Changes and Challenges that are happening
in Papua New Guinea.
Growing Economy.
Papua
New Guinea face challenges in managing the decline of a long resources boom and
asserting our place in an increasingly global economy. Raw mineral resources
and agriculture dominate in the export profiles of Papua New Guinea which makes
it relies heavily on imports of manufactured goods and pharmaceuticals. Papua
New Guinea faces greater test in balancing the economies. Channeling revenue
from mining into other national priorities is proving difficult.
Regulatory
inconsistency and social reluctance were identified as key barriers. China’s
economic influence in Papua New Guinea was growing. The PNG government was
pursuing deeper economic ties with China. The PGK6 billion loan facility that
the government negotiated with China was meant to provide a funding source for
major infrastructure projects. But it is not clear whether PNG would be able to
access the full extent of this loan.
Public
attitudes in Papua New Guinea toward China and Chinese business were changing.
There was still evidence of some local hostility towards Chinese business. But
the behavior of Chinese companies in Papua New Guinea was improving. They were
learning how to work with local communities and doing it better than in the
past. For Papua New Guineans, dealing with Chinese companies was not so
different from dealing with Western, European or other foreign companies. A
number of SMEs were now choosing to source supplies from China rather than
anywhere else in the world. Western and European goods were less competitive
and there were signs of a wider shift in sourcing. Chinese companies had
established good links with rural trade store owners. There was a risk,
however, that all local retail and service deliverers would eventually be owned
by Asian companies, crowding out Papua New Guinean small business owners.
While
there have been suspicions and concern about Asian investment in PNG,
particularly in logging, this is likely to dissipate over time. Asian companies
have begun to outperform Western and European companies on issues like
environmental compliance and social responsibility. They are also quick to
respond to community concerns, admitting wrong-doing and compensating before
problem grow, whereas Western and European companies were perceived to be
slower in responding to problems or taking responsibility for environmental
damage.
In
Australia, the Lowy Institute’s annual public opinion polling showed
persistently negative perceptions of China. Australians were nervous about
levels of China investment and perceived China as a military threat.
Resource industry and rural development
Most
rural development initiatives in Papua New Guinea were based around mining
projects, palm oil and logging. Most of these projects were foreign owned. This
meant that Papua New Guineans were largely not participating in the development
of the nation.
Papua
New Guinea had for the most part developed good relationships with mining
companies. But regulation of the resource sector as not strong. Many mining
companies including Australian companies did not apply the standard of their
home countries to their operations in Papua New Guinea.
A
major difficult for rural people in Papua New Guinea was the lack of policy
safeguards for vulnerable communities against natural and human-inspired disasters.
Compensation and handouts from foreign companies were making people lazy. Where
there was no ownership, there was no sustainability.
Encouraging
greater participation from the young people in growing the economy and
attracting investment will be critical. In that regard, increasing access to
lending services was seen as important. Papua New Guinea banking system could
not meet the lending needs of the population. Much informal lending and
borrowing takes place outside the banking system. Making better use of
Information Communication Technology (ICT) service to improve lending services
will be important if more rural are engage with the economy.
Approximately,
85 per cent of Papua New Guinea’s population lives in rural areas but
government service delivery to rural communities was poor.
Agriculture
Agriculture
was a sleeping giant for Papua New Guinea. Developing the agriculture sector
should be a national priority.
Papua
New Guinea customary land ownership system provides a significant safety net
against external shocks through guaranteeing access to food sources. But it
also proved to be an obstacle for landowners seeking loans to establish
business, as customary-owned land in Papua New Guinea could not be used as an
assert in the formal financial system. Papua New Guinea farmers could currently
earn a reliable living wages from agriculture. If Papua New Guineans could be
confident of earning a living wage in agriculture, they could reduce their
reliance on the customary land ownership safety net.
Sustainable development
Papua
New Guinea represented nations within a nation, a land of over thousand
cultures and languages. Papua New Guinea did not have viable sustainable
development policy. The government’s Vision
2050 plan could be described as a ‘happy document’ which did not contain a
sustainable development policy or provide any clear road-map for Papua New
Guinea policy planners.
The
mining industry was working on sustainable development policies but had a long
way to go. The onus, however, should not be on investors but on Papua New
Guinea to develop its own policies and regulations to guide sustainable
development.
Investment
Negative
and often incorrect international perceptions about Papua New Guinea put
constraints on encouraging foreign investment. Such perception were skewed by
statistics and unfortunate news stories and are unlikely to shift until
pioneering companies invested and changed them. ExxonMobil’s decision to invest
in LNG, for example, changed international perceptions about Papua New Guinea
and encouraged other companies to invest.
Business
could make better efforts to publicize their success in Papua New Guinea. The
sovereign wealth fund was as important as ExxonMobil’s LNG project in informing
investor views of Papua New Guinea.
Politics
There
was increased apathy amongst youths towards politicians but not political
issues. The disengagement of youths is essentially an indication that young
people feel political parties are not listening to them. Politics tends to be
dominated by rich white men who claim Melanesian ‘big man’ status and this
create a degree of disengagement.
The
quality of democracy has been declining in Papua New Guinea. The parliament
opposition was small – numbering only five members of parliament; and unable to
hold the government to account. It could not lead to kind of debate on
legislation that was required and this risked abuse of process as the
government did not face much scrutiny. Government members of parliament tend to
become project managers of district funding programs rather than legislators
because this offers more direct engagement with their communities and
opportunities to prove they can deliver. Citizens have forgotten about the
supporting pillars of democracy which now operate on the periphery and instead
focus on politicians’ activities. For example, during the August 2011-2012
political dispute between Prime Minister O’Neill and former Prime Minister
Somare, the public debate focused on the personalities of the two leaders
rather than the legal and constitutional questions that were at the heart of
the dispute.
Politicians
sought to disparage the role of the media and anti-corruption bodies in Papua
New Guinea, which undermined their role in supporting a vibrant democracy. This
was a particularly problem because the role of media and civil society in
holding the government to account was even more critical now while the
parliament Opposition was weak. Targeting individuals was unlikely to succeed
in fostering a better quality of democracy but reforming the ‘macro-democratic’
environment held more promise.
In
Papua New Guinea, voters were more concern about the direct benefits on offer
from individual politicians. This makes politicians focused more on what they
could deliver directly to communities rather than explaining policies to
voters.
While
people in urban areas in Papua New Guinea had contact with government, it was
important to remember that most people in rural areas had no exposure to
government. Their experience of government tended only to coincide with general
elections, held every five years. Politicians were elected from the sphere of
the village, which was consistent with most Papua New Guineans’ experience of
living only within a village, rather than a national context. But voters found
it difficult to hold their representatives to account when they went to Port
Moresby because the national sphere was so big and complex. Individual Members
of Parliament simply took power away from the village.
While
increased connectivity, mobile phones and social media could go some way to
improving knowledge about the activities of Members of Parliament, it was no
replacement for their spending more time in districts they represented.
Media
The
media landscape in Papua New Guinea was changing rapidly with the arrival of
social media. The ability of Papua New Guineas to access Facebook on their
mobile phones had transformed national conversations. Mobile phone network
provider Digicel had recognized this and was launching its own news website.
But as internet penetration is still low, traditional media continued to be
important.
The
fast-changing political landscape offered an opportunity for social media and
for traditional media in Papua New Guinea. Media was no longer a
resource-intensive industry. The fact that big institutions no longer
controlled the public message was a big change. The proliferation of mobile
phones and growth of 3G allowed more people to interact with each other. People
living in rural or remote areas now had an opportunity to guide what the media
does. Social media presented an opportunity for everyone to get their message
into the public sphere.
Outsiders’ perception of Papua New
Guinea.
Outsiders
or foreigners perception of Papua New Guinea were very narrowly based. Media
reporting on Papua New Guinea focused on mining, corruption and a limited
number of other issues like crime and sorcery. It was very difficult for
journalist to sell a Melanesia story. Even serious investigative programs like
the ABC’s Four Corners struggled to promote Papua New Guinea stories.
Promoting
Papua New Guinea literature, arts and sports was one way to capture attention.
Using creative media like film and television to portray Papua New Guinea
characters could also assist.
Infrastructure Challenges
Building essential infrastructure
was a major issue for Papua New Guinea. The lack of national infrastructure
affected investment, government services and community development. Roads,
bridge, wharves, jetties, government building and utilities infrastructure were
all essential to ensure services were delivered. Responsibility for
infrastructure was divided in Papua New Guinea.
The national government managed high-cost national roads like the
highlands highway. Provincial roads were mostly funded and maintained by the
provincial governments.
The cost of building and
maintaining infrastructure in Papua New Guinea’s difficult terrain was high.
Responsibility for transport sector was split across a number of agencies,
which did not coordinate to deliver infrastructure services. A number of
provinces were only accessible only by air and rural airstrips required heavy
maintenance. There were no clear government guidelines for infrastructure
spending, which unfortunately enhanced the opportunities for politicians to
engage in pork-barreling. The procurement process was complicated. The
government requirement to obtain three quotes for contracted work was
unrealistic in remote areas. While foreign aid played an invaluable role in
supporting infrastructure building, the nature of aid program requirements meant
that technical staffs were often pulled away from important work to write
reports for donors.
If all the infrastructure plans
on the government’s agenda were implemented it would be unaffordable. There was
a need for more advanced thinking on developing infrastructure in Papua New
Guinea. Papua New Guinea is an island nation that relies on sea lanes for trade
in goods. Inefficiencies and higher cost in shipping meant shipping companies
pass on cost to consumers.
Agreements between mining
companies, government and communities in Papua New Guinea usually refer to
infrastructure and developments. Memorandum of Agreements could be structured
to ensure mining companies take direct responsibility for maintaining local
infrastructure rather than channeling funding through the government. This
would help to ensure better maintenance of infrastructure as mining companies
have vested interests in this; governments do not.
Although foreign investment in
infrastructure was highly sought after, there was some capacity within Papua
New Guinea to fund national infrastructure. Papua New Guinea two major
superannuation funds, NASFUND and Nambawan Super were large, highly
concentrated pools of wealth. There was a strong drive in financial circles in
Papua New Guinea to make infrastructural and socially responsible investments
in Papua New Guinea, which represented a paradigm shift for investors, who had
previously focused on safer investments abroad. A big issue for funds going
forward was liquidity.
Climate and infrastructure
Decisions on building
infrastructure have traditionally been based on the assumption that future
climate will be the same as past climate. Much of the Department of Work’s
infrastructure was spent on emergency repair, rather than maintenance or adaptation
work that took account of the climate.
Papua New Guinea lagged behind
other national best practice in managing climate risk to infrastructure. The
United Kingdom and New Zealand, for example, were further ahead in managing
climate risk to infrastructure and populations, and Papua New Guinea could
learn from them. Papua New Guinea has acknowledged the need to adapt to climate
change but has not resourced government agencies appropriately.
Data Collection and infrastructure
Problems with data collection
presented particular problems in Papua New Guinea. It was impossible to design
appropriate and resilient infrastructure without relevant data. In the health
sector, there are variances with data collection by national and provincial
governments, hampering effective planning. Foreign investors have withdrawn
from potential major infrastructure investment in Papua New Guinea because of
the lack of reliable data.
Health and education innovations
Poor data on Papua New Guinea’s
demographics was a major constraint on developing effective education and health
policies. There were very serious gaps in delivery of health and education
services in rural Papua New Guinea. Capacity building for local people to
provide services in rural areas was important. A large number of rural
education and health services have been closed because teachers and health
workers not from the local area were quick to live when infrastructure failure
or law and order problems arose. Ownership at a local level also brought more
effective oversight.
Education
Papua New Guinea government’s has
made a decision to provide free primary education. Although the decision was
good in theory, it had created further problems for a sector already under
enormous strain. Many schools in rural areas lacked the resources they needed
and the government was failing to supply them. Demand for education rose when
the government abolished fees and class sizes grew. Students to teacher ratios
were far too high. There were not enough teachers and retaining teachers in
remote areas was problematic. The teaching of English was inadequate, resulting
in students being poorly equipped for further education or employment. The
number of spaces at universities and colleges was also low for a country of
Papua New Guinea’s size.
The provision of free education
made it more difficult to develop community engagement and ownership, which was
an important element of oversight. An opportunity cost of more children going
to school in rural areas was a decline in household agricultural income as
children were no longer at home to help their parents with agricultural
work. This was a difficult trade-off.
While the Papua New Guinea
government lacked capacity at a national level to deliver services, it
supported the functions of provincial and local governments. Improvements in
service delivery had been achieved through reforms to inter-government
financing. Churches were very effective deliverers of education and health
services and were supported financially by the government to continue their
work. Mining companies assumed responsibility for delivering education and
health services in districts where they operated and they coordinated with
government in this task. The mining industry also provided scholarships.
Improving internet services would
be a boon to the education sector in Papua New Guinea as access to
international sources would enable teachers to keep up with international
education standards.
Greater accountability was
required to ensure government monies were being spent in the way the government
claimed. An online mechanism called ‘rate my school’ being used in the
Philippines, where parents and students volunteered to carry out audits of
schools to published online, was raised as potentially useful for adaptation in
Papua New Guinea.
Beyond formal schooling, the use
of creative media was an important tool in promoting understanding and
educating people. In Australia there are regulations about levels of Australian
content in broadcasting, which encouraged producers to reflect Australian
identity. Making local content could create heroes and inspirational targets
and assist with national-building.
Health
There were also insufficient
health workers in Papua New Guinea. There is one medical school in Papua New
Guinea, which takes only 40 students a year. More nursing colleges were
required.
Non-government organizations and
community based organizations also played an important role in supporting
health services. Many of the Non-Government Organizations receives funding from
respective government departments and donors. But despite their success and
widespread demand for their services, their capacity is also strained. Many
rural individuals who have volunteered to help their community wanted formal
employment and the organization has limited funds, a situation to many
community-based organizations.
The application of health models
that work in developing countries to the Papua New Guinea context was not
straight forward and sometimes inappropriate. There are emerging technologies
that could be applied and lessons learned internationally that could be readily
adapted in Papua New Guinea, without the need for foreign professionals that to
share their knowledge in person. For example, Papua New Guinea’s health
professionals could benefit from accessing Free Open Access Medication
education, a continually expanding database of medical resources online.
Gender-based violence
Gender based violence was a
major constraint on development in Papua New Guinea. Community education that
focused on prevention of such violence was rare. Social marketing that sought
to change behavior had to be partnered with community-based long-term education
programs.
Expanding people-to-people
relationships
Papua New Guinea who studied
in foreign countries t any level has developed friendships with that particular
nation that has endured. This is particularly true of Papua New Guineans who
went to high school in Australia. Enabling connections between children at a
young age is as important as university scholarships in developing better
mutual understanding. For example, using children’s literature to promote
reading stories about Papua New Guinea can start at a young age.
The electronic media sector
offered some opportunities for bilateral collaboration. Digital partnerships
also assist newsgathering and social connections.
Bringing together various
initiatives, dialogues and conferences could help reducing duplication of
effort to empower our youth in youth participation, employment and eco-justice.
ABOUT THE AUTHOR
Reuben Mete is the
Director of the National Youth Desk of The Evangelical Lutheran Church of Papua
New Guinea (ELCPNG). Prior to joining the ELCPNG, Reuben was an officer to the
Ministry of National Planning and monitoring serving the Ministry for two years.
He was also the CEO of the Community Based Organization called the Union of Watut River Communities Association
Incorporated for five years which gave him opportunity to represent Papua
New Guinea at the 2011 South Pacific Mining and Mining Policy Conference in
Noumea, New Caledonia. In March 2013, Reuben represents Youths of Papua New
Guinea in the Pacific Conference of Churches 10th General Assembly
which he participated as an official delegate in Honiara, Solomon Island. He
also represent South Pacific in a month long International Youth Leaders
Consultation in Germany in mid 2013 and was part of the inaugural Australia-Papua
New Guinea Young Emerging Dialogue team which engaged in bilateral dialogue in
Sydney and Canberra in Australia in
November 2013. Reuben holds an International Awards from Spark* International
in 2012 as a local Changemaker and a social entrepreneur and identifies himself
as a grassroots leader.
The views expressed in this paper
are entirely the author’s own and not those of the Evangelical Lutheran Church
of Papua New Guinea.