Dynamics and tensions of implementing agencification reforms: Experiences of District Development Authorities in Papua New Guinea

Agencification reforms aimed at reducing centralised control and enhancing efficiency by creating arm's-length autonomous agencies. This paper examines the creation of District Development Authorities (DDA) in Papua New Guinea (PNG). DDAs are typical agencification reforms seeking to empower local governments with greater administrative and financial authority. Using a principal-agent framework, the experiences of the two DDAs in East New Britain, Kokopo, and Rabaul highlight some of the key challenges and strategies in implementing agencification reforms. Findings of the study revealed that the DDAs in East New Britain adapted the new system while retaining some aspects of the older system, which helped in navigating through the structural changes and the multiple principal-agent relationships. As a key component of agencification process, these DDAs have also started engaging in revenue generation activities. Such economic activities have the potential to shift the dominant principal-agent relationship from the national to the local level.