Diverted funds not bringing growth

THE Government is promoting trade and investment in Papua New Guinea.
The issue boils down to whether it is paper or real promotion of investment in the country.
Trade and investment in PNG must be anchored on long-term national growth and development targets set in a national development plan.
The national development will lay out sectoral and overall growth targets for non-mineral sector (agriculture, forestry, fisheries, services) and mineral sector (mineral, oil and gas) of the economy.
A commitment to growth targets requires dedication of funding through the annual national budget by the Government to build infrastructure and institutional and implementation capacity to develop the non-mineral and mineral sectors of the economy.
Achieving the long-term growth targets of the national development plan through dedication of resources and capacity building will naturally encourage trade and investment in PNG.
However, experience in PNG has be very dismal.The Government is diverting funds allocated in the annual national budget to sectors that are not encouraging production for export and domestic consumption.
The creation and ownership of inefficient Government-controlled monopolies are elevating more operating costs for the Government and private business.
This situation has created an economy that is highly dependent on imports, while exports have waned since independence in 1975.
The exceptions are palm oil and mineral production and exports.
It has resulted in sectoral and total growth outcomes that are highly volatile and unpredictable.
The economic environment is now not conducive and is discoursing private sector trade and investment in PNG, especially in the non-mineral sector.

Concerned citizen