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Showing posts with the label Economy

NATIONAL ALLIANCE BLAMES PNC FOR COUNTRY'S ECONOMIC FAILURE

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by PATRICK PRUATCH Greetings and welcome….Sir Michael, Party President and executives, NA candidates, members and supporters.. Introduction: After serving as the Ruling Party for two consecutive terms in 2002 and 2007, the National Alliance Party was ousted in a parliamentary coup in 2011. Subsequently, a Government led by the Peoples’ National Congress took office in 2012. Looking back it is clear that management of the PNG economy was at its best during NA’s two terms in office from 2002 to 2011. I intend today to help all NA members and candidates to cast away any doubts that this may not be the case. This is an important part of our claim that NA deserves to form the next Government. NA and its candidates need to campaign in a confident and purposeful manner to ensure the return of an NA-led Government. I am confident that as head of the next Government, and with the right team behind me, National Alliance will once again be able to restore sound economic policies and ris

PNG AND MONGOLIA: INTERESTING COMPANY

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by PAUL FLANAGAN PNG and Mongolia have much in common economically. Indeed, the latest World Bank Global Economic Prospects report portrays them as near economic twins despite their  historic, cultural and geo-political differences.   If anything, Mongolia was considered the healthier of the two countries. There is now one important economic difference – Mongolia last week  recognised  that it needed help from the international community. By doing so, it mobilised $US440 million in IMF funding and an estimated additional $US5.5 billion in additional cheap loan and grant assistance (much cheaper than Credit Suisse). In contrast, the O’Neill government has failed to concede its economic mismanagement requires a similar solution – low cost financing conditional on improved economic policies.  Foreign currency restrictions are the new norm for business, but this is hurting growth and discouraging further foreign investment. There is much good that a similar assistance package co

IMF Article IV Suppression – A Poor BPNG explanation - MORE GOVERNMENT COVERUP

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by PAUL FLANAGAN The Bank of PNG, the legislatively independent central bank for the country, lost significant credibility in its recent justification for why PNG has joined the bottom 2 per cent of countries in refusing to release the standard IMF Article IV report on countries (see here ).  It remains the only country in the East Asia and Pacific not to release an IMF Article IV report undertaken in 2016. BPNG provided six “critical issues” for refusing to release the report.  However, on closer examination, there was only one critical issue (fake GDP numbers used by the PNG Treasury).  And that should be the responsibility for the PNG Treasurer to release a statement on why the PNG was suppressing an independent assessment  by the IMF of the PNG economy. What is the O’Neill government trying to hide on its management of the PNG economy? International investors will easily through see this statement. PNG’s economic standing and credibility has received a severe down

PNG HAS TWO SETS OF ECONOMY ONE FOR THE RICH REST FOR THE POOR

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by MAJOR GENERAL JERRY SINGIROK MBE (rtd) As a graduate Security Analyst I can forecast and make a critical analysis of where PNG is heading  to under the current status quo . By default , association and by choice this government and previous governments have developed two sets of economy. One that with foreign investment and investors and the other with its own people. The foreign investment seems to grow rapidly and the local businesses seems to be shrinking. The other issue is  of leadership and accountability. When matters of economic management seems to fail those in power will attempt to resurrect the economy but in haste. In which case the nation fails thus becoming a FAILED STATE because most if not all arms of government will be denied the resources and budgetary support to enforce government control . Simply there will be no longer any control.  Law and Order and the Justice system will be unable to sustain its constitutional functions . Case in point North

PNG TOO SHY TO REVEAL REAL STATE OF ECONOMY TO IMF

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by PAUL FLANAGAN PNG’s government must be embarrassed by the International Monetary Fund’s (IMF) assessment of its economic performance. In an extraordinary step, and the first time in PNG’s 41 year history of Independence, the PNG government has refused to release the IMF’s 2016 summary of the PNG economy. 98% of countries agreed to release this information in 2015 – so the PNG government has moved to the bottom 2% of governments when it comes to economic transparency. In the IMF’s final press release (see here) before Christmas (generally seen as a good time to bury bad news), the International Monetary Fund indicated that “The [PNG] authorities need more time to consider the publication of the staff report and the related press release.” This appears to be polite IMF diplomatic speak for the PNG government not wanting to release the information. The IMF mission visited in mid-2016. An early draft asking for PNG government comments would have been provided about two months ago

PNG Economy – Forecasting Confusion Undermines Confidence but RECESSION CONFIRMED

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by P AUL FLANAGAN Executive Summary The 2017 Budget was a missed opportunity for restoring credibility in the Government’s economic management. Vastly different measures for GDP are included throughout the same Budget document – not a good look for international investors and credit rating agencies LNG values are assumed to increase in the 2017 Budget by 16% while recent World Bank forecasts indicate a fall of 35%. Using official BPNG figures, and updating them for the lower growth forecasts in the 2017 budget, a recession is confirmed: (using the measure most relevant for measuring progress on PNG’s living standards) real non-resource GDP per capita is expected to fall from K2,479 in 2013 to K2,282 in 201 7 this is a fall of 8% in average living standards in PNG. According to official estimates from Treasury and BPNG, it will now take until past 2023 to get back to 2013 standards of living (see graph below).  PNG is officially facing another lost decad

A SPECIAL REPORT ON THE 2017 BUDGET TO BE HANDED THIS WEEK - A BUDGET STRUCTURED FOR FAILURE TO KEEP PNC IN POWER

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by JASON P KANGOMA Treasurer Patrick Pruaitch is scheduled to hand down the 2017 Budget in Parliament this week. Given that 2017 is election year, the Budget is certain to be dominated by the usual O’Neill Regime spin and deceit, along with wasteful and irresponsible spending measures. But the central feature will be drastic cuts to essential social services such as health and education, and further suffering for ordinary Papua New Guineans. Every successive O’Neill Budget has been a failure, creating more problems than they solve, and driving the nation further towards total collapse. This special PNG Blogs report reveals the ongoing damage Prime Minister Peter O’Neill’s corruption, greed and mismanagement is doing to Papua New Guinea.   POVERTY INCREASING UNDER O’NEILL REGIME The new announcement by the O’Neill Regime that it has obtained a K1 billion rescue package from the Asian Development Bank proves that Prime Minister Peter O’Neill’s economic and finan