One important objective of the reform program was to rebuild the state owned institutions through legislative changes so as to avoid political influences, and to privatise the public enterprises that continue to operate inefficiently. Substantial progress has been made under the reform program to strengthen transparency, accountability and independence in these institutions.
The reforms included the financial sector, whereby structural reforms at the Bank of Papua New Guinea were considered necessary to achieve macroeconomic stability over the medium term. A new Central Banking Act (CBA 2000), which became effective on 16 June 2000, enhanced the independence of the Central Bank in the formulation and conduct of Monetary Policy.