The PNG Investors' Manual

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ABOUT PAPUA NEW GUINEA

the circumstances of defections from political parties, and restrictions on independent MPs. Following years of frequent changes of government, PNG governments are now protected under the Constitution from no-confidence motions for the first 18 months of a five-year term. A successful no-confidence motion after this moratorium results in an alternative Prime Minister being able to form a new government without calling an election—unless the change occurs in the last year of the government’s term. PNG’s National Executive Council (or Cabinet) is appointed by the Governor-General on the recommendation of the Prime Minister. The National Government is responsible for major resource development, police, defence, foreign relations, trade, higher education, hospitals. The next national elections are scheduled for June 2012.

1.9.2 Provincial governments

1.9.3 The judiciary PNG law is based on English common law. PNG has three types of courts: the Supreme Court, national courts and courts of limited jurisdiction. The Supreme Court is the country’s highest judicial authority. It deals with constitutional matters and appellate cases. The Chief Justice is appointed by the Governor-General on the recommendation of the National Executive Council. Other judges are appointed by the Judicial and Legal Services Commission. National courts have unlimited jurisdiction over all criminal and civil matters. The national courts sit in a number of population centres. Courts of limited jurisdiction include district courts, local courts and village courts, land courts, juvenile court and coroner’s court.

PNG’s provinces consist of: Central, Chimbu, Eastern Highlands, East New Britain, East Sepik, Enga, Gulf, Madang, Manus, Milne Bay, Morobe, New Ireland, Northern, Sandaun, Southern Highlands, Western, Western Highlands and West New Britain. The National Capital District is an administrative district taking in Port Moresby. Bougainville is an autonomous region.

1.10 Social issues

In July 2009, PNG’s Parliament passed legislation to create two new provinces by 2012, Hela Province (currently part of Southern Highlands) and Jiwika Province (currently in Western Highlands)

PNG has an adult literacy rate of 57.3% according to UNESCO figures for 2004. Approximately 56% of primary school entrants reach the final grade of primary education. Around 25% of eligible children enrol in secondary school. However, the PNG Government has signalled its intention to make education, at least at primary level, free as early as 2012.

The legislative assembly in each province is led by the Governor, and includes the heads of local level government bodies, the members of the National Parliament from the province and appointed members. PNG’s provincial governments are responsible for education, primary industry, business development and provincial works. They can levy indirect taxes, but rely on grants from the National Government. Funding from the National Government to the provinces declined substantially in real terms in the 1990s. However, with the recent solid growth in the economy, and the promise of at least one liquefied natural gas (LNG) project by 2014, this trend is being reversed. Legislation passed in March 2009 was designed to reduce the gap between each provincial government’s revenue and the cost of delivering services. Under the Intergovernmental (Financing and Functions) Act, the National Government will help bridge this funding gap and meet recurrent costs.

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PNG’s Millennium Development Goals relate to eradication of hunger and poverty, and improvements in primary education, gender equality, child mortality, maternal health, combating HIV/AIDS, malaria and other diseases, and ensuring environmental sustainability.

PNG has a generalised epidemic of HIV/AIDS. There were an estimated 76,000 people living with HIV at the end of 2008. This puts the prevalence of HIV among the country’s adult population at 1.5%. There is limited access to anti-retroviral therapy, but this is changing with support from the World Health Organization (WHO), the Global Fund, the Clinton Foundation and the Bill and Melinda Gates Foundation. Public awareness and education is being supported by active groups such as the Business Coalition Against HIV and AIDS (www. baha.com.pg). A new centralised health structure in the provinces is planned to improve health standards in PNG and combat a shortage of drugs, medical equipment and trained health professionals. Notwithstanding the above, life expectancy in PNG continues to rise.

THE PNG INVESTORS’ MANUAL - SECOND EDITION


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