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Papua New Guinea

Informal Economy Participants (PNG0004)



Action Plan: Papua New Guinea Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active


Lead Institution: o Department of Community Development, Youth & Religion (DfCD & R) o Investment Promotion Authority (IPA) o Department of Provincial & Local Level Government Affairs DPLLGA

Support Institution(s): • National Capital District Commission (NCDC) • City /Town Authorities • National Youth Commission • Small & Medium Enterprises Corporation (SMEC) • Department of National Planning & Monitoring (DNPM) • Department of Commerce, Trade and Industry • Consultative Implementation & Monitoring Council (CIMC) • Institute of National Affairs (INA) • Transparency International PNG (TIPNG) • Youth organizations at National and Sub-national levels • Existing vendor Associations • Women Groups • Churches • Development Partners • People with special needs/disability

Policy Areas

Capacity Building, Gender, Local Commitments, Marginalized Communities, Private Sector, Public Participation, Social Accountability

IRM Review

IRM Report: Pending IRM Review

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Pending IRM Review

Relevant to OGP Values: Pending IRM Review

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review


Status quo or problem addressed by the commitment: Although 85% of the population is employed in the informal economy, there is lack of sufficient recognition by government, hence, establishing a voice mechanism such as a network of vendor associations is critical due to lack of communication and understanding between city councils/authorities and the sector participants. Studies undertaken by CIMC in 1999 and by the National Research Institute (NRI) in 2001 on the constraints to informal economy in urban and rural areas indicated that although informal economy including agriculture contribute about 23% to the GDP, it continues to be marginalized by government. Informal economy in PNG is seen with a lot of skepticism and tainted with negative perception by government and the public. There is absence of a grievance mechanism or governance process to provide opportunities for participants to channel their concerns relating to maintaining health and safety standards, environment protection, accessing government support for micro level businesses, understanding and working within laws of the land, consumer protection and others.; Main objective: The National Informal Economy Policy Framework 2011-2015 and the National Informal Sector Development & Control Act, ! 2004 clearly call for Government to provide avenues for dialogue I with informal economy participants on issues and concerns affecting them. However, at present these aspirations are not fulfilled both at national and sub-national levels. Therefore, the proposed Voice mechanism for Informal Economy aims to: 1. Develop Economy a National participants. Strategy to give "voice" to Informal Economy participants.; Brief description of commitment: The main objective described above is to create communication I networks, associations and coalitions for participants to express their concerns. Similarly, relevant state entities including city authorities should recognize the mechanism as an important tool I for inclusive development. It would further strengthen sector coordination; enhance capacity, increase participants production and income levels.; OGP grand challenge addressed by the commitment: OGP Grand Challenges: 2 and 4 (increasing public integrity and creating safer communities).; Relevance: Briefly describe the way in which this commitment is relevant to further advancing OGP values of access to information, public accountability, civic participation, and technology and innovation for openness and accountability. (A detailed description of these values is available in the OGP Values Guidance Note.): This commitment is relevant to OGP values of: 1. Civic Space 2. Open Government, and 3. Public Accountability. It gives informal economy participants the opportunity to shape and projected take and ownership heard. of It policies capacitates that them provide to for their demand voice for to their be I needs to be met by Government at various levels.; Ambition: Briefly describe the intended results of the commitment and how it will either make government more open or improve government through more openness.: The intended results are two pronged: (1)Informal Economy: • Government being more open and receptive to concerns raised by informal economy participants; • Informal economy participants are organized and have access to information and assistance; (2)Government: • Improvement in compliance to health standards; • Improvement to law and order situation; • Development of SME Sector; • Government is transparent in management and delivery of public resources & services to informal economy participants.


Open Government Partnership