Lack of govt coordination affecting PNG’s affairs

Lawlessness, fuel shortages, forex issues and the level of public funding, projects and politics are issues people are facing now. Institute of National Affairs executive director PAUL BARKER discusses with reporter ZARA KANU LEBO whether Papua New Guinea is on the verge of becoming a failed state due to law and order issues spiralling out of control, the struggling economy living on a deficit budget, ongoing forex issues crippling businesses, and the lack of government coordination on social and economic issues.

The Government
Barker: Many government institutions are certainly weak, badly performing or failing.
With some 1,300 government institutions, there are clearly far too many.
And there are too many tiers of government with little coordination, and in many cases, extensive misuse of public funds. Many critical institutions, including schools, are struggling to perform or even to feed their boarding students on the funds they receive.
Yes, governance is weak. We are failing to see the standards and compliance in many of the leading institutions from the election process to many leaders and officials.
They’re too often failing to provide the role models needed, and they exhibit waste and extravagance when much of society is struggling with high living costs, poor services and few income earning opportunities.
Fast growing populations and neglect of rural areas have driven households to towns and burgeoning settlements, in search of opportunities and better schools and other services.
But is where life is tenuous, as designated housing land is so deficient, and land management malpractice so widespread (including special allocations to certain favoured persons and businesses), while large numbers can be evicted or subject to bulldozing of their homes without notice.

Lack of coordination
Barker: Poor communication between responsible Government payroll, finance and taxation authorities and other public service bodies, staff and unions enabled very destructive rioting and looting to occur in January, which was all avoidable with a little consultation.
But such communication is deficient in the public sector, broken up into its little fiefdom.
The impact was crude opportunism, fear through the community and a severe further blow to business investor confidence, and disruption to needed supply chains.
Jobs and trade were lost, visitors and planned tourist travel cancelled at a time when job creation is so needed.
The political instability continued lack foreign exchange needed for trade and some investment, disruption to the fuel market, transport and power, and the horrendous loss of life from heavily armed tribal warfare, especially in some more resource rich provinces, and the seeming deficient leadership and impartiality at national and local levels in addressing these challenges to life and society, even to addressing issues like sorcery-accusation related violence and killings, leaving PNG society stunned, saddened and ashamed, while shocking overseas readers and prospective investors or visitors.

Struggling economy
Barker: The economy has been struggling for almost a decade, since the days of heady growth associated with the construction phase of the PNG LNG and initial first production. Since then, the population growth has largely outstripped economic and employment growth.
Government has tended to scare off rather than attract suitable investors, while sustaining a constant budget deficit each year since 2011, steadily raising debt, and debt servicing costs, while the government tended to squeeze the private sector out of access to forex, as it used it up on consumption for itself.
PNG has major challenges which need a strong commitment to reform to address, needing strong public engagement and support to achieve. Its challenges are not insuperable though. Many other countries, with few resources or opportunities, and with long standing conflicts, are much worse off.
But PNG’s problems will only get progressively worse, unless it bites the bullet and stops the prevailing business as usual.
It needs to really address the lack of governance, now deeply entrenched corruption, cronyism in appointments, selections and contracting, extensive manipulation and fraud in the election process. Business and investment conditions need to be improved across the board to make PNG a more reliable and competitive destination, but that doesn’t mean ad-hoc arrangements, such as local SEZs that disrupt standard investment conditions and disrupt revenue arrangements and favor crony arrangements, and attracting more unsuitable and less sustainable investors.

Government Reforms
Barker: In reforming government, it needs to be focused on its core functions of law and order services, health, education and basic infrastructure and support, or social protection (in due course) and stable economic and fiscal management, rather than borrowing and diverting limited public funds into major resource companies and projects, or running parallel budgets.
It may be tempting, but it diverts focus and funds away from core government functions, when private capital can drive investment, grow the economy and contribute to revenue through taxation.
Effective regulation and oversight is needed with the private sector, while openness with the public and public accountability and oversight by the public is needed of government.
The burgeoning overseas travel, fleets of largely unneeded 4× 4s in the capital city owned by or assigned to government leaders and officials, is a sign of weak control and lack of accountability, waste and generates public antipathy.

Social harmony
Barker: Peace, stability, economic performance and improving public welfare are signs of social harmony and public respect and good governance, but the social stability and security are relatively thin and can be readily disrupted. The riots, conflicts and poor investment and economic performance are signs of poor governance, discontent and disharmony, lack of respect for authority and society as it stands. That has to be restored, but in turns requires building trust and confidence, rather than state violence or abuse.
Restoring a failing state to a robust, cohesive and dynamic state working in the best interests of its people requires openness, listening, trust and cooperation, not division or divisiveness.