Economic interest behind PNG's first foreign policy

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Premdas presented the three categories of foreign policy options in his article published in 1976 by the Australian Journal of International Affairs. The three categories aid us to develop our understanding of PNG's first foreign policy. In other words, it is a useful framework or typology for analysis extracted from the work of Holsti.

The three categories of foreign policy options open to a state are:
  1. Isolationism
  2. Non-alignment
  3. Diplomatic coalitions and military alliances
According to Premdas (1976, p. 263) a state that choose a particular foreign policy strategy does so because if feels that its national interest will be served by this orientation. National interest is categorized into three categories:
  1. Security interest
  2. Economic interest
  3. Ideological interest
PNG has the option of selecting the isolationism option at independence but did not. Like all other newly independent countries, PNG opted for a non-alignment foreign policy based on the doctrine of universalism and the four optimal conditions:
  1. Internal domestic factors
  2. External threats
  3. Geographical-contiguity factors
  4. International system
The non-alignment or 'Friends to all, enemies to none' foreign policy was formulated in line with our economic interest. Whether the assessment was done independently, or with the help of Australian advisors, is another topic for further research. In addition, we question whether the foreign policy decision was carefully calculated using the four optimal conditions. One undisputed fact is that Australia directly or indirectly played a huge role as our former colonial administrator to influence the type of decisions we made during the independence period.

Mitna (2018, p. 42) said the doctrine of universalism was common in new and emerging states. He said the main reasons why newly independent states go for this foreign policy option is that they lack resources for development. He added that Brazil's early postcolonial foreign policy was deeply rooted in autonomy and universalism similar to PNG.

PNG was not self-sufficient but depended on other countries for access to markets, supplies, aid and other public goods. At independence, PNG did not have a large manufacturing sector; we depended heavily on Australia for consumable items.

Morgenthau (2006) argued that a country that is self-sufficient or nearly self-sufficient has a great advantage over a nation that is not. PNG in the post-independence period was disadvantaged in comparison to other nations because we were not self-sufficient.

Apart from this internal domestic factor, PNG did not have an external threat to its security as a newly formed state, and it was distant from the struggles among the Cold War powers, which showed a diffused international system.

Mitna (2018, p.42) stated that newly independent countries opted for a non-alignment foreign policy because they needed to rely on the developed countries for expertise, trade and capital for economic development. He also said that this requisite for economic development signifies extending relations to any countries and organizations that can support their economic interest, without considering their political ideologies, alliances and geopolitical location.

Similarly, Premdas (1976, p. 265) argued that a postcolonial country's effort to formulate an independent foreign policy must take into consideration the structure and capability of its economy in order to select the right option. He stated that the traditional economy, like most Melanesian economies, comprised of small villages separated by long distances and difficult terrain and often by problems of language and traditions of warfare. This changed when foreign intruders came looking for slave labour to recruit, tropical products to trade, or gold to mine. This initiated a change to a dependent, export economy controlled by foreign investors.  

Dependent in this context means that during the independence period the country could not adequately raise the revenues to support a large public budget from local sources according to Premdas (1976, p. 267). As such, Australia provided budgetary support in the form of aid to address the gap between public expenditure and local sources of revenue. The Whitlam government gave $187 million in aid to PNG in 1974 and this giving continued after 1975.

In comparison, Mitna (2018, p. 39) wrote that PNG began the post-independence era with a small and mostly agriculture-based economy. Its domestic revenues were sourced from the personal income taxes of the large expatriate population, a few large companies and trade duties. He said PNG had a limited domestic production base, a poor revenue-raising ability and relied on Australia for economic development, particularly, aid, trade and investment.

Mitna (2018, p. 43) said the foreign policy extended PNG's relations beyond Oceania. He said the realpolitik of universalism emphasized economic development. PNG prioritized trade, aid and investment. These priorities also determined where diplomatic missions were located. The foreign missions that were established facilitated the process of fostering cordial relations with foreign investors and aid donors.

To conclude, Mitna and Premdas agree that economic interest was the main national interest behind the formulation of PNG's first foreign policy. Mitna did mention that to a lesser extent the foreign policy addressed the country's security interest. He also said PNG extended its relations without considering the political ideologies and alliances of other countries.

Apart from the non-alignment option, Mitna wrote that PNG also forged diplomatic coalitions and alliances with countries and international organizations that supported its interest. PNG diversified its diplomatic coalition when the country entered into a bilateral relations with the People's Republic of China in 1976.

References 
Morgenthau, H. (revised by Thompson, K. W. & Clinton, D. W. (2006). Politics among nations: the struggle for power and peace (7th ed.). Beijing: Peking University Press.
Premdas, R. (1976). Toward a Papua New Guinea foreign policy: constraints and choice. Journal of International Affairs, 30(2), 263-279.
Mitna, P (2018). Factors influencing Papua New Guinea’s foreign policy in the Twenty-First Century (Doctoral dissertation, The Australian National University). Retrieved from https://openresearch-repository.anu.edu.au/handle/1885/156980?mode=full

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