Discussion on growth of private sector

 A MISSION from the Melanesian Spearhead Group (MSG) was in Papua New Guinea last week to discuss private sector development in the sub-region.

MSG members from PNG, Fiji, Solomon Islands, Vanuatu and New Caledonia/FLNKS acknowledged the pivotal role of private sector development for broad based growth.

While MSG members have been experiencing continuous economic growth in recent years, largely natural resource-led and tourism-driven, specific policies and regulatory reforms are needed for addressing some of the key long-standing impediments to business, for cutting the costs of doing business and moving towards more responsible and inclusive development.

In PNG, key obstacles to business are related to access to infrastructure and energy, security and logistics challenges. 

According to data collected by the World Bank’s Doing Business Report 2015, starting a business in PNG requires 6 procedures and takes 53 days.

The European Union (EU) is traditionally supportive of regional economic integration, in Europe and in partner countries. 

Through the coordination of the Pacific Islands Forum Secretariat (PIFS) the Union is providing assistance to the MSG for creating a business enabling environment and overcoming trade impediments through the Pacific Integration Technical Assistance Project.

Expected results of the initiative are “Improved ability of the private sector to engage in the process of trade policy development and to access export opportunities from implemented trade agreements” and the formulation of a “private sector development strategy for promoting private sector activities in MSG countries including women entrepreneurs”.

This support at regional level is complementary to the bilateral EU-funded Trade Related Assistance programme phase two for Papua New Guinea; a K18 million intervention that aims to help PNG benefit from multilateral and, in particular, bilateral trade agreements, such as the EU-PNG interim Economic Partnership Agreement for sustainable development.

EU Ambassador Martin Dihm said: “The European Union seeks to encourage and support private sector in the Pacific to contribute to responsible, sustainable development.”