I don't think PNG is a failed State - yet - but it is certainly dysfunctional. Unfortunately the concept of a western Democracy is contrary to the Papua New Guinea culture.
Did a payroll tax error really cause the Public Servant's underpayment of wages? I wonder whether the countries liquidity may have been an issue and wages were intentionally reduced rather than risking pay cheques being dishonoured? Not the first time Government payments were dishonoured.
And the future looks bleak with more civil unrest due to the high possibility the Prime Minister may be dislodged in the near future.