23 Oct 2014
Papua New Guinea stands at one of the most decisive junctures in its development. With predicted record levels of economic growth of 20% for 2015, the country has a unique opportunity to leverage significant sustainable and equitable improvements of Human Development of the more than 7 million Papua New Guineans. However, if poor choices are made, the impact of the high growth rates will be limited, even detrimental to the development prospects of the nation. This ‘paradox of plenty’ occurred when a 20% growth rate in the early 1990s was followed by a ‘lost decade’ for the majority of the population. Despite the Government of PNG’s increased budget allocations to provincial, district and local level governments by 87% over the last two years, low implementation capacity at sub-national level has prevented the high volume of resources to translate effectively into improvements in the lives of the population. One reason for this inefficiency is corruption.
In 2013, government task force estimated that almost 40% of PNG’s annual budget (approx. USD 6.5 billion) was lost to corruption and mismanagement, a worrying number that seems to be confirmed by Transparency International’s 2013 Corruption Perception Index, and the World Bank’s Global Governance Corruption Index.