Nadi, Fiji – A two-day workshop to review four cluster pilots undertaken in Papua New Guinea, Samoa, Tonga, and Vanuatu ended on Tuesday with participants clearly outlining the desired future direction of cluster development in the Pacific. The Regional Cluster Initiative Project was funded by Business Climate Facility (BizClim), a programme of the European Union and the ACP Secretariat, funded through the 10th EDF (European Development Fund). The project was allocated €932,000 for the four countries.

The creation of the PNG LNG project highlights the next major challenge facing Papua New Guinea: how to grow the non-mining sectors. Economist Dan Gay says growing domestic demand, the internet and service industries can help overcome inherent problems. Whatever the Pacific’s been doing until now, it hasn’t been working. Overall economic growth in Papua New Guinea, leaving aside the LNG project, has been lacklustre. And the same applies in other Pacific states. World Bank

The outlook for the mining sector has reached a new five-year low and confidence levels are likely to take years to recover, according to Newport Consulting’s new mining outlook. Despite some optimism last year, the latest report found mining leaders troubled by falling demand and a tough regulatory environment. An overwhelming 93% of leaders were not optimistic about their growth prospects for the next 12 months, up more than 50% on last year. A further

Two respected trade and industry leaders have urged the government to boost investment in agriculture and non-mining sectors, warning a failure to act soon could induce ‘the dreaded Dutch Disease’. The head of the trade division of the Department of Trade, Commerce and Industry, Max Rai, wants the government to provide incentives to attract foreign investment in industries other than mining. Former Ambassador Rai was a keynote speaker at the annual National Development Forum, organised

National Roads Authority and Planning Minister discuss state of PNG roads, National Airports Corporation releases commercial tenders at POM, and Cue Energy puts PNG assets on market. Your weekly digest of the latest business news. The CEO of National Roads Authority Ponege Poya says the NRA is unable to undertake any significant improvement work for national highways due to lack of maintenance funding from the government despite budget submissions and requests. Meanwhile, National Planning Minister

Independent Australian organisations, the Australian Fair  Trade and Investment Network (AFTINET) and AID/WATCH, Australia’s aid  monitor, have voiced serious concerns about the PACER-Plus Free Trade  Agreement currently being negotiated between Australia, New Zealand  and Pacific Island Countries. Both organisations assert that  PACER-Plus will leave Pacific Island Countries disadvantaged, and  ignores calls from Pacific Islanders who claim that this agreement is  not in their interest. PACER-Plus negotiations began in 2009 with the agreement introduced as  different,