Papua New Guinea: Benefiting or losing out in commodity booms?
PAUL BARKER INA Papua New Guinea is experiencing a boom associated with LNG development and record prices for most of its mineral and agricultural products. One might expect the country’s population to be thriving from this, with the benefits extending right out to rural communities. However, whilst some individuals and businesses are certainly doing nicely from prevailing conditions, including owners of urban real estate, most of the population (and many businesses) are either left out, or unable to take advantage of current or forthcoming opportunities, or in some cases worse off (by growing costs, shortages and bottlenecks). The benefits are therefore localised in a few main centres, businesses and households, whilst even the formal sector employment growth (e.g. construction) has dropped away since its peak in 2008. The weak link is a failing State with its severely underperforming institutions, which struggle from poor leadership, poor coordination, low morale, corruption and in m