Funding dilemma

THE Chinese “One Road, One Belt” initiative is a van with a hidden motive to purchase the sovereignty of underdeveloped countries.
PNG has already succumbed to China’s neo colonialism drive.
China’s foreign policy of debt trap diplomacy is driven by this Belt and Road Initiative through the EXIM Bank of China to exert China’s hegemony and influence in the world.
China’s thrust into the Pacific is a direct contest on US Pacific Foreign Policy in Military and Trade.
China seeing PNG as a strategic spot to penetrate the Pacific could not go easily undetected by US in its Pacific mission.
The previous government was so smart in efficiently sandwiching between the China and US Trade War to hang on the line in the tug of war between Sino-America to secure billions of kina loan from EXIM Bank of China as well as building overwhelming drive to deliver Apec.
The US President Donald Trump will hardly take on his board Chinese counterpart on international podium as far as US sovereignty and global power is concerned.
Trump deployed his deputy to the Apec Meeting in 2018 in Port Moresby only to proclaim to the world that America will never be part of a decision that entails and, in any way, promotes Sino debt trap diplomacy.
President Trump immediately after the Apec tasked Australia to curb Chinese incursion into the Pacific.
The battle gained momentum and fortitude when the Marape Government took over reign from the former government which is alleged to be the staunch advocator of “Look North Policy”.
Last week, the former prime minister criticised the Marape troop for signing the Paris Club condition.
He further reiterated that EXIM Bank loan from China is projected to be at a sound balance standing towards the end of this year that will make PNG eligible for a new loan from Exim.
An irony was even concluded that if French Total Papuan Gulf LNG were not shelved PNG would not have run to the Paris Club.
The Paris Club Creditor nations is composed of mostly European nations, including Japan and USA.
The club provides debt solution or treatment to debtor nations such as PNG. America must push Australia to offer PNG with cheap loans through a bilateral trade arrangement that satisfies the Paris Club which USA is a prominent member.
The condition set by the Paris Club is for PNG not to borrow from international commercial banks to service its existing debts but to refinance its own loans so that the Paris Club grant the suspension of PNG’s international loans.
Though a recession in the economy is already predicted, the Marape Government is applauded for adhering to IMF fiscal advises.
Marape is acutely focused to provide lasting debt solutions and bailed PNG out of the debt trap diplomacy to make PNG a rich black Christian nation.

David Kawage Bitno,
POM