My Photo
Blog powered by Typepad
Member since 02/2006

« Just Me | Main | The informal, hardly observed migration of PNGns to Australia »

05 June 2018

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Apologies for the delayed response.

Gabriel - thank you for your comment. The impacts of the PNG LNG project are built into the projections of PNG Treasury and the IMF already - about K10 billion is being directly added to the GDP measurement in 2018 because of the project.

As I discuss elsewhere (7 June article), however, there are very adverse "resource curse" policies are undermining these benefits.

The PNG international bond is only a form of financing - it will not directly increase GDP. So it is very difficult indeed to explain the gap between the Prime Minister's comments and official figures.

Michael - good question. This is not currently measured.

As Keith correctly indicates, GDP is a measure of the value of all production in PNG (one can measure GDP also according to income and expenditure, but PNG stopped doing this in 2006).

The production method of GDP does not directly take into account how this production is financed - so there is no difference for GDP between re-invested profits or new loans (there is an indirect measurement in financial services - but this only covers the work done by the banks, not the value of the loans themselves).

We can see some impacts through the balance of payments if the loans are from overseas.

Generally, PNG suffers from poor statistics which means it is very difficult to answer interesting questions such as yours which goes to important issues such as the "net wealth" of the PNG economy.

Hope this helps.

Daniel - Sadly there is no mention for Facebook addicts of PM Ben Netanyahu facing quite a few charges of corruption.

I think the time for boasting of nuclear weapons should be long gone. After all would Israel drop any of its nuclear weapons on nearby Amman or Beirut with resulting fallout? I don’t think so.

Also remember so many nuclear tests by Britain were conducted on mainly Australian land or on Pacific islands as were nearly 200 French tests. The USA conducted over 100 Pacific nuclear explosions that included 43 tests in Enewetak Atoll (once called Eniwetok).

It should have been possible after decontamination period for any families originally from that island to get back home in the late 2020s but in November 2017 the ABC reported that rising sea levels caused by climate change are seeping inside the once secure concrete dome, causing radioactive material to leak out...into the Pacific Ocean

The total of expenditure on these horrendous weaponry by the 9 nuclear nations is a blot on humanity especially for the lives of the poorest hundreds of millions living below the poverty rate with little access to clean water, healthy diet, reasonable education and good healthcare.

The Stockholm International Peace Research Institute (S.I.P.R.I.) claimed the total world military expenditure for 2015 was: US $1,760-Billion! Shame on all of those allowing such military expenses.

Finally despite all the wonderful benefits of living in Israel over half of the World’s Jewry live voluntarily overseas. With almost as many Jews in the USA as back in Israel. Guess they like the hurricanes and snow.

PM Peter O'Neil is the father of deception so do not believe him. He does not understand what he says. The numbers he gave, he does not understand himself.

PNG faces a huge economic crisis, no value for the kina we have in our pay packets let alone the business partners' income and profit.

We need a change in leadership. The answers are in the hands of the MPs who support the PM and PNC.

Then we can talk about improving the economy. Without change in the political leadership of PO, the economy cannot be improved..

Here is how the prime minister of Israel Benjamin Netanyahu leads his people using facts and figures to give them hope and strength. Its making the rounds in PNG – on Facebook of course.
___________

…Only 70 years ago, the Jews were taken to slaughter like sheep.

60 years ago - no country. No Army. Seven Arab countries declared war on the small Jewish state, only a few hours after its creation! We were 650 Jews against the rest of the Arab world!

NO IDF (Israel Defense Army). No powerful air force, only brave people with nowhere to go. Lebanon, Syria, Iraq, Jordan, Egypt, Libya, Saudi Arabia all attacked at the same time. The country that the United Nations gave us was a 65 % desert. The country is out of nowhere!

35 years ago! We fought the three armies most powerful in the middle east, and we swept them in six days. We fought against various coalitions of Arab countries, which had modern armies and many Soviet weapons, and we have always beaten them!

Today we have: a country, an army, a powerful air force, A State-of-the-Art Economy, which exports millions of dollars. Intel - Microsoft - ibm develops products at home. our doctors receive awards for medical research.

We make the desert bloom, and sell oranges, flowers and vegetables all over the world. Israel has sent its own satellites into space! three satellites at the same time!

We are proud to be at the same rank as: The United States, which has 250 million inhabitants, Russia, which has 200 million inhabitants, China, which has 1.3 billion inhabitants; Europeans - France, Great Britain, Germany - with 350 million inhabitants.

The only countries in the world to send objects into space! Israel is now part of the family of the nuclear powers, with the United States, Russia, China, India, France, and Great Britain.

Passover was celebrated; Let's not forget what this is about. We survived Pharaoh, we survived the Greeks, we survived the Romans, we survived the inquisition in Spain, we escaped the pogroms in Russia, we survived Hitler, we survived the Germans, we survived the Holocaust, we survived the armies of seven Arab countries, we survived Saddam. We will survive the enemies present

Think of any time in human history! Think about it, for us, the Jewish people, the situation has never been better! Then let's face the world,

Let us remember: all nations or cultures who once tried to destroy us, no longer exist today - while we still live! Egypt? The Greeks? Alexander of Macedonia?, The Romans? (Does anyone still speak Latin these days? ), The Third Reich? - And look at us, The Bible Nation, The slaves of Egypt, We are still here.

And we speak the same language - then, and now! Arabs don't know yet, but they will learn that there is a God. As long as we keep our identity, we are forever. So forgive us for not worrying, not to cry, not to be afraid. Things are fine here. They could certainly get better.

Never sleep or sleep the guardian of Israel! Yahweh God of Abraham, Isaac and Jacob.

Top heavy ratio.

The prime minister is deliberately misleading the nation.

How can a nation sinking under the burden of massive debt, failing infrastructure and mounting social ills experience economic growth?

What is the GDP value to PNG local economy after loan repayments?
________

GDP is the total kina value of all goods and services produced in the PNG economy. Debt appears as a ratio to GDP not as part of it, but I'll leave it to Paul Flanagan to take my rapidly fading economics learning further (or issue a quick corrective) - KJ

Thank you Paul Flanagan for you continued expert insight into state of the PNG economy.

Is it possible that the prime minister's figures are influenced by the Papua LNG project and the PNG international bond offering?

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)