The Wire

Papua New Guinea risks becoming a third world country, with similar levels of corruption and exploitation as Nigeria or Sudan if massive economic reform is not enacted. That’s the conclusion of a new report by Helen Hughes, economics professor with the Centre of Independent Studies, entitled “Can Papua New Guines come back from the brink?”. She cites Botswana as a more palatable model for Papua New Guinea, with a solid economic growth rate mirroring a strict adherence to economic reform in the last 30 years. Hughes argues that the standard of living has stagnated for 25 years in Papua New Guinea, with no improvement in health and education services because of a corrupt bureacracy. The PNG government has called her report “alarmist”, and stated their economic growth cannot be practically speeded up. But Helen believes the economy can be invigorated from the village level. She believes each villager should learn to become their own entrepreneur, and she thinks privitasation of village-owned land, and a reduction of tariffs will encourage villagers to earn more money, and start actively particpating in the economy. Taya Fabijanic spoke to Helen Hughes, economics professor with the Centre of Independent Studies about her report, and she also spoke to Professor Peter King, with the school of Asian Studies at the University of Sydney, who disagrees with much of the report.