Papua New Guinea has pleaded with major aid donor Australia not to withdraw aid or intervene directly in its affairs following an Australian report suggesting the country was "on the brink" of collapse.
Appearing before the Australian Senate committee on Friday, PNG's top public servant downplayed the dire assessments, instead calling PNG a "vibrant, colourful democracy".
Chief Secretary Joshua Kalinoe urged Australia to continue its $300 million a year aid program to its former colony.
Kalinoe also denied the PNG government - which is considering punishing the report's author - was trying to hide from its problems.
"Papua New Guinea is not on the brink of collapse as submitted by those before me," Kalinoe told the committee. "It is not a failing state. On the contrary, it is a vibrant, colourful democracy in a young, developing country."
The report by the Centre for Independent Studies suggested PNG was incapable of rescuing itself from rampant crime and corruption. "What country in the developing world has not faced these problems?" Said Kalinoe.
He said any significant reduction in the Australian aid program would place the PNG budget under "great stress".
However, Kalinoe agreed Australia may have to become more actively involved in some areas of aid. "On a more sombre note, there is a need to examine the mechanisms through which aid has been delivered. "However, Papua New Guinea would be most concerned if the interventionist model proposed (in the report) was applied."
Kalinoe's speech came as PNG's Parliamentary Privileges Committee prepares to consider the future of Mike Manning, the report's co-author.
PNG politicians were outraged that Manning - one of PNG's most respected economic analysts - had been so blunt about the country's problems.
The anger led to Prime Minister Sir Michael Somare referring Manning to the Privileges Committee for investigation and possible punishment.