From Dependency to Sustainability

From Dependency to Sustainability
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The Star Mountain Investment Holding Limited (SMIHL) is a Papua New Guinean (PNG) landowner holding company operating in Western Province, in the shadows of the huge Ok Tedi mine. The initiative drew on a Future Generation Fund and was, for the community, a response to years of frustration with wasted opportunities for economic development which were attributed to a lack of organizational and economic development capacity, capture of benefits by local elites, and the absence of a consensus on how to address the community's long-term interests. Among other things, the case highlights the value of locally-led and facilitated change processes, and the understanding of local cultural dynamics and capacity issues that goes with it.

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Paulina Siop. From Dependency to Sustainability

From Dependency to Sustainability

CONTENTS

FOREWORD

Papua New Guinea Facts

BACKGROUND

Ok Tedi Mine-Area Community

Sustainable Economic Development Issues

MINE-AREA COMMUNITY INVESTMENT PROGRAM. Design and Development

Investment Structure

Program Implementation

Community Consultation and Communication

Key Messages for the Community

Consulting with Communities and Stakeholders

Administrative Inputs

Technical Input

Current Status of SMIHL

ANALYSIS, REFLECTIONS, AND LESSONS

Early Consideration for Economic and Institutional Capacity Development

Development or Dependency

Leadership Issues

Independence of Landowner organizations

Indifferent Business Management

Resource Benefit Redistribution via Landowner umbrella Companies

CONCLUSION

Epilogue

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PACIFIC CHOICE

A Case Study on the Economic Capacity Development of the Ok Tedi Mine-area Community

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In conclusion, this report seeks to enhance understanding and dialogue on capacity development and its potential for contributing to poverty reduction and improvements in the quality of life of all Pacific islanders. I trust that you will find it both thought-provoking and practically helpful in advancing our collective commitment to development in the Pacific.

Philip Erquiaga

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