Remembering the Legacy of Sir Julius Chan

Papua New Guinea closes a chapter of its political history with the passing of the late Sir Julius Chan, the country's second Prime Minister after independence. Chan is fondly revered as one of the nation's founding fathers.

As the country lays Sir Julius to rest, let us remember and appreciate his legacy spanning over fifty years of our political history. He is credited as a key figure in Papua New Guinea’s independence movement and has played a significant role in its political landscape for decades.

Chan first served as Prime Minister from 1980 to 1982 and then again from 1994 to 1997. His second term was marked by controversy, particularly the Sandline Affair in 1997, in which his government hired foreign mercenaries to suppress the Bougainville uprising. The scandal led to widespread protests and ultimately forced him to resign. He?is also known for his advocacy of economic development and governance reforms.

Sir Julius Chan served two terms as Prime Minister of Papua New Guinea (PNG):

First Term (1980–1982)

? He became PNG’s second Prime Minister after ousting Sir Michael Somare in a parliamentary vote of no confidence in 1980.

? His leadership focused on economic stability and strengthening international relations.

? However, his government was short-lived, as Somare’s party won back control in the 1982 general elections.

Second Term (1994–1997)

? Chan returned as Prime Minister in 1994 after Paias Wingti lost a no-confidence vote.

? His second term was marked by economic reforms but was overshadowed by the Sandline Affair in 1997.

? The Sandline Affair involved his government hiring foreign mercenaries to fight rebels in Bougainville, which sparked military opposition and public protests.

? This crisis forced him to step down in March 1997, although he later resumed office briefly before losing the 1997 election.

Contributions to Economic Development

1. Promotion of Natural Resource Development

? Chan played a significant role in expanding PNG’s mining and petroleum sectors, which became key drivers of the economy.

? His government encouraged foreign investment in gold, copper, and oil projects, particularly in the Ok Tedi and Lihir gold mines.

2. Privatization and Economic Liberalization

? He pushed for privatization of state-owned enterprises to improve efficiency and attract investment.

? His economic policies aimed at reducing reliance on foreign aid and increasing self-sufficiency.

3. Infrastructure Development

? His leadership saw investments in transport and communication networks, which were essential for PNG’s economic growth.

4. Advocacy for Economic Autonomy

? Chan has long supported PNG’s economic independence and decentralization of power to provincial governments to foster regional development.

Even after his tenure as Prime Minister, he remained active in politics, serving as Governor of New Ireland Province, where he prioritized local economic growth and improved revenue-sharing agreements for resource-rich regions.

1. Economic Policies

Sir Julius Chan’s economic policies focused on stabilizing PNG’s economy, encouraging foreign investment, and reducing reliance on foreign aid. His government aimed to create a more self-sufficient PNG by strengthening domestic industries and increasing exports.

? Encouraging Foreign Investment: He pushed for policies that attracted multinational corporations, particularly in the mining and petroleum sectors, to develop PNG’s vast natural resources.

? Monetary and Fiscal Reforms: His administration attempted to control inflation and manage public debt while ensuring economic growth.

? Trade Liberalization: He supported opening PNG’s economy to international markets, reducing tariffs, and promoting regional trade agreements with Australia and other Pacific nations.

2. Resource Development

Sir Julius Chan played a major role in expanding PNG’s mining, petroleum, and forestry industries, which became the backbone of the economy.

? Ok Tedi Mine: One of PNG’s largest gold and copper mines, developed during his time in government, contributing significantly to national revenue.

? Lihir Gold Mine: He supported the establishment of this world-class mine in New Ireland Province, his home region, ensuring local benefits from mining activities.

? Petroleum Sector Growth: His administration helped lay the groundwork for natural gas and oil exploration, paving the way for later LNG (Liquefied Natural Gas) projects.

? Revenue-Sharing Reforms: He advocated for better royalty distribution, ensuring that resource-rich provinces received a fair share of the economic benefits.

3. Privatization Efforts

During his second term as Prime Minister (1994–1997), Chan promoted privatization to improve efficiency and reduce the financial burden on the government.

? State-Owned Enterprises (SOEs): He attempted to privatize poorly performing government businesses in telecommunications, transportation, and energy.

? Foreign Partnerships: Encouraged joint ventures with international companies to improve service delivery and infrastructure development.

? Challenges and Resistance: His privatization policies faced political opposition and public skepticism, as many feared job losses and foreign control over essential services.

4. Infrastructure Development

Recognizing that economic growth required better infrastructure, Chan’s government invested in key projects:

? Transport: Expansion of roads, ports, and airports to connect remote areas with urban centers, improving trade and accessibility.

? Energy: Supported hydroelectric and fuel-powered energy projects to expand electricity access.

? Telecommunications: Pushed for modernization of PNG’s telecom industry, though slow progress was made.

However, geographical challenges and budget constraints limited large-scale success in infrastructure projects.

5. Decentralization & Regional Development

As Prime Minister and later Governor of New Ireland Province, Chan was a strong advocate for regional autonomy and greater provincial control over resources.

? Provincial Government Empowerment: He pushed for policies that allowed provinces to manage their own revenues and determine development priorities.

? New Ireland’s Economic Growth: As Governor, he introduced policies to boost local businesses, fisheries, and tourism to make the province less dependent on national government funding.

? Equitable Resource Sharing: Advocated for provinces that host mining, oil, and gas projects to receive a fairer share of revenues from these industries.

Legacy & Impact

Sir Julius Chan’s political and economic leadership helped shape modern PNG, but his tenure was also marked by controversy, particularly during the Sandline Affair in 1997. While some of his economic reforms were successful, others faced resistance and were not fully implemented.

Regardless, Sir J will be remembered as the second Prime Minister and founding father of PnG who introduced PNG's currency, Kina and is the only Prime Minister since 1980 to deliver PNG's one and only Foreign Policy White Paper.