Economist blames lack of coordination, communication

PAPUA New Guinea’s economy will continue to struggle if there is a constant lack of coordination and communication by the Government and its agencies.
Institute of National Affairs (INA) executive director Paul Barker told The National yesterday that the country’s leaders and planners needed to allocate and manage resources effectively in order to navigate through the current difficult period.
“The economy has been struggling for almost a decade since the days of heady growth associated with the construction phase of PNGLNG and initial first production,” he said.
“Since then the population growth has largely outstripped economic and employment growth and the Government has tended to scare off rather than attract suitable investors, while sustaining a constant budget deficit each year since 2011.”
He said steadily raising debt, and debt-servicing costs, and the difficulties of accessing foreign exchange, particularly for the private sector, as well as uncontrolled spending had placed the country in a precarious position.
“PNG has major challenges, which need a strong commitment to reform to address, needing strong public engagement and support to achieve.”
He said the events of Black Wednesday on Jan 10 had served to highlight the state of affairs in the country.
Barker added that lawlessness, fuel shortages, ongoing forex issues and the level of public funding, delays in major resource projects and political discontent were contributing factors to the current state of the economy.
He said the Government needed focus on its core functions of law and order services, health, education and basic infrastructure and support, or social protection and stable economic and fiscal management.
“PNG’s problems will only get worse, unless it bites the bullet and stops the prevailing business-as-usual attitude.”