By David Ephraim Cloudiuz

Lessons from Nigeria, a nation that best illustrates the contradictions of being a producer of crude oil but an importer of petrol and diesel; when commercial extractions of crude oil began in Nigeria in 1958, the nation was producing 4,000 barrels per day. This climbed to over 2.2 million daily, Apart from fueling climate change; crude oil exploitation in Nigeria has fuelled corruption, poverty, disease and violence.

The US$15 billion PNG LNG project is estimated to export nine trillion tones of gas from the Highlands of Papua New Guinea to Markets in Asia over the next 30 years, some estimates suggest PNG’s gross domestic production will double over next 30 years, providing PNG Government with a revenue stream to invest in badly needed infrastructure, health and education through its 19.6% shareholding in the project. It’s not only the Exxon Mobil project, PNG has other LNG project lead by InterOil Corporation, Canada’s Talisman Energy. Papua New Guinea is home to many leading multi-national’s mostly investing in mining and petroleum projects. The future seems bright given inflows of revenues, employment and business opportunities generated through large extraction investments.

Realizing its own failures to maintain modern and quality infrastructure, the National Public Private Partnership (PPP) aims to be provide opportunities for private sector investments in key infrastructure.

Off course, you can’t leave out big players like World Bank and IMF, PNG Government is in discussions with them in seeking assistance with its introductions of Special Economic Zones to encourage and facilitate investments. Currently PNG sits 102nd out of 183 countries in the World Banks doing business ranking, with support from IMF and World Bank, Papua New Guinea’s rank might improve as demands for its resource sector pressures Government to pass legislative policy changes for investment confidence.

However, social indicators’ including health continues to drag behind many of its smaller neighbors around the Pacific. The government continues to rely heavily on donor assistance in meeting up lope holes within its social and health infrastructure and service delivery.

It’s a clear indication of a Government pushing for Macroeconomic stability by providing guarantees for foreign investments, while lacking or providing minimum micro economic policy and legislative means for its own people.  Many Papua New Guinean’s lack opportunities in entering business as tough credit accessibility provides little hope for sustained business growth these provides poverty growth and increase social problems due to limited opportunities.

Lessons learnt from many Global South nations or known as developing countries of Southern Hemisphere, show’s clearly that both World Bank and IMF has been providing assistance to Governments for legislative means in support of foreign investments giving small opportunities for local economies. There arguments as been strong macro economic stability will provide needed large investments, in return revenues flow would enable governments to provide infrastructure development and meet health and education obligations.

So what will PPP do to help improve ordinary Papua New Guinean’s wellbeing and opportunities? nothing or limited the rich gets richer and the poor gets even poorer,  we have seen this played in many developing countries both special economic zone’s and PPP given to much pressure on ordinary people employed protections to employment security and other related rights.

What PNG government is doing is continuing the cycle over and over without realizing mistakes from same initiative mostly lead by World Bank and IMF in many developing countries.

What the Government needs to do now, is to provide legislative changes that can accommodate micro economic integrations into macro economic policies currently pursued whiles giving fair opportunities for its people.

Public Private Partnership should not be done, mostly because issues of social security and other services to people is non existence.  Urban population makes about 20% while 80% live in rural areas putting price on infrastructure through public private partnership or privatization of key infrastructure like water and sanitation is totally uncalled. What we are doing is pressuring ordinary citizen’s pockets by introducing developed or middle developed nations policies; if these policies are to be pursued than Government should improve living conditions including employment and wages conditions to meet macro economic policies.

The Government has no excuse there are millions of kina pumped each year through inflows of revenues by over 6 mining and petroleum investments in the country even since before independence.

Unfortunately Papua New Guinea is heading Nigerian style economic growth, maybe we should start inviting Nigerians to visit PNG and share its challenges and lessons so we can better provide the best for our growth. Because PNG is currently Nigeria many years ago, Nigerian’s are very intelligent people like Papua New Guinean’s but nepotism and other social cultural continues to pressure countries progress.

The solution relies heavily on change of political culture, including change of political leadership to a more transparent government providing better policies to drive changes and improvements to current social and economic indicators.

In other words, every answer is here in PNG at schools, universities, churches and streets around PNG, the People must rise up and demand change, let’s join the waves of changes blowing around the Middle East.

God Bless PNG