Treasurer Ian Ling-Stuckey recently met with Japan’s Vice Minister of Finance for International Affairs for a discussion on economic issues.
Ling-Stuckey met with Masato Kanda on the sidelines of the ADB annual meetings in Incheon, Korea, on May 3rd.
“Japan has had an extraordinary record of economic success. Over the last sixty years, it has pursued outward-looking growth and export strategies,” said the Treasurer.
“These have lifted the standard of living of Japanese families dramatically – from just $USD475 per capita in 1960 to $US39,300 in 2021 (over K100,000 per person each year).
“Through sustained strong leadership, good policies and hard work, they have become a true economic powerhouse.
“Japan’s economy is worth $US4,937 billion, 150 times larger than PNG’s $US32 billion economy. And it was all achieved despite Japan lacking natural resource riches like PNG.
“It was therefore a pleasure conducting a bilateral meeting with the Japanese Vice-Minister of Finance for International Affairs, Mr Kanda, who represents Japan at the G7 Finance Ministers meetings, during my recent visit to Korea to Chair the Pacific Governors meeting at the ADB Annual Meeting.”
Ling-Stuckey outlined that Japan has been a strong supporter of PNG even before our Independence.
“They have supported our infrastructure sector, with the new K692 million Nadzab airport nearly completed. They are also doing important work in the power, health and education sectors and getting more value from our forest resources.
“Of particular value recently was their strong support for PNG during the global COVID-19 pandemic.
“The pandemic wiped 20 percent (or K2.5 billion) of our domestic budget revenues in 2020. Japan stepped in to provide K950 million in budget support. This was a good, cheap loan. Interest costs were only 0.01 percent (one-hundredth of one percent!).
“I highlighted to Japan our continued commitment with the Marape-Rosso economic reform program. This has been most recently demonstrated by PNG entering into a program with the IMF.
“Japan congratulated PNG for entering into such a program, and talked of how it added transparency and credibility to PNG’s reform program. We also talked about social media, and how they can tell lies and distort the benefits of such programs.
“This was another productive meeting with a major economic power, and PNG’s largest export partner.
“One of the advantages of attending the ADB meeting is the chance to talk to other Treasurers and Finance Ministers about how best to guide our economies through very difficult global economic times.
“We can learn a lot from Japan’s experience on how we can improve the living standards of our people.”