Development Challenges in Solomon Islands: Economic and Political

This report provides a detailed analysis of the development-related issues in the Solomon Islands, focusing on both economic and political factors. The economic section examines the Gross Domestic Product (GDP), natural resources, labor force, infrastructure, and the impact of migration and urbanization. It highlights challenges such as expensive housing, poor infrastructure, and the influence of logging activities on economic growth. The political section explores challenges related to political instability, corruption, and urban planning, emphasizing the impact of urbanization and governmental involvement. The report also discusses the impact of migration, opportunities for migrants, and the need for improved governance and infrastructure to foster sustainable development. The analysis references various academic sources to support its findings and offers a comprehensive overview of the complex factors influencing the Solomon Islands' progress.

International Planning

Table of Contents
Development related issues in Solomon Island..........................................................................3
REFERENCES..............................................................................................................................12
Online........................................................................................................................................13

Development related issues in Solomon Island
Solomon island is a combination of 6 major islands and 900 smaller islands and covers
land area of 28,400 square kilometres (Solomon Islands: Introduction, 2018). Honiara is the
capital of this island. The population estimated was about 599,500 are Melanesian and there also
consist of small Polynesian, Micronesian, Chinese and European communities. People situated
here speak English as it is a local language of Solomon Islands. Solomon island is one out of five
least developed pacific islands. Thus, development related issues of Solomon Islands has been
discussed in following context-
ECONOMIC FACTOR
Economic factors are not only one that influences economic development but they are
also important to understand economy's capacity of developing by their own (Solomon Islands:
Economy, 2018). Thus, gross domestic product of Solomon island was 1.30 billion 2017. And
the GDP value represents less than 0.01 percent of world economy. Thus, important economic
factors mainly include natural resources, power and energy resources, capital accumulation,
technological resources, labour force that are available in country, transportations and
communications and education and training that is explained as per below context-
 Natural resources are physical resources that are available in a country that includes trees,
soil, water, minerals, coal, oil and anything that is existed or available in a particular
country.
 Power and energy resources are natural or manmade resources that produces energy.
 Capital accumulation or financial profits are investments that are owned by country and
is used in terms of paying wages or hiring labour.
 Technological resources refers to advanced technology that are used within a particular
country. This includes computers, cell phones and various other devices that helps in
increasing capabilities of business and quality of life.
 Labour force considers number of skilled labours that are available within a particular
country. Discrepancy in education or number of labours that are needed can cause harm
to economy of the country. If there are too many labours and less amount of work it will
result to unemployment. If there are fewer labours and high amount of work it will result
to lack of efficiency and inefficiency in supporting economic output of a country.

 Transportation and communication includes all the transportation system that are
available in a country that includes air, train, car and road and communication system
includes phone lines, internet, radio etc.
 Education and training means availability and quality of education system and training
that is provided to citizens of the particular nation.
Opportunities for migrants-
Solomon Islands is a source as well as destination for both domestic and international
trafficking (Bennett and et.al., 2014). The male migrant workers are forced to do labour in
logging and mining industries and female worker who are migrated from Asia are forced in
prostitution. Furthermore, crew members who are fished on shipping boats are displayed as
indicators of human trafficking that includes non-payment of wages, limited food supply and
severe condition of work. Thus, young girls who are moved from different state are also forced
as trafficking in order of the domestic work or will be forced for prostitution in camps and hotel
establishments. They experienced severe contraction of economic and stagnation over ethnic
conflict period. Their growth in economy was 2.9 percent in 2016. Solomon's island economy
and population are largely diverse across the country. Thus, recognition of the available
opportunities will help the policy makers in seeing different priorities and development needs of
education. Even though there is a fast change in modern machineries, political system and
institutions, they are required more responsibility and cooperation in order to tackle education,
migration and development. The disagreement between education and development has to face
challenges at a policy level. Migration plays a medium between transfers of capital and human
skills that occur from developing to developed countries. It has been estimated that migration
affects development only if their policy and framework are correct. It was considered that the
economic growth and development of destination countries were contributed by transfer of skills
and knowledge and paying taxes.
Rate of migration-
Rate of migration includes difference between person entering or leaving islands during
year per 1000 persons. Further, net migration rate indicates migrations contribution to overall
level of change in population (Bryant, 2014). Thus, it is not distinguished between lawful
migrants, undocumented migrants, economic migrants and refugees. In the year 2015 rate of
migration in Solomon Islands was -4.26 per thousand populations which was felled from 2.95

per thousand population in year 1970. Furthermore, the rate of natural increase was 24.42
persons per thousand in 2015 which was 24.92 person per thousand in past year which resulted
in a change of 2.03%.
Housing and infrastructure
In addition to this, houses in Solomon Islands are very much expensive which makes
them out of reach even from most senior civil servants (Cole and Parry, 2017). Some settlements
were having poor service and infrastructure.
They have lacked link and focus in order to generate and implement long term economic
strategy. Thus, due to this, development of economic has been strangled by many other serious
deficiencies which includes widespread violence, poor governance and inefficient public sector.
Economy
Solomon Islands economic score is 57.5 and makes its economy the 114th freest in index
of 2018 (Connell, 2017). Thus, score has been increased by 2.5 points with help of continuous
improvement occurred in judicial effectiveness and property rights indicators that outweighs
decline in trade freedom. It has been ranked 26th among 43 countries in region of Asia- pacific. It
has been given that underlying inflation has risen recently above 2-3% of reserve banks medium
term target brand and has been argued that aggregate demand has to grow faster as compared to
aggregate supply in the economy.
Thus, the best way to generate employment and livelihood people who are migrated must
be engaged in farming in waste lands (Connell, 2017), plants can be used for multiple purposes
which are been thrived. Plants can be grown in large areas which will reduce unemployment
problem among youth and waste land can also be used. The economy of Solomon Islands is
based on agriculture, forestry and fisheries that accounted for 40% of GDP and it provided
employment for majority population and there was a growth by 6.4% p.a. Thus, with the growth
rate that was averaging 8% in past few years they have shown recovery from global financial
crisis. The main reason behind this growth are export sector. They have been driven by indulgent
international prices of commodities. Inflation in this islands rose by 10 percent at end of the year
and has been lowered down by 6%. Its economic growth has been recovered in 2010 from
extending by 7% in year 2010. Logging activity also played an important role in driving
economic growth by exporting 50,000 logs in December 2010. It has also improved its climate of
investment as there is a higher chance of attracting foreign investment than past years. They had

provided new and latest opportunities to investors by way of issuing additional licences of
mobile phones and mining.
Another main reasons for economic factor includes lower interest rates. The decline in
standard home loans interest rates increased amount that households can easily borrow and gave
them opportunity to bid up prices of house (Foley, 2018). Further, drop in housing loan interest
rates had been lowering of interest rates of reserve banks policy as per the establishment of low
inflation environment.

REFERENCES
Books and Journal
Solomon Islands: Economy. 2018. [Online] Available through:
<https://www.adb.org/countries/solomon-islands/economy>
Bennett, G. and et.al., 2014. Solomon Islands: Western Province situation analysis.
Bryant, E., 2014. Introduction. In Tsunami (pp. 3-18). Springer, Cham.
Cole, R.V. and Parry, T.G., 2017. Selected Issues in Pacific Island Development: Papers from
the Islands/Australia Project. Canberra, ACT: National Centre for Development Studies,
Research School of Pacific Studies, The Australian National University..
Connell, J., 2017. Migration and Climate Change: Towards a Secure Future. A Sustainable
Future for Small States: Pacific 2050, p.323.
Connell, J., 2017. Taim bilong mani: The evolution of agriculture in a Solomon Island society.
Canberra, ACT: Development Studies Centre, The Australian National University..

POLITICAL FACTOR
Political factors, or policy of a government has a great impact on economic development
positively or negatively (Ha’apio and et.al., 2018). The regional mission helped in creating
platform in order to reform, improved governance and renewed growth of economy. Thus, three
most important political challenges that were faced by Solomon islands Government in order to
pursue reform and development are as follows:
First political challenge- In political landscape where certainty itself is uncertainty, here
to pursue reform agenda becomes the significant goal of this island. Thus, reforms in national
interests and that are beneficial for a particular country are also hard to pursue if they lack in
viewing it as directly relevant to majority voters.
Second political challenge- Political parties come under great pressure in order to
deliver services within their constituencies. This means that difficulty is increased in achieving
support for reform.
Third political challenge- this challenge is in decision making process about public
institutions are staffed and led, and also government policies and finances. It is raised with
respect to state owned enterprises and more applicable in public service that is wider.
Thus, Poor management, corruption, trade laws and political instability are some political
factors that affects the sustainability of Solomon Islands.
Political engagement with issues of urbanisation has been lacking, despite of increasing the
pressures of urban health, land and housing.
Urbanisation-
Urban future sustainability helps in defining key principles and goal (McCarter and et.al.,
2018). There are few places in whole world where there is collision between population growth
and urbanisation with exposure in climate change and risk of disaster in community. Thus, if
urbanisation in Solomon Islands reaches to 50 percent by the year 2050, it is analysed that at
least half million people will be further residing in Honiara. During first census in Solomon
Islands, 50 years ago the total population stood up-to 125 thousand which means urbanisation
has grown years ago. Urban areas are growing twice the rate of nation that means 4.7% every
year. They have most fast rate of urbanisation in world that attracts rural migrants, specially
youth in search of work and living better and standard life. A total lack of urban planning is
putting pressure on land, housing, services and transport but many of the people have to face risk

of migrating because they don't have any other choice rather than this for employment and
education purpose. Thus, due to this political transformations are occurring in Solomon island.
Thus, to make cities work becomes regional imperatives that requires governments,
communities, donors and researchers in order to bring urbanisation on agenda. In Solomon island
the urbanisation is engaged with stakeholders of diverse range so that they identify their
priorities and ways for development in the future. The urbanisation in Solomon island aims in
informing about priorities in communities that concern in fast urbanisation and identify various
opportunities in order to identify various opportunities that helps in improving urban living
environments and types of development opportunities. It is estimated by research that population
will reach up-to 350,000 by 2050 that is plus 250,000 than present day. It has become the
worldwide phenomenon that involves movement of people from rural to urban areas. Thus, rapid
and fast growth of people in towns increase demanded for housing, utilities, education,
healthcare and other various types of services. Therefore, proper planning will reduce the
challenges that Solomon has to face and allow them for national development if they are well
managed.
Governmental involvement
It has been going in tremendous stress within government due to corruption and violence
that further transfers into peoples (McKinnon and et.al., 2016).
Housing and infrastructure
Infrastructure that includes roads are absent that creates deterrent between people as they
lack in making to hospitals if there is any type of emergencies (van der Ploeg and et.al., 2016).
Thus, due to lack of infrastructure facility, children are unable to go to school that leads in
decrease in literacy rate.
Thus, if government or private sector don't provide sufficient housing for the migrated
people from rural to urban areas, then those people will build or construct their own housing on
land where they do not have any legal rights.
Sustainability
Solomon island are in danger as they are losing some of their capital. Resources and
nature do not mix well with profits of long term sustainability. Thus, employment and
environmental sustainability is a part of series that provides baseline for Solomon islands key
indicators in 36 countries across Asia and Pacific. Thus, new and emerging sustainable

development challenges mainly arises from internal as well as external factors. Internal factors
include local legislations, policies, decisions and practices that all the culture based. External
factors include Solomon island as a small developing country in fast globalising world. Thus,
management of both factors is dominant to new and emerging challenges (Ash and Campbell,
2016). Challenges of sustainability development and changes in environment are driven by same
factors that includes population growth, economic processes, scientific and technological
innovations and patterns of wealth distribution and various processes. Furthermore, in terms of
external challenges
Solution
 Support has to be given regarding urban issues to stakeholders in order to build common
vision for development of Solomon islands.
 They must also strengthen the urban governance so that constitutions and policy
processes are fit for purpose and can support with regard to decision making process that
is effective, accountable and inclusive.
 They must also raise invest in urban infrastructure and services with help of expanding
revenue raising mechanisms and by ensuring transfers of central government that the
transfer done are fair, regular and indexed.
 Availability of secure, affordable and safe housing must be increased by creating policy
incentives that helps them in encouraging low cost housing and accessible options for
financing.
 They must strengthen the connectivity between centres of rural and urban by better
transporting, financial and communication linkages, allowing rural communities in order
to access benefits from urban development.

REFERENCES
Books and Journal
Ha’apio, M.O. And et.al., 2018. Limits and Barriers to Transformation: A Case Study of April
Ridge Relocation Initiative, East Honiara, Solomon Islands. In Climate Change Impacts
and Adaptation Strategies for Coastal Communities (pp. 455-470). Springer, Cham.
McCarter, J. and et.al., 2018. Biocultural approaches to developing well-being indicators in
Solomon Islands. Ecology and Society. 23(1).
McKinnon, K. and et.al., 2016. Gender equality and economic empowerment in the Solomon
Islands and Fiji: a place-based approach. Gender, Place & Culture. 23(10). pp.1376-1391.
van der Ploeg, J. and et.al., 2016. Learning from the lagoon: Research in development in
Solomon Islands. WorldFish.
Ash, J. and Campbell, J., 2016. Climate change and migration: the case of the Pacific Islands and
Australia. Journal of Pacific Studies. 36(1). pp.53-72.

LEGAL FACTORS
Legal factors are those laws, rules and regulations that affects operations and behaviour
of an individual. It includes all determinants of law that affects market or state positively or
negatively. Solomon island should analyse about the legal factors that are affecting them and
accordingly function. It helps in de terming the economic growth around the globe. Thus,
government measures helps in promoting growth of economic that protects them with
exploitation and other factors that are illegal. It also becomes significant for selected area to
understand regional tax measures roles, legal factors and regulatory measures about their affects
toward the state. They play big part in deciding the operation of a Solomon islands regarding
housing and infrastructure.
Housing and infrastructure
Hard Infrastructure refers to physical networks that is necessary in order to function that
includes roads, bridge, railways and many other facilities and small infrastructure refers to
institutions that maintains economic, health, social and cultural standards.Economic prospects in
urban areas are more significantly better than rural areas, so the productivity of urban economy
and political life in Solomon island is deteriorating, mainly for poor people (Allen and Porter,
2016). This is due to deficiency is essential infrastructure, utility services and housing. These
services were implanted before independence and demand that is increasing from high
population in urban areas. Thus, the infrastructure has improved with help of support gained by
other countries financially by investing in island and more can be done. It also includes
inadequate physical infrastructure. Hence, it is situated on Pacific's ring of fire so volcanos and
frequent earthquakes affects these islands and such type of event means that there is a strong
requirement of maintenance and rebuilding very often.
 Boat and road networks- As Solomon island is a combination of many islands, so main
transportation used in water transport which includes boat. Along with this, they also
have small network of road throughout the islands. So they require regular maintenance
as they are regularly affected by rainfall and natural disasters. Therefore, funds required
by them regarding to maintenance are controlled by government and some are supported
by foreign. Thus, rebuilding helps in generating employment opportunities for the people
of Solomon Islands.