Dinau Nation, PNG

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(Photo: Disused Village Trade Store, Buka Island, Autonomous Region of Bougainville, PNG)

The Papua New Guinea Government’s reckless borrowing from international lending institutions and foreign governments in recent years is well documented. The result of these poor borrowing habits by the national government is an uncertain future for PNG, now faced with massive accumulated debts that are unlikely ever to be repaid. What is less well known is the possible origin of the national leaders’ borrowing habits – dinau.

Dinau is described in the Tok Pisin to English dictionary as, “Debts/Obligations”. A dinau is incurred when a person receives goods, cash or services from a provider without payment, on the understanding that this debt will be promptly discharged, usually on an agreed date. If the transaction is honoured, dinau provides the borrower with a means of obtaining goods, cash or services at times of scarce financial resources. While many Papua New Guineans regard dinau as a part of their culture, it is, in fact, an important factor in constraining the nation’s economic development, from the village level up to the national government.

When a dinau is not honoured by the borrower it may be described as “borrowing in bad faith”. At the time of the transaction there may be an intention on the part of the borrower to repay the dinau, but this erodes over time to the point where there is little or no such intention. If the person to whom the dinau is owed requests repayment from the borrower, this approach will most likely be met with a promise to repay the debt in the immediate future. Further such approaches by the lender are likely to lead to growing resentment by the borrower, leading to a breakdown in good relations between the two. The resentment comes about by the borrower blaming the lender for agreeing to the dinau, the non-repayment of which has led to his or her embarrassment.

In villages across PNG, dishonoured dinau hampers the efforts of small-holders trying to earn a few kina by selling local tobacco, betel nuts or garden produce to fellow villages. Close relatives and extended family members are often the worst offenders when it comes to demanding dinau in this situation.  Fund-raising activities such as bazaars for churches and schools are similarly hampered by dishonoured dinau.

Dotted throughout PNG villages are trade-stores and fuel depots that have been forced to close because, sooner or later, dishonoured dinau reduces their cash-flow to the point where their operators are unable to purchase new stock. If the store operator refuses dinau to customers, particularly members of his or her extended family, they are likely to be regarded as behaving selfishly, and shunned by other villagers.

Having learned bad borrowing habits growing up in PNG villages where dinau is regarded as acceptable, many national parliamentarians appear to be applying the same principle when supporting PNG’s overseas borrowings. During the most recent Greek financial crisis, some commentators blamed village-based financial practices being applied to national government borrowing as a major factor in creating the problem.

Although it’s too late for the current crop of PNG politicians to improve their poor attitude to borrowing, an opportunity exists for PNG educational institutions to promote recognition of the threat that dinau poses to the nation’s economy. In time, PNG students can be educated to pay their own way in society, rather than becoming free-loaders on the hard work of their fellow citizens.