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Official Name - The Independent State of Papua New Guinea
Land Area - 452,860 sq km (cf NZ 268,000 sq km)
EEZ - 3.12 million sq km (cf NZ 2.2 million sq km)
Population - 5.7 million (estimated). Population growth 2.7% (estimated)
Capital City - Port Moresby
Official languages - Tok Pisin (Pidgin English), English and Hiri Moti (around Port Moresby) plus over 800 other distinct languages
Currency - PNG Kina (K)
Exchange rate - NZ$1 = K2.0 (K1 = NZ$0.49) April 2007
Political system - Pluralist democracy. Executive Power is exercised by the Head of State and the National Executive Council (NEC, Cabinet) chaired by the Prime Minister
National government -
Prime Minister Rt Hon Sir Michael Somare heads the Government and the National Alliance Party (NA)
National legislature - Unicameral Parliament, 109 elective seats (89 open constituencies and 20 provincial constituencies)
Last election -
July 2007
Next election due -
June/July 2012
Head of State -
Governor General representing Queen Elizabeth II. Sir Paulias Matane was elected and sworn in as Governor-General on 30 June 2004 for a term of five years
Head of Government -
Rt Hon Sir Michael Somare, Prime Minister
Leader of the Opposition -
Hon Mekere Morauta
Main political parties -
Peoples Action Party, People’s Democratic Movement, Pangu Pati, People’s Progress Party, United Party, People’s National Congress, Advance PNG Party, National Alliance Party, Melanesian Alliance, Pan Melanesian Congress
GDP - K3,675.9 (US$1,168.9 million)
GDP growth - 3.7% (2006)
GDP per capita - S$560 (2005)
Exports of Goods (FOB) - US44.1 billion (2006)
Principal Export Markets - Australia, Japan, Germany, Korea, China, The Philippines
Import of Goods (FOB) - US$2.0 billion (Dec 2006)
Principal import markets -
Australia, United States, Singapore, Japan, New Zealand, China
Current account balance -
7.9% of GDP (2007 projected)
Total Debt -
External Debt US$1.8 billion (end 2006); Foreign exchange reserves US$1.6 billion (2006)
Inflation - 2.9% (2006)
top of page Top 10 Exports - PNG Kina millions (2005)
Gold 2,834
Crude Oil 2,283
Copper 2,498
Palm Oil 391
Refined Petroleum Products 410
Timber/Logs 476
Coffee 471
Cocoa 199
Copra Oil 94
Marine Products 69
Top 10 Imports - PNG Kina millions (2005)
Diesel 447
Semi millled/wholly milled rice 164
Machinery parts 158
Broken rice 122
Motor and aviation spirits 88
Sulphides/polysulphides 82
Fuel Oils 79
Aircraft 69
Frozen sheep meat 66
Jet-A1 (avtur) 64
NZ Exports to PNG (FOB) - NZ$109.60 million year to June 2007 (FOB)
NZ Imports from PNG (CIF) - NZ$137.57 million year to June 2007 (CIF)
Main Exports to PNG to December 2006 (FOB NZ$ million)
Sheep meat 22.42
Iron or non-alloy steel 6.69
Quicklime/slaked lime 8.55
Textiles 5.47
Frozen Beef 2.65
Milk powder 2.52
Butter 2.98
Aircraft 1.91
Main Imports from PNG to June 2005 (CIF, NZ$ million, provisional)
Petroleum Oils 130.09
Coffee 3.26
Wood Products 2.02
Meat of fish meal 0.37
Flours and meals 0.37
(sources: EIU,CIA, BNZ, Statistics New Zealand and IPA PNG)
Earliest evidence of human occupation in PNG dates back 50,000 years. Early inhabitants were scattered hunter-gatherer societies who eventually developed extensive networks of trade and ceremonial contact. Europeans had known about New Guinea since first sightings by Portuguese and Spanish navigators in 1512. But it was only in 1828 that the Dutch claimed sovereignty over the western part of the island. In 1884, Germany annexed northeastern New Guinea and the Bismarck Archipelago as ‘Kaiser Wilhemsland’. Four years later, the remaining eastern areas became a British colony. In 1914, Australia occupied German New Guinea, and from 1921 administered what had been the British and German sectors under a League of Nations mandate. In 1941 Japan occupied the north. In 1945 Australia was again given responsibility for PNG’s administration under UN trusteeship arrangements. PNG achieved Independence in 1975.
Though parties and party allegiances within the PNG parliamentary system are fluid, PNG has had an unbroken record of democratic continuity since independence. The independent judiciary and bodies like the office of the ombudsman are respected, the media has a free voice, and civil society is active. But instability is a feature of the PNG political landscape. Women are chronically under-represented, with Dame Carol Kidu currently PNG’s only female MP.
Sir Michael Somare returned as Prime Minister following the general election in July 2007. the 2007 election was held under a new 'limited preferenctial' voting system, designed to ensure that succesful candidates enjoy more support within their electorates and to encourage more alliance building between parties. Despite some continuing procedural irregularities and an inaccurate common roll, there relatively low levels of election-related violence (a marked improvement from the previous election in 2002) and election results were generally accepted as valid. Sir Michael's National Alliance (NA) party won 27 seats out of 109, and formed an alliance with 13 other parties to ensure the support of 86 of 109 MPs. In mid-August, the new Parliament voted overwhelmingly to re-elect Sir Michael as Prime Minister for an unprecedented fourth turn since 1975.
The size and complexity of the coalition will be a risk to the cohesiveness of the government, but the initial 18-month period during which no-confidence motions are not allowed, will provide some political stability.
PNG’s extensive mineral deposits (gas, oil, gold, copper) and other natural resources (forests, fisheries) provide a firm foundation for potential prosperity. But about 85% of PNG people rely on subsistence agriculture and fishing for survival, sometimes in some of the most isolated spots on the planet. These communities receive little trickle down benefits from commodity exports. PNG remains one of the least developed nations on earth. The UNDP’s 2006 Human Development Index ranked it 139th of 177 countries surveyed, lower than any other country in the Pacific. Life expectancy at birth in PNG is only 55.3 years, the infant mortality rate is 69 per 1,000 live births, and maternal mortality 300 per 100,000 live births. Only 57.3% of adults are literate, and only half of all children have access to primary school education. Annual GDP per capita is US$578, but 20 years ago it was over US$1000.
The previous government has put in place a “Medium Term Development Strategy” (MTDS) that pursued “export-driven growth, rural development and poverty reduction, including through good governance and the promotion of agriculture, forestry and fisheries on an ecologically sustainable basis”. Boosted by resurgent commodity prices, PNG has now achieved real GDP growth of 2-3% for three years in a row. Responsible fiscal management resulted in stable macroeconomic conditions including low inflation and interest rates, a stable kina, a budget surplus and a reduction in the still very high level of public debt. In September 2007, global ratings agency Standard and Poors, raised PNG's long-term currency rating to "B+" due to improvements in macroeconomic and political stability.
Despite this, PNG continues to face huge development challenges. Current GDP growth is not considered sufficient to keep pace with population growth. The economy remains vulnerable to external shocks, particularly from sharp declines in world export commodity prices. Priority issues facing PNG include insufficient health, education, transport and public utilities infrastructures, major law and order problems, difficult land ownership and access issues, corruption and inefficient government, and the threat of environmental degradation and unsustainable resource management by both domestic and foreign operators.
Another issue with potential serious consequences for PNG (and the region) is the rapid spread of HIV/AIDS. The World Health Organisation estimates that 2% (over 100,000) of PNG’s population is HIV positive, with another 150 people infected each month. The government, together with a number of international donors and organisations, are working together on the issue. Coping with HIV/AIDS may yet prove the biggest challenge that independent PNG has faced.
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PNG pursues a basic foreign policy of selective engagement, with a primary focus on the Asia-Pacific region. It is a member of the UN and the WTO, the Commonwealth and APEC. It is also an observer at ASEAN and ASEAN Regional Forum (ARF) meetings. As the largest Pacific island state, PNG plays a major role in the Pacific Islands Forum. It is serving as rotating PIF Chair in 2005-06, and hosted the October 2005 Forum meeting. PNG is also a core member of the sub-regional Melanesian Spearhead Group (MSG).
But its individual external linkages continue to be dominated by its complex and asymmetrical relationship with Australia. Australia currently provides over 80% of all external aid to PNG (an average of A$300 million per annum), and is PNG's main trading partner (receiving 27% of PNG's exports, sending 46% of imports). For Australia, PNG is its nearest neighbour and a key part of its immediate security environment. But despite its significant assistance and a wide range of bilateral historical, cultural and sporting 'people-to-people' links, Australia's relationship with PNG can be sensitive; the withdrawal of 230 Australian Federal Police from the large Enhanced Cooperation Programme (ECP) assistance initiative, following the loss of their immunity from prosecution, and the more recent Moti affair demonstrate the complexities.
PNG shares a land border with Indonesia, which brings with it the task of responding to the sensitive secessionist ambitions of some groups in West Papua. PNG has also continued a policy of engagement with countries in Southeast and North Asia. Engagement with China has been particularly intense and fast-growing, with PNG receiving substantial Chinese aid and investment. PNG has also consolidated links with Malaysia, the Philippines, South Korea, Japan and others over the last decade.
Diplomatic links were formally established soon after PNG achieved independence in 1975, building on official NZ representation in the country before that. The relationship now includes regular political-level consultations, a large development assistance programme, defence co-operation activities and a network of commercial and business linkages. In addition, more than a thousand New Zealanders are estimated to live and work in PNG.
There are regular high level visits between the two countries. Amongst other contacts, in recent years Foreign Ministers from both countries have met regularly to discuss regional and international issues of interest, and to promote developments in the bilateral relationship. NZ Prime Minister, Helen Clark, made an official bilateral visit to PNG in October 2005. NZ Minister of Foreign Affairs, Rt Hon Winston Peters, made a short working visit to Port Moresby on 22-24 May 2006. PNG's Governor-General, Sir Paulias Matane, visited New Zealand in February 2006, and Trade Minister, Hon Paul Tiensten, visited in June 2006, both as guests of our government.
New Zealand and PNG are close partners at both the regional and bilateral levels. We share common views on a range of international issues and so-operate actively in the many multilateral and regional bodies in which we are both members. New Zealand played a pivotal role in establishing the "Friends of PNG" group, which was instrumental in offering international support to the country during its financial crisis in mid 1999.
In trade, PNG is New Zealand's fourth largest market in the Pacific region with our exports in 2007 valued at NZ$109.6 million.
Defence co-operation between New Zealand and the Papua New Guinea Defence Force (PNGDF) is conducted under the Mutual Assistance Programme (MAP). A number of PNGDF personnel receive staff and trade training in New Zealand at Waiouru or through attachments to the Officer Cadet School. A New Zealand Defence Adviser is based in Port Moresby.
New Zealand’s bilateral ODA programme in PNG is the largest we have, with the exception of our contribution to the Solomon Islands RAMSI mission. In 2006-07 the programme totaled NZ$16.6 million, and is expected to increase incrementally to NZ$30 million by 2009-10. Programme focus areas are determined in consultation with PNG (using its ‘Medium Term Development Strategy’ as a starting point), and currently comprise healthcare, primary education, law and order, governance, civil society and rural development. The programme emphasises community and social development issues through support for NGO and community organisations. A new 10-year NZAID PNG Country Programme Strategy is under development which will cover the period 2008-2018.
The programme makes provision for considerable assistance to Bougainville (NZ$3. million in 2006-07), including economic and social development projects on Bougainville, capacity building for the Bougainville administration, and support for law and justice sector through the community-policing project and local NGOs. The third phase of a New Zealand community-policing project re-activated in April 2005 with the deployment of five New Zealand Police officers to Bougainville. The fourth phase of the project, with extended support to the Bougainville Police Service, started in early 2007.
New Zealand’s involvement in the Bougainville peace process and subsequent peace monitoring missions was a special chapter in NZ-PNG relations, and remains a key pillar in our bilateral relationship.
The Bougainville crisis and separatist insurgency lasted from 1989-1997, and was sparked by local landowner concerns over the operation of the Panguna copper and gold mine. New Zealand became actively involved in ending the conflict from 1997, when we hosted and mediated the first of a series of meetings between parties. The peace process concluded with the signing of the Bougainville Peace Agreement in August 2001. This was given legal effect in PNG through the unanimous adoption of the 2002 Bougainville Peace Agreement Act, which provides for greater autonomy for Bougainville within the PNG state and a referendum on independence in 10-15 years’ time.
New Zealand also led the initial truce-monitoring group that deployed to Bougainville in 1997 and was the second largest contributor (after Australia) to the later Peace Monitoring Group.
2005 saw the most significant milestone in the Bougainville peace process so far, the direct election and inauguration of the first Autonomous Bougainville Government (ABG) under the leadership of President Joseph Kabui. This was an affirmation of the peace process. The ABG now has a strong mandate to begin rebuilding Bougainville. But this next phase could be as fragile and complicated as those that have preceded it. The ABG will need to develop the Bougainville economy to a point where it can deliver essential social services and infrastructure and increase the well-being of local people, in order to secure ongoing public support for ABG leadership.
The sudden death of President Joseph Kabui from ill health on 8 June 2008 has left a large gap in Bougainville. Mr Kabui's significant contributions to the peace process will be remembered for many years. A process has been set in train by the Autonomous Bougainville Government under Acting President John tabinaman to ensure a smooth political sussion, but it may be some time before a new President takes over.
Diplomatic links were formally established soon after PNG achieved independence in 1975, building on official NZ representation in the country before that. The relationship now includes regular political-level consultations, a large development assistance programme, defence co-operation activities and a network of commercial and business linkages. In addition, more than two thousand New Zealanders are estimated to live and work in PNG.
There are regular high level visits between the two countries. Amongst other contacts, over the last six years Foreign Ministers from both countries have held annual consultations to discuss regional and international issues of interest, and to promote developments in the bilateral relationship. NZ Prime Minister Helen Clark made an official bilateral visit to PNG in October 2005. NZ Minister of Foreign Affairs Rt Hon Winston Peters made a short working visit to Port Moresby on 22-24 May 2006. PNG Governor-General Sir Paulias Matane visited New Zealand in February 2006, and trade minister Hon Paul Tiensten visited in June 2006, both as guests of our government.
New Zealand and PNG are close partners at both the regional and bilateral levels. We share common views on a range of international issues and co-operate actively in the UN, the WTO, the Commonwealth, APEC, the ASEAN Regional Forum, as well as the Pacific Islands Forum and many other regional bodies. New Zealand played a pivotal role in establishing the “Friends of PNG” group, which was instrumental in offering international support to the country during its financial crisis in mid 1999.
In trade PNG is New Zealand’s second largest market in the Pacific region (behind Fiji) with our exports in 2005 valued at NZ$103.03 million.
Defence co-operation between New Zealand and the Papua New Guinea Defence Force (PNGDF) is conducted under the Mutual Assistance Programme (MAP). A number of PNGDF personnel receive staff and trade training in New Zealand at Waiouru or through attachments to the Officer Cadet School. A New Zealand Defence Advisor is based in Port Moresby.
The Safetravel website provides a travel advisory for travellers to Papua New Guinea [external link].
