World Bank Warns Papua New Guinea’s Commodity-Led Growth Is Not Broadly Shared

According to Lianhe Zaobao citing AFP, the World Bank said in a report released Thursday (July 2) that Papua New Guinea’s economy benefited from growth driven by gold and natural gas, but most citizens have not shared in the gains. The report said Papua New Guinea’s growth strengthened last year as surging export prices for gold, copper and liquefied natural gas lifted the expansion rate to 5.6% from 3.4% a year earlier, but those industries provide only 6% of formal jobs and most profits from foreign-owned gas projects flow overseas. The World Bank said that after accounting for rapid population growth, the employment rate actually fell 0.3% last year, and it cited indicators including stunting among one in two children under five, nearly three-quarters of 10-year-olds unable to read when leaving school, and 80% of employed people working in the informal sector. The World Bank called for a clearer jobs agenda, stronger infrastructure, improved education and healthcare, and reforms to create better conditions for private-sector investment and hiring.