Don't believe the spin, our small businesses can do it
04 June 2019
CORNEY KOROKAN ALONE
PORT MORESBY – In an early statement, newly elected prime minister James Marape has pointedly emphasised a new policy orientation for small to medium sized enterprises (SME) whereby government contracts worth K10 million will be reserved for PNG-owned companies.
The discussion that follows is a contribution towards shaping that policy debate.
It is a fact that there are government subsidies and protectionism in all economies of the world.
The United States government grants subsidies and tax exemptions to most of their conglomerates in nearly every industry. This is done deliberately through the federal budget.
Australia is no exception, especially in its agri-industry sector. It has a Foreign Investment Review Board that plays the gatekeeping role, filtering what investment to allow and what to decline and operating in lock-step with Australia’s meticulous immigration and foreign visa policies.
The policies may have a different names and acronyms to deceive public perception, but when you flip the pages you’ll find the DNA of protectionism plastered all over the place.
Some Papua New Guineans cover themselves with the old excuse that we do not have the required skill sets, capital exposure, creditworthiness, attitude to work and an endless inferiority-infused list.
Such fallacious notions lend themselves to the scale of capital flight the country has experienced in our almost 44 years of statehood.
Whose lecture notes ever indicated that a petrol station is a complex undertaking? How does one cultivate experience and know-how when citizens are continually seen and tagged as incapable?
Are our sons and daughters unfit to sit in the same lecture rooms of the foreign direct investors' children to learn the fundamentals of business?
An SME policy document has had wide consultation across the length and breadth of PNG. It has been crafted to capture the aspirations and frustrations experienced by many a budding ‘SMEPNGPreneurs’ in the country.
There is much knowledge and capital available and willing investors everywhere for the right kind of investment but not for every piece of so-called foreign direct investment.
The fears expressed in a recent article by the University of PNG’s Win Nicholas are not a novelty.
They have been the usual discourse in our country for eons reflecting against such courageous ambitions as the SME policy.
My view is that you should judge us in 10-15 years. Meanwhile, Air Papua New Guinea with its majestic bird of paradise has already left the tarmac. It's in flight as we speak.
Astute and thinking observers of world events fully understand that there is a scaremongering that surreptitiously guards industries and manipulates public media to paint local entrepreneurs as not-up-to-it. This is not a new narrative.
The labelling of native citizens as poor and needing handouts whilst fencing off opportunities in favour of these ‘investors’ own ilk is a documented reality.
They are alarmist over unfair trade practices and resort to international treaties and global organisations (staffed by their cronies) and seek to present an innocent and even helpful face to us. That is a global trend. We know it.
I must strongly urge prime minister Marape and his to be minted trade & industry minister and foreign affairs minister not to backpedal and pay attention to scaremongers' chaff.
PNG encourages you gentlemen to move forward with courage. The saboteurs’ rocking and buffeting must be brought to naught. The country is behind you with confidence.
Use the coveted political capital you have recently garnered to usher in bold and transformative policy changes. There should be no room for further windy chats with the Sanballats and Tobiahs of this world.
We certainly face challenges in infrastructure, especially in the energy sector, but they are not roadblocks. It's comforting to appreciate that, when they are viewed from an opportunity angle, they hold so much promise.
State-owned enterprises are especially requested to develop products and services targeting PNGSMEPreneurs with features and subsidised rates - including below-the-line offers to drive the ambitious and achievable target of 500,000 SME businesses by 2030. The days of cowardice must end.
Making PNGSMEPreneurs a purposeful core agenda is definitely a smart branding strategy.
It can be done. We must choose to believe. Now is the time to believe. We must be passionate and deliberate about this. This is our one and only country - beloved Papua New Guinea.
All arise, sons and daughters of Papua New Guinea. Write and sing your PNGSMEPreneurs' songs. The rhythm that accompanies such songs is the stuff that makes a country tick and will cause critics and believers alike to pay attention.
The world is watching.
Cynics and naggers like the Sanballats and Tobiahs of this world will have their day but if a captive with a bold vision was able to forge the resources from both with in and outside the nation, and was able to rebuild the walls of a defeated nation from ashes, we can build the nation, by harnessing the resources we have with bold vision and daring courage.
Posted by: Simon Davidson | 04 June 2019 at 07:56 AM