NRI: Good governance provides investment

GOOD governance provides a conducive environment for investment and opportunities for employment, which generate government revenue from taxes, according to National Research Institute (NRI).
The institute, however, pointed out that promoting good governance has been a long-standing issue in most developing countries, including PNG.
It released a report titled “Comparative analysis of governance and economic growth in Fiji, PNG, Solomon Islands and Vanuatu” which was authored by deputy director for research associate professor Eugene Ezebilo and research officer William Kipongi.
The report highlighted how to promote good governance in PNG.
Using some governance indicators such as political stability, rule of law, control of corruption and government effectiveness, to assess governance in the island countries, they found that:

• VANUATU had the best performance in political stability and rule of law;
• FIJI had the best performance in the control of corruption and government effectiveness;
• AN improvement in political stability and rule of law increases real Gross Domestic Product
  (GDP) per capita, or the total value of goods and services produced
  in a country over a period of time (normally one year) divided by the population and adjusted for inflation; and,
• SOME private businesses appear to be benefiting from corrupt practices in the public sector and ineffectiveness of government in providing public services.
  They suggested that good governance in PNG could be enhanced by the following initiatives:
• PROVIDING adequate funding to all economic and political institutions and promote secure and safe communities;
• STRENGTHENING the judiciary and law enforcement agencies to conduct their duties without fear or favour;
• PROVIDING effective governance institutions and tougher penalties against people who engage in corruption practices; and,
• IMPROVING effectiveness in service delivery and streamline responsibilities of the public sector.