Region: Oceania-Melanesia

Capital: Port Moresby

Population: 5,420,280 (July 2004 est.)

Surface area: 462,840 sq km

Currency: kina

GDP per capita: purchasing power parity - $2,200 (2003 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 oil, copper, and gold, account for 72% of export earnings. The economy has faltered over the past four years. Former Prime Minister Mekere MORAUTA had tried to restore integrity to state institutions, to stabilize the kina, restore stability to the national budget, to privatize public enterprises where appropriate, and to ensure ongoing peace on Bougainville. The government has had considerable success in attracting international support, specifically gaining the backing of the IMF and the World Bank in securing development assistance loans. Challenges face Prime Minister Michael SOMARE, including curbing inflation, gaining further investor confidence, continuing efforts to privatize government assets, maintaining the support of members of Parliament, and balancing relations with Australia, the former colonial ruler.

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