Turning Resource Wealth into Jobs Key to PNG’s Development Ambitions

John Mayers
Mar 25
2 min read

The World Bank’s press release, "Turning Resource Wealth into Jobs Key to PNG’s Development Ambitions," (March 23, 2026) outlines a roadmap for Papua New Guinea (PNG) to transform its natural resource wealth into sustainable economic growth and human capital.

The summary of the key findings and recommendations is as follows:

1. The Challenge: A Disconnect Between Wealth and Results

Despite a rapidly expanding resource sector where production nearly doubled between 2013 and 2024, PNG has struggled to translate this into broad-based prosperity.

Low Revenue Share: Resource revenues averaged only 1.9% of GDP during that decade.
Human Capital Crisis: Nearly half of PNG's children suffer from stunting, and education outcomes are among the weakest globally. A child born in PNG today is expected to reach only 42% of their potential productivity.

2. Ambitious National Targets

The report notes that the government has set bold goals that depend on significant fiscal reform:

Creating one million jobs.
Growing the economy to K200 billion by 2030.
Achieving a balanced budget by 2027.

3. Three Strategic Priorities

To meet these goals, the World Bank identifies three urgent pillars for reform:

Maximize Resource Returns: Secure a higher share of revenue from the resource sector and broaden the tax base to reduce volatility.
Improve Spending Efficiency: Strengthen fiscal systems to ensure public funds are spent transparently and effectively, focusing on results rather than just allocations.
Invest in People (Human Capital): The Bank estimates PNG needs to increase annual spending by approximately 4.5% of GDP to fund smarter education, expanded primary healthcare, and a national social safety net.

4. Economic Diversification

The review emphasizes that the government alone cannot create all the necessary jobs. It calls for:

Moving beyond the extractive sector to diversify the economy.
Leveraging the private sector to improve access to finance and reduce investment risks.
Focusing on the "resource-to-human-capital" conversion as a long-term development strategy.

Conclusion

The World Bank concludes that PNG is at a "pivotal crossroads." While the country has immense potential, the window to maximize resource returns is limited by global energy transitions and market volatility. Success will require "focused actions" to turn natural wealth into stronger services and a more productive workforce.

Read actual article here: https://www.worldbank.org/en/news/press-release/2026/03/23/turning-resource-wealth-into-jobs-key-to-png-s-development-ambitions-world-bank