Canberra, [28 September 1966]2
Review of implementation of recommendations of World Bank mission3
- World Bank mission recommendations
Essence of the recommendations was the need for a long-term economic development programme based on three principles:—
• Concentration of effort (‘in areas and activities where prospective return is highest.’ Special reference made to agriculture, forestry, transport, secondary education and vocational training).
• Standards. (Standards of services, buildings, salaries to ‘be related to Territory conditions’.)
• Fostering responsibility. (Give greater responsibility to the people, e.g. through urban and local government, imposing charges for economic and social service, and shifting to cash wages.)
The report suggested the content of an economic development programme, giving production, planting and other targets for the different economic sectors and suggesting projections of education, health and other services. It recommended that an economic planning unit be established to formulate a detailed economic plan and to co-ordinate the planning activities of the Departments.
- Action taken to implement recommendations
• Concentration of effort. The annual budget reflects the policy of concentrating expenditure as far as possible in the economic sectors, although the proportion of expenditure in these sectors still falls somewhat below the average suggested in the report. This is principally because of the need to make provision for expanded tertiary education facilities, including the establishment of a university, the shortfall in Development Bank expenditure and the need to provide for increased salaries and wages arising out of arbitration. The latter increases have particularly affected the Social Service Departments which, for the most part, are the largest employers. Expenditure on the capital items required for economic development, e.g. roads, bridges, ports, has been particularly heavy. Expenditure on health has been kept to the modest levels proposed by the Mission and the recommended emphasis on preventive medicine has been maintained. As recommended by the Mission, expansion of primary education has been kept under restraint, although it has not proved possible to restrict enrolment in Administration schools to the extent suggested.
• Principle of concentration has been applied to areas as well as activities. Areas with the greatest potential for economic development e.g. New Britain, Western Highlands, the Northern District and Bougainville have been selected for priority treatment. At the same time an attempt has been made not to neglect the basic essential requirements of other areas containing large populations.
• Standards. A concentrated effort being made to adjust public works, housing, wage levels to Territory conditions (i.e. to restrain the natural tendency for such standards to creep up beyond levels that the Territory could reasonably be expected to afford even with a substantial measure of Australian assistance. lndigenisation of the Public Service is progressing as rapidly as suitable indigenes become available at appropriate levels.)
• Fostering responsibility by the indigenes. Side by side with development of parliamentary institutions emphasis has been given to fostering local government bodies which have greatly expanded and increased in effectiveness. The same applies to co-operative and savings and loan societies. Start has been made in introducing appropriate charges for economic and social services e.g. rentals, fares on school buses, water and electricity.
- Action on economic development programme
• Planning. Progress being made in formulation of co-ordinated programme. Economic Adviser appointed with small staff. Co-ordinator of Transport to be appointed.
• Planning at both the headquarters and district levels. Statistical service being improved and increased flow of information between departments being organised. District Co-ordination Committees are now functioning.4 Full information required for district development programmes to be provided, collated and analysed.
• Special efforts being devoted to revision [of] production and staff targets, surveying manpower requirements, and co-ordinating financial estimates and works programme in accordance with development priorities.
• Integrated development programme being formulated on basis of these activities.
• Production etc. targets. Variation in extent to which production and plantings of major. crops conform to World Bank recommendations. Broadly conform in relation to indigenous sector, but shortages of investment have affected plantation activity. Good prospects for tea beyond those foreseen by the Bank Mission and favourable prospects for large scale production of palm oil not considered by World Bank. Also hopes for large scale mineral industry which were not evident at time of report. Good prospects of meeting Bank Mission targets for timber production, which were considered optimistic at the time. Cattle population has fallen below the Mission’s targets mainly due to marketing and stocking problems and delays in the opening up of suitable land.
• Development has necessitated provision of roads, bridges and other facilities to an extent not foreseen by Mission. This poses great problem of determining priorities. Principle of concentration of effort being used as guide for this.
• Other economic activities. Special steps taken to promote secondary industry, tourism, the provision of credit facilities (e.g. Development Bank), agricultural training (specially extension of Yudal), rationalization of land tenure, development of ports and harbours.
• Staff requirements Need is twofold: to expand expatriate recruitments, especially in the professional and technical categories and to introduce indigenes at all levels which they are capable of filling. Recruitment of expatriates has fallen rather behind because of shortages in Australia and unavoidably restricted housing and other facilities in the Territory. Bank Mission did not set targets for indigenous recruitment, but this has been well maintained.
- Other aspects of development
Although expenditure on health and primary education kept under restraint, need to provide for essential requirements and to produce healthy and adequately trained work force has meant very large expenditures still required in these areas. Proper balance in expenditure on these services and on directly productive economic activities will need to be maintained.
- Problems to be overcome
• Programming
• Economic Adviser and departments are encountering difficulties in recruitment of suitable staff. Concentrated effort will have to be made to overcome these problems by attention to classifications, provision of housing and highly selective recruitment.
• World Bank programmes will have to be expressed in more detail and take into account recent developments, particularly the increased importance of tea, palm oil and, possibly, minerals in the economy.
• Question of manner in which programme is to be made public still to be decided, but some public document seems necessary.
• Important aspect will be manpower survey and need to co-ordinate with education policies.
• Staff. General shortages of professional and technical staff for reasons mentioned above. Will have to be tackled as indicated. Possible increased use of private consultants.
• Political factors. Natural tendencies to resist concentration of effort and restraint in the matter of standards. Development of parliamentary approach means vocal demands from all areas. Contact with expatriates means emulation of expatriate standards. Necessary to persuade people and their representatives that they cannot expect too much too soon. Propaganda effort to this effect required, directed also at expatriates, some of whom tend to encourage indigenous aspirations of this kind.
• Training and employment of indigenes. Although progress made, difficulties in clerical field because of lack of basic education and unpopularity of clerical pursuits. Also shortages of technicians although these in demand by both government and private sector. Difficulties in placing indigenes in positions of responsibility because of resentment by other indigenes. Answers to these problems must lie in the adjustment of education, apprenticeship and training policies generally. Great scope for development of vocational guidance.5
[NAA: A452, 1967/1357]
1 The brief appears to have been co-authored by DOT and the Administration.
2 Date possibly refers to that of projected meeting.
3 That is, the report of 1964 by the International Bank for Reconstruction and Development (IBRD)—see introduction.
4 In a statement to the House, Henderson described District Co-ordinating Committees as having been ‘formed to help in development at district level; they have also been formed to assist in planning development at district level. They are arms of the executive government … [there are] standing instructions that they are to consult as widely as possible with local government councils, district advisory councils (DACs) and any other public body or person in districts on matters affecting district development’ ( House of Assembly debates , 12 September 1968, NLA: Nq 328.652 PAP, p. 554). The function of DACs is explained in footnote 4, Document 247.
5 An attachment outlined progress in achieving specific IBRD proposals.