Why Papua New Guinea failed in its sovereign responsibilities? The Government legislated against land and resource owners through passage of the PNG Constitution in 1975 in the control of Natural Resources. I propose for a 50% equity participation in natural resource exploitation through the Papua State Government in future resource negotiations. The National Government can negotiate at 50% of the project at the national level while the State Government can negotiate for project development in the affected province and the affiliates at 25% breakeven. It is our resolve that assumptions or portfolio interests relative to 1) abundant natural resources, 2) strong economic growth and 3) liberal investment environment are mere academic transcripts or rhetoric from a net benefit analysis (if you consider calculations done for late Peter Donigi’s case; outflows from natural resources exploitation that stands at 67 Trillion USD as a case in point and it all sounds nice for the foreign shareholders but when we weigh this against actual change in rural areas, it is just a marketing tool to attract foreign investors. The people benefit is small.
Posted on: Thu, 15 May 2014 06:14:54 +0000
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