Development Profile
Forms
of Assistance
Papua New Guinea receives international
assistance in various forms and from numerous
sources. Australia, the only donor which
provides direct budget support, is the biggest
contributor to Papua New Guinea's development
assistance program. Other major sources
of assistance are Japan, the European Union
(EU), the Asian Development Bank (ADB) and
The World Bank. These countries and agencies
provide technical and financial assistance.
Technical assistance, mainly in skills,
knowledge and institution building, is normally
provided through the following methods:
Short and long-term consultants, advisers
or volunteers;
Training measures in-country or overseas;
Training of a practical nature or long-term
academic training; or,
Provision of related equipment.
The importance of technical assistance has
been increasingly recognized for its success
in the transfer of skills to Papua New Guineans
and for institutional building.
Financial assistance which addresses investment
in capital works, for example, may also
be provided as part of a technical assistance
program.
Bilateral and multilateral agencies, including
the Australian Agency for International
Development (AusAID), the EU, the United
Nations Development Programme (UNDP), the
ADB and the Commonwealth Fund for Technical
Co-operation (CFTC), provide financial assistance
through grants. Procurement of goods and
services involves internationally competitive
bidding covering at least the member countries
of the agency concerned.
Papua New Guinea also receives concessional
loans because of its status as a middle
class income country. The lenders generally
meet all foreign exchange costs and some
of the local costs. Papua New Guinea is
expected to meet the balance of local costs.
The concessions received vary, but generally
involve low interest rates and long pay
back periods. The World Bank, the ADB and
the EU are the most important financiers.
Bilateral
Development Programmes
Australia
The objective of Australia's development
co operation is to promote the sustainable
economic and social advancement of the people
of developing countries, as well as to pursue
its own foreign policy and commercial interests.
The country's development co-operation
programme is managed by an autonomous body
within the Australian Department of Foreign
Affairs and Trade, AusAID. It was formerly
known as the Australian International Development
Assistance Bureau (AIDAB).
Japan
The objective of Japan's Overseas Development
Assistance (ODA) is to support self-help
efforts of developing countries, based on
environmental conservation, humanitarian
considerations and recognition of interdependence
in the international community, as stipulated
in the ODA charter adopted in 1992.
The People's Republic of China
The overall objective of China's aid policy
is based on an ideology to foster equality
and mutually-beneficial development through
an open door foreign policy, enhancement
of self reliance and economic development
and complementary development cooperation
programmes with partner developing countries.
China is an aid recipient as well as a
donor. Its expertise is mainly in the agro-based
industries such as agriculture, forestry,
manufacturing and medicine. It provides
opportunities for human resource development
in the fields of food production and processing,
fisheries, agricultural mechanization and
small hydro power plants.
Federal Republic of Germany
Germany's development co-operation focuses
on areas such as food security, rural development,
environmental protection, improved energy
supply and population policy. Special emphasis
is placed on women and other disadvantaged
sections of the population.
Republic of Korea
As a donor, Korea aims to foster international
co-operation and assist developing countries
to overcome difficulties caused by disease,
poverty, unemployment, population explosion,
environmental pollution and degradation.
This is addressed through technical co-operation,
human resources development and technology
transfer.
New Zealand
The objective of New Zealand's ODA is to
provide assistance to developing countries,
strengthen the links with its development
co-operation partners and contribute to
New Zealand's own external relations and
trade policies in terms of international
economic prosperity, maintenance of peace,
security, political stability and global
environmental protection.
Key areas of support are human resource
development, agriculture, forestry, environmental
management and technical assistance.
United States of America
The major objective and commitment of the
United States of America's assistance programme
is to promote and consolidate democracy
and governance, population and family planning,
market principles, conservation and environmental
considerations. It also promotes peace to
achieve the stability essential for economic
growth and political freedom, sustainable
development, protection against transitional
threats and meeting urgent human needs.
Other Bilateral
Donors
Israel
The Papua New Guinea and Israeli Governments
have a Memorandum of Understanding (MOU)
relating to agricultural cooperation. Projects
funded under the MOU include a citrus project
in the Central province.
France
Papua New Guinea has in place a technical
cooperation agreement with a consortium
of French banks known as the Caisse Francaise
de Development (CFD). The agreement allows
for the funding of projects in PNG which
have been approved by the national government.
Malaysia
Under the provisions of a memorandum of
understanding, the Malaysian Government
is providing assistance towards an institutional
housing project for the disciplinary forces
(defense and police).
Others
Canada and Spain have sought possibilities
for co-operation with the Papua New Guinea
Government. These are still in the negotiation
stages.
Multilateral
Development Programmes
Multilateral development assistance programmes
are funded by various agencies and institutions.
Asian Development Bank
The objective of the ADB's strategy in
Papua New Guinea is to assist the Government
in diversifying and expanding the non-mining
opportunities and to improve its absorptive
capacity by overcoming the shortage of skilled
personnel.
The bank's assistance to the agriculture
sector continues to contribute to improving
productivity, strengthening the export development
base, increasing employment opportunities
and raising the per capita income in the
rural sector.
European Union
Papua New Guinea is a signatory to the
EU's Lome II, III and IV Conventions. The
Government has consistently identified rural
and human resources development as principal
sectors for development assistance through
the Lome conventions.
World Bank
The Bank's relationship with Papua New
Guinea can be seen as adviser, co-ordinator
of donor assistance, facilitator of aid
mobilization and a source of programme financing.
United Nations Development Program
This programme assistance has been directed
towards agriculture, forestry and fisheries,
labour development and training, strengthening
of financial management and preparation
of pre-investment studies and industrial
development in Papua New Guinea.
International Fund for Agricultural Development
The International Fund for Agricultural
Development (IFAD) provides assistance towards
expanding and improving food production,
nutrition, combating rural poverty and supporting
landless people.
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