commodity prices.
“Had commodity prices remained high allegations of corruption and fiscal management, not to mention the major foreign exchange shortages now facing the country, would have been far more muted as the government continued to ramp up expenditure,” Pryke wrote in the Guardian.
“For O’Neill, in a time when core services are being slashed, the dissatisfaction with government excess at the expense of everyday Papua New Guineans has become far more acute.”
Observers say O’Neill is hanging on by a simple rule of politics – he has the numbers.
“He enjoys a thumping majority in the Parliament because most MPs depend on him to provide funds for their local electorates,” Fairfax reporter Daniel Flitton commented.
“The budget in PNG is distributed among districts and any MP offside with the prime minister gets less. This has delivered a measure of political certainty in PNG where no-confidence motions have been a bane of stable government.
“But with elections expected next year, local politicians are also positioning for the future.
“The PNG economy is teetering, fuelling a nationwide headache. The country is rich in natural resources and oil and gas deposits had promised a rich stream of cash to the budget coffers.
“But in the last year, global commodity prices have collapsed, leading to extraordinary cuts to spending. The national health budget alone has been slashed by almost 40 per cent. None of this has been helped by a severe drought that had been a result of El Nino weather patters.
“Papua New Guinea is getting hotter, a rising temperature of the political kind and nothing to do with climate change. Police opened fire on protesting students in the capital on Wednesday as a tense five-week stand-off boiled over into violence.” - PNC sources