Papua New Guinea politics will enter brittle stability
Tuesday, October 2, 2018
Subject
The outlook for politics and the economy in Papua New Guinea.
Significance
Prime Minister Peter O’Neill has consolidated his government since winning elections in mid-2017. However, economic growth in Papua New Guinea (PNG) has slowed, forcing the government to rein in its spending plans. A 19-billion-dollar liquefied natural gas (LNG) project has not generated the expected fiscal windfall, with most of the revenue still needed to repay the cost of the earlier infrastructure investment.
Impacts
- Links with China are likely to strengthen after President Xi Jinping's visit next month.
- O'Neill will consolidate his position through the courts and police.
- Bougainville cannot afford independence unless it can negotiate with mining firms to reopen the Panguna copper mine.
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