The PNG government has taken the first steps to establish a medium term development strategy for the next four years as part of its economic recovery plan.
The Prime Minister Sir Michael Somare says the strategy will target the 80 percent of Papua New Guineans who live in rural areas, through projects designed to develop an export driven economy.
The National reports Sir Michael saying the strategy will ensure that funds are directed at programmes aimed at developing the agriculture, forestry and fisheries industries.
He blames overspending by previous governments for the high inflation, rising interest rates, the falling kina and the accelerating debt levels being experienced by the PNG economy .
He says the new strategy will emphasize PNG's economic strength as a rural based society.
