Could it be improved or should it be done away with? It begins by examining the nature and flow of foreign aid so as to establish the context for analysing the future of foreign aid in PNG. It then attempts a cursory evaluation of the successes and failures of aid in the country over the last 25 years and draws some conclusive recommendations on its future in PNG. The article is an mere overview of this multifacet subject, complicated by limited reliable data.
Hence, it is based largely on the experiences of the author on the subject. Foreign aid is provided for various reasons including that of the donor county's strategic, economic, political and ideological priorities and historical or cultural links. For aid receiving countries like PNG, aid is an important source of capital to complement the shortages of domestic resources necessary for social and economic development.
It has at times been a determining factor in their development processes. All these types of aid have their own terms and conditions.
The net disbursements from all sources to PNG increased in to K million from K million in , which is an increase of over 50 percent. It peaked in the early s and declined in absolute terms in The net disbursements from DAC countries to PNG have grown at an average rate of 3 percent per annum between and Figure 1 shows the average flow of foreign aid over a five-year period between and and projections for Notes : The substantial increase in bilateral aid is due to the shift from Australian budget support to project aid.
Projections for is based on annual averages and macroeconomic forecasts. In this argument, aid was justified until recently to palliate the failure of private capital to flow to the developing world. In this situation, these donors assert that, why provide aid at all to PNG? Does it not simply allow incumbent governments to maintain inefficient economic policies?
These arguments hold some truth, especially for middle income and upper middle income countries. It is hard to justify aid to any country in which counter-productive policies are preventing economic growth, and economic rationale alone clearly does not justify providing large amounts of aid to relatively rich countries that already receive significant private flows.
However, this argument is too generic and overemphasized to apply to PNG and there are two good reasons for this. First is that, private capital has been almost entirely directed to either extremely large economies like China, or middle income countries like Thailand.
Private capital flows are heavily concentrated in a few countries, and some flows are volatile. A surge in the late s receded after the onset of the debt crisis in Another big rush occurred in the mids, but with the financial crises rocking East Asia in foreign investment dropped sharply.
In any event, private flows continue to go to a small number of mostly middle-income countries. In , 26 countries received 95 percent of private investment; the rest went to the other developing countries. In a typical lower middle-income country like PNG, foreign aid remains far and away the primary source of external finance. With the exception of the mining and petroleum sector, the country has not been able to attract significant private capital in recent years.
Perhaps, as the country emerges from its difficult economic mismanagement, its vast economic potential and resources would attract significant private capital, and so proponents could then push for elimination of foreign aid. But that maybe for sometime yet. Hence, for the foreseeable future, PNG will rely on public money for her external capital requirements. At some instances, it is true, private capital has been driven away by certain governmental practices and counter-productive economic policies and the law and order situation.
Million Kina in nominal values. Internal Revenue. Domestic Borrowing. Australian Budget Support. Project Grants. Concessional Borrowing Loans. Commercial Borrowing Loans. Total Revenue. However, the Morauta Government in has implemented difficult reform programs amidst strong domestic opposition under the guidance of the World Bank and the IMF and can now boast of market-friendly economic policies, and yet investment is been kept away by many of the characteristic features of a lower middle-income economy: small consumer markets, poor physical and communications infrastructure, an ill-trained labor force, law and order and uncertainty about future stability.
Nor has PNG benefited substantially from the dramatic expansion of trade generated by trade liberalization, most recently under the aegis of the World Trade Organization. Papua New Guinea's share of trade continues to decline and was insignificant in Indeed, the evidence suggests that PNG may prove to be a big loser, with its share of trade further declining if present trends continue.
Second, Papua New Guinea's development needs remain enormous. On average, 90 percent of the rural population lives below the poverty line. Despite the progress made over the last 25 years in the areas of health and education, PNG remains behind other Asia-Pacific countries and further back in the world. Only 60 percent of school age children are in primary school compared with full enrollment in most of the countries in Asia-Pacific.
Infant mortality has been cut by a third in the last 25 years but, at some 90 per thousand, remain more than twice-prevailing levels in Asia-Pacific. Moreover, partially because of the political instability and economic mismanagement, and partially because of a typically small economy trapped by its own poverty, PNG is simply not capable of meeting all of its development needs from its own resources.
The Wingti and Chan governments, for example, routinely devoted close to a quarter of their total expenditures on education and yet PNG still has an adult literacy rate of less than 55 percent, while only 75 percent of school age children are in primary school.
In many provinces, the density of the road network is less than five percent of the levels in Australia and other developed Asia-Pacific economies, yet the cost of maintaining existing roads is larger than the country's total transportation budget. The evidence overwhelmingly suggests that the private sector will not provide much help for overcoming these problems, which will remain the responsibility of the Government for some time yet. With economic growth, in time PNG will be able to finance these developmental expenditures out of her own revenues.
Thailand, once one of Asia's largest per capita recipients of aid, sustained one of the fastest growth rates in the developing world during the s and can today finance nearly all of its ambitious development programs from its own funds.
The country is being graduated out of aid by most donors, including the ADB. Thailand can today attract private capital on its own. But for most Asian and Pacific countries including PNG, foreign aid remains necessary if they are to break out of poverty. Given the relatively large volume of foreign aid since , how effective has this aid been in the development efforts of PNG?
The answer depends on what aid was intended to achieve. As a tool of transferring resources, the results have been mixed. As a project funding gap filler, the answer would be positive.
An externally derived resource, aid also bridged the foreign exchange gap. Alongside many disappointments, aid has financed many development projects and programs which achieved very high internal rates of return, including schools, clinics, health posts, bridges, roads, capacity building and training programs.
The egregious failures of foreign aid usually get the headlines. View Company Profile. Jobseeker Login Employer Login. Communications Coordinator. Develop and promote communications and marketing materials through appropriate social channels.
Track analysis and create reports detailing success and failures of communications campaigns. Ensure that all communications and marketing aligns with brand standards. Maintain digital media archives including photos and videos. Respond to media inquiries and media outreach to achieve brand placement in publications. Good knowledge, experience and skills in IT and Photography. Communications and Working Relationships Internal WaterAid PNG WaterAid Australia participation in learning events, liaising with Advisors WaterAid global intranet participation in webinars and other online learning platforms External Multiple governmental and non-governmental stakeholders Physical Environment and Demands High travel requirements to Wewak, East Sepik Province Travelling to districts and remote areas of Papua New Guinea Level of contact with children The role may involve engaging with communities and schools to develop and collect information for program monitoring and evaluation purposes, and as such may come in contact with children.
The position will be required to maintain WaterAid child safeguarding principles and standards at all times. Must possess exceptional writing skills and be able to compose engaging and accurate content. Strong communicator who works well independently and with a team and engaging with partners and stakeholders Superior time management skills and the ability to juggle multiple projects simultaneously Understanding of communications, public relations and marketing best practices Must be resourceful and take initiative even when given minimal direction A demonstrated professional approach in communication, promotion, media liaison and information provision with mainstream media platforms etc….
Applications for this role must comprise of: An application letter addressing the essential person specification criteria outlined above maximum 2 pages. A curriculum vita maximum 4 pages.
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