PNG, VERY RICH YET STILL A VERY VERY POOR COUNTRY

by GARY MONDULAME

Papua New Guinea (PNG), a nation blessed with abundant natural resources, continues to grapple with economic challenges that belie its potential wealth. The nation's economic narrative is a paradox—rich in resources yet burdened by poverty. The explanation for this paradox lies not only in economic mismanagement but also in deep-seated corruption that has permeated the political landscape since independence in 1975.

Following its independence from Australia, PNG was entrusted to leaders who lacked a vision for a holistic national development. This absence of foresight is evident from the lack of long-term development plans that could have distributed the country’s wealth fairly across all regions and communities. Successive governments failed to establish foundational strategies such as building satellite townships or creating robust rural housing schemes. Instead, they resorted to short-term, reactive measures that did not foster sustainable growth.

The nascent leadership quickly recognized the power and opportunities afforded by access to significant public funds. This newfound wealth was a departure from their humble beginnings, and it didn't take long for a culture of greed to take root. In PNG, this phenomenon became known as the "money big man culture," where wealth and authority are concentrated in the hands of a few, often above the law. Leaders began to misuse and siphon off public funds to maintain their lavish lifestyles, thereby setting a precedent for corruption that persists to this day.

Politics in PNG has increasingly been seen not as a service to the public but as a means to amass personal wealth. This transformation has had dire consequences for the political landscape, including the rise of corruption, violence, and election fraud. The political arena has become a lucrative business, attracting individuals more interested in personal gain than in the welfare of the populace.

The entrenched corruption has led to the creation of networks of cronies and bureaucrats who facilitate the diversion of funds from public projects to private pockets. This systemic graft is supported by the "wantok" system—akin to nepotism—which furthers personal over public interests. Each new government brings its cadre of associates, perpetuating a cycle of corruption that has become almost institutional in nature.

Leaders have sought quick profits by exploiting natural resources, often providing tax incentives to multinational corporations at the expense of other sectors like agriculture, which is vital for local subsistence and employment. This short-sighted economic policy has resulted in environmental degradation and has not led to significant improvements in the standard of living for the average citizen.

Despite the billions in revenue from resources like oil, gold, and timber, there has been little to no improvement in the living conditions in the areas where these resources are extracted. Places like the Hela province, rich in oil, still lack basic amenities such as electricity and water. This stark disparity highlights the failure of wealth distribution and the inefficacy of development policies.

PNG stands at a crossroads. The path it has been on for decades has led to stagnation and increasing inequality. A new direction requires confronting and dismantling the entrenched systems of corruption. This involves not only legal and political reforms but also a cultural shift towards valuing transparency and accountability.

The need for change is urgent. The country’s vast resources could fuel significant development and dramatically improve the quality of life for its people. However, without addressing the root causes of corruption, any economic gains will likely be ephemeral and unevenly distributed.

The current generation in PNG faces a monumental choice: continue down the path set by its forebears, or forge a new one that promises a fairer, more prosperous future. It is imperative that citizens demand more from their leaders and actively participate in reshaping their country’s political landscape. International partners and local stakeholders must prioritize good governance and help build institutions that can withstand the pressures of corruption.

For PNG to escape the cycle of poverty and corruption, it requires a concerted effort from all sectors of society to demand and implement sweeping changes. Only then can it hope to utilize its natural riches to generate real prosperity for all its citizens.