Resuscitating the Solomon Islands Economy

Abstract

The Solomon Islands' economy was already showing signs of recovery when the first peacekeepers from the regional assistance mission arrived in Honiara in late July of 2003. Cocoa, copra, and log exports were recovering in response to a recovery in international demand for these commodities, not least due to a rebound in economic growth in Asia. The fiscal position of the state, however, and the law and order situation was fragile until the arrival of the peacekeepers. The early phase of the intervention has had considerable success in restoring peace and in disarming the militants. Restored peace and tranquillity, however, will only last if the economy grows sufficiently rapidly to fulfil the aspirations of the people. This paper considers the longer-term challenge of resuscitating growth so as to place the economy on a higher growth trajectory, as this will be the criterion on which the success of the mission will ultimately be judged. Show more