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Papua New GuineaPapua New Guinea (PNG) faces significant development challenges. Australia remains deeply committed to working with PNG to achieve sustained economic growth and alleviate poverty. Development challengesAround 40 per cent of PNG's population lives in poverty, that is, on less than US$1 a day. Papuan New Guineans have low life expectancy and high infant and maternal mortality. PNG's population is geographically and culturally diverse with over with over 700 disparate cultural groups, many in remote areas. Service delivery is expensive and logistically challenging and most communities have difficulty accessing quality health care, education and adequate transport. Most Papua New Guineans live in rural areas but poor rural conditions mean more people are moving to urban centres, where poverty, unemployment and civil unrest is growing. The female literacy rate of 51 per cent is well below the male rate of 63 per cent. Violence against women is common and access to education and employment opportunities is much less for females than males. PNG is experiencing rapid, sustained population growth of about 2.7 per cent a year and has the highest rate of reported HIV cases in the region. In 2005, 64,000 people or two per cent of the adult population were living with HIV/AIDS. EconomicIn recent years the economic climate in PNG has improved and real economic growth in 2006 was 2.6%. This growth was driven by the mineral resource sector and accompanied by improved economic management, improved budgetary performance, and lower interest rates. Positive growth is projected to continue over the next five years. PNG now faces challenges in maintaining these improvements, including:
To reduce poverty PNG needs to sustain recent economic gains while moving the economy to a higher growth path. Achieving this challenge is largely dependent on good governance. Effective and sustainable government institutions and responsible and accountable leadership at all levels of government is essential for sustainable economic growth and improving the quality of service delivery to the people. Australia's aid policy frameworkEstimated ODA 2007-2008: $355.9 million The objective of Australia's aid program is to assist developing countries reduce poverty and achieve sustainable development, in line with Australia's national interest. Australian and international experience confirms that poverty alleviation and regional stability is dependent on good governance, effective service delivery and sustainable economic growth. Australia has developed the PNG-Australia Development Cooperation to help PNG reduce poverty, promote sustainable development and improve the quality of life for all Papua New Guineans. Country strategyAustralia's aid program aims to help the PNG Government implement its own medium term development goals. The program focuses on four areas:
The program draws on the findings of the 2004 Joint Aid Review and reflects Australia's whole of government engagement in development issues in PNG. Australia recognises that effectiveness of aid depends on how the PNG Government uses its own resources to support its own development goals. Because of this, the Australian Government has put in place arrangements for basing any increase in aid to PNG on performance against jointly agreed development goals. Through the aid program, Australia is also helping to build the PNG Government's long-term capacity to run free and fair elections. See Papua New Guinea - Australia Development Cooperation Strategy 2006-2010 Aid stories and peopleExamples of Australia's aid program in PNG:
Further informationFor further information see:
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