Question
Write it In a short essay,
Papua new guinea is one of emerging economies in the world, even though it's post-independence stage, still experiencing Hegemony practices from its former colony, which is Australia. Write and discuss how this practices contribute to have negative impact on its economic growth and development? In 4 paragraph
Papua new guinea is one of emerging economies in the world, even though it's post-independence stage, still experiencing Hegemony practices from its former colony, which is Australia. Write and discuss how this practices contribute to have negative impact on its economic growth and development? In 4 paragraph
Answers
GPT-5 mini
Papua New Guinea (PNG) is widely regarded as an emerging economy with abundant natural resources and significant growth potential. Yet despite independence in 1975, patterns of economic and political dominance rooted in the colonial relationship with Australia persist. These hegemonic practices — manifested through close trade links, investment by Australian firms, donor dependence, and strategic security arrangements — shape PNG’s policy choices and market structure in ways that often favour external interests over domestic development goals.
Economically, strong Australian and other foreign corporate presence in extractive sectors has tended to produce enclave economies: mines and gas projects generate large revenues but limited spillovers into local industry. Profits are often repatriated, contracts and supply chains prioritise foreign suppliers, and tax regimes and regulatory capture can allow avoidance or erosion of the fiscal base. The result is constrained domestic value addition, weak linkages to agriculture and manufacturing, and vulnerability to commodity price swings — all of which undermine sustainable, broad-based growth.
Politically and institutionally, heavy reliance on Australian aid and technical assistance can create conditionalities and policy orientations that reflect donor priorities rather than locally defined development strategies. Security arrangements and high-profile projects (for example, the Manus Island offshore processing arrangement) have at times subordinated PNG’s sovereign policy space to external agendas, generating social tensions, diverting public resources, and politicising governance reforms. This dynamic weakens accountability, entrenches elite bargaining around resource rents, and reduces the capacity of PNG institutions to pursue long-term structural transformation.
Social and human-capital consequences further limit development. Skilled jobs and high-value roles in major projects are frequently filled by expatriates, slowing the transfer of skills and perpetuating dependence on foreign expertise. Environmental degradation from poorly governed extractive activities damages livelihoods and increases inequality in rural areas that host resources. Together, these factors hinder diversification, reduce fiscal capacity for public investment in health and education, and trap PNG in a pattern of growth that is volatile and unequal rather than inclusive and resilient. Addressing these hegemonic legacies requires stronger domestic institutions, fairer contract and tax enforcement, and partnerships that prioritise local value creation and sovereignty over short-term external gains.
Economically, strong Australian and other foreign corporate presence in extractive sectors has tended to produce enclave economies: mines and gas projects generate large revenues but limited spillovers into local industry. Profits are often repatriated, contracts and supply chains prioritise foreign suppliers, and tax regimes and regulatory capture can allow avoidance or erosion of the fiscal base. The result is constrained domestic value addition, weak linkages to agriculture and manufacturing, and vulnerability to commodity price swings — all of which undermine sustainable, broad-based growth.
Politically and institutionally, heavy reliance on Australian aid and technical assistance can create conditionalities and policy orientations that reflect donor priorities rather than locally defined development strategies. Security arrangements and high-profile projects (for example, the Manus Island offshore processing arrangement) have at times subordinated PNG’s sovereign policy space to external agendas, generating social tensions, diverting public resources, and politicising governance reforms. This dynamic weakens accountability, entrenches elite bargaining around resource rents, and reduces the capacity of PNG institutions to pursue long-term structural transformation.
Social and human-capital consequences further limit development. Skilled jobs and high-value roles in major projects are frequently filled by expatriates, slowing the transfer of skills and perpetuating dependence on foreign expertise. Environmental degradation from poorly governed extractive activities damages livelihoods and increases inequality in rural areas that host resources. Together, these factors hinder diversification, reduce fiscal capacity for public investment in health and education, and trap PNG in a pattern of growth that is volatile and unequal rather than inclusive and resilient. Addressing these hegemonic legacies requires stronger domestic institutions, fairer contract and tax enforcement, and partnerships that prioritise local value creation and sovereignty over short-term external gains.