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Papua New Guinea: longer term developments and recent economic problems

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  • Ron Duncan
  • Ila Temu

Abstract

Papua New Guinea (PNG) has much to learn from the Indonesian economic experience of coping with one booming sector while creating an environment in which the economy could generate jobs. PNG's macroeconomic policy adjustments to the boom‐bust cycles which characterise its economy work extremely well by comparison to most other developing countries experiencing the same difficulties. At the microeconomic level, policy improvement has been harder, with the rhetoric far out‐distancing the actual advances. The challenge is to improve the productivity of the agricultural sector, to raise the education levels, and to attract investment to provide employment. At present the investment environment is bleak because of the deteriorating law and order situation.

Suggested Citation

  • Ron Duncan & Ila Temu, 1995. "Papua New Guinea: longer term developments and recent economic problems," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 9(2), pages 36-54, November.
    • Handle: RePEc:bla:apacel:v:9:y:1995:i:2:p:36-54
    DOI: 10.1111/j.1467-8411.1995.tb00112.x
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