Comments

I would not use the word "dependency". If there was no aid it could be argued that there would be a corresponding decrease in the balance of trade. It is usually the hordes of foreign advisers who cause a large part of the trade imbalance. Nevertheless, your key point is correct. With the advent of "new development partners" especially from the asian sub continent there is more aid on offer now than ever before. So this means that the new challenge is not about the size of aid per se but how strategically it is used. That may be why FA wants to be closer to AusAID.

Ashlee, Amazing! Well done to highlight this - but - it would be good to hear your thoughts on how to address the need to re frame masculinity so that men don’t feel that violence equates to manliness. I think that is the key otherwise this comes across as men bashing - which it is not. Like you say there is an urgent need to work out why this happens. My own (totally non professional observation) was that the ability to be successfully violent was directly attributable to success / wealth and therefore manliness. Breaking that cycle will not be easy.

Biman & Nilesh, I could not agree more. Several years ago several of us (including Prof Prassad here) argued that Fiji's economy was not as fragile as some in the international community had hoped for / wished. The belief that the Fiji economy would imminently collapse (thereby taking the regime with it) was a bizarre hope / brief that it was almost impossible to argue against in the capitals of Canberra and Wellington even if you had facts on your side. Similarly, the Fijian economy is not as secure as some would believe now either. Your paper and blog correctly highlight several vulnerabilities. In addition is the lack of foreign capital. The challenge with asian investment seems to be that the cash somehow never ends up in your country - a phenomenon seen in many Pacific Islands. So as a result the NFA and therefore exchange rates can be vulnerable. It is true that many are simply waiting the election and foreign largess that may come with re-integrating into the international community - but it must always be borne in mind that Fiji is a very open economy. If Asia and Australasia slow down at the same time the structural faults highlighted by the authors could cause significant financial and economic problems. You chaps are right - there is a need to keep a close eye on poverty (and I would suggest inflation) as they may give a better picture of what is happening on the ground.

Dear Professor, This is well articulated and covers every aspect of SDP and has brought a lot of insights to me personally as a PNGean! My understanding of the country is that there is a huge mismatch of economic indicators and this issue just adds more icing to the cake!! Oh I was an IDEC student at Crawford. Thanks for the opportunity to study there. Cheers Helen

You have been very generous with statistics on increased utilisation but less so about the costs that have "increased". Please could you tell us by how much they have increased 10%? 100%, 1000% Is it true that costs have rocketed to the extent that the GoL even had to default on its payments last year?

Dear Sir, Thanks for this excellent article. PNGSDP, our company and foundation have been working and implementing the Eaglewood program in Western Province and beyond for several years now. 100,000 of trees have been planted, communities, support groups and land owners participate and fully support this project. This year we spent considerable time and funds and started talks to prepare for full commercialization over the coming three years. This project which is creating 100s of jobs and long term revenue now seems threatened. I hope the decision makers in PNG will soon continue this as time is running out for this project benefiting people and business WP so badly needs. Henry Heuveling van Beek.

Further to your comment and our response, we have just received from Boston University, the <a href="https://devpolicy.org/pdf/Endline-Study-PPP-Lesotho-Final-Report-2013.pdf" rel="nofollow">Final report</a> [pdf] for the “Endline Study for Queen Mamohato Hospital Public Private Partnership,” September 2013. We highlight the headline findings. The data show substantial improvements in clinical quality, use and patient satisfaction compared to the baseline. The death rate fell by 41%, the maternity death rate fell by 10%, the paediatric pneumonuia death rate fell by 65% and the patient satisfaction rate grew by 22%. Access to health services improved significantly. Inpatient admissions were 51% higher, as were outpatient visits, including filter clinics (126%) and hospital deliveries (45%). The report shows that costs have also increased. In the iron triangle of health care - cost, quality and access, it is a given that if you improve quality AND access, costs will increase. The key factor to consider is value - what you are buying for the amount being spent. It is clear that the PPIP in Lesotho has provided much greater value for the people of Lesotho. The report provides a demonstration of how transformational in quality and access a PPIP arrangement can be in a low income setting. Neelam Feacham and Jane Thomason

The findings of this report are sadly unsurprising. In the Papua New Guinea Medical Journal Volume 52, Number 3-4, September-December 2009, Focus Issue on Health Systems Strengthening, edited by Professor Maxine Whittaker and me - we review the achievements and lessons from the past decade and provide some leads on where, investments should be made to improve the outcomes of the health system. We emphasise the need to focus on five basic elements: 1. Effective interventions for main causes of morbidity and mortality; where and when required (these are well articulated in the national health plan) 2. Skilled health workers at the point of service who are able to provide those interventions (this is an issue that was identied in the 1980's and has received insufficient attention) 3. Essential logistical elements to enable the health worker to provide the effective intervention (drugs, medical supplies, equipment, transport, treatment guidelines etc) 4. Information, education and communications, and other health promotion initiatives andefforts directed at communities—to obtain their cooperation and acceptance of the interventions; and to support and empower their engagement in healthy behaviours 5. Population coverage. These remain the priority needs of the PNG health system.

The comments come from someone well versed with both side of the organizations affected by the new legislation. The arguments highlight how individual greed can lead to development of ill structured legislations which can affect PNG's reputations abroad and cash flow within. Lets hope the PM of PNG changes his dictatorial approach to governing and running the affairs of this country. People are now well aware who this person is, holding the highest executive position of the country.

Hi Tony, Thanks for your comment. I'm not sure that's Ben's position, but should the new government simply have no more than a well-intended desire to refocus aid on promoting economic development in recipient countries I shan't have any major complaints. I'm not so sure that economic development is the area where aid is most effective, but I certainly agree it's essential to reducing poverty. Similarly, I'm not terribly concerned about slower than planned increases in aid volume. Quality matters more than quantity. My worry (based on cross-country evidence, the New Zealand case, and the Coalition's actions thus far) though is that, rather than enlightened self interest and concern for aid that works, we will see more aid given solely for the purpose of benefiting Australian interests, and haphazard decision making more generally. Of course, I could be mistaken in my worries. I certainly hope I am. We'll see. In the meantime, and this is the main point of the post, even if predictions are still hard to make, we do know what to promote, and what to lobby for, when it comes to good aid work. And it seems worth emphasising this.

Hi Terence / Jo Similar to Ben Day I believe the Australian government aid agenda is likely to be about fostering economic opportunities to drive development rather than a reactionary approach - here's poverty, let's do something about it. Whether this change is good or bad really comes down to ideology. There will always be instances of good or bad outcomes but rarely is it the case that one particular ideology is won over. We only have to look to our previous Prime Minister's mistaken prediction of the end capitalism to see this. When it comes to aid, the fact that there is debate/change indicates that there is no right answer accepted by all. Yes, the new aid agenda will be more aligned to Australia's interests but this is not necessarily bad for international development. Economic development can bring win-win situations that ultimately might be much more effective than other forms of poverty alleviation. Nor is the case that cuts to planned aid spending over the next 4 years is necessarily bad. There is some validity to the argument that aid spending was ramped up too quickly from an aid effectiveness perspective. Whilst on shaky ground, there still is consensus by the major parties on the 0.5% target. This target will only be delivered if voters are confident of the effectiveness of the aid program and, whether the aid community likes it or not, that it is in Australia's strategic interest. What is needed is careful evidence based analysis of the program to ensure that it avoids the many pitfalls you and Ben point out.

Very fascinating. Thank you for laying this issue out, as you highlighted the issue has gotten very little press.