Papua New Guinea, from stabilisation to growth?

Abstract

After a surge of growth from 1990 to 1994, the Papua New Guinea economy regressed. The 1994 crisis, however, has left a determination to chart the course back to sustainable growth. A number of initiatives including fiscal reform, monetary tightening and structural change are in progress. The short-term pains of these actions have been ameliorated partially through loans from international institutions and financial assistance from donor agencies. This paper documents this dynamic policy period in Papua New Guinea and anticipates the future rewards for the economy.