Economy
From The Report: Papua New Guinea 2020
View in Online Reader

Papua New Guinea has an abundance of wealth in hydrocarbons and minerals that provides it with a solid foundation for economic growth, but also leaves the country vulnerable to the volatility of global commodity markets. As such, the government is following a long-term economic development strategy that aims to expand the state’s revenue share from lucrative extractive projects, encourage offshore processing of natural resources, promote inclusive growth and attract new investments in sectors deemed to offer significant potential, notably agriculture. The government took decisive actions to prevent community transmission of Covid-19, which constrained business activity in the first half of 2020 but also left the country well placed to bounce back without widespread public health consequences. If policymakers can maintain their success in containing the virus and conclude negotiations for resource projects while channelling revenue towards other productive sectors, the prospects for investment are bright. This chapter contains interviews with Sasindran Muthuvel, Minister for State-Owned Enterprises; and Ian Ling-Stuckey, Treasurer.

Articles from this Chapter

Overview

Inclusive growth: The new administration is taking nuanced approaches to persistent barriers to economic development
OBG
plus

Papua New Guinea has an abundance of wealth in hydrocarbons and minerals that provides it with a solid foundation for economic growth, but also leaves the Pacific island nation vulnerable to the volatility of global commodity markets. As such, the government, led by Prime Minister James Marape, is following a long-term economic development strategy that aims to expand the state’s revenue share from lucrative extractive projects, encourage onshore processing of natural resources, promote…

Interview

Achieving goals: Sasindran Muthuvel, Minister of State-Owned Enterprises, on optimising the management and efficiency of state businesses
OBG
plus

Interview:Sasindran Muthuvel Where are there opportunities to optimise the management, performance and corporate governance of state-owned enterprises (SOEs)? SASINDRAN MUTHUVEL: At the executive management level, we must have individuals with relevant skills and experience, along with integrity and sound character, leading SOEs. I have recently pushed for Kumul Consolidated Holdings (KCH) to outsource the recruitment of managing director roles to third-party human resources experts to optimise…

Analysis

Hedge against uncertainty: Gold exports are poised to sustain extractive sectors through the Covid-19-induced commodities slump
OBG
plus

The outbreak of Covid-19 in the first half of 2020 took an economic toll on countries around the world, with each experiencing the effects slightly differently. In Papua New Guinea the pandemic placed the country’s foreign exchange (forex) reserves under renewed pressure; PNG’s forex flows are primarily linked to commodity markets, many of which entered negative territory when the pandemic took hold. In 2019 extractive industries were responsible for approximately 94% of the country’s…

Interview

Attractive option: Ian Ling-Stuckey, Treasurer, on leveraging fiscal and monetary tools in an international crisis
OBG
plus

Interview:Ian Ling-Stuckey With the country’s economy following a boom-bust cycle, what policies could be used to hedge against a downturn, especially amid the Covid-19 pandemic? IAN LING-STUCKEY: I would argue that Papua New Guinea is not a boom-bust economy. While our vital resources sector does experience major swings, this segment accounted for less than one-fifth of the economy from 1980 to 2018. Most sectors of PNG’s economy – that is, the non-resource segments – have a sustainable…

Analysis

Long way home: How is the Covid-19 pandemic affecting the flow of remittances into emerging markets?
OBG
plus

The onset of a Covid-19-induced global recession has affected both labour markets and financial flows around the world. At the confluence of these two are remittances, which have increasingly been among the top contributors to GDP in many emerging markets over recent decades. The issue is particularly pertinent for the countries located in the so-called yellow slice of the global economic pie – the group of high-potential economies that make up Oxford Business Group’s emerging markets…

Analysis

Long way home: How is the Covid-19 pandemic affecting the flow of remittances into emerging markets?
OBG
plus

The onset of a Covid-19-induced global recession has affected both labour markets and financial flows around the world. At the confluence of these two are remittances, which have increasingly been among the top contributors to GDP in many emerging markets over recent decades. The issue is particularly pertinent for the countries located in the so-called yellow slice of the global economic pie – the group of high-potential economies that make up Oxford Business Group’s emerging markets…