This article examines the relationship between ethnicity, democracy and development in Papua New Guinea. Drawing on an earlier co-authored study, it shows that a key cause of disparities in provincial development in Papua New Guinea is variation in the levels of ethnic diversity between provinces. Even when alternative explanations such as size, government performance and resource endowments are factored in, more diverse provinces have significantly lower development levels than more homogeneous ones. Increasing levels of ethnic diversity are associated with lower overall levels of development, in part because ethnic divisions encourage rent-seeking behaviour, leading to sub-optimal outcomes for the country as a whole.
|Pacific Economic Bulletin
|Published - 2004