Papua New Guinea sets audacious goal

FE Team | Published: June 26, 2019 22:41:40

PORT MORESBY, June 26 (AFP): Papua New Guinea's new prime minister has an ambitious -- cynics would say far-fetched -- objective of turning one of the world's poorest countries into the "richest black nation" on earth in just a decade.
If national economies were like football teams, then Papua New Guinea would be near the bottom of the table struggling to avoid a relegation dogfight.
Violent crime and corruption are endemic, reliable electricity is rare, and population centres sit like isolated city-states, surrounded by trackless jungle and mountain ridges that soar into the equatorial sky.
As rich as Papua New Guinea is in culture, language and beauty, it is the 153rd most developed country in the world out of 189, according to the United Nations -- doing slightly better than Syria, marginally worse than Myanmar.
New prime minister James Marape wants to change that. He has promised that within ten years his compatriots will live in "the richest black Christian nation" in the world.
That is not going to be easy. The current titleholder is the highly industrialised economy of Trinidad and Tobago, where the average resident earns around 833 per cent more than Papua New Guinea.
If the British territory of Bermuda were also included in the rankings, the task would be even more daunting.
Papua New Guinea's economy would have to grow at a world-beating rate of around 30 per cent per year, every year for the next ten years just to catch up.
"PNG has never experienced 30 per cent growth in the past; nor has any other country for that matter, at least not for any sustained period of time," said Maholopa Laveil, a lecturer in economics at the University of Papua New Guinea.
To reach his lofty goal, Marape appears to be betting on a surge in gas revenues and more of that cash staying in the country.
He has hinted that he may look to renegotiate a massive liquefied natural gas (LNG) contract with Total and ExxonMobil that would double national production to better benefit the local economy.
He has also promised to stop the export of unprocessed hardwoods and tackle corruption. But the strategy comes with risks.
The World Bank has warned that even before a second LNG project comes online, the economy has "become increasingly concentrated in petroleum and gas-related activities".