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Papua New Guinea is enjoying yet another mineral price boom which is underpinning a recent expansion in manufacturing and services. But with a difference. Unlike in previous booms, prices of most cash crops have also been surging, with significant parts of the rural economy benefiting. However, it is not clear that there is much expansion of smallholder productive capacity. The fundamental constraints continue to exist--transport, communication and financial services, as well as the poor environment for formal sector investment in agricultural services, logistics and processing. The real test of Papua New Guinea's management of the boom will be how it translates the surge in earnings into investment to address these problems. [ABSTRACT FROM AUTHOR]