Rushing Development: PART 2 ‐ RECALIBRATION

By Douveri Henao

A mining project has 3 basic arrangements. First a management team raises investments to implement their venture. The second is the mining operations team. They would survey, forecast, drill, blast and haul the ore. The last part is a processing team. They are responsible for providing large amounts of energy to power up the crushers, grinding and milling the ore to its final state, a precious metal. A typical project will interact through the management team setting out targets to feed its purchasers. They would supply resources for the mining team to extract the ore while the processing team uses the instruments to optimize levels of output for its targets.

While all three teams need to work collectively, the most intensive part of the business is the processing team. Our best and brightest are employed every year to manage hundreds of millions kina worth of assets.

The first asset is the large power stations that have either hybrid (geothermal and diesel at Lihir) or combination systems of gas or hydro with a diesel interface (Porgera and Misima). These powers up the second arrangement which is the large crushing and grinding systems as well as the demanding milling systems. Depending on the state of the ore, a mine may have up to 3 crushers and 1 grinder.

A Jaw crusher are two giant metallic fists that smashes large ore while the gyratory crusher collects standard size ores for crushing. Both of these materials then get fed into the secondary crusher that further smashes it to nominal size for grinding.

When they eventually move to grinding, bearings further smash the ore into a slurry substance.

They are then piped into the mill where the concentrator uses flotation tanks to do the 1st stripping of the slurry and the precious metal. The 2nd stripping is through the intervention of chemicals, this is known as leaching. 3rd stripping is through super‐heated temperatures in a massive oven. By this time the slurry is ready for its last strip, where electro plates attract the precious metal which will be above 90% grade. These metals are then melted and converted into gold bars. The last stage is for its transportation to the Central Bank for checks before it is exported.

To ensure this 24 hour operation is at optimum level, the processing team is further divided into 3 sub teams. A instrumentation team that monitors and calibrates all sensors related to levels, speeds, flow, chemical inputs and environmental standards. The other is the power team that ensures power generation for high and medium voltages are operational. While the last is a communications team that provides for the eyes and ears of all assets to a central processing room. It is in this room, the processing team inputs codes, formulas and upload designs based on the instructions from the management teams targets. Utmost professionalism, high safety standards and demanding hours are all part of the job.

Don, Charles and James are the processing team of the National Budget. Their 24 hour operation to optimize PNG as a pacific tiger is not only ambitious but is putting tremendous stress on Papua New

Guinea. None more so, then the sacred machines that have guarded us since our nation’s creation.

PNG’s Power Station ‐ National Budget

Fueling up a power station is a magnificent display of Man’s ingenuity. Shifting large volumes of water, heat or gas to drive massive turbines that generate electricity is a marvel. The budget is the energy source that may drive development in our country. When formulating it, executive government looks at revenue collections from all corners of the country. And they estimate raising 4 billion from our resources while sourcing almost 3 billion from borrowings. This in turn puts the expenditure levels at 7.5 billion. Apart from shaky gas other commodity projections, the borrowing and debt levels are worrisome. For the 3 billion borrowings need to be paid back and that would mean relying on future returns and in this case, almost exclusively on the gas.

Undermining Surge Protectors ‐ Medium Term Fiscal Strategy, Fiscal Responsibility Act and the Sovereign Wealth Fund.

These arrangements identify stable macroeconomic standards to be applied in the budget and resource windfalls. Both the MTFS and its implementing legislation, FRA were established 7 years ago to guide our Treasurers to maintain prudent levels of debt, revenue and expenditure so that budgets are balanced. This is an important undertaking in ensuring we are living with our means.

The SWF which reappears in Waigani soon, also has systems of ensuring prudential fiscal management. Key are the stabilization account (for the rainy day) and investment and development account (budget and other expenditure support such as the Infrastructure Development Authority).

What is a grave concern however is that Don has shifted away from the balance budget levels and opted for deficit budgets. The effects of these changes are a rise in debt levels that will trigger rise in inflation. Although he has insisted prudential management of levels at 35% is sound, volatility in the global economy and domestic economic challenges all suggest major challenges ahead for our people.

Sam Basil, Deputy Opposition Leader, has made warnings of large debt fallouts triggering similar observations. Similar caution was made by Loi Bakani, Central Bank Governor, on the need for fiscal discipline to maintain a stable monetary policy. If these warnings are not heeded to, a black out is eminent.

Peter, Don, Charles and James Dream Requires Further Crushing and Grinding

In recent times, two critical policy instruments to implement the dreams of the government: 2010 –

2015 Medium Term Development Plan (MTDP) and its fiscal cousin, 2012 – 2017 Medium Term Fiscal strategy. As mentioned above the MTFS has been tweaked to accommodate the deficit budget mantra. When considering the MTDP, it is the 1st out of 4, 5 year plans aimed at implementing the objectives of the 2030 Development Strategy Plan and 2050 Vision.

The principle modality applied is by committing to driving and resourcing 15 priority areas, cross cutting and economic issues will be addressed. As we saw in Part 1, most of the MTDP “Key Enablers” are financed are infrastructure in nature. And it would appear that the dream is buy pumping money into roads, ports, hospitals, schools, communication lines, power, police barracks, sub national governments and free education, growth will occur.

Matrices and targets aside, this dream is a chunky ore that requires further jaw and gyratory crushing thinkers to smash and separate the deadweight political baggage to the probable development gains.

Free education is a classical example. While free tuition fees have brought record numbers of our children in the education system, it is at the expense of quality education. To optimize learning, the

UN ratio for a productive class is 15 children to one teacher. The average class is 55 to one teacher.

Many are indeed not having the quality experience.

Another concern is the mad rush to construct new classrooms and deck them up with facilities but in all, no resources to produce more teachers. So not only are our children not receiving quality education, they are further denied of additional teachers. The problem exacerbates when a semi‐literate population is expected to propel the country forward by fully utilizing subsidized SME loans to grow, manufacture and provide services. At the same time, the government will provide protectionist policies as well as infrastructure investment intended to maximize their growth and contribution to the economy. This is not practical for the literally skills they possess will not comprehend the complicated commercial fiber. As such, billions of kina spent on ambitious projections will not eventuate.

This in turn puts pressure for more rent seeking extractive projects which are myopic and a bulging population not fully contributing to the economy.

Stripping In the Mills: Balance the Budget and Drive Education and Non Extractive Economy

I am willing to make Peter, Don, Charles and James dream my dream if they have the faith and confidence to strip the anxiety of doing everything in their current term. Even James remarked at the budget lock up, Rome wasn’t built over night and PNG certainly won’t be built in 5 years.

Therefore, they should maintain the multi-year budget but run it as a balance budget.

This would mean using its resources to provide cap ex projects that will be the enablers to drive growth. Therefore, not all the roads need to be fixed, those that are critical to drive growth. Case in point, forget the NCD upgrades that are worth hundreds of millions of kina. Divert it to the feeder roads of the coffee, cocoa and copra belts. Increase power supply in these areas so that productivity will increase.

Equal attention is also required to improve the literacy levels of the bulging population, in particular, the workforce population (18 – 65) where dangerous levels of over 60% are not productive. A dynamic education system to produce high levels of school leavers proficient in reading, writing and mathematics. Those that can continue the journey to high education must progress but for the masses that can’t, build a vibrant vocational and technical trades. We need to move away from glorifying universities as the ultimate indicator of productivity for our young people.

The other is investing in the Non Extractive Industry. Mining operations and others in the extractives are rent seeking and therefore are enclave in nature. So while providing resources to a few and having large environmental impacts, the wider return on the population is limited. Conversely, investments in agriculture, manufacturing, services provide wider catchment of the populace to participate in.

When the Processing Team and their boss realize the development clock for Papua New Guinea is not a stop watch that has a 5 year timeline, our progress will be achieved sensibly.

Tune in next week for Part 3 – Growing the Pacific Tiger. Sub national governments are where the bulk of where our resources are and it’s not god copper, or timber. But our people. They will drive the growth of our nation but the challenge is to make them participants of development and not spectators. That is a dream worth pursuing.

RUSHING DEVELOPMENT: PNG’S HUNGER FOR PROGRESS

(Below and the following blog posts are parts of a paper written by Sharp Talk creator Douveri Henao and was published in Sharp Talk (Facebook) in November 2013.

By Douveri Henao

Since gaining office in July 2012, Prime Minister Peter O’Neill has embarked on an ambitious campaign to propel Papua New Guinea from a “fence sitting” poverish developing country to a rising emerging pacific tiger. Having tremendous confidence in windfalls from natural resource receipts, he has spent and borrowed loans to fund 4 deficit budgets to develop mostly infrastructure projects, free education and sub national activities that are envisioned to be drivers of growth. If 2013 is any indication of the size of the budget, we may expect a total value of 50 billion kina budgets in the next 5 years. Like any leader, he is insistent that his people must benefit from the exploitation of the wealth in this country. Not surprisingly a flurry of economic policies on nationalism, protectionism, and capitalization of current and new State Owned Enterprises have taken the seemingly liberal landscape.

The success and justification of this “binge spree” hinges on 2 propositions. First, natural resource revenues will produce windfalls that will offset the large foreign borrowings. Second, major investments in infrastructure and social programmes will compliment and further enhance non mining sectors expected rebound.

The underlying message is that the binge spree approach, although as careful and sensible in its implementation, poses high risks. In this 4 Part Article, I intend to convey why this is the case and how a redirection is required for a balanced budget. Therefore the following themes in each of the parts intends to highlight these issues. Part 1 ‐ The Gamble; is the Gas our Ace Of Spades or the Joker. Part 2 ‐ Recalibration; a balanced budget needs to be the focus where development priorities are delivered in a realistic sequence. Part 3 ‐ Growing the Tiger; while investments in infrastructure are progressive, equal attention is required on improving business literacy skills as well as access to affordable capital to fully utilize the improved roads, ports, power and communication lines. Part 4 ‐ Which Pack: building trade and investment relations is critical and more than ever, PNG needs to choose who they should spend more time with.

PART 1 – THE GAMBLE

The Speakers Wing is situated on the opposite end of the national parliamentary chamber. Its cylindrical design is influenced by the Round Hut commonly found in the Highlands. There are 3 floors of meeting rooms, restaurant, entertainment areas and other amenities members of parliament use to consult their constituents.

The center piece is the Speakers Conference Room, appropriately located on the upper floor. Able to house 200 souls, its old woody internal décor resonates a Stately presence. However it’s the photographs of our colorful history that speaks to the visitor. A rare insight into the life of our forefathers, one cannot avoid not long ago majority of us lived in a vibrant Stone Age society and in a short space of time, transposed into the age of the internet. It is perhaps this reason; past and current Treasurers have used this grand venue to inform the people of Papua New Guinea its national budget and development aspirations.

Departing from the usual conservative fiscal architecture, Don Polye (Treasurer), Charles Abel (Planning Minister) and James Marape (Finance Minister) introduced last year a multiyear deficit budget cycle for the next 3 years. They have followed it up for 2014 in which revenue receipts are projected to increase significantly from gas receipts and rebounding in other comedies that would provide the basis of funding multibillion kina public investment projects. Mostly infrastructure. While at the same time apply prudential expenditure disciplines. Another unique feature is to shift money from Waigani to where the bulk of our people, rural communities.

Their passion and collegiality is admirable and indeed a testament of a collective vision. Does the strategy have merit or is it a gamble.

Ace of Spades Ain’t the Gas

It is a gamble because of the reliance of a strong revenue surge from LNG sales. Treasury estimates in the 2014 budget a whopping 354.8% increase (1.2 billion kina). This is highly ambitious when considering several factors. The Economist, a newspaper, observed that although there is significant demand of gas in the decades to come, a recent wave of technological improvements with relatively low operational and capital expenditure spending then LNG plants, will put pressure on a competitive price of PNG gas that may shave off Treasury’s bullish outlook.

With these issues in mind, the focus on future gas investments should look at unitizing assets rather than building new plants. The far North Queensland’s Gladstone dual LNG facilitates is a testament of wrongful investments where the operational expenditures are extremely high and therefore not yielding sizable returns. Therefore the negotiations of InterOil and Talisman to consider utilizing their gas fields to the PNG LNG facility is sensible.

Another cause of concern is the slowing down of emerging economies growth rates, where most of our gas will be sold, price readjustments similar to what has transpired in India may occur in PNG. Another important point to note is the developers intend to usemost of the proceedings to repay loans used to construct the project. Therefore, revenue collections may not be as anticipated and this has a knock on effect on the delivery of large public investment commitments as well as repaying loans on the borrowings to finance these commitments.

Having a conservative estimate on the gas receipts is critical. This in turn must trigger a reconsideration of phasing public investment projects for the coming years. A sensible option will be to balance immediate social and economic infrastructure investments that will yield growth and stability. Lumping the current front load of these projects is not financially sound.

Avoiding the Joker: Slack Public Service

What remains problematic is the capacity of the government to deliver the budget. Significant capacity deficiencies in both the revenue raising and expenditure spectrums have proven once again the major setback. National Economic Fiscal Commission, a government authority monitoring sub national government revenue inflows, indicated in its 2013 Budget report almost all provinces have not received all resources to effectively carryout their duties. Institute National Affairs, a PNG private think tank, remarked that only 50% of the national budget has been spent in October.

Marape is aware of these challenges and has cited that it is not money the issue but capacity. He issued strong warnings on “section 32 officers” to lift their game so as to ensure proper accounts are in place for disbursements. If not, monies will not be released. A welcoming warning for the public but also a demanding challenge for them. With limited human resources across the public sector, implementing the budget will still be a tremendous challenge in 2014.

While efforts are underway to have effective collection points in Internal Revenue Commission and

Customs as well as filling up the countryside with finance officers, more boots on the ground with technical knowledge is required.

Queen Of Hearts

Transforming poverish landscapes are always riddled with skepticism. One cannot dismiss however the opportunities the budget brings. With improved road networks, larger ports, efficient communications, reliable power generation and SME agricultural support provides our rural wantoks to source markets and have access to financial products to further grow their produce. With functional hospitals, resourced police constabulary, and free education, our mothers may survive child delivery, sisters walk in the streets and our children advance their knowledge.

The challenge for everyone is making Peter, Don, Charles and James dream our dream.

Next week I’ll discuss in Part 2 ‐ Recalibration. Maintaining the multiyear single line budget but should be balanced and not a deficit. Phase impact projects should be the focus.

GRASPING PNG’S STRATEGIC ENVIRONMENT

By Philemon Senginawa

Since the birth of diplomacy up to this modern day nation states have developed strategies to further their interests to accomplish their goals and fulfil the needs of their people. In the modern era, nation states have employed the art of political, economic, psychological and military force to afford the maximum support to adopt best policies to further their interest. Strategies are formulated in this manner to further the policies developed for the interest of States and its people.

Papua New Guinea is no exception if it needs to accomplish its interest in the greater global community by analysing its current strategic settings in order to formulate a best strategic policy to pursue its national interest. This is an analytical essay to study, identify and determine the relationship, the strengths and weakness of the Papua New Guinea’s strategic environment.

Papua New Guinea is located in a uniquely promising strategic location. It can be best described as where the Asia meets the Oceania. It is situated surrounded by the seas that connect the Asia region to the Pacific including Australia and New Zealand. It can be seen as both a land and maritime bridge between Asia and the Pacific. Commentators, academics and observers have acknowledged and appreciate the strategic location of PNG in linking the Asian region with Oceania and also a main player with cooperation among its smaller member states with its regional multilateral elements.

The PNG’s strategic environment encompasses the aspects of Foreign Policy and National Security Policy that is captured in the Foreign Policy White Paper of 1982 which is still being reviewed to construct a new one that best suits its modern strategic environment. PNG’s strategic environment encompasses the country’s external relations with its neighbours and active trading partners, its surrounding international environment, illegal transnational activities that has the potential to arouse regional conflicts that could act as threat to National Security and the internal political instabilities that have a great impact on the immediate strategic environment of the country and its future international standing in its regional and global community are some aspects of PNG’s current strategic environment. Considering the key features of PNG’s strategic environment one must take into account as well the maritime territoriality of PNG, PNG’s Geographical location, PNG’s domestic politics, PNG’s regional groupings and alignments, potential regional conflict hotspots and the Asia Pacific Region and the growing economies of the Association of South East Asian Nation (ASEAN) member states by acknowledging the regional multilateral elements that strengthens relations and foster mutual trade agreements.

What is “strategic environment”?

Before I continue let me explain what a “strategic environment” is. The Strategic Environment or Strategic Geography refers to challenges and opportunities that arise in our active participation both regionally and globally. It encompasses Defence, Economic and Political settings in a region that could elevate the status of PNG if the government has a good workable National Strategic Policy. The Strategic Environment include our extensive maritime setting, our National Intelligence assets, the large distance in policing our extensive EEZ and our air space and our Regional Cooperation within our regional blocks to further our National Interest. The Strategic Environment can be viewed as derived from a military concept but it also involves resources. Mainly natural resources and performance in the external environment such as regional politics, economic opportunities, regional tensions, flow of information and the security of the nation including the region as a whole.

PNG’s Strategic Environment.

To the north and west of Papua New Guinea lies the powerful markets of the Asia region with China, Japan and Korea and to the west are emerging economic powers of the South East Asia which includes Indonesia, Singapore, Malaysia and Philippines. The South East Asian community to the west is described as a shield in protecting the western approaches of Papua New Guinea from the effects of conflict in more distant parts of Asia.

The 1997 Asian financial meltdown has prompted the ASEAN member states to emphasise the need for greater economic interdependence over selfish independent economic policies. PNG has special observer status in every ASEAN meetings since its recognition in 1976 as special observer to ASEAN meetings which led to greater participation in trade and investments with ASEAN member states and also a signatory to the Treaty of Amity and Cooperation in 1989. This is another aspect that has shaped PNG’s current strategic environment.

Since the Asian economic crisis, the Association of South East Asian Nations (ASEAN) have recuperated to become a dominant economic power in the Asian region but the question still lies in the future stability of PNG’s closest Asian neighbour, Indonesia which is still struggling with its own internal conflict of West Papuan secession which can affect Papua New Guinea’s border security since it shares the biggest land border with Indonesia. Generally the thriving economies of ASEAN should provide Papua New Guinea with advantageous trade and investment opportunities as well as sourcing intellectual enrichment and new ideas, including in the military field. Other major economic powers in the region such as Japan China and Korea are showing interest in Papua New Guinea’s strategic location in order to access the Pacific region. The markets of these three mentioned Asian economic powers are also looking promising for Papua New Guinea to look northward to secure and further its national interest.

In bridging the Asia region to the Pacific, PNG is a major player in the Pacific region with smaller island states to its East. PNG’s population strength, total land area, the maritime territoriality has placed it in a Strategic location just close to the South East Asia Archipelago with a vast Exclusive Economic Zone (EEZ) meeting the Pacific ocean.

Australia to its south is Papua New Guinea’s closest and strongest ally in terms of economic, bilateral and defence ties. They both shared historical ties dating back to Second World War and share a very strong relationship in terms of trade and investment flows. Australia still remains as PNG’s closest and most important security partner. Australia and PNG may share similar strategic environment but different national interest. Strategic Studies specialist Robert Ayson has commented that Australia has realised that the Indian Ocean and the Pacific Ocean are emerging as a single strategic system that is straddle by the South East Asian Archipelago with its policies driven towards dominant Asian markets as western economies become weaker. (Ayson, 2012)

Papua New Guinea can draw similarities on the Australian strategic environment as Australia always has PNG in its sights when formulating Foreign and Security Policies. Australia has acknowledged that its interests are well served by PNG’s institutions such as PNGDF whose capabilities can contribute to both national development and external sovereignty tasks.

6 Key Features of PNG’s Strategic Environment.

Here are five key features about the strategic environment of PNG that should be taken into consideration when formulating a new Foreign Policy White Paper or PNG Defence Force White Paper.

1. PNG’s Geographical Location.

PNG’s favourable location can attract allies and friends from the Asia and Pacific region including Australia and New Zealand. Its strategic location geographically offers opportunities for PNG to benefit well in terms of bilateral and multilateral trade and investment flows and the free exchange of knowledge and ideas within this increasingly interconnected global community and with countries of mutual friendship.

2. Maritime Territoriality of PNG.

Many regional countries are asserting their maritime interests as a way of territorial advancement to push for greater recognition in global and regional settings. Commentators like Robert Ayson perceive that the current trend of Indo-Pacific moment is fuelled by the interdependence of South East Asian Nations with corresponding interests.

 

3. Regional Groupings and Institutions.

Supporting multilateral institutions to which PNG is a member of that includes ASEAN Regional Forum (ARF), APEC, and the South Pacific Forum. PNG is a significant player in the Melanesian Spearhead Group (MSG) that comprised a bloc of small Melanesian island states to the west of the Pacific region. Acknowledging regional and multilateral elements promotes interdependence and sharing of resource for mutual benefits of member states.

 

4. Regional conflicts and Instability.

The South Pacific Region especially Solomon Islands and parts of Indonesia with secessionist movements could be a threat to the tranquillity of harmonic economic progression of the region. The region is not immune over the longer term from a possibility of a break down in security and law and order, possibly involving the use or threatened use of force.

 

5. External and Geopolitics.

Focus towards the external and great powers of Asia should be partial, not complete, as the current situation with PNG’s biggest land border neighbour, Indonesia and its Secessionist movements could spill conflict into PNG if proper dialogue with two nations and the aggrieved secessionist party does eventuate well.

 

6. Domestic Politics.

This will remain the main driver of change and this is the factor that we have least control. Unstable internal politics limits economic growth and trade and investment flows between multilateral elements. Stability in internal politics attracts investor confidence and promotes national interest. This applies to the approaches that will be taken from regional powers like Indonesia, China, the US, India, Japan, Australia and New Zealand.

 

Conclusion.

 

Papua New Guinea enjoys a favourable geographical location and is situated as a bridge linking Asia region with the Pacific region. Its western part of the island straddles the South East Asians Archipelago while the eastern tip meets the Pacific Ocean. It is well placed to enjoy the benefits of location in terms of trade, investment flows and the free exchange of knowledge and ideas by actively participating and supporting regional institutions which PNG is a significant member.

 

The Key assumption as foundation of present calculations of regional stability relates to the future of a stable and cohesive Indonesia and the Papuan region. In the light recent developments this assumption is looking increasingly fragile with tensions looming in its Papuan provinces.

 

Active participation and acknowledgement of regional institutions will continue to play a useful stabilizing effect with its foreign policy based on selective engagement has been notable to its economic growth.

Battling Crime By Reducing Poverty

Daniel Mullul as posted by George Siki on the FB page

In 2000, we were introduced to a new scholarship system that threw away the higher institution scholarship Natschol. The system is called Tertiary Education Students Assistance Scheme or TESAS for short. Very little was known about the scheme, all we knew was it was adopted from developed countries. Was PNG a developed country then? No, and it is still developing. Yet parents of children in a developing country were expected to adopt into a scholarship system used in developed nations.

2003 saw our largest bank, Papua New Guinea Banking Corporation sold to the Bank of South Pacific. Apparently it was decided after advice from the Word Bank and IMF that government owned enterprises were a liability to the government and the sales of such assets would result in lowering the inflation rate. But here’s the bit no one took into consideration, would the occurrence of both events, together, create a volatile mixture that might spark an exponential rise in poverty and crime?

TESAS? Seems fair enough, students who work hard are rewarded with lower fees, students who do not work hard pay extra. But poverty is a trend that has to be broken by a generation. A father who works as a minimum wage earner needs to put his child through tertiary education in order to break the trend of poverty. And what if the child doesn't do well and falls into the second or third category? Well not a problem since we had our National Bank in place, which weren't so strict on its loan requirements to citizens.

Sale of PNGBC? Government makes a huge profit from the sales and with the competition from ANZ and Westpac, interest rates where sure to drop. Not so it seems, when the Bank is a commercial bank whose only agenda is profit loss margin. And the number one law in any financing institution is money security, only give to those you can recoup from. As soon as BSP realized that after the cooperate merger, it had taken all of PNGBC’s existing customers, which was more than any of the other banks. It shot its interest rates to the roof and tightened up on its lending requirements. And don’t forget that BSP is a business, business have a set of marketing plan which they stick by. BSP marketing strategy is simple, to retain the majority of the working population in PNG by being very friendly with the employer. An employer could simply walk into a BSP branch and open as many account as he wants without the need for any special requirements. By keeping the employer, you keep his banking business which includes salary accounts of his employees.

Now that TESAS has come into play, every January, almost every working parent in PNG run to the bank to get a school fee loan. All that is required from you is a salary account. The next 11 months of the year, you are left to repay your loan. Most people have financial burdens that arise within these 11 months, but since they already have existing school fee loans with banks, they run to smaller financing firms who are not so strict on lending requirements but charge an over the roof interest rate. Without realizing, people place themselves in a trend of debts, debt is a trend that you must break free of. Because of this it leaves very little room for savings and investments. Eventually it becomes a trend that happens every year.

Crime rate is directly proportional to a society’s debt. Placing a nation in debt, creates poverty, poverty and debt create crimes. We cannot combat crime through an increase in Police force, this solves nothing. We cannot combat crime by setting harsher laws on criminals. Our effectiveness on reducing crime rate, directly depend on the reducing its source. Fight crime from its source and not make the mistake of fighting its effect. It is a common failure of all human beings to address effects of a problem and not the problem itself.

How do we achieve this? For starters, The PNC led coalition has paved the way for us in lowering the people’s burden of school fee debts. But the first step was initiated by the Sir Michael Somare NA Coalition, the upgrade of the National Development Bank to Commercial Standards. This is essential! As mentioned, commercial banks are profit orientated and would readily prefer to provide financing to a firm that has been around for ages with proven track records rather than new businesses.

Reduction of crime means creation of jobs, creation of jobs means more employers. The current commercial banks in PNG are not so ready to support new businesses or small to medium scale enterprises (SMEs). The key to a developing nation’s growth does not lie in the mining industry or in how many overseas investors we can lure in. The key lies in SME’s. SME’s are a developing nation’s future. They bring in revenue which is kept in the country and create much needed employment opportunities for the people.

An unemployed panel beater with more than ten years’ experience and does seasonal jobs to earn a living has the potential to start his own workshop without relying on employment opportunities with larger firms such as Boroko and Ela Motors. At present, there are so many around, you don’t have to go far to find a machinist, panel beater, mechanic or carpenter. But they cannot enter into the formal professional markets because most of them will never qualify for a commercial loan with any commercial banks. Empowering this people with the means to own their own workshops will create competition for the larger workshops creating a drastic reduction in prices.

To sum everything, it is in my opinion that selling of government own enterprises to increase our kina up by a point by drawing foreign investment is a mere temporary solution that looks good only on paper but creates social decay and disorder. The real solution to combating crime rates and poverty can only come about through the development of local businesses, SMEs, the reintroduction of the trade pasin scheme, education and specialize training. But that is just my opinion and I welcome feedback and views from everyone to enhance this idea.

PNG CULTURAL DYNAMICS, LEADERSHIP AND CORRUPTION

PNG SYMPOSIUM 2013 -ADRI GEELONG, VIC, AUSTRALIA
KEYNOTE SPEECH BY SAM KOIM, 4TH APRIL 2013

"PNG CULTURAL DYNAMICS, LEADERSHIP AND CORRUPTION"

It would be remiss of me to proceed on this stage without acknowledging and thanking Professor Louis de Koker for introducing me, and Dr Jonathan Ritchie and the organisers of this symposium for extending this opportunity to me to speak to you today. Thank you! 

Introduction

When I travel to places like Australia and see the infrastructure, I wonder whether our PNG leaders, particularly politicians and top bureaucrats see what I see. When I watch Australian television programs and see people criticising the Australian government for trivial discomforts of life such as loud noise in a neighbourhood and note that their complaints are attended to, my heart bleeds for our people who cry out for far more pressing things: life-saving needs such as medical treatment yet their cries fall on deaf ears.

Our population just reached 7 million with an average annual growth rate of 2.8% . That is not much compared to the ever-increasing development budgets passed each year. We are a very rich country, yet, ironically, we are the largest recipient of Australia’s foreign aid. When will we stop relying on aid and stand on our own two feet? 

We have the money to build the best schools and hospitals in the world yet the very ones who have the power to effect such a goal (our politicians) prefer to access readymade services in places like Australia or Singapore. 

And it is disheartening for PNGeans to make a comparison with the tiny island nation of Singapore that was also colonised by British/West like us, that lacks territory and natural resources but is one of the fastest growing economies in the world. They got independence only 12 years ahead of PNG. After 37 years of independence, resource-rich PNG politicians go to Singapore hospitals as their preferred centre for medical treatment. 

And what of our leaders' integrity? Where's the comparison?

When I read about the former Japanese Prime Minister, Yukio Hatoyama who was in power for just eight months before resigning because he could not fulfil his campaign promise to move a US marine base off the southern island of Okinawa, I think of the many empty promises and lip service of our politicians who cling to power as if it's their birth right. When David Campbell, the Transportation Minister for New South Wales resigned after being caught by Channel 7 news cameras exiting a gay sex club, I compare this to the defence of “private life” our leaders put up when moral corruption becomes an issue and I despair of their failure to take responsibility for their actions. 

In PNG, serving the people is no sacrifice. Many of our politicians enter public office with less but leave with more. 

We are a rich country, yet the living standard of the majority of our people is abysmal. Our social indicators are amongst the worse in the word. I used to blame this on lack of finance and an unskilled workforce – and while this may have had a measure of truth in the past, it no longer holds true – now we have them. 

The Christianity that we adopted calls for our compassion but that does not seem to resonate in the decisions of our leaders who are constantly self-seeking, while paying lip service to the tenets of Christianity.

What has actually gone wrong? Where is the missing link?

The reasons are varied and I would like to share my observations as we discover the challenges and possibilities of leadership in Papua New Guinea.

Today, I would like to take you on a journey of rediscovery and redefinition, where we will revisit the influences that affected our existence and emergence as a democratic nation. 

System of Governance

Traditionally, our people are known for our communal existence, ruled by chiefs and leaders.PNG is a nation comprising of many ethnic nations predating the parliamentary system of governance adopted at independence.

We adopted the Westminster system of Parliamentary Democratic Government with the Constitution as the foundation under the assumption that cultural and societal preconditions were conducive to its adoption. But were they? 

Firstly the constitution: It is known as an autochthonous (home-grown) Constitution. Embedded at the preamble, are National Goals and Directive Principles that would guide us through, including the consolidation of our democracy. If all governmental decisions, be it legislative, executive or judicial, were made to give effect to the National Goals and Directive Principles, I do not think we would have gone wrong. 

For our discussions, I make particular emphasis on Goal 5 of the National Goals and Directive Principles, which calls for the use of our Papua New Guinean Ways to achieve development. How many of those worthy PNGean ways have been subsumed beneath western cultural norms, what challenges still remain and why the steps we have taken are relatively insignificant. 

Today, I want to explore the cultural dynamics that produces bad leadership and breeds corruption in contemporary PNG. 

Pre-existing Cultural strands 

Whilst there are institutional and legislative explanations to some of the causes of corruption and bad leadership, cultural dynamics and roots have a considerable influence. Understanding cultural dimensions and dynamics that influence corruption and leadership in the country is critical to raising the next crop of good leaders in PNG. 

The very fabric of the PNG society is woven and coloured with cultural diversity. We have a fragmented social structure with many different yet strong ethnic groupings. As such, it is difficult to identify common cultural strands and norms. Nevertheless, almost all ethnic groupings have some form of leadership, in most he is known as the 'Big Man'.

Westernisation and Cultural crisis

Together with the Westminster Democratic system of governance, we have embarked on a process of westernisation that helped to develop our country. The point of disconnection is that our people have not been fully acculturated to the Western values nor have they clung onto some of the more worthy customary values. The interface between the Western and Melanesian cultures has produced a new trend of behaviour that breeds bad leadership, poor governance and promotes corruption in PNG. 

Contemporary Melanesian 'Big Man' leaders are the politicians, businessmen and educated elite. The features of our traditional Big Man and contemporary Big Man with new cultural strands as a result of the fusion of traditional values and westernisation are discussed below: 

Appointment and removal of a Big Man leader

Traditionally, the Big Man is neither appointed nor removed from office. Traditionally, he would not be expected to come to office and work. A traditional Big Man naturally emerges as a leader as a result of his deeds in the community/group over a period of time and is expected to be a leader until he dies, no matter what he does wrong.

When a modern-day Big Man is appointed or elected to public office, he is often under a delusion that there will not be any expectation of him vacating that office, even if he does something wrong.
In the Western culture, when public office holders’ deeds bring disrepute to the office they occupy, they quickly resign to allow due process of law to take its course, so as to honour and uphold the integrity of the office they occupy. 
In our country, while scandal after scandal has been unearthed, there is an ingrained, almost endemic resistance to owning up. In these circumstances, the Big Men public office holders galvanize all the energies and means they can muster and ferociously defend themselves. They do this by numerous means, including applying for stay orders in Court which somehow the Courts readily grant, forestalling due process and frustrating good administration. Such actions have a corrosive effect on the integrity of the institutions of government.

Expectations on a Big Man leader

A traditional leader is expected to contribute money towards traditional ceremonies and obligations. Although there is a powerful expectation on the modern Big Man to contribute generously towards customary and extended family obligations, these responsibilities cannot be sustained by the meagre salary of PNG politicians and public servants. Hence they are tempted to break rules and legal procedures to meet those expectations and often yield to it. Sometimes to ask favours from a ‘wantok ' is not seen as unethical. Politicians look after their electors, by giving them money and attending to their tribal needs, so as to secure their continued support. Often this comes at the expense of legitimate service delivery 

Respect and Loyalty of the Tribe/Group

Traditionally, the members of the tribe/group are expected to pay allegiance to their Big Man leader. People vote according to their tribal and kinship lines, not necessarily an exercise of a free choice. 

People are not allowed to criticize their Big Men in public regardless of their performance. It is one of the reasons why you do not hear a public outcry when our leaders do something wrong. Our people are culturally programmed to accept their wrong doings with good grace and forgiveness and our leaders continue prey on the gullible public. 

Protecting the Big Man 

When a Big Man in a traditional group/tribe setting commits a wrong, he retires to the safety of his tribal or ethnic cocoon. This can create an impression, albeit erroneous, that the whole community is being attacked and should defend. So while every member of the group is expected to forgive and venerate him regardless, those obligations clash with the demands of individualist oriented western laws that require individual criminal responsibility. In PNG, if you try to hold one person responsible for his/her own wrongdoings, you may find yourself dragging the whole tribe/group out. 

Our society is conditioned to protect even the worst criminal. In Western cultures, when someone commits a crime, everybody, (sometimes even their immediate family), treat that person as undesirable and readily hand him/her over to be dealt with according to law. In our culture, we are prepared to protect the perpetrators, even to the extent of putting up a fight. In a case of a rape, we prefer paying compensation to the victim than handing over the perpetrator to the police. If the victim’s people insist on taking revenge, as his wantok's we are prepared to fight for him. In so doing, we pervert the course of justice.

Stealing from what you already own

Traditionally, you cannot steal what is already yours or belong to the group that you belong. The absence of nationalistic feeling results in individuals seizing opportunities to steal from the State, as they regard the State as a huge entity that does not care about them hence they should not care for it. 

Opportunistic cultural strand

The exposure to modernity has also reached a certain cultural level, where we are conditioned to proceed with the assumption that whatever is not fully protected is there for taking: where weaknesses are exploited for private gain. In this particular mindset, people want to do the right thing, not because it is right, but because the wrong things are fully protected.

Appreciation and Reciprocity

Reciprocity and appreciation, caring and sharing, has always been part of our culture. Today, when you are receiving something from a government official, be it a cheque, sealing of documents, or any other routine services, there is an expectation of a token of appreciation, notwithstanding that he is paid by the Government for services rendered. 

The Ombudsman Commission and the Public Service General Orders require public officials to declare the receipt of certain gifts in connection with their official duties. I suspect this is only honoured in the breach.

The line between Melanesian appreciation and bribery is blurry and where occasional gestures of appreciation were once the norm, now, nothing gets done until some so-called “lunch money” is paid. Lunch money is paid for favourable considerations, often to expedite government processes. Such corrupt behaviour has, overtime, weakened the effectiveness and efficiency of our public service to such an extent that the wheels of the public service machinery do not turn until you grease them sufficiently with these bribes known as lunch money.

A relentless pursuit of wealth has substituted and thrived at the expense of traditional and moral values. Now, in PNG, many public officials use their positions to conspire and cut deals in Government contracts that will directly benefit them at the expense of good governance. 

Corruption of traditional practises

In some parts of PNG, polygamous relationships such as marrying more than one wife by the traditional Big Men was a sign of wealth and status in the society. In today’s world, the paradigms have shifted and the imperative for polygamy is no longer valid. Yet the modern Big Men justify this practise by invoking 'culture' when, in reality they engage in extra marital affairs, even secretive promiscuous affairs merely for pleasure. I view it as moral corruption. 

Moral and Ethical Leadership

Once a person is devoid of his moral values, he will be prone to indulge in any corrupt activity. It is my belief that moral corruption is the cornerstone to all other forms of corruption. 

While the law should remain the minimum standard of human conduct, above that is morality. When malodorous incidents of corruption, venality, lack of moral judgement and discipline are unearthed, true leaders with integrity do not run for cover behind the shield of procedural laws and perceived rights. They own up. 

Our founding fathers intended that our Leadership Code would be morally binding. The Constitutional Planning Committee Report Chapter 3, states "We intend the Leadership Code to be more than mere directives. It should be morally and legally binding on "leaders" and firmly enforced".

Morality is a social lubricant. A lubricant, separates moving parts of a machine, reduces friction and making the system work efficiently and effectively. If the government is going to function like a well-oiled machine devoid of friction, it will constantly need to employ people of high moral principles and professional standards. A salient example of such a friction is our recent political impasse where members of the Legislature, Executive and Judiciary flexed their muscles using their institutional powers to wage war against each other. In so doing, they eroded the constitutional line that governed the separation of their powers. Thus the actions of individuals have a corrosive effect on the integrity of the institutions of government. When our people withdraw their respect for individuals, the credibility of the institutions they head diminishes, and ultimately the institutions loose the legitimacy they derive from the people.

Redefining our Development Path

Our system of Governance cannot be a carbon copy of Western governments – the underlining inherited cultural paradigms won't allow it. PNG has been struggling with the harsh reality of our propulsion into nationhood by those who lacked the ingenuity to foresee the pitfalls of trying to fit a round peg into a square hole. But with the aid of some of the ingenuity that was initially lacking, I believe there is a way forward to enhance social and economic development. 

If the primacy of the community, dynamism of custom, and significance of collective social action remains defining features of the contemporary Melanesian social order, all we need is to use them in new ways to achieve order in the society . Law and order can be better achieved if we redefine our laws to be compatible in a communal setting, by making use of the existing societal structures such as groupings. 

A noticeable example is the Inter-group Fighting Act 1977 which is one of the least enforced penal laws in the country, yet inter-group fighting is a common occurrence in many parts of the country. The Criminal Code Act 1974 was adopted from Queensland, which demands individual criminal responsibility – making it largely redundant in the tribal (hence PNG) context. 

Why can't the strong sense of group loyalty that our society had fostered over the ages can be transformed and transferred into loyalty to the institutions of government? 

We cherish some of our worthy customs and traditions but also consider modernization as an economic and political necessity. Skilful political management is needed to defuse the potential conflicts so as to ensure they complement national development . 

Define Ethical Values

There is a need to define the ethical and moral values for all leaders, as uncertainty is a cause of corruption and abuse. 

Education and Awareness

Moral education of our citizenry is very important as it will trigger resistance to corruption from within one’s own conscience. 

One of the prerequisites for further development is to train, not only skilled, but a relatively disciplined labour force for the country. 

Our leaders need to be taught traits of exemplary leadership by other countries so as to be knowledgeable individuals of substance and worth who can stand shoulder to shoulder with their counterparts in the world in terms of intelligence, wit and wisdom. 

The laws and systems are as good as the people. Having a water-tight system with wrong people will result in these people devising wear and tear mechanisms to avoid accountability and eventually weaken the system. We have to depart from cyclical rotation of bad apples (people) from department to department and start building the next generation of leaders who will cause change in the country. 

Integration

Besides, the history, geography and system of Government we share, we must endeavour to establish a true friendship and kinship between the people of our countries; a bond that is strong based on our shared values and principles. I would like to see us forge an unbreakable bond that will underpin our bilateral relationships. Trust, sincerity, and respect for each other are the essential ingredients that can help build this relationship. I would hope that such a relationship will naturally eliminate all forms of superior-inferior undertones for as nationalistic feeling grows within PNG, an imbalanced, impersonal relationship can stir resentment and eventually affect long term relationships between our countries. Let us stand shoulder to shoulder beside each other as true equals – interdependent but independent. If we give a human spirit to the mutual agreements and bilateral relationships that we already have, this will happen. 

I thank Australia for taking the lead in helping our nation to develop through programs such as this, as well as the annual scholarships and exchange programs that are offered for our people to not only take up academic studies but also to be exposed to Australian culture and its values. 

The Missing Link

In weaving the above line of discussions together, I believe that the focal link that has been missing is leadership – on which everything rises and falls. I have seen the rise and fall of many politicians, but I am yet to see a true national leader. 

O arise, all you sons of this land. Let us revisit the pillars of our existence and redefine our path to development. 

Our tour ends at this point.

God bless you all.

How should Christians Respond to Homosexuals and Homosexuality?

Nathan Ponjel

By Nathan Ponjel

In light of all the uproar over the Defence of Marriage Act (DOMA) and the US Supreme Court, it disturbs me to see the hatred exhibited by professed Christians towards homosexuals. To preface, I believe that homosexuality is absolutely, unquestionably wrong; however, that does not condone any sin on our part towards people who participate in such sin.

What does the Bible say about homosexuality? Romans 1:18-23 tells us that God's wrath against ungodliness is revealed from heaven against men and that they have rejected God and changed His glory into an image like to man and beasts.

Romans 1:24-32 then says, "Wherefore God also gave them up to uncleanness through the lusts of their own hearts, to dishonour their own bodies between themselves: Who changed the truth of God into a lie, and worshiped and served the creature more than the Creator, who is blessed for ever. Amen. For this cause God gave them up unto vile affections: for even their women did changed the natural use into that which is against nature: and likewise also the men, leaving the natural use of the woman, burned in lust one toward another; men with men working that which is unseemly, and receiving in themselves that recompense of their error which was meet. And even as they did not like to retain God in their knowledge, God gave them over to a reprobate mind, to do those things which are not convenient; being filled with all unrighteousness, fornication, wickedness, covetousness, maliciousness; full of envy, murder, debate, deceit, malignity; whisperers, backbiters, haters of God, despiteful, proud, boaster, inventors of evil things, disobedient to parents, without understanding, covenant-breakers, without natural affection, implacable, unmerciful: who knowing the judgment of God, that they which commit such things are worth of death, not only do the same, but have pleasure in them that do them." (And here I would like to clarify that we are not called to put them to death. See Matthew 18:23-35 and Romans 3:23, 5:8-10, 6:23.)

From Genesis 18 and 19, we know that Sodom and Gomorrah were filled with men who committed homosexuality (hence the term sodomy); though it is important to note that they were guilty of other sins as well. Leviticus 18:22 says, "Thou shalt not lie with mankind, as with womankind: it is abomination." (Again, look at the context, this also would be a rebuttal to those who are okay with heterosexual fornication, as God forbids that as well.)

So we know that the Bible is clear that homosexuality is wrong. But it isn’t simply a book that prescribes a way of not living, but a way of life, The Way of Life. Romans is clear that we are all sinners, fallen short of God's grace. (3:23, 5:8-10, 6:23 especially) This does not merely apply to gay people, but to all of us. The rebellious are going to the lake of fire without Jesus just as much as gay people. According to Matthew 7:13-23, many who profess to know Christ will not really be saved, they are merely pretenders. We all owe a debt we cannot pay, but those who believed on the Lord Jesus Christ are free of that debt. It is forgiven, paid in full. (John 3, Ephesians 2:8-10, Romans 6:23) What right, what pride, what arrogance, what hatred, then drives us to beat the servant that "owes" us a hundred pence (Matthew 18:23-35)? We owed God, and He forgave us. Why do we hate those who we feel owe us by reason of them dishonouring their bodies?

Luke 10:10-16 tells us that it will be more tolerable for Sodom in the day of judgment, than for the cities that rejected the 70 that Jesus sent to preach the gospel. It tells us the cities that rejected Jesus when He came to them will be worse off than the cities that existed in the darkness of wickedness and sin. Rejection of Christ is the worst thing that men can do. Matthew 28:18-20 gives us Jesus' command to take the Gospel to the whole world. Ezekiel 3:15-21 warns us that not warning the wicked and the righteous of their sin leaves the guilt on us as well as them when they fall.

So how is it any better for Christians to not take the Gospel to all nations, both others and their own? If we do not obey the Great Commission, if we bear no fruit, are we any better? Nay, but by the grace of God, we would suffer the same fate as those that so many seem to hate. Even if we count gay people as our enemies, the Bible says to "Love your enemies, bless them that curse you, do good to them that hate you, and pray for them which despitefully use you, and persecute you." Last I checked, bad-talking people was not very kind or good, and it makes it onto the list of wickedness in Romans 1.

Of course gay people will not listen to the Gospel if those who profess to believe it are so hateful and unkind. Of course President Obama will not like Christians if they spend so much time talking about how evil and terrible he is. "Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honor to whom honor. Owe no man anything, but to love one another: for he that loveth another hath fulfilled the law" Romans 13:7-8). How much more powerful would our lives be if we practiced this in our lives?

Thus I leave with but two things to consider, one political, and one practical.

1: DOMA is a federal regulation, making a law about something that nowhere in the Constitution of the United States of America is the federal government given authority. Thus, legally, it should not stand, regardless of its morality. Thus, if you are a believer in States rights, and especially if you believe that the South should have won the Civil War, since that's a big deal down here, you should be in favour of the Supreme Court striking down DOMA on that count. "For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places." Ephesians 6:12. Our warfare is not against kings and presidents and congressmen and courts, but it is a spiritual battle. No law or regulation will win a battle, no violence will save men's souls. The blood has been shed, Christ died, He is risen. It is finished. We must shod our feet "with the preparation of the gospel of peace." We must put on the whole armour of God. The law may in all justice be struck down. It does not affect our responsibility. Thus this leads to the second point.

2: If you are so willing to protest homosexuality and its impact on our culture, what then keeps you from doing the work of the Lord? Why do so few participate in spiritual things as compared to those who are involved in the political realm? If homosexuality bothers you, spend time in prayer, both alone and in prayer group, praying for the salvation of gay people. Speaking especially to PCC students and faculty and staff, if you don't give yourself over to ministry and prayer and Bible study, you are wasting a great opportunity (the same applies for anyone in a school that leaves so much open for witnessing and missions). Go to Mission Prayer Band, allow yourself to hear the Word of God preached one more time in your week. Go the rescue mission, witness to the men there. Go to Seville square, go to Bible clubs. Have prayer groups on Wednesdays, and Saturdays, and Sundays. Spend your morning in God's Word and in prayer. Go to Mission Prayer Time. Pray for God to send workers into His harvest.

Most importantly, make missions and "full-time" ministry your default, as Missionary Bush said last week in MPB. Why do we seek a career and only serve God as a side-option, if we are "called" to service? Why should we not seek to take the Gospel to the world, and only settle for a career if God closes all other doors to service? Yes, we need people to support missionaries and pastor, but there would be money in abundance if we but gave 10%. So many more could go, if only they were willing. This is the answer to homosexuality and all other dangers that face America and any other nation. Gay people are slaves to their sin. They need freedom from their sin as much as we need freedom from any other sin.

May we be able to say in all sincerity (for last is true, whether or not I or any other is ashamed), "For I am not ashamed of the gospel of Christ: for it is the power of God unto salvation to everyone that believeth; to the Jew first, and also to the Greek. For therein is the righteousness of God revealed from faith to faith: as it is written, the just shall live by faith." (Romans 1:16-17)

Addressing Ethnic Violence in PNG’s Urban areas

By Karabuspalau Kaiku in Sharp Talk (Files)

Within the months of October and November 2011, certain communities in Lae city witnessed spontaneous ethnic clashes. At one time, the same ethnic groups were involved in several fights with other groups.  Confrontations were triggered off by a range of lawless behaviour. For example, one of the clashes in Lae initially started when a group of drunkard people stabbed two youth in an apparent unprovoked attack. This incident quickly developed into an all-out ethnic fight as members of the two youth sought vengeance for the death of their wantok. The tribal and ethnic dimension of such violence presents a serious challenge.  Law-abiding citizens who wish to live productive lives are unnecessarily inconvenienced when the outbreak of violence happens. Wholesome development will not flourish in a lawless society.

When ethnic clashes happen, it is usually the weak and young who bear the brunt of these wanton acts of destruction. Ethnic violence is also unproductive in our efforts in nation-building. In most instances in PNG, urban settlements are seen as the breeding grounds for ethnic violence, raising even more questions about the role of urban settlements in urbanization processes. In certain cases ethnic groups in these urban settlements are singled-out as inherently troublesome.  When sections of our community are treated as trouble-makers, the only outcome is further marginalization and institutionalized disempowerment.

From all indications, ethnic violence, particularly in urban areas of Papua New Guinea will not be eradicated soon.  The absence of long-term urban planning in this country and the ineffective management of the growth of urban areas will continue to see ethnic violence happen. There has never been any sustained effort to address ethnic violence as a developmental issue. This is the most serious omission in urban planning and policy-making exercises to date.

From all the previous cases with ethnic confrontations in PNG, law enforcers and policy-makers have failed to use past experiences as the basis to develop measures towards preventing repetitions of ethnic violence.  Peoples in authority only react to situations. And usually, ad-hoc measures are used. The norm as always is to use strong-armed tactics and massive firepower when troubles happen. These measures have a tendency to exacerbate existing tensions in the communities.

A case in point was in the aftermath of the 2011 “Lae riots”. The increased levels of lawlessness and destruction in Lae saw a division of the Royal PNG Constabulary called in to restore order. Some of members of the police were reported to have taken sides with the different groups in the Lae crisis, raising suspicions of partiality by members of the disciplinary forces. While the police’s presence was able to restore short-term normalcy, it did not bring an end to underlying concerns of basic public safety in Lae after the departure of the mobile force.

In the absence of any concerted effort to deal with ethnic conflicts, people are even calling for the reintroduction of the Vagrancy Act to rid urban settlements. Some have even suggested the idea of declaring state of emergency in troubled areas or even having the PNG Defense Force in policing exercises in the main urban centers.  In the next section I look specifically at two preventative approaches in dealing with ethnic violence. Firstly, the strengthening and integration of community leadership into the formal governance structure of urban areas and secondly, integrating cultural literacy in community policing initiatives.

Policy considerations

Community governance in urban areas – When I read about the outbreak of ethnic fights in urban areas, I ask myself this question: “where are the so-called leaders of the ethnic groups involved in the conflict?” Invariably, one of the common features of communities involved in ethnic violence is the absence of any semblance of community governance and leadership structure in the communities concerned. Commenting on the recent outbreak of violence in the settlement areas of Lae, one commentator noted “that part of the problems is that there is no real leadership in the settlements like in the villages which are still reasonably structured, with their own leadership system”.

This is the sad reality of communities, especially in the peripheries of urban areas. The absence of any coherent structure of organizing the community and imposing order will allow for certain individuals to exploit this vacuum in authority. Groups or individuals are accountable to no one in a leaderless community. Individuals have no obligation to conform to authority.

There are practical benefits of instituting governance structures in specific community jurisdictions. The physical presence of leadership in specific jurisdictions allows for members of the different ethnic groups and their representatives to be accountable and answerable for their individual or group conduct as they interact with others.

Community governance also provides an avenue for networking with the police and urban authorities in the prevention of conflict.  Leaders of communities are the first point of contact when crisis situations happen. In a community where visible governance structures are in place, it places certain responsibilities on leaders to know what is happening within their communities. Where possible crisis situations arise, intervention by leaders prevents further escalation of troubles.

Leaders in settlement communities or areas with distinctively high levels of cultural complexities need to be empowered and integrated into the formal structures of the legal structures governing the administration of urban areas. A workable strategy can include the establishment of tribal councils or a representative body, made up of representatives of ethnic groups within specific jurisdictions.  For example, based on the ethnic composition of the various ethnic groups in the 9 Mile suburb in Port Moresby, a representative from the Finschafen or Morobe province will be nominated (on a rotational basis) from amongst his ethnic group to represent his ethnic group in the community tribal council. These community leaders should have legitimacy in their communities, be able to convene periodically to exchange information and ultimately be answerable to urban authorities. Their powers should also be clearly articulated.  Examples of such community governance arrangements have been successful in places such as Vanuatu where chiefs in urban settlements even exercise powers to banish trouble-makers from the settlements. Certain lessons can be learnt in community governance experience in other parts of Melanesia.

Understandably, some will argue that such strategies promote regionalism or tribalism. However, one will note that the integration of community leadership into the formal governance structures of urban settings helps enhance cooperation amongst the different ethnic groups in a given community. For all its complexities, the present legislations such as the Organic Law on Provincial Governments and Local-level Government 1997 are not integrative of marginal areas such as urban settlements. There is an assumption in the present OLPG&LLG that all urban areas are one big homogenous community. Presently, marginalized communities are disempowered and will not part of the solutions in addressing the problems of ethnic violence in urban areas.  

Outreach activities of the police – The police and other law-enforcing agencies presently treat the phenomenon of ethnic conflicts as a law and order issue. The problem with ethnic conflict is that it is a communal activity. Groups are involved and usually the initial perpetrators of such acts hide behind the corporate veil of their tribe or regional groups. Law enforcers in most cases find it hard to bring anyone to account for mass destruction, loss of life and injuries sustained in conflicts. From a law enforcement perspective, the problem of ethnic violence must also be considered a “cultural issue”. The identity and allegiance of members of the groups involved in the conflict is to their ethnic or tribal origins.

A possible area for consideration is the establishment of a specific unit in the police specifically dealing with ethnic violence. Such a division should be a forum for community leaders and members of the communities to use as a neutral avenue for mediation purposes. This unit of the police force can also be used for collecting intelligence on happenings in the communities. Law enforcement personnel assigned to such units should be trained on the various conflict resolution and prevention methods in PNG. In fact, cultural literacy and the art of community networking are skills the entire police force of this country seriously needs to acquire.

Conclusion

Ethnic conflict is a serious threat to national security and development. While blame is attributed to urbanization and other social ills, policy planners, urban authorities and law enforcers must bear the responsibility for the lack of foresight. Over the years, the marginalization of certain sections of our urban communities has resulted in a chaotic and ungovernable scenario we are presently confronted with. The challenge is to create sustainable and workable measures to address ethnic violence in our increasingly urbanized communities.

November 24, 2012

Bottom of Form