The Need and Criteria for the Sectoral Programming of Australian Aid to Papua New Guinea
The challenges posed by high balance of payments deficits that manifest as high saving-investment gaps in Papua New Guinea (PNG) are analysed. Foreign aid can play play a pivotal role to fill these balance of payments or savings-investment gaps. Australia as the largest donor of foreign aid to PNG is concerned about the need for the effective disbursement or programming aid. In this paper we demonstrate that using sectoral (bunch-criteria) based on the semi-input-output model provides a better framework for evaluating the effective performance of aid than programming aid to projects.
Quantification of Sectoral Development Prospects in Papua New Guinea Using Tinbergen and Rasmussen Criteria
The paper critically reviews the development strategy that is embodied in the "eight aims" of the national plan enuciated for the development of post-independent economy of Papua New Guniea (PNG). An algebraic exposition of the semi-input-output criterion is the applied to identify the attractiveness of tradable sectors that qualify for further grooming on the basis of their comparative advantage in trade. The semi-input criterion is also applied for project appraisal and its mechanics are demonstrated using the palm oil project as a case study. The key sectors of the PNG economy using dominant linkage and spread effects are identified as potential candidates for development in the framework of the semi-input-output methodology.
The Use of Qualitative Information in Macro-Economic Policy Analysis
The majority of macro-economic policy models takes for granted that conflicts among objectives can be assessed by means of a tradeoff analysis. Such tradeoffs imply that sacrifices and benefits of various impacts of decisions can be measured on a cardinal scale, so that a conventional macro-economic utility or welfare analysis can be applied.