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Papua New Guinea Smallholder Agriculture Development Project (Inglês)

The agricultural sector of Papua New Guinea contributes one-quarter of the country's gross domestic product (GDP), while driving much of the rural sector economy. Palm oil is the dominant contributor to the country’s agricultural foreign exchange earnings. In 2005, when the Papua New Guinea Smallholder Agriculture Development Project (SADP) was first considered, oil palm was identified as the best vehicle for an investment project to improve rural livelihoods. Considering the environmental issues associated with the development of new oil palm areas, the International Development Association limited its support to smallholders in already existing oil palm schemes, with a focus on improving productivity and rural access roads in the scheme areas. The SADP aims to increase, in a sustainable manner, the level of involvement of targeted communities in their local development through measures aimed at increasing oil palm revenue and local participation. The SADP is designed to continue to provide economic benefits to the local population while avoiding deforestation and risks to critical habitats. The majority of project funds (70 percent) will be invested in reconstructing existing rural roads. Better roads improve access to critical social services and markets for all smallholders - not just those involved in oil palm - enabling them to engage in a wider range of income earning activities, diversify their incomes and reduce poverty.




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