The, general concern of this essay is with the development priorities pursued by Papua New Guinea as it approaches independence. As a basis on which to suggest some important tasks for the second five year development plan soon to be introduced, Chapters One and Two of this study survey P.N.G.ls current stage of economic development, her relationship with Australia, and the impact of the 1967 five year plan. Chapter Three draws out some of the tensions created by this plan, which in essence pursued a simple goal of aggregate growth, with only slight commitment to regional balance, broadening the base of the monetary sector, and indigenous management and ownership of the country's developing resources. In correction of this neglect, it is suggested that an important part of the next plan should be a programme of careful import substitution, which would not only complement the expatriate managed export drive, but also make favourable impacts on the above political and social aspects of economic development.
It is in this context that Chapter Four introduces the particular concern of this essay, the contribution which could be made by a local sugar industry to P.N.G. IS economy. However the precise impact of the industry depends on whether a conventional large scale vacuum pan mill or a series of much smaller and labour intensive open pan mills is constructed.
Chapter Five surveys the technique of cost benefit analysis as a suitable aid in evaluating the relative efficiency merits of the alternative technologies, and Chapters Six and Seven apply this Paretian-based technique, as well as out- lining the relative contributions of the two projects to non-Paretian deve1opnlent goals. Chapter Eight concludes that whilst either technique would generate a potential Pareto improvement, an industry based on many open pan mills would be clearly better suited to P.N.G.ls resource endowments and development needs. However because much of this techniques advantage pertains to social and political aspects of the development process, the precise priority to be attached to investment in a sugar industry would depend to a large extent on a more broadly political analysis than is attempted here.