Luckily PNG got an Informal Economy that sustains the life of the citizens despite the economic recession that is affecting the country badly.
With the trade of buai/daka/cold-water/ice-block and etc with anywhere convenient without any regulation on the trade is what keeps PNG going as usual. Papua New Guinea is so lucky with the informal economic climate and everyone is minding their own business. Most people are taking economic recession of the country for fun as if it concerns only the working class people and those who pays tax through their wages and salaries. However, GST is what everyone pays to live in the cities and towns to access to goods and services; hence, no-one is excluded in the general economic cycle.
If we are a country with controlled economy and without the Informal Economic Sector, then we would have a different scenario in PNG at this stage. Most of us will be left homeless or broke to death already.
By keeping the Informal Economic Sector out of the picture, the Economic Recession in PNG is real and it is happening in PNG. We do not have to take it for granted and burden our working parents, boyfriends, girlfriends and wantoks with expectations and requests. The best we all can do is by engaging in something decent and budget wisely for the good of our own life or family to keep afloat with little we earn from formal or informal economy.
When looking back to the reality of the economic value of our Kina, lets look into the nominal value of a One Hundred Kina note; the nominal value of K100.00 is equivalent to K34.00 when you divide K100.00 by ever inconsistent exchange rate of K0.34. So do note that your K100.00 is only K34 .00 in actual value these days.
We PNG have a tendency to accept and live each day by chances and bookings (dinao) for next fortnight and the norm continues with family commitment and customary obligations each weekend to next fortnight. It is by time, each one of us needs to teach one another about the realities of our own economy these days and try to be vigilant with the income and stop those reckless spending behond the budget with bookings and commitments.
There is already an existing gap between elites and normal citizens of PNG in which Cash is playing a major role and the cash elites are on the upper end doing everything they can with the money they have to make more money in every ways possible they can. One the other hand, the innocent citizens and honest income earners are facing the realities of living the life in the towns and cities with increasing goods and services.
The prices of goods and services are increasing each week and it seems that someone has to sacrifice all he/she earns on bills and utilities expenses only. The reality of having a decent meal for a family is not a everyday thing but families are resorting to cheaper meals like; hard scones and cordials or cold water for most of the days.
The children are going to school without breakfast and lunch which is affection the studies for our future leaders of this nation and its worrisome issue for the future of PNG. The hospitals are running out of drugs and people are dying of curable diseases.
Adding to the offset of the economic recession is; the major investors and companies in PNG are laying-off their employees and it is leading to unemployment rate which is one of the symptoms of economic recession PNG supposed to manage it with prudent judgement and effective policies. However, it has its long story with cheap labors from Asian countries dominating the skilled/unskilled employment sector as well as technical and SME businesses leaving PNG citizens on the streets jobless.
PNG is just fine and people are fine as usual and seems to me like; we all are living each day by chance and not worried of what is actually happening now with our economy, our future in next 5 years and our children's future. Thankfully its the magic of our informal economy in PNG that keeps us going each day but the reality is; our economy is sinking slowly and the ever predicted Russian Disease is in PNG despite having high hopes in the LNG and the mining sector.
Take care, take control, be wise and manage your income wisely at these times.
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| Selling convenient goods, sweets, cold water, soft drinks and betel nut are part of PNG's informal sector |
