Be economically independent

THE economy is a living and breathing thing.
But it’s messed up by the very people who keep it alive.
It’s ironic.
The Covid-19 tragically broke out in Wuhan, China, the second biggest economy after the US.
Scientifically proven to be transmitted through wild animals, a Chinese delicacy and lucrative industry.
Forgoing health and hygiene (the opportunity cost of eatery profits), it was man’s own doing that brought not only China, but the whole world to a standstill.
This pandemic has destabilised the global economy.
It has put to the test the principles of macro and microeconomics which revolves around the
underlying laws of supply and demand.
Unprecedented lockdowns and state of emergencies announced by major economies such as the US and UK sent shockwaves around the globe causing stock markets to plummet and international trade to slow down.
Domestically, the question is not when but rather how will PNG brace itself to overcome this looming economic crisis?
The current lockdown has tested our domestic supply of goods (fuel, food, clinical drugs, etc) and services (public transportation, airline, shipping, banking, telecommunication, etc).
The 14-days state of emergency isn’t over yet and the domestic economy is already in distress.
Moreover, the developed economies such as Australia, NZ and China who are PNG’s major trading partners are stressed (and have announced stimulus packages worth billions to rescue their own economy).
How do we import food (especially rice), fuel, etc?
The inevitable result will be shortage of supplies and price hike.
When the demand increases, we expect nothing but devastating inflationary pressures, hence, the Kina becomes valueless.
If and when we overcome this catastrophic virus and its impact, may it become a yard stick for not only the Government but also PNG as a nation to invest more in its vital economic mechanisms, such as the agriculture sector, to enhance domestic food and livestock production so that we have a buffer to keep the country afloat during such difficult times.
We should also advocate downstream processing of all our natural resources (minerals, gas, marine, forestry and so forth) so that we do not depend on imports.
As a result, we can raise export earnings to improve our balance of payments as well as increase foreign reserves to stimulate the economy to be resilient to any negative shocks.

Lesley Timothy,
Pom