Abstract

This study explores informal sector activities in Port Moresby and Lae, Papua New Guinea (PNG). It explains the reasons for their rapid growth during the 1980s and 1990s and examines responses to the Informal Sector Development and Control Act 2004. It uses both qualitative and quantitative methodology including participant observation, semi-structured interviews, focus group interviews, unstructured interviews and questionnaire surveys. The study found that the uneducated had lower participation rates in the informal sector than school leavers. The main activities were selling of betel nut, lime, mustard, cigarette and store goods. The major recommendation is that the PNG Government reviews the Control Act to address concerns of the vendors and the residents of Port Moresby and Lae.