The discovery of oil reserves in Guyana's offshore area in 2015 opened the door to significant economic transformation of the country. While the potential financial and social benefits of this oil wealth are immense, research has shown that such resource wealth can also pose the so-called "resource curse." This thesis explores the challenges and opportunities arising from the discovery of oil resources, the historical context of Guyana's development, and identifies the outcomes of these mechanisms. It also assesses the economic progress and political measures the state has taken to mitigate these mechanisms. The thesis focuses on economic diversification and the potential development of non-oil sectors as key strategies to reduce dependence on oil revenues. The research findings indicate the presence of risks related to the resource curse, especially due to widespread corruption at all levels of government and the unequal distribution of wealth. Additionally, significant issues in transportation infrastructure, access to electricity, technological underdevelopment, and the quality of the workforce have been identified, posing obstacles to the development of non-oil sectors. Guyana has taken several key steps to protect itself from the resource curse. Among them are local content policies and measures to promote transparency and reduce corruption, particularly in the oil sector. Additionally, through investment laws and tax incentives, the Guyanese government is actively encouraging economic diversification to mitigate the negative economic impacts of the resource curse. These and other protective measures aim to ensure the long-term sustainability of Guyana's economic development.