New direction may follow Papua New Guinea election

Subject

The 2017 general election in Papua New Guinea.

Significance

A two-week long general election in Papua New Guinea (PNG) ends on July 8. The election campaign has not gone as well as hoped for the incumbent government headed by Prime Minister Peter O’Neill, due to concerns about economic management, corruption and service delivery.

Impacts

• There is some risk, though small, that an O’Neill win would prompt local unrest or calls for regional independence.
• Cancelling plans to host the APEC summit could become a symbol for moving spending priorities to education, health and infrastructure.
• The need for budgetary support from the IMF or World Bank might encourage more market-oriented policies.