Australia and Papua New Guinea have a close relationship. A change in government in Australia and the recent re-election of Sir Michael Somare provide an opportunity for reassessment and readjustment to restore a more productive interaction between the two countries.

This report, written by Ronald May, considers PNG government policies over the last decade which aimed to improve economic performance and governance. It considers in-depth the Australia-Papua New Guinea relationship and suggests ways in which the relationship could be enhanced.