Papua New Guinea : economic development of a dependent economy
Date
1980
Authors
Polume, Samson Mamau
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Abstract
In the midst of the struggle for political independence, many of the South Pacific countries are also seeking for ways to make their economies less dependent on external forces. This study is specifically on the nature, the scope and the future of the Papua New Guinea economy, one out of the many developing South Pacific economies. The study attempts to examine the economic development of Papua New Guinea and relates it to the 'dependency' phenomenon.
With its focus on the 'dependency' phenomenon, the main reason for this study stems from one of the questions that many developing countries so often ask themselves--independent from what or dependent on whom? The current study on Papua New Guinea addresses this question by looking at some aspects of the country's economic indicators, in particular, international trade, foreign investment and foreign aid.
In addressing this question, the study also reflects on Papua New Guinea's development principles (The Eight Aims). Of these principles, the 'self-reliance' objective is analyzed in the light of the 'dependency' phenomenon as depicted in the past and current economic conditions of Papua New Guinea. If this study gives the impression that it is very critical of the 'self-reliance' objective, it is not meant to be; it should rather be seen as a constructive analysis of the 'self-reliance' principle.
With the limited data on the indicators of a dependent economy, this study may be somewhat limited in scope; nonetheless, from whatever data that are available some analyses are possible. The trends seem to suggest that, unless something is done about the current dependent nature of Papua New Guinea's economy, there may be trouble in the future.
It is indeed difficult to reach any kind of conclusion in this kind of study, however, it seems that keeping an open mind about the dependent nature of Papua New Guinea's economy would help in some ways to dilute this 'dependency.' A critical and objective examination of the economic development of Papua New Guinea in the light of the dependency phenomenon is a first step to make policy decisions more to the benefit of the country and its people.