Finding a way to sustainable economics - The Papua New Guinean experience Case Study Teacher's Notes Student Activities Using a mind-map, flow chart or in brief paragraphs, describe the images you have of Papua New Guinea under the following headings; Housing Employment Income Education Clothing Leisure Activities Communication Transport Now carry out the task using the same sub-headings, but this time focus on Australia. Consult with members of the group and write a definition for your understanding of the term, 'developing country'. Why do we use such terms? How important are they to international trade and development? Remembering to draw on your definition, what are some of the economic problems faced by these countries? Are the problems the same for all developing nations? Do we need to consider social, environmental and political factors in addressing the concerns of developing countries? If so, how are they important? Economies undergo continual change and it is important to recognise ways in which they can maximise utility and exploit their comparative advantage to aid economic growth and prosperity. These are what we call 'Economic Development Strategies'. To do this, nations must make decisions as to where they will direct resources and funds to improve their economic performance. In your groups, consider the significance of 'Economic Development Strategies'. Imagine you are an advisor to a panel that is considering ways to improve the economic performance of LDCs. List the five economic priorities you think are most important to the development of these countries. You may wish to use the sub-headings from activity 1 to help you. How might these priorities be introduced? How could they be implemented? What role might 'Developed Countries' play in the process. Report on the main features of each priority and justify its importance to the development program. Demonstrate your findings in an oral presentation. This might include a report to a Government Senate Committee on overseas aid, a report to the Minister of Foreign Affairs, an advertisement for a NGO (Non-Government Organisation) highlighting the need for monetary donations, or a news/current affairs report on LDCs. Read through the case study outlining the economic performance of PNG. In your groups, brainstorm a list of essential characteristics for economic development. Use these characteristics and the information provided in the case study to prepare an economic brief, in the form of a mind map, highlighting the potential strengths and weaknesses in the PNG economy. Focus on the following key areas: Primary exports Natural resource endowments Areas of potential growth Education standards Emerging global trends Environmental sustainability. You may wish to use the following guide in preparing your brief. First, you will need to define the characteristics necessary for economic development. Second, you will need to research and explain the appropriate economic theories and outcomes that relate to your development characteristics. (ie. The opportunity cost of developing the mining industry versus eco-tourism). Third, you will need to provide a list of the strengths and weaknesses of the economy and justify your reasons for placing each of the characteristics into the two groups. This will involve providing examples of development projects that have been successful or unsuccessful in the past. Visit 'The PNG Country Report' internet site at http:www.worldbank.org/ to see the three priority areas the World Bank focus on in their support for PNG. Are their priorities similar to those that your group focused on? What is their justification for focusing on these three areas? How is the World Bank supporting development in PNG? How can organisations like the World Bank encourage the development process? Now consider the following four priority areas of the Australian Government's overseas aid program in PNG: strengthening governance - by increasing contestability through the introduction of a new Incentive Fund, supporting economic management and an environment that encourages the private sector, building the capacity of PNG agencies to deliver services, promoting the rule of law and strengthening civil participation and representation improving social indicators - by expanding the quality and reach of primary health care and education facilities, especially to poor rural communities, strengthening PNG's emergency response capacities and promoting gender equity building prospects for sustainable economic growth - by constructing and maintaining infrastructure vital for development, increasing agricultural productivity and encouraging the sustainable use of natural resources consolidating the peace process in Bougainville - by providing an identifiable peace dividend. How are their priorities similar to those of your group? How is the Australian Government's overseas aid program supporting development in PNG? How might the program differ from what World Bank offers in the development process in PNG? Drawing on your economic brief and the priority areas of the Australian Government's overseas aid program (http://www.ausid.gov.au), prepare a blueprint for 'PNG's Economic Future'. As a group, brainstorm a list of strategies for improving PNG's economic performance. Present these on separate pieces of paper under the following headings: Growth and sustainability Areas of opportunity Adjusting and preparing for the global market Support and investment for the future Co-operation and assistance from abroad. Rank each of the areas you have covered from the most important to the least important. Number each of the sheets from 1-5 in order of priority. Write a brief sentence outlining why each strategy has been ranked in this way. Compare and discuss the rankings with other groups, and as a class. What have been the key strategies? How easy was it to prioritise the issues? You should now be well qualified to suggest ways in which these strategies could be introduced and what the future might hold for PNG. Extension Activity Using the Papua New Guinea Profiles 1999-2000 publication on the Australian Government's overseas aid program, access the synopsis of major activities currently being implemented, planned or recently completed under the overseas aid program. Do they fit with the priority areas you have set for PNG? How do they seek to improve PNG's economic position? Why do you think the Australian Government has moved away from untied budget support to jointly programmed activities? What are the benefits for developed countries in encouraging economic growth in LDC's. Consider social, economic and environmental responsibilities.   Top © Commonwealth of Australia