Supporting the Growth of Private Enterprise: The Role of Sub-National Governments in Papua New Guinea

Abstract

PNG is pursuing sustained, broad-based economic development through land reforms within the framework of its National Land Development Program. This paper argues however, that land reforms alone cannot achieve the aspired development, particularly for the growth of land-based private enterprises as other business-related reforms are necessary. Using secondary World Bank Doing Business data for PNG, this study examines the country’s regulatory practices for Starting a Business and Registering Property. The study finds that despite high-level government commitments to improve the overall business climate, the country still suffers from a high-cost business environment including at the Local-Level Government level, where enterprise growth is hampered by inconsistent, opaque and archaic regulations. Some lessons on business regulatory experiences from Fiji are drawn to help enlighten the policy reform process in PNG. The study also provides a breakthrough for the coverage of Pacific small island states in Doing Business-related research.