Papua New Guinea ( Png ) : The Quest For Development

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Papua New Guinea (PNG) – the quest for development

Economic growth is supposed to distribute the prosperity to all people across a country. The higher economic growth means more income to pursue a better life. Economic growth is the precondition for improving the development. No sustained economic development can occur without economic growth (Perkins et al. 2012, p 14). As a result, maintaining the sustainability of growth is crucial to sustain economic development, for example improvements in health, education, and other aspects of human welfare. However, creating the sustainable economic growth is a challenge for a natural resource dependent nation. This is because a resource curse term points out to a country that relies on natural resources faces sluggish economic growth (Sachs & Warner, 2001). The resource curse also refers to a negative correlation between development of a country and its natural resources abundance. Thus, it is hard to improve the economic development when the countries experience the natural resource curse.

Being a natural resource dependent country threats its economic growth sustainability, and then will deteriorate the economic development. Papua New Guinea (PNG) is one of countries that rely on natural resources which is reflected on World Development Index data whereas PNG had 30.2% total natural resources rents of Gross Domestic Product (GDP) in 2012 (World Bank, 2014). However, over the two past decades PNG has experienced unstable

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