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.
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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.
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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.
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