THE Permanent Secretary of the Ministry of Finance and Treasury, McKinnie Dentana has highlighted a number of factors, including corruption, as challenges to doing business in Solomon Islands.
Mr Dentana was speaking at the launch of the Solomon Islands Country Economic Memorandum (CEM) titled ‘Unlocking New Source of Economic Growth’ in Honiara recently.
The report was jointly launched by PS Dentana and the World Bank Country Director for Papua New Guinea and the Pacific Islands, Stephen Ndegwa.
In his remarks, Mr Dentana said Solomon Islands is a small and remote country with a unique set of development challenges and with a population dispersed across many islands, complicating the delivery of public services and infrastructure.
“Our small domestic economy and remoteness from large export markets limit private sector activity and international trade.
“Naturally disasters and climate change continuously threaten livelihoods and sustainable development in the country.
“Governance challenges, corruption, skills shortages and high electricity prices make it difficult to do business in the country,” he underscored.
As a result, PS Dentana said the economic growth in the country has been slow and volatile, leading to a growing gap in per capita incomes compared to peer countries.
He said in 1999, the country’s per capita income was broadly equivalent to that of its peer countries, but incomes diverged between the country and its peers during the tensions and has yet to recover.
“Furthermore, production in the logging sector – our historical growth driver – has significantly fallen. At the same time, other sectors have been struggling to gain momentum,” the MoFT PS added.
PS Dentana said it is the aim of the Government for National Unity and Transformation (GNUT) to invest in transformative activities in identified key sectors to boost economic growth to upper middle-income status,” PS Dentana said.
He said the government is looking forward to recommendations of the study and inviting development partners to work together with it and all other key stakeholders to implement the recommendations to help unlock new sources of economic growth for Solomon Islands for the betterment of our people.
World Bank Country Director for Papua New Guinea and the Pacific Islands, Mr Ndegwa thanked the Minister of Finance and Treasury (MoFT), Manasseh Sogavare and Permanent Secretary Dentana for their work and collaboration with the World Bank in producing the report.
He also thanked development partners for supporting Solomon Islands and in thinking through what could be the next transformation steps that Solomon Islands could take and how they can partner up to making greater achievements.
By AGNES MENANOPO
Solomon Star, Honiara
