Aid, mining development and structural adjustment in Papua New Guinea

Papua New Guinea is a country endowed with abundant natural resources. Despite the immense potential, its development record since independence from Australia in 1976 has been rather disappointing. The economy of Papua New Guinea has gone through a series of external shocks, starting with the Bougainville war in 1989. Succesives governments have responded to the ensuing crises with a series of structural reforms, the latest of which was implemented in 2000. The purpose of the paper is to evaluate the combined macroeconomic impacts of aid flows, increased mining output and the structural reforms. (DSE/DÜI)