PNG's Opportunity To Leverage Off China's Global Ambition

Truth Is Knowledge Of Things As They Are

Empires have risen and fallen throughout human history and this is a historical truth. Common to this history is change. The saying 'change is the only constant' is also a truth. This is China's turn to rise and this is the glaring undeniable truth.

Trade And Commerce: An Economy's Lifeline

To strengthen and sustain its economy, population and position, China is leveraging off the old business of trade and commerce (unlike other competing superpowers who use conflicts and wars to further their course). China's modern day 'silk road' policy is strategically conceived with a 1000 year reign in view. All airports, wharves and roads, either build around the world or in PNG, will lead to China. These will be the trade and commerce arterial lifeline for China in its global ambition.

Competing Powers And PNG's Place

Another truth about this too is that China's global ambition is being monitored, countered and rivalled. In the Pacific theater of this global domination race is PNG, which is smacked right in the middle of this crossroad of superpowers rivalry intersection. PNG must have a plan (which I trust our GoPNG already has) or we will be only working to fullfil the competing superpowers and their power play plans to use our country. PNG is strategically placed now to play both sides. GoPNG must play them well and get the maximum benefits down to our people. In the midst of this play are the drums of chinaphobia.

Who Is Drumming Up Chinaphobia In PNG?

Look closely at who is drumming up chinaphobia in PNG. The same 'mastas' who once had told us rice cannot be grown in PNG. The same 'mastas' who pre-independence practiced white and black segregation on our very own solid shores. The same 'mastas' who, even now, will still not relax their visa entry requirements, which is a legacy of their pre-independence apartheid rule, for a 'native' of this land to fly down easy. The same 'mastas' who continue to turn a blind eye when alleged proceeds of corruption crimes are siphoned off to be invested in the land downunder. The same 'mastas' who are saying we are not yet ready to have a team in their precious NRL competition. The same 'mastas' who drew a circle for us to play in and when we step out of the circle they screamed we are inferior. The motives of the do-gooders must be questioned. Question all the forces that are at work to influence us. Often they will do it for their own gain, but as a country and with the rise of China, we are now strategically placed to play all of them well. PNGns must assert ourselves if we are to inherit the wealth of our country. O arise all you 'natives' of our land because our 'masta' has been sleeping while on the watch.

Australia Slumbers On PNG Watch

Australia has been sleeping and we now know very well what Australia is capable of doing in its 'sleep walk' dealings with us. These have largely been not 'fair dinkum'. Now that it has been jolted awake by China's increase presence in the region, it and its institutions and agents are increasingly drumming up chinaphobia in PNG and trumpeting China's soft loans as debt trap. This is also a truth but the countries which have fallen prey to China's debt trap are those which have become over burden with debt.

Chinese Loans Requires Understanding

From a comment by Phil Senginawa in Sharp Talk. "People need to understand the difference between Aid/Grants and Soft/Concessional Loans. We can complain and complain till the pigs fly regardless of whatever government is in charge. PNG currently owes China US$634 million (PGK2.12 billion) in soft loan and its insignificant, can be repayble after a brief period whereas Sri Lanka owes China US$64 billion in Loans which is nearly 90% of their GDP. Every countries and MNC's rely on loans to pursue their development Agenda. Unless if you have huge financial reserves or substantial sovereign wealth fund to finance your infrastructure developments. With a narrow economic base like PNG, financing for development is not an easy task. It needs economic diversification and monetary policy realignment. If advanced economies are not getting loans from international and regional financial institutions, they're issuing treasury bonds domestically and that is a form of domestic loan. Almost all countries are indebted domestically or internationally and they have fiscal deficits anyhow. If western powers are influencing developing countries not to acquire loans from China then where should they get loans to fund their infrastructure developments? Should they stick to IMF and World Bank where they pay annual membership fees to be eligible to get loans that comes with strict conditions and high interest repayments? China's loans are flexible, however all PNG needs is to strengthen its governance structure against the possible corrupt dealings that comes with the loans. Also be firm on the Terms of Reference and ensure 50/50 benefits to PNG private sector."

Where To From Here

For resource rich PNG I think our debt is manageable but we must manage it well and align our development aspirations to leverage off China's global ambitions. PNG must adapt, even embrace change and changing alliance, to progress our own interest as a country and leverage off this opportune change brought on by China's era to ascend and claim the world No.1 economic superpower position.