Papua New Guinea (PNG) is frequently labeled as a “resource-rich” nation, a term commonly found in government communications, media pieces, and comments from international bodies. Prime Minister James Marape highlighted the country’s favorable location, mentioning in early 2025 that PNG is ideally situated near significant markets in Asia.
While PNG boasts substantial reserves of gold, copper, oil, and gas, the real question remains: what does this label mean for the average citizen? Despite accounting for approximately 27% of GDP from the resource sector, comparing PNG’s wealth to that of heavily resource-dependent countries like Saudi Arabia can be misleading. High reliance on natural wealth does not necessarily translate into equitable wealth distribution, leaving many citizens without basic services.
The expectation for substantial benefits from resource extraction is often met with harsh reality. The World Bank ranks PNG 41st globally in terms of resource rents, but when adjusted for population, it falls to 36th, translating to a modest $1,089 in resource rents per person per year—roughly $2.75 daily. This is close to lifting individuals above the global poverty line, yet it hardly constitutes the “vast riches” one might envision.
Moreover, this income is unevenly distributed among private companies, government agencies, and landowners, often leading to conflicts over benefits. Addressing the challenges associated with resource-intensive economies, PNG faces a dilemma: while the resources could significantly improve national and local living standards if effectively managed, the current reality tells a different story.
Past government decisions, such as the recent controversial “grand shopping list” of ambitious projects—including an F1 racing track—have drawn criticism. Analysts argue that these proposals distract from pressing issues like healthcare and education, raising concerns about whether resources are being managed in a way that benefits society as a whole.
Additionally, there are grounds for cautious optimism regarding PNG’s economic recovery. Reports indicate projected economic growth of about 4.5% in 2024, improved access to foreign exchange, and efforts to enhance foreign investment, which could lead to better long-term stability. Collaborative government and private sector efforts may help leverage PNG’s resources effectively to yield tangible benefits for its citizens.
The path forward for PNG seems to require a balanced approach, prioritizing substantial investments in infrastructure, education, and healthcare alongside its natural resource management. This multifaceted focus may harness the potential of its resources while fostering sustainable development and addressing immediate societal needs.
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