Region: Oceania-Melanesia

Capital: Port Moresby

Population: 5,931,769 (July 2008 est.)

Surface area: 462,840 sq km

Currency: kina (PGK)

GDP per capita: Purchasing power parity US $2,000 (2007 est.)

Background:
The eastern half of the island of New Guinea - second largest in the world - was divided between Germany (north) and the UK (south) in 1885. The latter area was transferred to Australia in 1902, which occupied the northern portion during World War I and continued to administer the combined areas until independence in 1975. A nine-year secessionist revolt on the island of Bougainville ended in 1997 after claiming some 20,000 lives.

Economy – Overview
Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for 85% of the population. Mineral deposits, including copper, gold, and oil, account for nearly two-thirds of export earnings. The government of Prime Minister Somare has expended much of its energy remaining in power. He was the first prime minister ever to serve a full five-year term. The government also brought stability to the national budget, largely through expenditure control; however, it relaxed spending constraints in 2006 and 2007 as elections approached. Numerous challenges still face the government including regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and balancing relations with Australia, its former colonial ruler. Other socio-cultural challenges could upend the economy including a worsening HIV/AIDS epidemic and chronic law and order and land tenure issues. Australia will supply more than $300 million in aid in FY07/08, which accounts for nearly 20% of the national budget.

Major Export Commodities: oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawns

Remittances: US $13 million (2006)

Human Development Index 2007/2008 ranking: 145 out of 177

Official Development Assistance and Major Development Partners: Net ODA in 2006 was US $248.27 million. Major development partners include Australia, Japan, and the European Community.

Total External Debt: US $1.595 billion (31 December 2007 est.)

United Nations membership date: 10 October 1975

New York Mission:
Permanent Mission of Papua New Guinea to the United Nations
201 East 42nd Street, Suite 405
New York, N.Y. 10017 USA
Telephone: 212-557-5001
Fax: 212-557-5009