IMF and World Bank Pressure on PNG Government: A Call for Strong Governance and Economic Reform
![Mr. Samson Komati discusses the pressure exerted by the World Bank (WB) and International Monetary Fund (IMF) on the PNG Government to implement reforms in exchange for loans. Mr. Komati criticizes the IMF and WB for their approach, highlighting that they have not historically transformed poor countries into middle or advanced economies. The closure of the profitable Porgera Gold Mine by the Prime Minister is cited as a costly decision, resulting in a significant loss of revenue for the State. He emphasizes the need for strong governance, reduction of budget deficits, investment in key sectors, and prudent financial management to improve PNG's economic outlook. Link to the full article: [Insert Link]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilfvHiiTdGJVpjeesBg0DAe-EYHDPTvAprvLPtjzq7UPnQRVdy8Oc3uK6WIXKdVlKHualCTvzJpdg4AiNtp0XrNK8YlahPpRhNFkNPDPM2TLMIoW8ydq6U4EXEUBh-aHuMDknzHdVtknV0Wq_6kipIS_J6KynLVmThc8pEZhtKr-SfjMR3FAeOrW_tNXw/s1015/1711405355690.jpg)
by Samson Komati.
Why is World Bank (WB) and International Monetary Fund (IMF) exerting pressure on PNG Government on to executive their conditions? It’s their modus operandi worldwide.
They give loans and demand reforms in government and get repaid their loan principals with interests. Is it the world of IMF and WB to fix PNG economy? No!
They have no track record of changing a poor country to become middle income or advanced country ever in world history. They are lenders alerting their monies with PNG.
They lent us K3.2 million which we could have generated from Porgera Gold Mine had the Prime Minister didn’t force the closure of the operating profitable mine.
PNG missed K5 Billion revenue to State coffers last 4 years because of one stupid decision to close it for some idea that we will own Porgera outright.
Some political decision by one or two greedy selfish politicians does cost PNG fortune to repay. We have not learn anything as yet from all the past mistakes by few politicians which ended up with our State paying for the losses and damages.
PNG is now locked into IMF and WB loan terms so we have no choice but to implement all the conditions of the reform program in state institutions and programs prior to release or the second and final tranches of the K3.2 Billion loan.
We actually do not need both IMF and WB in PNG of our politicians put their pride, ego, grandstanding and big men mentality aside and promote strong governance, cutting down on budget deficits, cutting down on loans, reducing our debt, invest heavily in SMEs and agriculture, tourism, fisheries and down streaming, cut down on the wasteful public spending (like globetrotting, hire cars, offices leases, etc) and living within our means.
Poor and incompetent political leadership will always yield bad outcomes, negative impacts and disastrous results in the economy and government.
Thank you.
Samson Komati
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Its good come and teach PNG how to manage a our economy because our leaders ineffective and careless in wasting scarce resources unnecessary..Just now this Pangu Government created 2 new Ministeries. Its sign of poor management when PNG in worse financial crisis
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