This report analyzes the distribution ofincome, constructs a poverty profile, and looks at theextent to which the poor have access to basic services inPapua New Guinea. The analysis is based on data collectedduring a national household survey in 1996, and, data on arange of socioeconomic indicators, were collected nationallyamong urban, and rural households, within the country'sfive major regions. This shows that the distribution ofconsumption is highly uneven, since real per capitaconsumption level is over eight times higher than thepoorest quartile, with marked disparities in consumptionlevels. A detailed review on the distribution of access tobasic services, such as education, health care, ruralinfrastructure, and utilities is presented, suggesting theunequal access to these services further accentuates theeffects of unequal income distribution. The county'ssafety net system is examined, revealing this system allowsfor income transfers from members of a particular"wantok" - informal network based on ethnicity,language, etc. - to needy members of the same wantok.Although this system adapted relatively well to changingsocioeconomic environments, it does not appear to improveincome distribution in rural areas. Finally, the reportconcludes that to effectively alleviate poverty, additionalanalysis needs to be undertaken, to include the factorswhich hinder productivity, and income.