The Samaritan's dilemma: The effectiveness of Australian foreign aid to Papua New Guinea

There is increasing recognition in the development literature that foreign aid can have malign effects on the recipient country, especially in failing states. This paper considers the impact of Australian aid on macro-level development in Papua New Guinea. After a review of official evaluations of the effectiveness of aid, the potential sources of 'aid failure' and 'aid accountability' in Papua New Guinea, it is argued that the current Australian macro-level aid program needs to be reassessed. In particular, the focus, coherence and impact on civil society of Australian aid should be modified in order to minimise its debilitating effects.