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LOCATED BETWEEN THE Coral Sea and the south Pacific Ocean, the Independent State of Papua New Guinea is made up of a group of islands that include the eastern half of the island of New Guinea as well as the outlying islands of Manus, New Britain, New Ireland, and Bougainville. After being under the administration of Australia throughout most of the 20th century, Papua New Guinea was granted independence in 1975. Generally the country is politically stable, but over 20,000 people were killed in a secessionist revolt on the island of Bougainville that lasted from 1987 to 1997.

Natural resources that include gold, copper, silver, and natural gas are not fully developed because of difficulties involved in accessing the rugged terrain and managing the high costs of development. However, mining provides 72 percent of export earnings. As part of an agreement with Australia, Papua New Guinea receives $240 million annually. While the economy has improved in recent years, the government faces a formidable task as it continues efforts toward privatization and attracting investors. Approximately 85 percent of the labor force are engaged in subsistence agriculture. Although the exact rate is unknown, unemployment is high on the islands. The shaky economy is frequently affected by weather-related events that include earthquakes, mudslides, tsunamis, floods, droughts, and killer frosts. Volcanoes are also active on the island.

Papua New Guinea is a low-income, moderately indebted nation with a per capita annual income of $2,200 and a poverty rate of 37 percent. Some 27 percent of islanders are malnourished. Available resources are unequally divided, and the poorest 20 percent of the population subsist on 4.5 percent while the richest 20 percent share 50.9 percent.

Life expectancy is low in Papua New Guinea, and the population is relatively young. However, life spans are increasing. Between 1980 and 2000, life expectancy increased from 51 to 56 years for males and from 52 to 58 years for females. Women generally outlive men by more than five years. The median age in Papua New Guinea is 21.09 years. More than 38 percent of the population are under the age of 14, and 3.8 percent live to see the age of 65. Islanders have a 19 percent chance of dying before they turn 40.

HIV/AIDS is of growing concern in Papua New Guinea. In 2003 it was estimated that the prevalence rate had reached 0.6 percent. Around 16,000 islanders have contracted HIV/AIDS, and 600 have died from the disease or its complications. Health is further threatened by the fact that 58 percent of the people lack access to safe drinking water, and 82 percent lack access to proper sanitation. Rural residents are more likely than urban residents to lack these basic necessities. Islanders face a very high risk of food- and water-borne diseases, and dengue fever and malaria present a threat in some areas. There are only six physicians for every 100,000 residents on the island, but 80 to 94 percent of the people have access to affordable essential drugs.

Infant mortality is high in Papua New Guinea, but it has substantially improved over the last decades. Between 1970 and 2003, infant mortality decreased from 106 to 69 deaths per 1,000 live births. Among children under the age of five, mortality fell from 147 deaths per 1,000 in 1980 to 93 deaths per 1,000 in 2003. About 35 percent of all children under the age of five are malnourished, and 11 percent of infants are underweight at birth. Immunization rates for children from birth to 23 months old have remained stagnant for at least a decade, with percentages ranging from the high 40s to the low 70s.

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