Part II: 1989–2003: The nineties: Volatility, crisis and reform

We find ourselves in 1995 perching on a landscape of simmering volcanoes. Essential social services are starved of operating funds; the Government is sending companies broke through late and lack of payment of bills; the war still rages in Bougainville; there has been a surge of crime, particularly in urban areas; there is evidence of corruption at the highest level.

—Shadow Minister for Finance and Planning Masket Iangalio (1995, 3)

The transformation has been both massive and amazing. After being left with a major fiscal and external crisis, we have stabilised both the budget and the external situation.

—Deputy Prime Minister and Minister for Finance and Planning Chris Havieta (1995, 51)