Investors will face more scrutiny in Papua New Guinea

Subject

The political outlook for Papua New Guinea under a new government.

Significance

Legislators have elected former Finance Minister James Marape as prime minister. He replaces Peter O’Neill, who resigned ahead of a no-confidence vote. Marape has promised to “take back the economy” and a “change of direction” in handling major resource extraction projects to achieve better returns for the government and people.

Impacts

• The change in leadership may result in better governance and more consultation on policy formulation.
• Dealing with disgruntled landowner groups poses real problems for resource project management.
• The country will remain heavily dependent on foreign investment in resource projects, particularly mining, oil and gas.