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World Bank and ADB Support Papua New Guinea’s Financial Management Reforms
Port Moresby, Papua New Guinea - The Asian Development Bank (ADB) has launched a significant initiative to strengthen financial management and governance in Papua New Guinea. As part of the World Bank-backed Government Structural Reform Program, the ADB is working with the country to improve its fiscal management and public sector financial management reforms.
Identifying Gaps and Weaknesses
A recent diagnostic review carried out by the ADB identified several gaps and weaknesses in Papua New Guinea’s accounting and auditing systems. The review found that the country’s current financial management framework was not aligned with international standards, leading to a lack of transparency and accountability in public finance.
Objectives and Scope
The objectives of the study were:
- To assess the capability and capacity of Papua New Guinea’s institutions to provide efficient and effective accounting and auditing support
- To determine existing accounting and auditing standards
- To identify weaknesses and propose corrective options
- To develop reference materials for international standards
- To determine the level and type of assistance needed by the country
Country Case Study and Workshops
The study involved an in-depth analysis of Papua New Guinea’s current financial management system, identifying gaps and weaknesses, and proposing alternative options to remedy these. The findings were disseminated through in-country workshops, which brought together a cross-section of stakeholders to discuss the research findings and establish ways to move forward.
ADB Focus on Financial Governance
The ADB has identified financial governance as a critical component of its operational strategies in Papua New Guinea, focusing on poverty reduction and public sector financial management reform. The RETA complements other ADB initiatives aimed at improving financial management and governance in the country.
Papua New Guinea: A Nation with Unique Characteristics
Located in the southwestern Pacific Ocean, Papua New Guinea is a country of significant cultural and linguistic diversity. With over 700 languages spoken across the country, Melanesian pidgin is widely spoken throughout, while hiri-motu is used in some parts of the south coast. The capital city, Port Moresby, lies on the south coast.
Statistical Overview
Papua New Guinea gained independence from Australia in 1975 and has since become a constitutional parliamentary democracy. With a population of over 4 million people, the country faces significant challenges in terms of governance, poverty reduction, and financial management reform.
The World Bank and ADB-supported Government Structural Reform Program aims to address these challenges by strengthening financial management and governance in Papua New Guinea. By improving accounting and auditing standards, enhancing transparency and accountability, and promoting good governance practices, the program seeks to promote sustainable economic development and reduce poverty in the country.