Monday 14 March 2016

Markets need government ownership


By Busa Jeremiah Wenogo


In considering the options that are available in elevating the government’s attention given to markets it is important to note that since the reform on the provincial and local level government, crucial funding arrangement such as the Town and Urban Service Grants have not been forthcoming from the national government to assist the town and urban authorities to maintain services within their respective towns and urban areas. When these grants have been made available provincial governments have not been reliable in distributing these funds to respective LLGs within the province. Now that these funds are now directly deposited into LLG accounts it is hoped that this will have a direct impact on key services like the development and upkeep of markets at ward level. Yet with the government now reducing the LLGSIP from K500, 000 to K100, 000 this could imply a reduction. Inaddition, misapplication or non-availability of these types of grants has resulted in the deterioration of key facilities like market over the years and with it the entire image of the towns and urban centres. It is even made worse when most local authorities are not utilizing their powers as provided for by the Organic Law on Provincial & Local Level Government to enact laws that can enable them to generate revenues internally like imposing fees on the use of market facilities, mobile trading and land tax. One way of overcoming this difficulty would be for the national government to put in place a specific authority to deal with markets. In that way it will enable the national government to appropriate funds from the budget specifically to be used for renovating existing markets or construction of new markets at the sub-national level. Furthermore, public private partnership should be explored to bring in private sector investment as well as encourage counter-part funding with sub-national level government.

Without clarity regarding the role of provincial governments, towns and LLGs concerning markets and funding support to build and sustain these facilities,markets throughout the country have been greatly neglected by the government for many years. Subsequently, there are only few properly equipped markets built to cater for the needs of both the farmers/vendors and the consumers. In the absence of proper market facilities vendors have resorted to road side markets, peddling, mobile trading and even encroaching on state land for space which has led to regular confrontation between the authorities and the vendors[1].

Nevertheless, the government has recognized the importance of markets in its higher plans such as the Vision 2050[2]. It is also encouraging to note that every now and then we read and hear stories about Members of Parliament spending money to build markets. Most recently, Hon Justin Thatchenko and Powes Parkop have spent money on renovating markets in the city. Gordons Market, which is the biggest market in Port Moresby, is expected to undergo major repair to transform it into a modern market[3]. Other markets such as the Mt Hagen Market have been funded by the generous support of the Australian Government through the Incentive Fund. Yet it is fair to say that a lot of the markets have not been properly managed allowing for petty crimes to thrive and rapid deterioration of its facilities. Furthermore, harassment of various forms has been widely reported to have taken place within the markets making most of the markets unsafe for women to sell their produce. Initiatives like the Safe Cities Market Project of UNWOMEN and NCDC are attempting to change the situation in major markets in the city yet these markets will not maintain its good image for many years to come if appropriate mechanisms are not set-up.

Market is a very important driver of economic growth apart from the lucrative extractive industry that is often accredited for producing record breaking economic growth rate for PNG although, there is very little evidence to suggest that these windfall gains have trickle down to the mass[4]. Infact, the emergence of large scale projects such as the PNG LNG have further increased the divide between the “haves” and the “have nots” and led to significant rise in the cost of living[5]. Markets if prioritized by the government and managed properly could provide that avenue for these gains to be passed onto simple farmers and informal economy (sector) vendors most of whom make up the bulk of the PNG’s population.Typically a market of whatever shape or form provides an avenue for the formal and the informal economy(sector) to interact. Thus building more markets will further enhance the prospects of spreading the income/revenue generated from the large resource project across a wider spectrum of the society and will assist in evening out the huge income disparity gap between the rich and the poor. At the same time markets provide the local authorities the opportunity to generate additional income through imposing fees on the vendors for the use of the facilities. Fees should not be necessarily confined to gate fees but can be broaden to include the use of water and toilet facilities so long as they are provided in the best way possible.

Market is a great platform to linking the informal economy with the SME at the micro-enterprise level. Within markets vendors can be identified and trained on specific areas of needs whether it’s functional or financial literacy or understanding their basic rights as vendors and protecting the interest of their clients. The UNWOMEN/NCDC Safe Cities Market Project[6]in Port Moresby has thus far proven that markets are an effective tool to assist in registering and profiling vendors for the sake of organizing them into groups to build a collective “voice” to address their concerns.

Politicians need to recognize the important role of markets and make provisions in terms of funding in their budget to build and routinely maintain markets (both primary and secondary) to create income earning opportunities to as many people as possible within their constituency. Such funding arrangement such as the DSIP should have a portion of that money specifically allocated to building markets in all districts as was stated in the previous 2011-2015 MTDP[7]. As highlighted above this should be complemented with the government empowering an existing department or agency to be responsible for ensuring that markets are built and routinely maintained throughout the 89 districts. Furthermore, it does not hurt for the national government to explore the idea to introduce a national body/entity to plan for and manage market facilities throughout the country on behalf of the people of this country.Better still it could amend relevant sections in the Organic Law on Provincial & Local Level Government to clearly highlight that building and maintaining markets in the provinces, districts and wards is the role responsibility of the respective sub-national government.This could then be reflected and amplified in the revised Informal Economy Development & Control Act. Whatever approach the government intends to take on board one thing is clear; its challenge will essentially be one of resource and commitment to this endeavour, something that the government has been seriously lacking eversince.


Last published: Weekender, The National Newspaper: Friday, March 4, 2016


[3]EMTV (2015); “Gordons Market to be redeveloped”; http://www.emtv.com.pg/article.aspx?slug=Gordons-Market-To-Be-Redeveloped;
[4] Massey University (2014); “PNG’s paradox of plenty outlined in UN report”; http://www.massey.ac.nz/massey/about-massey/news/article.cfm?mnarticle_uuid=B66733E8-CE19-295B-6262-30E52AF133FE
[7] The REDD Desk (2011); Papua New Guinean Medium Term Development Plan 2011-2015; http://theredddesk.org/countries/plans/papua-new-guinea-medium-term-development-plan-2011-2015

Sunday 13 March 2016

Who looks after the markets?

By  Busa Jeremiah Wenogo

In PNG the function of establishing and looking after physical markets is said to be the sole responsibility of the sub-national government .i.e. provincial, Local Level Government (LLG) and urban authorities. Yet the Organic Law on the Provincial & Local Level Government does not spell out explicitly that this is the case. Although the law particularly in section 42 and 44 covers elements of the informal economy (sector) such as “mobile trading”, “cottage industries”, “agriculture”, “fisheries”, “betelnuts and any other marketable items”[1], there is nothing specific on whether the powers given to provincial and LLGs under the law cover aspects relating to the function of building and maintaining market facilities. Yet at the national level according to the Department of Provincial & Local Government’s manual on Determination assigning service delivery functions and responsibilities to provincial and local level governments, the Department of Community Development & Religion through its Community Economics Section, is responsible for “declaring market areas” and “arranging gazettal of informal sector inspectors” at the LLG level[2]. Unfortunately in reality that has not been the case in most LLGs. At the sub-national level only the NCDC Act 2001 as per section 41 sub-section 2(m)[3]clearly states that the commission has responsibilities over markets within NCDC.However, this is also problematic given that not all major markets within Port Moresby fall under the auspicious of NCDC. Markets like the Manu-Autoport market in front of the former TST supermarket was established by the TST Company back in the 1980s[4].

Furthermore, being deprived of the powers to issue land titles most provincial governments (including NCDC), urban authorities and LLGs can only plan their towns and rural areas but cannot easily allocate space for building markets on state land[5]. The current centralization process of land tenure system in PNG is very tedious and time consuming. In the current legal environment, land that were planned for building markets could easily be allocated for other developments at the prerogative of the National Department of Lands & Physical Planning. This is made worse by the rampant corruption within the national department of lands and physical planning where state land is acquired by individuals and firms under dubious circumstances[6]. The lack of priority put on markets by various tiers of government means that most of the land is allocated for other developments other than market. From this reality one can deduce that a lot of the markets that are set-up in provinces and LLGs are either built on customary land operating under some sort of social contract between the State and landowners or illegally set-up on private or state land. In a city like Port Moresby where the State is fast running out of land competition is intense in securing the scarce undeveloped state land for development purposes. As a result markets  are increasing being pushed out to the peripheries of towns and cities away from its strategic node areas where there is ample concentration of demand.
The announcement early last year by the Lands Minister that provincial lands boards will be set-up in all provinces throughout PNG is key to ensuring that provinces develop their own plans and coordinate developments[7]. Certainly Provincial city and town Masterplans that are critical to guiding the work of the provincial lands board should make market a priority in every district and ward throughout the country. Market aside from road, airstrip and bridge is the most fundamental public infrastructure that should be present to empower the local community in the rural and urban areas to engage in commercial oriented activities. Such an arrangement mooted by the Minister will greatly assist provincial government, urban and town authorities to tie-in their planning process with land, the most important resource or asset. The Minister should further complement this move with other reforms in the area of customary land with the view to strengthen“collective ownership “and ensuring “shared benefit” among landowners. Furthermore, laws in relation to towns and cities particularly its definition, management and planning should be reviewed for the sole purpose of protecting and nurturing their growth. This exercise should at the very least include market as one of the important minimum standards when planning towns and cities.Perhaps from the outset the government should make use of the opportunity provided in the review of the Informal Sector Development & Control Act 2004 to spell out clearly whose role it is when it comes to building and managing market facilities. Although the CLRC draft report on the review of the Informal Sector Development Control Act 2004 has already identified this need. The review report could initiate the process by creating/inserting a provision in the revised law to spell out clearly that the administering authorities of the law in the likes of NCDC, provincial governments, urban and town authorities and LLGs be responsible for the management and upkeep of the market facilities. Going beyond that it could also propose for a national government department to take carriage of looking after market facilities in PNG or create a separate entity empowered with its own powers to build, maintain and manage market facilities throughout the country.

Last Published: Weekender: The National Newspaper: Friday, February 26, 2016, pg 55




[1]Organic law on Provincial Governments & Local level Governments (1998); pg 24 & 26; http://www.ago.gov.pg/images/downloads/Organic%20Law%20on%20Provincial%20Governments%20and%20Local-level%20Governments.pdf,
[2]Department of Provincial & Local Government Affairs (2009); The Determination assigning service delivery functions and responsibilities to provincial and local level government; pg 8
[3]National Capital District Commission Act 2001, pg 25; http://www.paclii.org/pg/legis/consol_act/ncdca2001367.rtf.
[5]National Research Institute; “Fairfax Harbour – An iconic harbor of significance” (2014); http://www.nri.org.pg/index.php/22-news/179-fairfax-harbour-an-iconic-harbour-of-significanc?showall=1&limitstart=
[7]Department of Lands & Physical Planning; Land Tok (2015); pg 10; http://lands.gov.pg/News/LandTok/LandTok_012015.pdf