Papua New Guinea Country Report for
Local Governance & Public Policies
2014 Pacific Local Government
Forum, Port Moresby
19 – 23rd May 2014
LAND OF THE UNEXPECTED
INTRODUCTION
Overview
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Country Profile
Background on Local-level Governments
Constraints & Challenges
Government Initiatives
Conclusion
PNG Country Profile
• PNG is the largest island in the Pacific with
a population of more than 6 million
• Has 22 Provinces excluding NCD & ABG
• Has 89 Districts, 319 Local-level
Governments with 6, 186 Wards.
. Has approximately 465,000 square kilometers land mass
• Has 800 plus languages & cultures
• Shares borders with Indonesia, Australia & Solomon Islands
• Gained Independence on 16 September 1975
(without shedding of blood)
GOVERNMENT SYSTEM
• PNG adopted Westminster model of
government
• Unicameral single legislative body (one house)
• Has 3 tiers of government, National, Provincial
and Local-level Governments
Background on the Organic Law on
Provincial Governments & Local-level
Governments
The Organic Law was passed by Parliament in July
1995
• The Organic Law Reforms was aimed at:
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Improving the delivery of services to rural areas
Increasing participation in government at community level
Increasing funding to local governments
Relocating public servants from urban to districts
Decreasing the number of elected politicians
Reduce mismanagement or misuse of funds
Reforms brought important changes to the powers, structures, roles and
responsibilities of governments at all levels
LLGs differ from each other in terms of sizes of wards
They have greater responsibilities including preparing 5 Year Development Plans,
Develop Annual Budgets and ensure services are delivered.
The Organic Law Reform Structure
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Established 18 Provincial Administrations
Created 89 District Administrations
Established 319 LLGs
Established 18 JPP&BPC and 83 JDP & BPC (625) (now
replaced with DDD)
• Increased Ward Councilors numbers to 6, 186
• Established 6,186 WDCs with some (32, 000)
members
• Increased the number of Appointed Members in
Provincial & LLG Assemblies (700)
• TOTAL LEADERSHIP POSITIONS = 37, 000
Local-level Governments
• LLGs are governed by the Organic Law on Provincial
Governments & Local-level governments and Local-level
Government Administration Act
• Organic Empowers LLGs to make Laws- Section 44
• Organic Law Empowers LLGs to Collect Taxes - Section 89
• LLGs rely heavily on annual funds from National
Government through Budget Process inform of
Administrative support, Development, Town & Urban
Service Grants, & Economic Grants
• LLG head taxes not collected: people unwilling. Other Taxes
only appropriate in the Urban LLGs
• No other form of revenue base/Borrowings by LLGs
• LLG Budgets passed in LLG Assemblies and funds released
by the Minister of Finance and funds are then release by
the Minister of Finance to District Treasuries
• LLG Audits Cells are established and operating in Provinces
Model LLG & Ward Structures
LLG
WC
WDC
Responsibilities
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Receive and approve Ward development plans
Determine LLG development objectives and priorities
Recommend annual budget
Formulate the overall LLG Development program and its 5
year rolling expenditure plan
Monitor implementation of projects in all Wards
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Provide leadership
Initiate the preparations of the Ward Activity plan
Present Ward Activity plan to LLG for endorsement
Coordinate implementation of Ward Projects
Take ownership of Ward projects
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Seek the views of the community in the formulation of a
Ward Activity plan
Oversee project work
Mobilize Community for improving services
Maintain peace and harmony
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Model LLG & Ward Structures Cont..
Responsibilities
WDCM
COMMUNITY
• Community meetings
• Arrangement discussion groups within the
community to identify needs
• Prepare project proposals including
documentation
• Support the work of other services providers
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Give ideas
Support the work of all service providers
Provide free Labor
Do community work
Constraints & Challenges
Since the Organic Law reforms, constraints were experienced by
Local level Governments;
- Government Budget under stress, difficult to maintain
adequate services,
- Too many councilors result in high overhead cost for
staff, administration & infrastructure,
- Lack of capacities,
- Lack of funds to implement LLG Plans,
- Lack of revenue base for LLGs to generating income for
sustainability,
- Unwillingness of Public servants to move to Districts &
LLGs,
- Lack of accountability of leaders, and
- Services still not reaching down the people especially at
rural areas.
MAJOR CAUSES OF POOR SERVICE DELIVERY
Corruption &
instability
Poor personnel
Management
Systems & processes
Poor budgeting
&
implementation
Inappropriate
agency
structures
Lack of funding
Not Community
Driven
PROBLEMS INTERNAL
TO SERVICE
DELIVERY AGENCIES
Poor financial
Management systems
& processes
HIV/AIDS
Cumbersome &
Ineffective intergovernment
Financial arrangements
Lack of accountability
for performance
Law & Order
Problems
Poor Economic
Performance
Government Initiatives
The Government is aware that the Organic Law has not been fully implemented and is;
• Currently reviewing the Organic Law to strengthen both the Administrative and
Political structures with the view to improve services delivery.
• pursuing improved functioning of sub-national government through a number of
initiatives spearheaded by different departments such as the establishment of
DDAs in all districts,
• Revived the National Monitoring Authority as the agent established under the
Organic Law to monitor the implementation of the reforms in country. .
• Re-emphasis on Medium Term Development Strategy is a priority and remedial
measures have been undertaken by the Government to ensure that improved
services are delivered to the people
• The Public Sector Reform Management Unit (PSRMU) now Office of Vision 2050,
of the Department of Prime Minister is administering the Government Strategic
Plan for supporting public sector on the Public Sector as a key development
objective, the improved efficiency and performance of Provincial and local-level
governments in the delivery of core services.
Continue..
• Addressed the issue of decline in the flow of funding and increased
the level of funding to Local Governments
• Carried out District Roll-out programs to bring financial services out
to the districts
• Administers a number of programs seeking to provide funds
directing to the districts level (District Roads Improvement
Programs, and District Service Improvement Program)
• Developed new inter-government financing arrangement.
• Strengthening the functioning of the sub-national government
through Provincial Performance Improvement Initiatives (PPII)
which is supported by AusAID.
• Revived the National Monitoring Authority as the agent established
under the Organic Law to monitor the implementation of the
reforms.
• PNG Urban Local Government representing the professional
interests of LLGs (both rural and LLGs) who involved in other
respective programs.
Conclusion
• PNG is a developing country.
• Government has taken the right direction in
readdressing the reforms in ensuring services
are effectively delivered to all.