming oil discoveries off our coast. The buzz was to look into the direction of oil and gas as a potential career pathway.” A Commonwealth Scholarship became available, and Pertab applied to pursue a doctorate in Energy Economics. “However, things didn’t go as planned. My application was denied…” he recalls, but his mentor ex-Minister Ali advised him to seek scholarship offers elsewhere. “I took his advice… I came across the University of Aberdeen… luckily the prestigious Elphinstone Scholarship was out.”
“There were several partially-funded Ph.D. scholarship research areas. The one that stood out to me was the causes of the Dutch disease among oil-rich developing countries… there were growing concerns that Guyana could fall prey… He decided to apply. Six months later, the university accepted Pertab in its Ph.D. program and later offered him an Elphinstone Scholarship. He made a bold request for study leave with pay, which the Ministry turned down.
“I wrote directly to the Minister pleading with him for financial help… my request fell on deaf ears…. I was extremely disappointed and heartbroken.” He again reached out to ex-Minister Ali. “He assured me that I had his support… A few days later, I received a call from him for some funds to help with the purchase of my airline tickets. To help with additional funding, I sold my car, and my dad sold his truck.” After raising sufficient funds for a partial scholarship, he left for Aberdeen, Scotland, in October 2018.
Success
After spending two years there, COVID-19 lockdowns forced Pertab to return to Guyana and complete his Ph.D. online. By the time he got back in late 2020, his mentor Dr. Irfaan Ali was the elected President, and Pertab accepted a job at the Ministry of Natural Resources as the Senior Petroleum Economist. He worked on crucial policy documents related to Local Content policy and played an active role in stakeholder consultations and the framing of the Local Content Act. In early 2022, Pertab accepted the position of Director of the newly-established Local Content Secretariat.
All the while, Pertab was still studying for his Ph.D. online. In November 2022, Pertab graduated with a Ph.D. in Economics- the first person from his home village to achieve this. “Being the first to graduate with a PhD from my village is truly an honor and privilege,” he says. He encourages others facing similar or even worse hardships not to give up hope. “I think it matters not how we start in life…once we believe in ourselves, and have the commitment and determination, anything is possible.”