Comments

PNG has surprisingly little foreign exchange available on the market considering that it has for many years had one of the world's highest current account surpluses to GDP. That situation has prevailed even over the past three years when the country's third largest gold mine was closed at a time of peak gold prices. Restricting access to foreign exchange to various categories of priority goods and, of course, servicing the higher levels of foreign debt, may have usefully restrained imports of consumption goods, as an alternative approach to letting the currency slip and thereby also reducing demand for imports, but this restrictive approach has also had some inflationary impact, as traders/importers can no longer obtain credit and good terms on their purchases, and pass on the higher costs to consumers. As BPNG suggests, if they were in the room when resource project negotiations occurred, rather than just having to comply with the agreements reached with the State, there might been less resource project income held in offshore accounts, and perhaps less generous tax holidays (e.g. to Ramu Nickel for more than 10 years, and generous arrangements provided for LNG operations...or allowing oil producers to metamorphose into LNG operations and no longer remit oil proceeds?) Ironically, it has been the agriculture sector which has been providing much of the foreign exchange required by the rest of the economy, including government, yet this sector, which operates on tight margins and really needs support, in terms of improved infrastructure, critical services and generally enhanced investment conditions, is not given the privilege of offshore accounts, even when producing similar/substitute products, such as vegetable oils. Ironically even the SOEs in the resources sector are allowed their offshore accounts, and rather than utilising the long planned sovereign wealth fund, and a mechanism for balancing onshore budgetary and foreign exchange needs with a sanitisation and equalisation function, these rather unaccountable entities are allowed to grow (on the back of state resources) and operate, effectively, parallel budgets to the Treasury, and as a disruptive influence on monetary management. Of course the next few years, with, potentially Porgera recommencing at the end of Q1, and 2 or major more resource projects entering a construction phase in late 2024-25, could set the scene for a substantially different scenarion, but recognising the serious potential (seen over the past decades) of lurching from one paradigm to another, encouraging careless fiscal management, and certainly necessitating wise heads and measures and helpful guidance and support from PNG's friends and development partners. In the meantime, the relatively short season during which votes of no confidence are permitted is about to open up, and is absorbing much attention by the incumbents in office and the aspiring contestants for the role. This invariably poses a dangerous period for sound fiscal management, and for wider economic and resource management. Those that operate in back alleys, like logging companies, often see this as a period when they can exert influence, for example to undermine policies and commitments by government over sustainable land and marine resource management or towards emission, and to grab new resources, or seek to reduce export taxes and generally gain other concessions, even while anxious over the level of demands that might be placed upon them in return. Again, it is a time for citizens and policy advisers to seek to sustain and pursue policies and measures in the national interest, and avert short term and damaging expediency.

Wonder if being an exceptional country in terms of having one of the greatest proportions of the population trapped in rural enclaves at one of the lowest standards of living on the planet has anything to do with policing conditions in PNG?

Excellent work by Dung, Matt and Ryan.

Really good the Carbon Trade.

We can hold on to our Customary Land Titles and ILG Certificates but we will only be compensated for it while the Law of our land (PNG) doesn't recognize us with our Titles and Certificates. There is No Law that recognizes Landowners to buy shares in the projects we claim to be ours on our Traditional Customary Land. This is a sad fact. All our Resources belong to the State as the Mama Land Laws favor the State and the Developers. Drastic changes to our Mama Laws need to be amended for the Landowners to buy shares in our Resource Projects so as to benefit as much as we can. Colonial Laws on Mining and Petroleum that we adopted through Independence are long OVERDUE.

Great, Jess, ffetai.

Thanks Jess, for your always insightful views about 'our' favourite corner of the Pacific. Clare

Well said, thank you.

Thanks for the article dated on the 11th of November 2023. Hopefully, things will turn out well in the months to come. 1. Several issues, some applicants who have applied several months back and have not received any opportunity and yet some of their documents (police clearance esp) have expired in the waiting process. 2. And some hubs have already reaped a lump-sum of money from good people who have been hoping to gain access to the greater opportunity and yet still remains unattended. 3. There are potential registered non-profit organisations who have been very committed to their work in trying to get everyone on board on a voluntary basis but is yet to register into LMU due to waiting recognition from our MPs or Governors. If only this was simple as possible, all these potential youths and adults would already be in the process to be recruited. God Help Us.

Young man, great journey. You can do all things through Christ who gives you strength…

Thanks, Terence!

Very useful analysis, thanks Jess!