Updated April 4, 2022
Papua New Guinea
Background and Overview
Figure 1. Papua New Guinea in Brief
Papua New Guinea (PNG) lies in a region of the Southwest
Pacific known as Melanesia. It is the most populous Pacific
Island nation, with about 9 million residents belonging to
hundreds of tribes speaking over 800 local languages and
dialects. A central highland zone has peaks that reach
14,793 feet. It gained independence from an Australian-
administered U.N. trusteeship in 1975. PNG shares a land
border with Indonesia and is a member of the Pacific
Islands Forum and the Melanesian Spearhead Group.
Papua New Guinea has been strategically important to the
United States in the past. An estimated 7,000 American
soldiers and airmen died in the New Guinea campaign, and
the nearby Battle of the Coral Sea was a key turning point
in WWII. The United States has played a relatively minor
economic and security role in PNG, although it has some
important stated interests, including U.S. investment in
natural gas production. China’s expanding influence in
PNG and the region is now driving increasing engagement

According to the Asian Development Bank, 37.5% of the
by the United States with PNG, including in coordination
population in 2017 lived below the National Poverty Line.
with Australia and other partners.
PNG also has a serious HIV/AIDS problem and a weak
Politics
health care system. Obstacles to PNG’s development
include poor infrastructure, lack of government capacity,
The Independent State of Papua New Guinea is a
corruption, inadequate supply of skilled workers, and
constitutional monarchy with a parliamentary democracy.
unstable commodity prices. Australia, China, Japan, and
Members of parliament are elected for five-year terms of
Singapore are PNG’s largest export markets. About 13% of
office. The next general election is expected in June 2022.
Papua New Guineans have reliable access to electricity.
James Marape, the son of a Seventh Day Adventist pastor
and a leader of the Huli people of PNG’s highlands, was
U.S. Relations, Assistance, and
made prime minister following the resignation of former
Investment
Prime Minister Peter O’Neill in 2019. Marape led a series
of defections from the O’Neill government
The United States established diplomatic relations with
that prompted
O’Neil
Papua New Guinea in 1975, when PNG became
l’s resignation, and defeated O’Neill’s chosen
independent. According to the Department of State, “The
successor in a subsequent leadership vote. Marape leads the
United States and Papua New Guinea have enjoyed a close
Pangu Party, which holds 23 of 111 parliamentary seats.
friendship, and the U.S. Government seeks to enhance
Marape governs in coalition with the United Resource
Papua New Guinea’s stability as a U.S. partner.”
Party, the National Alliance Party, and others. Another
coalition government is expected following the next
U.S. assistance has sought to support public health to
election. Marape has called for a review of PNG’s resource
combat diseases including HIV/AIDS, malaria, and
laws and key investment projects, and stated he wanted
PNG to be “the richest black Christian nation.”
tuberculosis. U.S. assistance also seeks to build the capacity

and resilience of PNG to adapt to climate change through
Economy
Pacific Islands regional programs. The United States also
supports the Coral Triangle Initiative on Coral Reefs,
Papua New Guinea is richly endowed with natural
Fisheries, and Food Security (CTI-CFF), which aims to
resources, including precious metals, natural gas, timber,
sustain marine and coastal resources in the region, and the
and fisheries. The country’s Gross Domestic Product (GDP)
multilateral South Pacific Tuna Treaty (SPTT). Under the
growth rate is projected to increase from 1.8% in 2021 to
SPTT, the American Tunaboat Association pays licensing
2.7% in 2022. Economic growth will likely remain
fees to gain access to fishing areas in the region, and the
vulnerable to COVID-19 disruptions. Despite its resources,
U.S. government extends $21 million annually in assistance
PNG ranks poorly on the United Nations Development
Program’s Human Development Index, which measures per
to the Pacific Island parties to the agreement.
capita gross national income, life expectancy, and
In 2018, at the Asia-Pacific Economic Cooperation (APEC)
educational attainment (it is 155th out of 187 countries).
Leaders Meeting in Port Moresby, then-Vice President
https://crsreports.congress.gov

Papua New Guinea
Mike Pence and the leaders of PNG, Australia, Japan, and
Guinea among other Pacific Islands countries, includes
New Zealand announced plans to collaborate on improving
H.R. 3524, H.R. 3373, S.1774, and H.R.2967.
access to electricity through the Papua New Guinea
Electrification Partnership, which has a goal of providing
China and PNG established a “Comprehensive Strategic
electricity to 70% of PNG’s population by 2030. In late
Partnership” in 2016. Former Prime Minister O’Neill
2020, U.S. Ambassador to PNG Erin McKee launched a
reportedly met with Chinese President Xi Jinping more than
five-year, $57 million USAID program to contribute to the
a dozen times and was the first Pacific leader to sign on to
PNG Electricity Partnership. In February 2022 ExxonMobil
China’s Belt and Road Initiative (BRI) in 2018. China’s
signed a deal with PNG to develop the P’nyang gas field in
investments in PNG reportedly exceeds $1.9 billion. China
the Western Province, which is to feed Exxon’s liquefied
also has reportedly offered $4 billion in financing for the
natural gas (LNG) plant in PNG as existing resources
construction of a national road network in PNG. Some
deplete.
observers believe China is willing to extend more credit
than some borrowing nations can afford, raising questions
Australia is PNG’s principal provider of foreign assistance
about the development value of some Chinese-financed
and the two nations signed a Comprehensive Strategic and
projects and whether China could use economic leverage to
Economic Partnership in 2020. According to the Lowy
exert political influence over borrowing nations. Prime
Institute, Australia, the United Nations, and Japan are the
Minister Marape has reportedly stated, “We engage the
top three aid grantors to PNG while the Asian Development
Chinese Government as long as it’s fair and friendly to us
Bank, China, and Japan are the top three lenders to PNG.
on our terms.” He added, “Whether it be China, New
Zealand, Australia, Philippines, Indonesia, I intend to
Bougainville Autonomy
maximize foreign relations in the economy especially trade
Between 1988 and 1997, an armed secessionist movement
and commerce, not only politics.”
in the island province of Bougainville, located in eastern
PNG, battled the PNG Defense Forces, resulting in 15,000-
The United States, Australia, and others are enhancing their
20,000 deaths. In 1997, a cease-fire was brokered and, in
engagement with PNG through increased support to
1998, the PNG government and Bougainville leaders signed
infrastructure and capacity building, among other efforts. In
a peace agreement. A regional truce monitoring group
April 2022, the U.S. announced the participation of PNG in
consisting of peacekeepers from Australia, New Zealand,
the Strategy to Prevent Conflict and Promote Stability. A
Fiji, and Vanuatu, and United Nations observers helped to
January 2022 report stated that Australia will provide a
enforce the peace while an interim government was
$580 million loan and grant package for upgrades and
established. In 2001, the PNG government and
refurbishment of several priority ports in PNG, including on
Bougainville leaders agreed upon the establishment of the
Manus Island north of the PNG mainland. The United
Autonomous Bougainville Government in 2005 and the
States first established a base on Manus during WWII.
terms of a referendum on independence. A 2019
Some observers view Australia’s assistance as an effort to
referendum voted in favor of independence. The vote was
counter China’s influence in PNG and the region, and have
not binding. It remains for the PNG parliament to pass
described the move to develop Lombrum, initiated in 2018,
implementing legislation for independence to be granted to
as seeking to head off Beijing’s interest in Manus Island.
Bougainville. Bougainville President Ishmael Toroama has
reportedly stated that Bougainville expects to begin
Climate Change and the Environment
transfers of powers starting in 2023 and to have full
PNG is environmentally biodiverse with habitats as varied
independence by 2027. A December 2021 report indicated
as tropical heaths and grasslands, cloud forests, savannas,
that Marape and Toroama confirmed that a political
mangroves, swamp forests, and diverse marine
settlement or independence for Bougainville will be
environments. It also has glaciers and mountains over 5,000
achieved between 2025 and 2027. In February 2022, the
meters high, as well as rare species including birds of
Bougainville government announced that an agreement had
paradise, tree kangaroos, and flightless cassowaries.
been reached with land owners to reopen the Panguna mine.
USAID has worked with PNG to try to protect PNG’s rich
The reopening of the Panguna cooper mine, one of the
biodiversity, which is increasingly under threat. PNG’s
largest in the world until it was shut down in 1989, could
forests and animals are being threatened by mining,
potentially provide a key source of income for
logging, and land clearing for palm oil plantations. Between
Bougainville. At one point, the mine reportedly accounted
1972 and 2002, an estimated 24% of PNG’s forests were
for two-fifths of PNG’s GDP.
either cleared or degraded by logging. Between 2000 and
2013, PNG lost 0.5% of its rainforest annually due to
China and PNG
logging and conversion of forest to croplands. Despite
China’s strategic interest in Pacific island countries has
ambitious goals, reforestation efforts have reportedly been
been growing in recent years, as have its naval capabilities.
limited. The United States supports Papua New Guinea’s
In March 2022 China signed a Framework Agreement with
efforts to protect biodiversity, recently announcing a $19.6
the Solomon Islands, the first such agreement China has
million project to protect important ecosystems in northern
signed in the region, which would allow China to conduct
Papua New Guinea.
military and intelligence operations in the country. This
contributes to growing concern by some in the United
Bruce Vaughn, Specialist in Asian Affairs
States, Australia, and the region about China’s expanding
Thomas Lum, Specialist in Asian Affairs
influence and access in the region. In the 117th Congress,
legislation related to U.S. engagement with Papua New
IF11255
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Papua New Guinea


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https://crsreports.congress.gov | IF11255 · VERSION 3 · UPDATED