Foreign aid and the financing of service delivery in Papua New Guinea
Date
2009
Authors
Batten, Aaron
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Volume Title
Publisher
Crawford School of Economics and Government, The Australian National University
Abstract
How much foreign aid given to PNG has stayed within the sectors to which it has
been allocated and how much has it allowed the PNG Government to free up its own
resources for other spending priorities? This paper measures the extent to which donor
finance has contributed to higher rates of spending in three key development sectors
of the PNG economy—health, education and infrastructure between 1974 and 2008.
Results show that high rates of fungibility have occurred within PNG during this time.
The PNG Government has placed the least priority on additional rates of health
spending and most priority on additional infrastructure spending, although all sectors
have increased by only a fraction of the amount of aid given. The results also compare
the impact of budget support vis-à-vis project and program aid to induce higher rates
of spending in each of these sectors. A number of policy implications follow.
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Citation
Batten, A. (2009). Foreign aid and the financing of service delivery in Papua New Guinea. International and Development Economics Working Paper 09-05. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.
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Working/Technical Paper
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Open Access
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Open Access
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Restricted until
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