New economic policies in Pacific

 By SHIRLYN BELDEN 

THE slow economic growth last year has led Pacific countries including Papua New Guinea to create new economic policies that promote sustainable development. 

A report on Economic and Social Survey of Asia and the Pacific (Escap) 2013 calls for a shift by governments to secure a productive future by developing and enhancing new policies. 

“These policies must look at constructive measures and indicators that focus on developing the livelihood of people.”

The report argues that economic policies especially fiscal policies could and should play an pivotal role in achieving this priority. 

While attributing fast economic growth with vast potential in the Pacific to PNG, Escap stresses minimum wages as a key policy tool to promote inclusive and sustainable growth for the people. 

The minimum wage policy will boost workers’ income and improve long-term job prospects without adversely affecting businesses if carefully designed along with supportive adjustment measures. 

The survey said more workers are in vulnerable employment characterised by low wages, no benefits, no job security and difficult conditions of work that undermine workers’ fundamental rights. 

UN resident coordinator Dr William Adu-Krow said during the launch of the report in Port Moresby last week that inclusive and sustainable development could contribute to supporting broad-based economic growth in the region by stimulating domestic sources of overall demand, which can have beneficial spill over effects across the region through trade. 

Bank of PNG Governor Loi Bakani said: “PNG will see a new payment system introduced and carried out in the country as the bank takes on a major infrastructure reform to elevate people growth and enhance national development”. 

Bakani stressed that PNG would focus on its growing infrastructure needs such as roads and electri­city, deficit in budget and prospective outlook to defend the country when gross domestic product goes down. 

The United Nations (UN) in PNG is supporting the government to achieve a sound environment to boost economic successes.