We need to learn from our neighbours

IN this globalised world, any forms of government either communism, socialism, democracy or other ideological regimes, their centric function is to control inflation rate, curb unemployment rate and curtail minimum tax regime threshold etc to promote wellbeing of the citizens.
In PNG, gross mismanagement of the economic system, consequently the economic outlook is very bad with negative implications affecting the citizens, business trade diplomacies and foreign investors are lacking confidence in PNG economic whereby business investments shrink under Pangu Pati.
Some dangerous trend set are prolific and few are stressed here.
The Central Bank (Bank of Papua New Guinea) Act 2000 is one.
For instance, Temporary Advance Facility Rate limit of printing money is K300 million or less but with new provision alteration it has increased the amount to K1.5 billion or more.
In addition to the gross economic mismanagement of this country, these five key policies are not independently enforced and applied by the Central Bank in collaboration with the government to fight height inflation rate include: The Exchange Rate Policy, Wage & Price Control, Supply – Side Policies, Fiscal Policy and Monetary Policy.
If these are independently applied by BPNG with no government’s intervention, the inflation rate could have been properly contained to relax the general prices of goods and services to reduce inflationary pressure from our citizens.
Next is excessive loans for consumption and not for development. Loans have requirements and one of the requirements from the IMF is the value of currency will be reduced. It’s like a neocolonialism in modern economic system whereby a lender can have influence in one’s economic system.
Forex issue, superseding debt ceiling, decreasing purchasing power etc are the results of bad government meaning the government is not for the people but for few oligarchs.
Finally, globetrotting is very expensive exercise for a developing country whereby its revenue is based on extractive industries.
The tax payers’ money must be properly used to address country’s basic needs.
Look at Japan. The leadership of Tokugawa period, Japan went into isolation for more than 200 years, building economic foundation very well meaning economic leakage has been patched.
Now look at North Korea under the leadership of Kim JY, it gets into isolation and building robust economic. As a result, North Korea is becoming one of the military power hegemon countries competing with the West including United States.
Such leaders are not travelling and spending much money like this Government.
We need to learn from our neighbouring countries especially Asian countries to be smart in managing our economic system.

Max Wapi
Millep, Jiwaka