Australian Aid to PNG - AusAID

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significantly in all provinces except Bougainville, East New Britain and theNational Capital district between 1980 and 1996. Reflecting the urban-regionaldisparity the National Capital generally records a much better result on mostsocial indicators (the notable exception being in relation to school enrolment)and a much higher average real income.Implementation capacity has been a longstanding general weakness at theprovincial and local government level. The 1995 provincial reforms sought toimprove public service delivery with a restructuring of national and provincialgovernment and transfer of additional functions to local governments. Thereare now four levels of government: national, provincial, district and local,however the national government now has more influence as directly electedprovinces were abolished. The reform has been hampered by inadequatefunding, legislative difficulties, and capacity and infrastructure at lower levelsof government.14 The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000
3 INTERPRETING THE DEVELOPMENT ANDGROWTH OUTCOMES3.1 IntroductionThe conventional perception of development in Papua New Guinea since 1975has at its core a sense of lost opportunity. Papua New Guinea is widely seen asa resource rich country that has made poor use of its opportunities. Thiscriticism is generally most severe for the 1990s, a period in which the qualityof government is seen to have declined markedly.But the conventional view suffers from an important weakness. Although thereare concerns about the accuracy and comparability over time in the availabledata on the main development indicators, they point to substantialimprovements in living standards since 1975.Based on the estimates of life expectancy, infant and child mortality rates,illiteracy, school enrolment rates and immunisation rates contained in theWorld Development Indicators, it appears reasonable to conclude that –• Although the level of development is low, Papua New Guinea has developedat a pace that is broadly similar to other low-income developing countries.• There appears to have been continued improvement over the 1990s in keysocial indicators. 1These observations in turn suggest it is reasonable to reconsider theconventional negative view of Papua New Guinea’s performance sinceindependence. The remainder of this section explores the determinants ofgrowth and development with a view to reassessing this negative view of PapuaNew Guinea’s achievements since independence.3.2 Identifying the Sources of Economic GrowthReal GDP is estimated to have grown at an average annual rate ofapproximately 2.5% since independence. A substantial share of GDP is earnedby the mining and oil projects and consequently flows to overseas investors. Soin a development context it is normally more meaningful to speak of growth inthe non-mining sector. The non-mining sector did not match the growth intotal GDP, with real non-mining GDP increasing on average by approximately2% per annum. For both measures the expansion was strongest over the early1990s and there has been a contraction in recent years (see Figure 3.1(a)).1 The main differences in data sources relate to estimates of infant and maternal mortality rates. As noted inSection 2, the 1998 Human Development Report points to a deterioration in these indicators over the 1990s,whereas the WDI shows continuing improvement (see GoPNG and UNDP (1998)).The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000 15
Page 5 and 6: BOXESBox 3.1 The Dutch Disease in P
Page 7 and 8: FOREWORDAs part of a broader focus
Page 11 and 12: programs to improve living standard
Page 13 and 14: sector since independence, 65% has
Page 15 and 16: 1 INTRODUCTIONThis report provides
Page 17 and 18: Figure 2.1 Real GDP per capita in P
Page 19 and 20: 1985 1990 1995 2000PNG HPC LIC LMC
Page 21 and 22: significant strain on the budget an
Page 23 and 24: • Improved central coordination a
Page 25 and 26: Connell (1998, pp. 311-2) highlight
Page 27: y the successful mobilisation of cu
Page 31 and 32: The estimated increase in private c
Page 33 and 34: 3.4 Reconciling the Growth and Deve
Page 35 and 36: 3.5 Implications for AidTo summaris
Page 37 and 38: Although the precise extent of the
Page 39 and 40: program saw a decline in the overal
Page 41 and 42: criticism that the withdrawal of Au
Page 43 and 44: Ministerial Forum found that real p
Page 45 and 46: management for Papua New Guinea, ov
Page 47 and 48: 5 THE IMPACT OF AUSTRALIAN AID INPA
Page 49 and 50: • Improved retention rates at sch
Page 51 and 52: • Achieved operational efficienci
Page 53 and 54: policing are being introduced, alon
Page 55 and 56: deliver community and public servic
Page 57 and 58: BOX 5.5 HEALTH IMPACTS OF AUSTRALIA
Page 59 and 60: also improved 24 , and there is evi
Page 61 and 62: 5.5 Renewable ResourcesIn total, Au
Page 63 and 64: Land Use Management• Established
Page 65 and 66: New Guinea needs donor financing fo
Page 67 and 68: only assist within the context of t
Page 69 and 70: Both within sectors and more broadl
Page 71 and 72: However, it seems reasonable to arg
Page 73 and 74: useful to document the findings of
Page 75 and 76: ANNEX A EVOLUTION OF AUSTRALIAN AID
Page 77 and 78: ANNEX B SECTOR BREAKDOWN OF AUSTRAL
Page 79 and 80:
8 REFERENCESAhai, N., 1988, The Dev
Page 81 and 82:
Garnaut, R., and Baxter, P., 1984,
Page 83 and 84:
Growth Strategy, Final Report, prep
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