Some short terms trends……..

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THE GOVERNEMENT CASH COW

The Papua New Guinea government is viewed as a cash cow for ambitious and corrupt groups of individuals both within and outside of the government bodies.

Due to the lack of controls and punishments for corruption, this siphoning of public monies is more pervasive and will continue on for some time.

Parliament cannot mange this because the key players are complicit in the rorts.

Implication

Most of the development funds etc will not get to the projects for which they are intended for. The national development indicators will not increase. If this continues for 10-20 years, there will be a strong resentment towards the government felt by the rural people. It is possible that their may be revolts and calls for autonomy.


CLOSE TIES BETWEEN BUSINESS & POLITICS.
The close ties between business and the kickbacks to politics will affect the free market performance and PNG will loose out on the efficiencies that come from a robust free market – where there is an even playing field.

Implication
Skilled workers will go overseas because there will not be adequate oportunites for them to perform to their best because of the uneven advantage to those businesses who have government support.

Short term business mentality which means there will a lot of one generation business who will flourish and then die off once the owner is prosecuted by new people in government or if the owner dies. With no long term business plans, the businesses will fold.


YOUNG AMBITIOUS WEALTH
There are now many clever young Papua New Guineans in their mid 30’s who are millionaires or on their way to being so, by cleverly manipulating the government systems to generate their wealth.

They have seen the cash cow and they want more. The main way to gain that power and access the one is by becoming a member of parliament. Therefore, politics will now be driven by individuals with short term materialistic thinking rather than genuine leaders who want to lead their people to a better place.


Implication

There will be a small group of elites who are close to government who will benefit greatly. The rest will suffer. The rich will get richer while the poor get poorer – all whilst the PNG’s economy booms

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