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Papua New Guinea

How do we achieve sustained growth? Through human capital, and East Asia and the Pacific proves it

Michael Crawford's picture
Students at Beijing Bayi High School in China. Photo: World Bank


In 1950, the average working-age person in the world had  almost three years of education, but in East Asia and Pacific (EAP), the  average person had less than half that amount. Around this time, countries in  the EAP  region put themselves on a path that focused on growth  driven by human capital. They made significant and steady investments in  schooling to close the educational attainment gap with the rest of the world. While  improving their school systems, they also put their human capital to work in  labor markets. As a result, economic growth has been stellar: for four decades  EAP has grown at roughly twice the pace of the global average. What is more, no  slowdown is in sight for rising prosperity.

High economic growth and strong human capital accumulation  are deeply intertwined. In a recent paper, Daron Acemoglu and David Autor explore  the way skills and labor markets interact: Human capital is the central  determinant of economic growth and is the main—and very likely the only—means  to achieve shared growth when technology is changing quickly and raising the  demand for skills. Skills promote productivity and growth, but if there are not  enough skilled workers, growth soon chokes off. If, by contrast, skills are abundant and  average skill-levels keep rising, technological change can drive productivity  and growth without stoking inequality.

Cheers, NZ: How New Zealand and the World Bank are changing lives in the Pacific

Kara Mouyis's picture




New Zealand has a long history of supporting its close neighbors in the Pacific, both in times of disaster and emergencies, and to help improve the lives of many thousands across the region.

On Waitangi Day, the national day of New Zealand, we take a look at three key World Bank projects in the Pacific, and how New Zealand’s support has been integral to making them happen.

Papua New Guinea: Improving Water and Sanitation in the land of the unexpected

Karl Galing's picture
Coming together to improve water and sanitation: Villagers in the remote Torricelli Mountains in West Sepik, Papua New Guinea transporting water tanks to their community (Photo: Tenkile Conservation Foundation, Lumi)

I have been traveling in and out of Papua New Guinea for almost over two years to help tackle the country’s water and sanitation challenges.
 
I’m constantly surprised by the complexity and cultural diversity of this country. It’s like trying to solve a deep mystery, with a surprise always ahead of you. No wonder they call this ‘the land of the unexpected’.

Papua New Guinea missed its Millennium Development Goal target for water and sanitation. More than 60% of the country’s population (4.6 million people) have no access to safe drinking water and improved sanitation. In over two decades since 1990, the increase in access to safe drinking water has been miniscule (6%) while improved sanitation coverage even dropped by 1% in 2015. Sadly, PNG has the lowest water and sanitation access indicators among the 15 developing Pacific Island nations.

Papua New Guinea: Improving literacy in Bougainville, one step at a time

Tom Perry's picture
Students from Aravira Primary School in central Bougainville, Papua New Guinea on their walk to school - which for some, takes up to four hours
Students from Aravira Primary School in central Bougainville, Papua New Guinea on their walk to school - which for some, takes up to four hours 

After a two-hour drive from the nearest main road, our 4WD can travel no further; me and my travelling companions will have to trek the rest of our journey to Aravira Primary School in Bougainville on foot. As we set off, a group of students from the school emerge from the bush in front of us. They smile, extend their hands in welcome and immediately offer to take my backpack. 

I politely refuse, yet within minutes I regret my decision to turn down help. As we move through the long grass along the mountain ridge, the heat which a few minutes ago was manageable is now unbearable. I’m pouring in sweat. My backpack feels 10 kilograms heavier, and the ground beneath me feels as if I’m stepping onto ice. Ten minutes into our journey, I lose my feet, slip into a crevice, and land face-first in the nearest bush.

‘I matter’: giving unemployed young Papua New Guineans a second chance

Tom Perry's picture

Young people account for almost half of Papua New Guinea’s population and comprise a large part of the urban poor. In the capital, Port Moresby, an increasing number of young people are leaving school without the necessary skills for entry-level jobs.

The Urban Youth Employment Project (UYEP) provides disadvantaged young people (aged between 16 and 35) in Port Moresby with life skills and employment training to increase their chances of finding long-term employment, also the motivation to make a fresh start in life. To help meet immediate economic needs, the project is also providing temporary employment opportunities.

Malnutrition denies children opportunity and stunts economic development

Axel van Trotsenburg's picture

Nearly 50 years ago, books such as Asian Drama: An Inquiry Into The Poverty Of Nations, by the Swedish economist and Nobel laureate Gunnar Myrdal, offered a dire prediction of famine and poverty for the region in coming decades.

How can rapidly aging East Asia sustain its economic dynamism?

Axel van Trotsenburg's picture
Also available in: 中文
Panos Agency


In the last three decades, East Asia has reaped the demographic dividend. An abundant and growing labor force powered almost one-third of the region’s per capita income growth from the 1960s to the 1990s, making it the world’s growth engine.
 
Now, East Asia is facing the challenges posed by another demographic trend: rapid aging. A new World Bank report finds that East Asia and Pacific is aging faster – and on a larger scale – than any other region in history.
 
More than 211 million people ages 65 and over live in East Asia and Pacific, accounting for 36 percent of the global population in that age group. By 2040, East Asia’s older population will more than double, to 479 million, and the working-age population will shrink by 10 percent to 15 percent in countries such as Korea, China, and Thailand.
 
Across the region, as the working-age population declines and the pace of aging accelerates, policy makers are concerned with the potential impact of aging on economic growth and rising demand for public spending on health, pension and long-term care systems.
 
As the region ages rapidly, how do governments, employers and households ensure that hard-working people live healthy and productive lives in old age? How do societies in East Asia and Pacific promote productive aging and become more inclusive?
 

The gas and mining industries take on gender-based violence in Papua New Guinea

Katherine C. Heller's picture
Photo: Tom Perry/World Bank

For many, the connection seems strange at first. What do gas and mining have to do with women’s economic and social empowerment, let alone gender-based violence? The reality is that in many extractive industries areas money from extractives flow predominantly to men. This can lead to adverse results: men have more say over how benefits are used; men have more access to related jobs, and the associated increase in available cash allows them to take second wives (which can in many cases cause violence in the home between wives); some men leave their families for jobs in the industry, while some use cash for alcohol or prostitution. 

These changes and stresses – also present when the benefits from mining don’t materialize as expected - can increase the risk of family and sexual violence, especially in fragile countries like Papua New Guinea (PNG).   

We must prepare now for another major El Niño

Axel van Trotsenburg's picture
Also available in: 中文
El Niño is back and may be stronger than ever.
 
A wooden boat is seen stranded on the dry cracked riverbed of the Dawuhan Dam during drought season in Madiun, Indonesia's East Java province.  October 28, 2015 © ANTARA FOTO/Reuters/Corbis



The latest cyclical warming of Pacific Ocean waters, first observed centuries ago and formally tracked since 1950, began earlier this year and already has been felt across Asia, Africa and Latin America.

Weather experts predict this El Niño will continue into the spring of 2016 and could wreak havoc, because climate change is likely to exacerbate the intensity of storms and flooding in some places and of severe drought and water shortages in others.

El Niño’s impacts are global, with heavy rain and severe flooding expected in South America and scorching weather and drought conditions likely in the Horn of Africa region.

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