A future development option: AusTRADE partnership with Papua New Guinea

By REGINALD RENAGI

 

In his usual combatitive rapid-response style of firing from the hips to a recent Admiral's commentary, our intrepid Moses does not quiet answer his own question, the title of his article: How will Julia Gillard help Papua New Guinea become independent and fight corruption through good governance? There are many answers to this question.

 John Fowke either avoids answering the big issue questions stimulated by the article: "What should Australia do about PNG", or denies that AusAid is an ongoing problem. He does not quiet say What Australia should do about PNG, but right away gets stuck into so-called PNG's middle-class, as if such a class system exists at all. Not now, but maybe in the future.

 The response would have been helpful if it touched upon certain key areas requiring some change in future.  So do we still keep AusAid considering its ineffectiveness to date ('boomerang aid'), or do we try to make it better, hoping it brings good results in future.

 Some previous attempts in recent times resulted in unsatisfactory outcomes. So do we scrap AusAid by substituting it with Trade (AusTrade) in a partnership arrangement between the two countries in future?  I think so too.

 What Australia should do about PNG makes the suggestion for new PM Julia Gillard to rethink Australia's current aid arrangements with PNG and it is time to make a major paradigm shift in its policy towards PNG (and smaller Pacific Island Countries or PIC).
In future, Australia would better serve PNG by implementing a new strategy of doing more bilateral trade relations with PNG.  Ms Gillard must now consider increased trade relations with PNG than just the gesture of giving aid away to PNG.

 Presently, AusAid has come under much criticism that much of it boomerangs back to the donor country with recipients not having much to show for it over time.  In reality, many PNGeans see AusAid more of a one-way handout approach and is at best materialistic. More over, AusAid must not be seen as the only way Australia can help PNG by delivering AusAid materially, with advice and instruction. 

 I agree with Moses for the educated middle-class working together to turn the country around is agreed with, but this is every citizen's job from PM Somare to the villager in rural PNG. This collective nationwide strategy of getting everyone working together and not just the middle-class doing an honest day's work will take a long time, but change; no matter how hard and long will eventually come to PNG.

 But it is only one approach. To improve good governance, PNG's national workforce must work in synergy.  This will be a long-term strategy and must be consolidated over time from a domestic resource-base than externally from Australia though its aid program.

 On the other hand, the solutions to political corruption are many. What PNG needs today and in future is a more multi- strategy approach.  Unlike AusAid, a new policy strategy must be designed by both PNG and Australia's input for mutual benefits. 

 While AusAid has worked to an extent for many years, its long-term effectiveness is being questioned more and more in recent years following complaints by recipients in the Pacific.   For years PNG raised many concerns to the Australian government about AusAid's shortcomings ('boomerang aid'), and how it can be improved in future. 

 Despite DFAT's best efforts over the years to improve AusAid's inherent deficiencies, recipients like PNG are still complaining that AusAid effectiveness needs to be improved with locally targeted projects planning being directly factored into the government's own development plans, so it can be better managed and progress monitored and tracked along pre-determined milestones.

 However, there is a much bigger problem with AusAid for a long time so what are needed are helpful insights and suggestions.

   hope DFAT planners reads this for Foreign Minister Stephen Smith to some good policy advice to Julia Gillard on alternative ways to help PNG more than her predecessors by making a major policy shift from 'Aid to Trade'.

 Today, AusAid is seen more a one-sided policy that could be contributing one way or another to political corruption in PNG.  Getting AusAid right has proven somewhat elusive for many years despite several AusAid reviews with proposed solutions, with a view to getting some good results.

 A new trade policy between PNG and Australia under a partnership framework is very much needed, because it will have more added benefits than the current aid arrangements.  I have confident Julia Gillard will go one up from where both John Howard and Kevin Rudd left off.