In a previous article I mentioned the ‘financial rat race’. I wish to elaborate on this term in this article. I hope that you will see whether you have been running that race. I also hope that you will make a commitment to get yourself out of the lifestyle I will be describing if it speaks of you.
Rats are favourite animals for scientists when it comes to experimentation. Over the years they have conducted many experiments on rats and the results have contributed to their understanding of the behaviour of human beings.
To understand the behavior of rats, and hence people, scientists usually place the animals in a maze, which is a box with many hallways and doors inside it, and they set the rats loose. The scientists look down upon a box, but to the small minds of the rats inside the box, it is a huge place with many passages and doors. So the rats run around in the box, thinking that they have taken a long journey, whereas the truth is that they have been running around inside a box. And the first rat that comes out at the other end of the maze gets a cheese as a reward. This is a literal ‘rat race’.
A ‘financial rat race’ is a term used to describe a lifestyle that basically involves working at a job, getting paid, paying off debt, taxes and bills, and going back to work again, without any savings, no investments and a lot of debt. It is being an active part of a system that was designed to get people to work hard without making progress in their lives.
People that have been working for a long time, progressed professionally, received higher pay over the years, but have nothing to show for it, have been running the financial rat race. They don’t have any savings or investments. Instead, they live from payday to payday. When unexpected events take place, they take payday loans, usually from informal lenders who charge very high interest rates. Borrowing is the way they solve their financial problems.
I have conducted personal financial management and investing seminars for the employees of corporate organizations for several years now. What I have found is that the majority of working people in PNG spend almost all of what they earn within a few days of the money landing in their accounts. Many have in fact borrowed against future income, so they have effectively spent the money before they have received it! Such people don’t have any savings. What they leave in their accounts is the minimum balance required by their banks to keep the accounts current. Many have surrendered their bank cards to lenders, who keep the cards until the loans are repaid in full.
Another interesting thing is that the people with the most financial problems are those that are relatively highly educated and occupy higher-paying positions. It seems that the higher the pay, the higher the level of indebtedness. In other words, the more they earn, the more they misuse, and the more they borrow. On the other hand, low paid employees (especially cleaners and tea boys) tend to save a lot of money, and they tend to lend to their highly-paid colleagues.
If what I have briefly described is the kind of lifestyle you have been living, it is time for you to take a really hard look on your financial life and make the changes you know are necessary for you to get out of the rat race. You may think that it is hard to save money in this high and rising cost economy, but the truth is that you can. You just need to be determined to analyse your costs and cut out all unnecessary items, do a budget and stick with it no matter what. You just cannot go on working, earning and spending like you have been doing up to now, especially now that you know what a ‘financial rat race’ is.
Sunday, September 11, 2011
High Food Prices: Problem Or Opportunity?
An important conference took place this week at the National Research Institute which brought together policy makers, farmers, food manufacturers, scientists, academics, researchers and interested members of the public. It was the Food Security Policy Conference on High Food Prices In Papua New Guinea.
The major concerns addressed by conference participants were:
1) What are the drivers of unprecedented food prices?
2) What are the impacts of escalating food prices on consumers? and
3) What can be done to reduce food prices for the benefit of the population?
Presentations were made under several sub-themes. These were:
1. Global and regional perspectives: trends in food prices and volatility, trade and international relations;
2. Food production and processing: industry and farmer perspectives, challenges, costing and pricing issues;
3. Food provision: food imports, packaging, marketing, transport and distribution;
4. Food consumption: impacts, affordability and coping mechanisms; and
5. Stakeholder interventions, strategy and options: the way forward.
The major lesson that has emerged from the conference is that food prices have been rising both internationally and domestically, and they are likely to escalate further. The concern in Papua New Guinea is not only that food prices are expected to rise, but the general price level for all goods and services (i.e. inflation) is expected to go into double-digits (meaning in excess of 10%) for the first time since 2003. The sum total of these developments is that people in the country will have to fork out more money from their pockets for food and others goods and services.
My presentation was on the major impediments or constraints, problems and challenges faced by food producers in the Highlands. High food prices indicate that there is a lot of demand for all kinds of food, but supply is low. In other words, high prices are supply-related.
There are many challenges faced by all farmers in producing and supplying food in the country, and the ones I highlighted are in fact common throughout the country. These are:
1. Market access. High prices of food indicate that there is a huge market for locally produced food, but access to those markets is a major impediment faced by farmers, due to reasons such as very bad road conditions, unavailability of transport and high fuel costs.
2. Increasing lawlessness discourages farmers from producing food. Many food gardens are destroyed during tribal conflicts. Food gardens, small-scale piggeries and poultries are also the subject of theft, and most farmers are subject to harassment by unemployed youth roaming in towns, drug addicts, and criminals.
3. Food producers are faced with high costs of imported production inputs such as fertilizers, weedicides, insecticides, seeds, feed, etc. Import duties contribute to high prices of these inputs.
4. In many parts of the Highlands arable land is becoming scarce with the increase in population. This is particularly so in areas which are near the main centres where access to markets is relatively easier. Land shortage is not yet a problem in more remote areas, but farmers in such areas have to carry farm produce on their backs for long distances in order to get to the main roads.
5. Generally, people who have been producing food and keeping the rest of the country fed have grown old over the years. Dwindling physical strength reflects itself in smaller quantities produced. Young people would rather look for jobs in the major centres than go back and work on the land. This may be a result of plain laziness or the mental programming they are subjected to while in school which conditions them to seek employment.
6. Efficient marketing systems are absent. Most farmers waste time and money transporting their produce to markets in Lae, Madang and Port Moresby. In the process they not only pay high costs of transport but also experience losses due to improper packing and handling, break down of trucks, bad market timing, etc. For instance, it costs about K70 to transport a bag of kaukau from a village in Mount Hagen to Port Moresby. When farmers lose money in the process, they get discouraged and stop producing altogether. It’s a case of ‘once bitten, twice shy’.
7. Food producers and farmers in general lack business skills such as farm planning, budgeting, costing, pricing, financial management, investing, etc. Highlands farmers tend to make huge gardens, plant and harvest them in one go, and when they make money, they tend more to spend the income than to save it. When they have money, they take long holidays. Farming is therefore ad hoc and unsustainable.
8. Commercial banks view farming as very risky and unbankable, so farmers don’t have access to credit.
I concluded by stating that food security equals national security. Papua New Guinea cannot go on importing food from other countries in the face of wars, terrorism, bio-terrorism, pollution, diseases, contamination, unfavourable weather due to climate change etc. The country lives a hand-to-mouth lifestyle; what it produces or imports, it consumes, hoping that food will keep on coming. There are not many food manufactures in the country, and no warehouses with strategic stocks. This is a very risky lifestyle.
Policy makers and other relevant authorities must create an environment that is conducive for food producers in the country, because everybody from the Prime Minister downwards eats on a daily basis. This becomes more imperative in light of an ever growing population. The farmers have land, time, labour and capital to produce, and they are willing to work because they too live in a world where they need money. If the major impediments are effectively addressed, our farmers can rise to the occasion and keep us all fed and healthy.
The title of this article is a question I posed at the conference: Is high prices a problem or an opportunity? The answer depends on which side of the market you are on. If you are a consumer, high prices of food is a major problem, because now you have to spend more money for the same quantity or basket of food you normally purchase for your household. Either that or you go for cheaper, lower-quality food, thereby placing your health and general welfare at peril.
But if you are a producer, high food prices is a great opportunity to take advantage of. I have been going around the country encouraging people, particularly young people, to till the land. To me, now is an opportune time for farmers in the country to make money. It is their time to become fully engaged in the cash economy, because now they have what the whole country needs: food. They have the opportunity to share in the wealth of the nation by working on their land, not receiving hand-outs.
High prices of food also provides an opportunity for the hundreds of thousands of unemployed young people to return to their villages and work the land. My assessment of the whole situation in the country is that people who will be handling most of the money coming out of the LNG and other resource projects are those who are self-employed: business people and farmers. Working class people will miss out, because they will be spending more, seeing the average family in PNG spends between 50 and 60% of their income on food.
I see rising food prices as an opportunity for PNG to experience a shift from rural-urban migration to urban-rural drift. I foresee unemployed young people as well as working people returning to their village as they realize that there is more money to be made there than in the towns. At least the land is rent-free, and the income is tax-free also.
The way I see it, politicians and policy-makers have no choice but to be more serious and committed in addressing the impediments faced by food producers in the country, whether they are farmers or manufacturers. It is in the personal interest of decision-makers to do it, because high food prices are hitting them in their hip pockets and just above their belts! It is now going to be a case of “address the problems of food producers and eat” or “neglect them and starve”!
My encouragement to unemployed young people and students reading this article is that they must seriously consider farming as a means of living. In fact I should extend it to working class people as well. Imagine a farm as your private pipeline into the economy. It is definitely not like sitting in an office for ten days and receiving a pay cheque, but you will never go wrong producing food. High and rising prices of food present a great opportunity to make a sustainable, comfortable, healthy and wealthy living. At least that is the way I see.
Finally, if you are already into producing food crops and livestock, you are doing the right thing at the right time. I encourage you to keep on keeping on. Do more of what you have been doing. The country needs you now more than ever. Shortage of food is the country’s problem; your problem may be money. Solve the country’s problem, and your problem will be solved. How about that?
The major concerns addressed by conference participants were:
1) What are the drivers of unprecedented food prices?
2) What are the impacts of escalating food prices on consumers? and
3) What can be done to reduce food prices for the benefit of the population?
Presentations were made under several sub-themes. These were:
1. Global and regional perspectives: trends in food prices and volatility, trade and international relations;
2. Food production and processing: industry and farmer perspectives, challenges, costing and pricing issues;
3. Food provision: food imports, packaging, marketing, transport and distribution;
4. Food consumption: impacts, affordability and coping mechanisms; and
5. Stakeholder interventions, strategy and options: the way forward.
The major lesson that has emerged from the conference is that food prices have been rising both internationally and domestically, and they are likely to escalate further. The concern in Papua New Guinea is not only that food prices are expected to rise, but the general price level for all goods and services (i.e. inflation) is expected to go into double-digits (meaning in excess of 10%) for the first time since 2003. The sum total of these developments is that people in the country will have to fork out more money from their pockets for food and others goods and services.
My presentation was on the major impediments or constraints, problems and challenges faced by food producers in the Highlands. High food prices indicate that there is a lot of demand for all kinds of food, but supply is low. In other words, high prices are supply-related.
There are many challenges faced by all farmers in producing and supplying food in the country, and the ones I highlighted are in fact common throughout the country. These are:
1. Market access. High prices of food indicate that there is a huge market for locally produced food, but access to those markets is a major impediment faced by farmers, due to reasons such as very bad road conditions, unavailability of transport and high fuel costs.
2. Increasing lawlessness discourages farmers from producing food. Many food gardens are destroyed during tribal conflicts. Food gardens, small-scale piggeries and poultries are also the subject of theft, and most farmers are subject to harassment by unemployed youth roaming in towns, drug addicts, and criminals.
3. Food producers are faced with high costs of imported production inputs such as fertilizers, weedicides, insecticides, seeds, feed, etc. Import duties contribute to high prices of these inputs.
4. In many parts of the Highlands arable land is becoming scarce with the increase in population. This is particularly so in areas which are near the main centres where access to markets is relatively easier. Land shortage is not yet a problem in more remote areas, but farmers in such areas have to carry farm produce on their backs for long distances in order to get to the main roads.
5. Generally, people who have been producing food and keeping the rest of the country fed have grown old over the years. Dwindling physical strength reflects itself in smaller quantities produced. Young people would rather look for jobs in the major centres than go back and work on the land. This may be a result of plain laziness or the mental programming they are subjected to while in school which conditions them to seek employment.
6. Efficient marketing systems are absent. Most farmers waste time and money transporting their produce to markets in Lae, Madang and Port Moresby. In the process they not only pay high costs of transport but also experience losses due to improper packing and handling, break down of trucks, bad market timing, etc. For instance, it costs about K70 to transport a bag of kaukau from a village in Mount Hagen to Port Moresby. When farmers lose money in the process, they get discouraged and stop producing altogether. It’s a case of ‘once bitten, twice shy’.
7. Food producers and farmers in general lack business skills such as farm planning, budgeting, costing, pricing, financial management, investing, etc. Highlands farmers tend to make huge gardens, plant and harvest them in one go, and when they make money, they tend more to spend the income than to save it. When they have money, they take long holidays. Farming is therefore ad hoc and unsustainable.
8. Commercial banks view farming as very risky and unbankable, so farmers don’t have access to credit.
I concluded by stating that food security equals national security. Papua New Guinea cannot go on importing food from other countries in the face of wars, terrorism, bio-terrorism, pollution, diseases, contamination, unfavourable weather due to climate change etc. The country lives a hand-to-mouth lifestyle; what it produces or imports, it consumes, hoping that food will keep on coming. There are not many food manufactures in the country, and no warehouses with strategic stocks. This is a very risky lifestyle.
Policy makers and other relevant authorities must create an environment that is conducive for food producers in the country, because everybody from the Prime Minister downwards eats on a daily basis. This becomes more imperative in light of an ever growing population. The farmers have land, time, labour and capital to produce, and they are willing to work because they too live in a world where they need money. If the major impediments are effectively addressed, our farmers can rise to the occasion and keep us all fed and healthy.
The title of this article is a question I posed at the conference: Is high prices a problem or an opportunity? The answer depends on which side of the market you are on. If you are a consumer, high prices of food is a major problem, because now you have to spend more money for the same quantity or basket of food you normally purchase for your household. Either that or you go for cheaper, lower-quality food, thereby placing your health and general welfare at peril.
But if you are a producer, high food prices is a great opportunity to take advantage of. I have been going around the country encouraging people, particularly young people, to till the land. To me, now is an opportune time for farmers in the country to make money. It is their time to become fully engaged in the cash economy, because now they have what the whole country needs: food. They have the opportunity to share in the wealth of the nation by working on their land, not receiving hand-outs.
High prices of food also provides an opportunity for the hundreds of thousands of unemployed young people to return to their villages and work the land. My assessment of the whole situation in the country is that people who will be handling most of the money coming out of the LNG and other resource projects are those who are self-employed: business people and farmers. Working class people will miss out, because they will be spending more, seeing the average family in PNG spends between 50 and 60% of their income on food.
I see rising food prices as an opportunity for PNG to experience a shift from rural-urban migration to urban-rural drift. I foresee unemployed young people as well as working people returning to their village as they realize that there is more money to be made there than in the towns. At least the land is rent-free, and the income is tax-free also.
The way I see it, politicians and policy-makers have no choice but to be more serious and committed in addressing the impediments faced by food producers in the country, whether they are farmers or manufacturers. It is in the personal interest of decision-makers to do it, because high food prices are hitting them in their hip pockets and just above their belts! It is now going to be a case of “address the problems of food producers and eat” or “neglect them and starve”!
My encouragement to unemployed young people and students reading this article is that they must seriously consider farming as a means of living. In fact I should extend it to working class people as well. Imagine a farm as your private pipeline into the economy. It is definitely not like sitting in an office for ten days and receiving a pay cheque, but you will never go wrong producing food. High and rising prices of food present a great opportunity to make a sustainable, comfortable, healthy and wealthy living. At least that is the way I see.
Finally, if you are already into producing food crops and livestock, you are doing the right thing at the right time. I encourage you to keep on keeping on. Do more of what you have been doing. The country needs you now more than ever. Shortage of food is the country’s problem; your problem may be money. Solve the country’s problem, and your problem will be solved. How about that?
Free Education Plus Unemployment Equals Disaster
Last week I had the privilege of participating at the National Development Forum on the theme ‘Creating Employment And Broad-Based Economic Opportunities And Government Actions For Implementation’. My paper was titled ‘Self-Employment: The Answer To Unemployment.’
The essence of my presentation was that Papua New Guinea’s workforce of some 3.8 million people has three options.
The first is to look for and secure paid employment. This is a nightmare for the majority of people today, particularly school leavers, because there just aren’t enough jobs for everyone. My estimate is that only 500,000 people of the total workforce are on salaries and wages employment (In fact the total number of people is probably around 400,000, but I am being generous here). If these estimates are correct, currently only 13% of the working-age population holds a paid job. The unemployment rate is very high - around 87%.
The situation is getting worse by the year, considering that the education system produces some 53,000 school leavers (or job seekers) while the economy generates around 10,000 new jobs in a year. The result is that over 40,000 young people cannot find the jobs that were promised them by the system.
Large resource development projects cannot generate enough jobs, because they are very capital-intensive. A classical example is the much-acclaimed LNG project. This multi-billion Kina project is expected to generate only 15,000 jobs during the construction phase (of which 5,000 will be nationals). When the project is operational, it will employ less than 1,000 jobs. The spin-off activities might actually provide more employment opportunities than the project itself. The same can be said of all the other projects.
The Government’s Medium Term Development Plan (MTDP) 2011-2015 aims to create 202,835 jobs by 2015 and 2,000,000 by 2030. But at an average growth rate of 2.3% per year, the country’s population will be around 11 million by 2030. It is clear that there will always be more job-seekers than the number of jobs available.
The conclusion that can be drawn from this analysis is that a paid job will not be a dream-come-true for the majority of school leavers. This leads to the second option available to people, which is to roam the streets in search of jobs. The situation is already explosive, with thousands of young people wandering around the streets of the major centres every day, looking for opportunities to make ends meet. I have stated in previous articles, and other people have said so too, that educated but unemployed young people in Papua New Guinea can be likened to a ‘time-bomb’. You can feel the bomb ticking as you go through the towns, markets, highways etc. The rise in social problems such as crime, prostitution, drug addiction etc are symptoms of the very high unemployment level in the country.
Given that this is the situation as it is, just imagine what it will be like when we push a lot of young people through the education system as a result of the proposed free education policy! We will have hundreds of thousands of educated people who cannot get jobs in the country. I say that is a recipe for disaster.
To avoid this inevitability, our young people must be a given a third option, which is self-employment. As regular readers of this column will have gathered by now, I am a preacher as it were of the gospel of self-employment. I am convinced that the logical and most viable alternative to paid jobs is for people to start small businesses and become self-employed.
We need to realize that our unemployed young people are not good-for-nothing failures and drop-outs. They are human beings with a lot of potential just like the few of us that are well-to-do. They possess intelligent minds (which may need to be reprogrammed to think of starting their own businesses rather than looking for jobs), skills and knowledge, time, strength and energy, natural talents and abilities, dreams and aspirations. Many have land in their villages. These are assets the nation can mobilize for development.
Most if not all young people do not realize that they have all the above. They have been so indoctrinated into expecting paid jobs at the end of the education process that they lose their self-belief once they get labeled as drop-outs or become unemployed. They need help to look within themselves to appreciate the greatness that lies within them. Somebody once said that what lies is above or around us pales into insignificance when compared to what lies within us. This is so true so far as our young people are concerned. They possess so much but don’t know that they do so, so they park at the minimum of their potential.
The following are the recommendations I made at the forum to tackle the high level of unemployment but also to provide real hope to the majority of the country’s workforce:
1. The Government to provide a business-friendly environment by introducing appropriate legislation and policies. A conducive environment for business includes better transport infrastructure, readily-available and low-cost utilities, law, good order and justice. Some laws and policies have to discriminate in favour of national businesses.
2. The National Government to introduce a National Entrepreneurship Training Program aimed at equipping school leavers and unemployed people with basic business skills. Ideally the program should be conducted by people that are already in business, not classroom teachers or academics, under a public-private partnership arrangement. The program should enable participants to gain a working knowledge of all business-related subjects (economics, accounting, law, management, investing, etc) as well as personal viability, ethics, leadership, etc.
3. The National Government to establish a Business Incubator Grant which people that have undergone the entrepreneurship training can access to start their own small businesses. The Independent Fellowship Scheme operates along these lines, but what I am proposing is a bigger program which gives most of the unemployed people an opportunity to be involved and engaged.
4. Provincial Governments to build up the capacities of their Divisions of Commerce and Primary Industry in order to provide advice and technical support to small business people in the provinces. Most of the businesses envisaged under the program will be agriculture-related.
5. The program to include on-going coaching and mentoring in order to minimizing the number of failed enterprises.
Papua New Guinea desperately needs more local businesses. It is business people that generate cash flow, multiply wealth and create jobs. The country needs thousands of them who can provide employment and hope to the thousands more that are living in hopelessness and poverty.
Even if the above proposal is not acceptable, something has to be done seriously to address the very high and increasing level of unemployment in the country. Otherwise, pushing more young people through school will be counter-productive in the long-run. The country will be filled with educated people without jobs who engage in unlawful activities to put food on the table. Lawlessness will repel both foreign and local investment, leading to more unemployment and lawlessness, and the vicious circle will continue.
In concluding, free education is a good policy. However, if it is for paid jobs that people go to school for, I have argued that there will never be enough for everyone. The best alternative is to empower the majority who are not likely to get jobs to start their own small businesses. The recommended training, funding and mentoring program should be introduced immediately, starting with the large number of unemployed people we already have in the country. The only other alternative is to allow unemployed people to continue to roam the streets, which will be bad for all of us.
The essence of my presentation was that Papua New Guinea’s workforce of some 3.8 million people has three options.
The first is to look for and secure paid employment. This is a nightmare for the majority of people today, particularly school leavers, because there just aren’t enough jobs for everyone. My estimate is that only 500,000 people of the total workforce are on salaries and wages employment (In fact the total number of people is probably around 400,000, but I am being generous here). If these estimates are correct, currently only 13% of the working-age population holds a paid job. The unemployment rate is very high - around 87%.
The situation is getting worse by the year, considering that the education system produces some 53,000 school leavers (or job seekers) while the economy generates around 10,000 new jobs in a year. The result is that over 40,000 young people cannot find the jobs that were promised them by the system.
Large resource development projects cannot generate enough jobs, because they are very capital-intensive. A classical example is the much-acclaimed LNG project. This multi-billion Kina project is expected to generate only 15,000 jobs during the construction phase (of which 5,000 will be nationals). When the project is operational, it will employ less than 1,000 jobs. The spin-off activities might actually provide more employment opportunities than the project itself. The same can be said of all the other projects.
The Government’s Medium Term Development Plan (MTDP) 2011-2015 aims to create 202,835 jobs by 2015 and 2,000,000 by 2030. But at an average growth rate of 2.3% per year, the country’s population will be around 11 million by 2030. It is clear that there will always be more job-seekers than the number of jobs available.
The conclusion that can be drawn from this analysis is that a paid job will not be a dream-come-true for the majority of school leavers. This leads to the second option available to people, which is to roam the streets in search of jobs. The situation is already explosive, with thousands of young people wandering around the streets of the major centres every day, looking for opportunities to make ends meet. I have stated in previous articles, and other people have said so too, that educated but unemployed young people in Papua New Guinea can be likened to a ‘time-bomb’. You can feel the bomb ticking as you go through the towns, markets, highways etc. The rise in social problems such as crime, prostitution, drug addiction etc are symptoms of the very high unemployment level in the country.
Given that this is the situation as it is, just imagine what it will be like when we push a lot of young people through the education system as a result of the proposed free education policy! We will have hundreds of thousands of educated people who cannot get jobs in the country. I say that is a recipe for disaster.
To avoid this inevitability, our young people must be a given a third option, which is self-employment. As regular readers of this column will have gathered by now, I am a preacher as it were of the gospel of self-employment. I am convinced that the logical and most viable alternative to paid jobs is for people to start small businesses and become self-employed.
We need to realize that our unemployed young people are not good-for-nothing failures and drop-outs. They are human beings with a lot of potential just like the few of us that are well-to-do. They possess intelligent minds (which may need to be reprogrammed to think of starting their own businesses rather than looking for jobs), skills and knowledge, time, strength and energy, natural talents and abilities, dreams and aspirations. Many have land in their villages. These are assets the nation can mobilize for development.
Most if not all young people do not realize that they have all the above. They have been so indoctrinated into expecting paid jobs at the end of the education process that they lose their self-belief once they get labeled as drop-outs or become unemployed. They need help to look within themselves to appreciate the greatness that lies within them. Somebody once said that what lies is above or around us pales into insignificance when compared to what lies within us. This is so true so far as our young people are concerned. They possess so much but don’t know that they do so, so they park at the minimum of their potential.
The following are the recommendations I made at the forum to tackle the high level of unemployment but also to provide real hope to the majority of the country’s workforce:
1. The Government to provide a business-friendly environment by introducing appropriate legislation and policies. A conducive environment for business includes better transport infrastructure, readily-available and low-cost utilities, law, good order and justice. Some laws and policies have to discriminate in favour of national businesses.
2. The National Government to introduce a National Entrepreneurship Training Program aimed at equipping school leavers and unemployed people with basic business skills. Ideally the program should be conducted by people that are already in business, not classroom teachers or academics, under a public-private partnership arrangement. The program should enable participants to gain a working knowledge of all business-related subjects (economics, accounting, law, management, investing, etc) as well as personal viability, ethics, leadership, etc.
3. The National Government to establish a Business Incubator Grant which people that have undergone the entrepreneurship training can access to start their own small businesses. The Independent Fellowship Scheme operates along these lines, but what I am proposing is a bigger program which gives most of the unemployed people an opportunity to be involved and engaged.
4. Provincial Governments to build up the capacities of their Divisions of Commerce and Primary Industry in order to provide advice and technical support to small business people in the provinces. Most of the businesses envisaged under the program will be agriculture-related.
5. The program to include on-going coaching and mentoring in order to minimizing the number of failed enterprises.
Papua New Guinea desperately needs more local businesses. It is business people that generate cash flow, multiply wealth and create jobs. The country needs thousands of them who can provide employment and hope to the thousands more that are living in hopelessness and poverty.
Even if the above proposal is not acceptable, something has to be done seriously to address the very high and increasing level of unemployment in the country. Otherwise, pushing more young people through school will be counter-productive in the long-run. The country will be filled with educated people without jobs who engage in unlawful activities to put food on the table. Lawlessness will repel both foreign and local investment, leading to more unemployment and lawlessness, and the vicious circle will continue.
In concluding, free education is a good policy. However, if it is for paid jobs that people go to school for, I have argued that there will never be enough for everyone. The best alternative is to empower the majority who are not likely to get jobs to start their own small businesses. The recommended training, funding and mentoring program should be introduced immediately, starting with the large number of unemployed people we already have in the country. The only other alternative is to allow unemployed people to continue to roam the streets, which will be bad for all of us.
Wednesday, August 31, 2011
Inflation And Its Effect On Real Income
Inflation is having a huge impact on everybody’s income. Inflation refers to a rise in the prices of goods and services over a period of time. In PNG it is measured by the Consumers’ Price Index, or CPI.
Inflation occurs for two main reasons. Firstly, when there is an increase in the cost of inputs which are used to produce goods and services. This is referred to as cost-push inflation. Secondly, when there is an increase in the demand for the goods and services (demand-pull). In this instance it is also referred to as “too much money chasing too few goods”.
When an economy grows, there is usually an increase of cash flow and liquidity, meaning that many people and entities such as private companies and the government have money to spend. This generates a demand for goods and services which are usually limited in supply. Excess demand forces prices upwards, leading to an increase in inflation.
This is our situation in PNG currently. It has been reported that inflation during the June quarter of this year was 9.6%. What this means is that prices have risen by that much over the March quarter of 2011.
Inflation affects different people in different ways and to different extents. But what it means for everyone is that real incomes fall when prices rise. This is so for the country as well as for individuals. Inflation reduces the Kina’s ‘purchasing power’, meaning that people need more money to buy the same basket of goods and services they had purchased prior to the rise in prices. So when the Bank of PNG reports that inflation was 9.6%, it is actually saying that incomes have fallen by 9.6% in real terms.
We have been hearing calls for employers to raise salaries and wages. We have also been hearing calls for a reduction in personal income taxes. These are all said to be measures which need to be taken to combat the effect of inflation on personal incomes, and hence the livelihoods of workers. But is raising wages or reducing income tax a solution to dealing with the impact of inflation?
The answer is no. While such measures may offer temporary relief, they cannot be long-term solutions, because there is a limit to how much salaries and wages can be raised, and how much taxes can be lowered.
What people can do to combat inflation is to start by cutting down on all unnecessary items of expense that they waste money on. Now when I say this, you may be thinking that you don’t waste money and that there are no unnecessary expenses. The truth is that most people waste a lot of money on unnecessary items. Four items which a lot of Papua New Guineans waste money on are cigarettes, betel nuts, alcohol and gambling. These are what I call expenses that add neither to your wealth nor your health. People spend thousands of Kina on these items without realizing it. Others may include mobile phone credits as a result of uncontrolled phone calls, giving to wantoks, customary obligations, etc.
The second way to combat inflation and maintain your lifestyle is to start a business. A business may not take off as you anticipate, and you may lose your investment, but it does give you the opportunity to realize returns which are higher than the rate of inflation. It also allows you to raise your prices as the prices of your inputs rise, such that some if not all of the rise in costs is passed on to consumers.
The way things are shaping up in PNG, inflation is going to be big headache for the majority of us. While the government and Central Bank use their different policy instruments to minimize inflation, we need to realize that rising prices is a necessary consequence of economic growth. As the economy grows, both the private sector and the government will spend money. This will generate a lot of demand for limited goods and services in the country, with the result that prices rise significantly, with a resultant negative impact on incomes.
My advice to readers is therefore that the time for throwing money around on unnecessary expense items is over. It is now time to tighten our belts, so to speak, and become more prudent in managing money.
Tuesday, August 23, 2011
YOUR ‘ACRE OF DIAMONDS’ MAY BE IN YOU OR UNDER YOUR FEET
I use many stories to teach valuable life principles in my books and seminars. One of my favourites is taken from a book titled “Acres of Diamonds”, which contains several speeches given by a gentleman by the name of Russel H. Cornwell.
In this book the author relates the story of an Iraqi farmer called Al Hafed. Al Hafed was a very rich man. He owned a large farm, a large number of servants, and of course, had a lot of money. He was content because he was rich, and rich because he was content.
One day an old Buddhist priest came to Al Hafed’s house. The two men talked well into the night, until the old man started talking to Al Hafed about diamonds. He told the host how diamonds were formed, and how priceless they are. He even told Al Hafed that if he had a diamond, he could buy a whole country. The story goes that that night, as the two parted to rest, Al Hafed went to bed a poor man – poor because he was discontented, and discontented because he thought he was poor. When he compared a diamond to his possessions, in his mind, he saw that he was poor. That night he made a very important decision. He was going to sell his farm and go out to the world searching for diamonds.
Very early in the morning Al Hafed asked the old man how he could find diamonds, to which the priest replied, “Diamonds are everywhere. If you look hard enough, you can find them anywhere.” With that, he was off on his journey. But before he departed, Al Hafed announced that he was going to sell his farm, leave his family with his relatives, and go out searching for diamonds.
The story goes that he searched all over the Middle East, then parts of Asia and Europe, until he came to Barcelona (Spain), a very tired and wretched man. He spent all his money, and by the time he landed in Barcelona, he was destitute. He stood over a cliff looking down at the sea crashing against the walls of the cliff, and couldn’t resist the temptation of jumping down and ending his life. After a few minutes of visualising his family and ex-farm and regretting the decision he had made, Al Hafed quietly jumped down the cliff end ended his miserable life.
The story continues that one day as the man who bought the farm off Al Hafed was walking by the creek that ran through the farm, he noticed something glistening in the water. He reached down and picked up a stone. Not knowing what kind of stone it was, he took it and placed on the window seal of his living room. Every time the sun came up in the morning, the stone would give off all kinds of colours.
One year later the same old priest came around on his annual rounds. He lodged with the new owner of the farm. Early the next morning he got up, and upon reaching the living room, he saw the stone on the window seal. He asked the host, “Has Al Hafed returned?” The man of the house responded, “We haven’t heard from Al Hafed for a year now. Maybe he died along the way.”
The priest replied, “If Al Hafed has not returned, how come I see a diamond in this house?” His host asked, “Where is the diamond?” The priest pointed to the stone on the window seal. The man told him it was just a good-looking stone, not a diamond, to which the priest replied, “I know a diamond when I see one. Where did you get it?” The man replied, “I picked it from the creek at the back of the house. There are many there.” So the excited priest and host went to the creek, and sure enough, they found so many nuggets. In fact the whole farm and the neighbouring area was an acre of diamonds! So the man who bought the farm from Al Hafed went on to becoming the richest man of his country.
The moral of the story is this: Many times the things which would provide us a decent living and even make us rich are around us, under us, or in us, but we overlook them because we think they are elsewhere. So we search far and wide in the places we think those things exist, and most of us die en route. If only we could search within us, we would find that we already possess what we need for our livelihood.
I don’t know about you, but ten years ago I was in the same position as our friend Al Hafed. I left my last job at the beginning of 2001. For the next 7 months I was unemployed. I wrote many letters to potential employers, only to be told that there weren’t any jobs for my set of qualifications and experience. Around August of that year, our church pastor came to encourage us. In the process, he made a mind-opening statement. He said, “Farmers use spades and knives to make their living; mechanics use spanners and screwdrivers; carpenters use hammers and saws.” Pointing to my desktop computer, he continued, “You can use that computer to make a living.”
That statement switched a light on in my mind. Suddenly I realised that I could combine the computer and my knowledge to make some money. I quickly wrote a short course on coffee exporting, which was then my area of speciality. I used the computer on my desk, and the knowledge I had inside my head. It took me one week to write the course, and another week to promote it among coffee exporters. I spent around K500 to print the course materials and hire the venue.
Within three weeks I made K12,000 from a five-day course. The net salary in my last job was K6,000 per month (or K1,500/week). By running the course, I made 8 times what I was paid, and it was tax-free too. My return on the K500 investment was 2,400%!
That experience changed my beliefs about myself, and the course of my life. It dawned on me that I was worth more than what people had been paying me. I have been self-employed since. When people have offered me jobs, I have refused, because I know that I can make more than they will ever pay me. I would simply be overworked and underpaid. Being on my own has given me the freedom to create several ways of making a living. I work as a freelance consultant. I have written five books so far, and am writing more. I have designed motivational seminars on academic excellence, personal finance, business, investing, book publishing etc. My “Seven Steps To Financial Freedom” motivational seminar has been well-received by several corporate organisations. I wouldn’t be living this kind of life if I was employed. Being unemployed has been the most positive thing that has happened in my life.
I have related Al Hafed’s story and my own experience to impress upon you that you already have what you need to succeed in life. In last week’s article I mentioned 6 things you have which if you appreciate and use, can set you for life. They are your mind, basic common sense, time, physical strength, natural talents, and land. If you combine these, money will come to you. If you think that you don’t have what you need to succeed, you will become discontented. You will become mentally blind to what you have in your hands, within you, or around you. Your mind will shut down. You will set your mind on far off things, and wish that you possessed those things, and therefore be filled with hopelessness.
Let me conclude by saying this: Your ‘acre of diamonds’ may be right where you are. What you need to start your own business or live a successful life may be in your head, under you feet, in your house, in your backyard, or in your hand. So look within before you look without.
One final thought: In the Biblical story of Moses at the burning bush, God asked Moses what he had in his hand. Moses told God it was just a shepherd’s rod, but God told Moses that it was a mighty instrument of deliverance from bondage for a nation. What have you in your hand? What have you in your head? What have you got in your house or backyard? What have you got under you feet?
SELF-EMPLOYMENT: THE SOLUTION TO UNEMPLOYMENT IN PNG
Paid jobs are scarce in Papua New Guinea. Of the tens of thousands of students coming out of our educational institutions, only a small proportion can get jobs after graduating with certificates, diplomas and degrees. Estimates I have seen are around 50,000 school leavers compared to around 10,000 new jobs, which means around 40,000 educated young people cannot find paid jobs, leading to an estimate 80% unemployment in urban areas. This is a cause of much frustration, both on the side of students and parents or sponsors. I believe that the inability to find paid jobs is one of the root causes of lawlessness in the country.
One of the major failures of the education system is that it prepares and mentally conditions students to expect paid jobs after leaving school. Those managing the system do not actually tell people that young people should be sent to school so they can get jobs, but the understanding and expectation exists. This is despite the fact that there aren’t enough jobs for everyone. The result is that every year parents pay a lot of money in school fees, hoping that their children make it as high up the educational ladder as possible, and ultimately end up with a degree in a particular field and a well-paying job. This dream actually turns out to be a nightmare for the majority of students and their parents.
When we look into history, we see that schools were introduced to train workers, either for the government or for private businesses, particularly following the Industrial Revolution. Prior to that, people basically lived off the land, like 85% of our people do today. In most countries, kings owned all the land. Everyone else was a peasant who worked the land belonging to the royal families. They handed over much of the harvest from the land to the landlords and lived off the rest. In Papua New Guinea, it was different. There were chiefs in most societies, but the land belonged to the tribes, clans and families. So basically, everybody worked on their own land. They were self-employed. Not many worked for others for payment.
Schools were introduced into Papua New Guinea by European missionaries and colonisers, to train mission and government workers. They came to Papua New Guinea from a background of making their living from paid jobs. The missionaries actually preached about going to heaven. That is how the missions were able to secure a lot of prime land in the country. They promised the people a better life in heaven, and stole their land in the process. The colonists introduced the idea of working for a regular pay, which was a completely new concept too. They even imposed taxes – and jailed those who didn’t pay up – so as to force people to go school to work for others.
The introduction of schools was done with good intentions, but one of the negative consequences was that school disengaged children from their land. By promising jobs with pay, school caused people to look away from their land which had provided their ancestors with a sustainable livelihood for generations. The education curriculum made English, Maths, Science and Social Science as the core subjects, and relegated Agriculture to being an optional or non-core subject. Even then, students were taught the science of agriculture, but not the business aspects of the subject.
That is why today, not many educated young people think about going back to work on their land after they drop out of the system or successfully graduate with various educational qualifications. All students look for jobs immediately upon graduating. Most that end up back home waste their time and lives doing nothing (and feeling really hopeless and good-for-nothing), while others flock into urban areas in search of paid jobs. This is all the result of the mental conditioning and programming they went through while at school. The brainwashing has been so perfectly accomplished that I would say not one student ever thinks about going back home and using their knowledge to work on their land.
These people do not believe that they can live comfortably by working their land. Even though they can see with their physical eyes how their relatives who have never been to school live in relative abundance, mentally, they become blind to the opportunities that surround them. All they think and dream about is paid jobs, and they are satisfied when they get very low paid jobs like security guards or shop assistants. They don’t earn much cash from these jobs, but they are content as long as they are employed. Being able to get a job inflates their ego so much that they become blind to the fact that uneducated people earn more from working on the land in a day than they earn from their jobs in a fortnight. This again is part of the mental programming they have received.
One of the messages I have been promoting through my books, seminars and talks at educational institutions, youth groups, associations and church gatherings is self-employment as a viable option to employment. Seeing that there aren’t enough opportunities to work for other people, young people need to seriously consider working for themselves. I am glad to report that a growing number of young people have taken the message to heart and have started going back to the land. I will publish actual life-stories of some of these young people in later articles. But it has not been an easy job demolishing the mental strongholds people have built up over the years in favour of paid jobs as a source of livelihood. Reprogramming peoples’ minds to think different is a difficult task.
I am convinced that the answer to unemployment in the country is not employment (i.e. paid jobs) but self-employment (i.e. informal business). Why do I say that? Because there will always be an excess of job seekers over the number of jobs available in the country. The education system will continue to produce workers far in excess of the number of new jobs being created by the public and private sectors on an annual basis. Even the large development projects cannot provide the jobs people need. The conclusion therefore is that only the agriculture and informal sectors possess the capacity to accommodate the large number of job seekers. These sectors provide the greatest opportunity for small business activities. That is why I say that self-employment is the way to go.
If the Government plays its role right (by building or maintaining roads, maintaining law and order, introducing subjects such as agriculture business and financial management etc into the education curriculum, providing training and credit), the rural areas can accommodate the majority of educated young people, leading to a substantial drop in the unemployment rate. When this happens, many other problems associated with unemployment can be effectively (and indirectly) addressed, with the result that PNG becomes a peaceful and prosperous country where everybody who is willing to work can live comfortably.
If you are unemployed, let me encourage you not to look down on yourself. Do not allow the fact that you don’t have a job rob you of your self-esteem. Don’t feel like you are useless or good-for-nothing. Don’t allow other people to make you feel that way. You have to break away from that kind of mindset. You have to look upon being unemployed as an opportunity, not a problem. It is an opportunity to create your own job and become your own boss.
The system has programmed you to believe that you need to be educated and have a job to become a success in life. The truth is that a university degree is not a necessity for success, and a paid job is certainly not necessary for one to live a good life. You can succeed just as you are, and you can start with what you have, right where you are. I will discuss more on this in future articles.
Think about working for yourself instead of working for somebody else and making them rich at your expense. When you get a job, you surrender your time, strength and skills to your employer for a salary. He pays you only a small proportion of what you make for him. He benefits more than you. When you work for yourself, everything you make is yours. You benefit fully from your time, knowledge, strength and skills.
So think about becoming your own boss. Stop thinking about becoming employed and start thinking about becoming self-employed. Think about starting and minding your own business.
Monday, August 22, 2011
The Rich Don’t Work For Money
The title of last week’s article was “Money: A Faithful Servant But A Terrible Master”. I stated that when money is servant, it works for you, but when it is master, it works against you.
I also stated that this is a secret rich people keep to themselves. They have designed the legal, economic, financial and education systems to keep the majority of people working for money while they themselves live in freedom. They use the media a lot to emphasise spending over saving and investing, so much so that people go to school, work for money, spend it on debt and expenses, and go back to work again. This is called the ‘financial rat race’. Sadly, the majority of the world’s population lives this lifestyle.
There are three classes of people all over the world: the rich, the poor, and the working or middle class. If you study the lives of rich people, you will notice that their lifestyles are different from the working class and the poor. One of the major differences you will see is what these three classes of people do. You will basically see that while the working class and the poor work their guts out for a living, the rich take life easy. For example, while the other two groups are working, the rich play golf all day or go to the gym and run on the treadmill. They are working on the next business deal, taking a trip somewhere, or just sleeping and reading while the others are running the ‘financial treadmill’.
Why are the lifestyles of these people different? It is basically because rich people have been able to capture money, tame it, and put it to work for them. They have been able to make money become their slave. Some rich people inherited their money, but many are self-made, meaning that they started by working, saving money, and investing in businesses and other assets. Once the money invested in the assets has started working, they (the people) have had to work less and less, until they have come to a point where they don’t need to work any longer. The harder and faster their money has worked to meet all their living expenses, the more relaxed their lives have become, until they have had to stop working for good.
This has been a process, and it has not been easy. In fact self-made rich people have worked very hard – even harder than the working class – during the initial stages. But unlike the working class and the poor who have spent all or most of what they have earned, those who have chosen to be rich have disciplined themselves. They have set financial goals, budgeted the money they have made, saved it, and invested it. They have taken a different route, which is why have ended up with a different result and destiny in life.
Notice I have stated that self-made rich people have chosen to be rich. It has been a definite decision they have made. You see, you decide whether you will become rich, poor or working class. The moment money falls into your hands is the time you decide what lifestyle you are going to live. In other words, when you have money in your palms, you are staring at your financial destiny right there. If you spend it, you will become poor; but if you save and invest it, you are destined to be rich.
Here is a statement Bill Gates, the founder of Microsoft Corporation and richest man on the planet has made: “If you are born poor, it’s not your fault; if you die poor, it’s your fault.” You may have been born poor, but that does not mean you have to die poor. It depends on how you handle the money you make from your job, farm, or sales you make if you are a street seller. If you spend it all, you will die poor, and you cannot blame anybody for that. But if you make money work for you by investing it, you can become and die rich.
I also stated that this is a secret rich people keep to themselves. They have designed the legal, economic, financial and education systems to keep the majority of people working for money while they themselves live in freedom. They use the media a lot to emphasise spending over saving and investing, so much so that people go to school, work for money, spend it on debt and expenses, and go back to work again. This is called the ‘financial rat race’. Sadly, the majority of the world’s population lives this lifestyle.
There are three classes of people all over the world: the rich, the poor, and the working or middle class. If you study the lives of rich people, you will notice that their lifestyles are different from the working class and the poor. One of the major differences you will see is what these three classes of people do. You will basically see that while the working class and the poor work their guts out for a living, the rich take life easy. For example, while the other two groups are working, the rich play golf all day or go to the gym and run on the treadmill. They are working on the next business deal, taking a trip somewhere, or just sleeping and reading while the others are running the ‘financial treadmill’.
Why are the lifestyles of these people different? It is basically because rich people have been able to capture money, tame it, and put it to work for them. They have been able to make money become their slave. Some rich people inherited their money, but many are self-made, meaning that they started by working, saving money, and investing in businesses and other assets. Once the money invested in the assets has started working, they (the people) have had to work less and less, until they have come to a point where they don’t need to work any longer. The harder and faster their money has worked to meet all their living expenses, the more relaxed their lives have become, until they have had to stop working for good.
This has been a process, and it has not been easy. In fact self-made rich people have worked very hard – even harder than the working class – during the initial stages. But unlike the working class and the poor who have spent all or most of what they have earned, those who have chosen to be rich have disciplined themselves. They have set financial goals, budgeted the money they have made, saved it, and invested it. They have taken a different route, which is why have ended up with a different result and destiny in life.
Notice I have stated that self-made rich people have chosen to be rich. It has been a definite decision they have made. You see, you decide whether you will become rich, poor or working class. The moment money falls into your hands is the time you decide what lifestyle you are going to live. In other words, when you have money in your palms, you are staring at your financial destiny right there. If you spend it, you will become poor; but if you save and invest it, you are destined to be rich.
Here is a statement Bill Gates, the founder of Microsoft Corporation and richest man on the planet has made: “If you are born poor, it’s not your fault; if you die poor, it’s your fault.” You may have been born poor, but that does not mean you have to die poor. It depends on how you handle the money you make from your job, farm, or sales you make if you are a street seller. If you spend it all, you will die poor, and you cannot blame anybody for that. But if you make money work for you by investing it, you can become and die rich.
Money: A Faithful Servant But A Terrible Master
A large proportion of the population of the country is struggling financially. Most of our folks in the rural areas think that people who hold jobs and work for money have a lot of money. This may have been true in the past but today the majority of working people are up to their necks with financial problems, especially debt. In fact, I would say that they are up to their noses in debt, barely breathing.
My conclusion from observing both farmers and the working class is that the great majority of them earn enough. Their problem is not making money; it is managing it, and multiplying it.
Financial literacy is a big need in this country. People need to learn how to make money work for them. I guess I wouldn’t be wrong if I said that people like accountants and economists are financially illiterate. You know why I say this? My answer is that if they were literate, they would be the most financially successful people around. The fact is, the majority of accountants and economists – people who have received financial training in school – are living hand-to-mouth lifestyles. They earn a lot, but they also spend a lot (in fact over spend), live beyond their means, and borrow a lot. They are academically bright and professionally successful, but financially unsuccessful.
One thing we all need to know is that money is a very faithful servant, but a very terrible master. Money is neutral the moment it lands in our hands. When we have it in our hands, we decide whether it will become our servant or our master. When we manage it well, save it and invest it, we turn it into our servant. We make it work for us. And it works on a 24/7/365 basis, which is to say, 24 hours a day, 7 days a week, and 365 days a year. It does not get tired, rest, sleep, observe public holidays etc. The faster it works (depending on where you have invested it), the more it produces more of its own kind. This, I believe, is the secret of the rich, which most of us have not been taught.
What the majority of us know is money as a master. We work our guts out for it, but when we get it into our hands, we don’t know how to harness its power for our benefit. The more we earn, the more we spend. This why coffee growers in the Highlands don’t have anything to show for the good international prices of the past two coffee seasons. And this is why the majority of salaried people have nothing to show for their educational qualifications, experience and the long years they have held paid jobs.
When money is servant, it works for us; when it is master, it works against us. When we work for money, it escapes us. It acts as if to say, “Catch me if you can.” But when money works for us, it reproduces itself. The more it does that, the less you need to work for it.
I hope you take stock of your financial affairs and the way you have been handling money up to now, and start giving it work to do instead of spending it all and going back to work for it yourself. I hope that you start making money your servant and not your master.
My conclusion from observing both farmers and the working class is that the great majority of them earn enough. Their problem is not making money; it is managing it, and multiplying it.
Financial literacy is a big need in this country. People need to learn how to make money work for them. I guess I wouldn’t be wrong if I said that people like accountants and economists are financially illiterate. You know why I say this? My answer is that if they were literate, they would be the most financially successful people around. The fact is, the majority of accountants and economists – people who have received financial training in school – are living hand-to-mouth lifestyles. They earn a lot, but they also spend a lot (in fact over spend), live beyond their means, and borrow a lot. They are academically bright and professionally successful, but financially unsuccessful.
One thing we all need to know is that money is a very faithful servant, but a very terrible master. Money is neutral the moment it lands in our hands. When we have it in our hands, we decide whether it will become our servant or our master. When we manage it well, save it and invest it, we turn it into our servant. We make it work for us. And it works on a 24/7/365 basis, which is to say, 24 hours a day, 7 days a week, and 365 days a year. It does not get tired, rest, sleep, observe public holidays etc. The faster it works (depending on where you have invested it), the more it produces more of its own kind. This, I believe, is the secret of the rich, which most of us have not been taught.
What the majority of us know is money as a master. We work our guts out for it, but when we get it into our hands, we don’t know how to harness its power for our benefit. The more we earn, the more we spend. This why coffee growers in the Highlands don’t have anything to show for the good international prices of the past two coffee seasons. And this is why the majority of salaried people have nothing to show for their educational qualifications, experience and the long years they have held paid jobs.
When money is servant, it works for us; when it is master, it works against us. When we work for money, it escapes us. It acts as if to say, “Catch me if you can.” But when money works for us, it reproduces itself. The more it does that, the less you need to work for it.
I hope you take stock of your financial affairs and the way you have been handling money up to now, and start giving it work to do instead of spending it all and going back to work for it yourself. I hope that you start making money your servant and not your master.
FREE MOTIVATIONAL BUSINESS SEMINARS FOR UNIVERSITY STUDENTS
The education system programs the minds of both students and parents to look forward to paid jobs after graduating from school. Unfortunately the majority of young people cannot get jobs because there aren’t enough jobs for everyone.
I have talked with many young people who roam the streets of centres like Goroka, Hagen, Lae and Moresby, and I have discovered that all of them had been to school at some stage. Many had dropped out, while a good number had completed their education, meaning they had attained certificates and diplomas. I have found degree holders on the streets too! The problem facing all of them is that they have not been able to find the jobs they had expected (or rather been led to expect).
I have reflected on the plight of these people, who I believe now number in the hundreds of thousands and are everywhere in the country. These are human beings, full of raw energy and potential, but that potential is being utilized for destructive purposes and not building up this nation due to hopelessness and despair. Most of them have admitted to stealing for a living. Some of them have even expressed how unfairly they are viewed and treated by other members of society. While they steal to survive each day, others who are already well-to-do steal millions and are allowed to get away with it. This adds to their frustration.
I have also had the privilege of providing advice to a large number of former drug addicts in the Western Highlands Province who are members of an organization called Operation Rausim Drugs Inc. The majority of members of this group (including females!) are school leavers who sought solace in drugs after job searching proved unfruitful.
The few of us who are privileged to hold jobs or own businesses, live in good houses behind razor-wire fences, drive around in air-conditioned vehicles, dine in hotels and restaurants etc, can feel the anger of the under-privileged in the air. You may be a highly-paid and well-respected high-flyer in your office, but you don’t feel safe on the streets which are increasingly under the control of the have-nots. Today you cannot move around without constantly looking over your back, or expecting a road block at every corner of our highways.
The situation is getting worse by the year, as the education system continues to produce over 50,000 school leavers while the public and private sectors can cater for only 10,000 people in terms of providing them with jobs. Education in this country for the majority of those coming out of school is a dead-end road. It is like a river over-shooting its banks when it floods. Educated but unemployed young people are filling both the rural and urban areas, and are literally spilling onto the streets.
I have been conducting motivational seminars for students and youth groups for a few years now. One thing I have come to appreciate is that most of our young people already know what they need to do. What they lack is encouragement to believe in themselves and to actually do what they already know is good for them. They need to be lifted on the inside, given a little push from the back, and provided some indication as to where they need to go. In other words, they need inspiration, motivation and direction.
Every young person needs to be told that not getting a job (or getting sacked from a job) is not the end of the world, and that the closing of one door means the opening of another. They need assurance that becoming a drop-out or not being able to get a paid job is an opportunity, not a problem. It is really a blessing in disguise. It is an opportunity life is offering them to combine the little knowledge they have gained from school with their physical strength, time and natural talents to start their own businesses and become their own bosses. As I tell church people, man’s disappointments are God’s appointments.
This is my message to you if you are a school drop-out or unemployed youth reading this article. You’ve got to be positive about your prospects in life. You’ve got to believe in yourself that you can carve out a living for yourself in the midst of all the seemingly insurmountable problems that surround you. You have been positively engineered and wired to succeed, so don’t be negatively geared in your mind. You’ve got to think a little different from the crowd you hang out with. You’ve got to think a bit deeper than you have been thinking up to now. You have a future ahead of you. Don’t short-circuit it with negative and shallow thinking.
If you care to look around you, you will realize that most self-made successful people started out with little education and little money. In fact, adversities like being drop-outs or getting terminated unexpectedly pushed them into business. I myself started out as a freelance consultant with less than K500 after my employer forced me to resign. I am living much better as my own boss than I would have as an employee. If I and such people have been able to make it, so can you. You just have to believe that you can do it too.
If you are a student attending the University of Goroka, University of Technology, University of PNG and Divine Word University, I encourage you to come to a free motivational seminar I will be conducting. The tentative dates are:
9th August – UoG
13th August – Unitech
27th August - UPNG
To be advised - DWU
The topic is ‘Becoming Your Own Boss’. I will be discussing why students need to think about starting their own businesses, followed by seven basic steps to business start-up. My objective is to present business as a viable option to a paid job, knowing that the majority of the participants will not be able to get jobs immediately upon graduation. I know from experience that the seminar will be a destiny-making experience for some students.
The seminar is my small contribution to addressing unemployment and the associated social and law and order problems in the country. When our young people are busy running their own businesses, they will have no time to create problems for the rest of us. And the more young people get into business, the brighter our corporate future.
It is my contribution to encouraging more national business people in light of the present situation where 90% of businesses in the country are in the hands of foreign entities after 36 years of independence. PNG may be a rich country, but if the wealth is controlled by foreigners, we will end up poor in the future.
Finally, it is my contribution to wealth creation under Vision 2050.
Thursday, December 16, 2010
YOU'VE GOT WHAT IT TAKES TO SUCCEED IN LIFE
Below is a speech I gave at the combined Grade 10 and 12 Graduation of Kitip Secondary School in the Western Highlands Province on Friday 12th November 2010.
I am very thankful to the Graduation Committee for giving me the opportunity to address the 28th Grade 10 and 6th 12 Graduation Ceremony of Kitip Lutheran Secondary School. The last time I came here for the same purpose was in 2008.
My speech today, which is from my heart, is titled “YOU’VE GOT WHAT IT TAKES TO SUCCEED IN LIFE.” It is aimed at both graduating and continuing students, as well as other young people who are in the crowd. I must warn that some things I say today may not go down well with your way of thinking.
Have you ever wondered what the basic ingredients which you need to become a successful person are? Many people think that to be successful, you must be educated to university level and hold a high-paying job. Others think you must be born into a rich family, or get married to someone rich. Some think people who gamble live good lives, so they spend their money in all forms of gambling, hoping to hit the jackpot one day. Some even think that they can live good lives if they sell drugs, or steal and rob, or ask for bribery before they perform services they are already paid to carry out.
What I want to tell you today is that every one of you, regardless of whether you are a student, a drop out or someone who has never been to school, already possesses the six basic ingredients necessary for success. Every one of you can become successful, regardless of how relatively uneducated you are, or how poor your backgrounds are, or how young or old you are. And there is no distinction between male and female here.
Let me share with you the six ingredients of success.
Firstly, you have SOUND MINDS. Your mind is the greatest asset which is totally misused and underutilised. Scientists say that the average person uses only 10% of their brain capacity between the cradle and the grave, or birth and death. 90% goes to the grave unused. Most of us don’t really think hard enough. Our thinking is very shallow. I normally say, “We think that we think, but we don’t really think”.
The main difference between people who are successful and those that fail lies in how efficiently and effectively they use their minds. Education only opens our minds to the options that are out there, but success comes from the way we think. That is why you will see that many uneducated people are successful, while many educated people are failures. Some of the most successful people in the world such as inventors have been school drop outs or people that have never been to school. But they are people who have used their minds more.
Related to our minds (and this is the second ingredient) is COMMON SENSE. All of us basically know what is right and what is wrong; what is good for us and what is bad. Common sense is what we are born with. You certainly don’t need to go to school to learn it! Today, common sense is uncommon. Most young people make decisions without thinking about the likely consequences on themselves or the rest of society. Most of the problems we face today can be traced to misuse of our minds. If you utilise your common sense (meaning that you do what is right and good for you), you will succeed in life.
The third ingredient for success is TIME. Time is an asset. There are two things about time: Firstly, God has allocated each one of us an equal amount of time. All of us have 24 hours in a day – 12 hours of daylight and 12 of night, or 8 hours for sleeping, 8 for working and 8 hours of free time. Secondly, time is something we cannot conserve for later use. It comes and goes. We either use it to our benefit, or lose it for good.
The world operates on the principle that “time is money”. However, in PNG, we waste a lot of time, and as a result, we waste many opportunities on all sorts of unfruitful endeavour, and we live in self-imposed poverty in a very rich country. Just imagine what our country would be like if everyone of us did an honest day’s work, for ourselves or for others.
Time, like the mind, is a resource which is most misused, especially by young people. For instance, a lot of young people go into town and waste the whole day just walking up and down the streets. If you sit in a particular spot for a certain length of time, you will see the same group of young men and women several times, going from town to the market, back to town and the market again. That is a complete waste of time and life.
If you desire to succeed, either as a student or as a young person, use your mind and your time wisely.
Fourthly, you have HEALTH and STRENGTH. Many of you young people take your strength for granted and apply it wrongly. For instance, many young men engage in unlawful activities. You need to realise that every night you go to bed very tired and worn out, but each morning you wake up with new strength to face the day’s challenges and take advantage of the opportunities each day presents to you. Do not take your health and strength for granted. Recognise them as your assets and use them for your benefit.
Fifthly, each one of you has NATURAL TALENTS which lie dormant in your lives. Talents are skills which you are born with. I am sorry to say this, but one thing about the education system is that it does not focus on helping students to develop their natural talents. If you look within yourself, you will be surprised at some of the things you can do are things which nobody has taught you. They are in-built, a part of your make-up. If you focus on developing these, you can become successful. Some of the most highly paid people today are movie, music and sports stars. These are people who have developed their talents to such levels that other people pay to see them in action. In my village is a grade 6 drop out who can build round houses so beautifully that today he builds houses for people on contract basis and earns at least K1,000 per house. That is an example of someone who uses his natural talents to make a living.
On top of these five – SOUND MINDS, COMMON SENSE, TIME, STRENGTH and TALENTS – in PNG we are very fortunate to own LAND. We are among a few countries in the world where nearly 100% of land is owned by the people. In most other countries land is owned by the State. And when we consider that land is the basis of wealth, we can say that Papua New Guineans are born rich and wealthy! Unfortunately, because we do not realise the value of land, we are becoming poor. People in some countries are born poor and become rich, but we in Papua New Guinea are born rich and become poor.
Papua New Guinea is a very rich country. Ours is the only country that has been described as “a mountain of gold floating on a sea of oil, and powered by gas.” The country is literally a gold field. Unfortunately, there isn’t much gold, copper, oil or gas in Western Highlands Province. But we have very fertile land on which we can produce food. In fact Western Highlands Province can become the “food basket” of the country, if only our leaders provide the people with the right incentives, and the people are willing to work. If you young people humble yourselves and work the land, you will become rich.
Students (and young people in the audience), I am telling you that if you combine your MIND, COMMON SENSE, TIME, PHYSICAL STRENGTH, GOD-GIVEN TALENTS and LAND, you can become successful in life. What you need to realise is that you have all these ingredients available to you RIGHT NOW!
Notice that I have not included EDUCATION, a high-paying JOB or MONEY as ingredients for success. Let me explain why. Taking education first, let me say this: YOU DON’T NEED A UNIVERSITY DEGREE TO SUCCEED IN LIFE. How do I know this? By observing that the majority of university graduates are failing financially and in other areas of life, while the relatively uneducated are succeeding. That tells me that being highly educated does not automatically equate to being successful.
You see, the purpose of education is not to enable you to get a paying job. So many of us make an automatic connection between school and jobs. This is wrong. And this is why we have so many young people becoming frustrated all over the country because they cannot get jobs. No. The purpose of education is to provide you with information and knowledge. When you possess knowledge, your mind becomes open to the many options that are out there, so that you can see several ways of making a living for yourself.
GETTING A PAID JOB IS JUST ONE OPTION IN LIFE, NOT THE ONLY OPTION. In fact, IF YOU WANT TO MAKE A LOT OF MONEY, A PAID JOB IS THE LAST OPTION YOU WOULD CONSIDER, NOT THE FIRST. Why do I say this? Well, if you look around, the people making the most money are not people who work for others; those who make the most money are those who work for themselves. And many such people are uneducated.
Now let’s look at money. In my list of assets you have to possess to succeed, I did not include money. THIS IS BECAUSE MONEY IS JUST A BY-PRODUCT OF APPLYING YOUR MIND, TIME, STRENGTH, TALENTS and LAND. Many people think they need money to succeed, but this is incorrect. If you combine what you have, money will come. YOU DON’T NEED MONEY TO MAKE MONEY; YOU CAN MAKE MONEY WITHOUT MONEY – PARTICULARLY IN PAPUA NEW GUINEA.
As some of you may know, I am an advocate of SELF-EMPLOYMENT. I have written a book on the subject called Be Your Own Boss and I have been sharing my ideas in the newspapers. I am glad to report today that many Papua New Guineans are catching the idea and are starting their own businesses. I believe that is the way to go. The country needs many small business people who create jobs. We have too many job-seekers. We need to take our economy back from large multinational corporations and foreign businesses that are mushrooming all over the country.
With the LNG project and other resource developments taking place all over the country, the environment is right for us local people to start small businesses. Let us not leave the playing field wide open for Asians to play the game. We must not complain when they succeed under our noses. We must get in, play the game, and beat them.
So my friends – students, parents and teachers - I am sorry if I have messed up your minds by what I have said today, but before you dismiss it and stick to the old way you have been looking at life, I urge to you think deeply about what I have said today.
I would even go so far as to suggest to you that if you do not make it to Grade 11 or a tertiary institution next year, BE VERY GLAD, NOT VERY SAD. Take it as an opportunity to do something with your time, mind, strength, talents and land. Don’t rush to upgrade your marks or look for other options to further your education. Consider the option of starting a small business instead. Be committed to it, and I can assure you that in 2-6 years time when your colleagues who have continued up the educational ladder start looking for jobs, you will be a few years ahead of them financially . When you have the money, you can always go back to school if you feel you need it.
Let me end with a Bible story. In the book of Exodus Chapters 3 and 4, we read about the encounter Moses had with Jehovah God, where God calls Moses to go to Egypt and rescue the people of Israel from bondage. Moses tries to make God change His mind by giving excuses as to why he is not the right person to carry out the assignment. But God insists that Moses is the right person for the job. He tells Moses, “I will be with you.” Then He asks Moses what he has in his hand. Moses replies that he has a shepherd’s rod. God tells Moses to throw the stick onto the ground, and when Moses does so, the stick turns into a serpent and Moses jumps away from it. God instructs Moses to pick the snake up by its tail, and when Moses does so, it turns back into a stick. God tells Moses, “I am going to perform many miracles, signs and wonders with this rod, and deliver the Israelites from slavery.”
Notice that to Moses, the rod was just a rod; to God, it was mighty instrument of signs, wonders, miracles and deliverance. God already saw what Moses had in his hand, but yet He asked Moses what it was. Why did God ask Moses? So that Moses could realise that what he had was more than a shepherd’s rod. It was something greater than Moses thought.
One thing we can learn from this story, which is relevant to my message today, is that sometimes the things which we think are insignificant are the very things that can help us succeed in life. We tend to overlook them, because we think our success ingredients are in some other place or in some other people.
So students, in closing, let me reiterate: YOU’VE GOT WHAT IT TAKES TO SUCCEED IN LIFE! You possessed the ingredients before you came to school. Now that you are educated, you have increased your chances for success, because now you possess not only a sound mind and common sense, but an educated mind. You should succeed regardless of whether you continue on to further education or the system pushes you out. If you find out next year that your name has been dropped from those who will be entering a tertiary institution or Grade 11, don’t worry about that. You may not be able to obtain a tertiary qualification, but you can still succeed, because you have what it takes to succeed.
To graduating students, CONGRATULATIONS! To everyone, an early MERRY CHRISTMAS AND A HAPPY NEW YEAR!
God bless you all!
I am very thankful to the Graduation Committee for giving me the opportunity to address the 28th Grade 10 and 6th 12 Graduation Ceremony of Kitip Lutheran Secondary School. The last time I came here for the same purpose was in 2008.
My speech today, which is from my heart, is titled “YOU’VE GOT WHAT IT TAKES TO SUCCEED IN LIFE.” It is aimed at both graduating and continuing students, as well as other young people who are in the crowd. I must warn that some things I say today may not go down well with your way of thinking.
Have you ever wondered what the basic ingredients which you need to become a successful person are? Many people think that to be successful, you must be educated to university level and hold a high-paying job. Others think you must be born into a rich family, or get married to someone rich. Some think people who gamble live good lives, so they spend their money in all forms of gambling, hoping to hit the jackpot one day. Some even think that they can live good lives if they sell drugs, or steal and rob, or ask for bribery before they perform services they are already paid to carry out.
What I want to tell you today is that every one of you, regardless of whether you are a student, a drop out or someone who has never been to school, already possesses the six basic ingredients necessary for success. Every one of you can become successful, regardless of how relatively uneducated you are, or how poor your backgrounds are, or how young or old you are. And there is no distinction between male and female here.
Let me share with you the six ingredients of success.
Firstly, you have SOUND MINDS. Your mind is the greatest asset which is totally misused and underutilised. Scientists say that the average person uses only 10% of their brain capacity between the cradle and the grave, or birth and death. 90% goes to the grave unused. Most of us don’t really think hard enough. Our thinking is very shallow. I normally say, “We think that we think, but we don’t really think”.
The main difference between people who are successful and those that fail lies in how efficiently and effectively they use their minds. Education only opens our minds to the options that are out there, but success comes from the way we think. That is why you will see that many uneducated people are successful, while many educated people are failures. Some of the most successful people in the world such as inventors have been school drop outs or people that have never been to school. But they are people who have used their minds more.
Related to our minds (and this is the second ingredient) is COMMON SENSE. All of us basically know what is right and what is wrong; what is good for us and what is bad. Common sense is what we are born with. You certainly don’t need to go to school to learn it! Today, common sense is uncommon. Most young people make decisions without thinking about the likely consequences on themselves or the rest of society. Most of the problems we face today can be traced to misuse of our minds. If you utilise your common sense (meaning that you do what is right and good for you), you will succeed in life.
The third ingredient for success is TIME. Time is an asset. There are two things about time: Firstly, God has allocated each one of us an equal amount of time. All of us have 24 hours in a day – 12 hours of daylight and 12 of night, or 8 hours for sleeping, 8 for working and 8 hours of free time. Secondly, time is something we cannot conserve for later use. It comes and goes. We either use it to our benefit, or lose it for good.
The world operates on the principle that “time is money”. However, in PNG, we waste a lot of time, and as a result, we waste many opportunities on all sorts of unfruitful endeavour, and we live in self-imposed poverty in a very rich country. Just imagine what our country would be like if everyone of us did an honest day’s work, for ourselves or for others.
Time, like the mind, is a resource which is most misused, especially by young people. For instance, a lot of young people go into town and waste the whole day just walking up and down the streets. If you sit in a particular spot for a certain length of time, you will see the same group of young men and women several times, going from town to the market, back to town and the market again. That is a complete waste of time and life.
If you desire to succeed, either as a student or as a young person, use your mind and your time wisely.
Fourthly, you have HEALTH and STRENGTH. Many of you young people take your strength for granted and apply it wrongly. For instance, many young men engage in unlawful activities. You need to realise that every night you go to bed very tired and worn out, but each morning you wake up with new strength to face the day’s challenges and take advantage of the opportunities each day presents to you. Do not take your health and strength for granted. Recognise them as your assets and use them for your benefit.
Fifthly, each one of you has NATURAL TALENTS which lie dormant in your lives. Talents are skills which you are born with. I am sorry to say this, but one thing about the education system is that it does not focus on helping students to develop their natural talents. If you look within yourself, you will be surprised at some of the things you can do are things which nobody has taught you. They are in-built, a part of your make-up. If you focus on developing these, you can become successful. Some of the most highly paid people today are movie, music and sports stars. These are people who have developed their talents to such levels that other people pay to see them in action. In my village is a grade 6 drop out who can build round houses so beautifully that today he builds houses for people on contract basis and earns at least K1,000 per house. That is an example of someone who uses his natural talents to make a living.
On top of these five – SOUND MINDS, COMMON SENSE, TIME, STRENGTH and TALENTS – in PNG we are very fortunate to own LAND. We are among a few countries in the world where nearly 100% of land is owned by the people. In most other countries land is owned by the State. And when we consider that land is the basis of wealth, we can say that Papua New Guineans are born rich and wealthy! Unfortunately, because we do not realise the value of land, we are becoming poor. People in some countries are born poor and become rich, but we in Papua New Guinea are born rich and become poor.
Papua New Guinea is a very rich country. Ours is the only country that has been described as “a mountain of gold floating on a sea of oil, and powered by gas.” The country is literally a gold field. Unfortunately, there isn’t much gold, copper, oil or gas in Western Highlands Province. But we have very fertile land on which we can produce food. In fact Western Highlands Province can become the “food basket” of the country, if only our leaders provide the people with the right incentives, and the people are willing to work. If you young people humble yourselves and work the land, you will become rich.
Students (and young people in the audience), I am telling you that if you combine your MIND, COMMON SENSE, TIME, PHYSICAL STRENGTH, GOD-GIVEN TALENTS and LAND, you can become successful in life. What you need to realise is that you have all these ingredients available to you RIGHT NOW!
Notice that I have not included EDUCATION, a high-paying JOB or MONEY as ingredients for success. Let me explain why. Taking education first, let me say this: YOU DON’T NEED A UNIVERSITY DEGREE TO SUCCEED IN LIFE. How do I know this? By observing that the majority of university graduates are failing financially and in other areas of life, while the relatively uneducated are succeeding. That tells me that being highly educated does not automatically equate to being successful.
You see, the purpose of education is not to enable you to get a paying job. So many of us make an automatic connection between school and jobs. This is wrong. And this is why we have so many young people becoming frustrated all over the country because they cannot get jobs. No. The purpose of education is to provide you with information and knowledge. When you possess knowledge, your mind becomes open to the many options that are out there, so that you can see several ways of making a living for yourself.
GETTING A PAID JOB IS JUST ONE OPTION IN LIFE, NOT THE ONLY OPTION. In fact, IF YOU WANT TO MAKE A LOT OF MONEY, A PAID JOB IS THE LAST OPTION YOU WOULD CONSIDER, NOT THE FIRST. Why do I say this? Well, if you look around, the people making the most money are not people who work for others; those who make the most money are those who work for themselves. And many such people are uneducated.
Now let’s look at money. In my list of assets you have to possess to succeed, I did not include money. THIS IS BECAUSE MONEY IS JUST A BY-PRODUCT OF APPLYING YOUR MIND, TIME, STRENGTH, TALENTS and LAND. Many people think they need money to succeed, but this is incorrect. If you combine what you have, money will come. YOU DON’T NEED MONEY TO MAKE MONEY; YOU CAN MAKE MONEY WITHOUT MONEY – PARTICULARLY IN PAPUA NEW GUINEA.
As some of you may know, I am an advocate of SELF-EMPLOYMENT. I have written a book on the subject called Be Your Own Boss and I have been sharing my ideas in the newspapers. I am glad to report today that many Papua New Guineans are catching the idea and are starting their own businesses. I believe that is the way to go. The country needs many small business people who create jobs. We have too many job-seekers. We need to take our economy back from large multinational corporations and foreign businesses that are mushrooming all over the country.
With the LNG project and other resource developments taking place all over the country, the environment is right for us local people to start small businesses. Let us not leave the playing field wide open for Asians to play the game. We must not complain when they succeed under our noses. We must get in, play the game, and beat them.
So my friends – students, parents and teachers - I am sorry if I have messed up your minds by what I have said today, but before you dismiss it and stick to the old way you have been looking at life, I urge to you think deeply about what I have said today.
I would even go so far as to suggest to you that if you do not make it to Grade 11 or a tertiary institution next year, BE VERY GLAD, NOT VERY SAD. Take it as an opportunity to do something with your time, mind, strength, talents and land. Don’t rush to upgrade your marks or look for other options to further your education. Consider the option of starting a small business instead. Be committed to it, and I can assure you that in 2-6 years time when your colleagues who have continued up the educational ladder start looking for jobs, you will be a few years ahead of them financially . When you have the money, you can always go back to school if you feel you need it.
Let me end with a Bible story. In the book of Exodus Chapters 3 and 4, we read about the encounter Moses had with Jehovah God, where God calls Moses to go to Egypt and rescue the people of Israel from bondage. Moses tries to make God change His mind by giving excuses as to why he is not the right person to carry out the assignment. But God insists that Moses is the right person for the job. He tells Moses, “I will be with you.” Then He asks Moses what he has in his hand. Moses replies that he has a shepherd’s rod. God tells Moses to throw the stick onto the ground, and when Moses does so, the stick turns into a serpent and Moses jumps away from it. God instructs Moses to pick the snake up by its tail, and when Moses does so, it turns back into a stick. God tells Moses, “I am going to perform many miracles, signs and wonders with this rod, and deliver the Israelites from slavery.”
Notice that to Moses, the rod was just a rod; to God, it was mighty instrument of signs, wonders, miracles and deliverance. God already saw what Moses had in his hand, but yet He asked Moses what it was. Why did God ask Moses? So that Moses could realise that what he had was more than a shepherd’s rod. It was something greater than Moses thought.
One thing we can learn from this story, which is relevant to my message today, is that sometimes the things which we think are insignificant are the very things that can help us succeed in life. We tend to overlook them, because we think our success ingredients are in some other place or in some other people.
So students, in closing, let me reiterate: YOU’VE GOT WHAT IT TAKES TO SUCCEED IN LIFE! You possessed the ingredients before you came to school. Now that you are educated, you have increased your chances for success, because now you possess not only a sound mind and common sense, but an educated mind. You should succeed regardless of whether you continue on to further education or the system pushes you out. If you find out next year that your name has been dropped from those who will be entering a tertiary institution or Grade 11, don’t worry about that. You may not be able to obtain a tertiary qualification, but you can still succeed, because you have what it takes to succeed.
To graduating students, CONGRATULATIONS! To everyone, an early MERRY CHRISTMAS AND A HAPPY NEW YEAR!
God bless you all!
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