Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Can Australia prevent Papua New Guinea becoming a failed state?

By Jeffrey Wall - posted Thursday, 29 April 2021


The second contribution Australia can make towards helping Papua New Guinea prevent falling into "failed state" status is a politically delicate one – and one the Morrison Government sadly seems unwilling or unable to address.

I need to outline a piece of political history in outlining my suggestion.

Between 1988 and 1992 I had the privilege of serving in a senior advisory role to Prime Minister Rabbie Namaliu.

Advertisement

In 1989 a rebellion on the island of Bougainville saw the closure of the Bougainville Copper Mine – then the largest resource project, and contributor to the national budget.

The effect of the mine closure was catastrophic. Around 25 per cent of the nation's GDP was taken away overnight, government revenue fell by around 30 per cent, and the national government was forced to commit enormous police and defence force resources to Bougainville.

The loss of life by rebels, soldiers, and police, in combat, and the wider loss in the community through the abandonment of health and other services, was catastrophic.

But the immediate challenge for the Namaliu Government was to address the decline in economic activity, export income, and national revenue.

I would argue that the economic and fiscal conditions in Papua New Guinea today are even worse than they were in 1989. So some lessons from the effective response then ought to be picked up by the PNG Government, and by the Australian Government, today!

The then Prime Minister immediately engaged with the World Bank on a support package that included cuts to government spending, restructuring AND a government-led campaign to secure immediate and substantial investment of the resource sector, given that the Ok Tedi Mine was the only major resource project in operation.

Advertisement

Prime Minister Namaliu personally drove this challenging endeavour, and I would argue did so with great success.

By the end of his term in 1992 work was well advanced or actually in production, at the Kutubu Oil project, Progera Mine, and the Misima Mine. Planning for the Lihir Mine was commenced.

Not only did the outcome assist the economy it sent a positive signal to investors that despite Bougainville Papua New Guinea was a secure and profitable destination for major investment.

  1. Pages:
  2. 1
  3. 2
  4. Page 3
  5. 4
  6. 5
  7. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

8 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Jeffrey Wall CSM CBE is a Brisbane Political Consultant and has served as Advisor to the PNG Foreign Minister, Sir Rabbie Namaliu – Prime Minister 1988-1992 and Speaker 1994-1997.

Other articles by this Author

All articles by Jeffrey Wall

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 8 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy