IN the last five years, the Marape-Rosso
government has laid the groundwork
for a transformative era in Papua New
Guinea’s (PNG) rural economy. Despite
inheriting an economy in disarray and
facing unprecedented global challenges —
including the COVID-19 pandemic,
the Russia-Ukraine conflict, and instability
in the Middle East—the government
has made strategic adjustments,
stabilized the economy and set it on a
trajectory for growth and sustainability.
Economic Growth and Fiscal Stability
The Marape-Rosso administration has overseen significant economic growth, with the Gross Domestic Product (GDP) expanding from K79.6 billion in 2019 to a projected K122.5 billion by 2024. This growth, driven by improvements in the non-resource sector, has created new opportunities for jobs and investments, demonstrating the effectiveness of the government’s economic strategies.
Moreover, the government has managed to keep inflation rates below the global average, easing cost-of-living pressures for its citizens. Fiscal discipline is also evident, with consistent reductions in budget deficits and efforts to tackle foreign exchange shortages. These measures are paving the way for full Kina convertibility by 2027, positioning PNG as one of the top performers globally in budget repair.
The National Agriculture Sector Plan 2024-2033: A Vision for Rural Empowerment Central to the government’s strategy is the National Agriculture Sector Plan (NASP) 2024-2033. This ambitious plan aims to transform agriculture into a vibrant and sustainable sector, contributing significantly to the rural economy. It emphasizes modernizing farming practices, improving market access, and enhancing food security through increased domestic production of staple crops.
The NASP aligns with PNG’s Medium Term Development Plan IV (MTDP IV) and supports
the broader economic goals of the nation.
It also integrates the United Nations’ Sustainable Development Goals (SDGs), focusing
on ending poverty, achieving food security, and promoting sustainable agriculture. From a global perspective, the NASP supports international efforts to create resilient food systems, essential for achieving the UN’s goals related to poverty reduction and sustainable economic growth.
Empowering the Rural Economy:
The Road Ahead
As PNG celebrates these foundational achievements, the road ahead for the rural economy is clear but challenging. The rural economy remains the backbone of the nation, yet it faces unique challenges that require tailored solutions. While the economic growth figures are impressive, they must translate into tangible benefits for the people who rely on agriculture, small enterprises, and informal sectors for their livelihoods.
Investing in infrastructure that connects rural communities to markets, enhancing access to finance for small-scale farmers, and providing training and resources to boost productivity are critical steps forward. The revival of the livestock industry and increased domestic production of essential goods like rice are promising, but more needs to be done.
The government’s commitment to fighting corruption and promoting transparency will be crucial in ensuring that resources are used effectively and reach those who need them most. Social investments, particularly in healthcare, education, and law enforcement in rural areas, must be prioritized to ensure the equitable distribution of economic gains.
Conclusion:
A Future of Sustainable Growth
The Marape-Rosso government has laid strong foundations for the future, especially
for the rural economy, which is vital for the nation’s overall progress. The National
Agriculture Sector Plan 2024-2033, with its alignment to global development goals, offers
a blueprint for sustainable growth that empowers rural communities.
With the right policies and unwavering commitment, PNG can look forward to a future where its rural economy not only participates in but also drives the nation’s economic growth.
As PNG moves into the next phase of development, the government’s focus on
empowering rural communities will be key to achieving long-term prosperity and
sustainability, ensuring that the benefits of progress reach every citizen, particularly
those in the heartlands of the nation.