Rich-poor divide must be reduced to eradicate poverty

Asian Development Bank

IN 2012, WHILE PAPUA NEW GUINEA maintained its position as one of the fastest growing economies in Asia and the Pacific, the gap between rich and poor has increased.

“Remote and rural communities in PNG remain cut off from economic opportunities due to poor roads and lack of reliable, safe shipping services, as the gap between rich and poor grows wider,” said Xianbin Yao, director general of the Asian Development Bank’s Pacific department.

“Economic growth must be accompanied by a narrowing of inequality to ensure future prosperity in PNG.

Openness to trade will also be a key ingredient in PNG’s future prosperity. By connecting local producers to domestic, regional, and global markets, trade will help fight poverty, boost the economy, raise living standards, and improve access to basic services.

PNG’s private sector has more than doubled over the past seven years, largely due to the combination of sensible monetary and fiscal policies and structural reforms in financial services, telecommunications and aviation to boost business investment and encourage economic diversification.

The recently released 2013 National Budget foreshadows a significant scaling up of funding to priority sectors of health, education, law and order, and infrastructure.

ADB aims to work together with the government to implement its planned infrastructure investments, private sector development, and regional cooperation. ADB is also committed to helping the government deliver rural primary health services.

Comments

[Phil Fitzpatrick]

"Economic growth must be accompanied by a narrowing of inequality to ensure future prosperity in PNG".

Sage advice from an Asian authority. I wonder why the Somare government, which was very pro-Asia, didn't take this advice on board.

The O'Neill government has shifted its focus from Asia to Australia and the USA. I wonder whether they would offer the same sort of advice?

I doubt it; the disparity between the rich and poor is growing by the day in both countries.

Come to think of it, it is doing the same thing in most of Asia, although the Chinese seem to be making some inroads towards urban/rural equality.

So it is probably hypocritical advice anyway.

But it does lead one to wonder what would happen if overseas companies operating in PNG were to make a song and dance about fixing equality.

Would the PNG government dance to the tune?

If the Asian Development Bank is to be believed that would benefit everyone.