Pacific Magazine > Magazine > December 1, 2001

Papua New Guinea

Sir Mekeere's Political Future Not Assured

With election looming, there are more worries.


Papua New Guinea watchers, domestic and external, felt a flare of optimism when Sir Mekere Morauta, a former reserve bank governor with a reputation unblemished by the dubious doings of so many of the country's other leaders, became prime minister in July 1999.

Papua New Guinea's political, economic and social affairs were in a deeply dismaying state. Many saw Morauta as Papua New Guinea's last hope of clawing itself away from the toppling into national insolvency and anarchy.

Ever since then, Morauta has been engaged at times in an almost single-handed battle to repair Papua New Guinea's fortunes.

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He rules in a state of constant confrontation with political enemies intent on protecting interests that clash with his attempts to repair and reform structures of government rendered rotting by incompetence and corruption. Social unrest produced by unemployment, poverty, the decay of government services, crime, and trouble with the military and police, contribute to the weakening of national stability.

A resource-enriched economy that should be one of the strongest in South East Asia and the Pacific is instead a deeply troubled one.

The economy did well in 2000. But analysts predict that it could decline by two to three percent this year. Local and foreign business confidence in the country is declining and national creditworthiness has been downgraded.

Morauta faces a general election next year. His political survival is not assured.

Papua New Guinea's fortunes are waning on nearly every front. But there is peace at last in secessionist Bougainville, although an agreement for greater political autonomy for the island presents scope for local leaders to eventually secure their target of full independence.

As mining and agricultural industries falter and decline, Papua New Guinea's one great economic hope lies in a multi-billion dollar scheme for piping natural gas to Australia.

 

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