Economic Conditions

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By Taylor T.

Apart from conflict and peace, such a lot of modern vital public concerns are fiscal ones.Can U.S. financial management be sustained?Should we contain environmental and employee protections in exchange pacts?What, if any, are the uncomfortable side effects of minimum-wage laws?Is immigration reliable for the U.S. economy?What's the way to lower pollution?These forty eight lectures deal with six significant subject matters that disguise the full spectrum of coverage debate over our financial health and our destiny: the forces of competitionAmerica's workersinvesting in America's futurebudget and fiscal policiestrade and exchange-rate policya travel of the worldwide financial system.

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In terms of the broad structure of economic management, the post-colonial state pursued policies that were similar to those pursued by the colonial administration, remaining characterised by heavy reliance on private enterprise, virtually unimpeded free trade and with the more productive sectors of the economy being privately owned and dominated by foreign capital. By the end of the 1970s the emphasis of economic policy had largely returned from development to growth, though the Eight Aims remained the rhetorical basis of policy statements.

Thus PNG gained independence with an economy that had achieved a significant degree of diversity, but without either an ideological basis or a perception of difficult economic times ahead that might have led to concerted attempts to restructure the basis of development. Renegotiation of the Copper Agreement represented the high point of the nation’s ability to direct the structure of economic growth. Subsequently uneven attention was given to various areas of policy-making (such as controls over foreign investment), a situation common in other developing countries.

The report articulated three essential principles for ensuring that appropriate policies were followed. The first was ‘concentration of effort’; in order ‘to obtain the maximum benefit from the development effort, expenditures and manpower should be concentrated in areas and on activities where the prospective return is highest’. These were to be in the ‘large areas of good land which are relatively accessible and where development is relatively easy’ (IBRD 1965:35, 36). The administration’s principal role was to provide a climate favourable to economic growth, through the provision of services.

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