Public investment policy in Papua New Guinea

Abstract

While a sectoral approach to education, health, communications, and law and order is now being followed, the implementation of public investment policy, two-thirds funded by donors, is well below par. This article reviews policy, its focus, and the structures in place to implement it and highlights some failures. A back-to-basics strategy, in terms of macroeconomic management, should be the basis for more effective public investment, but this needs to be accompanied by improved processes. Moreover, the donors need to examine whether there is sufficient absorptive capacity to accommodate their large aid agendas.