World Bank: PNG's growth is booming, but the jobs for ordinary citizens are not up to par
The World 'Bank'said Thursday that Papua New Guinea’s economy will grow by 5.6% between 2025 and 2050,?one the highest growth rates in?Pacific?, but this boom does not translate into more jobs or better living conditions for a majority of its citizens.
Foreign exchange reforms eased the currency shortage that had plagued businesses for years.
Gold and liquefied gas production boosted output as well, while the commodity prices?and LNG revenues supported a large current account surplus.
The World Bank stated that formal employment per capita has declined despite the rapid expansion of the workforce and population. The World Bank said that most new workers are either subsistence farmers or informal workers who do low-productivity work, rather than entering the formal economy.
The?bank stated that PNG's economic system is very divided. LNG, gold, and copper are responsible for 80% of PNG's export revenue, but only 6% of its workforce is employed in these industries. This leaves most Papua New Guineans out of touch with productivity gains made by the fastest growing sectors of the?economy.
The World Bank has said that PNG must have a clear jobs agenda and better infrastructure. It also needs to improve education and health. Reforms are needed to make it easier to hire and invest by private firms.
The bank stated that projects?including Papua -LNG and Wafi-Golpu?represent an investment pipeline worth more than $30 billion. This gives the government the opportunity to negotiate better local employment and revenue provisions.
The 'World Bank' said that agribusiness and agriculture, urban services, fisheries, and labour mobility would be the most likely sources of job creation. Without stronger links between growth and employment, PNG risks leaving its majority behind.
The Papua New Guinean government did not respond immediately to requests for comment. (Reporting and editing by Christopher Cushing; Lucy Craymer)
(source: Reuters)
