The dissertation is about the transition to capitalism in Papua New Guinea. It seeks explanations for why only atruncated form of capitalism is apparent there today, more than a century after the capitalist mode of production was first introduced, and why traditional forms of social, political, and economic organization remain of such enormous importance. Drawing theoretical inspiration from neo-Marxist theories of underdevelopment, it argues that the persistence of Melanesian modes of production in conjunction with the capitalist mode defines a situation of underdevelopment that has unfortunate social consequences for most Papua New Guineans. The dissertation includes analyses of the characteristics and dynamics of Melanesian modes of production, the history of imperialism in Papua New Guinea, and the articulation between pre-capitalist and capitalist modes of production in this part of the periphery.