IT is observed that Papua New Guinea is a country where it has legislated itself down by those with vested interests during and after colonial era through all forms of suppressive laws and statutory requirements, policies and institutions managed by shortsighted people in the decision making areas to make Papua New Guineans mere spectators in their own resource rich country owned by foreigners to almost 90 per cent.
Foreigners through advisors and international financiers have dictated unsuitable macroeconomic policy for the government by advocating irrelevant capitalist economic models for this country to be a rent collector as opposed to government owing a business or running profitable businesses in this market failure domestic environment.
Countries within the region among China have taken off due to massive investments by state owned corporations to establish its footing in the economy before privatising.
Here it’s about getting well-structured state business entities outside the traditional public utility areas to be in the forefront of resource development as Kumul Petroleum among others.
Laws and formulas of resource ownership to the resource owners vis-a-vis landowners be changed to give full ownership back on what lies beyond six feet underground.
Risk free carry options on profit sharing or on final product sharing be specified to remove all burden of exploration and development costs on landowners company.
All local super funds be urged to invest and buy off profitable business by divestments.
Local small to medium enterprises (SMEs) to be assisted financially to buy off many viable foreign owned business including those operating in reserved areas.
State should establish commodity reading houses in strategic international locations under joint venture with host country businesses or resident friends of Papua New Guinea to support the marketing side of goods and so forth.
Bank of Papua New Guinea to enforce compulsory remittances of export receipts by allowing US dollar facility in the banking sector with limits of up 60 per cent be transacted out to maintain liquidity in the foreign exchange.
A big shake up is needed to revolutionise the cry of taking back Papua New Guinea.
The classic case of this analysis is the UBS loan saga to by the former O’Neill government to retain PNG majority ownership in one of the biggest resident oil and gas company has back fired because of inhibiting laws where stock market price cannot wait weeks for a government to complete its internal process or the offer will no longer be there.
But existing laws may have been breached and it’s a matter for those responsible to clear their actions and conduct when the time comes if it was done in the best interest of the country or not.
GS, Freelance commentator