Apec offers hope in trade

DURING the Apec dialogue with the super powers, the small nation of Papua New Guinea was under the world’s limelight, we were exposed to the outside world and we got their attention.
Exciting.
Regardless of critics around the world and domestically, we still applaud the current regime for the most energetic move they’ve made.
Apart from all other agendas being discussed, trade was the key pillar.
This is the right time to blend our economy with larger economies.
It is very clear that we are still a developing nation and we are at a stage where capital markets are not so effective, holding back investments due to the fact that property rights are not well protected and returns are still uncertain.
We are in an economy where labour markets are not effective due to wage gaps and people cannot move to their productive stage. Our institutional frameworks are weak and the entire nation is wobbling and still on trial-and-error stage.
We should thank Apec for throwing some light on what was in the dark.
Before we look at trade, we should see where we are as a nation, and although we are developing, this is happening at a snail’s pace.
Good trade policies insulate us from negative externalities, capture dumping practices by foreign industries, etc.
PNG has a greater advantage in minerals and resources and not enough skilled workers.
We are poor production-wise stage, with less capital, poor technology and there is not enough sharing of knowledge between infant industries. These are our real obstacles and it’s a recurring situation which keeps our economy stagnant.
This is like a call of duty to our government to fully strengthen and polish up our trading policies with our Apec members to create free trade areas so that we can trade freely and meaningfully, reduce barriers, allow free movement, share knowledge, apply tariffs or remove tariffs where necessary, restrict imports and activate other recommended policies that can boost our local Small and Medium Enterprises (SMEs).
We now have faith that we will protect our domestic infant industries, we will make use of our less-skilled labourers in manufacturing, we can now export some products, we need domestic competition to increase innovations to compete with world markets.
By strengthening trading policies we can create pathways for development and growth, poverty alleviation and a healthy economy.
Our greatest test for this impending economic transition after Apec is the implementation part. We desperately need enforcement mechanisms to fix law and order problems.
We are sick and tired of opportunistic bureaucrats, favouritism, theft of people’s funds, fraud, money filtration and the list goes on.
This Apec was one of the most dramatic episodes of economic liberalisation in the history of PNG.
It is our call now to take on the opportunities opened to us regarding trade and make use of what has been thrown into our basket.

David Kennedy
University of San Carlos
Cebu City