Take Two

Papua New Guinea police are soon to be joined by 40 Australian counterparts under the renegotiated Enhanced Cooperation Package. (Photo: Alex Rheeney)

A Supreme Court decision in May 2005 ended the $A800 million (US$600 million) program's policing component. But the Australian economic and public administration specialists working within key economic and sectoral national agencies stayed, and the program is beginning to help PNG's bureaucracy become leaner and service-oriented.

Australians who were placed in the departments of Treasury, Finance, National Planning and Monitoring, and Personnel Management early last year had a clear mission - help PNG's economic management by improving budget formulation and fiscal discipline, assist with economic policy, and set up better performance management in the public sector.

Their mission compliments the approach taken by Finance and Treasury Minister Bart Philemon to cut unnecessary public expenditure and channel funds to priority areas such as education and health.

It is close to 12 months after the Australians' deployment and the winds of change are beginning to blow for a country that only three years ago suffered a crippling K8.7 billion (US$2.8 billion) debt, almost 80 percent of PNG's GDP at that time. Economic growth in 2005 was 3 percent, inflation is at a historic low of 1 percent, and interest rates fell with market rates now under 5 percent.

Papua New Guinea Foreign Minister Sir Rabbie Namaliu talked about the success of the program during the Australia-PNG Ministerial Forum in Australia in December.

"In the departments of Treasury and Finance, in customs, in immigration, in civil aviation, in planning and a number of other agencies, Australian officials who continue to remain in Papua New Guinea continue to do very valuable work in assisting various agencies of government in improving our capacity, as well as in (playing) a training and role to young Papua New Guineans who are coming up through the ranks."

The response from local business and community leaders has also been largely positive.

Transparency International (PNG) Chapter Director Richard Kassman says, "they are doing a fantastic job with very limited resources but they can only do that with a successful partnership with Papua New Guineans - if there isn't, then it (ECP) will fail."

Kina Securities Chief Executive Officer Syd Yates believes there is nothing unusual about the PNG government working with expert consultants on the implementation of new policies. "In fact is clearly reinforces further the reputation that PNG has as a stabilized economic nation with huge growth potential," he says.

University of Papua New Guinea academic Solomon Kantha believes while it is too early to judge the success of ECP Mark II, an exchange program that would see Papua New Guinea bureaucrats placed in Australian government departments for six to 12 months might be useful.

"That would also be an effective measure in exposing PNG public servants to different work environments, providing them with valuable experience and building their capacity which would be more viable in the longer term when they return to work in their respective departments."

Australia Papua New Guinea Business Council Chief Executive Alan Walter says the non-policing components of the ECP appear to be working well, and called for the model of be expanded into other areas to broaden the impact of the program.

The December forum enabled the ministers from both countries to progress talks on the ECP with indications Australian Assisting Police will be returning to PNG later this year to help the top brass of the Royal Papua New Guinea Constabulary (RPNGC) implement recommendations of a police administrative review.

PNG's Internal Security Minister Bire Kimisopa told the Gold Coast meeting that ECP Mark II will address the constabulary's weak spots which the government had already identified through a review of the force. These include the fraud squad and prosecutions.

The PNG Parliament will need to make some legislative changes to give effect to Mark II of the policing component.

Meanwhile, Australia's Attorney-General Philip Ruddock says a plan to provide four Australian judges to work in PNG's judicial system is gaining momentum.

"We have had very frank and very fruitful discussions and we're determined that we should be able to move forward positively on this agenda," he told local media during a visit to Port Moresby in January.

Kimisopa says any person who tries to sabotage the ECP Mark II will be "severely dealt with" and urged the country to get behind the initiative.