Comments

Manuel, thanks for your comment. I think there's a misunderstanding here. The 'shortage' of foreign exchange ('forex') is not occurring in PNG. It is occurring in Indonesian Papua where Indonesians are unable to find enough kina to pay for the imported commodities they want to buy from PNG. The situation arises because PNG cross-border traders INSIST on being paid in kina (PNGK). They will not accept Indonesian rupiah (IDR) because they are unfamiliar with trading in foreign currency and unaccustomed to exchanging IDR for PNGK at a formal currency exchange (even though Bank Indonesia has established an exchange bureau at Pasar Skouw). Similarly, PNG customers who cross the border to buy commodities at Pasar Skouw INSIST on using their own currency (PNGK) since they are not accustomed to, or comfortable with, using the exchange bureau at Skouw to exchange their PNGK for IDR. So the Indonesian traders at Skouw offer their goods with PNGK prices. They are happy to accept PNGK because they know that they can sell it to the exchange bureau and receive IDR. The 'shortage' of PNGK occurs in Indonesia (not in PNG). It is caused by the interruption to market trade due to the border closure because of COVID. PNG buyers have stopped coming to Skouw and the local branch of Bank Indonesia is unable to meet the local demand for PNGK used to finance purchases from PNG traders. The insistence by PNG'ns that PNGK be used to conduct both imports and exports reflects the fact that they are unfamiliar with foreign exchange transactions and have a better sense of values when prices are expressed in terms of the familiar currency (PNGK). This is another aspect of the inexperience in market transactions which is at the heart of the story I tell about Pasar Skouw. PNG'ns will get better deals when they learn to carry a hand calculator and work out which currency is better to use in any particular set of circumstances. This is where Arthur Lewis comes into the story, since the remarks I quoted deal with the problem of the unfamiliarity of market processes.

The other side of the coin is that employers will take SWP workers because they are a lot more reliable in a busy time of harvest. They are also more inclined to request the best of these back in subsequent years. WHM workers are less favored because in busy times they will walk and have less loyalty to the farmer. Can take longer to train and the grower is less inclined to invest in that training. SWP have a support network and reasonable standards of housing, where the WHM often live out of vehicles causing problems for shires regarding health standards. Is it just a case of the grass is always greener?

Excellent post. It seems the economic damage of Fiji's 'brain drain' is huge. I am curious to learn if Fiji's policy of keeping wage rates low has also hindered economic development.

I am Nicolau Piedade currently I am in East Timor I am one of the seasonal workers. Concerning your article, I would like to get the idea from you. I know the majority of SWP workers from East Timor has left their jobs to find another work due to some reasons and the COVID situation. To this do you think approved employer could continue to recruit Timorese workers to work in Australia in regards to absconding? Is there any impact for the future if the worker applies for a protection visa or bridging visa? If the workers don't fill the requirement will the Australian home affairs deport them? Best Regards Nicolau Piedade SWP in Port Augusta, Adelaide, S.A

I was writing something along political instability and corruption and your articles ( Does political instability consolidate irresponsible government? pNG 2012-2018 [2018] and one last hurdle, and uncertainties) [2021) are very helpful in a manner well articulated which enables me to understand the relationship between these two in PNG context. Thankyou very much Mr Kabuni and I'm looking forward to read more of your articles. Your student.

Very interesting. Sometimes Fiji fancies itself as the Singapore of the Pacific, at other times as the Mauritius of the Pacific, with even some talk of one day emulating Australia and New Zealand. But the results say otherwise. That it will take Fiji four decades to match Mauritius shows just how far behind we have fallen. Of course the social and political contexts are very different. For one, there is no major conflict between descendants of an immigrant group and an indigenous population which fears political and economic marginalisation. There is no oversized military with a huge budget and a penchant for coups. Fiji Governments, including the present one, have tried hard, with a measure of success, but Fiji is not an easy county. Still, the comparisons are telling in many respects, and perhaps a reminder of what could have been. Looking forward to the next blog.

Thank you Michelle. Insightful. Yet quite emotional.

Good question. Firstly, PNG residents along the border who are involved in the trade are illiterate of the current shortage in forex faced by the country, and don't care about it because the govt does not care about them. This is proven by less to no govt services found along that area. Secondly, the PNG govt has not provided a forex facility in years along the border, despite being aware of the trade along the border. The PNG govt won't in the later dates too, because it will indirectly encourage illegal immigrants to cross border.

Thank you Nico, That's an excellent explanation. Thanks again. Terence

Thank you Dr. Amanda. It is interesting to note 2.8 million active mobile phones owned by almost 2.5 million people. As we all know active mobile phones correspond directly to numbers allocated by each mobile network service provider and captured in their database as active or online. A population census is important now to help telecommunication service providers plan, develop, and strategize their networks to either expand or concentrate into areas worth their ROI or directed by government under Universal Access Service. Missing data on latest population spread and density is indeed needed for forward planning.

Many years down the road now (2021) it never ceases to amaze me how many non-aid-workers (even if there is such a typical thing as an 'aid worker') have an opinion about aid work. Firstly, without a Toyota Landcruiser, a Nissan Patrol, or a Mitsubishi Pajero and the like a) many destinations could not be reached, b) aid work employees would die at increasing numbers in traffic accidents, increasing death and disability insurance liability multifold, c) maintenance and repair costs to keep anything of less quality on the road would skyrocket and d) the numbers of passengers, cargo and equipment that could otherwise be carried would have to be left behind. Secondly, being mostly duty and VAT exempt and in the quantity of (basic non-comfort) field-specs ordered directly from Toyota global, at some point a Landcruiser cost an IO or NGO no more than 17.500 USD ex-works. When sold 3-5 years later at auction they would often bring in between 25.000 and 30.000 USD, actually making fleet operation a fundraising activity. Thirdly, as a university-educated logistician I chose aid as my calling. My wife and kids didn't. Therefore to have me in the field I am no mother Theresa, I don't walk around in flipflops and plain rice and matoke every day would soon put me out of business, so yes, to continue to pay the mortgage and insurances on my house and other assets and interests in The Netherlands, to sustain a life of comfort for me and my family while I put in 60+ hours per week, to not have my family robbed, kidnapped, raped, killed in the streets of a city like Nairobi while they get on with their life as I get on with my work ... my annual payroll, housing, security, international schooling, R&R travel and other support costs to a professional organisation can be anywhere between 100.000 and 200.000 USD. However, I would manage up to 100 vehicles, trucks and drivers, oversee warehousing and distribution of millions of USDs of supplies for tens of thousands of beneficiaries, manage multiple office and operations service support contracts of tens of thousands of USDs, train and coach staff and partners in the field in efficient logistics principles, etc., etc. I'm sorry to say but I am not able to do that for free. Irrespective of all the suffering and meagre future perspectives of the fellow human beings I will try to help alleviate the suffering of during my working life, at some point I will retire in The Netherlands at a standard of living that is commensurate with being a Dutch citizen.

We are at the very trend of surging Covid-19 cases popping up everywhere in the nation. The least that was expected from our representatives (elected MPs) on 20th April, was a deliberate and thorough discussion on the current issue affecting our country and the global community. It was anticipated, a strong and brilliant solution on the current synchronized crises would come about from the government corner to rescue the declining economy, however, nothing eventuated. We are only seeing updates on Facebook. Adjournment of the parliament sitting to August, announced as a health and safety measure, was the only way out for Marape and his team to safeguard their title. Was Marape being ruthless? YES, I'd say. I say this with no political interests but with compassion for the lovely people of this nation. If you walk the streets of Port Moresby (or other towns for that matter) and interview families, you will be heartbroken by their testimonies on how they are surviving in this crises, and question, whether or not, our current government really represents the 8 million plus citizens or represents 56 or 65 (whatever the quorum it is). They are surviving with no formal employment (sacked during lock-down), chased by Police when entering informal employment, living on a deficit budget daily due to rising inflation, and ultimately in fear of contracting covid. The Hurdle is settled but the triple crises (health, economic and education) and the cries of the people is pending till August.