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Rural Development in Papua New Guinea

PNG's natural resources hold the key to future broad-based growth in employment and incomes for PNG.

Australia is working with the PNG Government to encourage sustainable development of these resources through activities in agriculture, forestry, fisheries, quarantine and conservation.

Australia's approach to rural development in PNG recognises the main causes of constrained growth in rural incomes are roads, crime, human capital, governance and agricultural information.

The aid program's activities in PNG include agricultural research and planning, and agricultural rehabilitation in Bougainville.

Australia is supporting the sustainable management of PNG's natural resources and improving governance structures in the forestry sector.

PNG also participates in several regional initiatives funded by Australia, including the Pacific Pest Management project to control pests like taro beetle and fruit fly.

Other initiatives include the Sea Level and Climate Monitoring Project which increases PNG's knowledge of sea level change and impact to coastal regions.

Major aid activities

The following are some of the major activities in the rural development sector currently supported by Australia's aid program in PNG.

Agricultural Research Development Support Facility

• Contribution: $35 million
• Duration: 2006-2011

Australia is providing support to improve the research capacity of five commodity organisations for the coffee, cocoa, coconut, oil palm and fresh produce industries. The activity also supports the dissemination of innovative agricultural technologies to rural smallholders.

Australian Centre for International Agricultural Research (ACIAR) Research and Development Trust Fund

• Contribution: $18 million
• Duration: 1998-2008

ACIAR supports project activities that focus on food security in PNG. This fund aims to build the PNG Government's proficiency in the sustainable management of natural resources as well as support small-scale, innovative agricultural production projects that have the potential to generate income and new possibilities for PNG agribusiness.

Support to the PNG Forestry Authority under the Advisory Support Facility (ASF)

• Duration: 2004- 2008
• Contribution (from ASF)

Australia is funding a small team of advisers to work with the PNG Forestry Authority to implement reforms in corporate management, financial and information management, human resources, asset management and management information system development.

July 2007

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