I find in my interaction with the government, as well as with the commercial sector in London, that very little is known about the Pacific region. Much is known about Australia and New Zealand, our larger Pacific members. And much is known in London about Africa, Middle East, even the Caribbean. But the potentials the Pacific region has to offer and the challenges we struggle with, are little known. Perhaps this series of lectures will open the door a little, trigger curiosity to find out more about the region. The world is connected. What happens in one of its corners will affect the rest. In this discussion, the Pacific Island countries or PICs as we refer to ourselves exclude Australia and New Zealand for the very important reason that they are developed countries. They are also our development partners. Our challenges are not shared by them.
I am going to concentrate my remarks on Papua New Guinea. Fundamentally, the PICs share similar threats. It is only a matter of scale. Some threats are more magnified in some PICs, for example, Kirabati and Tuvalu face existential challenges from rising sea levels. Other threats are more emphasised in PNG, for example, the impact of large-scale investments on the lives and livelihood of Papua New Guineans. I want to explore in particular how such impacts through engagements through group memberships, bilateral relationships, inward investment, have on national sovereignty.
Original Title
The International Threat to National Sovereignty in Papua New Guinea
I find in my interaction with the government, as well as with the commercial sector in London, that very little is known about the Pacific region. Much is known about Australia and New Zealand, our larger Pacific members. And much is known in London about Africa, Middle East, even the Caribbean. But the potentials the Pacific region has to offer and the challenges we struggle with, are little known. Perhaps this series of lectures will open the door a little, trigger curiosity to find out more about the region. The world is connected. What happens in one of its corners will affect the rest. In this discussion, the Pacific Island countries or PICs as we refer to ourselves exclude Australia and New Zealand for the very important reason that they are developed countries. They are also our development partners. Our challenges are not shared by them.
I am going to concentrate my remarks on Papua New Guinea. Fundamentally, the PICs share similar threats. It is only a matter of scale. Some threats are more magnified in some PICs, for example, Kirabati and Tuvalu face existential challenges from rising sea levels. Other threats are more emphasised in PNG, for example, the impact of large-scale investments on the lives and livelihood of Papua New Guineans. I want to explore in particular how such impacts through engagements through group memberships, bilateral relationships, inward investment, have on national sovereignty.
I find in my interaction with the government, as well as with the commercial sector in London, that very little is known about the Pacific region. Much is known about Australia and New Zealand, our larger Pacific members. And much is known in London about Africa, Middle East, even the Caribbean. But the potentials the Pacific region has to offer and the challenges we struggle with, are little known. Perhaps this series of lectures will open the door a little, trigger curiosity to find out more about the region. The world is connected. What happens in one of its corners will affect the rest. In this discussion, the Pacific Island countries or PICs as we refer to ourselves exclude Australia and New Zealand for the very important reason that they are developed countries. They are also our development partners. Our challenges are not shared by them.
I am going to concentrate my remarks on Papua New Guinea. Fundamentally, the PICs share similar threats. It is only a matter of scale. Some threats are more magnified in some PICs, for example, Kirabati and Tuvalu face existential challenges from rising sea levels. Other threats are more emphasised in PNG, for example, the impact of large-scale investments on the lives and livelihood of Papua New Guineans. I want to explore in particular how such impacts through engagements through group memberships, bilateral relationships, inward investment, have on national sovereignty.
843.271.6891 ph pacificislandssociety.org web Domestic Non-Profit Organization The International Threat to National Sovereignty in Papua New Guinea By H.E. Winnie Kiap Published: March 19, 2013
I find in my interaction with the government, as well as with the commercial sector in London, that very little is known about the Pacific region. Much is known about Australia and New Zealand, our larger Pacific members. And much is known in London about Africa, Middle East, even the Caribbean. But the potentials the Pacific region has to offer and the challenges we struggle with, are little known. Perhaps this series of lectures will open the door a little, trigger curiosity to find out more about the region. The world is connected. What happens in one of its corners will affect the rest. In this discussion, the Pacific Island countries or PICs as we refer to ourselves exclude Australia and New Zealand for the very important reason that they are developed countries. They are also our development partners. Our challenges are not shared by them. I am going to concentrate my remarks on Papua New Guinea. Fundamentally, the PICs share similar threats. It is only a matter of scale. Some threats are more magnified in some PICs, for example, Kirabati and Tuvalu face existential challenges from rising sea levels. Other threats are more emphasised in PNG, for example, the impact of large-scale investments on the lives and livelihood of Papua New Guineans. I want to explore in particular how such impacts through engagements through group memberships, bilateral relationships, inward investment, have on national sovereignty. PAPUA NEW GUINEA PNG is the largest of the Pacific Island Countries. It occupies the eastern half of the island of New Guinea. The other half is the Indonesian province of Papua, formerly Iryan Jaya. PNG also includes three large islands of New Britain, New Ireland, and Bougainville and over 600 smaller islands. At a glance PNG has: Surface Area: 462,840 sq km Population: 6.2 million (July 2011) Population growth: 2.8% per annum GDP: US$12.53 billion (2011) GDP per capita: $1880 (2011) Languages: Over 800 or one-tenth of the world languages PNG is geographically diverse with terrain ranging from high interior mountains to jungle lowlands, in addition to tiny islands and archipelagos. Rainforests cover approximately 75% of the country. PNG remains largely a rural country, with only 13% of the population living in urban areas according to 2010 figures. It is home to all the ethnic groups of the Pacific: Melanesians, Micronesians, and Polynesians. Of course in modern times, it is now home also to other races.
Winnie A. Kiap is the High Commissioner to the United Kingdom from Papua New Guinea.
Ambassador Series Pacific Islands Society Ambassador Series | March 19, 2013 Government
The government is a constitutional parliamentary democracy. The British monarch is the Head of State, represented by a governor-general.
The national government determines the policies, laws and the budget. While the 22 provincial governments are mandated to implement development programmes funded by the national government. Below the provincial governments are the district and local-level governments, concentrating on development of small groups of villages.
Natural Resources
2009 figures show that PNG exported $2.8bn worth of minerals (mostly copper and gold). This constituted about 62% of all exports. Main primary exports are palm oil, coffee, cocoa and tea. In 2010, PNG produced 0.7% of world coffee, making it the 15th largest exporter out of the 50 producers. Palm oil accounted for 1.3% of global exports putting PNG among the top 6 producers from the 27 exporting countries. Of the 19 world cocoa exporters, PNG ranks as the 9th largest exporter with 41,000 metric tonne.
SOVEREIGNTY AT RISK
What is sovereignty? I have an understanding of the concept of sovereignty, but I decided to look up the term. And these are some of the definitions I came across: Sovereignty entails the right to self- government in a political system which must operate independently of foreign rule or control. Sovereignty means supreme and independent power or authority in government. Sovereignty of nation-states is exercised on their territory with no role for external agents in domestic structures. Sovereignty is connected to the ability of a state to guarantee the best interest of its own citizens. If it does not act in the best interest of its citizens, then it is not sovereign. Sovereignty is a matter of legitimacy and requires reciprocal recognition.
Sovereignty then is about exercise of authority without external interference. Exercise of authority for the good of citizens. Inferred or imposed is the aspect of moral authority.
GLOBAL MEMBERSHIP
PNG is a member of many international organisations. In the South-East Asia-Pacific region, there are groupings such as the Pacific Islands Forum presently composed of 14 island countries and Australia and New Zealand. There is the Melanesian Spearhead Group (MSG) consisting of PNG, Fiji, the Solomons, and Vanuatu. Asia Pacific Economic Co- operation or APEC which is the larger economic grouping including the US, Canada, Russia and all other Pacific-rim countries. With an observer status in the Association of South East Asian Nations or ASEAN, PNG is working on full membership. There is the United Nations of course and the Commonwealth and the EU- ACP.
There are bilateral arrangements between countries. Then there are economic partnerships through investment by multilateral corporations.
Membership of groups imposes compromise. To what extent should a nation relax its moral and legal boundaries to accommodate rules of the different groups it buys into? Some rules may not necessarily be in the best interest of its citizens. Would it be in the best interest of its citizens if a nation were to structure its government policies and concentrate its resources in servicing membership requirements?
PNG has entered into some agreements and treaties for which it has no infrastructure including legislative, to uphold. Ten years ago for example, an agreement was entered into with Australia for provision of Australian federal Pacific Islands Society Ambassador Series | March 19, 2013 police to enter into and work within the PNG government police structure. The Australian police personnel however were not subject to the laws of PNG. PNG courts eventually ruled that the agreement breached the PNG Constitution and the facility was quickly dismantled. Here was a situation where the facility clearly suited Australias security arrangements, but it was not in the best interest of PNGs own security. It was both an interference from one sovereign state not respecting the sovereignty of the other, and it was an act of a state absconding from its moral responsibility to protect its own sovereignty and its people.
Globalisation is a fact which cannot be ignored. It has to be embraced. But the pace at which developing nations attempt to bridge the gap between themselves and the industrialised nations should be determined to a greater degree by each individual developing nation.
As 2015 approaches, the Millennium Development Goals (MDG) become a focus of discussion and assessment. There is nobility in the underlying reasons for the MDGs. We cannot pretend that poverty or wealth creation is not a domestic concern. Nor can we ignore the importance of protecting the environment. And certainly, our social indicators are a horror even to ourselves.
The architects of the MDGs should have gauged the capacity and capability of each participating nation for best-fit structured programmes. I take a couple of MDG goals to illustrate this statement.
Let us now take Goal No. 3: Promoting gender equality and empowering women. PNG will fail in achievement of this goal.
Because the MDGs fail to recognise the generational dimension of gender equality. In the space of 15 years it is not possible for generations believing that women and girls are less deserving than men and boys to die out. Nor is it possible for the entire nation to suffer amnesia so that the slate is wiped clean and a new culture is born free of the baggage of gender disparity.
Let us take Goal No. 6: Combating HIV/AIDS, malaria and other diseases.
Targets included universal treatment for victims of HIV/AIDS by 2010. But by 2010, the spread of the virus in PNG outpaced all mitigation programmes against the virus. One of the threats to the treatment programmes was reporting requirements. Drugs could be released only upon receipt of reports from implementing agencies. If reports are slow in reaching the capital, patients died.
For malaria eradication, much money was poured into PNG from various sources including multilateral, as well as private foundations. The capacity on the ground to absorb such resources is still limited and creates a crisis in credibility and sustainability. International response was to the MDGs, not to demand.
There were also emerging challenges surrounding malaria that subsequently became apparent. Firstly, the mosquito insect began to change its feeding habit in response to the use of mosquito nets by the people. Secondly, it is now surviving in higher altitudes where the bulk of the population is found as a result of climate warming. But PNG is judged to be failing the MDGs.
Goals must be set in response to demand by PNG. Goals imposed from outside are more likely to be cause for sovereign risks rather than development catalysts because they are not likely to be sustainable.
Inward investment should contribute directly to an agreed Delivery Strategy to complement what PNG is already doing. It is not only the question of relevance but more so the question of impact and sustainability. While partnership engagement is a key factor in development programmes, the question of demand is also key. Assistance programmes must be demand- driven.
Pacific Islands Society Ambassador Series | March 19, 2013 Bilateral approaches must also be aligned to Delivery Strategies of PNG. And PNGs foreign policy must be premised on the definitions of sovereignty previously quoted. PNG appears to be in the habit of contracting itself out as a partner in solving immigration problems of another state. Its vulnerability in terms of development fund appears to be the instrument of consent, overriding important considerations of human rights interests of the refugees, domestic legal infrastructure support, and moral justification for such decisions.
Economic development proceeds in an orderly manner from carful policy. PNG has reached its present stage of development on the back of revenues from minerals and crude oil. The mining industry has dominated PNG economy since the 1970s. Careful policy will increase investment and productivity in the sector and will avoid conflicts such as we had in Bougainville in the nineties and during which many lives were lost and a whole generation came of age without having gone to school.
During that time mercenary soldiers from Britain attempted to participate in the conflict resulting in the downfall of a prime minister from office. Mine tailings impact on the lives and livelihood of the land owners and others living along river ways. Careful legal and policy frameworks by the state will ensure protection of its citizens and the environment. BHP Billiton pulled out of OK Tedi Mine as a result of polluting the Fly River system through dumping of waste tailings. The environmental damage will remain unsolved for some time.
Land is not a saleable commodity in PNG. It has to be negotiated between the government, the investor, and the land-owning clan. Security of investment and production rests on the understanding of the relationship between the people and the land. Lack of understanding or worst, misunderstanding of this crucial relationship can stall or cripple production.
Land dispute is a growing problem and effective mechanisms are required to address the problem. Protracted land dispute resolution effectively ties up land and hinder investment and can lead to serious conflict between the landowners and the investors and government. Careful policy needs to be in place to address this important problem.
Displacement of people from land acquired for investment projects, creates security challenges as well. It is not possible to be permanent guests on other peoples land where freedom to hunt, gather, garden or own is not possible. A measure of a man is determined by how much land he owns. The State and the investor must necessarily take these aspects into account during the initial negotiations and policy decisions.
Socio-cultural aspects of life undergo major shifts in societies where mining projects exist. Destruction of forests, presence of foreigners, and machineries bring about changes in the relationship to land as already mentioned and in the interdependence between people and the fauna and flora within that space. The scene is also set for spread of STDs and the HIV virus and further victimisation of women and girls.
The resources being extracted from beneath the land and sea by the living generations are not renewable. Smart leadership and smart management policies will ensure that the rights of the future generations born after these resources have been depleted, are taken into account. That they too benefit from the wealth bequeathed to them by virtue of birth as Papua New Guineans.
In February 2012 legislation on sovereign wealth fund was established. The SWF will receive the first lots of revenue in 2014 from the $15bn LNG project now under construction. The past 20 years has seen poor financial management and un-defendable levels of corruption. In 1994, PNG was on the brink of bankruptcy and had to devalue its currency. Its reserves were voraciously consumed without a thought to its own sovereignty. Someone said at the time that PNG ate up its own sovereignty.
Poised now to receive wealth through gas revenues, will the leadership rise to the higher moral plane in terms of accountability and Pacific Islands Society Ambassador Series | March 19, 2013 sustainability of the fund? Will infrastructure be in place to protect leadership and the fund from risks?
The magnitude of the wealth from one or two sectors poses risks in terms of economic sustainability. Food security should not be compromised by concentration of resources away from the agriculture sector. The higher annual population growth rate is already a threat to the lower food production rate.
Climate change impacts on food production on land and in the sea. A substantial percentage of the SWF funds should be invested in agriculture and food production. Manufacturing should also be seriously promoted especially outside of the capital Port Moresby. Population centres should be promoted outside of the major urban centres.
The LNG gas project is driving the economy at present. While it is driving healthy growth it is also causing instability in areas such as housing affordability for low-income earners who are Papua New Guineans. Labour demands on the early construction phase saw high levels of imported labour. This is a very possible risk as PNG may be said to have succumbed to investors agenda without preparing itself to respond appropriately to investment. Unemployment among young school leavers is relatively significant. At professional levels, the gap meant import of engineering skills, for example. The demand had not been present before and the country did not have careful policy in terms of its own ability to respond and sustainability of undertakings.
Beneath the land in PNG are minerals and gas. PNG is almost licensed out in its entirety to prospectors. All the mining on land and beneath the sea will bring wealth but will also bring threats to the environment, the eco-system, socio-cultural structures, language loss, displacement of people from their land, internal migration and accompanying social problems.
I listened to the sermon delivered by Francis 1 this morning during his consecration as the 266thth Pope. Many important advice and instructions are given by the Pope in that homily. One that captured my attention most, perhaps because of this speech, is the call for care, the duty of care. Care by everyone, for everything and for the creation we inherit. I mentioned in instances the phrase careful policy. I think the Pope and I are on the same wavelength. High authority should be exercised with care for people, and for national sovereignty.
In this respect I am pleased that the PNG 40 yearlong term strategy referred to as Vision 2050 gives topmost priority to human capital development. In order to achieve that vision of a Smart, Wise, Fair, Healthy and Happy Society by 2050, we must be skilled in setting the frameworks to lead us there. Careful planning will take our people forward to the space of advanced societies. At the same time it will protect our sovereignty. One of the priorities concerns Spiritual, Cultural and Community Development. This priority underpins the need for moral responsibility and the duty of care by government.
CONCLUSION
Opportunities for investment and development are greater in PNG as PNG has more resources than other Pacific Island Countries. In the short and immediate terms it has to concentrate on education, health, and infrastructure, which are its priorities even in the current budget year. But with careful planning in the interest of all people and environment, PNG should in the long term, be able to share its knowledge and wealth and play a greater role in the development of the region. Indeed it has begun in small ways by investing in some of the countries already. It is perceived as the senior and influential member of the region so it must extend that duty of care even to the other member countries of the region.