Govt must take stock of self, says economist

By NATHAN WOTI
ECONOMIST Paul Barker says the Government is the weak link in the economy and society and needs to take stock of itself.
Barker said this when asked about inflation and the hike in prices of goods and services.
He said Papua New Guinea was still functioning “thanks to its communities, farmers, churches and civil society, and the formal and informal business sector”.
“But it is fragile and challenged with economic, social and security issues, including high population growth and few opportunities, violence and conflict,” he said.
“Some 1,300 largely non-performing institutions, weak governance, extremely poor public services (among the worst health and education services and outcomes in the world), poor law and order and low job creation and labour force absorption, it really needs to wake up and focus on priorities, including reforms to function more effectively and accountably in these public sector functions (including application of social and environmental standards and regulations),” Barker explained.
He said the Government needed to let the business sector play its part more effectively, to gain confidence, invest, compete, generate jobs and provide revenue to the state, without disrupting or encroaching on it.
“It’s true that running government and driving public sector reform is challenging in PNG. But the State has created its own nightmare over time, allowing systems to be progressively undermined.”
Furthermore, Barker mentioned that the situation was of Government’s own making, with leadership driven to form and retain government through a costly system of inducement and rewards, including disbursing constituency grants, and largesse provided through granting state jobs, even to those lacking relevant skills and experience.
He said it was difficult to escape that trap, and revert to effective and accountable, governance, planning and service delivery.
However, according to Barker, it was crucial that Government looked at itself and do a major shake-up, in order to give the country and the young people of PNG, and future generations, a sound future, rather than more of the current malaise of inefficiency, unaccountability, low investment and poor prospects.