JIL Institute of Development Economics

DESIGNED DEVELOPMENT - AID MODEL

How do we justify the economic gain of the K50m counterpart funding to Chinese Aid (grant or loan) funded project in Solomon Islands?

China has designed that aid to hook up the counterpart funds from the poor developing countries. That K250m plus those counterpart millions (K50m from PNG) will be reinjected into the Chinese Economy. They benefit from; employment, growing their company, sell their building materials, etc...

Getting along in a Designed Development is different from Initiated Development. In a Designed Development, we will only facilitate for the benefit of the one who actually designed the development concept. However, we should Initiate Development based on our own socio-economic reasoning. It's about time, we should focus on initiating National Development, rather getting along with what's being designed. No other country on earth will design and initate Development for our benefit - No. It's we ourself have to develop our own development phase, own the development phase and grow with it - from where we are to a better stage.

PNG needs to protect all State Owned Businesses by all means.

We just have to deploy management experts to manage and expand their investment scope, not allowing foreign investors to own and takeover the economic potential.

When we give away the ECONOMIC POTENTIAL, we are ENSLAVING the future of the Govt (the people), and the Govt will become a SLAVE of the so called foreign investors.

Warnings over PNG’s Chinese hydro project Papua New Guinea has given the green light to a new 2.6bn Chinese hydro-electric plant despite warnings it could cripple the nations state-owned power company, as PNGs cash-strapped Marape government seeks another 400m loan from Australia.

PNG is not ready for SEZ Approaches - It can kill PNG SMEs and Enslave Nationals into Economic Slavery

(1) We are not in a capacity to participate, (2) China and Asian FDI giants will not give us any chance in the sipin-off Value Chain of any investment (energy, agri, tourism, etc), and this will kill our SME entreprenuers, (3) Asian forms of Illegal activities will increase and national economic security will be at stake coz we are not in a capacity to monitor and control, (4) We need money, and we are not in a position to give away tax opportunities, (5) China and Singapore's SEZ approaches differ in economic cases where State involved in those major investments as well as State owned major investments in key sectors such as transport, banking, telecommunication, energy), the enabling sectors, and state will make money in SEZ activities. Thats why when they opened it created the customer base for those investments State owned, (6) Having the legal framework (legislation) in place as well as being in the capacity to be a major player in SEZ is essential. Having only the legislation dosent gurantee economic well-bing.

The wayforward;

Strengthen the Domestic Economy First by;

1. Have the Home Grown Policy and Legislation in Place first
2. Strengthen the Domestic Economy by way of Growing PNG SMEs through partnership with SOEs (PPP mode of investment)
3. Resource the Academic and Technical Institutes to upscale skill sets and knowledge capacity
4. Upgrade Tax Revenue mechanisms
5. Expand and Spread SOEs investments.

Once the Domestic Economy becomes Strong, then we open up to SEZ and FDIs.

SUCCESSFUL ECONOMIES INITIATED DEVELOPMENT BASED ON HOMEGROWN LIBERAL IDEAS, NOT RIDING ON FOREIGN OR BORROWED IDEAS

Service Provision and Measure of Development

Development is simply a growth or positive change as a result of service provision. A positive change in the way people think, live and do things as a result of a service provided.

In public policy, a service is regarded as an enabler, that stimulates economic growth and development. The impact as a result of using the service is measured as development. The key thing that defines a service is, it has to be a public good, meaning can be used by the general public, and that has to empower people.

Goverment collects tax from the public and gives back in the form of service to empower them to increase production and consumption (economic means of living)

Any service provided must fulfill certain things;
1. Empower people to improve the way they think, live and do things.
2. Increase production and consumption of goods/commodities (trigger economic activities)
3. Promotes peace and harmony (justice)

For instance, a water supply is a service provided to achieve socio-development. That service has do the above three. People have to utilize this water supply to empower themselves. Access to clean water for drinking is a direct benifit. If this water supply enable number of people getting engaged in fish farming, poultry and piggery, and can be able to sell and earn cash, improve their living, thats development.

Government budget allocation (public funds) is our own money contributed through tax and government gives it back in the form of service to enable our way of thinking, living and doing things.

People mamdated a leader (a Member of Parliament) to;
1. represent them in National Parliement
2. Contribute to National Policy (Policy Making)
3. Oversee Development Programs
4. Speak for development concerns of districts, provinces and the entire country.
5. Administer the use of public fumds to facilitate socio-economic development.

An MP only administer development initiatives with a clear direction to take the district or provunce from the present to a desired future. Every stakeholder (public servants, entreprenuers, churches, and others) are equal players.

Education is one of the key emablers. JIDE focuses on Development Economics - which is to Educate the Human Resource on how to Translate Natural Resources into Capital Formation using Technology. Its research driven higher education programmes are sector based, tied to natural resource commodities. The economic knowledge of resource commodities is essential for policy making, development planning and investment decisions.

Rebranding

Scientists are the key Human Capital in any country. Historically successful Economies relied heavily on them for both Socio-economic Recovery and Revolutionary practices. Two important things we have to do to grow our country sustainably through scientists;

1. Create and Manage a systematic biodata system
2. Upsacle their employment category

Both must be structurally enacted and made known to both the private and public sectors for compliance.

PNG as an Independent Country, we have to become aware of what we have interms of human capital potential and natural resource potential, and revive and establish research and development institutions to maxmize the use of both Scientists and natural resource stock to trigger industry growth and achieve tangible development.

Enough of relying on external assistance. External aid is deaigned only to provide bandaid solutions as a means to create long term market for their industries.

For instance, we have the herbal plants stock and bio-chem scientists. We need to establish scientific labs and essential equipments. I hope, scientists will do their best to find medicinal products.

Scientists include; Bio-Chemists, Geologists, Engineer, Economists, Policy Analyst, etc...

We have to look within......

Thankyou

Economic Potential is what matters most to the future of a developing economy. It is a elastic type basket that holds the EMPLOYMENT POWER of the economy - PNG's Economy. The real measure of the economic potential is trapped witin the resource/sector commodities. National Development Plans (Policies and Sector Development Plans) have to be rationalized based on our knowledge of the economy and its potential, and how that can be unleased through investment programs/projects. Educating the next generation on the ECONOMICS of resource commodities is a strategic practice and that will enable them to tap into the economic potential, own it and dominate their economy (Production - Disrtibution - Consumption). ........

.........This fast flowing river is a resource commodity which holds the economic potential.

Application for Enrollment is open now. Contact us on; email: [email protected] or ph 72095020/76108309 for application form and enrollment procedures.

The economic potential of a nation is held within its stock of Natural Resources. Therefore Education and Academic Progrmmes have to be designed in a way to educate the Human Capital/Stock to translate the Natural Resource Stock into Investments and own the employment, income, wealth and wellbeing of the economy.

Designing and engineering Socio-Economic Development is better than riding on whats designed and engineered by others.