Guyana's potential economic development was hurt in 2000 as border disputes with both Venezuela to the west and Suriname to the east heated up. Suriname and Guyana have been unable to resolve the border dispute in an oil-rich coastal area. Venezuela's president Hugo Chavez has revived the 19th-century claim to more than half of Guyana's territory.
In March 2001, Bharrat Jagdeo won a second term in elections that underscored Guyana's bitter racial tensions. The reelection of Jagdeo, an ethnic East Indian, caused rioting among Afro-Guyanese, who claimed widespread election fraud.
In Jan.–Feb. 2005, the country experienced its worst natural disaster. More than a third of the country's population was affected by devastating flooding.