Laurentia Laracy: PNG needs help with economic development

With its proximity to Australia, its history, natural beauty and pristine diving spots, PNG should be a "top tourist destination". Yet as illustrated by Greg Ansley's article (see link below) its reputation is that of a violent country where expatriates live in fear in compounds ringed by razor wire.

Though this perception contains elements of exaggeration (Port Moresby has many appealing features and it is questionable whether it deserves to be ranked as one of the most dangerous cities in the world) a law and order problem does exist particularly in the Southern Highlands.

Like Africa and the rest of the third world, PNG is struggling to create an economic environment that will meet the growing needs of its population. The law and order issues and the guns are a byproduct of this struggling economy.

PNG is not a strong, stable and unified country and has not prospered since independence 30 years ago. Broad-based economic growth has been well below expectations, life expectancy is only 55 years, infant mortality is high and educational attainment low.

In 2001, PNG ranked 122 out of 162 countries on the United Nations Development Programme human development index.

It is hardly surprising that young men in PNG resort to violence for thrills and survival - after all in a country without social welfare and with limited employment opportunities - what else is a young chap to do?

The Governments of Australia and New Zealand are conscious that to prevent PNG from taking on the mantle of being yet another post-colonial "failed state", its economy must grow.

Australia and New Zealand must look beyond the long-term emotive issues of law, order and good governance and identify and implement more immediate practical measures to boost the economy.

Over the past 10 years, the Kina, the currency of PNG, has become depressed. On July 4, for example, the Kina was buying only A$0.40, NZ$0.43 and US$0.30.

This depression has a direct impact on the local economy. It fails to accommodate the ever-increasing costs of importing goods and makes the export of locally produced products prohibitively expensive.

PNG's economic stagnation is not solely a product of its law and order problems. It is a consequence of the country's changing resource sector. With the closure of the gold mine on Misima Island and the eventual closure of the large Pogera and OK Tedi mines (and, in the 1980s, the shut down of Panguna on Bougainville) PNG is losing or has lost major employment opportunities.

The challenge is to find new ones. Two options are tourism and fisheries. But as tourism is dependent on stability, the marketing of PNG as a prime tourist destination is perhaps a long term goal.

From New Zealand's perspective, one avenue in which we may be able to provide a more immediate return is in the development of PNG's commercial fishing.

PNG's National Fisheries Authority supports the development of the commercial fishing industry, in particular longline tuna fishing, in which the authority claims the "PNG fisheries zone of 2.4 million square kilometres is the richest in the South Pacific".

While commercial fishing can be profitable, it is also capital and labour intensive. Papua New Guineans do not have the opportunities, skills or expertise to be truly involved, and foreign-flagged vessels take most of the annual catch.

The export of sashimi tuna from PNG is an excellent revenue stream for the country which has the potential to grow and employ many Papua New Guineans. But local involvement must be assisted and developed, training must be provided and the cost of airfreight reduced.

Unless PNG has economic growth it will not have stability. It will not have a reputation that will allow tourism and investment. Until PNG and its people are given the means to develop their own resources, economic growth will stagnate and the law and order problems will intensify.

PNG will be a paradise lost to its people and to the world and will retain its fearful reputation as a violent country.

It would be nice to think that in another 30 years when the country celebrates 60 years of independence it will not still be known, as "one of the most dangerous places on earth", as Greg Ansley reported.

* Laurentia Laracy spent a number of years working in PNG as a commercial lawyer and was involved in the tuna industry.