ABSTRACT
This case study shows the difficulties of forging a national identity and creating effective state institutions in an archipelago state of enormous ethnic and linguistic diversity. Papua New Guinea faces no major international security threats. The former colonial power, Australia, bowed out peacefully, but left behind a population inadequately educated to staff modern state institutions. Although the country has an extensive endowment of natural resources, these have not produced general prosperity. Rather, they have raised the exchange rate, making it more difficult for other sectors of the economy to develop. State services, elementary schooling, the road system, hospitals, and policing do not extend to all parts of the country. Most political parties and political leaders have a very narrow regional following. Although regular and highly contested elections have been held since independence, and despite a free and active press, corruption has increased and violent crime is endemic.
