The National Economic and Fiscal Commission in Papua New Guinea has completed a review and has declared the provincial and local government system has failed the country.
The commission says that since 1995 when parliament passed the Organic Law on provincial and local level governments to replace the previous system, service delivery has worsened.
It says the system is not achieving a balance between the priorities of the different levels of government and says there is confusion over the roles and functions between the different tiers.
The Commission also says the fact that capacities differ from district to district is not accomodated because a one size fits all formula is applied across the board.
The commission, headed by Dr Nao Badu, was directed by the Morauta government in November 2001 to undertake the review.