30. What is a Purchase Order? Part 1

Charles Nikunu Yunupingu the Yolngu co-producers asks Richard Trudgen (RT) what is a purchase order? Purchase orders have caused a massive problem for Yolngu and Yolngu organisations over the 40 years + of association, I (RT) have had with Yolngu in Arnhem Land. So, I did a recheck with the co-producer to see if I had the same picture of where most Yolngu were in relation to them. What I heard again was the same as I had heard for decades, retold to me.

Most Yolngu understand purchase orders to be a special piece of paper that does not have to be paid for when used. It is seen as money, except you could just write what you wanted on it. That is, if you are lucky enough to get a purchase order, you can get the goods or services for nothing.
This will seem crazy to most economically literate Westerners, but once more, it shows the lack of information that Yolngu have access to. It also points to the major confusion where many Yolngu think that Balanda can just get most things they want for nothing. This is causing a major rebellion and law and order issues amongst a lot of younger Yolngu where they believe their parent cannot get this same access to the same level of goods. For some reason, they are not given a purchase order book

This understanding has caused many arguments between Balanda managers and bookkeepers, leading to many Yolngu bookkeepers walking away from their job due to these false expectations from their own people. And to the financial collapse of some Yolngu organisations. It has also led to arguments between the Yolngu client and the Balanda managers to the point where the Balanda managers resigned. I asked the Yolngu co-producer to give me an example of the arguments this misunderstanding caused. And I was given many, recorded in full later.
The meaning of Purchase Orders was easy to explain because Yolngu have a similar concept in the traditional economic system where they used to order things from other suppliers further down the trade tracks. This is called madjapala.

We used the theme of madjapala to explore the meaning of Purchase Orders, including how they are used, how only some businesses will accept them, where others demand cash and the need for an account before they will do business. During the recording of the conversation on Purchase Orders, the question came up as to what (wage) advances are. We have talked about advances before, but in this conversation, many Yolngu still think an Advance is another way of getting easy money.

Sadly, many bookkeepers in Aboriginal organisations get trapped in the paternalistic view that advances are needed for Aboriginal people. Which just makes the cycle of debt far worse.

There are 2 Stories in this podcast see below time stamps.

  • What is a Purchase Order? – 00:00
  • Purchase Orders and advances – 18:54
Hardwords discussed