ABSTRACT
This last primary case-country is also the most complex one: mineral (oil-and metalsderived) wealth did contribute to low deforestation in PNG, but this was interwoven with many other trends. First, because of mining investments, capital flight and other factors, a smaller share of this wealth entered the country – and out of the part that did, the import content was high, further reducing demand effects. As a unique feature, PNG’s mineral boom caused very little urbanisation, due to both income redistribution and a series of structural rigidities and non-market factors (land-tenure, crime rates, legal changes, etc.). The core effect did raise food imports, but more so in the small urban sector than in isolated rural environments. Forest degradation through timber extraction was partially held back by an overvalued currency until the 1990s. As in Gabon, the total neglect of road-building was highly instrumental in keeping forest conversion down.
