So if you thought the dispute between Guyana and Venezuela was hot before, its scorching now!

I’m Kalilah Reynolds, financial journalist and educator.

A few weeks ago, the Nicholas Maduro administration in Venezuela called for a national referendum on several issues.

A referendum is a direct vote by all eligible voters to accept or reject a proposal. For example, when the United Kingdom voted to leave the EU. 

Now Venezuela’s referendum could spark fresh waves of troubles. 

The Venezuela government is asking the people to vote on the creation of a new Venezuelan State that would include the Essequibo Region. But the thing is, the Essequibo region is part of Guyana.

This dispute is a tale as old as time between Venezuela and Guyana. Venezuela claims that the region of Essequibo, which is currently governed by Guyana, actually should be part of Venezuela. An international ruling in 1899 gave Guyana the rights over the area, but Venezuela doesn’t acknowledge it.

Mek it worse now Guyana discovering oil left, right and centre, Venezuela, which is already a major global oil producer, seh hol’ on… we want a piece of this.

The referendum is scheduled for December 3, and if Venezuelans vote to accept this proposal, they could try to justify their claim that they own the region. But that’s not gonna go over well with the Guyanese Government, since the region makes up over two-thirds of Guyana’s national territory.

And it’s not likely to go over well with some major international players like the US or OAS. It may also tie up Guyana’s oil industry as the stakeholders try to navigate a hostile legal battle. 

Of course, Guyana has denounced the move and called on Venezuelans to reject the claim in the referendum. The government said that a seizure of Guyana’s territory would constitute the international crime of aggression.

So tense times in Guyana and Venezuela.  Let’s see what happens on December 3.

And that’s the bottom line.