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During the last three decades, Papua has undergone significant economic growth however the number of people living in poverty and in severe poverty has also increased. There is also a huge income-welfare gap between people in rural and urban areas.
The largest contributors to the economy of Papua are mining and agriculture although both play vastly different roles. Mining provides most of the income for the for the province but only uses about 0.6 percent of the workforce whereas agriculture accounts for 75 percent of the workforce but only generates about 19 percent of the GRDP due to low productivity. Most of the agriculture is traditional farming and hunter gatherer systems. There are also more intensive forms of cultivation that produce cash crops such as coconut, cacao, cloves, nutmeg, cashews, palm oil and rubber but very little of this includes or benefits native Papuans.
The local economy in towns is generally dominated by migrants and there are few native Papuans who run or own their own business. This is due to both lack of opportunities and lack of capacity in business management. In more rural areas economic development is again severely limited by capacity but also poor transport facilities and access to credit.
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