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Official Name Solomon Islands
Land Area - 27,556 sq km, spread
over 922 islands. Six main islands
are Guadacanal, Malaita, Choiseul, New Georgia, San Cristobal (Makira), and Santa Isabel. Located between latitudes 5-12º South. Borders
Papua New Guinea to the west and Vanuatu
to the southeast. Lies 3,500km north west of Wellington
Population - 530,000 (2006 est)
Capital
City - Honiara
Religions
- Christian
Official Languages -
English (official), Solomon Islands Pidgin, plus around 100 other local dialects
Currency - Solomon Island Dollar (SBD)
Exchange Rate - NZ$1=$4.54 SBD (24 December 2008)
EEZ - 1,630,000 sq km
*Source: Household and Expenditure Survey 2005/2006
Political System - Westminster-style
parliamentary democracy
National government -
Prime Minister Dr Derek Sikua formed the "Coalition for
National Unity and Rural Advancement" Government in December 2007
National legislature -
Unicameral, 50-member National Parliament
Last
election - 5 April 2006
Next
election due - April 2010
Head
of State - Governor-General, HE Sir Nathaniel
Waena, representing Queen Elizabeth II
Head
of Government - Prime Minister, Hon Dr Derek Sikua
Key Ministers & Office Bearers -
Deputy Prime Minister and Minister of Rural Development and Indigenous Affairs
Hon Fred Fono
Minister of Public Service
Hon Milner Tozaka
Minister of Foreign Affairs and External Trade
Hon William Haomae
Minister for Development Planning and Aid Coordination
Hon Steve Abana
Minister of Finance and Treasury
Hon Snyder Rini
Minister of Police, National Security and Prison Services
Hon Samuel Manetoali
Minister of Justice and Legal Affairs
Hon Toswell Kaua
Minister of Education and Human Resources
Hon Matthew Wale
Minister of Health and Medical Services
Hon Johnson Koli
Minister of Commerce, Industry and Employment
Hon Francis Billy Hilly
Minister of Culture and Tourism
Hon Seth Gukuna
Minister of Agriculture and Livestock
Hon Selwyn Riumana
Minister of Lands and Survey
Hon Martin Magga
Minister of Infrastructure and Development
Hon Stanley Festus Sofu
Minister of Communication and Aviation
Hon Varian Lonamei
Minister of Forestry
Hon Job Dudley Tausinga
Minister of Environment, Conservation and Meteorology
Hon Gordon Darcy Lilo
Minister of Fisheries and Marine Resources
Hon Nollen Leni
Minister of Mines and Energy
Hon Edward Huniehu
Minister of Provincial Government and Institutional Strengthening
Hon David Day Pacha
Minister of Home Affairs
Hon James Tora
Minister of Women’s, Youth and Children’s Affairs
Hon Peter Tom
Minister for National Unity, Reconciliation and Peace
Hon Sam Iduri
GDP - SBD$3264 million (2007)
GDP per capita - SBD$6735 (2007, estimate only)
Real GDP Growth - 10.3% (2007), 5.5% est. (2008)
Source: Solomon Islands Ministry of Finance & Treasury 2009 Budget Strategy and Outlook
Exports - SBD$1.286 billion (f.o.b.) (2007)
Principal Export Destinations: China (51%), South Korea (9%), Thailand (7%), EU (7%), Japan (6%). 2008
Imports - SBD$1.469 billion (f.o.b.) (2007)
Principal Import Sources: Singapore (28%), Australia (26%), Pacific Island Countries (9% mostly Fiji and PNG), South East Asia (7% excl Singapore). (2008)
Source: Solomon Islands Government Diagnostic Trade Integration Study Draft
Balance of Payments - SBD$127.6 million (2007)
Trade Deficit - SBD$182.9 million (2007)
Inflation - Approx. 10% (2007 annual), 23.5% as at September 2008
Source: Central Bank of Solomon Islands unless otherwise stated
NZ Exports (FOB) - NZ$17.9 million (year ending June 2008)
Main Exports - Iron, steel, aluminium, machinery and sugars
NZ Imports (CIF) - NZ$2.24 million (year ending June 2008)
Main Imports - Wood and wood products scrap metals
Source: Statistics New Zealand
Solomon Islands' first contact with Europeans was in 1568, when the Spanish explorer Mendana visited the islands. Whaling boats and traders began to visit the archipelago during the nineteenth century, followed closely by missionaries. In the 1860s "blackbirding" began, with a large number of Solomon Islanders recruited, sometimes by force, to work on sugar plantations in Queensland and Fiji.
In 1893, the British Government established a protectorate over the eastern group of islands with Germany controlling most of the west. Following the Anglo-German agreement of 1899, the British protectorate was extended to all areas now part of the nation of Solomon Islands, while Buka and Bougainville became part of German New Guinea.
Solomon Islands was the scene of some of the bloodiest land, sea and air battles of World War II from 1942 to 1945 and the capital moved from Tulagi (in the Florida Islands, Central Province) to Honiara (adjacent to the strategic Henderson Airfield on Guadalcanal Province) in 1944.
There were some indigenous demands for self-rule after World War II. Britain granted Solomon Islands internal self-government in 1976, followed by independence on 7 July 1978. At Independence, Solomon Islands joined the Commonwealth.
An election for the unicameral, 50-member Solomon Islands National Parliament is held every four years with Members elected by a simple majority of votes. There are frequently a large number of candidates in each electorate, all often winning relatively small proportions of the votes in a particular electorate. Party structures are weak, with no party registration requirements, and members move relatively easily between parties. This combined with other political structures and practices results in a fluid political environment. The Prime Minister is elected by MPs and forms a Government.
In November 2007 12 Government MPs including 9 Ministers defected from the Government to join the Opposition. Following protracted legal and constitutional debates and several more defections (in both directions), the Governor General called Parliament on 13 December, and Prime Minister Sogavare lost a motion of no confidence. On 20 December, Hon Dr Derek Sikua, a first-term MP and the former Minister of Education who had defected to the Opposition, was elected by MPs as Prime Minister. PM Sikua chose a Cabinet consisting of a combination of former Government MPs and former Opposition MPs. PM Sikua now leads one of the numerically strongest Governments ever with between 40 and 42 MPs with Government and only 7 with the Opposition.
Prime Minister Sikua’s government has set itself an ambitious political agenda and worked on a number of new policy and legislative initiatives during its first year in office in 2008, including a political integrity and stability policy framework, the establishment of a Truth and Reconciliation Commission and the development of a Medium Term Development Strategy.
The next legislative election is set to take place in 2010.
The desire for a greater degree of governance to be held at the local level, rather than the central level has been a continuing feature of Solomon Islands political life since independence. The post-coup Government of 2000/2001 undertook a review of governance and prepared a bill to cater for the establishment of a federal system of Government, through amendment to the Constitution. Governments elected since have all reiterated an intention to shepherd through constitutional reforms needed to establish a more decentralised system.
Building on several rounds of consultation at the village, tribal and provincial levels, over the past decades, a Constitutional Congress has been established to prepare a final draft constitution that can be put, eventually, to a larger more representative “people’s convention” for debate and agreement.
Solomon Islands is a member of many regional and international bodies, including the United Nations, the WTO, the Commonwealth, the Pacific Islands Forum and many other regional bodies, as well as the sub-regional Melanesian Spearhead Group. It has formal diplomatic relations with a number of European, Asian, American and other Pacific Island countries. The Solomon Islands hosts the Forum Fisheries Agency, based in Honiara.
New Zealand, Australia, Britain, Papua New Guinea, Japan, Republic of China (Taiwan) and the European Commission all have diplomatic representatives in Honiara. The United States has a resident consular agent. Solomon Islands has diplomatic missions in Canberra, Port Moresby, Taipei, at the UN in New York and at the European Commission in Brussels.
Between 1998 and 2003 Solomon Islands experienced a period of destabilising conflict and turmoil now often referred to as “the tensions”. This conflict had its roots in a complex mix of development and ethnic issues but came to be expressed in intermittent conflict between groups of loosely aligned ethnic factions from two peoples of Solomon Islands – those from Malaita and those from Guadalcanal. Over time, these factions increasingly used their military power to threaten and raid the coffers of the state. As a result by 2003 the state had become weakened to the point at which it could no longer function.
Outside efforts to address the situation were first made through Commonwealth Secretariat mediation in 1999 and the deployment of a Multinational (Fiji and Vanuatu) Police Peace Monitoring Group. In 2000, following a partial peace settlement between the combatants an unarmed Australia/New Zealand “International Peace Monitoring Team” was established to monitor the settlement.
Elections were held in December 2001, and Sir Allan Kemakeza was elected Prime Minister. He and his Cabinet made efforts from early 2002 to address law and order problems, to develop credible economic policies, and to include the wider community in discussions to address the major problems facing Solomon Islands. While the immediate conflict between Malaitans and Guale settled down, however, inter-factional disputes arose and the factions turned their attention to raids on the Government’s finances, backed up by their possession of high-powered weapons. The prevailing atmosphere of lawlessness was exacerbated by the compromised nature of the Solomon Islands Police, with some senior officers maintaining links with criminal gangs. The Government, paralysed by fear, and compromised by its own connections and dependence upon certain of the armed groups, was reduced to rubber stamping outrageous claims for 'compensation' from parties claiming to have been wronged. Money destined for provincial programs and normal services such as hospitals and schools was squandered by the thieves and thugs virtually ruling Honiara and people at village level found themselves without even the most basic of services.
The Solomon Star is the main daily newspaper. The National Express and Island Sun are both weekly newspapers.
Solomon Islands Broadcasting Corporation (SIBC) “Radio Hapi Isles” provides a national service on AM (and increasingly FM). Commercial radio covers about two thirds of Solomon Islands. Australian and New Zealand shortwave Pacific radio programs can also be received.
A local television news service, One News, operates a one hour daily news bulletin on a VHF channel.
Between 1998 and 2003 Solomon Islands experienced a period of destabilising conflict and turmoil now often referred to as “the tensions”. This conflict had its roots in a complex mix of development and ethnic issues but came to be expressed in intermittent conflict between groups of loosely aligned ethnic factions largely from two peoples of Solomon Islands – those from Malaita and those from Guadalcanal. Over time, these factions increasingly used their military power to threaten and raid the coffers of the state. As a result by 2003 the state had become weakened to the point at which it could no longer function.
The Solomon Islands Prime Minister wrote to the Australian Prime Minister in 2003 requesting assistance. Following extensive consultation in the region, Pacific Forum Foreign Ministers agreed in Sydney on 30 June 2003 that the extent of the problems facing Solomon Islands called for a concerted regional response as envisaged in the Biketawa Declaration. The Solomon Islands Parliament unanimously approved the Facilitation of International Assistance Act to enable RAMSI’s presence in the country and the first troops, police and civilians arrived in July 2003.
RAMSI’s first priority was to restore law and order, and to re-establish essential financial and other systems that had collapsed. Led by police with military support, law and order stabilised quickly. A nationwide gun amnesty resulted in the collection of 700 high-powered military-style weapons and ammunition, militant leaders were arrested and charged, and corrupt Solomon Islands police officers were removed from the force.
RAMSI’s focus has evolved in response to Solomon Islands’ needs, and includes capacity-building efforts in a range of sectors that are necessary to create a peaceful, well-governed and prosperous Solomon Islands. The Mission is working to create an enabling environment that will allow Solomon Islanders to rebuild their society and economy – there is no intention that RAMSI will “do everything”. RAMSI is founded on three key pillars of assistance:
To achieve aims in the three pillars, RAMSI comprises a 280 strong police component (the Participating Police Force, PPF, with representatives from all 15 Forum countries), a military component (the Combined Task Force, CTF, with personnel from Australia, New Zealand, Tonga and Papua New Guinea), and a large civilian component which includes around 150 in-line personnel and advisers placed in key agencies such as the Ministry of Finance and the justice system.
Although Australia is by far the greatest contributor to RAMSI, followed by New Zealand, all 16 Pacific Island Forum countries contribute personnel and other support to RAMSI. The Mission is coordinated in Honiara by a Special Coordinator and team of “RAMSI Principals” comprising the leaders of the development cooperation, police and military components. New Zealand provides a Deputy Special Coordinator and Fiji an Assistant Special Coordinator. Other Principals are Australian, reflecting the leading role that Australia plays in RAMSI. RAMSI has its own website, www.ramsi.org.
In mid 2007 a Pacific Islands Forum Taskforce undertook a review of RAMSI and provided a set of recommendations for increasing the regional character of RAMSI and to strengthen and regularise consultation and coordination between RAMSI and the Solomon Islands Government. The Taskforce recommendations were endorsed by Forum Leaders in October 2007 and have now been endorsed by the Solomon Islands Government. The Solomon Islands Parliament Foreign Relations Committee is also undertaking a review of RAMSI and is due to report in May 2009.
New Zealand has been a major contributor to RAMSI since its establishment. Thirty-five New Zealand Police personnel and 46 New Zealand Defence Force troops are currently deployed to Solomon Islands under RAMSI. A number of New Zealand civilian personnel, including the Deputy Special Coordinator, are also serving with the Mission. NZAID primarily provides support for the Mission’s economic reform and justice work, including advisors under RAMSI in the Solomon Islands Ministry of Finance and Treasury. It also provides funding for the NZ Police contingent to RAMSI. NZAID will be funding a major RAMSI programme of assistance in finance and revenue and a project through RAMSI to build over 40 new houses for the police in various locations.
Since the end of the tensions and the arrival of RAMSI in mid 2003 there has been a significant turnaround in the economy - due mainly to positive developments in the global economy, improvements in law and order, increased donor assistance and private sector resilience. The economy continues to grow at a reasonable rate. But government spending also continues to increase and the population continues to grow. The effects of the current global economic crisis combined with an expected downturn in forestry income during 2009, widening trade deficit and the increased government spending mean that Solomon Islands faces a potentially difficult period ahead.
At 10.3%, 2007 saw the highest GDP growth of two decades in Solomon Islands matched by record highs in exported log volumes (the major driver of growth). According to the Central Bank of Solomon Islands,that growth is predicted to have slowed to 5.5% for 2008 - and is predicted to fall again to 4% during 2009. Reasons stated include declines in logging revenue, in the value of commodities such as cocoa, palm oil, fish and copra, both in terms of global prices and declining demand, decline in the flow of foreign direct investment to Solomon Islands, and the rise in the value of the SBD against other countries resulting in a fall in the real value of development assistance.
Forestry products are Solomon Islands’ main export and in 2007 forestry sector income represented 16% of GDP and two thirds of all export earnings. Logging is beyond four times the sustainable rate, and is predicted to fall away from 2009. It is expected that natural stocks will be depleted entirely by 2013. There are only two plantations of relevant size in Solomon Islands and they do not contribute significantly to overall export earnings at this stage.
The trade deficit continues to widen. In 2007 it was estimated at SBD $551 million. Solomon Islands shows trade deficits against many of its largest trading partners including (in order of deficit): Australia, Singapore, Papua New Guinea, New Zealand, and Malaysia. At the same time the trade balance favoured Solomon Islands with respect to South Korea, Japan and China.
Inflation has been over 20% since July 2008 but is slowly falling. International fuel and rice prices will continue to pressure both the domestic and imported goods’ inflation rates, as will domestic credit which is pushing domestic lending upwards, heightened Government expenditure and the increase in money supply.
Despite the forecast decline in growth of the economy, the recently approved 2009 Budget sets out a 17 percent increase in expenditure over 2008, funded by a projected 20 percent increase in domestic revenue, continued donor budget support and the exhaustion of cash reserves.
There have been many recent economic reforms that have made doing business in Solomon Islands easier. Recent reforms have included: a new Foreign Investment Act; work and residency permit simplification; tax exemption guidelines; import duty reforms; initiatives to expand financial services in rural areas; endorsement of a comprehensive rewrite of the Companies Act; endorsement of comprehensive reforms in the state-owned enterprise (SOE) sector including writing of a new SOE Act; introduction of limited competition in aviation; announcement of the intention to introduce competition in telecommunications; and, commencement of the implementation of a new Transport Plan including a mechanism for ensuring appropriate local funding for transport infrastructure maintenance. Many of these reforms are bearing fruit already. International airfares and international call rates have reduced significantly and there are several new players in the international flight market.
The Central Bank of the Solomon Islands has identified a number of significant challenges facing the Solomon Islands economy. These include the Solomon Islands’ narrow production base, rapid population growth, an unsustainable debt burden, donor dependency, weak governance and political instability. Inadequate infrastructure and poor transport links may further hinder growth.
Solomon Islands is one of New Zealand’s largest bilateral aid programmes. NZAID’s bilateral official development assistance to Solomon Islands for 2008/2009 will be $35.7 million. The priority funding areas have been education and skills development, improving livelihoods, and promoting broad-based economic growth.
Forecast Expenditure in 2008/09 - $14.5 million
NZAID is recognised as a lead donor in the education sector in Solomon Islands and has been working in partnership with the Ministry of Education and Human Resources (MEHRD) since 2003 to support MEHRD to manage, expand and improve the education system. NZAID has provided approximately $10 million annually in budget support since 2004 to provide grants to schools and upgrade infrastructure throughout the country, to improve teacher training and to deliver updated curriculum resources and teaching materials to all primary schools.
NZAID also provides sponsorships for tertiary and professional development training overseas.
Forecast Expenditure in 2008/09 - $5.8 million
Transport Infrastructure:
NZAID is currently working with Solomon Islands Government and other partners to rehabilitate roading and bridges to improve rural people’s access to markets and social services. Significant improvements have already been made to roading and bridges in Malaita and Guadalcanal, and NZAID support is now focused on Makira Province.
Fisheries:
Fisheries are an increasingly important source of revenue for the Government, and a vital source of food and income for coastal communities. NZAID has been supporting efforts to improve the Ministry of Fisheries and Marine Resources’ (MFMR) capability and systems for managing fisheries resources.
Livelihoods
NZAID also supports organisations working with potential entrepreneurs, small business owners and rural communities to improve to livelihoods and food security. For instance, World Fish is working with small businesses and aquaculture farmers in remote villages of Western Province to grow and export marine ornamentals.
Forecast Expenditure in 2008/09 - $13.1 million
NZAID works with RAMSI on programmes which consolidate Solomon Islands’ ongoing transition to stability. NZAID has committed up to $5.8 million annually for the capacity building activities of New Zealand Police deployments to the RAMSI Participating Police Force, and secondments of senior Police officers to key positions in the Royal Solomon Islands Police (RSIP). NZAID has also committed $4 million to improve housing for RSIP officers. Through the RAMSI Law and Justice Programme, NZAID is providing funding for the secondment of High Court judges. NZAID has also provided funding for the work of Save the Children with the RSIP on crime prevention and assisting the police, courts and prison service to develop practices which preserve the rights of children and youth.
With the assistance of New Zealand IRD, NZAID is improving the Government’s revenue collection and the systems required to ensure tax compliance.
Through the Commonwealth Local Government Forum, NZAID is assisting the Honiara City Council to improve its ability to deliver basic services such as rubbish collection and repair of roads.
Forecast Expenditure in 2008/09 - $3.9 million
NZAID is working with the Ministry of Education, UNICEF and the EU to rebuild schools and teacher housing. NZAID is funding World Vision to help isolated communities rebuild and repair the homes of about 30,000 people. NZAID funded World Fish to enable rural communities to access their fisheries by providing 930 locally constructed canoes, and advice and equipment to enable communities excavate channels to the sea through uplifted reefs.
New Zealand's relationship with Solomon Islands has developed over many years of close association, not least during the Guadalcanal-Solomon Islands campaign during World War II and early missionary linkages through Bishop Selwyn. The political goodwill that has built up over that time has been enhanced in recent years by both countries' involvement in the Bougainville peace process, and New Zealand's involvement in the Solomon Islands peace process since the ethnic troubles of 1999-2003.
New Zealand’s relationship with Solomon Islands has developed over many years of close association, not least during the Guadalcanal-Solomon Islands campaign during World War II and early missionary linkages through Bishop Selwyn. The political goodwill that has built up over that time has been enhanced in recent years by New Zealand’s strong support and involvement in the Regional Assistance Mission to Solomon Islands and increasing bilateral aid programme.
New Zealand’s bilateral trade relationship with Solomon Islands is limited and accounts for just 1.6% (approx) of our exports to the Pacific.
According to the latest figures from Statistics New Zealand, New Zealand’s exports to Solomon Islands for the year ending July 2008 totalled NZ$17.9 million, down from the previous year (NZ$18.6 million to year ended June 2007). Our main exports were aluminium (16%), sugars (15%), and iron and steel (15%). Other key exports include machinery, other construction materials, dairy and fresh vegetables and eggs.
Our imports over the same period totalled NZ$2.24 million (mainly wood and wood products, and scrap metals), also down slightly from the previous year.
New Zealand and Solomon Islands signed a bilateral fisheries agreement in May 2007, which provides for the New Zealand fishing industry to enter into bilateral industry-to-Government access agreements with the Solomon Islands Government. Solomon Islanders are eligible to participate in New Zealand’s Recognised Seasonal Employer Scheme.
New Zealand’s bilateral trade relationship with Solomon Islands is limited and accounts for just 1.6% (approx) of our exports to the Pacific. According to New Zealand Trade and Enterprise statistics, New Zealand's exports to Solomon Islands for the year ending April 2007 totaled BZ$18.6 million. Our main exports were books and newspapers (13%), iron and steel (12%), aluminium (11%), machinery (10%) and sugars (9%). Our imports over the same period totaled NZ$2.4 million (mainly wood and wood products). New Zealand and Solomon Islands signed a bilateral fisheries agreement in May 2007, which provides for the New Zealand fishing industry to enter into bilateral industry-to-government access agreements with the Solomon Islands Government. Solomon Islanders are eligible to participate in New Zealand's Recognised Seasonal Employer Scheme.
New Zealand’s relationship with Solomon Islands has developed over many years of close association, not least during the Guadalcanal-Solomon Islands campaign during World War II and early missionary linkages through Bishop Selwyn. The political goodwill that has built up over that time has been enhanced in recent years by both countries’ involvement in the Bougainville peace process, and New Zealand’s involvement in the Solomon Islands peace process since the ethnic troubles of 1999-2003.
The Safetravel website provides a travel advisory for travellers to Solomon Islands [external link].