A new dawn for Papua New Guinea's economy?

Abstract

The Morauta government that took office in July 1999 has succeeded not only in stabilising the economy, with its return to sound fiscal and monetary policies and resumption of dialogue with the international donor community, but also in carrying through some major reforms, including granting full control over monetary policy to the central bank, and making preparations for privatisation of the state-owned commercial bank. However this paper shows that much remains to be done to complete the process of structural adjustment, and that aid donors? conditions, notably those of the IMF and World Bank, have not addressed such issues as land reform, tax effort, and giving the public service the same protection from political interference as now enjoyed by the central bank. Show more