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Why is the PNG Government Crowding Out PNG’s Entrepreneurs?

Papua New Guineans complain incessantly about the state of services provided by the country's State Owned Enterprises (SOEs), such as PNG Power, Air Niugini or Telikom. The more informed Papua New Guineans argue for privatization or at the very least better private sector like management to solve the significant problems that have built up for so many years. However, despite this ever present dissatisfaction from the people, PNG’s SOEs are consistently among the worst performing businesses in the Sovereign State of Papua New Guinea. None of them operate profitably to provide an adequate return on equity to the people of PNG. The PNG Government has proven time and again that it is not capable to run businesses profitably yet we have seen over the last decade a new group of SOEs joining the ranks of the older aforementioned PNG Power, Air Niugini, Telikom etc. New entities such as Kumul Petroleum, Kumul Minerals, Dataco, Kumul Agriculture and Kumul Diwai have been set up to partici...
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WHY INFLATION IS A BIG PROBLEM FOR PAPUA NEW GUINEANS

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What is Inflation? According to the IMF inflation “is the rate of increase in prices over a given period of time”. Although inflation can refer to prices of specific products or services such as rice, petrol or airline tickets, it is typically referred to and discussed in public as a broad measure of the overall increase in prices that reflects the increase in the cost of living in a city, region or country. Inflation represents how much more expensive the goods and/or services on average have become over a certain period. Usually when the experts or government refer to inflation they talk about inflation from year to year, that is, how much prices increased in one year compared to the previous year. This is usually expressed as the percentage (%) increase in prices for a country as a whole. How is inflation measured? Inflation is commonly measured by regular periodic consumer price surveys, eg. every month or every 3 months, of a basket of goods and services that has been carefully s...
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First Blog Post

This is my first blog so, in the beginning, there will be lots of (hopefully) minor issues on structure, grammar and presentation which will be ironed out as I get more practiced. The aim of this blog is to practice my analyst skills which I used to employ on a day to day basis as a financial analyst but have not had reason to after having changed employment a few years ago. I will cover areas of personal interest generally in economics and finance in PNG and hopefully contribute to the depth of 'analyst coverage' in the country.  All views posted here, unless quoted from another source, are my owned formed upon my review and analysis of publicly available information. Nothing posted here constitutes professional advice, financial or otherwise.
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