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Papua New Guinea twenty-nine years on: What does the future hold?

By Jeffrey Wall - posted Thursday, 16 September 2004


Today Papua New Guinea celebrates 29 years of independence. If you were to believe some commentators and sections of the media there is nothing to celebrate and an even bleaker future lies ahead. But I don’t agree.

Papua New Guinea has its problems, serious problems, but there are some indicators and opportunities that offer hope for the future of Australia’s closest - and possibly most strategically important - neighbour.

It has long been my view that Australia poorly prepared PNG for independence. One of the greatest obstacles to growth and human resource development in particular, is the atrocious state of the nation’s major roads.

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But this has always been the case. When I went to PNG to work just two years after independence I was appalled at the state of the nation’s roads, especially the Highlands Highway, which was still a dirt road apart from the last 30kms leading into Lae. The nation’s capital, Port Moresby, was not connected to any other major centre by road. And rural roads, so vital to agriculture were in short supply.

Today the state of public infrastructure is still very poor. This is no longer Australia’s fault, however our legacy in a whole range of public sector areas has not been good.

Over the last 29 years, up until 5 years ago, Australia has poured billions into PNG in the form of budget support. Project aid still continues to be vital to PNG. With the Enhanced Co-operation Programme (ECP) now in place, the dollar value of our aid commitment in the current financial year exceeds $450 million, or around K1 billion. It’s a substantial commitment making Australia easily PNG's largest aid donor.

There is debate in both countries on the effectiveness of these aid programmes. And it is welcome and overdue. I believe the ECP offers the way forward, because it directly targets two of PNG’s greatest needs, capacity building in the public sector and the alarming level of crime.

But let me talk about the positives for PNG as our neighbour approaches three decades of nationhood.

Papua New Guinea remains a robust democracy, different yes, but alive and well most certainly. The last national elections were generally regarded as being fair, with a few exceptions. But there will always be exceptions in a developing country like PNG. They were certainly participatory with almost 70 per cent of eligible voters casting their vote in what is still a voluntary voting system.

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In the 2002 national elections about 80 per cent of sitting MP’s lost their seats, including some Ministers. The electorate unceremoniously dumped most of the Morauta Cabinet.

Political stability is not as strong as it needs to be, but the parliamentary system does work. The strengthening of political parties, vital to securing stability, is a “work in progress” and like many things in Papua New Guinea it's often a case of two steps forward and one and a half backwards.

The macro economic position has improved remarkably under the current Government. However there are serious fiscal problems that require attention, with consensus on solutions politically difficult to achieve, and even harder to implement.

The public service is not in good shape, but with the ECP and several structural adjustment programs now being implemented, key agencies such as the Treasury, should improve in capacity. Australia’s public service legacy to PNG was also inadequate.

But PNG has perhaps the world’s most robustly independent judiciary. Anyone who saw the magnificent “Australian Story” on Lady Carol Kidu on Monday September 13, 2004 will have seen numerous references to the judiciary her late husband, Sir Buri Kidu, crafted after independence.

The advantage of an independent judiciary responsible for upholding the constitution as well as administering civil and criminal justice, is that it serves as a check on excessive government and abuse of the parliamentary system. It is a protector of democracy and freedom of speech (something the National Constitution guarantees) and ultimately a bulwark against corruption in public office.

There is debate in Queensland today about the appointment of judges by politicians. It is the practice in all jurisdictions of Australia and is increasingly being brought into question. Papua New Guinea’s judiciary is not appointed by the government of the day. Judges are chosen by an independent commission, the members of which include a representative of the government, one from the opposition, the chief ombudsman (a constitutional office holder) and the Chief Justice (also normally appointed to the bench through this independent process). So the Government does not appoint - and stack - the judiciary, which interprets the constitution, though it does appoint the Chief Justice.

In PNG the judiciary has diligently upheld the constitution, freedom of speech and the rule of law. It has made some impact on corruption in public office, although it remains a problem.

Another significant advantage PNG has is an abundance of natural resources, such as gas, petroleum and minerals such as gold copper and nickel. The development of these resources have been largely free of corruption at any level. Perhaps of greatest potential is the nation’s vast gas resource. The Gas-to-Queensland Project  would underpin national revenues and provide cheaper electricity, facilitating PNG industry. The vast fisheries resource also has great potential to provide social and economic benefit.

Papua New Guinea has some critical problems beyond those already mentioned. The incidence of HIV/AIDS is an emerging social tragedy that will have wide ranging economic consequences. The delivery of basic services, such as health care is poor, but there are signs the crisis in service delivery will finally be confronted with a re-structuring of the public sector and a more stable fiscal position.

Papua New Guinea is not a failed state or anything like it. There are serious problems, but there are also opportunities. Good governance and the help of friends, including Australia, can convert into a better future for our five and a half million neighbours.

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A version of this article was first published on Ambit Gambit - our blog - September 15, 2004



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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.

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