SOUTH–SOUTH LABOUR MIGRATION in PAPUA NEW GUINEA: Which Workers Are Filling the Gap? Mariana S

OBSERVATORY ON MIGRATION OBSERVATOIRE ACP SUR LES MIGRATIONS OBSERVATÓRIO ACP DAS MIGRAÇÕES

SOUTH–SOUTH LABOUR MIGRATION IN PAPUA NEW GUINEA: Which workers are filling the gap? Mariana S. Cifuentes Montoya Rosa Sai’i Au

Anglo Pacific Research Ltd.

Research

An Initiative of the ACP Secretariat, Funded by the European Union ACPOBS/2013/PUB10 Implemented by IOM and with the Financial Support of Switzerland, IOM, the IOM Development Fund and UNFPA

International Organization for Migration (IOM) Organisation internationale pour les migrations (OIM) Organização Internacional para as Migrações (OIM) 2013 ACP Observatory on Migration The ACP Observatory on Migration is an initiative of the Secretariat of the African, Caribbean and Pacific (ACP) Group of States, funded by the European Union, implemented by the International Organization for Migration (IOM) in a Consortium with 15 partners and with the financial support of Switzerland, IOM, the IOM Development Fund and UNFPA. Established in 2010, the ACP Observatory is an institution designed to produce data on South–South ACP migration for migrants, civil society and policymakers and enhance research capacities in ACP countries for the improvement of the situation of migrants and the strengthening of the migration–development nexus. The Observatory was established to facilitate the creation of a network of research institutions and experts on migration research. Activities are starting in 12 pilot countries and will be progressively extended to other interested ACP countries. The 12 pilot countries are: Angola, Cameroon, the Democratic Republic of the Congo, Haiti, Kenya, Lesotho, Nigeria, Papua New Guinea, Senegal, Timor‐Leste, Trinidad and Tobago and the United Republic of Tanzania. The Observatory has launched research and capacity‐building activities on South–South migration and development issues. Through these activities, the ACP Observatory aims to address many issues that are becoming increasingly important for the ACP Group as part of the migration–development nexus. Documents and other research outputs and capacity‐building manuals can be accessed and downloaded free of charge through the Observatory’s website (www.acpmigration‐obs.org). Other upcoming publications and information on the Observatory’s activities will be posted online.

Document prepared by Mariana S. Cifuentes Montoya, Senior Research Consultant, and Rosa Sai’i Au, Anglo Pacific Research Ltd. This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the Secretariat of the ACP Group of States, the European Union, the International Organization for Migration (IOM) and other members of the Consortium of the ACP Observatory on Migration, the Swiss Federation or UNFPA. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher. Layout prepared by Pablo Escribano Miralles, ACP Observatory on Migration. ACPOBS/2013/PUB10 OBSERVATORY ON MIGRATION OBSERVATOI RE ACP SUR LES M I GRATI ONS OBSERVATÓRIOO ACP DAS MIGRAÇÕES

SOUTH–SOUTH LABOUR MIGRATION IN PAPUA NEW GUINEA: Which workers are filling the gap?

Mariana Cifuentes Rosa Sai’i Au

Anglo Pacific Research Ltd.

Foreword

At present there is little said about contemporary emigration to the Independent State of Papua New Guinea from neighbouring Melanesian countries. Therefore, this study aims to address this gap in the literature by examining the role played by three aspects of South–South Melanesian migration: The first aspect is the extent to which institutional factors have increased South–South migration between these three countries. The second aspect is whether or not international migration networks, such as formal public and commercial agencies, informal agents and kinship and traditional sociocultural relationships, have contributed to increased South–South migration. The third aspect is whether cultural/historical similarities have encouraged South–South migration between PNG, Fiji and Solomon Islands. Since the early 1990s, PNG has embarked on major gas and oil production, which has accelerated economic growth. Alongside this economic expansion, the formal employment sector has increased significantly. However, these new employment opportunities have highlighted the shortage of people with the necessary professional, technical and managerial skills to meet the needs of private sector employers. At the same time, high salaries and economic opportunities have made PNG a magnet for foreign labour. This foreign labour, according to the study, comes mostly from Asia due to the fact that Asian workers have a long-history of labour migration to the region thanks to access to capital and well-developed networks and their high productivity and low labour costs. In contrast, the study found that migration from neighbouring countries, such as Fiji and Solomon Islands to PNG have a minimal impact due to Melanesian historical factors, topography and institutional structures. Thus, the study argues that South–South labour mobility primarily comes from Asian countries rather than from neighbouring Melanesian countries such as Fiji and Solomon Islands. One of the Government’s main concern about this current increase in immigration, as the result of economic growth from the extractive sector, is the unsure future of all the highly skilled workers in PNG once the liquefied natural gas (LNG) pipeline is finished. This will mean that the need for these skilled workers will drop drastically, impacting on sectors such as the housing market. Therefore, it is important that other sectors are explored. For example, the study recommends policymakers in PNG to consider establishing training schemes that can increase the number of jobs available in rural areas and raise rural incomes. The study also recommends the Government of PNG iii to consider encouraging both circular and return migration of highly skilled PNG nationals. This could be achieved through taking specific actions, such as removing obstacles for return migration and establishing policies that encourage ‘transnationalism’, which will greatly facilitate the return of highly skilled nationals. Another key recommendation from the study is for countries in the subregion to act together, to streamline institutional systems, trigger policy dialogue and eventually increase circular labour mobility within the region. The findings of this study will be an important contribution to the analysis of the South–South labour migration policy framework and provides important insights into how to maximise the potential of labour migration in PNG and the region. Considering that migration research and the issue of mainstreaming migration into development planning are becoming increasingly important at the national level and have been recognized as such by the Migration and Development Working Group of Papua New Guinea, the present study is a good starting point for strengthening such a relationship in terms of labour mobility in Papua New Guinea. I am grateful for the work that the ACP Observatory on Migration has been spearheading, enabling us to take this Southern perspective into account.

Mr. Matthew Ndrewei Chair, Working Group on Migration and Development Acting Manager, Policy and Legal Branch PNG Immigration and Citizenship Service Authority Government of Papua New Guinea

iv Abstract

This study examines how Papua New Guinea (PNG) is integrating human mobility into its national and regional plans. In particular, the study explores three aspects (institutional factors, international migration networks and cultural/historical similarities) of South–South labour migration between Fiji, Solomon Islands and PNG. The methodology used for this study consisted of a literature review and in-depth interviews with government officers, academics, private sector representatives and migrants. The overall finding from this study is that migration from Fiji and Solomon Islands to PNG has had a minimal impact due to Melanesian historical factors, topography and institutional structures, among other factors. In turn, these factors explain why Asian labour mobility is more prevalent. Thus, the study argues that South– South labour mobility primarily comes from Asian countries rather than from neighbouring Melanesian countries such as Fiji and Solomon Islands. The main recommendations that come out from this study centre on fostering economic development in rural areas through rural training systems, fostering circular and return migration through migration policies and streamline institutional systems to support South–South migration between Melanesian countries.

Acknowledgements

We would like to thank Macmillan Brown Pacific Studies Centre for offering access to its library and providing references on migration in the South Pacific region. Also thanks to Maria de Vargas - a researcher of the ‘Migration, Gender and Social Justice: Connecting Research and Practice Networks’ project of the Institute of Social Studies, The Hague - for providing literature on migration theory. Mr Michael Gene, a consultant of the Department of Labour, was kind enough to provide additional Labour and Industrial Relations’ policy papers to the research team. Mr Wellington Navasivu made it possible for the research team to observe the meetings organized by the Melanesian Spearhead Group in Port Moresby. The Fiji High Commissioner in Papua New Guinea, Honourable Romanu Tikotikoca, provided valuable support for conducting fieldwork in Suva, Fiji. The staff of the ESCAP and ILO offices in Suva also gave their time and access to literature resources that were very useful for this study. We also acknowledge the important comments done by two anonymous peer reviewers. Finally, we would like to thank the people in PNG, Solomon Islands and Fiji who shared their time and experiences with us.

vii

Table of contents

List of acronyms...... xi Executive summary...... xiii Résumé analytique...... xv Resumo executivo...... xvii 1. Introduction...... 1 2. Methodology of the study...... 3 2.1 Research question...... 3 2.2 Objectives...... 3 2.3 Methodology, research design and analysis...... 3 2.4 Limitations...... 4 3. Literature review: Labour and migration trends in Melanesia...... 5 3.1 Attachment of Melanesians to land...... 7 3.2 Historical factors ...... 7 3.3 Poorly developed institutions...... 9 3.4 Summary of literature review...... 10 4. PNG labour and migration policies...... 13 4.1 PNG labour force ...... 13 4.2 Colonial and post-colonial labour policies...... 14 4.3 Contemporary labour policies ...... 15 4.4 Challenges facing PNG’s labour market...... 16 4.5 Labour mobility policy reforms ...... 19 4.6 PNG participation in labour mobility schemes...... 20 5. South–South migration among PNG, Solomon Islands and Fiji...... 23 5.1 Institutional Factors: Putting the MSG skills movement scheme in practice...... 23 5.2 Absence of networks: Limited labour mobility among Melanesian countries...... 25 5.3 Cultural/historical similarities between Melanesian countries...... 27 5.4 PNG’s labour market: Are Asian workers filling the gap?...... 28 6. Conclusions ...... 33 7. References...... 37 8. Appendix...... 43

List of acronyms

ACP Asia, Caribbean and Pacific ESCAP Economic and Social Commission for Asia and the Pacific GoPNG Government of Papua New Guinea ILO International Labour Organisation LNG Liquefied Natural Gas MTDS Medium Term Development Strategy MSG Melanesian Spearhead Group PACER Pacific Agreement on Closer Economic Relations PICTA Pacific Island Countries Trade Agreement PNG Papua New Guinea PSWPS Pacific Seasonal Worker Pilot Scheme RSE Recognised Seasonal Employer TMNP Temporary Movement of Natural Persons UK United Kingdom USA United States of America UNDP United Nations Development Programme

South–South labour migration needs in Papua New Guinea

Executive summary

This study examines how Papua New citizens. Third, Melanesian workers Guinea (PNG) is integrating human lack formal education skills to mobility into its national and regional take advantage of international development plans. In particular, labour opportunities. Despite these the study explores three aspects important contributions, little is said of South–South labour migration by the literature about contemporary between Fiji, Solomon Islands and emigration to PNG from neighbouring PNG. The first aspect is the extent Melanesian countries, especially to which institutional factors have in light of the recent labour and increased South–South migration migration policy reforms and the between these three countries. The introduction of the Melanesian second aspect is whether or not Spearhead Group Skills Movement international migration networks, Scheme. such as formal public and commercial After undertaking fieldwork in agencies, informal agents and PNG, Solomon Islands and Fiji, the kinship and traditional sociocultural study found that despite recent relationships, have contributed to initiatives there is limited migration increased South–South migration. among Melanesian countries. This The third aspect is whether cultural/ is due to nativism being the basis of historical similarities have encouraged Melanesian society. The movement South–South migration between of people challenges national identity PNG, Fiji and Solomon Islands. and goes to the core of statehood The literature review conducted at (Betts, 2011). In a context of high the beginning of this study found unemployment, political instability that there is little labour mobility and ethnic tensions – a reality in the region. Three arguments are faced by all Melanesian countries – put forward to explain this. First, the promotion and tolerance of it is proposed that the majority of immigration represents a compromise the labour force is employed in the between the needs for cheap labour informal economy and have close and the demands of indigenous attachment to land, in turn deterring workers for the protection of native international immigration. Second, entitlements (Goss and Lindquist, migration policies from larger 2000). This social value has impeded economies – such as Australia, New the development of international Zealand and the United States – have migration networks despite the close deterred emigration of Melanesian proximity between these countries. xiii ACP Observatory on Migration

In contrast, the study found that areas and raise rural incomes. Second, Asian workers have a long-history the Government of PNG could of labour migration to the region consider encouraging both circular thanks to access to capital and and return migration of highly skilled well-developed networks but their PNG nationals and expats. Third, high productivity and low labour costs streamlining institutional processes make them much more competitive to foster South–South migration than Melanesian workers. As a result, among Melanesian countries could Asian workers have flooded the semi- counteract the negative effects of and low-skilled PNG labour market by nativism on labour mobility. In the either evading immigration controls long term, institutional processes or entering as short-term migrants. play an important role in determining Thus, the study argues that South– the future destination of the coming South labour mobility primarily generation of migrants. comes from Asian countries rather than from neighbouring Melanesian countries such as Fiji and the Solomon Islands. Three recommendations are put forward to support South–South migration between Melanesian countries. First, policymakers in PNG need to consider establishing training schemes that can increase the number of jobs available in rural

xiv South–South labour migration needs in Papua New Guinea

Résumé analytique

La présente étude examine la façon internationale. Deuxièmement, les dont la Papouasie-Nouvelle-Guinée politiques migratoires des économies intègre la mobilité humaine dans plus importantes du Pacifique (comme ses plans nationaux et régionaux. l’Australie, la Nouvelle-Zélande Elle s’intéresse plus particulièrement et les États-Unis) préviennent à trois aspects de la migration de l’émigration des ressortissants travail Sud-Sud entre Fidji, les Îles mélanésiens. Troisièmement, les Salomon et la Papouasie-Nou‐ travailleurs mélanésiens n’ont pas les velle-Guinée. Le premier aspect compétences formelles nécessaires concerne l’influence des facteurs pour profiter des possibilités institutionnels sur le développement d’emploi internationales. Malgré de la migration Sud-Sud dans ces ces contributions importantes, trois pays. Le deuxième concerne la la littérature en dit très peu sur question de savoir si les réseaux de l’émigration contemporaine à migration internationaux, comme les destination de Papouasie-Nou‐ organismes publics et commerciaux velle-Guinée au départ des pays formels, les agents informels mélanésiens voisins, en particulier et les relations socioculturelles à la lumière des récentes réformes traditionnelles et basées sur la des politiques en matière d’emploi parenté, ont ou non contribué à et de migration et de l’introduction augmenter la migration Sud-Sud. Le du système de circulation des troisième aspect concerne la question compétences (« Skills Movement de savoir si les similarités culturelles/ Scheme ») du Groupe mélanésien Fer historiques ont favorisé la migration de lance. Sud-Sud entre la Papouasie-Nouvelle- Sur la base des recherches sur le Guinée, Fidji et les Îles Salomon. terrain menées en Papouasie-Nou‐ L’analyse documentaire effectuée velle-Guinée, aux Îles Salomon et à au début de l’étude révèle que la Fidji, l’étude révèle que malgré les mobilité des travailleurs est limitée initiatives récentes, la migration est dans la région. Trois arguments limitée entre les pays mélanésiens. sont présentés pour expliquer cela. Cela s’explique par le fait que le Premièrement, on propose l’idée que nativisme est le fondement de la la majorité de la main-d’œuvre est société mélanésienne. La circulation employée dans l’économie informelle des personnes remet en question et est profondément attachée au l’identité nationale et affecte l’essence territoire, ce qui nuit à l’immigration même de l’État (Betts, 2011). Dans xv ACP Observatory on Migration un contexte caractérisé par un Trois recommandations sont chômage important, une instabilité présentées pour favoriser la politique et des tensions ethniques migration Sud-Sud entre les pays (une réalité que connaissent tous les mélanésiens. Premièrement, les pays mélanésiens), la promotion de décideurs en Papouasie-Nouvelle- l’immigration et la tolérance à cet Guinée doivent envisager de mettre égard représentent un compromis en place des systèmes de formation entre le besoin d’une main-d’œuvre qui augmentent le nombre d’emplois bon marché et les revendications des disponibles dans les régions rurales travailleurs locaux en faveur de la et qui augmentent les revenus des protection des droits des autochtones populations rurales. Deuxièmement, (Goss et Lindquist, 2000). Cette valeur le gouvernement de Papouasie- sociale entrave le développement de Nouvelle-Guinée doit envisager réseaux de migration internationaux de favoriser la migration circulaire malgré la proximité immédiate entre comme la migration de retour ces pays. des ressortissants de Papouasie- Nouvelle-Guinée et des expatriés L’étude révèle en revanche que les hautement qualifiés. Troisièmement, travailleurs asiatiques émigrent dans la simplification des processus la région depuis bien longtemps institutionnels en vue de favoriser grâce à l’accès au capital et à des la migration Sud-Sud entre les pays réseaux bien développés, mais leur mélanésiens pourrait contrecarrer productivité élevée et la faiblesse de les effets négatifs du nativisme sur la leurs salaires en font des travailleurs mobilité de la main-d’œuvre. À long nettement plus compétitifs que terme, les processus institutionnels leurs homologues mélanésiens. jouent un rôle important dans la Les travailleurs asiatiques affluent détermination de la destination dès lors sur le marché de la future de la prochaine génération de main-d’oeuvre semi-qualifiée et peu migrants. qualifiée de Papouasie-Nouvelle- Guinée en esquivant les contrôles à l’immigration ou en entrant sous le statut de migrant à court terme. L’étude soutient par conséquent que la mobilité de l’emploi Sud-Sud vient davantage des pays d’Asie que des pays mélanésiens voisins tels que Fidji et les Îles Salomon. xvi South–South labour migration needs in Papua New Guinea

Resumo executivo

Este estudo examina como a e Estados Unidos da América, Papua Nova Guiné está a integrar a desincentivaram a emigração dos mobilidade humana nos respectivos cidadãos Melanésios. Em terceiro planos nacionais e regionais. Em lugar, os trabalhadores Melanésios particular, o estudo explora três carecem de qualificações formais aspectos da migração laboral Sul-Sul para beneficiar de oportunidades entre as Ilhas Fiji, Ilhas Salomão de trabalho internacional. Apesar e Papua Nova Guiné. O primeiro destes contributos importantes, aspecto é até que ponto os factores pouco é referido na documentação institucionais aumentaram a sobre a emigração contemporânea migração Sul-Sul entre estes três para a Papua Nova Guiné dos países países. O segundo aspecto é se as Melanésios vizinhos, especialmente redes de migração internacionais, tais tendo em conta as recentes como agências públicas e comerciais reformas políticas em termos de formais, agentes informais, parentes trabalho e migração e a introdução e relações socioculturais tradicionais, do Melanesian Spearhead Group contribuíram ou não para o aumento Skills Movement Scheme (Plano de da migração Sul-Sul. O terceiro movimento de qualificações do grupo aspecto é se as semelhanças culturais/ de liderança Melanésio). históricas incentivaram a migração Após a realização de trabalho de campo Sul-Sul entre Papua Nova Guiné, Ilhas na Papua Nova Guiné, Ilhas Salomão Fiji e Ilhas Salomão. e Ilhas Fiji, o estudo determinou A análise da documentação realizada que apesar das iniciativas recentes, no início deste estudo determinou a migração é limitada nos países da que existe pouca mobilidade laboral Melanésia. Isto deve-se ao facto de o na região. São propostos três nativismo estar na base da sociedade argumentos para explicar este facto. Melanésia. O movimento de pessoas Em primeiro lugar, considera-se que desafia a identidade nacional e a maior parte da força de trabalho alcança o núcleo da soberania (Betts, esteja empregue na economia 2011). Num contexto de desemprego informal e tenha uma forte ligação elevado, instabilidade política e à terra, desincentivando a imigração tensões étnicas, uma realidade em internacional. Em segundo lugar, todos os países da Melanésia, a as políticas de migração das promoção e tolerância da imigração maiores economias do Pacífico, tais representa um compromisso entre as como a Austrália, Nova Zelândia necessidades de mão-de-obra barata xvii ACP Observatory on Migration e a solicitação de trabalhadores São estabelecidas três recomendações indígenas para protecção dos nativos para apoiar a migração Sul-Sul entre (Goss e Lindquist, 2000). Este valor países da Melanésia. Em primeiro social impediu o desenvolvimento lugar, os legisladores na Papua de redes de migração internacionais, Nova Guiné têm de considerar apesar da grande proximidade entre o estabelecimento de planos de estes países. formação capazes de aumentar o número de empregos disponíveis Por outro lado, o estudo determinou em áreas rurais e aumentar os que os trabalhadores Asiáticos têm rendimentos rurais. Em segundo um longo historial de migração laboral lugar, o Governo da Papua Nova na região graças ao acesso a capital e Guiné poderia considerar incentivar redes bem desenvolvidas, sendo que a migração circular e de regresso de a sua elevada produtividade e baixos cidadãos nacionais e expatriados custos de mão-de-obra fazem com altamente qualificados da Papua que sejam muito mais competitivos Nova Guiné. Em terceiro lugar, do que os trabalhadores Melanésios. agilizar os processos institucionais Consequentemente, os trabalhadores para promover a migração Sul-Sul Asiáticos inundaram o mercado de entre os países da Melanésia poderia trabalho relativamente a médias e contrariar os efeitos negativos do baixas qualificações na Papua Nova nativismo na mobilidade laboral. Guiné, evadindo-se aos controlos A longo prazo, os processos de imigração ou entrando como institucionais desempenham um migrantes de curta duração. Assim, o importante papel na determinação do estudo determina que a mobilidade destino futuro das próximas gerações laboral Sul-Sul deriva sobretudo dos de migrantes. países Asiáticos em detrimento dos países Melanésios vizinhos, tais como as Ilhas Fiji e Ilhas Salomão.

xviii South–South labour migration needs in Papua New Guinea

1. Introduction

The Independent State of Papua Alongside this economic expansion, New Guinea (PNG hereafter) is the the formal employment sector has largest and most populated country increased significantly (Duncan and in the South Pacific region. Separated Voigt-Graf, 2008). However, these between high mountainous and flat new employment opportunities have coastal areas, PNG’s population is highlighted the shortage of people strikingly diverse and organized in with the necessary professional, small fragmented social groups that technical and managerial skills to speak over 800 distinct languages. meet the needs of private sector PNG is endowed with vast natural employers. At the same time, high resources: it contains the third salaries and economic opportunities largest area of tropical rain forest have made PNG a magnet for in the world, it has fertile soils that foreign labour.3 The ethnic diversity suit the production of cash crops apparent in the shopping malls of and vast mineral and fuel reserves. the capital Port Moresby indicates Since the early 1990s, PNG has that immigration is increasing as embarked on major gas and oil the economy continues to grow and production, which has accelerated more international companies set economic growth (East Asia Forum, up offices in the country.4 Despite 2011).1 Following the extractive the 2012 political instability and high industry, there has been significant levels of violence, PNG appears to growth in the communications, have become a desirable destination construction and real estate sectors for skilled, semi- and low-skilled and this has further expanded the immigrants. local economy (World Bank, 2012). The following study has been Since the mid-2000s, strong global commissioned by the African, demand coupled with rising prices for fuel, mineral and agriculture export continues at a robust 4 per cent (World products has enabled PNG to become Bank, 2012). one of the fastest growing economies 3 Increased immigration is noticeably linked to the wealth generated by the extractive in the South Pacific region (Duncan sector, which makes it possible to offer and Voigt-Graf, 2010).2 higher wages compared with neighbouring countries. 1 The PNG-Liquefied Natural Gas (PNG 4 Following the definitions established by LNG) project is driven by a large joint the ACP Observatory on Migration (2011), investment by ExxonMobil and the migration to PNG is considered as a Government of PNG. strategy for improving individual well-being 2 Despite the global economic crisis that as economic growth in the country offers started in 2007 PNG’s economic growth better employment opportunities. 1 ACP Observatory on Migration

Caribbean and Pacific (ACP) This report starts with an outline Observatory on Migration to better of the methodology used to collect understand how PNG is integrating qualitative data in PNG, Fiji and human mobility into its national Solomon Islands (Section 2). This is and regional development plans. In followed by a literature review of particular, based on the priorities labour mobility within the Melanesia identified in the Working Group on subregion (Section 3). Next the Migration and Development,5 the study describes the existing labour research explored three aspects and immigration policies in PNG of South–South labour migration (Section 4), followed by a discussion between Fiji, Solomon Islands and of findings with regard to South– PNG.6 First, the extent to which South labour mobility between PNG, institutional factors have increased Solomon Island and Fiji as well as with South–South migration between other Asian countries (Section 5). these three countries. Second, The study conclusions are discussed whether or not international in the final section of this report migration networks, such as formal along with recommendations for the public and commercial agencies, Government of Papua New Guinea. informal agents and kinship and traditional sociocultural relationships, have contributed to increased South– South migration. Third, whether and how cultural/historical similarities have encouraged South–South migration between PNG, Fiji and Solomon Islands (De Haan and Yaqub, 2009; Hujo and Piper, 2007).

5 Consisting of representatives of government entities, academics and civil society representatives working on migration issues in Papua New Guinea. 6 South–South migration is understood as the movement of international migrants among countries of the global South, meaning countries that do not reach a very high Human Development Index according to the UNDP classification. Thus, the movements of population between these countries refer to South–South migration (ACP Observatory on Migration, 2011). 2 South–South labour migration needs in Papua New Guinea

2. Methodology of the study

2.1 Research question a literature review covering three The main research question upon areas: migration trends in the South which the following status is based is Pacific region, an overview of the as follows: labour markets in Melanesia, and migration and labour policies in PNG. To what extent have institutional The second phase involved fieldwork factors, extended international in PNG, Solomon Islands and Fiji.7 migrant networks and cultural/ historical similarities contributed This study followed a qualitative to the immigration of labour from methodology grounded in the Solomon Islands and Fiji to PNG? assumption that individuals construct social realities in the form of meanings and interpretations. 2.2 Objectives Qualitative methods were chosen This study has the following three as they have the advantage of main objectives: gathering data representative of the ideas expressed by the interviewees. To understand the role played by institutional factors, such as labour Open-ended interviews were used and migration policies in PNG to collate the diverse perspectives of and international labour mobility government officials, private sector agreements, in driving South– managers and migrants. This method South migration; was chosen because it allowed the collection of experiences, perceptions To establish whether or not and knowledge of interviewees South–South migration from Fiji regarding South–South migration in and Solomon Islands is addressing Melanesia. In total, the research team labour gaps in PNG; and, conducted 35 open-ended interviews To provide recommendations with policymakers, private sector to inform PNG’s existing labour managers and migrants from PNG, Fiji migration framework on South– and Solomon Islands.8 All interviews South mobility. were recorded and transcribed in full where possible. Detailed notes were also taken during each interview and 2.3 Methodology, research design and analysis typed for analysis. 7 The fieldwork took place from October to This study was divided into two December 2012. phases. The first phase involved 8 See Appendix. 3 ACP Observatory on Migration

The raw descriptive information qualitative methods have limitations obtained from the open-ended with regard to the generalization of interviews was studied intensively findings. In order to address these in order to identify topics raised by limitations the research team was the respondents. These topics were careful to acknowledge, respect and then classified into four categories: work with cultural differences through labour policies, migration policies, following interviewing methods that South–South labour mobility allowed for complexities to emerge. between Melanesian countries and To maintain validity an effort was Asian labour mobility to PNG. Further made to limit interpretations to the analysis of the data was undertaken empirical material available. involving the triangulation of opinions among respondents and the creation of summative narratives for each category. The results of this analysis was then cross-referenced with the findings from a literature review of published research, government policies and reports. The last stage of data analysis involved the selection of quotes for listing in this report to reinforce the main finding from the study. To maintain anonymity, references to specific interviewees were limited to where a person worked (government, non-governmental or private sector), the location of the interview (Port Moresby, Suva or Honiara) and the date when the interview took place.

2.4 Limitations There are two main limitations with the methodological approach followed in this study. First, there is always a danger of the imposition of a dominant version of truth or meaning in cross-cultural research. Second, 4 South–South labour migration needs in Papua New Guinea

3. Literature review: Labour and migration trends in Melanesia

The Melanesian nations of PNG, the mineral wealth of the subregion Solomon Islands, Vanuatu and Fiji has brought significant economic, are situated in the southwest of the environmental and social change to Pacific, between the equator and the doorstep of rural Melanesian the Tropic of Capricorn (Figure 1).9 populations in the form of extractive The name Melanesia, meaning “dark sites.10 In addition, the pressure over islands”, was bestowed by early small land-holdings and the decline explorers in reference to the “high of agricultural production have all island” formation, rugged interiors, contributed to changes in traditional dense vegetation and heavily village life. As a result internal indented coastlines (Berno and migration has become prevalent, Douglas, 1998:68). The largest single even though deeply embedded in landmass of 461,690 km² is in PNG, local customs that determine the which occupies the eastern half of length of the mobility and circulation the very large island of New Guinea. patterns of migrants (Friesen, 1994). The Western half is the Indonesian The absence of reliable statistics and province of West Papua. little government-based information Over 80 per cent of the Melanesian on labour markets has not helped population lives in rural communities the understanding of migration practicing subsistence agriculture systems within the subregion. What is where contact with urban life is known is that despite facing stagnant minimal (ESCAP, 2008). Mixed or low-growing economies, most subsistence/cash cropping activities Melanesians do not seem to use are spread over hundreds of islands, international migration as a strategy many of which are inaccessible to improve their livelihood (ESCAP, communities. Thus, the majority of 2007; Duncan and Voigt-Graf, 2010; the labour force is employed in the Hess, 2006; UNDP, 2009).11 This informal economy on subsistence activities and from the earning 10 The countries of Melanesia belong to the additional cash-income from produce ‘Pacific ring of fire’ caused by the collision excess of that needed for consumption of the Earth’s tectonic plates, which produced a wealth of minerals along the (Duncan and Voigt-Graf, 2010). line of contact (Opeskin and MacDermott, Despite the geographical isolation, 2009). 11 Fiji is an exception to the other Melanesian 9 Although situated in Melanesia, New countries. Its high emigration rates were Caledonia is not a Melanesian nation-state driven – in a large part – by the military but a special collectivity of France. coups that took place in 1987, 2000 and Therefore, this study does not include it. 2006 (Duncan and Voigt-Graf, 2010). 5 ACP Observatory on Migration is a stark contrast to people from explain why immigration has not Polynesia and Micronesia who tend played a more predominant role in to emigrate in vast numbers to Pacific the Melanesian subregion. The first Rim countries, such as Australia, argument focuses on the role of land New Zealand and the United States in Melanesia. The second argument (Duncan and Voigt-Graf, 2010). To focuses on migration systems as the understand why this is the case, the result of historical forces. The third study undertook a literature review argument focuses on the role of on labour migration issues in the institutions in Melanesia as deterrents region. to immigration. These arguments are explained as follows. The literature reviewed was divided into three subsections that put forward different arguments to

Figure 1: Map of Melanesia

Equator Equator

Manus PAPUA NEW GUINEA Bismarck Arch. Irian Jaya New Ireland N New Britain Papua Bougainville SOLOMON ISLANDS New Guinea Solomon Choiseul Trobriand Sea INDONESIA Santa Isabel Port Islands Moresby New Georgia Honiara Malaita Aratura Sea D'Entrecasteux Torres Strait Islands Guadalcanal Makira Santa Cruz Islands Bellona Rennell

Torres Islands Banks Islands VANUATU Maewo Coral Sea Espirito Santo Pentecost Vanua Levu Malakula Ambryum Shepherd Islands Taveuni Port-Vila MELANESIA NEW Efate Viti Levu Lau CALEDONIA Erromango Suva Kadavu Group Loyalty Is Tanna Anatom FIJI Grand-Terre Nouméa Isle of Pines

6 South–South labour migration needs in Papua New Guinea

3.1 Attachment of Melanesians interaction makes local communities to land more dispersed: it fragments the local Some authors (see Cinner, 2009; leadership and creates a multiplication Curry et al., 2012; Strathern and of landowners as marriage networks Stewart, 1998; Martin, 2007) focus widen. Increasingly, disputes and on the role of land to help explain communal violence between migration systems and labour market migrants and customary landowners development within Melanesian are occurring at sites of high migration countries. The main argument like urban centres, mine sites and these authors put forward is that an large agricultural development intense attachment to land – due to projects (Koczberski and Curry, 2004). its centrality with social identity as Internal conflicts at local and national well as the economic possibilities levels in Fiji, Solomon Islands and in terms of subsistence - explains PNG are somehow related to these why Melanesians have delayed migration patterns. However, a migrating in order to search for number of authors have pointed out employment outside their ancestral that the land-attachment argument grounds. For the few land-poor only partially explains the lack of Melanesians, internal migration is emigration in Melanesia. used as an opportunity to gain short and long-term access to “frontier 3.2 Historical factors zones”, where mining, plantation development and associated To explain why large scale migration programmes of resettlement interact has taken place in some parts of with local societies, cultures and the South Pacific, some authors economies. argue that it is necessary to look at migration systems as the result Koczberski and Curry (2004) argue of historical forces that have taken that for Melanesian indigenous shape from colonial and post-colonial groups work and well-being is periods (see Ferro et al., 2006; Lee, directly correlated to the availability 2009; Friesen, 1994; Chapman and of land. Thus, the manner in which Prothero, 1985). land - and therefore employment - is acquired is embedded in the By looking at colonial administrations societal values where it takes place. in the regions and the resulting Internal migration, as a survival labour markets, Ferro et al. (2006) strategy for land-poor groups, has argue that it is possible to explain important consequences for both the how Melanesians were not given migrants and local communities. This opportunities for international 7 ACP Observatory on Migration movement prior to independence. to refuse to give special immigration Solomon Islands, Vanuatu and Fiji access or guest worker status to were colonies of the United Kingdom, South Pacific islanders arguing that while PNG was under Australian this would compromise its non- rule until 1975.12 Both Australia and discriminatory immigration policy.14 the United Kingdom (UK) carefully Despite the policy barriers, Pacific regulated Melanesian mobility in Islanders continued to migrate to order to maintain a sufficient labour Australia through finding loopholes force for the plantations and mines in the system.15 In sum, Australia pre- (Ferro et al., 2006; Connell, 2011). and post-colonial migration policies When large-scale emigration schemes and their institutional legacies took place, these were largely significantly deterred the emigration undertaken through force and with of PNG citizens.16 the aim of fulfilling the commercial In contrast to the role played by interests of the colonial powers.13 Australian immigration policies, Opeskin and MacDermott (2009) New Zealand has fostered a special argue that the post-colonial history relationship with its neighbouring of the South Pacific Island countries Polynesian countries. Under the has also influenced patterns of New Zealand Bill of Rights Act 1990, international immigration. Australia Tokelauans, Cook Islanders and has a long history of discouraging Niueans were granted the right migration from the Pacific through its ‘White Australian’ policy – in place 14 Dobell (2003) argues that the unspoken element in this argument is that if South from 1901 to 1973 – that welcomed Pacific Islanders give preferential migrants of European descent (Lee, treatment, then Southeast Asia migrants would be entitled to claim similar access. 2009). In the mid-1970s, Australians 15 For example, student migrants who changed its ‘White Australian’ policy marry and settle in Australia have taken for a universal non-discriminatory advantage of Australian family reunion policies. Other Pacific islanders of migration policy (Dobell, 2003). New Zealand citizenship then migrate Nevertheless, Australia continued to Australia to work. Others come in short-term visas and over-stay working 12 Fiji, Kiribati, Solomon Islands, Tonga, mainly in rural areas. Tuvalu and Vanuatu were colonies of the 16 By 2006, the Australian population UK. census recorded that 24,020 Papua New 13 In the early 1880s, ‘black-birding’ or Guinea-born people lived in Australia, with large-scale kidnapping of men was Queensland having the largest number of responsible for the resettlement of PNG citizens. However, when compared Papuans and Solomon Islanders in to the 7 million people living in PNG, this Fiji, Australia and Samoa. Through migrant population becomes relatively black-birding, more than 3,000 Papuans small - especially in light of the historical ended working as labourers in the and economic links that both countries Queensland sugarcane fields. share. 8 South–South labour migration needs in Papua New Guinea to move freely to New Zealand to (2009) argues that the lack of an access the labour market as well as effective education system is one education and other governmental of the many examples that show services. The impact of this liberal the limited penetration of the state citizenship regime was dramatic as in Melanesian societies. Through there are now more Polynesians in examining local-level government New Zealand than in their home in PNG and Solomon Islands, he countries (Statistics New Zealand, maintains that the formal institutions 2008). Since 2002, New Zealand in these countries have failed to established a new type of visa – the gain much traction as effective Pacific Access Category – for other instruments of administration and Pacific countries. Similarly, the United service delivery. In the absence States has also facilitated migration of effective government systems, between affiliated Pacific in Guam, most villages and communities have American Samoa and Northern governed their affairs according Mariana Islands and the mainland. to customary rules and localised The different approaches taken practices (Hegarty, 2009). Similarly, by New Zealand and the United an ESCAP (2007) report contends that States contrast with those followed the lack of overseas workers from by the UK and Australia. Thus, Melanesian countries is due to a lack these authors argue that historical of marketable skills in their labour factors have influenced institutional forces. In other words, the role of patterns to reduce opportunities for the state in promoting and enforcing low- and semi-skilled Melanesian education has imposed limitations workers. This, in turn, has reduced on Melanesians workers from taking the emigration rates of Melanesian opportunities available in other countries. countries. In the same way, Imbun (2007) argues that any discussion of the 3.3 Poorly developed actors that influence the conduct institutions and maintenance of employment Some authors argue that poorly relations in a country must centre developed institutions - such as on the role of the state. Looking at the state, the labour market and the PNG state, Imbun maintains that education systems- within Melanesia PNG’s weak state has not been able explain the limited international to dominate the various groups in migration (see Hegarty, 2009; society even though it influences Imbun, 2007; ESCAP, 2007). Hegarty employment relations in the mining 9 ACP Observatory on Migration and industrial sectors through a (2007) argues that this is having a reactive approach to the settlement devastating effect on the Melanesian of individual disputes. Thus, the labour forces. This is because Chinese state fell short of the authoritarian companies are providing record interventions characteristic of other investments, while also bringing labour relation systems. This led low- and semi-skilled labour to the to weak regulation of employment subregion. He maintains that 3,000 relations through the provision of Chinese state-owned and private employment and industrial laws. enterprises have been registered The vacuum in the labour market in the South Pacific region with has been filled with authoritarian investments of about A$ 800 million. employers that control the workplace Furthermore, Chinese investment with little regard for genuine worker has been matched by the arrival of issues. This generally conservative a new Asian diaspora that is poorly and ‘absolutist’ management style regulated by local governments. has tried to reconcile the competitive Due to these factors, this body of challenges of international capital the literature highlights the need to with the diverse demands of re-examine the real potential of rural transitory tribal workforces (Imbun, areas and how to create employment 2007:4). opportunities rather than to expect Authors supporting this argument direct foreign investment to increase contend that poorly developed employment across the country. institutions perpetuate weak local labour sectors. For example, little 3.4 Summary of literature is done to better understand the review operation and expansion of national work forces (ILO, 2009; ESCAP, 2007; From the literature review it is clear Jowitt, 2002). This makes it difficult that there is no significant South– for governments to comment on South migration between Melanesian the nature of the labour force, countries. Authors who have analysed unemployment and migration labour forces in Melanesia have put policies. Also, most labour policies forward three arguments as to why remain urban-biased despite that the this is the case. First, Melanesian majority of the labour force is based in rural populations have not followed a rural areas (Jowitt, 2002). Based on an linear transition from a pre-capitalist analysis of the juxtaposition of poor economy to a capitalist one; rather governance systems and increased the outcome has been an indigenous Asian foreign investment, Dobell version of capitalism with a diversity of 10 South–South labour migration needs in Papua New Guinea local outcomes. Rural populations see also raises the key point that the communal land-ownership as central lack of skills within Melanesian has to their identity and embedded in the created opportunities for foreign local societal values. In this context, workers, especially from Asia, to take internal migration is considered advantage of employment offered by a survival strategy for land-poor private sector companies. groups to access land rights with Despite these important neighbouring groups.17 It is because contributions, little is said about of this attachment to land that some contemporary emigration to PNG authors suggest that Melanesians do from neighbouring Melanesian not tend to immigrate. countries especially in light of the Second, colonial and contemporary recent labour and migration policy migration policies from larger Pacific reforms and the introduction of the economies – such as Australia, New Melanesian Spearhead Group Skills Zealand and the United States – have Movement Scheme, which aims deterred emigration of Melanesian to foster South–South migration. citizens. Furthermore, seasonal This study aims to address this gap worker exchange schemes from in the literature by examining the Australia and New Zealand have role played by three aspects of not been in place long enough South–South Melanesian migration: to counteract this trend. Third, institutional factors, international the state, the labour market and migration networks and cultural/ education systems in Melanesia have historical factors. limited emigration as citizens have been unable to acquire sufficient marketable skills. As a result, Melanesian workers have not been able to take advantage of international labour opportunities. This literature

17 Other mechanisms to access land rights are inter-marriage and long-term settlement schemes between different groups.

South–South labour migration needs in Papua New Guinea

4. PNG labour and migration policies

4.1 PNG labour force a substantial proportion of the total formal employment sector. PNG has three mains areas of economic activity: the formal According to the PNG Central Bank, employment sector where employees employment across the retail, receive regular wages; the informal agriculture, forestry and fisheries, sector involving entrepreneurial manufacturing and construction activity whereby economic activities industries is estimated to have undertaken by individuals or groups grown by 10.2 per cent and 8.3 per generates ‘employment’ outside cent in 2007 and 2008 respectively. the formal labour market; and the Mineral sector employment also subsistence sector, which continues grew by 12.6 per cent during this to be the major area of labour period. The exploitation of fuel absorption. According to government and mineral reserves increased estimates, 97.2 per cent of people are formal employment levels (Duncan employed in one of these sectors (see and Voigt-Graf, 2008). Most of this table 1). The majority of the population employment is concentrated in are involved in the informal and the National Capital District and in subsistence sectors. A much smaller extractive centres (ESCAP, 2007). proportion of people are involved in Despite expansion in the formal the formal employment sector. The employment sector, PNG faces serious public and mining sectors provide labour market demand and supply

Table 1: Employment, unemployment and poverty in PNG in 2000

Employment by sector Agriculture 73.28% Services 22.97% Industry 3.69% Unemployment Total unemployment 68,620 Total unemployment rate 2.8% Total female unemployment 14,970 Total female unemployment rate 1.3% Youth unemployment rate (15-24) 5.3% Source: UNPD, 2009 and UNHCR, 2010. 13 ACP Observatory on Migration problems. This is mainly because a relations system of PNG: fostering high number of school graduates weak capital penetration and lack adequate skills required by allowing the pre-capitalist economy the private sector reducing the to be maintained intact with an likelihood of those in the “job-seeking absence of industrial infrastructural age” (15-29 years) from gaining development.19 Latukefu (1989) employment in the formal sector.18 explains how colonial practices To understand how the Government delayed the size and composition of PNG addresses these problems, of the labour market, slowed the the following subsections present rate of urbanization as well as the a historical overview of labour and speed and coverage of industrializa‐ migration policies. tion. The labour policy also specified the master-servant relationship between the untenured labourer 4.2 Colonial and post-colonial and employer. These policies also labour policies discouraged unions and other forms of organized labour while allowing From 1914 to 1975, the Government the colonial administration to have of Australian annexed the Papua unlimited access to land for mining and New Guinea territories as and agricultural plantations. colonial property. The colonial state After independence, PNG retained deliberately minimized employment the 1962 Industrial Relations Act. In of indigenous labour to isolate this 1978, a new Employment Act was Territory from the “disruptive effects drafted largely based on the 1958 of social and economic change implicit colonial Employment Ordinance in labour mobility and bargaining that (ESCAP, 2007).20 As a result, these was experienced in Africa” (Imbun, two key labour policies were strongly 2007:2). This practice allowed the colonial state to use PNG for purely 19 In the colonial era, indigenous people were prohibited from living in towns and there extractive processes with a minimal were curfews on their presence in town. investment in training programmes or In the late colonial era, restrictions on the enforcement of workers’ rights. movement to towns were lifted and urban and regional authorities provided housing These policies had a profound impact and services for migrants. As migration on the development of the industrial to towns increased in volume there were suggestions that a pass-system be 18 The problem is aggravated when one introduced once again despite the fact that considers that despite increases growth the PNG constitution provided for freedom rates in gross domestic product have not of movement (Connell, 1987). kept pace with population growth. Thus, 20 The Employment Ordinance was the scale of youth unemployment will introduced in 1958 and subject to minimal remain high across the country (Hess, change until it became the Employment 2006). Act 1978 (ILO, 2009). 14 South–South labour migration needs in Papua New Guinea influenced by colonial legislation. 4.3 Contemporary labour Notwithstanding the colonial policies inheritance of the country’s labour Since the late 1990s, the Government policy, the ability of the PNG state of PNG initiated a review of existing to influence industrial relations was labour legislation in an effort to demonstrated in the wage tribunals address the high unemployment in the years after independence and the exodus of rural migrants.21 (Imbun, 2007). Hess (1989) found that The labour reform, the review of during the 1970s and 1980s, the state the Industrial Relations Act and the went to some lengths to advocate creation of strategies for employment unionization in the workplace, which creation were initiated in close was quite unusual for a developing partnership with the International country. Labour Organisation (ILO) (Non- By the mid-1980s, government governmental, Suva, 30 Nov. 2012). policies had aggressively promoted In 2003, the Government, with ILO economic growth while appealing support, initiated a situation analysis to private sector companies to allow of employment policies in PNG unions to be established in order that would be the foundation for a to take care of workers’ rights. The Comprehensive National Employment emergence of trade unions, however, Policy to guide employment creation did little to protect workers’ rights. and promotion. Although the This was the result of two factors. First, results of the situational analysis the enforcement of labour policies were delayed, this evolving policy was poor and industrial relations dialogue led to the endorsement by remained confined to individual the National Executive Council of the (2009-2012) Decent Work National companies, where industrial 22 disputes often were resolved using Development Policy. draconian means and defying dispute 21 Rural mobility increases ethnic tensions settlement procedures (Imbun, 2007). among migrant and indigenous As a result, only few trade unions populations. Several government officers noted the law and order challenges linked managed to effectively represent to migration in rural areas close to mine worker’s interests (Imbun, 2007). and LNG sites. 22 The four pillars of the Decent Work Second, the make-up of PNG society National Development Policy are: had no ethos of union organizations (1) promotion of full and productive nor an economy with large numbers employment; (2) ratification of core conventions and workers’ rights; (3) social of ‘proletarians’ who survived by protection mechanisms, improved wages, selling labour (Cammack, 2008). better living conditions and employment These factors delayed the evolution opportunities; and, (4) strengthening tripartite mechanisms and workers’ of the PNG labour force. representation. 15 ACP Observatory on Migration

In 2010, and following the initiation Moresby, 12 Nov. 2012).24 The labour of the PNG Liquefied Natural Gas policy reform has taken more than a (LNG) project, the Government decade and to date there is almost no announced two policy plans to reliable official employment-related guide the development of the data available.25 Also, the lack of country –Vision 2050 and the transparency in the use of resources Medium Term Development Plan devoted to remote areas presents (MTDP) 2011-2015. These plans a problem for the development of supported expanding the number infrastructure in rural areas – which is of jobs and the competencies of the one of the key determinants for the workforce (GoPNG, 2010b). They creation of rural employment. also emphasized the need for the Government to invest in the education system to provide a well-educated, 4.4 Challenges facing PNG’s healthy and appropriately skilled labour market work force.23 For example, Pillar 3 Despite reforms in the labour of the Vision 2050 plan proposes legislation, the labour force in Papua that the Government has to create New Guinea remains segmented in employment opportunities in order to reduce poverty (GoPNG, 2010b). several ways. The informal sector, The MTDS specifies that by 2015, made up of most of the 85.9 per cent and thanks to increased funding of PNG citizens, continues to provide in the private and public sectors, limited opportunities for skilling up urban-based industries are expected workers in rural areas (Browne and to have created more than 223,000 Mineshime, 2007). In addition to a jobs, while rural based industries are lack of skilling opportunities, cultural expected to have created 60,000 jobs. factors intervene as paid employment is not the number one priority for These policy plans have also renewed self-employed rural workers; rather emphasis for integrated rural-urban family is much more important (Non- development, stressing both governmental, Suva, 27 Nov. 2012). economic development to increase the number of jobs available and the 24 The lack of transparency in the use of provision of social services to reduce resources also represents a problem for internal migration. However, it is the development of infrastructure in rural areas. not clear how these goals are to be 25 PNG does not have an employment achieved (Non-governmental, Port database or a labour information system (ADB, 2008). The only existing data is the 23 This policy goal remains despite that employment data from Central Bank of demand for skills training in the country far PNG, which cover the information provided outweighs enrolments at institutions that by the Manufacturer Council (Government, can provide such training (ESCAP, 2007). Port Moresby, 13 Nov. 2012). 16 South–South labour migration needs in Papua New Guinea

This is an important aspect as it the private sector (Non-government, deals with the priority to which an Suva, 27 Nov. 2012). individual attaches to a wage job. Semi-skilled workers participating in The commitment to work, earn the formal sector face supply-demand and send money home for foreign constraints as there is a gap between workers is very strong; whereas for the various professional requirements a PNG worker it may be that he/she and the formal training available will work on this until he/she earns in these areas (ADB, 2008).26 Poor a specific amount of money needed training has significantly contributed for a particular social activity, such as to a paradox in PNG’s labour market: a payment for bride-price or funeral despite having a substantial number costs. A regional advisor made the of people graduating from training following point: institutions, the private sector The notion that when you are 15 or complains about a lack of skilled 16 [years old] you become a wage workers. An ADB (2008:67) report slave for the rest of your life is not argues that the paradox is a question really there. […] In economic terms, the explanation would be that there of experience and expertise: is a high-supply price of labour. [In PNG] fresh graduates lack People will not want to work in a the attitudes needed in the wage job – in what can also be seen workplace such as punctuality as a boring wage job – for low wages and general discipline. This occurs because there is the alternative of in part because of the culture of subsistence agriculture and cash the training institutes differing cropping. This is conceptualised as significantly from that in industry. ‘subsistence-affluence’: you have a Shortages exist for experienced subsistence sector because the land skilled and semi-skilled workers and is very productive. This is unlike supervisors. The industrial sector Asian countries, where if you do not reports difficulties in recruiting work for 8 hours a day you will not plumbers, air-conditioning and have any food. (Suva, 27 Nov. 2012) refrigeration mechanics, welders The commitment to family is not only and electricians. In building restricted to access to land but also to construction, skills gaps are seen wider family obligations that involve 26 Supply-demand imbalances result when tribal support. If there is a tribal the economy cannot generate enough wage-jobs to absorb those entering the dispute, workers become involved and labour market. The imbalance results have to stop their jobs until the issue partially from inadequate public funding and policy attention to meet the needs of is settled. This uncertainty in terms the great majority of unemployed, youth, of labour supply is not welcomed by women and rural poor. 17 ACP Observatory on Migration

in finishing skills including tiling, In order to circumvent the problems plastering, and paint-decorating for faced by the national labour force, high-value buildings such as hotels the private sector tends to recruit and embassies. low-, semi- and skilled foreigners. Skilled workers participating in the For example, the extractive sector formal sector constitute the smallest tenders for projects that include segment in the economy. This narrow international labour requirements portion of the labour sector is further and subcontractors (Government, skewed due to high immigration rates Port Moresby, 13 Nov. 2012). Since as most skilled PNG workers migrate the extractive sector is so important to work in Australia or New Zealand. for the country, subcontractors A government officer said: are exempted from immigration procedures. As a result, most semi- About 90 per cent of the PNG and low-skilled labour involved in the professionals move on. You can live PNG extractive sector are foreigners. in Brisbane or Port Moresby, that is your choice. If you are a trained A government officer said: doctor, would you want to work in Asian workers can be paid USD1 PNG hospital with no facilities or an hour and work non-stop for six would you travel somewhere else months. This worker will do exactly in the world and work with hygienic as he is told. This is important as hospital? (Port Moresby, 23 Nov. the LNG subcontractors work on a 2012). tight time-frame. Recently the Red Sea – a Saudi Arabian construction The migration to overseas jobs has company – was allowed to bring much to do with a dissatisfaction foreign workers to build concrete with the terms and conditions within bunkers for the LNG project. They the country, only part of which brought semi-skilled workers from concerns income. Other factors outside PNG arguing that they had are the lack of a career structure, a very short time to do it. These promotion opportunities and access workers were cheap labour as it to modern technology and training is unlikely that the PNG minimum (Brown and Connell, 2004). The wage was respected. (Government, characteristics of the PNG labour Port Moresby, 13 Nov. 2012). force – low productivity among A similar situation emerges for other semi- and low-skilled workers and sectors of the economy, where high migration rates among skilled short-term skilled and semi-skilled workers – means that to meet its labour is imported from Asia as it is labour needs the private sector has cheaper and can be mobilized in a to recruit foreign workers. shorter time frame (Port Moresby, 18 South–South labour migration needs in Papua New Guinea

23 Nov. 2012; Non-governmental, immigration procedures, skill-transfer Suva 27 Nov. 2012). This raises an procedures and an update of the important point: the productivity/ labour-base coding system in order cost ratio for workers in PNG is higher to streamline procedures for entry of than it is in neighbouring Asian skilled migrants.28 The second aspect countries such as China, Indonesia or was to increase protection for low the Philippines (Non-governmental, and semi-skilled jobs reserved for Suva, 30 Nov. 2012). Thus the national employees. The third aspect segmented labour force risks making was to increase control over the PNG PNG workers uncompetitive within border in order to reduce the number their own country. In turn, access to of irregular migrants in the country. cheap imported labour from Asia has Following the policy changes, in 2010 a detrimental effect on the size and the Foreign Employment Division development of PNG’s labour force. of the Department of Labour and Industrial Relations introduced a PNG is one of the few countries in work permit that facilitated the the South Pacific that has reformed recruitment of foreign workers its institutional processes to allow in order to address emerging skilled workers to enter the country. skills shortages, as well as to help raise productivity to international standards (ACP Observatory on 4.5 Labour mobility policy Migration, 2010). These policy reforms amendments strongly reflect a The importance of foreign workers for recognition by the Government of economic growth has highlighted the PNG of the important role played by importance of migration policies. In foreign workers. 2007, the Government of Papua New Despite this recognition and the Guinea reviewed two key immigration considerable reforms on immigration policies: the Employment of Non-Citizens Act and the Employment 28 The labour coding system establishes a of Non-Citizens Regulation in order to three-colour approach to job positions. The Red Code indicates low- and semi-skilled liberalize the immigration of foreign job positions that can only be filled by workers with tertiary education.27 national employees. The Orange Code indicates semi-skilled job positions These policy changes had three availability for foreign semi-skilled labour aspects. The first aspect was to clarify after demonstrating that there is a shortage of national workers in the country. Only then can companies advertise these 27 The review also dealt with the existing positions internationally. The Green Guidelines for Training and Localisation Code indicates job positions available for of Positions and its Employment foreign skilled labour (Private sector, Port Classification programmes. Moresby, 23 Nov. 2012). 19 ACP Observatory on Migration policies, suspicion over labour schemes.29 Three types of labour immigration is also deeply embedded mobility schemes are worth in PNG’s development blueprints. mentioning. The first type of scheme The paradox of whether to embrace is related to seasonal working or not embrace immigration is clearly schemes that allow short-term entry exemplified in the Medium Term to low- and semi-skilled workers from Development Strategy, one of the key PNG. In 2011, the Pacific Seasonal government plans, which stipulates: Worker Pilot Scheme (PSWPS) was “The immigration of large numbers established between Australia and of people is both a significant and PNG. In 2012, PNG became part of positive force in the economic, social New Zealand’s Recognised Seasonal and cultural development of PNG; Employer (RSE) scheme. By the yet it is also a cause of concern” end of 2012, one hundred guest (GoPNG, 2010b:12). Similarly, workers from PNG were involved in Vision 2050 recognises that “[a] these schemes. These schemes are nti-foreign ownership sentiments are regarded by the Government of PNG rising because of their dominance as an important source of future of business, which is creating an employment opportunities (GoPNG, entrepreneurial gap between locals 2010a). and immigrants” (GoPNG, 2007:25). The second type of scheme is related The precarious balance between to bilateral agreements for PNG liberalizing regular migration and semi- and skilled workers short-term trying to protect national labour mobility scheme that allows PNG market from irregular workers is an workers to get training or participate in on-going theme for PNG citizens. the labour market of other countries. Thus, immigration remains a difficult The most relevant agreement of this topic for the Government of PNG type is under negotiations between as more foreign workers enter the the Government of PNG and the labour market. Government of the Philippines. Once approved, this agreement 4.6 PNG participation in labour will allow a labour and training mobility schemes exchange programme between the two countries, making it possible for In an effort to provide further the Government of PNG to receive opportunities to its workforce, short-term semi- and highly skilled the Government of PNG is actively 29 The labour mobility schemes are expected participating in a wide array of to provide working opportunities and new international labour mobility skills to PNG citizens willing to emigrate. 20 South–South labour migration needs in Papua New Guinea workers from the Philippines, in Movement of Natural Persons addition to trainers for its vocational scheme. This scheme is a chapter of centres. the Economic Partnership Agreement with the European Union (GoPNG, The third type of scheme is related 2012).32 to regional agreements that allow labour exchanges among countries. Among the most advanced schemes The following are examples of this is the Melanesian Spearhead Group type of scheme. First, the Temporary (MSG) Skills Movement agreement. Movement of Natural Persons In 2005, the MSG Skills Movement (TMNP) scheme is being negotiated Scheme was endorsed at the under the Pacific Island Countries Leaders’ Summit as a scheme for Trade Agreement (PICTA). The aim the movement of professionals for of this scheme is to allow citizens each member country. This scheme from the 14 member countries to is framed on a Memorandum of move and work in other Pacific Island Understanding between the MSG Forum Countries.30 Second, the Pacific countries of Fiji, PNG, Solomon Islands Agreement on Closer Economic and Vanuatu. It is based on an agreed Relations (PACER) Plus is negotiating list of specific skilled professions such a temporary labour mobility scheme as engineers, accountants, pilots, for semi- and low-skilled workers. doctors and nurses as well as trade This scheme would be part of the skills and vocational teachers. Each Trade Agreement with Australia and member country has its own list New Zealand.31 Third, the African, of occupations that is based on its Caribbean and Pacific (ACP) Group identified shortages and the scheme of States is negotiating a Temporary is capped at a quota of four hundred professionals each year. The MSG 30 In 2010, Fiji was excluded to participate in gained prominence after Fiji was PICTA, PACER Plus, the Pacific Islands suspended from the negotiations of Forum and from the Commonwealth of Nations (World Bank, 2010). This the Pacific Islands Forum in 2010. suspension was due to Fiji’s military-led The MSG has been able to increased government ban of foreign media trade, services and mobility for skilled ownership, suspension of the Constitution, withholding elections until 2014 and trying workers among Fiji, PNG, Solomon to change the Constitution by adopting Islands and Vanuatu. a proposed People’s Charter. This was criticized by the Governments of Australia and New Zealand for its implications for democracy and free speech (ABC News, 32 Although important, the implementation 2010). of these schemes was delayed after Fiji 31 It is unlikely that Australia will accept the was suspended from participating (World proposed scheme in the PACER plus Bank, 2010). See footnote 30 for more Trade Agreement. background. 21

South–South labour migration needs in Papua New Guinea

5. South–South migration among PNG, Solomon Islands and Fiji

This section explores South–South – was supposed to take place six migration among three Melanesian months after its approval. However, countries: PNG, Solomon Islands and this has yet to take place (MSG, Port Fiji. Three aspects are discussed. First, Moresby, 19 Nov. 2012). whether or not South–South migration Two issues have delayed the to PNG is encouraged by existing legal implementation of this initiative. regimes and labour policies. Second, The first issue relates to logistics whether there are established and operationalization of migration international migration networks processes needed to implement that have helped Melanesian workers the Skills Movement Scheme (Non- to transcend geographical distance governmental, Suva, 29 Nov. 2012 and political boundaries and access and 30 Nov. 2012). A technical officer the labour markets of PNG, Fiji and of the MSG said: Solomon Islands. Third, whether and Out of the four countries, two how cultural/historical similarities are members of the MSG [Vanuatu encouraging South–South migration and Solomon] are still carrying out between PNG, Fiji and Solomon the majority of their border work Islands. manually and I think the challenge there is we need to get all four MSG member countries’ border control 5.1 Institutional Factors: Putting systems working together and the MSG skills movement computerised.[…] As MSG members scheme in practice we need to work out a plan or a policy that the four of us can In 2005, the idea of developing discuss. […] It might be a difficult a scheme for the movement of task but it is not too late to start and professionals within Melanesian I think eventually the four countries countries was endorsed by will have, if not similar systems, Melanesian Heads of State. By 2012, then systems that streamline the all Melanesian members had signed processing of visas, of permits. a Memorandum of Understanding (Suva, 27 Nov. 2012) to put the Skills Movement Scheme This comment highlights the in practice. The implementation of monumental task that MSG members this scheme – allowing a quota of have to accomplish prior to the 400 professionals of each country implementation of the Skills Mobility to move to other member countries Scheme. Not only do numerous 23 ACP Observatory on Migration institutional and organizational order for professionals to move reviews have to be put in place, but freely among Melanesian countries, also immigration systems need to be countries have to have united political streamlined. Due to these challenges interests in implementing the MSG it is unlikely that the Skills Mobility Skills Mobility Scheme. Interviews Scheme will be implemented within a showed that this is not the case due short time frame. to wide consensus that allowing for labour mobility would challenge a The second issue relates to an state’s sovereignty. In particular, the interest Melanesian countries have Government of Solomon Island seems in protecting their national labour reluctant to open its labour market. markets. This is due to important Government officers from Solomon differences among these countries, Island mentioned the need to review with PNG and Fiji being much larger the county’s immigration processes in terms of financial resources and and to provide opportunities to the human capital compared to Solomon Solomon Island National University Islands and Vanuatu (Government, to train skilled workers (Honiara, 27 Honiara, 28 Nov. 2012). Fiji, in Nov. 2012).33 A government officer particular, is the country with the explained: largest skilled population that can provide the most professionals I say we are not ready. Solomon to the other MSG countries. Fiji’s Islands feels uncomfortable to be part of any [MSG migration education standards are well above scheme] because, what I would other Melanesian countries (Private say, we are lagging behind the sector, Suva, 28 Nov. 2012). A Fijian rest of the countries in the MSG in government officer said: terms of training, opportunities, Fiji is one of the countries that infrastructure to do more for our has the highest rate of education. skilled and [low-]skilled workers. So we are a power house to send (Honiara, 27 Nov. 2012) people in to your neighbours and This perception was shared by an to help them as well to develop the entrepreneur, who recalled: different industries. [...] That is one of the reasons why the MSG is so If it was freer [labour exchanges] important. (Suva, 27 Nov. 2012) I think it would help with encouraging [work] in-between the The Skills Mobility scheme is attractive countries. But I also think it might to the Government of Fiji as economic become a problem as well. […] [L] growth is slow and it could mean 1,600 et’s say out of all the four countries jobs for its citizens (Non-government, 33 The Solomon Island National University Suva, 27 Nov. 2012). However, in was established in late 2012. 24 South–South labour migration needs in Papua New Guinea

Solomon Islanders might be less tensions, a reality faced by all qualified or less skilled than say Fiji Melanesian countries, the promotion or PNG. So if an employer is looking and tolerance of immigration for the best qualified, […] they [will represents a compromise between be] taking [workers] from outside. the needs for cheap labour and the And unemployment and that sort demands of indigenous workers for of thing might increase. […]I agree with it [migration] to a certain the protection of native entitlements extent, when I feel it will help the (Goss and Lindquist, 2000). workforce currently here [Solomon Island] or if it helps the locals as well. (Honiara, 30 Nov. 2012) 5.2 Absence of networks: Limited labour mobility It is evident that smaller Melanesian among Melanesian countries countries do have more to lose than Fiji and PNG, which are the Outside formal institutional channels, largest economies and those able international migration is supported to determine the terms of regional by international migration networks migration. This highlights the fact that among migrants, former migrants and at the political level there are serious non-migrants (Goss and Lindquist, doubts concerning whether the Skilled 2000). These networks, developed Mobility Scheme will be implemented from social relationships, reduce the as every country tries to protect its costs and risks of migration. With labour force. As a result, South–South the exception of Fiji, international migration of skilled professionals migration networks are poorly among Melanesian countries remains developed in Melanesia. A reason small and dependent on individuals may be that PNG, Solomon Islands (Non-government, Suva, 27 Nov. and Vanuatu continue to experience 2012 and Government, Honiara, 27 the transition from subsistence Nov. 2012). Betts (2011) argues this is agriculture to a broader participation based on notions of sovereignty and in the modern cash economy; where nation-state framing the ideological the emergence of a capitalist labour context in which international market is only a generation old migration is perceived. Unlike the (Non-government, Suva, 29 Nov. movement of goods and services, 2012). For PNG and Solomon Islands, the bulk of migration happens within the movement of people challenges rural-urban and rural-rural areas. national identity and goes to the core of statehood (Betts, 2011). In In contrast, Fiji has a long history of a context of high unemployment, labour migration since indentured political instability and ethnic work took place in sugar plantations 25 ACP Observatory on Migration between the late 1840s and 1920. The workers to the Cook Islands and legacy of the indentured workforce Samoa. There is also a history of in Fijian society is significant as Indo Fijian builders migrating to work in Fijians make up a large proportion of construction companies in Australia the country’s population. These Indo and New Zealand. An academic Fijian migration networks continue underlined: to influence patterns of emigration There has been a category of and immigration to the country trades-people – electrician, 34 (Goss and Lindquist, 2000). In the plumbers, etc. – who have been to last 25 years, Fiji had four coups Kiribati, Vanuatu and the Solomons d’état that generated tremendous to work in these companies. […] political instability. The racial Migration of security workers targeting that followed these political […] both in terms of the Fijian events created a “push factor” for military forces and also in terms non-indigenous Fijian populations of private employment. So they are private security companies, to migrate to places where they felt private transportation companies more secure (Non-government, Suva, that recruit our people in various 29 Nov. 2012). parts of the Middle East as well Migration has evolved to such an as in Afghanistan. And our police extent that it is now considered and military have been in different trouble spots in the world providing a way of improving the economic peacekeeping. In the last 20 years status of Fijian citizens, especially for between 2,000-3,000 thousands skilled Indo-Fijians (Non-government, (sic!) young people have gone to 35 Suva, 27 Nov. 2012). The increasing join the British army. Also there number of migrants has created are many nurses and caregivers in a “brain-drain scenario” where the US. (Non-government, Suva, 29 important numbers of skilled Nov. 2012) personnel – such as teachers, As bilateral labour and trade caregivers and nurses – move to work agreements take place between in other Pacific Island countries. In Melanesian countries, it is possible addition to this sector, the tourism to observe that skilled Fijian workers industry also exports low-skilled move to work in Port Moresby. A 34 Fijians have had access to schools regional adviser highlighted: since the 1900s, leading to at least three generations who have received education Many [skilled] Fijians go to work and training that allows benefiting from in Papua New Guinea. Also to international working opportunities. Solomon Islands, although not as 35 Especially since for landless Indo-Fijians place of birth is not an obstacle for many. And for various reasons: migration. either taking jobs in the tourism 26 South–South labour migration needs in Papua New Guinea

industry […] because Fijians have graduates from the University of the got this skill. Also in business South Pacific are allowed to stay to [sector] there are quite a few Fijians work (Non-government, Suva, 29 Nov. who go and set up small or bigger 2012).36 Immigrants from Papua New businesses. [...] And then there Guinea interviewed in the Solomon are also [professional] Fijians who Islands complained of intolerant just go and work in things such as reactions of the Government and the mining industry or ancillary Solomon citizens towards them industries related to the mining (Non-government, Honiara, 02 Nov. sector in PNG. And you see adverts 2012 and Private sector, Honiara, 27 in the papers in Fiji for people to Nov. 2012). Thus, migration networks go and work in other countries as companies are looking for […] among Melanesian workers remain cheaper options than Australians small. or New Zealanders, especially in the mining sector. (Suva, 27 Nov. 2012) 5.3 Cultural/historical Similarly, some professional Solomon similarities between Islanders stay to work in PNG after Melanesian countries finishing their studies at the University Melanesian institutional structures of PNG (Government, Honiara, 26 discourage South–South labour Nov. 2012). It is easier to find work in mobility, in particular as commercial PNG and as they tend to marry with trade relations between Melanesian PNG nationals. These numbers are countries are relatively new. In reduced considerably for semi- and addition, the stringent visa procedures low-skilled migrants from Solomon and poor development of formal Islands and Fiji working in PNG. In labour sectors have not allowed both cases the numbers of skilled strong networks of migrants among Melanesian migrants are relatively Melanesian countries. But have small despite regional agreements cultural/historical helped encourage have expanded PNG investment South–South migration between PNG, in the region (Governmental, Fiji and Solomon Islands? Honiara, 28 Nov. 2012). In part, the 36 A regional adviser said the following lack of immigration is explained regarding how difficult is to get working due to stringent visa processes visas for Melanesians wanting to work in (Port Moresby, 20 Nov. 2012). For Fiji: “It would be very difficult for them to come and work here anyway. I mean in example, Fiji continues to make it very terms of visas and so on. The immigration difficult for investors to bring other requirements would not allow them. The most Pacific Islanders […] you will find are Melanesian workers to the country. at University of [the] South Pacific.” (Suva, A very small number of Melanesian 27 Nov. 2012) 27 ACP Observatory on Migration

Historical factors point to poorly workers] are not equal. [...] If they developed labour markets in the were, then natural market forces region. In addition, Melanesian would dictate migration. (Suva, 30 culture favours nativism. As a result, Nov. 2012) rights are reserved for citizens and In contrast, Asian workers have a their direct kin (Goss and Lindquist, long history of labour migration to 2000). In this context, migrants have the region. Not only do they have very limited access to local resources. access to capital and well-developed Respondents reported the difficulty networks but there high productivity faced by the children of PNG-Solomon and low labour costs make them much couples to integrate (Government, more competitive than Melanesian Honiara, 26 Nov. 2012). It is possible workers. Since there are labour gaps that these issues have diminished in the market in Papua New Guinea, the relevance of cultural similarities would it be possible that the South– among countries. In addition, the South labour migration hypothesis characteristics of the private sector in PNG applies to Asian migrant in the region limit the role of cultural workers? The following subsection similarities among workers. A regional discusses this alternative hypothesis. advisor evoked: The plane fare from the Philippines is less [to PNG] than the plane fare 5.4 PNG’s labour market: Are from here [Fiji to PNG]. Travel in Asian workers filling the the Pacific is really expensive and gap? labour costs are high. […] And that is assuming two workers are equal. PNG has had a long history of Chinese If I have a choice of taking someone migrants from Guangdong province from the Philippines or from Fiji, after workers were brought in to work which would be the one cheapest in plantations and to set up small to bring in? It is cheaper to fly businesses during the colonial period. someone from the Philippines. The After independence, many Chinese other part of the hypothesis is the migrants – who had established cultural similarity - they understand businesses as storekeepers or the society and therefore they can wholesalers and in shipping, trading, blend in. I think it is true but most running plantations, among others – of these people [working for mining companies] live in camps anyway. decided to take up the nationality of I am not sure that is something Papua New Guinea. During the 1980s, that would be a major determining a new wave of Asian migrants moved factor. But the real issue is that to PNG. These migrants changed the they [the Fijian and the Philippines character of the Chinese community 28 South–South labour migration needs in Papua New Guinea in PNG. Ichikawa (2006) argues that For an employer, there is a big these workers made the Chinese advantage of having Asian workers population more complex as they as they have more power over consisted of ethnic Chinese from East them, especially if they are illegal. and Southeast Asian countries such as They [Asian workers] do not have their wantoks there. […] They are Malaysia, Singapore, Indonesia, Hong a bit isolated. And then there is Kong Special Administrative Region the whole issue of the priority an of China (SAR), Taiwan Province of individual attaches to a wage-job. China and the People’s Republic of (Suva, 27 Nov. 2012)38 China. Mainland Chinese immigrants were no longer from Guangdong Either evading the immigration but also various parts of China like controls or entering as short-term Beijing, Shanghai and Fujian. In migrants, Asian workers have entered many instances the new immigrants the semi- and low-skilled PNG labour had been hired as cheap labour to market in perceived large numbers.39 meet shortages in plantations, the They have higher education skills, construction sector and to start are prepared to work for long hours businesses. As networks developed, and for little pay (Government, Port migrants became involved in trade to Moresby, 8 Nov. 2012). 37 obtain more lucrative employment. Nyíri (2011) argues that in addition In the 1990s, new fuel and mineral to employed labour, ‘Chinese shops’ deposits made PNG an attractive have emerged as the principal retail country for Asian entrepreneurs. This outlet for goods in many towns and led to a third wave of migration linked communities. He found that because to increased Asian foreign investment. ethnic Chinese entrepreneurs remain As part of the investment, Asian as ‘essential outsiders’ they are companies brought considerable highly mobile, use their native place semi- and low-skilled migrant workers connections to do business and into the region. In many cases, these migrants were irregular. A regional 38 Wantok is a term used to denote a person who is related to you. Under this PNG adviser stated: convention, a person is obligated to help his/her wantoks if they claim to be 37 The old Chinese and the new Chinese in need. This adds significant costs to immigrants differ from each other. Recently business interactions, particularly if one arrived expatriate Chinese workers and wantok is having a dispute with another business people tend to view Papua New and individuals from those factions work Guinea through a distinctly Chinese prism closely in business or government. of core and periphery, with Papua New 39 All PNG government officers interviewed Guinea very much at the far periphery. The alluded to the lack of capacity of the old Chinese immigrants follow Christianity Government to deter irregular migration of and can barely speak their original local semi- and low-skilled Asian workers into dialect or Mandarin (Ichikawa, 2006). the country. 29 ACP Observatory on Migration have no interest in integrating into as a result of a bribing culture that local cultures. Therefore, Chinese criminalizes the economy.40 This entrepreneurs elicit both praise perception is one of the reasons why – for supplying a large number of PNG’s local population justifies its people with consumer goods – as antagonism towards Asian migrants. well as hostility. Hostilities include In May 2009, the first nationwide a long list of accusations such as anti-Asian riots occurred in Port unfair competition, smuggling, Moresby. A politician expressed the inferior quality of goods, irregular rationale for the riots saying: immigration, undermining local We want investors but we do not industries and taking local jobs or want robbers. We see the Asians as invading foreign countries just by the robbers, not investors. So they do virtue of their sheer numbers (Nyíri, not have any respect for our laws, 2011:148). they do not have any respect for Similar to Chinese entrepreneurs, our customs, for our people. They Malaysian and Singaporean logging are mafia. We do not need them. So we have given the Government companies are also accused of as of 2009 to clean up the country bringing semi- and low-skilled labour and remove unwanted Asians from to do work in companies financed this country. And as of 2010, the by them. This is considered unfair first Parliament Session, we want competition as PNG has a large a response from our Government supply of workers who could do the regarding our position. (Smith, work while receiving on-site training 2012:100 quoting Noel Anjo Kolae (Non-government, Suva, 29 Nov. Radio New Zealand, 14 May 2009) 2012). A government officer stated: The riots quickly spread to Lae, That is why there are negative Madang, Goroka, Kainantu and social feelings with local people Mount Hagen towns, targeting towards Asians. […] Nothing can be Asian-owned trade stores and food done about it as Asian companies bars. While property damage was are driving migration and they not extensive, there were fatalities: only hire their wantoks as they understand the same language, 40 When discussing why Asian businessmen some of their equipment are packed are thought by government officers of having an involvement with irregular and labelled in their own language, activities, a government officer mentioned so they [low- and semi-skilled Asian that the trade of counterfeit goods, such as workers] understand it clearly. (Port biscuits, drinks and medicines, are brought illegally into the country from Singapore Moresby, 8 Nov. 2012) and Malaysia. Similarly, Chinese businessmen are thought of keeping ties In addition, the high numbers of with local Chinese mafia (Port Moresby, 8 Asian migrants are often explained Nov. 2012). 30 South–South labour migration needs in Papua New Guinea four PNG nationals and three ethnic dependence on wage-labour, low Chinese died during the riots. Among labour costs and porous border – have the PNG population there was a made it much more prevalent than generalised feeling that Asian-run labour mobility from neighbouring trade stores and tuck shops had a Melanesian countries. However, monopoly in an area of the economy there is some South–South migration “reserved” for Papua New Guinean between PNG and other Melanesian nationals (Smith, 2012). countries although not to such a large degree. Ultimately, addressing Asian migration is a matter of political engagement. For the context of this study, what matters is that the factors that characterize Asian labour mobility into Papua New Guinea – strong international migrant networks,

South–South labour migration needs in Papua New Guinea

6. Conclusions

To understand the extent to which 1. Foster economic development in labour mobility to PNG has come rural areas by establishing rural from the neighbouring Melanesian training systems countries of Fiji and Solomon Islands, Migration and urbanization are this study undertook 35 in-depth serious concerns in PNG. To address interviews with government officers, them it is necessary for policymakers academics, private sector people and to consider developing strategies migrants. The interviews explored that emphasise integrated rural three different aspects of a South– development that increase the South labour migration hypothesis number of jobs available in rural areas - institutional factors, international and raise rural incomes. A key area of migration networks and cultural/ work is the establishment of training historical factors. The overall finding schemes. The following schemes are from this study is that migration from proposed. these two countries to PNG has had 1.1 Skills-based trainings for a minimal impact due to historical illiterate low-skilled workers factors, topography and institutional needs to be developed in order structures in Melanesia. These issues, to complement training given together with low productivity and through the formal education high labour costs, have limited the system. This system, practiced labour migration among Melanesian in the Philippines, has proved to countries. In turn, these factors be highly successful as it allows explain why Asian labour mobility people to develop relevant is more prevalent. This is despite a employment skills without hostility among local people who having to migrate to urban areas. feel it is unfair to give employment 1.2 The establishment of private opportunities to these foreigners. sector led training schemes Thus, the study argues that South– that transfer skills to unskilled South labour mobility primarily local workers, such as fast-track comes from Asian countries rather apprenticeship schemes, can than from neighbouring Melanesian become an important tool countries such as Fiji and Solomon to provide training to rural Islands. Three recommendations are population. The mining sector put forward to support South–South provides important lessons in migration between Melanesian this regard as they have invested countries. heavily in human resource 33 ACP Observatory on Migration

development and supported the private sector requires highly skills-transfer from expatriates to specialised professionals. This means national employees. The current limited employment opportunities availability of skilled labour, for nationals unless higher education particularly in the mining sector, institutions work closely with the is a testimony of the success of private sector to update their training this rural-based training skills programmes. system. 1.3 Training systems that foster the 2. Migration policies that foster establishment of micro-enter‐ circular and return migration prises in rural areas are very important as small enterprises PNG is currently experiencing tend to drive economic increased immigration as the result of growth and provide labour economic growth from the extractive opportunities. By focusing on sector. To benefit from this economic providing training to the informal boom, the Government of PNG has sector the Government of Papua to consider encouraging both circular New Guinea could help align both and return migration of highly skilled the capitalist and indigenous PNG nationals through the following perspectives into the labour mechanisms. market and internal migration 2.1 Emigration policies could include regulations that could lead to requirements for students who ‘hybrid’ solutions that benefit all. obtain scholarships, offering The Government of PNG could financial and non-financial establish stronger linkages between incentives to encourage educational institutions and the returning professionals, as well private sector through internship as proposals for a temporary schemes that allow graduates to be return to a home country, better prepared when entering the and measures to strengthen labour force. For example, University national institutions and of Papua New Guinea and PNG virtual professional networks. University of Technology should Examples for bilateral and consider teaching courses that keep regional agreements show that 41 pace with growing industries as policies encouraging the return 41 A private sector interviewee mentioned of migrants, either temporary that these institutions have retained or permanently, have to bear most of its curricula for the last 25 years. This is an important gap as PNG trained in mind the conditions in the engineers lack the required skills. home countries. Removing 34 South–South labour migration needs in Papua New Guinea

obstacles for return migration could help identify skilled, and establishing policies that semi- and low-skilled worker encourage ‘transnationalism’ requirements in a short-time will greatly facilitate the return frame and potentially reduce of highly skilled nationals. the unemployment ratio. The Similarly, more has to be done to recruiting agency could help attract highly skilled Melanesian companies could hire local professionals to PNG. people faster and at lower costs. This recruitment agency could 2.2 The Government of PNG could also control existing employment focus on fostering new Seasonal opportunities. Scheme programmes that allow PNG nationals to work in agricultural areas of Pacific Rim 3. Streamline institutional systems economies such as Australia, to foster South–South Melanesian the United States and New migration Zealand. The expansion of this type of schemes could be very This study has shown that Melanesian important for the country as it countries face important challenges will provide unemployed youth in the development of their labour with opportunities for them markets. Streamlining institutional and their families in the form of processes, such as strengthening remittances, work experience commercial trade relations and and training. This initiative could simplifying visa procedures, could counteract the negative effects provide useful lessons to add of nativism on labour mobility. depth to existing labour mobility This can also have an important schemes. effect on the establishment of 2.3 The Government of PNG Melanesian migration networks. In could consider the creation the long term, these networks will of a government recruitment channel migrants to the Melanesian agency that advertises local job subregion. The study thus commends opportunities, supports people the work undertaken by the to apply and provides assistance Melanesian Spearhead Group, as to those filling job applications. it is clearly important for countries All policymakers interviewed in the subregion to act together, to mentioned the need for the streamline institutional systems, establishment of a rural and trigger policy dialogue and eventually urban database of skilled PNG increase circular labour mobility and expat workers. This database within the region. 35

South–South labour migration needs in Papua New Guinea

7. References

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Smith, G. 2012 Chinese Reactions to Anti-Asian Riots in the Pacific. The Journal of Pacific History 47(1): 93-109. Statistics New Zealand 2008 QuickStats about Pacific People. Available from www.stats. govt.nz. Strathern, A. and P. Stewart 1998 Shifting Places, Contested Spaces: Land and Identity. Politics in the Pacific. Australian Journal of Anthropology 9(2): 209-24 United Nations High Commissioner for Refugees (UNHCR) 2010 Global Trends - Asylum-seekers, Returnees, Internally Displaced and Stateless Persons. UNHCR, Geneva. United Nations Development Programme Human Development (UNDP) 2009 Report 2009, Overcoming barriers: Human Mobility and Development. UNDP, Port Moresby. 2010 World Urbanization Prospects: The 2009 Revision Population Database. United Nations Department for Economic and Social Affairs, Population Division. Available from http://esa. un.org/wup2009/unup/index.asp?panel=1. World Bank 2007 Country Brief: Papua New Guinea. World Bank. Available from http://go.worldbank.org/2248ALHNB0. 2010 Pacific Islands Brief. World Bank. Available from http:// go.worldbank.org/J54LZGNYB0. 2012 Papua New Guinea Overview. The World Bank Group. Available from www.worldbank.org/en/country/png/ overview.

42 South–South labour migration needs in Papua New Guinea

8. Appendix

Interviews undertaken in PNG, Solomon Islands and Fiji

No. Sector Organization Country 1 Government Customs Service PNG Semi-skilled Fijian 2 Beauty salon PNG worker 3 Government Labour & Industrial Relations PNG 4 Government Department of Labour PNG Solomon Islands High Com‐ 5 Diplomat PNG mission 6 Government Fijian High Commission PNG 7 Government Foreign Affairs PNG Regional Solomon Islands Foreign 8 PNG government body Affairs 9 Private sector Telecommunications PNG 10 Private Sector Recruiting Agency PNG 11 Academic University PNG 12 Private sector Hotel Fiji Semi-skilled Fijian 13 Transport company Fiji worker Ministry of Labour and 14 Government Fiji Employment 15 UN Agency UN organization Fiji 16 Government Department of Immigration Fiji Regional 17 Tourism Organisation Fiji organization 18 Skilled PNG migrant Tourism Organisation Fiji 19 Private sector Private Bank Fiji 20 Private sector Hotel Fiji 21 Academic University Fiji 22 Student Melanesian student Fiji

43 ACP Observatory on Migration

International 23 International organization Fiji organisation Solomon 24 Government Central Bank Islands Solomon 25 Government Employment services Islands Solomon 26 Private sector Hotel Islands PNG High Commission in Solomon 27 Government Solomon Islands Islands Solomon 28 Regional body Fishery Islands PNG semi-skilled Solomon 29 Bookstore worker Islands Solomon 30 Private sector Private bank Islands Semi-skilled Solomon 31 workers from Fiji Security firm Islands and Solomon Island Solomon 32 Private sector Hotel Islands Solomon 33 Private sector Security firm Islands Solomon 34 Academic University Islands PNG semi-skilled Solomon 35 Security firm worker Islands

How is Papua New Guinea integrating human mobility into its national and regional plans? Which are the institutional factors, international migration networks and cultural/ historical similarities of South-South labour migration between Fiji, Solomon Islands and PNG? Aiming at answering these questions, this study finally reveals that migration from Fiji and Solomon Islands to PNG has had a minimal impact, due to factors such as Melanesian history and institutional structures, while it argues that South-South labour mobility primarily comes from Asian countries. Thus, it provides some innovative recommendations which seek to foster economic development in rural areas through training systems, encourage circular and return migration through migration policies, as well as to streamline institutional systems so that they support South-South migration between Melanesian countries. EastAfrica

Central database Africa

Caribbean

Senegal

health

labour

Haiti

Nigeria diasporas environment

Southern integration Africa training Timor-Leste

South-South Kenya

return development internal Democratic

migration Republic ObservatoryAngola of the Congo rights Cameroon

displacement trafficking Pacific Tanzania Lesotho statistics gender West Africa remittances urbanization Trinidad and Tobago Papua New Guinea

ACP Observatory on Migration An Initiative of the ACP Secretariat, Funded by the European Union 20, rue Belliardstraat (7th floor) 1040 Brussels - Belgium Implemented by IOM and with the Financial Support of Switzerland, IOM, the IOM Development Fund and UNFPA Tel.: +32 (0)2 894 92 30 - Fax: +32 (0)2 894 92 49

[email protected] - www.acpmigration-obs.org International Organization for Migration (IOM) Organisation internationale pour les migrations (OIM) Organização Internacional para as Migrações (OIM)