Oil palm prices may hold up in the medium term, with strong demand from India and China. Yet, like other non-oil commodities, oil palm prices are likely to remain volatile, and to experience a long term relative price decline. (Chapter 3). World prices are not the main problem for small farmers in PNG. Three factors are likely to place a ceiling on the economic benefits for small farmers: (i) small farmers remain at the highly competitive end of a large grower market, with little market power, keeping them as ‘price takers’; (ii) a large monopsony (all
Climate change and migration
This report stems from a simple observation: that since Independence in 1975, Papua New Guinea’s economic and social development outcomes have not matched people’s aspirations or government promises. Indeed, despite the abundance of its riches, PNG lags behind its Pacific neighbours on many important development indicators.