Lincoln University Digital Thesis Copyright Statement The digital copy of this thesis is protected by the Copyright Act 1994 (New Zealand). This thesis may be consulted by you, provided you comply with the provisions of the Act and the following conditions of use: you will use the copy only for the purposes of research or private study you will recognise the author's right to be identified as the author of the thesis and due acknowledgement will be made to the author where appropriate you will obtain the author's permission before publishing any material from the thesis. Livelihood Dynamics on the Lihir Islands, Papua New Guinea A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University by Mathias Sabu Boea Liu Lincoln University 2010 Abstract of a thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy . Abstract Livelihood Dynamics on the Lihir Islands, Papua New Guinea by Mathias Sabu Boea Liu This thesis is based on an empirical study of livelihoods conducted on the Lihir Group of Islands in the New Ireland Province, Papua New Guinea. The Lihir group is part of the Tabar- Lihir-Tanga-Feni chain of volcanic island groups which lie parallel to New Ireland Province. The islands of Niolam, Mahur, Mali and Masahat make up the group. The purpose of this study was to investigate the dynamics of the livelihood systems on this group of islands where historical interventions and a mining operation have caused socio-economic changes, and continue to influence the people‟s livelihoods. To that end, appropriate livelihood strategies have to be formulated to mitigate the negative impacts of these interventions. The study was characterised as inductive within the constructivist-interpretive research paradigm underpinned by the qualitative approach. The philosophyical framework of inquiry was exploratory, naturalistic and contextual to Lihir. The overarching construct viewed the livelihood system on Lihir as a human system of interacting elements consisting of people applying their capabilities to use assets within a vulnerable context, so as to construct and sustain their livelihoods. The inductive nature of the grounded theory was used to categorise primary data for the purpose of analysis and understanding. In so doing, primary data was incorporated with secondary data to provide a narrative description of the dynamics of the Lihir livelihoods. As such, primary data and secondary data were not treated as separate bodies of data. The research strategy was a case study in which 66 respondents were interviewed with multiple units of analysis. Generalisation was increased by taking a holistic approach in the selection of the units of analysis covering a broad variety of roles and activities from 10 strategically located villages. The selection of units of analysis included institutions and business owners. ii Respondents were purposively selected from these villages and institutions to capture the dynamics of livelihoods in their natural setting. Respondents were interviewed either in 2007 or 2008. Additional information was obtained through observation and secondary data sources. The results show that Lihirians have witnessed positive economic transformations in their livelihoods, from a subsistence base driven by traditional culture, to a cash economy largely dependent on the gold mine operation. Access to and use of assets varied between institutions, households and individuals. Matrix analysis of the institutions revealed that authority, influence, and power play to varying degrees between the institutions. These have impacted on institutional linkages, which are in turn impacting on service delivery, thereby either inhibiting or enhancing livelihoods. Similarly, stratification of households has occurred as a result of differing access to livelihood assets by household members. Notably, the mine has become an economic engine room for the affluence of Lihirians who are direct beneficiaries of the economic outcome of the mine through wage employment, business contractors, and recipients of mining royalties and allowances. Further, the multiplier effects of these economic outcomes have greatly influenced households to inevitably derive income earning livelihood strategies in order to sustain their livelihoods in a dynamic socio-economic environment. Overall, Lihirians have been drawn into engagement with the capitalist system, initially through the colonial labour trade and more recently through a large-scale gold mine operation. It is evident that consumerism and capitalism have taken a strong hold on the Lihirian livelihoods. However, the risk of this process ending with the „resource curse‟, articulated through the „Dutch disease‟, becomes a major threat. In this regard, it is vital that non mining interventions are introduced to mitigate the impact of the mine‟s cessation. To this end, community based commercial fishing, ecological tourism and commercial vanilla production are possible interventions that could be pursed. In addition, enhancing advanced education and investment of mining royalties and personal income external to the Lihir Islands are paramount. Keywords: Exploratory, Naturalistic and Contextual to Lihir, Sustainable Livelihoods, Assets, Households, Livelihood strategies, Capabilities, Vulnerability, Enhancing Livelihoods, iii Acknowledgements My principal supervisor, Professor Keith Woodford has provided me with intellectual guidance in the course of doing this study. It has been largely through Keith that I have been able to execute this project with endurance. The flexible style of his supervison in allowing me to execute this project is greatly acknowledged. At large I owe Keith a great deal of gratitude. I am also indepted to my associate supervisor Dr Rupert Tipples for his valuable guidance and support, not only in elements of this research, but also in my association with the Lincoln Baptish Church. I wish to thank NZAID for providing the scholarship support for my study at Lincoln University. I also thank the staff of the Commerce Faculty, especially the administrative staff for the provison of necessities for ease execution of this thesis. I also received valuable assistance from my post graduate colleagues, when we journied together, but in our own individual endeavours. In Lincoln Village, I am indepted to Mark Wilson, his wife Robyn and the members of their home group for their inspiration and support. My thanks also go to the PNG University of Natural Resources and Enviornment, formally Vudal University for releasing me to execute this thesis. The administrative support provided by the university is greatly appreciated. I also would like to thank the Morus family of Kunaie 2 Village on the Lihir Islands for their hospitality duirng the field trips in 2007 and 2008. My relationship with the family eventually resulted in me being initiated into their clan – Amuat. Indeed, I am now a Lihirian for life. Apet. Also on Lihir, I would like to thank Isidor Kmamen, Greg Opat, and Bais for linking me with other key informants. Finally, I wish to thank my family for their prayers, faith and support, and for putting up with my absence as a father and head of the household. Big thanks to Dally and our daughter Asher for supporting me when they had to put up with my atypical PhD life when they joined me for a year in Lincoln. To God Be The Glory Em tasol iv Table of Contents Abstract ............................................................................................................................ ii Acknowledgements ........................................................................................................ iv List of Tables ................................................................................................................. xiv List of Figures ............................................................................................................... xiv List of Acronyms ........................................................................................................... xvi List of Local Terms and their Meanings .....................................................................xvii Chapter 1: Introduction .................................................................................................. 1 1.1 Overview................................................................................................................................................... 1 1.2 Nomenclature .......................................................................................................................................... 2 1.4 Research Context .................................................................................................................................... 2 1.4.1 Papua New Guinea ............................................................................................................ 2 1.4.1.1 Population ...................................................................................................................... 3 1.4.1.2 Land area and natural environment .............................................................................. 3 1.4.1.3 Natural Resources ......................................................................................................... 4 1.4.2 Lihir .................................................................................................................................... 4 1.4.2.1 Population .....................................................................................................................