Economy of Papua New Guinea

The economy of Papua New Guinea is largely underdeveloped. It is dominated by the agricultural, forestry, and fishing sector and the minerals and energy extraction sector. The agricultural, forestry, and fishing sector accounts for most of the labour force of Papua New Guinea, while the minerals and energy extraction sector is responsible for most of the export earnings.[9]

PNG's GDP growth has been driven by the extraction industries and real GDP growth per capita has averaged 4% since mid-2000.[10] The country has made significant progress investing proceeds from oil and gas in infrastructure building. As a result, its major cities like Port Moresby and Lae have received increased international investor attention, giving rise to an unprecedented building boom to exploit the opportunities presented by the country's rise as a regional economic leader in the South Pacific region. This is well supported by its strategic location as a Pacific's gateway to Asia as well as its comparatively huge landmass and demographic profile (almost 7 times that the rest of smaller Pacific Island nations)

The International Monetary Fund has reported[11] that despite PNG’s poverty, it is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure.[12] Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits, including oil, copper, and gold, account for 72% of export earnings.

Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. Australia is PNG's largest aid donor, providing $A506 million ($US376 million) in aid in 2016.[13] In 1995, the PNG government reached an agreement with the International Monetary Fund (IMF) and World Bank on a structural adjustment program, of which the first phase was successfully completed in 1996. In 1997, droughts caused by the El Niño weather pattern wreaked havoc on PNG's coffee, cocoa, and coconut production, the mainstays of the agricultural-based economy and major sources of export earnings. The coffee crop was slashed by up to 50% in 1997. Despite problems with drought, there was a small recovery in GDP in 1998. Growth increased to 3.6% in 1999 and may be even higher in 2000, say 4.3%.

Economy of Papua New Guinea
Port Moresby Town Mschlauch
Currencykina (PGK)
calendar year
Trade organisations
APEC and WTO
Statistics
Population8.085 million (2016)
GDPIncrease $21.319 billion (nominal, 2018 est.)[1]
Increase $30.855 billion (PPP, 2018 est.)[1]
GDP rank110th (nominal, 2018)
124th (PPP, 2018)
GDP growth
2.6% (2016) 2.8% (2017)
0.3% (2018e) 5.1% (2019f) [2]
GDP per capita
Increase $2,530 (nominal, 2018 est.)[1]
Increase $3,662 (PPP, 2018 est.)[1]
GDP per capita rank
132nd (nominal, 2018)
148th (PPP, 2018)
GDP by sector
agriculture: 22.1%
industry: 42.9%
services: 35% (2017 est.)[3]
4.3% (2019f est.)[1]
4.7% (2018 est.)[1]
5.4% (2017 est.)[1]
Population below poverty line
39.9% (2009 est.)[4]
41.9 medium (2009, World Bank)[5]
Increase 0.544 low (2017) (153rd)
Labour force
3.681 million (2017 est.)[3]
Labour force by occupation
agriculture: 85%
industry: NA%
services: NA%[3]
UnemploymentSteady 2.5% (2017 est.)[3]
Main industries
copra crushing, palm oil processing, plywood production, wood chip production; mining (gold, silver, copper); crude oil and petroleum products; construction, tourism, livestock (pork, poultry, cattle), dairy products, spice products (turmeric, vanilla, ginger, cardamom, chili, pepper, citronella, and nutmeg), fisheries products
119th (2017)[6]
External
ExportsDecrease $8.522 billion (2017 est.)[3]
Export goods
liquefied natural gas, oil, gold, copper ore, nickel, cobalt logs, palm oil, coffee, cocoa, copra, spice (turmeric, vanilla, ginger, and cardamom), crayfish, prawns, tuna, sea cucumber
Main export partners
 Australia 18.9%
 Singapore 17.5%
 Japan 13.8%
 China 12.7%
 Philippines 4.7%
 Netherlands 4.2%
 India 4.2% (2017)[3]
ImportsDecrease $1.876 billion (2017 est.)[3]
Import goods
machinery and transport equipment, manufactured goods, food, fuels, chemicals
Main import partners
 Australia 30.1%
 China 17.3%
 Singapore 10.2%
 Malaysia 8.2%
 Indonesia 4% (2017)[3]
FDI stock
Steady NA
Steady Abroad: NA
Increase $4.859 billion (2017 est.)[3]
Positive decrease $17.94 billion (31 December 2017 est.)[3]
Public finances
Steady 36.9% of GDP (2017 est.)[3]
−4.8% (of GDP) (2017 est.)[3]
Revenues3.638 billion (2017 est.)[3]
Expenses4.591 billion (2017 est.)[3]
Economic aidno data
Standard & Poor's:[7]
BB- (Domestic)
B+ (Foreign)
BB (T&C Assessment)
Outlook: Stable[8]
Moody's:[8]
B2
Outlook: Stable
Foreign reserves
Increase $1.735 billion (31 December 2017 est.)[3]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Economy

The economy generally can be separated into subsistence and market sectors, although the distinction is blurred by smallholder cash cropping of coffee, cocoa, and copra. About 75% of the country's population relies primarily on the subsistence economy. The minerals, timber, and fish sectors are dominated by foreign investors. Manufacturing is limited, and the formal labour sector consequently also is limited.

Mineral resources

In 1999, mineral production accounted for 26.3% of gross domestic product. Government revenues and foreign exchange earning minerals. Copper and gold mines are currently in production at Porgera, Ok Tedi, Misima, Lihir, Simberi[14] and Hidden Valley.[15] As of 2014, talks of resuming mining operations in the Panguna mine have also resurfaced, with the Autonomous Bougainville Government and National Government of Papua New Guinea expressing interest in restarting mining operations in the area.[16]

New nickel, copper and gold projects have been identified and are awaiting a rise in commodity prices to begin development. At early 2011, there are confirmation that Mount Suckling project has found at least two new large highly prospective porphyry bodies at Araboro Creek and Ioleu Creek.[17] A consortium led by Chevron is producing and exporting oil from the Southern Highlands Province of Papua New Guinea. In 2001, it expects to begin the commercialization of the country's estimated 640 km³ (23 trillion cubic feet) of natural gas reserves through the construction of a gas pipeline from Papua New Guinea to Queensland, Australia. That project was shelved.

Agriculture, timber, and fish

The agricultural, forestry, and fishing sector accounts for most of the labour force of PNG. Agriculture currently accounts for 25% of GDP and supports more than 80% of the population. Most agriculture is subsistence, while cash crops are exported. The main crops by value are coffee, oil, cocoa, copra, tea, rubber, and sugar. The timber industry was not active in 1998, due to low world prices, but rebounded in 1999. About 40% of the country is covered with timber rich trees, and a domestic woodworking industry has been slow to develop. Fish exports are confined primarily to shrimp, although fishing boats of other nations catch tuna in Papua New Guinea waters under license.

Papua New Guinea is the largest yam market in Asia.

Industry

In general, the Papua New Guinea economy is highly dependent on imports for manufactured goods. Its industrial sector—exclusive of mining—accounts for only 9% of GDP and contributes little to exports. Small-scale industries produce beer, soap, concrete products, clothing, paper products, matches, ice cream, canned meat, fruit juices, furniture, plywood, and paint. The small domestic market, relatively high wages, and high transport costs are constraints to industrial development.

Energy

Electricity - production: 3.35 billion kWh (2012 est.) [18] Electricity - consumption: 3.116 billion kWh (2012 est.)[18]

A study by Bloomberg New Energy Finance ranked PNG in the top 10 for potential renewable resources, with about 2.5 GW of these but only 2% of it exploited.[19]

Finance

The Bank of Papua New Guinea (BPNG) is the central bank of Papua New Guinea. Its main function is to issue currency and to act as the banker and financial agent to the Government. It is also in charge of regulating banking and other financial services and manages the gold, foreign exchange and any other international reserves of Papua New Guinea.

BPNG is engaged in developing policies to promote financial inclusion and is a member of the Alliance for Financial Inclusion, which had been formed in 2008. In 2013, BPNG made a Maya Declaration Commitment[20] to create an enabling environment for building an inclusive financial sector in Papua New Guinea.[21]

The currency of Papua New Guinean, issued by the BPNG, is the kina, which was introduced on 19 April 1975 to replace the Australian dollar.

Trade and investment

In 2014, Papua New Guinea's merchandise exports were:

  • 41% fuels and mining;
  • 23.8% agriculture;
  • 6.2% manufacturing; and
  • 29% other.[22]

Major destinations for merchandise exports include Australia (39.9%), the European Union (20.2%), Japan (11.7%), China (6.7%), and Singapore (5.6%).

In 2014, Papua New Guinea's merchandise imports were:

  • 17.8% fuels and mining;
  • 11.4% agriculture;
  • 69.4% manufacturing; and
  • 1.4% other.[22]

Major source countries for merchandise imports include Australia (34.4%), Singapore (14.3%), the European Union (8.3%), China (6.9%), and Japan (6.4%).

Petroleum, mining machinery and aircraft have been the primary U.S. exports to Papua New Guinea. In 1999, as mineral exploration and new minerals investments declined, as did United States exports. Crude oil is the largest U.S. import from Papua New Guinea, followed by gold, cocoa, coffee, and copper ore.

U.S. companies are active in developing Papua New Guinea's mining and petroleum sectors. Chevron operates the Kutubu and Gobe oil projects and is developing its natural gas reserves. A 5,000–6,000 m³ (30,000–40,000 barrel) per day oil refinery project in which there is an American interest also is under development in Port Moresby.

Papua New Guinea became a participating economy in the Asia-Pacific Economic Cooperation (APEC) Forum in 1993. It joined the World Trade Organization (WTO) in 1996.

Development programs and aid

Papua New Guinea is highly dependent on foreign aid. Australia has been the largest bilateral aid donor to PNG, providing $A506 million ($US376 million) in 2016.[13] Budgetary support, which has been provided in decreasing amounts since independence, was phased out in 2000, with aid concentrated on project development.

Other major aid sources to Papua New Guinea are Japan, the European Union, the People's Republic of China, the Republic of China, the United Nations, the Asian Development Bank, the International Monetary Fund, and the World Bank. Volunteers from a number of countries, including the United States, and mission church workers also provide education, health, and development assistance throughout the country.

Economic conditions

(as of 2003)

By mid-1999, Papua New Guinea's economy was in crisis. Although its agricultural sector had recovered from the 1997 drought and timber prices were rising as most Asian economies recovered from their 1998 slump, Papua New Guinea's foreign currency earnings suffered from low world mineral and petroleum prices. Estimates of minerals in exploration expenditure in 1999 were one-third of what was spent in 1997. The resulting lower foreign exchange earnings, capital flight, and general government mismanagement resulted in a precipitous drop in the value of Papua New Guinea's currency, the kina, leading to a dangerous decrease in foreign currency reserves. The kina has floated since 1994. Economic activity decreased in most sectors; imports of all kinds shrunk; and inflation, which had been over 21% in 1998, slowed to an estimated annual rate of 8% in 1999.

Citing the previous government's failure to successfully negotiate acceptable commercial loans or bond sales to cover its budget deficit, the government formed by Sir Mekere Morauta in July 1999 successfully requested emergency assistance from the International Monetary Fund and the World Bank. With assistance from the Fund and the Bank, the government has made considerable progress toward macroeconomic stabilization and economic reform.

Main indicators

The following table shows the main economic indicators in 1980–2017.[23]

Year 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP in $
(PPP)
3.16 Bln. 4.41 Bln. 5.49 Bln. 9.34 Bln. 10.55 Bln. 13.18 Bln. 13.90 Bln. 15.85 Bln. 16.11 Bln. 17.34 Bln. 19.33 Bln. 19.95 Bln. 21.26 Bln. 22.43 Bln. 25.69 Bln. 28.04 Bln. 29.08 Bln. 30.33 Bln.
GDP per capita in $
(PPP)
1,067 1,323 1,462 2,067 2,056 2,280 2,348 2,348 2,617 2,600 2,891 2,830 2,861 2,954 3,313 3,540 3,597 3,675
GDP growth
(real)
−2.3 % 3.6 % −3.0 % −3.4 % −2.5 % 3.9 % 2.3 % 11.1 % −0.3 % 6.8 % 10.1 % 1.1 % 4.6 % 3.8 % 12.5 % 9.0 % 2.4 % 2.5 %
Inflation
(in Percent)
12.1 % 3.7 % 7.0 % 17.3 % 15.6 % 1.8 % 2.4 % 0.9 % 10.8 % 6.9 % 5.1 % 4.4 % 4.5 % 5.0 % 5.2 % 6.0 % 6.7 % 5.2 %
Government debt
(Percentage of GDP)
... ... ... 36 % 42 % 32 % 26 % 23 % 22 % 22 % 17 % 16 % 19 % 25 % 27 % 29 % 32 % 33 %

Statistics

Household income or consumption by percentage share:
lowest 10%: 4.3%
highest 10%: 36% (2008)

Labour force: 2.078 million

Electricity – production: 2,200 GWh (2008)

Electricity – production by source:
fossil fuel: 67.78%
hydro: 32.22%
nuclear: 0%
other: 0% (2008)

Electricity – consumption: 2,000 GWh (2008)

Electricity exports: 10 kWh (2008)

Electricity – imports: 0 kWh (2008)

Agriculture – products: coffee, cocoa, coconuts, palm kernels, tea, rubber, sweet potatoes, fruit, vegetables; poultry, pork, vanilla

Currency: 1 kina (K) = 100 toea

Exchange rates: kina (K) per US$1 – 3.14 (April 2016), 2.7624 (November 1999), 2.520 (1999), 2.058 (1998), 1.434 (1997), 1.318 (1996), 1.276 (1995)

References

  1. ^ a b c d e f g "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 9 April 2019.
  2. ^ "January 2019 Global Economic Prospects -- Darkening Skies p. 62" (PDF). openknowledge.worldbank.org. World Bank. Retrieved 7 April 2019.
  3. ^ a b c d e f g h i j k l m n o "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 7 April 2019.
  4. ^ "Poverty headcount ratio at national poverty lines (% of population)". data.worldbank.org. World Bank. Retrieved 7 April 2019.
  5. ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 7 April 2019.
  6. ^ "Ease of Doing Business in Papua New Guinea". Doingbusiness.org. Retrieved 24 January 2017.
  7. ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
  8. ^ a b Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian. Retrieved 28 May 2011.
  9. ^ "Papua New Guinea Overview". The World Bank. 28 September 2016. Retrieved 25 January 2017.
  10. ^ "Papua New Guinea Country at a Glance". The World Bank. Retrieved 25 January 2017.
  11. ^ World Economic Outlook Database, October 2015, International Monetary Fund. Database updated on 6 October 2015. Accessed on 6 October 2015.
  12. ^ The Case for a Parliamentary Budget Office in Papua New Guinea. Social Science Research Network (SSRN). Accessed 18 July 2017.
  13. ^ a b Which country gives the most aid to Pacific Island nations? The answer might surprise you
  14. ^ "Simberi Gold Mine, Simberi Island, Papua New Guinea". mining-technology.com. Retrieved 17 September 2017.
  15. ^ "Hidden Valley". Harmony Gold Mining Company Limited. 2016. Retrieved 19 January 2017.
  16. ^ "Bougainville Copper Limited". Archived from the original on 23 September 2015. Retrieved 24 August 2015.
  17. ^ http://www.asiaminer.com/magazine/current-news/news-archive/130-january-2011/3171-papua-new-guinea-new-mt-suckling-porphyries.html
  18. ^ a b CIA Factbook
  19. ^ http://www.oxfordbusinessgroup.com/country/papua-new-guinea/energy
  20. ^ "Maya Declaration: Commitment made by the Bank of Papua New Guinea". AFI Global - Bringing smart policies to life.
  21. ^ http://www.afi-global.org/sites/default/files/publications/maya_declaration_bank_of_papua_new_guinea.pdf
  22. ^ a b http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=PG
  23. ^ https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?sy=1980&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=853&s=NGDP_RPCH%2CPPPGDP%2CPPPPC%2CPCPIPCH%2CGGXWDG_NGDP&grp=0&a=&pr.x=78&pr.y=5. Retrieved 3 September 2018. Missing or empty |title= (help)

External links

APEC Papua New Guinea 2018

APEC Papua New Guinea 2018 was the year-long hosting of Asia-Pacific Economic Cooperation (APEC) meetings in Papua New Guinea.It was the first time Papua New Guinea is hosting the APEC meetings. Australia provided a quarter to a third of the cost to host the meetings and also helped with logistics and security (G4S). Three Cruise ships were chartered through an Australian company to cater to the some 10,000 delegates and guests.Many of the attendees and delegations had previously attended the 2018 East Asia Summit held from 11 November to 15 November in Singapore, hosted by the Chairperson Lee Hsien Loong, the Prime Minister of Singapore. Thereafter, many of the state leaders, including Prime Minister Lee of Singapore, flew from Singapore to Papua New Guinea.

Agriculture in Papua New Guinea

Agriculture in Papua New Guinea has a more than 7,000 years old history. Currently around 85% of Papua New Guinea's population lives from semi-subsistence agriculture.Papua New Guinea produces and exports agricultural, timber, and fish products. Agriculture currently accounts for 25% of GDP and supports more than 80% of the population. Cash crops ranked by value are coffee, oil, cocoa, copra, tea, rubber, and sugar. The timber industry was not active in 1998, due to low world prices, but rebounded in 1999. About 40% of the country is covered with timber rich trees, and a domestic woodworking industry has been slow to develop. Fish exports are confined primarily to shrimp, although fishing boats of other nations catch tuna in Papua New Guinea waters under license.

Papua New Guinea is the largest yam market in Asia.

Aquaculture in Papua New Guinea

Aquaculture in Papua New Guinea is a developing industry, despite having been first introduced to the country in the 1960s. The only forms of traditional aquaculture in the area are clam culture on Manus Island and fish culture on Bougainville Island. Numerous attempts to introduce both marine and freshwater aquaculture in Papua New Guinea have been unsuccessful. Currently, the main freshwater facility for aquaculture is the Highlands Aquaculture Development Center in Aiyura.

Bank of Papua New Guinea

The Bank of Papua New Guinea is the central bank of Papua New Guinea. Its main function is to issue currency and to act as the banker and financial agent to the Government. It is also in charge of regulating banking and other financial services and manages the gold, foreign exchange and any other international reserves of Papua New Guinea. Mr Loi Martin Bakani is the current governor of the bank.

Banknotes of New Guinea

Banknotes were issued in New Guinea in late 1914 after Australian forces took over German New Guinea.

These extremely rare notes are denominated in New Guinean marks, as opposed to German New Guinean marks. The New Guinean mark was created as a way of driving the German New Guinean mark out of circulation, and to function as a temporary currency until the Australian pound was introduced.

The notes are inscribed 'TREASURY NOTE', '(x) MARKS', 'Payable in coin at the Treasury, Rabaul. Dated at Rabaul this ...day of...191...', 'For and on behalf of the Treasury'. The denomination is also expressed in figures in two boxes at the top of the notes.

The notes are extremely rare. They are listed in the Standard Catalog of World Paper Money quite wrongly under 'German New Guinea'. Only 29 notes are known to have survived, although reprints of all have been made.

. The 100 mark note may be unique.A primitive 20 Mark note printed with boot polish is also reputed to have existed which was used for paying the wages of the German Voluntary Brigade.

Bougainville Copper

Bougainville Copper Limited (BCL) is a mining company of Papua New Guinea (PNG) that is listed on the Australian Securities Exchange (ASX). BCL operated the copper, gold and silver mine at Panguna in central Bougainville (Bougainville Island) in PNG from 1971 to 1989. Mining operations were officially halted on 15 May 1989, due to militant activity and the mine has remained closed since.

Mining giant Rio Tinto, which was historically Bougainville Copper Limited's major shareholder, exited on 30 June 2016 when it transferred its 53.8 per cent shareholding for distribution to the Autonomous Bougainville Government and the Independent State of Papua New Guinea.

Copra plantations in New Guinea

Copra plantations in New Guinea have been cultivated since the late 19th century, originally by German colonialists. They were continued by Australian interests following World War II.

Copra is the fourth most significant agriculture cash crop of PNG. An estimated 2.6 million people are engaged in coconut activities in PNG to either generate income and/or as food to supplement their livelihoods.

Corruption in Papua New Guinea

Corruption is rife in Papua New Guinea (PNG).

According to The Economist, “PNG's governments are notorious for corruption, and ever run the risk of turning the state into a fully-fledged kleptocracy”.Transparency International's 2016 Corruption Perception Index ranks the country 136th place out of 176 countries.Papua New Guinea is below the satisfactory levels set by the United Nations Convention against Corruption (UNCAC), according to a report submitted by Transparency International Papua New Guinea (TIPNG) in 2011. TIPNG’s report found that in many cases, anti-corruption bodies in PNG were restricted by shortcomings in financial resources.

History of Bougainville

Bougainville is a province of Papua New Guinea. It was named after the French navigator Louis Antoine de Bougainville.

Kenneth Good (political scientist)

Kenneth Alfred Good (born 1933) is an Australian academic and formerly Professor of Political Science at the University of Botswana. He specializes in the analysis of the political economy of African and Melanesian nations. In 2005 he was ejected from Botswana for criticizing the government, later winning a favorable judgement from the African Commission on Human and Peoples’ Rights.

National Superannuation Fund

The National Superannuation Fund (NASFUND) of Papua New Guinea (PNG) was established in May 2002, as the successor entity to the National Provident Fund (NPF). It is the largest private sector superannuation fund in PNG. In 2016, NASFUND reported net assets of PGK4.22 billion, representing a 28% growth on 2015.Compulsory superannuation contributions in PNG were introduced in 1982. Employees are required to contribute a minimum of 6% of their salary to a superannuation fund and employers of over 15 persons are required to contribute 8.4%.The Chief Executive Officer of NASFUND is Ian Tarutia OBE. The Fund is supervised by a board of nine directors, which is chaired by Hulala Tokome. Three of the directors are independent and six are representatives of the seven shareholding bodies:

Employers Federation of PNG;

Manufacturers Council of PNG;

Rural Industries Council of PNG;

Chamber of Mining & Petroleum;

PNG Chamber of Commerce;

PNG Banks & Financial Institutions Workers Union; and

PNG Trade Union Congress.The investment functions of NASFUND are outsourced to Pacwealth Capital Limited (PCL), with fund administration managed by Kina Investments and Superannuation Services (KISS).

Outline of Oceania

The following outline is provided as an overview and topical guide to Oceania.

Oceania is a geographical, and geopolitical, region consisting of numerous lands—mostly islands in the Pacific Ocean and vicinity. The term is also sometimes used to denote a continent comprising Australia and proximate Pacific islands.The boundaries of Oceania are defined in a number of ways. Most definitions include parts of Australasia such as Australia, New Zealand, and New Guinea, and parts of Maritime Southeast Asia. Ethnologically, the islands of Oceania are divided into the subregions of Melanesia, Micronesia, and Polynesia.

Outline of Papua New Guinea

The following outline is provided as an overview of and topical guide to Papua New Guinea:

The Independent State of Papua New Guinea is a sovereign island nation of Oceania comprising the eastern half of the Island of New Guinea and numerous offshore islands in the western South Pacific Ocean. Papua New Guinea is located in a region defined since the early 19th century as Melanesia. Its capital, and one of its few major cities, is Port Moresby. It is one of the most diverse countries on Earth, with over 850 indigenous languages and at least as many traditional societies, out of a population of just under 6 million. It is also one of the most rural, with only 18 per cent of its people living in urban centres. The country is also one of the world's least explored, culturally and geographically, and many undiscovered species of plants and animals are thought to exist in the interior of Papua New Guinea.

The majority of the population live in traditional societies and practise subsistence-based agriculture. These societies and clans have some explicit acknowledgement within the nation's constitutional framework. The PNG Constitution (Preamble 5(4)) expresses the wish for traditional villages and communities to remain as viable units of Papua New Guinean society, and for active steps to be taken in their preservation. The PNG legislature has enacted various laws in which a type of tenure called "customary land title" is recognised, meaning that the traditional lands of the indigenous peoples have some legal basis to inalienable tenure. This customary land notionally covers most of the usable land in the country (some 97% of total land area); alienated land is either held privately under State Lease or is government land. Freehold Title (also known as fee simple) can only be held by Papua New Guinea citizens.The country's geography is similarly diverse and, in places, extremely rugged. A spine of mountains runs the length of the island of New Guinea, forming a populous highlands region. Dense rainforests can be found in the lowland and coastal areas. This terrain has made it difficult for the country to develop transportation infrastructure. In some areas, planes are the only mode of transport. After being ruled by three external powers since 1884, Papua New Guinea gained its independence from Australia in 1975.

Papua New Guinea

Papua New Guinea (PNG; UK: , US: ; Tok Pisin: Papua Niugini; Hiri Motu: Papua Niu Gini), officially the Independent State of Papua New Guinea (Tok Pisin: Independen Stet bilong Papua Niugini; Hiri Motu: Independen Stet bilong Papua Niu Gini) is a country in Oceania that occupies the eastern half of the island of New Guinea and its offshore islands in Melanesia, a region of the southwestern Pacific Ocean north of Australia. Its capital, located along its southeastern coast, is Port Moresby. The western half of New Guinea forms the Indonesian provinces of Papua and West Papua.

At the national level, after being ruled by three external powers since 1884, Papua New Guinea established its sovereignty in 1975. This followed nearly 60 years of Australian administration, which started during World War I. It became an independent Commonwealth realm in 1975 with Elizabeth II as its queen. It also became a member of the Commonwealth of Nations in its own right.

Papua New Guinea is one of the most culturally diverse countries in the world. It is also one of the most rural, as only 18 per cent of its people live in urban centres. There are 851 known languages in the country, of which 11 now have no known living speakers. Most of the population of more than 8 million people lives in customary communities, which are as diverse as the languages. The country is one of the world's least explored, culturally and geographically. It is known to have numerous groups of uncontacted peoples, and researchers believe there are many undiscovered species of plants and animals in the interior.Papua New Guinea is classified as a developing economy by the International Monetary Fund. Strong growth in Papua New Guinea's mining and resource sector led to the country becoming the sixth-fastest-growing economy in the world in 2011. Growth was expected to slow once major resource projects came on line in 2015. Mining remains a major economic factor, however. Local and national governments are discussing the potential of resuming mining operations at the Panguna mine in Bougainville Province, which has been closed since the civil war in the 1980s–1990s. Nearly 40 per cent of the population lives a self-sustainable natural lifestyle with no access to global capital.Most of the people still live in strong traditional social groups based on farming. Their social lives combine traditional religion with modern practices, including primary education. These societies and clans are explicitly acknowledged by the Papua New Guinea Constitution, which expresses the wish for "traditional villages and communities to remain as viable units of Papua New Guinean society" and protects their continuing importance to local and national community life. The nation is an observer state in the Association of Southeast Asian Nations or ASEAN since 1976, and has already filed its application for full membership status. It is a full member of the Pacific Islands Forum (formerly South Pacific Forum) and the Commonwealth of Nations.

Papua New Guinean kina

The kina (ISO 4217 currency code: PGK, the currency symbol: K) is the currency of Papua New Guinea. It is divided into 100 toea. The kina was introduced on 19 April 1975, and circulated along with the Australian dollar until 1 January 1976, when the dollar ceased to be legal tender.

The name kina is derived from Kuanua language of the Tolai region, referring to a callable pearl shell used widely for trading in both the Coastal and Highlands areas of the country.

Port Moresby Stock Exchange

Port Moresby Stock Exchange is the principal stock exchange of Papua New Guinea. It is located in Port Moresby and it was founded in 1999. Its name is abbreviated to "POMSoX"

At the time of its founding POMSox was funded by the Bank of Papua New Guinea, which is the central bank of Papua New Guinea.

According to POMSoX's website, "POMSoX is closely aligned to the Australian Stock Exchange (ASX). The ASX has licensed to POMSoX its Business and Listing Rules. POMSoX procedures are a mirror image of the ASX."

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