Under the European Development Fund (EDF), the EU provides financial support for development aid, notably under the 11th EDF Pacific Regional Indicative Programme (Pacific RIP) and the 11th EDF National Indicative Programme (NIP).
A key focus of the Pacific RIP is to improve the economic, social and environmental benefits for Pacific through better regional economic integration, and the sustainable management of resources and the environment.
The 11th EDF National Indicative Programme (NIP) details the EU cooperation priorities with PNG for the years 2014-2020. It is based on the global objectives of the EU-ACP cooperation, PNG's own national policies and development strategy and implementation plans, the 'European Consensus for Development' the Busan Partnership for effective development cooperation and guiding principles of the 'Agenda for Change' for greater aid effectiveness and impact.
The PNG Government's development strategies are particularly targeting improved economic development and prosperity in rural areas, which have been lagging behind since Independence and where about 85% of the population lives. All government's sector strategies, and thus EU's support aligned to these, are contributing to this goal.
In particular, the 11th EDF is supporting country reforms in areas that have a strong multiplier effect. For reforms to be successful, five key policy and institutional issues need to be addressed through an integrated approach:
1. Promoting a conducive business environment
2. Ensuring market access and regional integration
3. Investing in backbone infrastructure
4. Establishing sound regulatory and institutional frameworks
5. Investing in human capital
In the NIP, the choice of three intertwined focal sectors, outlined, reflects the need for such an integrated approach to support PNG's structural socio-economic transformation. The 11th NIP helps fight poverty reduction and improves lives in a more equitable and wide ranging approach to sustainable development.
The assistance provided through the EU Delegation focuses on delivering long-term support for Rural Entrepreneurship, Investment and Trade, Water, Sanitation and Hygiene (WASH) and Education.This strategy is in sync with PNG’s development ambitions. (See entries below for more details).