Book highlights ‘PNG in a trap’

A recently launched book on the country’s economic growth since Independence, has seen Papua New Guinea described as being in a “hyper-political, insecurity, low-growth trap.”

The book titled “Struggle, reform, boom and bust” - an economic history of PNG since Independence, co-authored by Australia National University's Steven Howes, Martin Davies, and other local authors, was launched yesterday in Port Moresby.

Lead author Professor Steven Howes says the book tries to explain PNG's weakening but stable state, its low and increasingly resource-dependent growth, and its poor development outcomes.

Professor Howes says the 70s and 80s were a time of great optimism, where PNG was at liberty to choose how much development it wanted.

There were however structural issues like over-regulation, crisis but also one of reforms.

He adds the resource boom begun in 2004, however too much of the proceeds were spent and often wasted.

Papua New Guinea is also not only a middle income country but on some social indicators, its right at the bottom.

Professor Howes says in recent years, PNG has had the lowest immunization rate in the world, and on some indicators – disappointing development performance compared to other countries and high hopes at Independence.

His team has put forward recommendations for a more informed discussion and decisions in future.

Treasurer Ian Ling-Stuckey was on hand to launch the book.

In a confronting presentation before the launch, Mr Ling-Stuckey admitted to failures by successive past governments, including this Government.

He says there is a need to focus on lifting living standards through sustained inclusive economic growth - admitting again that the present living standards story is not a good one as set out in the book. 

The Treasurer called for lesson to be learnt to chart a better future economically for the country, in the next 50 years.