Papua is one of the most resource-rich regions in Indonesia and host to some of the world's most spectacular biodiversity. It is also one of the least developed and sparsely populated areas in the country, with the United Nations Development Programme (UNDP) estimating that 60 percent of the Papuan people live in poverty.

Under the Special Autonomy Law for Papua (Law 21/2001), local governments have received increased responsibility for managing higher revenue streams to deliver better quality governance and services to their constituents.

USAID and BP Berau Ltd., one of the world's largest energy companies, have combined public and private resources and expertise to create the Bird's Head Development Initiative. As described in the June 2006 Memorandum of Understanding between USAID and BP Berau Ltd., this initiative consists of three integrated programs: the Bird's Head Governance Initiative, the Bird's Head Education Initiative and the Bird's Head Health Initiative.

The Bird's Head Governance Initiative is a three-year, $3 million development assistance program supported through a public-private partnership between USAID and BP and implemented by USAID's Local Governance Support Program (LGSP). It aims to assist local governments in West Papua to responsibly manage resources in a transparent, responsive and sustainable manner and, in so doing, improve basic service delivery to their constituents.

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