Agriculture provides a subsistence livelihood for the bulk of the population.
Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995, Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program, of which the first phase was successfully completed in 1996. A second phase structural adjustment loan will be negotiated in 1997. The structural adjustment program includes liberalization of trade and investment policies, sustainable development of the forestry sector, improvement of government planning capacity and better delivery of public services. New gold and oil projects are under development and planned to begin production in 1997 and 1998 respectively.