Foreign Investment New Guinea
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Papua New Guinea (PNG) is blessed to be endowed with great wealth in natural resources and a diversity of cultures.

It is one of the few countries in the Asia-Pacific Region that has managed to preserve much of its cultures and biodiversity through PNGís long history of sustainable community lands tenure. Its location and its rugged mountainous terrain have also contributed to a slower pace of resource exploitation.

However, this "last frontier" Pacific Island nation is increasingly under pressure to subject its wealth of natural resources to commercial exploitation, which will undoubtedly result in serious ecological problems.

Weigh the benefits of foreign investment in Papua New Guinea against the costs to the country as a whole. Should investment continue to be encouraged. If so, what restrictions should be imposed?

Questions to consider

What is the attitude of under-developed countries to foreign investment?

  What benefits accrue to under-developed countries from foreign investment?

What are the costs to Papua New Guinea of foreign investment in mineral wealth? Are any of these avoidable?

How might foreign investment be controlled so as to minimise damage and maximise benefit to the  home country


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