PNG at the crossroads

NOT until the 9th and 10th Parliaments (2012-2022), Papua New Guinea political events and economic activities saw extraordinary phenomena from unceremonious change of governments and initiation and implementation of the multi billion kina LNG projects.
As revealed, PNG’s debts drastically increased during this period from K6-44 billion which represents close to or more than 50 per cent of the national GDP for loans directed mostly at urban and resource oriented infrastructure development including the controversial UBS loan.
The successful delivery of the world class LNG project deal turned out to favour foreign investors more than the government and people of PNG .
This is a world class case of economic snare whereby poor developing countries unwittingly enslaved themselves with huge infrastructural loans.
Because debts interest debts are due, they are placed under constraint to sell their natural resources very cheaply under the pretext of foreign investment with increased local jobs creation and tax income to the government to repay its debts. The change of power in the 10th National Government made a grinding halt to avoid fall into this economic trap.
PNG is now at a crossroad.
The formationof the 11th National Parliament will determine the future of PNG whether a capitalistic government will lead PNG into an economic imperialistic society at the expense of the rural majority through free market mechanism or a socialistic government to command better deal for its resources, fair and equal wealth distribution, increase access and rural majority empowerment through government support.
This is a critical moment of history for PNG, because a mishandling can lead to political and social upheavals or civil unrest which at times this may be due to or if external economic interest and pressures are involved.

Kelvin Waukave
EHP