Background: The eastern half of the island of New Guinea - second largest in the world - was divided between Germany (north) and the UK (south) in 1885. The latter area was transferred to Australia in 1902 which occupied the northern portion during World War I and continued to administer the combined areas until independence in 1975. A nine-year secessionist revolt on the island of Bougainville ended in 1997 after claiming some 20,000 lives.
Location: Southeastern Asia group of islands including the eastern half of the island of New Guinea between the Coral Sea and the South Pacific Ocean east of Indonesia
Natural hazards: active volcanism; situated along the Pacific 'Rim of Fire'; the country is subject to frequent and sometimes severe earthquakes; mud slides; tsunamis
Geography Note: shares island of New Guinea with Indonesia; one of world's largest swamps along southwest coast
Environment Current issues: rain forest subject to deforestation as a result of growing commercial demand for tropical timber; pollution from mining projects; severe drought
Administrative divisions: 20 provinces; Bougainville Central Chimbu Eastern Highlands East New Britain East Sepik Enga Gulf Madang Manus Milne Bay Morobe National Capital New Ireland Northern Sandaun Southern Highlands Western Western Highlands West New Britain
Legislative branch: unicameral National Parliament - sometimes referred to as the House of Assembly (109 seats 89 elected from open electorates and 20 from provincial electorates; members elected by popular vote to serve five-year terms)
Judicial branch: Supreme Court the chief justice is appointed by the governor general on the proposal of the National Executive Council after consultation with the minister responsible for justice other judges are appointed by the Judicial and Legal Services Commission
Political parties and leaders: Black Action Party [Paul WANJIK]; Bougainville Unity Alliance or BUA [Samuel AKOITAI]; Christian Democratic Party [Dilu GOMA]; Hausman Party [Waim TOKAM]; League for National Advancement or LNA [leader NA]; Liberal Party [Rabbie SAMAI]; Melanesian Alliance or MA [Fr. John MOMIS]; Melanesian Labor Party [Paul MONDIA]; Milne Bay Party [Simon MUMURIK]; Movement for Greater Autonomy [Stephen POKAWIN]; National Alliance or NA [Michael SOMARE]; National Party or NP [Paul PORA]; Papua New Guinea First Party (includes People's National Congress or PNC [Simon KAUMI] and Christian Country Party [Avusi TANO]); Papua New Guinea United Party or Pangu Pati [Chris HAIVETA]; People's Action Party or PAP [Ted DIRO]; People's Democratic Movement or PDM [Iario LASARO]; People's National Alliance [leader NA]; People's Progress Party or PPP [Michael NALI]; People's Resources Awareness Party [leader NA]; People's Solidarity Party [Kala SWOKIM]; People's Unity Party or PUP [Alfred KAIABE]; United Party or UP [Rimbiuk PATO]; United Resource Party [Masket IANGALIO]
International organization participation: ACP APEC AsDB ASEAN (observer) C CP ESCAP FAO G-77 IBRD ICAO ICFTU ICRM IDA IFAD IFC IFRCS IHO ILO IMF IMO Intelsat Interpol IOC IOM (observer) ISO (correspondent) ITU NAM OPCW Sparteca SPC SPF UN UNCTAD UNESCO UNIDO UPU WFTU WHO WIPO WMO WTrO
Flag description: divided diagonally from upper hoist-side corner; the upper triangle is red with a soaring yellow bird of paradise centered; the lower triangle is black with five white five-pointed stars of the Southern Cross constellation centered
Economy overview: Papua New Guinea is richly endowed with natural resources but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits including oil copper and gold account for 72% of export earnings. Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995 Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program of which the first phase was successfully completed in 1996. In 1997 droughts caused by the El Nino weather pattern wreaked havoc on Papua New Guinea's coffee cocoa and coconut production the mainstays of the agricultural-based economy and major sources of export earnings. The coffee crop was slashed by up to 50% in 1997. Despite problems with drought the year 1998 saw a small recovery in GDP. Growth increased to 3.6% in 1999 and may be even higher in 2000 say 4.3%.