The Country Operational Strategy 26. The current Country Operational Strategy for PNG, which was discussed by the Board in October 1998, focuses on improved governance, private sector development and improved social indicators. Poor governance and inadequate public sector management are the main development problems. The ADB is focusing on supporting the Government to strengthen financial management and to focus public sector management on achieving outputs Private sector development is key to achieving long-term income earning opportunities.
Improved governance is an important part of the solution.
Constraints to 'informal' market activity are a clear concern. PNG's social indicators remain too low, especially for women. The emphasis must be on rural areas. Again, better governance is key to improved performance. The ADB should continue to lead policy development in the health and urban water supply sectors and to assist infrastructure investments and social service delivery, especially in rural areas.