Stunting in children correlates with lower measured cognitive abilities, fewer yearsof completed schooling and lower earnings as an adult. The loss of adultproductivity related to early childhood stunting has been linked with economiclosses for PNG – up to an estimated 11 percent of GDP.¹

Government recognizes that good nutrition is the cornerstone for survival, health and development. In 2020, the prevalence of stunting in children under five stoodat 37 percent, while the prevalence of wasting in children at the same age stoodat 9.6 percent.[2] Related to stunting is the high level of food insecurity, more likelyexperienced by rural residents than urban residents (58 percent versus 52percent). [3]

Through the National Nutrition Policy and National Food Security Action Plan, thegovernment aims to promote and increase the production of staple foods,livestock breeding and to roll out inland aquaculture and apiculture (honeybees)programmes with nutritional values.

Investments that alleviate malnutrition can directly reduce deprivation by loweringpoverty (SDG 1) and enhancing the health and well-being (SDG 2 and SDG 3) ofPapua New Guineans. They also lay the foundation for better educational and skillacquisition outcomes (SDG 4) and, as mentioned above, this is likely to enhanceadult productivity and increase labour force participation directly. This in turn will impact economic growth, employment (SDG 8), and further reduce poverty and deprivation (SDG 1).

¹UNICEF PNG, Country Programme 2018-2022: Nutrition Programme Strategy Note, 2016.; [2] Medium-Term Development Plan (MTDP ) IV2023-2027; [3] PNG Demographic and Health Survey 2016-2018.

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Although educational attainment at household level has increased since 2006, government expenditure on education is relatively low at 1.9 percent of GDP (2018) and 8.7 percent of total government expenditure (2018). Almost one in four women (23 percent) and 13 percent of men aged 15-49 have no formal education. The literacy rate is low, estimated at 61.6 percent in 2020. The urban-rural disparity in education is pronounced at secondary or higher levels – 19 percent of women in urban areas have completed secondary/higher education compared with only six percent of rural women[^1,2].

In the medium-term, the government aims to increase the national literacy rate by 70percent by 2027. It also aims to equip the population with professional, technical and vocational skills. The national policies include the following three elements:

• National Education Policy 2020-2029
• Higher and Technical Education Strategy Implementation Plan 2017-2038
• Technical Vocational Education and Training
  

Equitable education and skills development is an important part of human resourcedevelopment and by itself increases human capability and opportunity and lowersimmediate deprivation (SDG 1). By improving decision-making capacity and improvingcivic attitudes it can improve health and well-being (SDG 3) and lay the foundation forstronger institutions and social cohesion (SDG 16). The most fundamental catalyticeffect is by making people more productive, improving employment opportunities andproducing more output over the medium- to longer-term. Economic development ismost successful when women participate equally in the labour force. Achieving thistarget will empower women (SDG 5) and raise both female labour force participationand economic growth (SDG 8).

¹ UN Common Country Analysis. 2022 update; [2] PNG Demographic and Health Survey 2016-18 and World Bank Development Indicators.

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PNG has faced significant challenges in achieving gender equality and protectingthe rights of women and girls. High rates of gender-based violence, limitedaccess to education and healthcare, and unequal economic opportunities persist.

Investments in SDG Target 5.1 are critical for the country to advance genderequality, human rights, and overall development. Empowering womeneconomically can contribute to poverty reduction, and reducing gender-basedviolence can lead to better physical and mental health outcomes for women andgirls. Addressing gender discrimination can improve access to education for girls,supporting progress toward universal education.

However, while efforts to combat gender-based violence align with peace andjustice objectives, addressing these issues may reveal institutional weaknessesor require significant legal and policy changes, which can be challenging.

Sustained per capita economic growth is an urgent imperative for PNG and is what is required to meaningfully reduce multidimensional poverty. Sustained per capita income increases the likelihood that government can generate more revenue and increase its capacity to invest in human resources and physical infrastructure, thereby creating a pathways to more sustainable and equitable development.

PNG’s economic growth largely depends on the extractive sector, which contributes 28 percent to GDP and 88 percent of exports, followed by agriculture which contributes 19 percent to GDP. [1] The dependence on a few sectors means the country is vulnerable to external shocks, such as commodity prices, and also signifies limited employment opportunities and limited sources of income. The unbalanced nature of growth can often imply jobless growth and the persistence of underemployment and unemployment in large segments of the economy.

Policies focused on sustaining per capita economic growth include the following:

• Diversification into new sectors and development of existing sectors
• Business climate policies, such as privatization, deregulation and free trade
• Better calibrated demand-side policies, including tax, interest rate and exchange-rate
  policies.
  Sustained per capita income growth is likely to positively impact most SDGs (SDG 1-9, 11-12, 16-17) and, as an objective, it is perhaps the most important for enhancing the well-being of the people of Papua New Guinea. However, economic expansion at that rate should be carefully designed not to be carbon reliant – the country’s carbon emissions intensity of GDP is expected to increase at an annual rate of 1.7% due to higher fossil fuel usage[2] (SDG 13, 14, 15). In the near-term rapid growth, if not properly balanced, could exacerbate income inequality (SDG 10).

^[1] PNG National Statistical Office; [2] CO2 emissions intensity of GDP is computed as tonnes of CO2 per $1,000 (2017 PPP). Exlcludes land use change.

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High-quality infrastructure is essential for development. Papua New Guinea is a large country with a predominantly rural and spatially unconnected/remote population. Infrastructure provisions have been inadequate to service the needs of the country and attract additional capital investments. Transport infrastructure has steadily declined, threatening economic development and limiting access to markets and social services for much of the population, resulting in high costs for business activities.

Rapid population growth outpaces investment in health, education, water, sanitation and hygiene (WASH) and waste infrastructure and services in urban, peri-urban and rural areas. The remoteness of many rural communities creates immense challenges for responding to natural disasters effectively, and a lack of local infrastructure and health services can have long-lasting impacts on communities following catastrophic events.

Infrastructure investments in energy, water, roads and hospitals among other spheres, will directly reduce poverty, improve well-being and boost economic growth in the country. Well-targeted and sustinable infrastructure investment will be catalytic because it will serve as a basic input into many types of production and will spur investment – both domestic and foreign (All SDGs). Some trade-offs may occur through deforestation(SDG 15), which can be offset by land use planning, sustainable agriculture, and sustainable consumption and production. Despite lowering the transportation costs, there is a possibility that greater connectivity in the country will increase rural to urban migration and create settlement and social cohesion issues in the short-run (SDGs 6, 10, 16).

^[1] Common Country Analysis 2022 update.; [2] MTDP IV.

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To achieve objectives related to citizens’ security and the rule of law,the Government of PNG, guided by the MTDP IV, aims to increaserecruitment and training of police officers, correctional servicesofficers, rehabilitation and reintegration personnel and court officials.The government will also enhance infrastructure and engage

in capacity-building for all law and justice sector agencies. Followingthe recommendations of the 49th Session of the Human Rights Councilwill also be highly beneficial to the country.

Promoting the rule of law also requires social sector investment,particularly in education. The rule of law will improve citizens’ securityand directly improve their lives and opportunities. It will also improvethe atmosphere for decision-making, including the business climate.Law and order also reduces the cost of transacting and is likely toimprove economic growth. This target will impact all SDGs positivelywith potentially no meaningful trade-offs.

Institutional quality and good governance with accountability and transparency ensure the best possible allocation of resources to serve the best interests of the people of Papua New Guinea.

PNG ratified the United Nations Convention Against Corruption in 2007, and the UN has reviewed its implementation since 2009. The new Independent Commission Against Corruption is also now established. Additionally, Papua New Guinea has ratified six international human rights instruments. World Bank governance indicators, including Voice and Accountability and Government effectiveness, have decreased since 2015. In addition, Papua New Guinea ranks 130 out of 180 countries on Transparency International's Corruption Perceptions Index for 2022. In addition, 96 percent of respondents to the Global Corruption Barometer believe that corruption in government is a significant problem.

the Government has a stated policy to improve accountability, transparency and more effective governance. To achieve higher standards of good governance in the public
service, protect the public’s trust and promote accountability, the government will undertake the following two actions:

• Promote Open Government Partnership initiatives to uphold the principles of good governance
• Strengthen the role of the Independent Commission Against Corruption, the integrity of the Auditor General and the Ombudsman Commission to ensure that the rule of law is upheld, that regular financial auditing is prioritized and that relevant checks and balances are expedited.
  Effective, accountable and transparent institutions lead to better decision-making, better resource allocation and is likely to improve the opportunities and capabilities of all Papua New Guineans. Improved governance is linked to accountable public financial management that will enable improvements in health(SDG3) and education outcomes(SDG 4), reduced poverty (SDG 1) and higher economic growth(SDG 8).