The Mandated Territory of Papua (1884-1940s): Exploring Themes of Underdevelopment, Uncertainty, and Mercantilism

Welcome to the course on Papua New Guinea politics at the University of Papua New Guinea. In this course, we will delve into the rich history, politics, and economy of Papua New Guinea. As we embark on this journey, we will acknowledge the book "Dependency and Development: The Political Economy of Papua New Guinea" by Azim Amarshi, Kenneth Good, and Rex Mortimer, specifically focusing on Chapter 2. 

In this blog post number 2, we will discuss the mandated territory of Papua from 1884 to the 1940s, exploring three key themes: the lack of investment in the Papua region, uncertainty in defining economic policy, and the impact of Australian mercantilism.

1. Lack of investment in the Papua region:

During the late 19th and early 20th centuries, the underdevelopment of the sugar and dairy industries in Queensland, Australia, played a significant role in the lack of investment in the Papua region. Queensland's economy heavily relied on these industries, which resulted in limited attention and resources being directed towards the development of Papua. This underinvestment had long-lasting effects on the economic growth and infrastructure development in the region.

2. Uncertainty in defining economic policy:

The transfer of the territory from British to Australian control in 1905 through the Papua Act, the economic depression of 1929, and the impact of World War I created a sense of uncertainty in defining economic policy in the mandated territory of Papua. These events disrupted the stability and continuity of economic planning, making it challenging for policymakers to establish a clear and consistent direction for economic development. The shifting political landscape and external factors further complicated the process of defining and implementing effective economic policies.

3. Australian Mercantilism:

One of the notable examples of Australian mercantilism in the mandated territory of Papua was the Navigation Act of 1929. This act required all goods imported into Australia to be carried on Australian-owned ships, effectively excluding foreign ships from the Australian trade. The Navigation Act limited the ability of local producers in Papua to export their goods to Australia, the main market for their products. This restriction on trade hindered the growth of the domestic industry and made it difficult for local producers to compete with cheaper imports from Australia.

These themes of underdevelopment, uncertainty, and mercantilism shaped the economic landscape of the mandated territory of Papua from 1884 to the 1940s. The lack of investment, coupled with the challenges in defining economic policy and the impact of Australian mercantilism, had a profound effect on the region's development and economic growth.

As we explore the political dynamics of Papua New Guinea in this course, we will continue to examine the historical factors that have shaped the country's political and economic landscape. The book "Dependency and Development: The Political Economy of Papua New Guinea" by Amarshi, Good, and Mortimer will serve as a valuable resource for our discussions.

Citations:

[1] https://books.google.com/books/about/Development_and_Dependency.html?id=uK-1AAAAIAAJ

[2] https://www.dromanabooks.com/product/135981/DEVELOPMENT-AND-DEPENDENCY-The-Political-Economy-of-Papua-New-Guinea

[3] https://catalogue.nla.gov.au/Record/2810122

[4] https://www.jstor.org/stable/25168873

[5] https://www.jstor.org/stable/2756119

[6] https://www.files.ethz.ch/isn/87018/2005-12-19.pdf