Papua New Guinea flag Papua New Guinea
Papua New Guinea -- the eastern part of the world's second largest island –- is one of the most diverse countries on Earth, with over 850 indigenous languages and at least as many traditional societies, out of a population of just under 6 million. It is also one of the most rural, with only 18 per cent of its people living in urban cities. Many tribes in the isolated mountainous interior have little contact with each other, let alone with the outside world, and live within a non-monetarized economy, dependent on subsistence agriculture. Only about 1% of the land is suitable for growing cash crops, including coffee and cocoa. A logging industry is taking a toll on the diminishing rainforests. Mineral deposits - including gold and copper - are extensive, and there are reserves of oil and natural gas, but the difficult terrain and inadequate infrastructure make exploitation slow. The sector is an important source of revenue. The head of state is Queen Elizabeth II, represented by a Governor-General. The Prime Minister is Sir Michael Somare, known as "The Chief." Somare came to power in August 2002 after a violent and chaotic election. One of his first acts was to halt his predecessor's privatization program, saying the government needed more time to evaluate state assets. He led the country to independence from Australia in 1975 and had served as premier twice before these elections. He is widely regarded as being untainted by corruption. His challenges include tackling the sick economy, poor infrastructure, chronic unemployment and rampant crime, often committed by jobless youths, known as "raskols." Meanwhile, HIV/AIDS is growing towards southern African proportions, fuelled in part by extraordinary levels of sexual violence. The country’s law and order problems hinder inward investment. Education and health services remain weak and are still difficult for many to access due to poor road communications. Such access difficulties also hamper development of rural economies. National politics are characterized by a plethora of political parties, coalition governments, shifting party loyalties and motions of no-confidence in the leadership (many of which have succeeded). There is considerable instability to political proceedings in PNG. Under present conditions, elected governments are guaranteed a period of grace 18 months after election before they can be subject to confidence votes. This also applies to the last 12 months prior to a general election, which are held every five years. No government has yet survived for a full five-year term. The current government will be the first to run full term. Current economic strengths are rich natural resources and strong foreign donor support. High international prices for major export commodities drive a strong export performance. GDP growth is expected to rise to 3.7% in 2006 and to 4.0% in 2007, the fifth successive year of GDP growth equal to or above the population growth of 2.7%. Inflation remains low and under control at less than 2.5%. PNG enjoys a modest trade surplus and an estimated 2006 budget surplus of K682.5m was converted into a Supplementary Budget, in August 2006, most of which was allocated to priority areas of the Medium Term Development Strategy. PNG receives substantial aid from its southern neighbor, Australia, which administered the territory until independence in 1975. Canberra's aid program aims to relieve poverty and to boost development; Australia has also despatched police officers and civil servants to support their local counterparts. A 2004 Australian study warned that Papua New Guinea risked economic and social collapse and said the country was a target for international crime. It suggested that Canberra should consider running PNG’s customs and border controls. Australia is PNG's most important partner. Along with considerable economic aid and technical assistance, including in areas of good governance, Australia provides assistance to the PNG Defence Forces. The separatist struggle in the neighboring Indonesian province of Papua, formerly known as Irian Jaya, prompted the flight of thousands of Papuans into PNG from the mid-1980s onwards. Many of them remain in border-area jungle camps. While the Port Moresby government has said it will not tolerate the use of PNG territory for Papuan separatist attacks on the Indonesian army, its authority on this issue is questionable. PNG had to deal with separatist forces of its own on the island of Bougainville in the 1990s. Up to 20,000 people were killed in the nine-year conflict which ended in 1997. A peace deal signed in 2001 provided the framework for the election in 2005 of an autonomous government for Bougainville.
On August 1, 2006, the PNG government declared a state of emergency in the Southern Highlands Province. Outbreaks of tribal fighting may occur without warning in the Highland Provinces in particular in the Southern and Western Highlands and Enga Provinces. Public order support in the Southern Highlands is being provided by 700 police reinforcements, as well as soldiers from the PNG Defence Force. Sporadic outbreaks of tribal fighting are considered a normal occurrence. Tribal fighters and criminals are becoming increasingly well armed through the trade in drugs for guns. Outsiders passing through are not normally targeted, but opportunistic crime during violent periods is a serious concern, and emergency aid is limited to non-existent, due to rugged terrain and poor infrastructure. Law and order remains poor or very poor in many parts of the country. In the cities of Port Moresby, Lae and Mt Hagen armed carjackings, assaults, robbery, shootings and serious sexual offences, including gang rape, are common. Armed attacks are on the increase. Since September 2006 there has been an increase in serious crime in the Lae area, especially after dark. (See “Crime” below.) Road conditions are generally hazardous throughout PNG. Drivers who are involved in, or are witnesses to road accidents may find themselves at personal risk and should seek police assistance as soon as possible. Papua New Guinea is prone to seismic and volcanic activity, especially near Rabaul in East New Britain Province, Kimbe in West New Britain Province, and on Manam Island in Madang Province. Tavurvur Volcano in East New Britain erupted in October 2006. The eruption affected travel in the area around Kokopo and Rabaul. During October 2004, the Manam volcano started a major eruption. This resulted in complete evacuation of the island, which is presently uninhabitable. Bougainville Island has recently emerged from a period of separatist conflict. You must provide notice of your intention to visit the island to the Bougainville Provincial Administration, and contact the Administration again upon arrival. The mountainous area in central Bougainville around the old Panguna mine is a “no-go zone.” Foreigners who have entered the Zone without government authorization have been questioned, some for many days, and had their passports withheld on departure from the zone. National elections will be held in PNG in June 2007. The months leading up to the elections are likely to be politically volatile; avoid all political rallies and demonstrations.