Private Sector Assessment For Solomon Islands

Abstract

Solomon Islands’ economy has begun to recover from the effects of the “Tensions”. Indeed, several observers claim that the recovery commenced before the arrival of RAMSI. Nevertheless, uncertainty surrounding how long RAMSI will remain in the country clearly has a strong impact on investor confidence. The recent announcement that RAMSI is committed for the long term will no doubt have a positive effect, but dispelling all uncertainty is not possible - only time and stability can heal the most fundamental damage done to the social and economic wellbeing during the “Tensions”. Furthermore, evidence from other post conflict countries supports strongly the need for the long term presence of peace keepers1, as well as a particular phasing of aid and the ways in which it is implemented. These issues and how they relate to private sector development constitute one of the major themes of this report.