Poorest country in bloc to host meeting of world leaders for first time – but some can’t even bring themselves to stay overnight

'Can they really pull it off?': the Apec summit comes to Papua New Guinea

It is likely to end, as all Apec leaders summits do, with world leaders, including Xi Jinping, Mike Pence, Shinzo Abe, Justin Trudeau and Australian prime minister Scott Morrison, donning matching shirts and posing awkwardly for a photo op.

But this week world leaders will arrive in Port Moresby, the capital of Papua New Guinea, for an Apec unlike any other.

This is the first time Papua New Guinea, the poorest country among the 21 countries of the Asia Pacific Economic Cooperation (Apec) bloc, has hosted the summit.

PNG ranks around 130th worldwide for GDP and 135th in the corruption perception index, and Port Moresby is consistently ranked one of the most dangerous cities in the world, which could be the reason that at least one leader – Mike Pence – will not be staying in the host country, but will be flying in and out from the Australian city of Cairns.

Facebook Twitter Pinterest Justin Trudeau (centre) jokes around with fellow leaders, including PNG prime minister Peter O’Neill (right of Trudeau) during the taking of the 2016 group photo, an annual tradition at the Apec leaders summit. Photograph: Sean Kilpatrick/AP

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The PNG government hopes that the nation will emerge with trade agreements and a new standing on the world stage, but the the arrival of thousands of people will test the country. The road to Apec has been a rocky and unconventional one, involving three cruise ships, 40 Maseratis and Hillary Clinton.

Clinton, in fact, is where it all started, says Jonathan Pryke, director of the Pacific Islands program for the Lowy Institute, a Sydney thinktank.

“Everyone has a different story about how [Apec ended up in PNG],” he said.

‘We’re sick of people thinking we’re in Africa’

One story commonly told in Australian diplomatic circles is that the idea was first floated by the former US secretary for state in 2012 when she attended the Pacific Island Leaders Forum.

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A senior diplomatic figure familiar with the negotiations said while Clinton might have been keen, her government and the Australian government were not. “There were a lot of reservations and a lot of concerns about logistical capacity ... I recall a lot of dialogue between Washington and Canberra about it: can they really pull this off?”

What is not in question is that the Papua New Guinean government wanted to host Apec.

“I think it’s about narrative and legacy and encouraging Papua New Guineans to take a pride in themselves and their country,” said Ian Kemish, former Australian high commissioner to PNG. “Clearly you’ve just got to look at [prime minister Peter O’Neill’s] public comments to see that he also wants to use it as an opportunity, almost as a lever, to bring in investment to the country and to bring off some key announcements, particularly in the resource sector.”

“You’ll hear PNG officials say ‘we’re sick of people thinking we’re in Africa, we want to be on the map,’” said Pryke. “[Apec] is a big PR pitch and they do need to and want to diversify their economy. There’s a lot of noble ambition to what they want Apec to achieve.”

It was announced that PNG would host the summit in 2013, at a time the outlook for the country was bright, owing to a construction boom as a huge LNG project in the highlands of the country was being built.

“GDP growth for that year in PNG was among the highest anywhere in the world, it was booming,” said Pryke.

If PNG’s economy had followed the trajectory it seemed to be set on, then hosting Apec in 2018 could have been exactly what the country needed: a moment to announce itself on the world stage and an opportunity to promote private sector investment.

However, just as the LNG facility was supposed to come online, the oil price plummeted. Since then a litany of problems have played out in the country, including an outbreak of polio, as well as sharp rises in the incidence of malaria and tuberculosis – and a struggling economy.

Maseratis, cruise liners and ‘the China show’

Spending on Apec has been met with widespread anger across the country, culminating in Maserati-gate in October, after it was revealed the government had purchased 40 Maseratis and three luxury Bentleys for the summit. Diplomatic sources told Reuters that nearly all leaders attending the event would travel in special armoured vehicles, making it unclear what the sports cars will be used for.

“There are a lot of people, not just in Port Moresby but around PNG who are outraged by the spending on Apec which seems to be extravagant,” said Martyn Namorong, a writer and activist in Port Moresby. “Many people feel it’s not been clearly articulated to them what the benefits of Apec will be.”

Facebook Twitter Pinterest There was a nationwide strike to protest the government’s purchase of 40 Maseratis for Apec, which was seen as a sign of government largesse. Photograph: Handout ./Reuters

The challenges of hosting Apec are significant. Alan Bollard, executive director of the Apec Secretariat estimates 5,000-7,000 people are expected to arrive in Port Moresby this week. Because of a lack of hotel rooms, the city has had to contract three cruise ships to be used as floating accommodation for media and other attendees.

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The US will be represented at the summit by Mike Pence who will not be staying in PNG, but will fly in from Cairns in Australia. He is the only leader confirmed not to be staying in PNG, but there are rumours other leaders may do the same.

“It’s not a great look,” said Pryke of the US vice-president’s decision not to stay in the host country.

While Pence’s short visit may offend, the fact that he, and not Donald Trump, is going to Apec is unlikely to ruffle feathers. “People are being fairly philosophical about it,” said Kemish. “It’s not the first time a US president hasn’t been to Apec. Pence actually has a bit of status around here, apparently he played a role in getting the old King James Bible into the country as a gift to the national parliament.”

But the real love-fest of the summit is likely to be between PNG and China.

“It’s already going to be the China show,” said Pryke. “Xi’s going for a long time … and he’s hosting a meeting with the Pacific Island leaders on the sideline of the leaders meeting and I imagine there will be a lot of big announcements – more investment, more aid.”

‘The toothpaste is out of the tube’

China has already indicated its intentions to partner closely with the country, pledging to give the nation $3.94bn in aid and loan projects last year. This has concerned Australia, traditionally PNG’s closest partner. In the week before Apec, the Australian government announced AU$3bn in additional funding to the Pacific, which was widely seen as a move to counter China’s growing influence in the region.

China provided significant infrastructure support to PNG ahead of Apec and Australia has contributed at least AU$130m, largely in the area of security. Diplomatic sources say this was something Australia was keen to do, particularly in order to keep the Chinese military out of PNG, which at its closest point is just 4km from Australia.

Facebook Twitter Pinterest Australian Prime Minister Scott Morrison (right) and Prime Minister of Papua New Guinea Peter O’Neill sign an agreement in Sydney on 1 November 1, 2018. Photograph: Dan Himbrechts/AAP

Commentators are unanimous that for Apec to be a success requires more than just an incident-free summit.

“PNG has an opportunity to drive forward a range of significant economic projects and send a message to the international investor community that it is competitive and truly part of the global community,” said Kemish.

“There’s no turning back now, the toothpaste is out of the tube,” said Pryke. “It’s in everyone’s interests for this to be a success, however you want to define it, and also for it just to be done. It has been a huge distraction, both financially and on the bureaucracy.”