Papua New Guinea is home to around 6.7 million people, with approximately 87 per cent living in rural areas. Five influential studies conducted over a 30 year period suggest a strong spatial component to disadvantage and show relatively little change in the poorest areas over time. Isolation, lack of income earning opportunities and geography appear...

In 1986, Mosely first drew attention to an apparent paradox in the performance of international aid. Microeconomic data from evaluations of aid financed projects showed a majority of projects were successful, whereas macroeconomic data from regressions of aid on growth were discouraging. The paradox, if real, implied that the aggregate impact of aid was less...