Recent economic events in Papua New Guinea: a continuing drought in development

Abstract

Papua New Guinea continues to fall short of its potential in terms of economic and social development. It has extraordinary wealth in mineral, forestry and fishing resources and an enormous comparative advantage in tourism, yet social indicators place it amongst the poorest nations in the world and economic growth since independence has barely kept pace with population growth. The devastating drought was a major setback for the economy. While a full recovery from the drought is expected from the second half of 1998, the enormous frustration of the people will continue as there appears little prospect of a change in policy direction to secure Papua New Guinea?s great potential for prosperity. Show more