The Australian Strategic Policy Institute (ASPI) has today released its report, Strengthening Our Neighbour: Australia and the future of Papua New Guinea.

Our nearest neighbour, Papua New Guinea (PNG) faces a host of significant challenges that go to the heart of its long term viability as a functioning state. While there is no acute crisis, many long-term trends are negative. A vicious cycle links failing service delivery, falling revenues and national fragmentation with increasing fragility of government institutions, poor economic performance and a lack legitimacy of the government in the eyes of the people. Underlying all of PNG’s problems are pervasive and systemic weaknesses in the capacity of the PNG state to provide effective government.

PNG’s deterioration matters to Australia for a host of compelling reasons, from high strategic and transnational security concerns through to altruistic impulses born of history, geography and common humanity.

Despite the considerable money and technical skills Australia has invested in PNG over the thirty years since its independence, little we have done has seemed to work. The recent Enhanced Cooperation Program (ECP), under which around 300 Australian police and public servants will help to address PNG’s challenges, is a step in the right direction, but it is too limited in scope to make much impact on the breadth and depth of PNG’s challenges.

This report sets out a policy approach which would enable Australia to play a more active part in helping to strengthen PNG. Such a program of deeper engagement would need to cover the following four elements:

Strengthen the relationship. Set a new direction for the relationship between Australia and PNG, and increase support for cultural, student and academic exchanges and scholarships.

Strengthen the state. Expand and improve programs to help PNG strengthen the state and its institutions, including support for strengthening PNG’s central agencies and for reforms to the handling of public money.

Strengthen the economy. Implement measures designed to strengthen PNG’s economy, including supporting regulatory reform, active support for the private sector, and the possibility of granting Papua New Guineans access to Australia’s labour market. 

Strengthen the nation. Help to build a stronger sense of nationhood in PNG, including support for the media and sport. The report was prepared by Hugh White and Elsina Wainwright, ASPI Strategy and International Program Director, with contributors Ken Baxter, Rowan Callick and Andrea Cole, and PNG perspectives from Sir Mekere Morauta and Charles Lepani.