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

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