In terms of investment, Papua New Guinea’s geographic location, geopolitical importance and abundance of commodities, as well as the success of the PNG Liquefied Natural Gas project, have helped it become a favoured destination for Chinese and Japanese ventures, with expectations of further foreign direct investment (FDI) going forward, particularly in the primary sector. However, PNG remains a challenging place for international participants, and while high-level, strategically important projects are likely to proceed smoothly, smaller, more entrepreneurial ventures may face difficulty. To improve this reputation the country is trying to boost transparency and efficiency in business transactions, though new initiatives under way could see it adopt more protectionist policies, thereby going against the tenets of liberal economics it has traditionally embraced.

This paper examines the significance and impact of broad-based and industrial policies on economic diversification in developing economies, supported by a literature review, case studies, and IMF analyses. Economic diversification entails shifting from traditional sectors, like agriculture and mining, to a variety of high-quality services and sectors. This transition is crucial for adapting to global market fluctuations and promoting sustainable growth and improved living standards. A literature review, including many IMF contributions, reveals a strong correlation between economic diversification and improved macroeconomic performance in developing countries, such as faster economic growth and higher incomes per capita. Factors influencing economic diversification include macroeconomic stability, infrastructure quality, workforce skills, credit access, regulatory environment, and income equality. Six case studies highlight the experiences of Costa Rica, Gabon, Georgia, India, Senegal, and Vietnam, demonstrating that successful diversification strategies require a long-term commitment and effective broad-based policies. Industrial policies can support diversification by addressing market failures, but they must be well-designed and effectively implemented. Common lessons include the necessity of maintaining macroeconomic stability, investing in human capital, and fostering competition. Sector-specific mechanisms like Special Economic Zones should be used cautiously, emphasizing underlying bottlenecks and minimizing fiscal costs. Country-specific insights include Costa Rica's strategic policy shift towards export orientation, Gabon's reduced dependence on oil, Georgia's market-friendly policies, India's skilled labor and software clusters, Senegal's infrastructure and business environment improvements, and Vietnam's transition from an agrarian to an industrial economy. The IMF's engagement in diversification emphasizes improving human capital, infrastructure, reducing trade barriers, and promoting international trade integration. Policymakers, researchers, and international organizations increasingly recognize the importance of economic diversification for resilient, sustainable, and inclusive growth, requiring nuanced policy interventions tailored to each country's context and capabilities.

In the first years of the 21st century, economic liberalisation began to transform telecommunications services throughout the Pacific Islands. Government regulators, corporate executives and everyday consumers hopefully imagined that opening mobile phone markets to competition would result in greater access, lower costs and accelerated development. Uneven Connections examines the ways in which liberalisation took hold in Papua New Guinea (PNG) when a unit of the Caribbean-based mobile network operator Digicel Group Ltd. seized the opportunity to compete with the state-sponsored incumbent. The book highlights how mobile phones entered the lives of urban and rural Papua New Guineans after Digicel’s arrival in 2007. In so doing, it describes a moral economy in which companies, consumers and state agents continually negotiate who owes what to whom. In what ways have these various actors invented and negotiated new forms of both freedom and constraint? Uneven Connections advances understanding of how a so-called digital revolution in PNG unfolded, resulting in outcomes that often confounded the expectations of policy makers and ordinary citizens alike. It assesses the extent to which some of the promises of this revolution have been redeemed and identifies the challenges faced by companies, consumers and state agents in establishing and experiencing novel forms of uneven connectivity. The book provides a short and selective history of mobile phones in PNG, ending with the sale of Digicel’s Pacific operations to the Australian company Telstra in 2022.

‘...a fascinating account of one of the most important figures in PNG's first 40 years of Independence.’ – Sean Dorney, journalistBorn on a remote island in Papua New Guinea to a migrant Chinese father and indigenous mother, Julius Chan overcame poverty, discrimination, and family tragedy to become one of Papua New Guinea’s longest-serving and most influential politicians.His 50-year career, including two terms as Prime Minister, encompasses a crucial period of Papua New Guinea’s history, particularly its coming of age from an Australian colony to a leading democratic nation in the South Pacific. Chan has played a significant role during these decades of political, economic and social change. Playing the Game offers unique insights into one of the world’s most ancient and complex tribal cultures. It also explores the vexed issues of increasing corruption, government failure, and the unprecedented exploitation of its precious natural resources.In the first memoir by a Papua New Guinean leader in forty years, Sir Julius Chan explores his decision in 1997 to hire a private military force, Sandline International, to quell the ongoing civil crisis in Bougainville. This controversial deal sparked worldwide outrage, cost Sir Julius the prime ministership and led to ten years in the political wilderness. He was re-elected as Governor of New Ireland in 2007, aged 68, a seat he has held ever since.Playing the Game is an authentic and compelling account of Chan’s private and political life, and offers a rare insight into how the modern nation of Papua New Guinea came to be, the vision and values it was founded on, and the extraordinary challenges it faces in the 21st century.

Papua New Guinea continues to encourage a policy focus on food and nutrition security. The PNG National Nutrition Policy (2016-2026) and Nutrition Strategic Action Plan (2018-2022) (NSAP) set a path to improve coordination, secure sufficient funding, and improve technical capacity of nutrition-focused pro gram implementation. As policy prioritizes improved nutrition outcomes, it is important to understand the cost that households face of securing a higher level of nutrition. Ensuring a healthy diet that meets nutrition standards is relatively expensive in PNG. The analysis presented in this paper, which uses detailed household food and non-food consumption data suggests that 4/5 of households in the survey sample live below the healthy diet poverty line (which sets a calorie threshold and defines healthy diet nutrition targets). That is, these households do not have the income available (or do not consume sufficient food and non-food goods) to meet their basic needs which includes securing a nutritious diet that meets food based die tary guidelines.

The Country Gender Assessment of Agriculture and the Rural Sector report provides a gender perspective of the agricultural and rural sector of Papua New Guinea. The analysis provides an overview of the gender-based gaps and inequalities in access to and control over critical productive resources and opportunities. The methods used involved a two-tier approach where there was the review of literature related to women’s engagement in agriculture and the rural sector as well as, semi-structured interviews and focus group discussions with selected groups. The findings recognizes that agriculture is key for the country’s economy. However, there remains to be persisting challenges in creating an enabling environment for enhancing women’s participation in food value chains. Additionally, the disparities are obvious in access to and control over key agricultural resources. The rural women even though are major contributors to the economy, their rights are not properly recognized hence, are excluded systematically from access to decision-making. It is thereby concluded that the lack of influential gender sensitive leadership and coordination of the agricultural sector impede the empowerment of rural women and girls in the country. The recommendation include a gender and workplace policy developed for the agricultural sector. Importantly, this publication is a tool for FAO, the Government of Papua New Guinea and other development partners to mainstream gender into programming towards gender equality and the empowerment of rural women in Papua New Guinea.