Remarks by

Mr. Dirk Wagener

UNDP Resident Representative

at the occasion of the SME 2022 Breakfast

27th June, 7 am, APEC Haus

Length: 1,300 words

Approx. duration: 10 minutes

Salutations:

• Hon. James Marape, Prime Minister
• Hon. Henry John Amuli, Minister for Commerce and Industry
• H.E. Mr. Jon Philp, Australian High Commissioner
• H.E. Mr. Jernej Videtič, EU Ambassador
• Representatives from Government
• Colleagues from the Diplomatic corps, Developments Partners
• Private Sector and most importantly SMEs
• Colleagues, Ladies and Gentlemen

Breakfast with the Prime Minister

Micro – Small – Medium Enterprises are at the forefront of #BuildingForwardBetter and stronger from the impacts of the COVID-19 pandemic, and to tackle the climate crisis.

The theme for this year’s 2022 International MSME Day is: Resilience and Rebuilding.

The question of sustainable economic development is perhaps the greatest of all national interest questions.

A strong economy is a key criterium for any strong, resilient, and prosperous society and country.

The generation of wealth improves livelihoods. It improves social mobility, and it offers people access to new opportunities.

A strong economy means more revenues for Governments and increased investments in infrastructure and service provision.

This is both important and essential since healthier, better educated and more upward socially mobile populations drive economic development. This is critical for Papua New Guinea.

Papua New Guinea’s population is young, very young indeed.

It is estimated that approx..30% of Papua New Guineans are between the ages of 10 and 24.

This places Papua New Guinea’s population amongst the world’s youngest.

But this is both a challenge and an opportunity.

We have a young and aspiring population ready to work but there is a lack of jobs and opportunities.

With its natural and human capital and its strategic position, Papua New Guinea could be a magnet for investment and domestic job creation.

The challenge of course, is unlocking these opportunities.

         … how do we make Papua New Guinea a more attractive place to invest?

                  … how do we broaden the economic base playing to PNG’s strengths and highlighting its value added, and creating jobs?

How do we broaden our economic base beyond extractives and natural resource exploitation?

For many, unfortunately, a successful economic model is still a linear one: we take – make – dispose.

We know, however, that this economic model is fraught with problems, existential problems in fact that have led to a planetary crisis.

We are depleting our natural resources at a highly unsustainable rate. Our footprint has become unbearable.

As the American economist Kenneth Boulding once said …

“Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.”

Unsustainable growth and development have led to the triple planetary crisis: climate emergency, pollution, and loss of biodiversity.

2021 marked some negative records for humanity.

Last year, atmospheric carbon concentrations, ocean temperatures, atmospheric mean temperatures, and sea level rise…. All have reached the highest levels ever recorded.

What will this mean for the planet?

Well, the science on this is clear:

We must cut GHG emissions by 45% by 2030 to reach net-zero by 2050. Otherwise, we will have a climate catastrophe with maybe 3-degree Celsius temperature increase or more over pre-industrial levels.

Humans are accelerating changes at a speed to the very DNA of planetary systems never seen before.

Deforestation is rampant, especially here in Papua New Guinea. With the loss of forest, the ecosystems and their services also disappear. This puts millions of people at risk.

Growingly erratic weather patterns are displacing millions fleeing drought and flooding in both developed and developing countries.

Plastic pollution is altering the food chain.

Today, on average humans are consuming 5 grams of micro plastic per week.

Scientists working with the World Economic Forum estimate, that by 2050 there will be more plastic in our oceans than fish.

This all offers pause for thought. But it should result in immediate action.

We embrace and focus on development, but we must ask: how can we achieve development that is sustainable and NOT at the expense of the very planet we live on?  

Today, more than ever, we must pursue greener, circular, and sustainable economic models that can be profitable and wealth creating while not depleting the resources and planetary support systems they reply upon.

We must pursue investments that are inclusive and transformative towards more circular models that maximise sustainability.

As we emerge from the COVID pandemic, we must look forward at the opportunities for rejuvenation rather than return.

In other words, we must seize the opportunity to broaden Papua New Guinea’s economy, away from a dependence on extractives and towards ‘greener’ options.

We must look at renewable energy, more efficient production, green products, and services.

And you … small and medium enterprises are at the heart of such transformation.

Recent figures published in Business Advantage PNG suggest there are approx. 50,000 SMEs in Papua New Guinea.

Their activity contributes approx. 6% to the nation’s GDP. 

SME can be major engines of value creation, accounting for between 50% to 60% of value-added in OECD economies and 60% of total employment

SMEs are similarly significant in emerging economies such as Papua New Guinea.

In such economies combined, SMEs contribute on average 45% of total employment, and 33% of GDP.

Your actions, your investments and your drive are the key to transformation.

Job creation through SMEs will often directly benefit the poor and vulnerable, particularly women and youth.

This reduces poverty, increases income, and positively impacts on household investments in education and health over time.

Green SMEs contribute to the protection of the climate, environment, and biodiversity through their products, services, and business practices.

But they do so in different ways.

SMEs can reduce the environmental footprint of their production process, for example, through focussing on resource efficiency, saving inputs and generating higher profits while saving the planet.

SMEs can focus on green outputs and offer green products and services.

Framed differently, SMEs can be sustainable performers and green innovators – SMEs whose core business model focuses on the sale of sustainable goods and services.

I am proud to say that UNDP is working extensively with SMEs in Papua New Guinea.

We recognise your potential to drive change.

We are working with SMEs to empower women and better engage with youth.

These efforts aim to increase financial literacy and build business acumen with SMEs in Port Moresby and Lae to ensure sustainability.

We are working with partners such as Japan to deliver innovation hubs in Bougainville to incubate new ideas to attract investment.

We are delivering blue and green business initiatives in East and West New Britain in the services, agricultural and tourism sectors.

We are working with the European Union – one of our generous funding partners - to climate proof supply chains for SMEs in cocoa, vanilla and fisheries reducing costs and increasing production with access to renewable energy.

We are proud to call many of you here today our partners because it will take new, innovative, and strong partnerships to achieve the change that is not only necessary, but will contribute to a greener, more sustainable economy.

I close by congratulating you all on your efforts and your ambition to push forward, and to #BuildForwardBetter

We are here to support you to achieve inclusive and sustainable growth and development.

Thank you.