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.
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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?
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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