Australian Aid to PNG - AusAID

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ACKNOWLEDGEMENTSThis report was prepared by Economic Insights Pty Ltd and written by JohnFallon, Craig Sugden and Lynn Pieper.The following people made substantial contributions to the review: Peter Ellis(Director EVAL), Graham Rady (Task Manager), Amber Davidson, Philip Fradd,Alexander Mcarthur, Anton Vikstrom, PNG Branch staff members, AusAID PeerReview Group members, and the independent (external) anonymous peerreviewers.vi The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000
FOREWORDAs part of a broader focus on improved learning and accountability, AusAIDis taking steps to improve our ability to measure the effectiveness of the aidprogram to PNG. This report was commissioned from Economic Insights, anindependent consultancy firm, as a background document to inform thatexercise. The final report represents the views of the consultants, notnecessarily of AusAID or the Australian Government. The consultants alsopoint out that the interpretations presented should be seen as tentative andrequiring further assessment.In looking at the report, the key findings appear to be that:• PNG faces serious development challenges, most notably a weakinstitutional environment with poor control of government spending and aserious law and order problem• However, when an appropriate historical perspective is taken, Papua NewGuinea has made some development progress since independence. Theseachievements were reflected in improving social indicators, even in the faceof stagnant per capita incomes• Considering the evidence at the macro level and from an examination ofindividual aid activities, there is evidence that the aid program hascontributed materially to development. For example, aid has been central toeducation reform (contributing to big gains in literacy and 50% to 90%increases in primary and secondary enrolments); prevented health systemcollapse; and maintained some essential road and air infrastructure• Many questions remain to be answered, and our capacity to complete arigorous assessment of the program needs to be improvedIn 2003-04, we will undertake a significant evaluation of Australian aid in thegovernance and civil society sector, and will continue work to improve thequality of the data.The report underwent extensive peer review, both internal and external toAusAID. Economic Insights studied the comments and made changes to theirreport as they saw fit. The report represents the authors’ views, not a consensus.The report does not aim to be a comprehensive evaluation of the effectiveness orefficiency of the aid program. Rather, it is a step forward in our understandingof the program’s impact – its contribution to the development of PNG.The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000 vii
Page 5: BOXESBox 3.1 The Dutch Disease in P
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 and 28: y the successful mobilisation of cu
Page 29 and 30: 3 INTERPRETING THE DEVELOPMENT ANDG
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
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BOX 5.5 HEALTH IMPACTS OF AUSTRALIA
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also improved 24 , and there is evi
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5.5 Renewable ResourcesIn total, Au
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Land Use Management• Established
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New Guinea needs donor financing fo
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only assist within the context of t
Page 69 and 70:
Both within sectors and more broadl
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However, it seems reasonable to arg
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useful to document the findings of
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ANNEX A EVOLUTION OF AUSTRALIAN AID
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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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Australian Aid to PNG - AusAID

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