The World Bank launched its flagship Country Economic Memorandum (CEM), titled ‘Pathways to Faster & more Inclusive Growth’ at the Hilton Hotel in Port Moresby today.
Present at the launch were World Bank Country Manager, Dr. Khwima Nthara, Country Director for PNG & the Pacific Islands Stephen N. Ndegwa and Senior Country Economist and the lead author of the report, Mr.
Ruslan Piontkivsky. In his opening remarks, the World Bank Country Manager Dr. Khwima Nthara said that the World Bank’s mission is to reduce poverty and boost shared prosperity by working with the governments of member countries by providing a guiding document to achieve goals.
“We provide resources for projects in various sectors but also in advisory services in terms of knowledge.” “And it is in this context that we have now come up with this Country Economic Memorandum.”
Dr. Khwima said that the World Bank in agreement with authorities will focus on 3 main areas that included improving macro and fiscal resilience, ensuring effective and more inclusive services in underserved areas and to encourage the private sector to grow and create more jobs.
“I have come onboard as World Bank Country Manager just 3 months ago and I am very eager to work alongside the government and other development partners in helping PNG achieve its Medium-Term Development Goals,” Dr. Khiwma said.
Special remarks of the CEM were provided by the Director for PNG & the Pacific Islands Stephen N. Ndegwa, who stated that that PNG had a big problem.
“In the last 40 years, Gross Domestic Product (GDP) per capita has grown by less than 1%.”
“This does not make you a wealthy country over many generations.”
“The CEM tries to understand why this is the case, provides an analysis of this and also provides some illumination of what actions can be taken to change this.” Mr. Stephen.
N Ndegwa added that PNG also has an opportunity to convert the resources that it has into long term capital that supports productivity in the economy.
“What the CEM helps you understand what can be done to achieve the goals of the MTDP, as well as some of the actions that the government is already taking that will help bring about these reforms,” Mr. Ndegwa said.
He further stated that they, at the World Bank are very optimistic about PNG.
“We are not here to be sorrowful about PNG, it is not a funeral, it is a party for the what the future can hold, if we all pull together to make the reforms that are needed but there is hard work to be done.”
Senior Country Economist and the lead author of the report, Mr. Ruslan Piontkivsky presented the CEM and explained the 3 pathways to achieve faster and more inclusive growth, which included;
1. Seeking (macroeconomic) stability.
2. Boosting (broad-based) productivity.
3. Expanding (human capital) endowment.
The launching of the Country Economic Memorandum was followed by broader discussions between the World Bank and key sector representatives.