1. Papua New Guinea Country Report for Local Governance & Public Policies
2014 Pacific Local Government Forum, Port Moresby
19 – 23rd May 2014

3. LAND OF THE UNEXPECTED

4. INTRODUCTION Overview Country Profile
Background on Local-level Governments
Constraints & Challenges
Government Initiatives
Conclusion

5. 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)

6. 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

7. 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:
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.

8. The Organic Law Reform Structure
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

9. 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

10. Model LLG & Ward Structures
Responsibilities
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
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
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 WC
WDC

11. Model LLG & Ward Structures Cont..
Responsibilities
Community meetings
Arrangement discussion groups within the community to identify needs
Prepare project proposals including documentation
Support the work of other services providers
Give ideas
Support the work of all service providers
Provide free Labor
Do community work
WDCM
COMMUNITY

12. 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.

13. MAJOR CAUSES OF POOR SERVICE DELIVERY
Poor personnel
Management
Systems & processes
Corruption &
instability
Lack of funding
Poor budgeting
&
implementation
Not Community
Driven
PROBLEMS INTERNAL TO SERVICE DELIVERY AGENCIES
Inappropriate
agency
structures
Poor financial
Management systems
& processes
HIV/AIDS
Cumbersome &
Ineffective inter-
government
Financial arrangements
Lack of accountability
for performance
Poor Economic
Performance
Law & Order
Problems

14. 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.

15. 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.

16. Conclusion PNG is a developing country.
Government has taken the right direction in readdressing the reforms in ensuring services are effectively delivered to all.