Research School of Pacific and Asian Studies State, Society and Governance in Melanesia State Society and in Governance Melanesia

DISCUSSION PAPER

Discussion Paper 2009/5

Parallel States, Parallel Economies: Legitimacy and Prosperity in Papua New Guinea

This discussion paper presents two Lihirian leaders were inspired by Personal Nick Bainton related discussions on different aspects Viability philosophies as they renegotiated & John Cox of contemporary Melanesian economic the community compensation and benefits engagement. We consider pyramid schemes package with the mining company throughout which promise limitless wealth to their 2000-2007 and as they tried to develop investors, claims by separatist leaders in strategies to achieve greater self-reliance Bougainville of the creation of new world and financial independence to address the economic systems and parallel governments so-called resource dependency syndrome. based on self-bestowed royal titles. This is followed by a discussion on a contrasting While apparently obscure and even movement called “Personal Viability” which is deceptive or ridiculous, these movements based upon self-help philosophies that aim to have offered alternative accounts of states cultivate an entrepreneurial persona. and the global economy, and the place of Melanesian states and communities within In the first section John Cox addresses them, which are sufficiently convincing to the recent wave of “fast money schemes”, draw thousands of followers. In Bougainville, discussing institutional and ideological they can involve direct challenges to the links between these scams and Christian legitimacy and authority of the state, and in churches, particularly Pentecostal prosperity Lihir they have been crucial to the generation gospel teachings. He also explores the of local plans for economic and political tensions between Pentecostal views of autonomy. By studying these movements, morality, millennialism and the state which we hope to uncover insights into wider may have contributed to the spread of fast concerns of state and nation building (and money schemes in PNG. In the second legitimacy), and also into understandings section Nick Bainton concentrates upon the of economic development and of prosperity uptake of the Personal Viability movement within Melanesia. in the Lihir Islands which have been host to a major gold mining project since 1995. Elite The Hidden Mechanics of Solomon Islands Budget Processes

Financing the End-Time U-Vistract 2 Harvest: Pyramid Schemes and Prosperity Gospels “U-Vistract Financial Systems” was founded in Papua New Guinea by Noah Musingku, from Tonu in South Bougainville. It emerged in 1998 at the close of the Bougainville crisis and initially promoted John Cox itself as the “Bank for Bougainvilleans”, drawing on Bougainvilleans’ sense of having been exploited by international capital. At the Leading up to the millennial year 2000, peak of U-Vistract’s influence, the President of Papua New Guinea experienced a rush the Bougainville People’s Congress, Joseph of “fast money” schemes: pyramid scams Kabui, described U-Vistract as a “window promising returns on deposits of 100% within 1 of hope” for Bougainville and asked for tax a few weeks or months. While returns of relief for U-Vistract and related schemes this magnitude might seem self-evidently (Post-Courier, 26 August 1999).2 Kabui “too good to be true”, the public response subsequently become a fierce opponent of was remarkable. The schemes spread “like a U-Vistract and more recently described the bushfire”. Thousands raced to make deposits scheme as “lies and bullshit” (National, 23 hoping to make it rich. Some “investors” put May 2004). their National Provident Fund or other long term savings into the schemes while others U-Vistract’s early membership largely sold real estate for fear of missing out on the consisted of Bougainvilleans living, working “fast money” payments. Churches, women’s or studying in Port Moresby. Several high groups and schools all put money into the level Bougainvilleans received large payouts schemes, wanting to cash in on the high from the scheme, the best known being the returns. The Bank of Papua New Guinea then Chief Ombudsman, a Bougainvillean (BPNG), alarmed at the scale of withdrawals highly regarded for his integrity and support from private bank accounts, warned that of governance reform (Australian, 13 May fast money schemes “had the potential to 2000). Others, even students, made a lot destroy the financial system” (National, 22 of money and became notorious for their Oct 1999). Long queues formed outside the extravagant lifestyles. Often money was sent larger schemes’ makeshift offices. Initially from relatives in Bougainville to be invested. lines of people making deposits, they later became lines of angry unpaid investors Alongside U-Vistract ran other Bougainvillean wanting their money back. When the bubble schemes such as “Nekong” and “Millennium”. finally burst, millions of kina had been lost. “Money Rain” was another very large fast Yet the story of the fast money schemes did money scheme that was effectively an agency 3 not end with a salutary lesson concerning of U-Vistract for non-Bougainvilleans. There risk and greed. Almost ten years on, many were at least ten of these schemes running investors continue to wait for their payments in parallel, all relegitimating each other’s and believe that “the money is there” but that extravagant promises. As the pyramid it is being withheld by corrupt government expanded, Bougainvilleans invested on behalf authorities. of others. Soon the scheme was opened up to anyone willing to deposit money, regardless This section takes up the story of U-Vistract, of their origins. Within a few years, some the largest and most controversial “fast money” 70,000 Papua New Guineans had deposited K350 million into U-Vistract alone. U-Vistract scheme, exploring links between U-Vistract also attracted followers in Australia, Solomon and Christianity, particularly in the prosperity Islands and Fiji. In Australia, a small number theology promoted by Pentecostals. The of Queensland investors contributed some intention is to explain how this scam spread AUD500,000 between July and October using religious networks and ideas against 1999. Some were Bougainvilleans working the weak capacity, reach and legitimacy of or studying abroad. This drew the attention state institutions. of the Australian Securities and Investments Commission (ASIC), which stopped the The Hidden Mechanics of Solomon Islands Budget Processes

further spread of the scheme and required Returning to Bougainville, Musingku courted U-Vistract to return the money to its investors separatist leader Francis Ona by trying to 3 (ASIC, 1999). link the Royal Kingdom of Papala with Ona’s Meekamui. This proceeded as far as a Initially, U-Vistract had support from the coronation of Ona, overseen by Musingku PNG Government, led by Prime Minister (National, 23 May 2004). However, as his Bill Skate. Skate’s Treasurer, Iairo Lasaro, promises failed to materialise, Musingku fell exempted U-Vistract and nine other fast out with Ona and retreated to his own village, money schemes from the requirements of Tonu, where he also crowned himself “King the Financial Institutions Act. Skate and his David Pei II” of the Kingdom of Papala. In Deputy are said to have been large investors 2006, Musingku recruited Fijian mercenaries, in U-Vistract and Money Rain. Many Papua provoking the headline “U-Vistract Plots War” New Guineans believe it was their extravagant (Post-Courier, 9 Mar 2006), not to mention a investments (of public money) that exhausted diplomatic incident involving the Governments the schemes’ capacity to pay. In late 1999, of Fiji, PNG and Solomon Islands (whence the incoming Morauta government revoked the mercenaries had entered Bougainville).4 the exemptions and gave the schemes three From Bougainville, Musingku continues to months to pay their investors or be closed attract headlines, most recently for printing down. Morauta prepared a new Financial the “Bougainville Kina”, with the face of Institutions Act, partly in response to the Jesus Christ on the fifty kina note (Sydney unchecked spread of the schemes. The Morning Herald, 8 July 2009).5 new BPNG Governor attacked the schemes, initiating legal proceedings and issuing public warnings (Government of Papua New Guinea, 2000: para 32). These measures resulted in “Inside tracks” and “unruly the collapse of the major schemes, who all coalitions”: payouts and blamed the government for their downfall. patronage

Musingku defied court orders and continued “…If public gossip is to be believed, to operate. He was declared bankrupt (Post- the iniquitous U-Vistract net not only Courier, 15 June 2000) and subsequently enmeshed ordinary families, but dozens charged with contempt of court for continuing of institutional investors, the boards of to solicit deposits. Musingku attempted to management of schools, the elders of set up another money scheme, the “Royal churches, and perhaps most significantly, Reserve Bank of Papala”, but police and a considerable number of members of BPNG officials raided the new pseudo-bank Parliament. It seems possible that it is and closed it down. In 2002, Musingku fled to these elected or appointed leaders who Bougainville and thence to Solomon Islands. are the most unwilling to reveal their In Honiara, as the “Royal Assembly of Nations exposure to U-Vistract. For how will they and Kingdoms” (a fictional alternative United explain their action in “investing” public Nations), Musingku offered assistance to money in U-Vistract, fully aware that the Solomon Islands Government (SIG). the same funding was ear-marked for The deal would have paid Musingku USD10 projects and electoral advancement? They million for settling SIG debts of SBD1.7 billion cannot. So these experienced and well- (USD350 million). Musingku would pay in educated people are consumed with shame “U-V Dollars” (Fraenkel, 2004: 154). This and embarrassment as a result of their absurd transaction was nearly approved. actions. Above all, they do not want their However, a more substantial arrangement involvement with U-Vistract to come to between SIG and the Australian Government light, and they will give only the most meant Musingku’s time in Honiara was lukewarm response to responsible attempts limited. He again fled, before the arrival of to bring Mr Musingku to account…” the Regional Assistance Mission to Solomon (Editorial, National, 11 February 2005) Islands (RAMSI). Back in PNG, Musingku unsuccessfully approached Somare, the Not everyone loses in a pyramid scheme: new Prime Minister (Post- Courier, 25 Sep some early investors may actually receive 2003). the promised payments. They then validate The Hidden Mechanics of Solomon Islands Budget Processes

the schemes for subsequent investors by as his investment was successful and he 4 demonstrating that the money really is there was able to repay the parliamentary fund. and that the scheme works. This “evidence” The Clerk had also taken money from United then fuels a mass rush into pyramid Church groups in his own area to invest in schemes. However, it would be naïve to the scheme (National, 29 June 2007). think that U-Vistract functioned on a rational and orderly “first come, first served” basis. Early payments to prominent and respected people generate interest and confidence Fast money and religious in a scheme. Targeting politicians and organisations bureaucrats may also help the scheme to avoid being investigated or may compromise Fast money schemes made many connections the reputations of others in positions of with religious groups. At the community level, responsibility, as suggested in the comments many church leaders, congregations and above by the editor of the National. other church bodies invested in the schemes and some even acted as promoters. A United Anthropologist Katherine Verdery, studying Church women’s group attracted considerable pyramid scams in Romania, argues that attention when they were left stranded in Romanian scams were established to Port Moresby on their way to a regional mobilise savings and redistribute these church meeting in Samoa. Apparently a resources to an “inside track”. Those already involved with the scam would always be Bishop had lost the women’s funds in the rewarded, regardless of their notional position Money Rain scheme (Post-Courier, 23 Aug in the “queue”. Verdery sees these people 1999). In another incident, a United Church as members of “unruly coalitions”: informal Bishop invested K50,000 of church funds in groups with common political or economic U-Vistract, losing the whole amount. Salaries interests, including criminal activities (Verdery, for church executives were not paid for a 1995: 656-664). There are indications of year but no disciplinary action was taken. something similar working in PNG. Although the nature of the case makes evidence The United Church was not the only historic extremely difficult to produce, some of the mainline church to become involved in political links with pyramid schemes are on the schemes. However, other churches the public record. As noted above, U-Vistract responded more decisively at an institutional and other money schemes flourished under level. A Lutheran congregation in Lae was patronage from the Skate Government and drawn into the scheme by a former pastor were given exemptions from a range of but, because of these activities, he was legislative requirements. subsequently expelled from the church. Catholic and Anglican clergy were quick to Prime Minister Bill Skate and Treasurer Iairo warn against the schemes, although this did Lasaro, publicly identified as “Born Again” not stop individuals from investing. Perhaps Christians. Skate’s Government sponsored a the congregational governance and funding visit of the televangelist, Benny Hinn (Gibbs, structures of the United Church and various 2005; also Jorgensen, 2005). Lasaro was an Pentecostal Churches made them more elder with the Christian Life Centre (CLC), a vulnerable to fraud than more hierarchical Pentecostal church Musingku also attended. churches. CLC members were allowed to invest in U-Vistract, even non-Bougainvilleans. Pentecostal networks supported U-Vistract Senior public servants are believed to have (Gibbs, 2005). Three Pentecostal pastors “borrowed” government money to invest in gave written character witnesses for Musingku the schemes, returning the principal and during his trial for contempt of court. Pastor profiting from the exercise. The Clerk of Bob Lutu, Deputy Senior Pastor for the CLC, Parliament, said to have been the key contact stated that Musingku was “a Born Again person for the Money Rain scheme (another Christian… who faithfully attends Christian large scheme feeding into U-Vistract) among Life Centre…” (Lutu, 2000). “It has been our politicians and parliamentary employees, experience that the Church income was at a invested K300,000 of parliamentary funds high level when members of the church were into Money Rain. He escaped prosecution receiving returns on their investments under The Hidden Mechanics of Solomon Islands Budget Processes

the programme.” Many members invested in the scheme and donated this income to Robbins (2004b) distinguishes older 5 the church, funding a new building, social charismatic and Pentecostal movements from programs and the pastor’s own vehicle. Pastor “Neo-Pentecostalism”, with its emphasis on Bob Lutu was even said to be on the board prosperity. This division corresponds roughly of U-Vistract. He and other pastors endorsed to the development of Pentecostalism in PNG. U-Vistract at Sunday worship and promoted Initially Pentecostal missions were based the scheme to members. Their preaching in rural areas and, like mainline churches, also denounced BPNG and those within the were involved in welfare and service delivery church who were opposed to fast money activities. The Four Square Church is an schemes. As U-Vistract money dried up, the example, having recently celebrated 50 role of pastors promoting the scheme and years in PNG. In the 1970s, a “second wave” investing church funds came under scrutiny. of Pentecostalism arrived in urban areas and The CLC split into two congregations, partly attracted a more highly educated following, due to divisions over U-Vistract. In 2006, the who were welcomed into lay leadership pastors involved were called to account and positions (Jorgensen, 2005: 448). Educated the church audited their finances. Eventually urban Pentecostals have formed a particularly a formal apology was made and a service of responsive audience to prosperity teachings. reconciliation held. Pentecostal churches teaching “prosperity theology” are growing (Robbins, 2004a; To be fair, not all Pentecostal churches Jorgensen, 2005). Papua New Guineans were involved in money schemes with the are increasingly exposed to American same institutional enthusiasm as the CLC. televangelists, such as EMTV broadcasts 6 The pastor of the World Outreach Christian of Dr Creflo A. Dollar. These preachers Centre, a breakaway from CLC, was “red hot teach that faithfulness to God will result in against the schemes”. Individual pastors from substantial material rewards, especially if the Foursquare Gospel Church in Madang the appropriate donations are made. Other and Rabaul followed the CLC trend of using international evangelists have also conducted their positions to promote the schemes but mass rallies in PNG: Prime Minster Bill Skate were rebuked by the General Secretary and hosted Benny Hinn, a televangelist notorious removed from ministry. Gibbs (2006: 122) for his ostentatious wealth (Gibbs, 2005). notes the strong central organisation of the The Malaysian televangelist, Dr Jonathon Foursquare Church, which may have acted David, also regularly tours PNG. According to as a check on the activities of individual U-Vistract, Dr David endorsed Musingku in a pastors. prophecy (U-Vistract News, 2001). Describing the “prosperity gospel”, a United Church pastor succinctly observed, “The Fast money schemes and the common understanding is that, if you’re prosperity gospel Christian and poor, there’s something wrong with you because God wants you to be rich”. He saw this teaching as common within The connections between fast money and Pentecostal churches and thought it was religion are not only at the level of personal also starting to influence mainline churches and organisational networks but extend to (cf. Eves, 2008: 20 n6). The teachings of ideological affinities, particularly those shaped this type of prosperity gospel go well beyond by the “prosperity gospel”. For Pentecostal spiritual reward, or even reward for hard Christianity globally, prosperity gospels are work, by promising immediate transformation displacing the Protestant ethic of hard work of Christians’ lives in very material and and thrift. Where older Pentecostal attitudes worldly ways. Christians should expect to to money were more ascetic, prosperity be affluent and should see new cars and theology promises that God will reward other status-oriented signs of wealth as tithing and other practices with even greater divine blessings. These ideas are very much material returns. This reflects a “magical” consonant with the promises of fast money approach to generation of wealth and even schemes. Prosperity theology provided a sanctifies consumerist desires and material ready language which Musingku used to aspirations (Robbins, 2004b: 137). sanctify his fraudulent activities. The Hidden Mechanics of Solomon Islands Budget Processes

weakness’’. He said: “U-Vistract will 6 The prosperity gospel valorises and not pay its investors until they become sanctifies risk-taking or entrepreneurship,7 born-again Christians. “Every Papua New creating a strong sense of moral entitlement Guinean, whether you are an investor or needing evidence of fulfilment. The need not, a faithful Christian or not, have to confess that Jesus is Lord.’’ for authentication of the prosperity gospel meant that Pentecostals were already He assured the clients that “the money expecting some mechanism that would was already in the country, that’s why deliver economic transformation. They you see the value of the kina increasing were therefore predisposed to accepting again’’ (the kina has fallen steadily in the U-Vistract. When pastors accepted U-Vistract past week against the Australian and US money and claimed it as a gift from God (eg dollars after rising earlier in the year). Lutu, 2000), this reflected the explanatory If payments were to be made, Mr Ariku power of the prosperity gospel, not a naïveté said, it would be done strictly in line with concerning money itself. the Ten Commandments of the Bible. “A person should not be a smoker, a womaniser, a gambler, if he or she wants to receive his monies from U-Vistract. We Pentecostals and the state will screen everybody properly before we make payouts.’’ He claimed the payouts While prosperity beliefs may have made would be made in three phases. “Do not U-Vistract seem like “God’s answer to the ask us about the timing. We are not in the business of disclosing dates of payouts. poverty Christians were facing” (to quote one But we will do it according to God’s will pastor), educated urban Pentecostals were and timing,’’ Mr Ariku said. also exposed to repeated public warnings (Post-Courier, 31 May 2001) from the Bank of PNG against the fast money schemes (eg. Bank of Papua New Pentecostals in Africa, Latin America and Guinea, 2005). How could devout Christians elsewhere have actively opposed corruption who supposedly submit to state authorities (eg. Meyer, 2004: 465). This is usually (Eves, 2008: 4) ignore these warnings from based on ideas of personal integrity, rather a government agency? I now explore three than a developed theology of the state related themes relevant to this question: (Smith, 2007: 210). Studying corruption and personal morality, millennialism and “winning “419” fraud in Nigeria, Smith (2007: 211) the state”. demonstrates how Pentecostal Christianity has narrowed the sphere of public morality Personal morality to focus on personal behaviour. Eves (2008: 11-12) makes a similar point in relation to U-VISTRACT- CHANGE AND GET Papua New Guinea, where personal morality PAID and piety have become part of the language U-VISTRACT investors have been told in which political issues are debated (Hauck, to clean up their act if they want to Mandie-Filer and Bolger, 2005: 22).8 get their money back and with profits. Supporters of the so-called “fast money’’ Musingku presented himself as a sincere scheme gathered at the East Boroko Christian and claimed U-Vistract was a house of principal officer Noah Ariku Christian ministry (see below). When the yesterday. Mr Ariku reportedly told the scheme ran out of money, a U-Vistract officer people that only born again Christians addressed investors and informed them would be paid. U-Vistract is one of the that only born-again Christians would get schemes that promised thousands of Papua their payments. U-Vistract’s Christian moral New Guineans huge dividends for their credentials were impeccable and drowned investments. Many are still waiting. Those out the more sober warnings of BPNG. Many who gathered after hearing rumours of a investors believed U-Vistract’s claims that mass payout to come were met with gospel BPNG was “jealous” of U-Vistract, or that a songs and a scripture reading from 1 Timothy, talking about the love of money corrupt government wanted to appropriate being evil. Mr Ariku told the people U-Vistract’s investments. Reduction of the “God knows that money is everyone’s public sphere to personal morality has other implications. The role of the state becomes The Hidden Mechanics of Solomon Islands Budget Processes

subsumed by religious imperatives. Gifford to U-Vistract investors as a result of the (2004: 167-8) argues further that Pentecostal delayed payouts. Drawing on premillenial 7 emphasis on personal morality and images of cosmic battle, Musingku claimed evangelism distracts from questions of service that U-Vistract systems were Godly systems delivery and institutional strengthening–“only fighting the powers behind “globalism”, which the Word of God can change society for the has coopted mainline churches, who are better and not governments”. As Eves (2008: “feeding off the World Bank” (U-Vistract 20) puts it, “evangelism and prayer take News, 2001: 11).9 the place of political activism”. U-Vistract’s Christian ministry pitted evangelism and Unlike “globalism”, U-Vistract will guarantee prayer against the coercive and corrupt self-sufficiency to all Papua New Guineans power of the PNG state. and eventually citizens of other developing countries (U-Vistract News, 2001: 11). Millennialism and good governance Musingku used this critique to develop his own “ten step program” which would overturn “U-Vistract officials have informed their worldly financial systems and bring about clients that the Company is a Christian the “salvation and/or rescue of our land Ministry commissioned to finance the from all foreign domination” (Royal Reserve End-Time Harvest...” Bank of Papala, 2002). The “ten steps” “…the organization is not a money scheme focussed on stages of suffering and conflict aimed at cheating people or making akin to premillennialist beliefs concerning overnight millionaires. The organization is the “tribulation” and end times. Musingku’s here to promote Christianity, peace, justice economic and spiritual nationalism sits and equality.” comfortably within Jorgensen’s “Third Wave” “The organization is here to ensure that Pentecostalism. “Third Wave” Pentecostalism grassroots citizens not only accept Jesus is remorselessly expansionist but works Christ as their personal saviour but also to in the currency of particular nation states. ensure that each family has enough food Countries or groups of countries are targeted to eat each day, enough money to buy for prayer and mass evangelism. The borders clothes, enough money to pay for school of “spiritual warfare” correspond to secular fees, accommodation, transport and all polities and may even intrude into local other basic necessities of life.” cultural histories (Jorgensen, 2005). (U-Vistract News, Nov 23, 2001, Vol1, Issue 12) Winning the state

Eves (2008: 19-20) argues that millenarian “OPPOSITION Leader Bill Skate expectations of the coming end of the world yesterday urged all Christians in the are fatalistic and so discourage commitment country to “rise up and become politicians, to governmental structures. Poor government prime ministers and departmental heads, services and corruption are explained in as the ones now in office were liars terms of millennial timetables and even and a bunch of hypocrites’’. Speaking serve to validate those expectations. at the launch of the PNG Evangelistic Premillennialist Christians have often voiced Association, Mr Skate said successive hostility to the United Nations and other governments as well as the present leaders international institutions as they identify them had failed the nation. He said that he had as precursors of the “one world government” lost total confidence in the government which will be headed by the Anti-Christ bureaucracy and administration. He said (Jorgensen, 2005: 444-5). “wicked people’’ were running the nation and called on Christians to show that there Musingku’s claim that U-Vistract will “finance was hope at the end of the day. He urged the end-time harvest” locates the scheme all Christians to put Jesus Christ as the within these premillennial ideas. He also head of the nation and as the “bridge” to identifies “globalism” as something driven growth and prosperity.” by the World Bank and other institutions (Post-Courier, 25 Sep 2001) in “the interests of the devil”. “Globalism” is responsible for oppression of “third In tension with the millennialism just world nations” and, particularly Christians. described, there is another Pentecostal trend “Globalism” has also caused much suffering that engages with the state by seeking to The Hidden Mechanics of Solomon Islands Budget Processes

“shape the nation in their own image, to sincere Christians. It is far from a complete or 8 accomplish their project of a Christian nation” representative treatment of Pentecostalism (Roca, 2007: 322; cf. Coleman, 2000: 222-3). in PNG. The bias is produced by starting Because of their sense of moral superiority with U-Vistract and exploring how the scam (Smith, 2007, 211), Christian professionals spread. Of course, Pentecostals were not have a unique mission to guide the nation (Bill the only ones involved: many other non- Skate10 (above); cf. Marshall 1995, 251-2, Pentecostal Papua New Guineans were also quoted in Smith 2007, 211). Pentecostals taken in by fast money schemes. However, have been successful at attracting successful prosperity gospels and other related beliefs people (Jorgensen, 2005, 448). In turn, this did make PNG’s Pentecostals particularly has led to the establishment of informal vulnerable to participation in the U-Vistract networks within government bureaucracies scam. Bill Skate’s born-again “inside track” and other centres of power. Having “born was also highly significant in the early again” Christians in positions of influence success of U-Vistract and related schemes begins to realign state institutions towards such as Money Rain. church goals, especially evangelistic ones (cf. Coleman, 2000: 191-2). Hence it is This is not to imply that Pentecostals and appropriate for the state to pay a tithe to money scams are co-extensive or that the churches (Eves, 2008: 4). Some further Pentecostalism everywhere is invariably pre- implications may perhaps be seen in the disposed to facilitating the spread of fraud. In recent investigation of a high level Finance PNG, not all Pentecostals were involved in official, also an Assemblies of God pastor, money schemes and many other Christians who is alleged to have made illegal payments joined the rush without being Pentecostal. from public funds (National, 5 June 2006). At Many pastors who were heavily involved least some of these monies are suspected to have since repented or else been removed have been used for church activities, such as from office. This demonstrates that there is a buying land for the new Jubilee University, run capacity for self-critique within the movement. by the Assemblies of God. Here the state has It may even be that this self-critique provides been reduced to a mere resource to support the kind of grounds for engagement with evangelism and church expansionism. fundamentalist Christians that Eves (2008: 20) warns are difficult to locate. Musingku, As loyalty to the state is encompassed on the other hand, has not renounced his by loyalty to fellow Christians, ideas of ways and continues to produce materials good governance become blurred. Smith explaining the imaginary progress of his (2007: 217) gives an example of a devout payout system. He does so using the language Pentecostal doing business with a politician, allowing him to launder stolen money. and imagery of “Third Wave” Pentecostalism, Because the politician in question was a embellished with idiosyncratic representations fellow Pentecostal, the businessman was of Bougainvillean traditions and his own untroubled by moral questions around the flamboyant claims to kingship. origins of the money. Smith attributes this to the ability to separate private morality from secular business and economic life. This Acknowledgements example also illustrates an earlier point: prosperity theology allows people to claim money as a divine blessing, regardless of its Sincere thanks to Albert Ayius at the National origins (Smith, 2007: 213). The willingness of Research Institute for his assistance. Likewise CLC Pastors to accept U-Vistract money and my gratitude is extended to staff at BPNG to support Musingku against state authorities who provided important data on fast money provides a similar example. schemes. Thanks also to Anthony Regan and Richard Eves at ANU for sharing obscure materials and to Martha Macintyre for support and guidance in writing on this topic. Fr Pat Conclusions Gesch at Divine Word University has also provided generous intellectual hospitality and The preceding discussion draws an encouragement. All errors are my own. unflattering picture of Pentecostals in PNG. This is unfair to many well-intentioned and The Hidden Mechanics of Solomon Islands Budget Processes

Personally Viable years and the palpable decline in national living standards can be attributed to the lack 9 Melanesians of entrepreneurialism–or Personal Viability. Hence PV is defined very much in financial Nick Bainton terms as part of a broader framework of capitalist economic development that should be embraced by each Papua New Guinean. The significance of these fast money schemes is thrown into further relief through comparison The PV course is intended to deliver the kind with the Personal Viability movement which of education that will unleash Papua New aims to develop an entrepreneurial class Guineans from those constraints that impede and to counter “get rich quick” aspirations. economic progress and the improvement of Although Personal Viability is a national living standards. Tam’s vision is that Papua phenomenon in Papua New Guinea, I am New Guinea might achieve self reliance interested in the ways in which it has been and financial independence by transforming adopted as a development strategy by its citizens from grass roots subsistence local leaders in the Lihir Islands in New farmers bound by a world of custom and Ireland Province in the context of large scale parochial economies, into self sufficient 11 mining operations which began in 1995. entrepreneurial capitalists, active in a national When Lihirian leaders were introduced if not global market. The sentiments of PV to the Personal Viability course in 2003, reflect a mixture of bottom-up development, they hoped that the strategies and values self sufficiency, Christian morality, a neo- propounded in the course would address Protestant work ethic, Western individualism Lihirian dependency upon mining and the and faith in neo-classical economics. It is associated economic inequalities that have a jumble of nationalist and entrepreneurial devastated Lihirian society. This process rhetoric, designed to compel individuals to sheds new light on the ways that Melanesian play their economic role for themselves and people respond to and manage political and their country. economic change, and how they view and choose paths to prosperity and economic PV has been endorsed by the National development. In this section I begin with Government and various religious institutions a description of PV and the content of the who promote it as the new answer for course, particularly as it has been presented Papua New Guineans. The Government in Lihir. This is followed by a discussion has regularly used the course for capacity on the unique ways that Personal Viability building exercises, and there has been a has been integrated into the Lihirian mining growing interest among community groups compensation and benefits agreement and looking to advance their own grassroots how it is practiced and perceived in daily economic activities (see Nalu, 2006; and contexts. Unage, 2006). In 2007 Tam took PV to Solomon Islands. The Government Caucus The Personal Viability course (often described reportedly endorsed PV as the model for simply as “PV”), was created in the late 1990s future economic development, and awarded by Samuel Tam, a Papua New Guinean- Tam the Cross of Solomon Islands in born Chinese businessman, who argued that recognition of his assistance. Papua New Guinea can become a “viable” nation. For the past ten years, Tam has been Born of Chinese parentage in Rabaul, Tam taking active steps to reverse what he see is a reserved man, somewhat suspicious of as negative trends in Papua New Guinea expatriates, and highly determined to witness with a view to transforming the country change throughout Melanesia. He is tertiary from the “grassroots” up. Where politicians, educated, experienced in corporate business bureaucratic planners and consultants have and state politics, and affectionately known searched for policy reform and the right to PV followers as “Papa Sam”. His Chinese formula for distributing wealth, services heritage elicits mixed responses from different and infrastructure, Tam has prescribed groups. For some he represents the new strategies that put the onus back on the wave of successful Asian entrepreneurs in individual. According to Tam, the apparent the Pacific (see especially Crocombe, 2007). development “failures” over the past thirty In these instances his ethnic identity does not The Hidden Mechanics of Solomon Islands Budget Processes

carry the same racial baggage held by kiaps, managers linked within his politico-economic 10 NGO advisers, volunteers, missionaries and model. emissaries of the Australian Government deployed to keep a watchful eye on foreign This national plan hinges upon a complex aid. For many others, mixed feelings of grading system for PV followers, whereby ambivalence and hostility towards Asians “PV grades” or ranks are achieved by colour their response to PV.12 completing various levels of the PV course and the measuring of individual achievement Course participants are told various in entrepreneurial endeavours and other renditions of Tam’s rags to riches experience, facets of people’s lives, such as church beginning with the death of his father in leadership or family management, or the the Second World War, his education in ability to meet customary obligations. Australia, early entrepreneurial activities in The attainment of a bronze, silver or gold Port Moresby, his leading involvement in ranking will objectify social and economic the Stret Pasin Stoa scheme, and eventual status and determine how much money PV financial demise that inspired him to develop followers can borrow from the Grassroots PV.13 The story of a businessman of migrant Bank. According to Tam, course completion origins, with few familial ties, values wholly and entrepreneurial achievements will derived from modern society and no with officially determine individual social “class”, customary obligations is now being held up supposedly motivating further individual for Melanesians, of all classes, educational economic and political ascension. backgrounds and cultural origins to admire and aspire to. His story has entered what Errington and Gewertz describe as the Two Week Transformation “intersection between different narratives of the desirable and the feasible” (2004: 15); it is presented as the apex of achievement and PV courses are usually held in village the new definition of reasonable expectation community halls or church buildings to and accomplishment.14 emphasise “grassroots accessibility”. In 2004 it cost 200 kina to participate in a basic The PV course is part of Tam’s wider two week course. These are open to all program for national development that he adults, regardless of their education or work envisages will be driven and administered experience and it is anticipated that children by his Entrepreneurial Development Training will begin learning PV through the PV Home Centre (EDTC); however, this programme School Program. Communities can apply to currently exists only in an embryonic form, the EDTC for PV trainers to come to their and national implementation has not yet been area if there is not already an established achieved. The courses are taught by “trained EDTC program in their region. teachers” certified by Tam’s EDTC, working as faithful disciples to spread the good news Courses typically begin with a short lecture of his modernist doctrine. Within the EDTC on the personally viable modern Melanesian there are various PV courses, ranging from based on the following definition: entry or “village level” to more advanced business courses for those who are already PV is the perpetual self-discovery, “PV literate”. His plans also include the perpetual re-shaping to realize one’s best establishment of a national Grasruts Benk self, to be the person one could be. It is (Grassroots Bank) to act as a microfinance the sustainable development of human institution for PV members, and the Grasruts resources with individual skills to be their Yuniversiti (Grassroots University) which will best. PV involves the emotions, character, have centres around the country, teaching personality, deeper layers of thought and PV and other related courses, and will act as action, adaptability, creativeness and bureaucratic hubs for the administration of vitality. And it involves moral spiritual PV related programmes. These institutions growth….it is about finding yourself and and his administrative system are designed owning your self. (Tam, 1997: 11) to apply the total PV package throughout the land to create a nation of shop keepers and Each day begins with prayers and the recital of the PV and national anthem, designed The Hidden Mechanics of Solomon Islands Budget Processes

to foster national pride and individual you feed him today, teach him how to fish obligation. The course is structured around and you feed him for a lifetime”. Ultimately 11 the ideologies of the entrepreneur and the participants are taught important lessons teaching of basic micro economics and after in the rhetoric of possessive individualism, ten days participants are expected to be particularly as it shadows liberal democracy completely familiar with the Entrepreneur’s and promotes the individual as proprietor of Doctrine (taken from the official creed of the the self, who owes nothing to society and is Entrepreneurs Association of America). free to act on their own individual conscience. What Tam seeks to foster in Papua New Grounded in quasi world systems theory Guineans and the nation as a whole reflects and neoliberal rhetoric, PV aims to create Hobbes’ “self-moving, appetitive possessive successful entrepreneurs who can reverse individual, and the model of society as a the economic trends of the past millennium. series of market relations between these Using terms such as core and periphery, individuals” (Macpherson, 1989: 265). marginal and centre, and first and third world, people are encouraged to think of the ways in which Western countries have progressively created conditions of dependence for Practical lessons in self countries like Papua New Guinea. Borrowing mastery heavily from neo-Marxist critiques of Papua New Guinea’s post Independence economy For apprentices of the school of Personal (such as Amarshi et al, 1979), the idea is to Viability, the course is not all pithy self- illustrate the global exploitation that keeps empowering aphorisms. Students are countries with people of predominately darker assessed and expected to meet deadlines skin on the margins and under the control of for small assignments and group tasks. There the countries in the centre with predominately are daily exercises in “grassroots maths” white skin who are in positions of authority that teach basic requirements for running and relative luxury and wealth. Papua New trade stores and other small businesses. Guineans are presented as cheap labour Compared to the time devoted to reciting and nameless peripheral villages are the and rote learning anthems and mantras, a sites of necessary labour power reproduction remarkably small proportion of the course for capital intensive centres (cf. Fitzpatrick, is actually dedicated to these pragmatic and 1980; Meillassoux, 1981). In the PV courses useful skills. These exercises are built upon conducted throughout Lihir, many participants each day over the period of the course, immediately made the link with the mine and and as a marker of grassroots authenticity recounted their experiences as “cargo boys” participants are told to do away with ideas of and “work boys”. Much of this conversation “laptops and supercomputers”, and to start echoes a more general dissatisfaction among using their own “neck-top computer”. Drawing Lihirian employees concerning employment upon Papua New Guinean agricultural policies and practices of the mining company capacities, Tam encourages people to plant that appear to privilege expatriates over “money gardens”, a PV term that not only Lihirians. refers to cash crops and market produce, but any small entrepreneurial endeavour that Inadvertently demonstrating the internal “grows” money. There is a strong emphasis contradictions of PV ideology, the next stage on harvesting “nature’s abundance that is of the course emphasises that personal given to Papua New Guineans from God”, failure, poverty and inequality are not the shifting people’s focus from being custodians result of a world system that reproduces or stewards of God’s creation to exploiters injustices, but a lack of Personal Viability. 15 On the one hand people are told that their and successful managers. ‘plight’ can be understood through a structural analysis of global capital flows, and on the Within the rubric of personal transformation, other hand the onus is put back on the participants are taught how to efficiently individual; no longer can people blame the manage their daily finances, and how to say Government, isolation, or global history. This no to the demands and requests of their is reinforced through the repetition of popular relatives. For the PV minded, it is important NGO slogans, such as “give a man a fish and to always ask how much money can be The Hidden Mechanics of Solomon Islands Budget Processes

made from a particular activity and how investments (economic), ability to meet 12 can personal performance be improved? projected business targets and maintain Participants are urged to compare their daily satisfied customers (law of success), and routines with the following time chart for the finally the ability to fulfil obligations in all areas ‘average village person’: of life, such as business, family, custom, or church (integrity). Productive–gardening, ploughing, weeding, planting; feeding livestock; The grading system assumes a lack of fishing; building; selling produce; putting motivation among Papua New Guineans; the [nuclear] family first. the various ranks are supposed to persuade people to achieve a higher grade that reflects Unproductive–gossiping; waiting for individual earning capacity, credit ratings opportunities or handouts; visiting and supposedly a greater contribution to relatives (wantoks); sleeping during the society. Grading is to be conducted annually day; sitting idle around the village; giving by EDTC accredited grading supervisors. In dinau [loans]. 2004 PV followers could purchase an official “EDTC Are You Viable?” badge with the This analysis is coupled with warnings not name of the recipient embossed, to be worn to waste their time, their most valuable proudly to display one’s rank and encourage asset: “if you cannot control the time you others to improve themselves. have left in your life you will find it very difficult to control anything else…Time is Grading essentially involves verifying the running out quicker than you think!” (Tam claims of the PV follower: what activities 1997: 28-29). In this new order time is have been completed; what are the annual privatised and individuals are responsible for its effective use. These lessons also seek to profit margins; have expenses, surpluses transform generic notions of village relations and savings been recorded, and where they by positing the individual (and the nuclear are held; have sales and productivity reports family) as a paramount value. In practice been produced; and what is the quality of the this tests the moral grounds for relationships, goods and services being sold. Inspectors revealing the deep connection between should report on the morale of the “Team” different forms of wealth transaction and (family, or staff who work underneath the individual moral identities. Learning to favour graded individual), which means assessing personal ambition over collective stability whether younger family members only means economic imperatives must outweigh contribute because they fear retribution, or social necessities. whether they fully appreciate all the benefits that PV can bring into their lives. Ultimately PV encourages a heightened self consciousness and intensifies self derision in the name of Self discipline personal development.

PV is divided into the “four growth disciplines”: The entire process from reflection to productivity discipline, law of success conversion (and public testimony during the discipline, economy discipline, and integrity course graduation ceremonies) is significantly discipline. These disciplines, which can be theological in tenor. What emerges from this measured, form the basis of the PV grading constant assessment and self-reflection is an system. This is an array of measurements extension of the Christian moral ethos of self designed to gauge an individual’s viability examination so that it becomes a natural part and quantify their ability to “add value to of the modernising process for the aspiring themselves and commodities” (Tam, 1997: subject. Regular grading increases people’s 36). By measuring the quantity sold, or the openness to the people and institutions profit achieved, and the rate of expansion identified with the power and success of the and personal progression, “viable people” larger world. There is also a clear redemptive can prove that they are constantly “adding strain, where the old “handout mentality” value”. These disciplines specifically target ways register as the analogues of sin. PV economic output (productivity), savings and adherents are urged to make a “break with the past” so that they might step forward into The Hidden Mechanics of Solomon Islands Budget Processes

the liberating freedom of economic rationality. PV in the Lihir Islands While PV is not a religious movement, Tam 13 does draw a certain moral justification for his teachings from Biblical Scripture, and Prior to mining there were few economic there are strong parallels with the type of activities taking place in Lihir and minimal prosperity theology described by Cox. engagement with both the colonial administration and the new Independent Government. Many Lihirians interpreted the mine as the fulfilment of prophesies Collective viability, or for radical change that emerged in earlier instability? politico-religious movements throughout the 1960s and 70s (see Bainton 2008a). This has also encouraged the belief among Lihirians One of the ways people are encouraged that they own the mine, and fostered the to perform their viability is by organising unrealistic expectation that all Lihirians will their family according to corporate structure, benefit equally from the project. Even though where each member continually proves their most of the younger generation are sceptical productivity by contributing income towards of earlier esoteric interpretations, nearly living expenses. Weekly meetings should everybody still expects that the company be held, and records must be kept to ensure will deliver unconditional and equalising productivity levels increase; here the nuclear economic development. Consequently this family is the base model for micro-collective has generated an ambiguous and often enterprise. Supposedly this will instil the strained relationship between Lihirians, the PV mentality at the home level, eventually company and the state, played out in a reinforced by a community of like-minded confusing battle over the roles of “patron” families. and “client” (cf. Toft, 1997).

The next level is the formation of village based Since mining began, the Lihirian population PV clubs, or collectives that pool resources, has steadily increased from around 5500 finances and labour for individual and group people in 1980 to some 14000 in 2007. projects. Some function as a microfinance Only a minority of Lihirians have become resource, providing small interest-free loans full-time wage earners and not everyone to members (anything up to K200) to start has benefited from the project in the ways another money garden project, pay school that they anticipated. During the early stages fees or for other emergencies. From Tam’s of the operation when the company began perspective, when left to their own devices releasing the first compensation and royalty Papua New Guineans inevitably fall by the payments, Lihirians became locked in a wayside of PV. Clubs provide support and vortex of winmoni mania–a Tok Pisin term encouragement for floundering entrepreneurs. that literally translates into “win money” or Modelled on corporate organisations, clubs windfall, and carries with it connotations of elect a president and various officer holders, money acquired by luck or that simply “blows coupled with committees for different projects. in”, emphasising the “mysteriousness” and Ideally there should be a club for every “irrationality” of Western wealth accumulation. village and a head member for each local However, infrastructure and wealth from government ward. Their duty is to make royalty and compensation payments have sure clubs function effectively, to help recruit been extremely unequally distributed across new followers, and guard against declining the islands. interest or enthusiasm. However, as we shall see in the following section, in the Lihirian The Villages of Putput, Kapit and Londolovit, context it often proves difficult to enact these which are comprised of those clans that ideal strategies. Paradoxically, in practice claim ownership over land within the Special this reality is hidden by the enthusiasm with Mining Lease zone, now occupy the upper which certain Lihirian leaders have embraced stratum in Lihir. Prior to mining these villages PV as a way to mitigate the negative socio- were relatively undifferentiated from the rest economic distortions and consequences of of Lihir, as people relied upon a combination mining. of subsistence farming and sporadic The Hidden Mechanics of Solomon Islands Budget Processes

copra sales. A core group of six men have have not benefited from the mine in the 14 received over one million kina each in land anticipated ways – where everyone would be payments since mining began, and 95 have comfortably rich – has generated widespread each received between 100,000 kina to disillusionment with the mining project, one million kina in payments. The bulk of the state and capitalism more generally. the “landowning” community is comprised People regularly blame a combination of of some 1700 people who have received state, landowner and corporate greed for between two to 10,000 kina in various lands their dilemmas, though depending upon payments. Lihirians expect that individuals the context one might be emphasised over will distribute these payments throughout another. their matrilineal clan networks which spread across the entire group of islands; however The landmark Integrated Benefits Package in reality this wealth has become increasingly (IBP) that was signed by Lihirians, the state concentrated among an elite minority. and the mining company in 1995 (see Banks, 1998; and Filer, 1995, 2000) was supposed Although royalties and compensation are to deliver some form of sustainable economic the most symbolic form of wealth, wages development to the Lihirian community, constitute the most regular, and the largest, with provisions for infrastructure, services flow of money into the local economy. In and housing improvement. By 2000 when 2002 the company employed 986 staff, of the review of the agreement began, it was which 366 (or 38%) were Lihirian. In 2007, apparent that many of the expected outcomes there were some 1989 full-time employees, had not transpired. The review wore on of whom 753 were Lihirian, and 1059 were as Lihirian leaders from the landowners nationals. In 2007 the mine only employed association and the local level government around 10 percept of working age Lihirians, struggled to reach a satisfactory agreement but there were probably twice as many among themselves and with the company working for local contractor companies. and the state. Lihirian leaders all wanted to Nevertheless, wage labourers remain a address the massive inequality generated minority and are not evenly spread throughout through mining, the prodigal spending habits the islands. Just as royalty payments are of landowners who had grown accustomed heavily concentrated around “landowning” to a constant source of disposable income, villages these areas also house the greatest the growing dependency upon scarce wage number of wage earners. Lihirians generally labour, and the more general community consider access to employment as their right expectation that the company will deliver by virtue of their status as the hosts, or the all forms of economic development. For the “owners” of the resource. This is supported first time Lihirian leaders were beginning by the rather unrealistic expectation that to consider the inevitable prospect of mine all Lihirians will gain employment with the closure and the need for long term alternative company and that Lihirians will play a more economic activities to support the continued significant role in managing the operation. delivery and maintenance of services and Consequently those people without access infrastructure. But they were unable to decide to royalty and compensation payments who on the right path. also fail to secure employment feel doubly disillusioned. When these leaders were introduced to Samuel Tam in 2003 they were soon The rapid social, economic and political convinced that the wholesale adoption of PV changes experienced through mining have was the only way to combat the so-called torn apart many existing social networks, “handout mentality” or “resource dependency presented new challenges to village syndrome”, and to achieve what they termed leadership, altered gender relations (often “self reliance and financial independence”. for the worse), and left many people with a They wanted to prove to the state and the profound sense of cultural rupture (Bainton company that Lihirians were not backward 2008b, 2009). Lihirians are acutely aware cultists, but modern Melanesians worthy of of new inequalities, which are often the respect and equality and capable of achieving source of community conflicts. The growing a desired level of modernity. number of people who feel as though they The Hidden Mechanics of Solomon Islands Budget Processes

In 2005 the review of the benefits agreement been willing to follow this strategy. remained incomplete. PV was strongly 15 promoted throughout the islands but there There have been some disagreements were growing doubts over the suitability of between Tam and the authors of the LSDP this approach. Leadership was now split as over the nature of their strategy and the a small number of educated (save) men who ownership of PV, but Tam has generally were aligned with the leading executives of supported and encouraged their approach. the landowners association seized control of Moreover, given that Lihir is one of the few the review, effectively reducing the influence places with the resources and the desire to of the local level government. These men adopt the total PV package, Tam stands to began devising plans for future economic reap considerable returns through the EDTC development that combined mining wealth franchise. Although PV is the central plank with notions of individual responsibility. These in this new vision, not everyone has been plans would eventually become known as fully convinced that this road will lead to the Lihir Sustainable Development Plan (LSDP), desired land of modernisation. Some people which formed the basis for the revised have embraced PV as a way of life, while IBP agreement that was finally signed in others have rejected it, or at least struggled 2007 – though not without a great deal of to reconcile its overtly entrepreneurial consternation, political division, and general emphasis with traditional Lihirian values. confusion throughout Lihir. These local Landowners who receive regular payment leaders described the LSDP as their “road of mining benefits have generally found PV map” for achieving what they called the “Lihir irrelevant, while many other members of Destiny”. They had appropriated PV for their the wider community still impatiently wait goals, reviving earlier separatist sentiments for wealth and development to be delivered in order to keep mine related wealth in Lihir by the company or some other institution. and to reduce the state’s ability to influence Consequently there remains a great deal of Lihirian lives. In essence they were looking heat surrounding the new agreement that for ways to simultaneously develop individual now commits some 10 million kina to the capacities and to maximise the economic implementation of PV programs throughout and political opportunities presented through Lihir. mining operations. This plan was a blue print for a new order to be established through mining benefits and sustained through individual entrepreneurialism. PV in practice

The new agreement was structured on Shifting from the planning and policy level commitment from the company for the to the ground upon which these decisions payment of one hundred million kina over are made, we find that PV in practice five years, funding compensation payments, has proven somewhat problematic. Many delivery and maintenance of services and Lihirians initially thought that PV was the infrastructure, and a raft of community key to wealth accumulation, especially those development programs. From an early stage without access to royalties and compensation the authors of the LSDP recognised that payments. Large numbers eagerly enrolled this amount of funding would be insufficient in their nearest course, believing that they to meet all Lihirian needs (now or in the could achieve their dreams through this future) or to level out existing inequalities. “home-grown” approach. Indeed, this is why It is for this reason that PV has been so it was appropriated by local leaders and the appealing: common goals or “the common authors of the LSDP – to demonstrate to good” will only be reached through individual the company and the Government that they efforts. By using the benefits package to understood the ‘White man’s secret’, and that train Lihirians in entrepreneurialism and to they also had their own (alter)native answers create economic activities that Lihirians can to the development riddle. Despite initial engage in, the authors of the LSDP hope to enthusiasm and the pivotal role of PV in the reach some form of self sufficiency. However, new agreement there is growing community competitive capitalism has rarely provided disillusionment with both PV and the LSDP, equal opportunities, and not all Lihirians have and little evidence of dramatically improved The Hidden Mechanics of Solomon Islands Budget Processes

entrepreneurial performance. Although the PV idioms, rather than demonstrate any 16 authors of the LSDP remain ideologically recognisable form of entrepreneurial initiative. committed to PV, they maintain a tenuous The use of commonly understood terms and position within Lihir, especially as people phrases, exclusive to PV followers, generates begin to question how the wider community a sense of ethos among club members. This will benefit from this new strategy while is important, because in practice their petty existing inequalities remain apparent and market sales are not always distinguishable more immediate needs absorb people’s from those of non-PV followers. attention. PV urges people to compartmentalise their PV faces several challenges in the Lihir daily life in terms of a perceived distinction context, in particular the skewed mining between socio-economic spheres. In economy that is coupled with inflated reality it often proves impossible to pry community expectations, and the heightened apart the tangled relationship between sense of traditionalism manifest through different domains through ritual adherence an ideology of custom. The huge amount to PV which promises some level of financial of wealth that circulates throughout Lihir autonomy from local webs of custom and is regularly ploughed back into large-scale kinship. It is this tension that causes some customary feasting and exchange activities. people to reject PV, claiming that ‘PV em i Rather than undermining custom, mining has no olsem kastom bilong yumi’ (PV is not like provided the resources for its efflorescence. our custom). This new resistance is couched In response to the extreme experience of in the discourse of custom, but it also stems mining, many Lihirians have reified Lihirian from a realisation that any “secrets” they custom, or the values and social relations are learning from PV are difficult to perform associated with these activities, which are and usually contradict existing dispositions, opposed to the sociality associated with values and expectations. Many try to development, or capitalism more generally. establish their money garden only to find their efforts strangled by kinship roots. While More often than not, people find that their some people might consider themselves attempts to conduct business within the as potential businessmen it is often the village setting, or their strategies to get same people who are quite disparaging of ahead, are constantly compromised by these others who are successful at the expense competing values. PV followers like to imagine of social relations. Their reactions capture that their economic activities are set apart the contradiction of Lihirian desire: people from the petty market sales of the average want to learn how to produce money for villager, not least of all because they aim to themselves and gain financial autonomy, but advance beyond ad hoc sales, to a regular not necessarily at the expense of existing income supported by a growing “clientele sociality. base”. More importantly they often state that there will be no bartering, exchange, Despite this enduring dilemma and the credit or favours, regardless of kinship and community’s rising disillusionment with PV custom obligations. Ultimately PV projects and the promises made in the LSDP, those are supposed to operate separately from leaders who advocated this strategy remain the gift economy or custom. Although the firmly committed. They have responded “integrity discipline” purports to measure with increased rational modernist discourse, individual performances in custom activities, arguing that Lihirians simply need more in so far these transactions reflect economic motivation, and that once their plans are commitments, PV implicitly encourages less, fully mobilised people will see the light and or at least more regulated, involvement in adjust their lifestyles accordingly. As a result custom. this has only further distanced them from the wider population who feel that plans for their PV clubs cut across clan and family ties, future were made without their consultation, and exclude anyone that had not taken and fail to reflect community sentiments and the course and proven their “PV literacy”, expectations. which in the village context has increasingly come to mean the ability to converse using The Hidden Mechanics of Solomon Islands Budget Processes

By way of conclusion it is worth briefly lifestyles. Certainly some Lihirians have considering some of the broader implications recognised such discrepancies, fuelling their 17 of PV in Lihir. We can find strong parallels rejection or antagonism towards PV, whilst between the expectations for instant leaving them with the sense that the “real wealth fostered by fast money schemes development” lies elsewhere. and the expectations among landowning The question faced by Lihirian leaders, communities, especially their disenfranchised company management and the state, is how neighbours and relatives, for mining to turn resource rents, or the larger benefits companies to instantly deliver all forms of package (or what economists term the economic development. The PV movement, economic surplus), into long term equitable which was deliberately adopted by Lihirian and sustainable economic development that leaders to combat this dependency, might will maintain service provision beyond the be considered the rational counter-part to life of the mine. All large-scale resource the sort of winmoni mania generated by development projects throughout Melanesia fast money schemes and the delivery of are confronted with this challenge. The LSDP huge compensation and royalty payments to might be considered a progressive response landowning communities. However, the ways with its emphasis on service delivery that is in which some people have put their faith in designed to offer a more socially equitable PV, almost as end in itself which is ritually means of distributing long term benefits enacted, should give rise to some level of regardless of landowner status. However, caution. Perhaps even more concerning, the question remains whether the strong is that as a device for addressing issues of neoliberal themes emphasised through PV economic dependency, PV seems to be more will divert attention from the more equitable effective as a moral ideology that justifies the distribution of wealth–whether it is through very inequalities it purports to reverse. customary channels or governance structures and local development plans–and entrench The dominant neoliberal economic discourse, the elite capture of royalties which remains which PV intensifies and internalises within the most divisive element in Lihir. Ultimately people, assumes that out of the way places addressing such arbitrary distinctions will such as Lihir can credibly be developed determine the long term social and economic and diversified. Accordingly, there are no viability of the Lihir islands. limits to growth and all that is needed is the right attitude, capital and laissez faire government, or as it is expressed in PV Author NoTes terminology, a “conducive environment”. In the end the mine is the central economic Nick Bainton is a currently a Research opportunity for Lihirians, and while it remains, Fellow at the Centre for Social Responsibility it will always prove exceedingly difficult to in Mining at The University of Queensland. generate significant economic diversification. As part of a three year partnership with While there are a large number of successful Lihir Gold Limited he is currently involved in companies that provide various services in training and capacity building with Community Lihir, they are all dependent upon the mining Relations and Social Impact monitoring staff, project for their operation. But the myths and the development of a long term Cultural of economic development in the context of Heritage Management Strategy for the Lihir mining as promulgated by PV conceal an even Islands. more disturbing reality. While the grassroots are expected to be content digging around John Cox is an experienced development in their money gardens, elite landowners worker and researcher with a focus on Papua still have the freedom and capacity to invest New Guinea and Solomon Islands. He is abroad, send their children to better schools, currently undertaking PhD research on fast gain more lucrative business contracts with money schemes in Melanesia at the School the mining company, or simply enjoy their of Philosophy, Anthropology and Social wealth with little thought for tomorrow. This Inquiry at the University of Melbourne. is only compounded by the presence of expatriate miners who appear to the average Lihirian to be living comparatively luxurious The Hidden Mechanics of Solomon Islands Budget Processes

EndNoteS 4. The Fijians claimed they were coming to 18 Bougainville as missionaries! (Post-Cou- rier 29 Sep 2007) 1. I use the general term “pyramid scam” to include what are more correctly known as 5. This gesture attracted condemnation from Ponzi schemes: scams which generate a the Catholic Archbishop of PNG (National great rush of investors based on false 31 July 2009) but also serves as a fine promises of huge and rapid returns. Pyr- symbol of Musingku’s idiosyncratic meld- amid scams and Ponzi schemes should ing of finance and religion. be distinguished from pyramid selling 6. See www.creflodollarministries.org for schemes, such as Amway and the like. the work of this Afro-American preacher Pyramid selling (or multi-level market- with a most intriguing name. ing) is not inherently fraudulent, although 7. Coleman 2000, 195. Compare Cahn some scams, such as Questnet, do oper- (2006) on multi-level marketing schemes ate in PNG using multi-level marketing in Mexico. structures. 8. Cf. Kurer 2007, who makes more general 2. ‘FAST money schemes were risky remarks about good character, corruption businesses but provided a “window of hope” and clientelism. for investors, especially simple villagers, according to the late Joseph Kabui, former 9. In an apparent back flip, Musingku later president of the Bougainville People’s claimed his money was coming from the Congress. Mr Kabui said Prime Minister World Bank, prompting a denial by the Sir Mekere Morauta’s announcement on Bank’s Papua New Guinea Manager the establishment of a committee to look (Post-Courier 28 Feb 2006). into the operations of the schemes is a 10. “The two years under Bill Skate were move in the right direction. He stressed a widely viewed as the most corrupt, and need to exempt U-Vistract, Money Link, the worst administered, in PNG’s brief Millennium and Nekong from paying tax but increasingly sad history as a nation.” to the Government in their Bougainvillle Callick 2000. See also Eves 2008, 5-6. operations. “While investors know that 11. The Lihir gold mine is currently operated there are risks involved, they are also by Lihir Gold Limited. aware of the benefits provided by the schemes”, he said. “By investing in the 12. To be sure, the growing Asian presence schemes, small investors in Bougainville throughout Papua New Guinea has come have planned to rebuild houses destroyed under increased local scrutiny, especially during the crisis, pay for children’s school in the logging industry (Crocombe 2007: fees and meet costs for other basic needs 64, 134). Asian influence has shifted and services. The schemes, do provide from small businesses among the ‘older a window of hope and opportunities to Chinese’, to corporate investment in the a simple villager who has placed his/her extractive industries, hotels and other trust in the operations of the schemes areas of commerce, which also seems by investing.’’ He sympathised with the to be accompanied by greater levels of owners of the schemes who were being corruption and organised crime. pressured by clients to pay out their 13. Details of his life history can also be found money. The Government through the at the PV website: http://www.edtc.ac.pg Central Bank is also exerting pressure on the schemes to comply with the country’s 14. There are evident correlations between Finance Acts. He called for understanding Tam’s messages and prosperity theology from the Government when dealing with found in some of the more charismatic the fast money making schemes on churches throughout Papua New Bougainville’ (Post-Courier, 26 August Guinea. 1999). 15. For similar discussions on the ways 3. The closeness of the two schemes may Melanesians engage with environmental be seen in the case of two Bougainvillean discourse see especially Macintyre and sisters based in Madang: one was the Foale, 2004: 235. Helden, 1998; cf. local agent for U-Vistract and other for Kirsch, 2004; West, 2005). Money Rain. The Hidden Mechanics of Solomon Islands Budget Processes

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Helden, F.V. 1998. Between cash and Robbins, J. 2004a. Becoming Sinners: 20 conviction: the social context of the Christianity and Moral Torment in a Papua Bismark-Ramu integrated conservation and New Guinea Society. University of California development project. National Research Press, Berkeley. Institute, Boroko, Papua New Guinea. Robbins, J. 2004b. The Globalisation of Jorgensen, D. 2005. Third Wave Evangelism Pentecostal and Charismatic Christianity. and the Politics of the Global in Papua New Annual Review of Anthropology 33, 117-43. Guinea: Spiritual Warfare and the Recreation Roca, R.S. 2007. ‘Dinheiro Vivo’ Money and of Place in Telefolmin. Oceania 75: 444-460. Religion in Brazil. Critique of Anthropology Kich, M. 2005. A Rhetorical Analysis of Fund- 27(3): 319-339. Transfer Scams. Cercles 14: 129-142. Royal Reserve Bank of Papala. 2002. Internal Kirsch, S. 2004. Keeping the Network in Memorandum dated 26 May 2002. View: Compensation Claims, Property and Smith, D.J. 2007. A Culture of Corruption. Social Relations in Melanesia. In L. Kalinoe Everyday Deception and Popular Discontent & J. Leach (eds), Rationales of Ownership: in Nigeria. Princeton University Press, Transactions and Claims to Ownership in Princeton. Contemporary Papua New Guinea. Sean Kingston Publishing, Wantage. Tam, S. 1997. EDTC Personal Viability: Holistic Human Development: Physical- Lutu, Bob. 2000. Affidavit. National Court of Mental-Spiritual-Emotional-Financial. PNG, M.P. NO: 62 OF 2000. EDTC “Are You Viable?” Entrepreneurial Macpherson, C.B. 1962. The Political Theory Development Training Centre Ltd., Boroko, of Possessive Individualism: Hobbes to Papua New Guinea. Locke. Oxford Univesity Press, Oxford. Toft, S. 1997. Patrons or Clients? Aspects of Macintyre, M. & S. Foale. 2004. Politicised Multinational Capital-Landowner Relations Ecology: Local Responses to Mining in Papua in Papua New Guinea. In S. Toft (ed), New Guinea. Oceania 74: 231-252. Compensation for Resource Development in Papua New Guinea. The Australian National Marshall, R. 1995. God is not a democrat: University, Canberra. Pentecostalism and democratisation in Nigeria. In Paul Gifford (ed), The Christian Unage, M. The way to human resource Churches and the Democratisation of Africa. development. The National, Talking Point. Brill, New York. Thursday, 26th April. U-Vistract News, Nov 23, 2001, Vol 1, Issue 12 Meillassoux, C. 1981. Maidens, meal, and money: capitalism and the domestic Verdery, K. 1995. Faith, Hope and Caritas in community. Cambridge University Press, the Land of the Pyramids: Romania, 1990 to New York. 1994. Comparative Studies in Society and History 37(4): 625-699. Meyer, B. 2004. Christianity in Africa: From African Independent to Pentecostal- West, P. 2005. Conservation is Our Charismatic Churches. Annual Review of Government Now: The Politics of Ecology in Anthropology, 33: 447-74. Papua New Guinea. Duke University Press, Durham. Nalu, M. 2006. Grasruts Universiti. In Paradise, 1: 46-47. Papala Chronicles, accessed online at www. ibom.biz 5 Dec 2008. The Hidden Mechanics of Solomon Islands Budget Processes

SSGM Discussion Paper Series (2004/1 - 2009/4) 21 2004/1: Phillip Gibbs, Nicole Haley and Abby McLeod, Politicking and Voting in the Highlands: The 2002 Papua New Guinea National Elections 2004/2: David Hegarty, Ron May, Anthony Regan, Sinclair Dinnen, Hank Nelson and Ron Duncan, Rebuilding State and Nation in Solomon Islands: Policy Options for the Regional Assistance Mission 2004/3: Michael Goddard, Women in Papua New Guinea’s Village Courts 2004/4: Sarah Garap, Kup Women for Peace: Women Taking Action to Build Peace and Influence Community Decision-Making 2004/5: Sinclair Dinnen, Lending a Fist? Australia’s New Interventionism in the Southwest Pacific 2004/6: Colin Filer, Horses for Courses: Special Purpose Authorities and Local-Level Governance in Papua New Guinea 2004/7: Robert Muggah, Diagnosing Demand: Assessing the Motivations and Means for Firearms Acquisition in the Solomon Islands and Papua New Guinea 2004/8: Sinclair Dinnen and Edwina Thompson, Gender and Small Arms Violence in Papua New Guinea 2005/1: Nic Maclellan, Conflict and Reconciliation in New Caledonia: Building the Mwâ Kâ 2005/2: Michael Morgan, Cultures of Dominance: Institutional and Cultural Influences on Parliamentary Politics in Melanesia 2005/3: Hank Nelson, Fighting for her Gates and Waterways: Changing Perceptions of New Guinea in Australian Defence 2005/4: Allan Patience, The ECP and Australia’s Middle Power Ambitions 2005/5: Jerry Singirok, The Use of Illegal Guns: Security Implications for Papua New Guinea 2005/6: Jaap Timmer, Decentralisation and Elite Politics in Papua 2005/7: Donovan Storey, Urban Governance in Pacific Island Countries: Advancing an Overdue Agenda 2005/8: Jon Fraenkel, Political Consequences of Pacific Island Electoral Laws 2006/1: Hank Nelson, Governments, States and Labels 2007/1: Peter Larmour, Evaluating International Action Against Corruption in the Pacific Islands 2007/2: Brij V. Lal, ‘This Process of Political Readjustment’: Aftermath of the 2006 Fiji Coup 2007/3: Hank Nelson, The Chinese in Papua New Guinea 2007/4: Paul D’Arcy, China in the Pacific: Some Policy Considerations for Australia and New Zealand 2007/5: Geoffrey White, Indigenous Governance in Melanesia 2008/1: Brij V. Lal, One Hand Clapping: Reflections on the First Anniversary of Fiji’s December 2006 Coup 2008/2: Paulson Panapa and Jon Fraenkel, The Loneliness of the Pro-Government Backbencher and the Precari- ousness of Simple Majority Rule in Tuvalu 2008/3: Kate Higgins, Outside-In: A Volunteer’s Reflections on a Solomon Islands Community Development Program 2008/4: Sarah Kernot & Lai Sakita, The Role of Chiefs in Peacebuilding in Port Vila 2008/5: Debra McDougall, Religious Institutions as Alternative Structures in Post-Conflict Solomon Islands? Cases from Western Province 2008/6: Abby McLeod, Leadership Models in the Pacific 2008/7: Nicole Haley, Strengthening Civil Society to Build Demand for Better Governance in the Pacific. Litera- ture Review and Analysis of Good Practice and Lessons Learned 2008/8: Richard Eves, Cultivating Christian Civil Society: Fundamentalist Christianity, Politics and Governance in Papua New Guinea 2008/9: Into A. Goudsmit, Nation Building in Papua New Guinea: A Local Alternative 2008/10 George Williams, Graham Leung, Anthony J. Regan and Jon Fraenkel: Courts and Coups in Fiji: The 2008 High Court Judgement in Qarase v Bainimarama 2008/11 Keith Joseph & Charles Browne Beu, Church and State in the Solomon Islands 2009/1 Elizabeth Reid, Interrogating a Statistic: HIV Prevalence Rates in PNG 2009/2 Michael Green, Fiji’s Short-lived Experiment in Executive Power-sharing, May-December 2006 2009/3 Peter Coventry, The Hidden Mechanics of Solomon Islands Budget Processes - Understanding Context to Inform Reforms 2009/4 Hank Nelson, Mobs and Masses: Defining the Dynamic Groups in Papua New Guinea

For details of the SSGM Discussion Papers published from 1996, see the SSGM website: http://rspas.anu.edu.au/melanesia/discussion.php

ISSN: 1328-7854 Research School of Pacific and Asian Studies

State, Society and Governance in Melanesia (SSGM) is a program of the Research School of Pacific and Asian Studies, ANU College of Asia and the Pacific, The Australian National University. SSGM’s key objectives are to encourage scholarship on governance and state-society relations; generate dialogue throughout Melanesia and the Pacific Islands on these issues; and assist in bridging policy and research. The Program’s research and outreach focuses on:

* Island Melanesia - Papua New Guinea, Solomon Islands, Vanuatu, New Caledonia and Fiji; * the culturally-related region to the west including Papua/Irian Jaya and Timor; and * the countries of the Pacific Islands region to the north and east.

The contribution of AusAID to this series is acknowledged with appreciation.

State, Society and Governance in Melanesia Research School of Pacific and Asian Studies ANU College of Asia and the Pacific Australian National University

Contact: Telephone: +61 2 6125 8394 Fax: +61 2 6125 5525 Email: [email protected] http://rspas.anu.edu.au/melanesia