PACIFIC ISLANDS REPORT
Pacific Islands Development Program/East-West Center
PNG PLANS ‘WEALTH FUND’ TO MANAGE ECONOMIC
MELBOURNE, Australia (Radio Australia, June 1, 2011) – Papua New Guinea's Government says the country risks high levels of inflation and currency appreciation, if it does not manage its current resources boom well.
Australia's High Commissioner to PNG Ian Kemish has told Radio Australia's Pacific Beat program, one way to manage the boom is to establish sovereign wealth funds.
"Papua New Guinea has taken very careful advice from Australia in particular a set of in-prinicple decisions about the establishment of sovereign wealth funds," he said.
"In part for the management of the potential downside, in part in order to ensure that the revenue is used in a way that benefits Papua New Guinea's long term development."