Papua New Guinea and the Pacific
Papua New Guinea continues to experience economic growth and improved fiscal stability. Yet significant development challenges still remain that need to be addressed to translate growth into improved living standards for Papua New Guineans. PNG was ranked 139 (of 177 countries assessed) in a 2006 UN report on social indicators (including life expectancy, infant mortality and adult literacy). HIV/AIDS is now a generalised epidemic in PNG, having reached an estimated two per cent prevalence. PNG has the highest level of HIV infection in the Pacific. Without an effective response, it has been estimated that HIV/AIDS will affect approximately 10 per cent of the general population by 2025. Corruption is also a significant governance issue: PNG is ranked 130 (of 163 countries assessed) in a 2006 global corruption index.
There has been some improvement in social indicators among Pacific island countries, but only a few countries have generated economic growth significantly in excess of population growth. Security and stability have emerged as significant concerns in some countries, especially but not only in Melanesia. Australia recognises that targeted, long-term approaches are needed to strengthen states affected by conflict or poor governance and that flexible approaches are required to respond to emerging needs and issues in Papua New Guinea and the Pacific.
Key development indicators for Papua New Guinea and the Pacific
| Country | GNI per capita† ($US) | Access to water (% of population) | Life expectancy (years) | Adult literacy rate (% of population) |
|---|---|---|---|---|
| Papua New Guinea | 660 | 39 | 56 | 57 |
| Solomon Islands | 590 | 70 | 63 | 77 |
| Vanuatu | 1,600 | 60 | 69 | 74 |
| Fiji | 3,280 | 47 | 68 | na |
| Tonga | 2,190 | 100 | 72 | 99 |
| Samoa | 2,090 | 88 | 71 | na |
| Kiribati | 1,390 | 65 | na | na |
Sources: Human Development Report 2006, UNDP, and for † World Development Indicators Online, World Bank, 2007.
Estimated ODA to Papua New Guinea and the Pacific in 2007-08 $872.5 million5
Table 4: Aid to Papua New Guinea and the Pacific in 2007-08
| Country/Program Estimate 2007-08 ($m) |
Focus |
Papua New Guinea |
Implementing the PNG-Australia Development Cooperation Strategy 2006-2010 through programs supporting its four pillars: Improved governance and nation building will be supported through the Enhanced Cooperation Program (ECP) and other programs covering economic and public sector reform, improved law and justice, and border security. Opportunities will be taken to expand the ECP from the current 43 placements of Australian public servants in positions in the PNG bureaucracy. The new Performance Incentives initiative (Box 5) will provide a performance grant towards jointly agreed PNG development priorities if PNG achieves annually agreed performance benchmarks. A new democratic governance program, augmented by the Better Governance and Leadership initiative (Box 4), will support better governance and leadership in PNG Sustainable broad-based economic growth and increased productivity will be facilitated through the maintenance and rehabilitation of roads and other economic infrastructure under the PNG-Australia Transport Sector Support Program, supported by increased PNG Government budget contributions, and augmented by the new Infrastructure for Growth initiative (Box 1). Support will also be provided to PNG's national agricultural research institutes to improve agricultural productivity and development in rural areas Improved service delivery and stability will be supported through PNG's Provincial Performance Improvement Initiative (PPII). The PPII will be rolled out to a further six provinces in 2007-08, bringing to nine those eligible for assistance to improve health, education and delivery of other services to communities. Assistance to PNG's law and justice sector will continue to strengthen the ability of PNG agencies to improve application of the rule of law, and help improve the environment for effective service delivery and economic growth. Ongoing support for education and health will assist with system reform by supporting government strategic plans, as well as improving the management and delivery of basic health and education services A strengthened, coordinated, and effective response to the HIV/AIDS crisis, fully mobilising in 2007-08, in partnership with the PNG Government, community and international organisations, a $100 million 5 year multi-sector program to prevent the spread of HIV and provide treatment and care for those most affected. This program is complemented by up to $50 million over seven years to strengthen PNG's health sector response to HIV/AIDS. |
Solomon Islands |
Through the bilateral aid program and the Regional Assistance Mission to Solomon Islands (RAMSI), Australia will pursue the following linked objectives: Contributing to a safer and more secure Solomon Islands by strengthening the law and justice system, including through upgrading court and prison infrastructure and supplying High Court judges, magistrates, prosecution and defence lawyers and prison personnel Repairing and reforming the machinery of government to improve accountability. In 2007-08, new programs will support improved electoral processes and a new 5 year $13 million Public Sector Improvement Program will commence Encouraging sustainable broad-based growth and contributing to a more prosperous Solomon Islands, with new investments to rehabilitate and upgrade rural road networks through the new Infrastructure for Growth initiative (Box 1). Australia will also contribute up to $10 million over five years to a new Rural Development Program commencing in 2007-08. Through a partnership of the Solomon Islands Government, the World Bank, the European Union, and RAMSI, the program will increase access by rural communities to priority infrastructure and services, improving the level and security of rural livelihoods Helping the Solomon Islands Government to better serve the Solomon Islands people through effective, equitable delivery of basic services, such as through continuing implementation of a $12 million annual program to improve health service delivery throughout the country Building strong and peaceful communities through continuing the 10 year $32 million Community Sector Program, which helps improve community self-reliance through livelihood activities and small-scale activities to address the particular needs of youth. |
Vanuatu |
Assistance to Vanuatu in 2007-08 will support the Government of Vanuatu's efforts to translate recent economic growth into new jobs and better health and education service delivery through: Addressing governance constraints to growth through the Governance for Growth program, in the first instance through improving the provision of reliable utilities to rural areas Strengthening the delivery of primary health care in remote and rural areas, and with new additional support through the Delivering Better Health initiative (Box 6) to combat malaria Supporting education in partnership with the Ministry of Education to achieve better quality education outcomes through improved governance and improved teacher training. |
Fiji |
While Australia has suspended support where the actions of the Interim Government render Australian programs ineffective or inappropriate, in 2007-08 assistance will continue to be provided to ordinary Fijians including through support for basic health and education. Australia will continue to provide training support to Fiji's textiles, clothing and footwear industry to improve productivity and market reach. Support to the justice sector will continue, with an emphasis on community justice initiatives. |
Tonga |
Support to Tonga in 2007-08 will focus on: Good governance and public sector reform, including through a $10 million program addressing economic and public sector reforms over 5 – 8 years with expenditure of up to $2 million in 2007-08 Income generation, continuing co-funding with New Zealand a $2.6 million package of assistance over 2 years for business recovery following the 2006 riots Rural and outer island development, continuing a program aimed at the provision of community-based infrastructure, water supply, and income generation in small-scale agriculture, tourism and fisheries. |
Samoa |
In line with a Joint Samoa Program Strategy developed in partnership with New Zealand, support to Samoa in 2007-08 will focus on: Improving opportunities for employment and investment, aiming to develop and implement in 2007-08 a new farm forestry program to support income generation opportunities for rural families Improving service delivery, including continuing support for education in partnership with NZAID and the ADB, helping to strengthen the capacity of the Samoa Police service, and developing a new program of support for health with partners including NZAID. |
Kiribati |
Improving education, technical and vocational training, including a nurses skills upgrading program Public sector management and performance. |
Tuvalu |
Improved budget management Scholarships to strengthen capacity for management and policy development Continued support to the Tuvalu Trust Fund to underpin social and economic development. |
Nauru |
Economic reform and management, improving service delivery, and supporting alternative livelihoods. A new Memorandum of Understanding will be negotiated in 2007-08 Reform of Nauru's power sector. |
Micronesia |
Enhanced maritime security Scholarships to strengthen capacity for management and policy development. |
Cook Islands |
A delegated cooperation program with New Zealand focused on improving education and health services, sustainable economic growth, and improved governance Scholarships to strengthen capacity for management and policy development. |
Niue and Tokelau |
Targeted scholarships and technical assistance to strengthen capacity for management and policy development Further support to Niue and Tokelau Trust Funds in 2007-08 to sustain social and economic development. |
Pacific regional program |
Implementing the Pacific Regional Aid Strategy 2004-2009 which focuses on four key regional themes: stronger broad-based growth, more effective, accountable and democratic government, improved law and justice and security, and enhanced service delivery Support for the Pacific Plan: Australian support for key Pacific Plan programs will include strengthening regional audit and ombudsman's arrangements, and building country and regional statistical systems Support for Pacific Regional Organisations to strengthen regional responses to key governance and technical challenges Establishing the new Australia-Pacific Technical College to support economic growth by training larger and better skilled workforces Strengthening policing services through the $17 million 2004-2008 joint AusAID/NZAID Pacific Regional Policing Initiative, contributing to a safer, more secure and stable environment in Pacific Island Forum countries. |
5 Includes $355.9 million in total ODA to PNG. Estimated ODA to the Pacific in 2007-08 excluding ODA to PNG is $516.6 million.
6 See note (d) to Table 2 on page 63 for further details.