PNG policy moves right

 By SHIRLEY MAULUDU

PAPUA New Guinea is on the right path in terms of policy actions discussed at the recent Asia Pacific Economic Corporation (Apec) meeting in Indonesia, Treasury Minister Don Polye says.

Polye said in a statement yesterday that the Bali meeting had determined that:

• Every Apec member country must be physically sound, meaning there must be physical consolidation. 
• Apec countries must not build on debts and the governments must spend within budgets or maintain a balanced budget all the time; 
• Macro economic growth, which is to make sure there is a growth in the rate of employment.

Polye said people’s knowledge on economic issues should broaden and partnership with other counties would create balance of trade.

• Small-to-medium enterprises (SME) play a big role in the economy. 

Polye said larger corporations alone would not grow economies and that SMEs played a vital role in agriculture and tourism. 

• Infrastructure financing was needed for quality infrastructure and innovative financing strategies was required, as well as private finance;
• Trade finance, which needed  support from banks and superfunds and Apec countries need to have a strong financial system. 

Polye said building of financial markets within respective countries would allow money to remain onshore. 

Polye returned to PNG satisfied with the outcome of the Apec finance ministers’ meeting held Bali last week. 

“To ensure that the Apec region is placed on a stronger, more sustainable and balanced growth path, member countries agreed to implement flexible fiscal policies, adopt market-determined exchanged rate systems, normalise monetary policies, implement infrastructure projects, increase access to private financing and improve fiscal inclusion,” Polye said.

“The member countries also remained committed to free and open trade and investment and improve their fiscal management system.”