Friday, July 01, 2005
Papua New Guinea. A Private Sector Assessment. The Realities of Crisis
By: The Enterprise Research Institute
For: The Asian Development Bank Under: RETA 6037: Private Sector Development Strategy For The Pacific, 2003
Social and economic transformation in Papua New Guinea is a long-term endeavor that seeks to develop the interface between the traditional and modern sectors, and proceeds at a pace that local communities can control and absorb. Papua New Guinea has tremendous potential to harness the benefits of a resilient civil society with strong social capital based on enduring cultural and social traditions, and drawing on bountiful natural resources. Yet, the country remains significantly underdeveloped and faces considerable challenges in achieving these ends. It is largely a rural society and many of the country’s residents do not enjoy access to basic services. Rather, they face great economic and social hardship and are offered few opportunities to improve their own situation. The approach for private sector development outlined in this report identifies areas where the government and donor community could take steps toward addressing private sector development priorities including: strengthening economic policies, lowering business costs, integrating local markets, developing skills and technology, prioritizing rural development, and coordinating Donor support. For ADB we suggest a strategy that focuses on rural development (to lift the subsistence sector) and improving infrastructure and regulation for commercial business development. But it is also important to note that Papua New Guinea exhibits characteristics of a failing state as well as donor fatigue and frustration. Governments are unstable and short-lived, they fail to deliver any meaningful services to constituents, official corruption is a significant problem, and serious and violent crime is endemic. Donors advise and cajole, evaluate, and redesign failed interventions, but have been unable to find a workable and durable formula for success in Papua New Guinea. Yet, donor funds continue to flow and projects and programs continue to fail - Papua New Guinea represents an extreme challenge for all donors.
For: The Asian Development Bank Under: RETA 6037: Private Sector Development Strategy For The Pacific, 2003
Social and economic transformation in Papua New Guinea is a long-term endeavor that seeks to develop the interface between the traditional and modern sectors, and proceeds at a pace that local communities can control and absorb. Papua New Guinea has tremendous potential to harness the benefits of a resilient civil society with strong social capital based on enduring cultural and social traditions, and drawing on bountiful natural resources. Yet, the country remains significantly underdeveloped and faces considerable challenges in achieving these ends. It is largely a rural society and many of the country’s residents do not enjoy access to basic services. Rather, they face great economic and social hardship and are offered few opportunities to improve their own situation. The approach for private sector development outlined in this report identifies areas where the government and donor community could take steps toward addressing private sector development priorities including: strengthening economic policies, lowering business costs, integrating local markets, developing skills and technology, prioritizing rural development, and coordinating Donor support. For ADB we suggest a strategy that focuses on rural development (to lift the subsistence sector) and improving infrastructure and regulation for commercial business development. But it is also important to note that Papua New Guinea exhibits characteristics of a failing state as well as donor fatigue and frustration. Governments are unstable and short-lived, they fail to deliver any meaningful services to constituents, official corruption is a significant problem, and serious and violent crime is endemic. Donors advise and cajole, evaluate, and redesign failed interventions, but have been unable to find a workable and durable formula for success in Papua New Guinea. Yet, donor funds continue to flow and projects and programs continue to fail - Papua New Guinea represents an extreme challenge for all donors.