Poverty and Livelihood A look at Papua New Guinea A look at Papua - - PowerPoint PPT Presentation

Poverty and Livelihood

A look at Papua New Guinea A look at Papua New Guinea

Background

Population 7.6m Growth rate: 3.5% Capital City Port Moresby (345, 000) Currency PG Kina Poverty rate 37% Languages 850 (named the most diversified Languages 850 (named the most diversified

country in the world due to the number of languages spoken)

Main Languages: English, Tok Pisin and Motu

Papua New Guinea (PNG) is the largest and most populous country in the Pacific. After early colonial administration by Britain and Germany, and four years of Japanese occupation during WWII, PNG gained independence from Australia in 1975.

• Papua New Guinea, one of the poorest and most

isolated countries in the world, has been growing consistently in recent years. Papua New Guinea is rich in natural resources, such as oil, gold and copper.

• Natural resource extraction, the most important

sector of the economy, accounts for 60 percent of GDP and a large share of government revenues. GDP and a large share of government revenues. Agriculture is also important, since it employs up to 85 percent of the population. Revenues from natural resource exploitation have resulted in high government spending and a construction boom. Yet, as the country suffers from endemic corruption and lacks a functioning legal system, inequality has been increasing.

Source: tradingeconomics.com

Geography

Number of provinces - 22

Rugged 600 islands Resource rich Rugged Coastal & highlands Half of the island of New Guinea Comprises 5 regions: Highlands, Momase, New Guinea Islands, Papuan Region, Autonomous region of Bougainville Resource rich

What is poverty?

• Condition where people's basic needs for food, clothing, safe

drinking water, health care and shelter are not being met. Generally two types of poverty: (1) Absolute poverty is synonymous or the same as with destitution and occurs when people cannot obtain adequate resources (measured in terms of calories or nutrition) to support a minimum level of physical health. Absolute poverty means about the same everywhere, and can be support a minimum level of physical health. Absolute poverty means about the same everywhere, and can be eradicated as demonstrated by some countries. (2) Relative poverty occurs when people do not enjoy a certain minimum level of living standards as determined by a government (and enjoyed by the bulk of the population) that vary from country to country, sometimes within the same country. Relative poverty occurs everywhere, is said to be increasing, and may never be eradicated.

Read more: http://www.businessdictionary.com/definition/poverty.html

Poverty Cycle

Seemingly endless continuation of poverty.

• Once a person or community falls below a certain level
• f resourcefulness, a chain of events starts to occur

that tends to perpetuate the situation: progressively lower levels of education and training leading to lack of employment opportunities, leading to criminal activity employment opportunities, leading to criminal activity (such as sale of illegal drugs) for survival, leading to addiction, shattered health, early death, and breakup

• f family, leading to even bleaker future for the next

generation ... and so on. This cycle continues until someone intervenes by providing worthwhile means (not handouts) for people to climb out of destitution, and by ensuring children's health and education

Read more: http://www.businessdictionary.com/definition/poverty.html

Poverty trap

• Situation created by tax laws and income

related social security benefits that prevents people from climbing out of welfare

• dependency. If these people work hard and

earn more, they move into higher tax brackets earn more, they move into higher tax brackets and end up having even less disposable income than before. After trying several times, they generally give up and may accept the situation as their fate.

Read more: http://www.businessdictionary.com/definition/poverty.html

Is Papua New Guinea really poor?

The number one Sustainable Development Goal is to End Poverty in all its forms everywhere.

• Petra Arifeae, Program Manager of an NGO says “this made me think about what poverty

actually is. How does one determine poverty? How is poverty present in my country, Papua New Guinea? Is PNG really poor?

• I looked up the word ‘poverty’ and ‘poor’ in the dictionary. Poverty is described as ‘the

condition where people’s basic needs for food, clothing, shelter are not being met.’ The word poor is defined as ‘having very little money; not having enough money for basic needs.’ But is poverty only determined by not having enough money for basic needs? I don’t think so. Through the lens of the international community, PNG is seen as a poor nation, but also rich but corrupt. Rich in the sense of resources such as oil, gas and gold, rich for its fertile land but corrupt. Rich in the sense of resources such as oil, gas and gold, rich for its fertile land that produces fresh food. Corrupt, as not much of the resource industry profits and government funds are feeding back to the people of PNG. According to UNDP 40% of PNG’s population still lives below the poverty line.

• However, through the eyes of local villagers, Papua New Guinea is not regarded as poor. They

have the land to hunt, gather, cultivate and harvest produce. Through their gardens they are able to feed their family and still have surplus to share with relatives or sell at the markets. This allows them to earn enough income to buy clothing or other necessary utensils and

• tools. Most villagers have survived living this way for many years.
• So far so good you’d think – unfortunately not.

Is Papua New Guinea really poor? Cont.

• The majority of communities in rural and remote PNG are lacking access to

basic healthcare services and education as well as electricity to power their homes. There are a limited number of recognised schools and teachers to educate children and an inadequate number of health care facilities. The lack of these basic services means most communities have a low literacy rate, little to no knowledge about diseases or disease prevention, and have limited skills to get formal employment.

• In rural communities, people often walk for days to see a doctor. Sick women, or children

walk for more than a day to see a community health worker (not a doctor), who might not have adequate medical supplies or drugs to treat the patient. Or envisage no school or teacher in your community. Research shows that 600,000 children are currently not going to teacher in your community. Research shows that 600,000 children are currently not going to school in Papua New Guinea because of the lack of teachers or simply for not having a functioning classroom in their village. Walking to the next village is not an option.

• Urban drift is on the increase from their rural village to the promise of regional cities. Urban

drifters are often unskilled and have difficulty finding employment. They end up frustrated and displaced. Life in the cities is tough especially without money to survive. They become a burden to relatives and the government. All too often many end up living on the street or joining rascal gangs.

• Poverty is not only related to basic needs such as food, clothes and shelter. It is also linked to

the quality of life, having access to education and healthcare and with the prospect to earn a living.

• I see a great future for my country, but only if the PNG government, businesses and NGOs

work together with communities to improve the livelihoods and services for the people. Source: Petra Arifeae

Poverty analysis summary

• 1. There is no official definition of poverty in Papua New Guinea (PNG),

although the concept “poverty of opportunity” is often used, referring to a lack of access to education and health services and to income-earning

• pportunities. There are two different types of poverty: urban poverty and

rural poverty. In rural areas, poverty relates to the lack of access to services, including transport, education, and health infrastructure. Survey results2 show that, in 2001, respondents considered the proximate causes of poverty in urban areas to be the shortage of livelihood opportunities, including

• pportunities to earn cash and the lack of land on which to cultivate food

crops.

• There is evidence that many Papua New Guineans are resilient to income

shocks because they are able to respond by producing more domestic food staples and turning to traditional coping mechanisms, grounded in strong ethnic group links. However, groups that are particularly vulnerable to food security issues include landless populations living in settlements around provincial towns. In these communities traditional social systems are becoming stretched because of greater mobility and urban drift.

Source: World Bank update 2004, Country Partnership Strategy: Papua New Guinea, 2011–2015

Poverty Analysis summary cont.

• 2. In 1996, it is estimated that 30.2% of the

population lived below the national poverty line. Only 5% of those classified as poor are dependent on wage employment in the formal sector. Those under the national poverty line tend to have lower literacy rates and to depend heavily on agriculture for their rates and to depend heavily on agriculture for their

• livelihoods. Another important characteristic of

poverty in PNG is the large geographical disparities, which exist between and within provinces, districts and even local governments.

Source: World Bank update 2004, Country Partnership Strategy: Papua New Guinea, 2011–2015

Poverty Summary Cont.

• 3. Levels of access to basic services and income poverty

indicators show that poverty in PNG is likely to be more severe than in many countries at similar gross domestic product (GDP) levels. This can also be observed by comparing the GDP per capita, education, and life expectancy indexes of the United Nations Development Programme human development index (HDI).

• Education access is significantly lower in PNG than for other

countries with similar per capita GDP levels. Despite recent economic growth, PNG’s HDI position has dropped from 123 (out of 177 countries) in 2003 to 148 (out of 182) in

• 2007. Some of this is because increases in GDP growth do

not compensate for population growth, but some is due to lack of progress in health and education indicators.

Source: World Bank update 2004, Country Partnership Strategy: Papua New Guinea, 2011–2015

Lack of basic services…

Poverty rate 37% Poverty rate 37% Papua New Guinea life expectancy is: 62 for males and 65 for females

• Poverty in PNG: the Evidence from Research: There has been

considerable debate around the existence of poverty in PNG, increasing numbers of studies confirm that it exists. For many the situation is not improving and that by some measurements poverty in PNG is getting worse.

• The most recent analysis on poverty in PNG is based on the

National Household Survey of 1996. This estimates that

• verall 37.5 per cent of Papua New Guineans live in poverty,

and that rural poverty is almost double that of urban areas and that rural poverty is almost double that of urban areas (41.3 per cent compared to 16.1 per cent).

• Since independence in 1975, there have been five major

studies of rural poverty in PNG. This clearly show that over the years there has been very little change in the locations where the poor live. Research ratifies there is a spatial dimension to poverty in PNG: the most disadvantaged districts are remote and rural.

Source: Care PNG

Climate change and its effects

• Last year’s powerful El Nino brought drought and food insecurity to

millions of people and people were forced to cut down on meals and eat less variety are at risk of malnutrition.

Papua New Guinea was the worst country hit in the region An estimated 3 million people were affected with a projected 1.9 million of these in the highlands

• region. Communities relying heavily on farming are

suffering severe food shortages. Some communities say their food supplies will last two to three months.

Source Oxfam, PNG 2016

Corruption in Government

• A resource rich country but corruption, waste and

reckless financial and economic management by the O’Neil Government contributes to increasing poverty in the country.

• IMF is lending almost K1billion so commercial banks
• IMF is lending almost K1billion so commercial banks

– BSP plus two main foreign owned banks ANZ and Westpac – can prop up the bankrupt government of Peter O’Neil.

• IMF is a lender of last resort to failed economies,

shows how bad the nation’s economy and financial problems are Source: M. Passingan

Effects of corruption and Government mismanagement Effects of corruption and Government mismanagement

• As a result this debt will have to be repaid by the

Government at K1.5billion a year in interest

• This is more than it spends on health, education and

transport.

• Borrowings will increase the annual interest bill to at
• Borrowings will increase the annual interest bill to at

least K2.3billion.

• The debt is killing Papua New Guinean and making

life more difficult for ordinary Papua New Guineans.

• Food prices are endlessly rising
• Hospitals, health centres and rural clinics are unable

to buy medicines and other medical supplies

Source: M. Passingan

Effects of Government mismanagement Effects of Government mismanagement

• Teachers, health workers and other people

responsible for delivering essential services are being paid a fraction of their wages or sometimes they don’t get paid sometimes they don’t get paid

• Basic services are being affected drastically
• Increasing law and order issues: Gun violence

for cash

• Handout syndrome dependency
• Structural violence – Inequalities for women

Linking livelihood and food security at Ward planning (bottom up) Linking livelihood and food security at Ward planning (bottom up)

What are the policies?

• There are a number of government departments and agencies each with

their respective policies that are directly related to food security and

• livelihoods. Some of these are given below:
• The National Department of Agriculture and Livestock’s (DAL) National

Agriculture Plan 2007-2016 outlines strategies for improving food security and linkages with health, productivity and marketing, income generation and and linkages with health, productivity and marketing, income generation and poverty reduction, and improving women’s contributions to rural productivity.

• The Coffee Industry Corporation (CIC) sets standards that regulate the

industry, and that include freight subsidisation programs and extension.

• The Fresh Produce Development Agency (FPDA) supports the fruit and

vegetable industry and provides market information and technical extension services to growers.

Poverty and some connected issues

• Increasing family violence due to minimal income

generating opportunities

• Lawlessness – gun violence (armed holdups), gang

activities

• Land grabs from outsiders (foreigners) in exchange for

quick cash quick cash

• High drop out rates in schools, due to lack of school

fees

• Increased number of women in the informal sector (to

contribute to the family purse)

Livelihood of the people

• How do people survive in such a dismal environment?
• The majority of PNG’s population live in rural areas, largely

depend on agriculture for their livelihoods, working their land for survival. Islanders depend on sea produce to sustain themselves.

• Coffee and cocoa are the main cash crops, with half of the country’s

total workforce involved in their production, processing and sale. Despite its importance, the quality and productivity of Papua New Despite its importance, the quality and productivity of Papua New Guinea’s coffee has been declining, due in large part to a lack of replanting, limited incentives for smallholder farmers, and poor access to markets.

• The cocoa industry has been experiencing similar issues. The

Productive Partnerships in Agriculture Project (PPAP) which began in 2010 aims to combat these problems to improve the livelihoods

• f smallholder cocoa and coffee producers, and promote rural

development and poverty reduction more broadly.

Cont.

• The National Agriculture Research Institute (NARI) works

through community-based approaches to deliver extension to farmers on improved and alternative varieties, cropping methods, and appropriate technologies.

• The National Fisheries Authority (NFA) regulates the marine

resources industry and promotes fish farming as a key component for food security and improving the rural diet

• The Office of Climate Change and Development is the

coordinating body for all climate change related policies and actions in PNG, including the Climate Compatible actions in PNG, including the Climate Compatible Development Strategy for Papua New Guinea (2010) and the Climate Change Authority Act (2012)

• PNG’s Medium Term Development Strategy (2011-2015) and

Vision 2050 both have a focus on food security and income generation as part of improving human development.

Source: Care International, through its Integrated Community Development Project has linked Ward Development Planning to improvements in livelihoods and food security for remote, rural communities in Obura Wonenara District, Eastern Highlands Province.

Resilience

• Increase in the informal sector – people sell their wares at

designated areas or outside their homes

• In some places, traditional trading continues through trading

partnerships and or kinship connections

• Communities/clans into self-help projects
• Micro-finance facilities (Govt) assist communities and families
• Micro-finance facilities (Govt) assist communities and families

to run small business

• Cottage industries, agriculture and fishing ventures
• Short courses to run small businesses: people educating

themselves

• Out of pain and hardships, people continue to rise above their

situations…how long will they endure?

• NGOs and Churches are working tirelessly with communities

Churches response in PNG

• Churches in PNG play a major role in providing

basic services (health & education) to the urban and rural population

• Churches have long histories of implementing
• Churches have long histories of implementing

a range of development activities focusing on a range of issues, including gender, sustainable livelihoods, employment training, education, health and microfinance.

IMR’s work in PNG

Working in collaboration with United Church of Papua New Guinea and Evangelical Lutheran Church PNG, IMR currently offers capacity building trainings to ministers, lay workers, women and youth leaders on:

• Peace Building (Conflict analysis, Trauma Healing

and Conflict transformation) responding to needs

• Peace Building (Conflict analysis, Trauma Healing

and Conflict transformation) responding to needs within the country.

• Ending Violence against Women and Girls
• Pastoral Counselling
• Social Analysis

• As a concerned Papua New Guinean, I certainly hope

that the June elections will change leadership hence hopefully pave a better pathway and future for PNG. The people have the power to do that. The question is: Will they?

Tenkyu tumas!!