political reviews • melanesia 413 would indebt the Northern Province the Political Economy of Mining in New for a long period, in an age when Caledonia. The Contemporary Pacific multinationals use debt to keep small 16:287–319. countries under their control while kol, Kanaky Online. camped out in front of the French NC, Les Nouvelles-Calédoniennes. Daily. High Commission and coordinated Noumea. to blockade Goro, strike at Tontouta pir, Pacific Islands Report. Airport, and slow down trash pickups and gas distributions, while oppo- nents erected their own roadblocks in ran, Radio News, Pacific Beat. counter-protest (NC, 15 Dec, 17 Dec 2005). On 24 December, the smsp rnzi, Radio International. decided to construct the Northern nickel plant with Falconbridge, who TP, Tahiti-Presse. Daily. Papeete. would completely finance the project with help from the smsp dividends, while the State approved smsp acqui- sition of title to Koniambo. The sln would receive title to Poum, but only after Eramet had lost its court battle to retain Koniambo. It remained to Papua New Guinea solidified its posi- be seen if inco would buy Falcon- tion in the region in 2005 by hosting bridge (NC, 24 Dec, 27 Dec, 28 Dec the Melanesian Spearhead Group 2005). Louis Kotra Uregei, former meeting in Goroka as well as the ustke president, argued that it was Pacific Islands Forum in . his union’s pressure that forced Both of these meetings were held in France to assure Jodar that it would the month of October. Despite its rep- support the Northern plant’s con- utation as one of the most dangerous struction by smsp and Falconbridge, countries to visit, many regional lead- including key financial contributions ers were impressed by the beauty of and guarantees. Neaoutyine, Uregei Papua New Guinea and its people. said, had his own vision of how to More significantly, Papua New solicit from France what Kanaky Guinea celebrated thirty years of inde- wanted (kol, 7 Jan 2006). The North pendence as a sovereign state. Many likes to negotiate patiently but relent- commentators noted that this journey lessly, while the unions keep up the has not always been pleasant, mainly pressure. due to the declining state of the econ- omy, infrastructure, and the provision david chappell of basic services such as health and education. However, Papua New References Guinea stands out as one of the few Horowitz, Leah. 2004. Toward a Viable former colonies that have managed to Independence? The Koniambo Project and maintain democracy. There have been 414 the contemporary pacific • 18:2 (2006) a few challenges to democratic rule in Somare in Parliament for not acting Papua New Guinea but constitutional on this (PNG Post-Courier, 21 April rule has always triumphed in the end. 2005). At the end of May, Wenge This is particularly notable given the asked the court to declare that Somare social and cultural diversity of the was constitutionally bound to appoint country. a deputy to fill the position, which Papua New Guinea has developed had been vacant for twelve months a political culture of surprise and (PNG Post-Courier, 30 May 2005). unpredictability. The year began with In February 2005, Sir Bill Skate the idea of a grand coalition pro- (who died in January 2006 after suf- posed by Prime Minister Sir Michael fering heart failure) decided to leave Somare. On the 31 December 2005 the Peoples National Congress he had “Year in Review” program on em tv founded, and join the middle benches news (Papua New Guinea’s national to support the government on its ini- television service), Somare announced tiatives. Sir Bill stated that the time to that his party, the National Alliance play petty politics was over and that (na), would go into a grand coalition he would concentrate on helping his with the Peoples National Congress electorate and the government. (pnc), a party founded by Bill Skate A Supreme Court reference was but later led by Peter O’Neil. The withdrawn by Chief Ombudsman Ila proposal emerged from the events of Geno, after he questioned the legality 2004, when the parliamentary system of a five-month adjournment of Par- fell into chaos as a result of members liament (National, 22 April 2005). of Parliament testing the new Organic Geno went to court after the govern- Law on Integrity of Political Parties ment, faced with an imminent vote of and Candidates. no confidence, adjourned Parliament Somare’s grand coalition idea did from 21 January to 29 June 2004. not go down well with members of Geno argued that the adjournment his own party. Don Polye, the deputy breached the constitutional require- leader of the National Alliance–High- ment that Parliament sit for at least lands Region, argued strongly that sixty-three days. He withdrew the taking the Peoples National Congress order after Parliament made up for on board would further weaken the the days that had been missed. The Opposition, and that the current long adjournment of Parliament is a ministers were performing exception- tactic used by governments to avoid ally well. A veteran of thirty years in votes of no confidence that have politics, Somare knew that his grand become the norm in Papua New coalition was unlikely to happen, like Guinea politics. similar initiatives that had foundered In a workshop organized by the in the past. Institute of National Affairs on the Three deputy prime ministers had theme “Understanding Reforms,” two been dumped in 2004, and by April national academics, Dr David Kava- 2005 no new appointment had been namur and Dr Henry Okole, argued made. mp Luther Wenge, the gover- that the reforms actually undertaken nor of Morobe Province, criticized by successive governments provided political reviews • melanesia 415 the least benefit to the economy, while Doctor’s Association started a fund- the ones promising the greatest raising drive to collect 10 million kina benefits were avoided. The academics to replace the country’s only radio- concluded that election years coincide therapy machine capable of detecting with budget blowouts because public cancer, which broke down a decade funds are deliberately channeled to ago. The government has not com- end up in the hands of members of mitted to assisting this very impor- Parliament and political parties. They tant cause. also pointed out that many politicians The public service was beset by a abandon reform packages in order to number of controversies during the get reelected; that members of coali- year. The first arose after incumbent tion governments can force a prime Attorney General Francis Damen’s minister to jeopardize reform efforts; contract expired in January 2005, and that there was often excessive opti- State Solicitor Isikiel Mesulam was mism about the expected outcomes of appointed to act in the position. reforms; and that many reform efforts Damen questioned the appointment failed to take into account the likeli- (PNG Post-Courier, 19 Jan, 20 Jan, hood of resistance from those nega- 21 Jan 2005), contending that proper tively affected (National, 23 March procedures had not been followed. He 2005). Allan Patience, professor of also pointed out that Mesulam was politics at the University of Papua under police investigation regarding a New Guinea (upng), argued that videotape allegedly containing porno- there was a long way to go before graphic materials. Mesulam was even- real reform could take place in Papua tually convicted for producing the New Guinea. Despite efforts to insti- video, and the appointment of a new tute reforms, the country has a poor attorney general was postponed. record of economic growth and is The Foreign Affairs Department ranked very low in global indicators also came under fire from politicians of human development (National, for encouraging corruption, especially 23 March 2005). in its Immigration Division. Two staff In May 2005, the prime minister members from that division were sus- announced that members of Parlia- pended after one received money for ment would receive a pay raise due to processing illegal working permits for increases in the cost of living (PNG foreigners, and the other was accused Post-Courier, 6 May 2005). It has of issuing seventy-eight illegal visas become common for members to (PNG Post-Courier, 6 May 2005). receive pay increases every year, while The Public Accounts Committee public servants are told that the econ- (pac) raised questions about the omy cannot afford raises for them. appointment of the auditor general, The pay award would be considered because the National Executive Coun- by the Salaries Remuneration Com- cil had apparently ignored the pac mittee, which is chaired by the recommendation and appointed some- Speaker of Parliament and includes one whose name was not even on the others who would benefit from the shortlist (National, 25 Feb 2005). pay raise. Meanwhile, the Women This appointment was also criticized 416 the contemporary pacific • 18:2 (2006) by Kevin Pamba in his weekly news- and communication systems; peace paper column. He noted that many of and reconciliation; weapons disposal; those appointed to senior positions in and the elections (PNG Post-Courier, the public service were from the prime 21 Feb 2005). The committee also minister’s province, East Sepik, result- met with the South Bougainville ing in what Pamba termed “the Sepik Council of Elders. This visit began a Tsunami” (National, 8 March 2005). close working relationship between A similar avalanche of appointments the national government and the of people from one part of the coun- Bougainville leaders toward the insti- try had occurred during the term of tution of the autonomous government Prime Minister Bill Skate. in Bougainville. The Public Accounts Committee In preparation for the election, also uncovered massive fraud and scheduled to begin on 20 May, work corruption activity in the Public Cura- on the common roll started in March. tor’s office. The committee stated that Many of the new enrollments were this office did not maintain proper from the no-go zones, indicating peo- accounting records for the millions of ple’s willingness to participate in the kina in assets of deceased people for political process. Ten international which it was responsible (National, observers from the United Nations, 14 April 2005). According to pac the Commonwealth, the Pacific Islands Chairman John Hickey, “We are Forum Secretariat, as well as Aus- dealing with a very serious matter of tralia, Japan, and New Zealand were theft, misappropriation, mismanage- invited to monitor the elections. ment and fraud of deceased estates Leader of the Opposition Peter and a thorough investigation needs to O’Neil challenged the idea that Bou- be carried out” (PNG Post-Courier, gainville should get autonomy, claim- 14 April 2005). ing that there would be chaos and In February 2005, the government fragmentation if other provinces were began preparations for the historic to follow the . O’Neil him- election on Bougainville that would self was pushing for the National pave the way for a new Autonomous Capital District to be given the status Bougainville Government (abg). The of a province (National, 1 March process began with the review of elec- 2005), and leaders from East New toral boundaries in Bougainville sup- Britain Province were adamant that ported by the Papua New Guinea the arrangement given to Bougainville Electoral Commission (National, 3 should also be given to them. Never- Feb 2005). A high-powered bipartisan theless, they have pledged total loyalty committee led by Inter-Government to the government of Papua New Relations Minister Sir Peter Barter Guinea. held talks with senior members of the A few months before the elections Bougainville administration. The Francis Ona, who had initiated the issues discussed included Francis crisis in 1988, made public appear- Ona’s Me‘ekamui movement and their ances in Arawa and Buka. Ona had “no-go zones”; rehabilitation of dis- been living in the no-go zone for six- trict administration centers, roads, teen years and this was the first time political reviews • melanesia 417 that he had come out of hiding. Dur- and many members of the Me‘ekamui ing his first day in public he reiterated faction also took part in the voting. that Bougainville was independent, According to the leader of the team of that there was no need for autonomy international observers, Ratu Epeli and elections, and that Australia was Nai-Lati Kau, the election was well not welcome in Bougainville (PNG prepared and well conducted. With Post-Courier, 23 March 2005). Gov- the wide publicity, the process was ernor for Bougainville John Momis credible and those who participated expressed regret over Ona’s call to were motivated to vote freely remove Australian and Papua New (National, 30 May 2005). Guinea police from Bougainville, and On 5 June, Joseph Kabui was argued that the people of Bougainville declared the duly elected abg presi- were committed to the peace agree- dent. Kabui polled 37,928 votes, beat- ment and wanted the autonomous ing rival Momis, who polled 23,861. government election to be held with- Soon after the declaration of the out delay, so that they could deal with presidential winner, Momis disputed the issues of good governance, devel- the election results and expressed his opment, security, and the efficient desire to seek legal advice. Momis provision of services (PNG Post- claimed that there had been massive Courier, 24 March 2005). foul play, especially in Central and By April, it became clear that John South Bougainville, where people Momis, the longest-serving regional voted more than once. Also, the member for Bougainville, would number of voters did not correspond resign his seat in Parliament and con- with the number of eligible voters on test the elections for the Autonomous the common roll. However, Momis Bougainville Government. His princi- withdrew his official complaint in ple opponent was Joseph Kabui, who July (National, 22 July 2005), a move had been the provincial premier when that was welcomed by many on the crisis began. In an emotional Bougainville. atmosphere in Parliament, Prime A chapter in the recent history of Minister Sir fought Bougainville came to a close on 24 back tears to farewell John Momis July when Francis Ona, the self-styled after thirty-three years of service. leader of the Me‘ekamui Republic, Describing him as a visionary leader died suddenly in his village. Ona’s who always followed his beliefs, death will eventually result in a new Somare praised Momis for his efforts sense of direction for Bougainville. in shaping the national constitution, But this will come slowly, and only and helping him bring democracy to after his followers realize that the only Papua New Guinea. Momis told option is to work with the Autono- Parliament that he had always mous Bougainville Government and believed that power and decision President Kabui to bring lasting peace making should be brought closer to to the island. the people. Toward the end of the year it was abg voting started on Friday, 20 discovered that a number of Fijians, May 2005. The polling was peaceful mostly former military officers, were 418 the contemporary pacific • 18:2 (2006) in Bougainville at the invitation of two countries. Fiji’s foreign affairs Noah Musingku, the head of a failed and external trade minister described money-making scheme called U-Vis- Papua New Guinea as a “Pacific tract. Apparently Musingku did not Tiger” in terms of trade and economic trust Bougainvillians and had development (PNG Post-Courier, 16 attempted to recruit individuals from March 2005). other parts of Papua New Guinea, as Diplomatic relations between well as Fiji and , for Australia and Papua New Guinea this scheme (PNG Post-Courier, 13 hit bottom when Prime Minister Dec 2005). The Fijians were said to Sir Michael Somare was searched by be carrying out military exercises at security personnel at the Brisbane air- Tonu in the Siwai District, South port. Somare was on his way back to Bougainville (PNG Post-Courier, the country after a meeting in Auck- 9 Dec 2005). At the end of the year land with leaders from other Pacific efforts continued to expel them. countries. On his return to Papua Papua New Guinea took a further New Guinea, Somare expressed con- step in cementing its ties with Japan cern about the treatment he received, through a high-powered ministerial and there were numerous public visit to Japan led by the prime min- protests in Port Moresby and Lae. ister and a number of his senior min- A petition was delivered to the Aus- isters. The prime minister met with tralian High Commission in Port Japanese leaders, including politicians, Moresby, and High Commissioner business leaders, and the emperor. Michael Potts was summoned to the During this historic visit, Papua New Foreign Affairs Department (National, Guinea expressed its continued sup- 30 March 2005). However, the Aus- port for Japan in international forums. tralian government refused to make According to Prime Minister Somare, an official apology, stating that this Japan has the market and technology was a routine check. In response, the while Papua New Guinea is blessed PNG government cancelled a high- with the abundant natural resource level meeting between the two coun- and agricultural potential to supply tries on an aid package to Papua New the Japanese market. Japan is Papua Guinea. New Guinea’s second largest aid Despite calls by members of Parlia- donor, providing some 120 million ment such as Luther Wenge to sever kina annually. relations, the Australian government In March 2005, the government allocated an estimated a$492 million also signed a treaty with the Solomon (1.247 billion kina) to Papua New Islands government to enhance devel- Guinea as official development assis- opment efforts in the region. The tance for 2005–2006. Aid for Papua treaty was in line with the long-term New Guinea and Solomon Islands objective to assist Solomon Islands comes under a new Australian gov- and to strengthen shared “Melanesian ernment policy known as the “fragile principles.” Papua New Guinea also states” initiative, which seeks to con- established closer ties with Fiji solidate aid, security, economic, and through trade promotion between the political aspects of the relationship. political reviews • melanesia 419

Australian Foreign Affairs Minister and order problems in the country Alexander Downer said Papua New (PNG Post-Courier, 28 April 2005). Guinea and Solomon Islands demon- According to the group, of the a$800 strated the problems facing “fragile million (2 billion kina) funding, the states”—a shift from the “failed amount for salaries and accommoda- state” label Australian politicians, tions for the Australian Federal Police journalists, and analysts have often was a$339.8 million (871.28 million used to describe the two countries kina), while a$394.59 million (1 bil- (PNG Post-Courier, 12 May 2005). lion kina) was for afp logistics and A new era of cooperation between operational costs. The report revealed Papua New Guinea and Australia that the Australian Federal Police resulted in the implementation of the would spend a$734.41 million (1.9 Enhancement Cooperation Program billion kina) on themselves, while (ecp), an aid package of 2 billion kina technical assistance for the Royal (a$800 million), fully funded by the Papua New Guinea Constabulary Australian government. An important amounted to only a$55.7 million (143 aspect of this program was the utiliza- million kina) (PNG Post-Courier, 28 tion of Australian police officers to April 2005). This information led to work alongside their PNG counter- a series of meetings held by police parts. This program was welcomed by officers in Port Moresby. The differ- the residents of Port Moresby, who ences in the working conditions of for the first time saw Australian Fed- local police officers and their afp eral Police (afp) officers patrolling the counterparts also came under fire in streets with their PNG counterparts. Parliament. Members of Parliament The police minister urged PNG police pointed out that Australian and local officers to work closely with the Aus- officers might clash (PNG Post- tralian police. Despite the deployment Courier, 29 April 2005). of the Australian assisting police in In another major blow to the pro- Port Moresby, crimes such as armed gram, PNG security officers accused robbery, car theft, and assault contin- the Australian assisting police of con- ued to increase in the city (National, ducting surveillance and intelligence 7 April 2005). The increase in these gathering on Papua New Guinea crimes is attributed to the fact people under the guise of the Enhancement feel that they will be treated more Cooperation Program (National, 29 nicely when arrested by the Australian April 2005). They also claimed that assisting police than by Papua New the Australian police had installed a Guinean police officers. satellite link at the operation room at By April there were signs of dis- the Boroko Police Station without the content with the assistance package approval of the police commissioner. among Papua New Guinea police In early May, following a meeting officers. aid Watch, an activist group attended by 300 police officers, an monitoring Australian overseas aid ultimatum was given to the police and trade policies, reported that a commissioner to remove the Aus- very small portion of the ecp money tralian assisting police from the coun- would actually be used to combat law try. Responding to the ultimatum, the 420 the contemporary pacific • 18:2 (2006) prime minister called for a review to Despite the removal of Australian ensure that the ecp policing com- police officers from the country, other ponent was working effectively aspects of the Enhancement Coopera- (National, 9 May 2005). However, tion Program remained in place. Some the afp review had to wait, pending Australians were not affected by the the legal challenge to the Enhance- court ruling and continued to work ment Cooperation Program in the in various government departments Supreme Court instituted by the (National, 20 May 2005). outspoken Luther Wenge. The discussion of a new ecp On 13 May the Supreme Court arrangement began immediately after handed down a landmark decision the court ruling. The police and for- when it ruled that the use of the Aus- eign affairs ministers were both com- tralian assisting police in Papua New mitted to renegotiating the program, Guinea was unconstitutional (PNG and a cabinet decision gave full Post-Courier, 16 May 2005). A five- authority to the police minister to judge decision led by Chief Justice Sir pursue the police aspect of the agree- Mari Kapi ruled unanimously that ment (National, 12 Aug 2005). key sections of the ecp Act relating to The provision of basic education the immunity for designated/related has been an ongoing dilemma for the persons were unconstitutional. The government. In the Education for All ruling meant that the officers had to Global Monitoring Report released by stand down until the two govern- unesco in 2005, Papua New Guinea ments made other arrangements. ranked 102 out of 127 countries. Many inside and outside observers Figures from the 2000 national were dismayed by the decision. Sir census showed that only about 40 indicated that the percent of the primary school aged government would make the neces- children were attending school at that sary changes. The Australian foreign time. In March 2005, the PNG Edu- affairs minister expressed his disap- cation Department launched its pointment, but said he would sit with national education plan for the next the PNG government and work out ten years. The plan calls for the edu- what could be done next. Minister for cation system to provide children Internal Security Bire Kimisopa, who with skills rather than prepare them was behind Australia’s Enhancement for tertiary education. The policy Cooperation Program from the very deliberately targets the thousands of beginning, also expressed his disap- young men and women who may not pointment. Accepting the decision of make it past years 8, 10, and 12, and the court, the minister stated that who thus often join the growing both governments have to go back to unemployment numbers—hopelessly the drawing board. upng Professor lost and dependent on parents and Allan Patience argued that the deci- relatives in the cities and towns (PNG sion would rock the very foundations Post-Courier, 17 March 2005). of PNG–Australia relations and that The tertiary education system was the damage could be irreparable hit hard in 2005 when the staff and (PNG Post-Courier, 16 May 2005). students at the University of Papua political reviews • melanesia 421

New Guinea protested against the tackling pressing issues including administration of the university. A housing, pay, communication, logis- work stoppage of two weeks occurred tics, and uniforms (PNG Post- after staff demands for agreed wage Courier, 23 Feb 2005). increases were ignored. The admin- A highlight of 2005 was the estab- istration continued its hard-line lishment of a Guns Control Commit- approach even after the staff went tee headed by retired General Jerry back to work. The leaders of the two Singirok. Traveling to most parts of staff unions and a number of senior the country to collect information, academics were targeted by the the committee heard strong calls to administration, and nine staff mem- immediately address the problem of bers were asked to show cause why illegal firearms. In Eastern Highlands they should not be terminated. Province it was discovered that many The student protest began in July people have been killed during tribal and lasted almost a month. Their fights by guns (PNG Post-Courier, demands focused on the grading 7 March 2005). In Mt Hagen the system used at the university. The committee heard from a guns and administration treated the students drug dealer that guns are smuggled the same way that they treated the into the country in 200-liter gas staff and this prolonged the protest. bottles and 44-gallon oil drums It was only after the intervention of (PNG Post-Courier, 4 April 2005). the acting minister for education that This informant was ready to reveal the students went back to class. The names of more than one hundred minister appointed a committee illegal gun buyers. headed by Dr Thomas Webster, In the Southern Highlands, the director of the National Research committee heard that high-powered Institute, to look into the allegations weapons were used in tribal fights, made by students and staff. and that every tribe and clan was In February 2005, the Australian amassing guns in preparation for the newspaper The Age claimed to have 2007 elections. The committee was uncovered links between sixteen of also told that the leaders themselves Papua New Guinea’s most senior are arming the people. A study con- police officers and Asian criminals ducted by Professor Philip Alpers of implicated in people smuggling, the University of Sydney uncovered money laundering, prostitution, illegal that approximately 2,450 factory- gambling, fraud, and theft. Police made firearms were being used by Minister Bire Kimesopa said that the criminals, tribal fighters, and merce- report was credible and acknowl- nary gunmen to wreak havoc in edged the existence of an organized Southern Highlands Province. Pro- crime syndicate involving some senior fessor Alpers said that most of the members of the police force (PNG destructive firearms used in crime and Post-Courier, 21 Feb 2005). The min- conflict in the province had been sup- ister argued that the growing culture plied by PNG soldiers and police. of corruption in the police force was The fight by government, civil a result of past governments not society, and foreign donors to address 422 the contemporary pacific • 18:2 (2006) the hiv/aids epidemic gained Roll-out program. The program is momentum in 2005. unaids Execu- designed to ensure that long-neglected tive Director Dr Peter Piot visited the districts obtain basic government country and noted that the 3 percent services such as police, district magis- infection rate was high compared to trates, banking, and postal services. other countries in the Pacific and East By the end of 2005, more than ten Asian region (PNG Post-Courier, 21 districts throughout the country had Feb 2005). The number of women benefited from this program. getting infected was also high, which The Somare government also has serious economic and social launched the Medium Term Develop- implications. Since 2001, more than ment Strategy Plan: 2005–2010. Pro- half of the 107 teachers who died moting the government’s program for while on duty suffered from hiv/aids recovery and development, the plan (National, 31 May 2005). The has three interrelated objectives: good National Superannuation Fund Lim- governance, export-driven economic ited reported that 90 percent of death growth, and rural development and claims relating to hiv/aids were poverty reduction to be achieved from the Highlands Region (PNG through empowerment of the people. Post-Courier, 10 June 2005). It is a product of extensive consulta- The fight against hiv/aids was tion with the provincial and local boosted by the establishment of a new level governments, the private sector, organization called Igat Hope, made community organizations, and ordi- up of people living with the disease. nary Papua New Guineans (PNG Dr Banare Bun, chairman of the Par- Post-Courier, 10 March 2005). Prior- liamentary Committee on hiv/aids, ity areas for the next five years are the urged people to make it their business rehabilitation and maintenance of to fight against the disease. Only transport infrastructure, promotion when there is talk about sexuality of income earning opportunities, basic and reproductive health will society education, development-oriented be able to address the problem (PNG informal adult education, primary Post-Courier, 23 Feb 2005). The health care, hiv/aids prevention, and Australian government pledged its law and justice (PNG Post-Courier, continued support to fund the PNG 28 April 2005). government’s effort to fight the epi- The plan was not without its demic. AusAID head John Davidson critics, and Professor Allan Patience said hiv/aids was the single biggest described it as “a feel good plan” threat to Papua New Guinea (PNG that did not address many important Post-Courier, 17 March 2005). Two issues—including disaster manage- popular Rugby League players from ment, corruption, globalization, Australia, Mal Meninga and Paul unemployment, and population Harragon, visited schools and settle- growth—that could have a huge ments carrying the messages of the bearing on the economic and social dangers of the disease in society prosperity of the country (PNG (National, 10 May 2005). Post-Courier, 9 May 2005). A major initiative of the Somare The forestry sector again came government was the District Treasury under scrutiny in 2005. Minister for political reviews • melanesia 423

Forests Patrick Pruaitch came under 16 March 2005). The United Nations attack by the member for Huon Gulf, Economic and Social Commission for Sasa Zibe. Arguing that the minister Asia and the Pacific also praised the had allowed corrupt practices by Somare government for maintaining foreign logging firms, Zibe urged tight fiscal discipline during 2005, Pruaitch to resign (PNG Post-Courier, which resulted in a surplus of 1.1 per- 16 March 2005). Pruaitch’s proposed cent of the gross domestic product amendment to the Forestry Act was (PNG Post-Courier, 12 May 2005). opposed by provinces that have log- In June, the PNG Treasury secre- ging companies operating in them tary reported that the economy would (PNG Post-Courier, 5 May 2005). grow by a projected rate of 3.4 per- The governors for Western Province cent. The economy had grown by 2.8 and Gulf Province argued there was percent in 2003 and 2.6 percent in nothing wrong with the act as it 2004 (National, 5 July 2005). Garth stands, and that any amendments McIlwain, managing director of the must take into account the interests Bank of the South Pacific, stated that of the people and not just that of the the PNG economy is experiencing its government (PNG Post-Courier, 13 best conditions in the thirty years May 2005). Members of Parliament since independence because of a sense also raised questions about how the of maturity in leadership (National, prime minister would reconcile the 3 Oct 2005). proposed amendment with his push alphonse gelu for carbon trading as a solution to climate change problems. Markham mp Andrew Baing warned that References amendments to the Forestry Act The Age. Daily. Melbourne. would destroy the country’s forest PNG Post-Courier. Daily. Port Moresby. resources. Despite all the criticisms, Parliament passed the amendments The National. Daily. Boroko. during its sitting on 3 August. unesco. 2005. Education for All Global A major blow to the forestry sector Monitoring Report 2005: The Quality was the withdrawal of us$34.4 mil- Imperative. Paris: unesco. lion (112.4 million kina) by the World Bank for forestry and conser- vation project in the country. The Solomon Islands loan agreement was designed to help government force logging companies By the end of 2005 much of the to comply with forest and environ- public discussion in Solomon Islands ment laws (PNG Post-Courier, 23 focused on the general election sched- May 2005). uled for 5 April 2006. Many people The Institute of National Affairs hoped that this election would bring Council reported that it was pleased in leaders who would steer the coun- with the performance of the economy, try away from the path it had fol- noting that political stability had lowed in the last twenty-seven years encouraged both investment and of constitutional independence. Many consumption (PNG Post-Courier, were convinced that poor leadership