Solomon Islands

Total land area	28,000km² over nearly 1,000 islands and atolls ^[1]
Exclusive economic zone (EEZ) area	1.6 million km² ^[1]

Population (2008 estimate)	520,617 ^[2]
2015 forecast	624,667 ^[2]
Average annual population growth rate 2008-15	2.9% ^[2]
Population density	19/km²
Women in parliament	0 out of 50 members
Human Development Index score	135^[5]

Independence from Britain was achieved on 7 July 1978. Solomon Islands is a constitutional monarchy with a Westminster- style parliamentary democracy political system. There is a 50 member unicameral parliament elected by the people every four years, and is chaired by an independent Speaker. Parliamentary representation is based on single-member constituencies.

Solomon Islands governments are characterised by weak political parties and highly unstable parliamentary coalitions. They are subject to frequent motions of no confidence and the make up of the cabinet changes frequently as a result. A further by-product of the history of instability is the staggering 24 government ministries in a parliament of just 50 seats. Despite the high number of no confidence motions, only one prime minister has lost office in a vote of no confidence in parliament - Hon. Manasseh Sogavare was toppled in December 2007 by his former education minister Hon. Dr Derek Sikua. The Sikua government introduced a Political Party Bill in an attempt to address the inherent instability in the political system. The proposed law would vest powers to remove a prime minister in the ruling parties internally and not in the parliament. The bill was subject of much debate both in parliament and amongst the wider community. The vote, two days before the dissolution of parliament in April 2010, failed by two votes to reach the required two thirds majority for the bill to pass into law. This link provides more information on the political parties contesting the 2010 election in Solomon Islands.

Head of State	Her Majesty Queen Elizabeth II (since 7 July 1978) represented by His Excellency Sir Frank Kabui, Governor General (since 7 July 2009). The Governor General is appointed by the monarch on the advice of parliament for up to five years (eligible for a second term).
Head of Government	Prime Minister Hon Danny Philip (People's Progressive Party) since 25 August 2010. The prime minister is elected by a majority vote in the parliament. The prime minister was elected with 26 votes, narrowly defeating Hon. Steve Abana (Solomon Islands Democratic Party) who received 23 votes.
Executive	The prime minister appoints the cabinet. There are currently 24 government ministries: - Ministry of Prime Minister and Cabinet - Ministry of Public Service - Ministry of Development, Planning and Aid Coordination - Ministry of Finance and Treasury - Ministry of Police, National Security and Correctional Services - Ministry of Women, Youth & Childrens Affairs - Ministry of Education and Human Resources - Ministry of Health and Medical Services - Ministry of Foreign Affairs and External Trade - Ministry of Commerce, Industry &Employment - Ministry of Culture and Tourism - Ministry of Agriculture & Livestock - Ministry of Lands, Housing and Survey - Ministry of Infrastructure Development - Ministry of Communication and Aviation - Ministry of Environment , Conservation and Meterology - Ministry of Fisheries and Marine Resources - Ministry of Energy, Mines & Rural Electrification - Ministry of Provincial Government and Institutional Strengthening - Ministry of Home Affairs - Ministry of National Unity, Reconciliation and Peace - Ministry of Rural Development and Indigenous Affairs - Ministry of Justice and Legal Affairs - Ministry of Forestry
Civil Service	The RAMSI intervention of 2003 led to a significant public sector support programme including civilian officials and technical advisors located within the Solomon Islands Government systems. The public service had been demoralised and weakened through the conflict, with salaries unpaid for long periods and the political leadership in turmoil. The result was greatly reduced productivity, poor service delivery, and the absence of fiscal controls resulting in large deficits and arrears. The focus of the government and RAMSI civilian programme after the cessation of hostilities was on restoring the machinery of government to improve accountability and service delivery and promote economic growth. Senior officers in the public service are being placed on performance contracts with measurable performance indicators. All government departments are being asked to include verifiable performance targets as part of their budget submissions, and to report on the accomplishment of these targets. Public service employment processes and laws are being rationalised and streamlined, with a view to ensuring transparency, merit-based selection, and equal opportunity. The Institute of Public Administration and Management (IPAM) has been re-established to provide training for public servants across government. At the same time, structures and systems in key line ministries are being reviewed and re engineered to eliminate waste and improve efficiency. Concern that the large presence of RAMSI was creating a parallel and at times disjointed systems of governance in the public service was noted in a Solomon Islands Government Foreign Relations Committee report Inquiry into the Facilitation of International Assistance Notice 2003 and RAMSI intervention. The extent to which reforms RAMSI has effected are sustainable in the long term is an area for consideration, and AusAID has begun moving some programs to the bilateral program.
Local Government	Defining local government structures and boundaries has been an ongoing process since before independence. The country inherited the administrative districts of the previous British protectorate in 1978 before being reorganised into seven provinces in 1981 and Honiara being declared a separately-governed Capital Territory in 1983. A further change was made in 1995 when Choiseul was split off from Western province, and Rennell and Bellona was split off from Central province, resulting in the current local government structure of nine provinces and the Honiara City Council. The legal framework for local government has also undergone a series of transformations resulting in the Provincial Government Act 1997 . Rural development is a recurring domestic political issue and most recently has been dominated by debate on a new Constitution to introduce federal system with three tiers of government: federal, state and community with the latter formalising traditional systems of government. It is unlikely that the government will have a draft of the proposed Federal Constitution ready before Parliament is dissolved in April 2010 - the next national election is due between April and August 2010. Although there is not a consensus on moving to a federal model of government, it is widely understood that the existing provincial administrations have little or no means to deliver the small number of services which have been devolved to them. Provincial budgets are generally expended on payroll and there is limited capacity to deliver services. The country is divided into 10 administrative areas. Nine are provinces (Central, Choiseul, Guadalcanal, Isabel, Makira-Ulawa, Malaita, Rennell and Bellona, Temotu, Western) administered by elected provincial assemblies. The 10th is the town of Honiara, administered by the Honiara Town Council.Outer Islands Local Government Act 1987 and the and Palmerston Island Local Government Act 1993 for administrative purposes. A mayor heads each island council.
Judiciary	The Court of Appeal is currently presided over by Lord Slynn of Hadley (UK) and draws on a panel of judges from the Commonwealth. The Governor General appoints the Chief Justice, President of the Court of Appeal and other judges of the High Court on the advice of the Judicial and Legal Service Commission. Magistrate courts handle most routine legal matters based on British common law. Local courts hear civil and criminal matters in which all parties are resident or within the area of the jurisdiction of the court. The Customary Land Appeal Court deals with customary land appeals.
International Organisations	ACP, ADB, AOSIS, C, ESCAP, FAO, G-77, IBRD, ICAO, ICCt (signatory), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IOC, ITU, MIGA, OPCW, PIF, Sparteca, SPC, UN, UNCTAD, UNESCO, UPU, WHO, WMO, WTO

Solomon Islands’ national development priorities are articulated in the Medium-Term Development Strategy 2008– 2010 (MTDS) and include addressing the basic needs of people in health and food security; improving rural economic production; promoting the sustainable use and management of the environment and natural resources; reconciliation and rehabilitation; strengthening the role of chiefs; delivering free basic education and developing tertiary and vocational educational opportunities; shifting the economy toward the development of tourism, fisheries and marine resources; and strengthening public sector management. While Solomon Islands continues to improve across a range of public financial and economic management indicators, the prospect of commercially viable forest resources being exhausted by 2013 will impact significantly on government revenue and economic growth. A substantial array of reforms are underway in an attempt to diversify the economy, and improve the effectiveness and efficiency of the public sector to improve and meet expectations.

The government’s public financial management priority is to increase public and donor confidence in the public financial system. Most aid (SBD865m of the SBD1,240m estimated for 2010) is non-appropriated (i.e. is not dispersed through the government budget or Appropriation Act). Aid donors generally use their own accounting and reporting procedures with limited use of government systems, which is neither desirable nor in keeping with the Paris Declaration on Aid Effectiveness. Since 2003, development partners have helped to improve the credibility of the national budget, eliminate a backlog of central government financial statements and introduce a transparent audit regime. The government has also paid off its debt interest and trade creditor arrears and revenues also increased substantially between 2004-08. The Public Accounts Committee has been actively participating in the oversight of government expenditures and review of government estimates. The medium-term fiscal strategy is to continue a prudent approach to debt management, and to control expenditure growth through improvements in financial management. In 2009 the payroll management application was replaced and a budget management system introduced. Ongoing and planned reforms include an upgrade to the electronic financial management system and an exercise to prepare and audit the outstanding financial statements of poorly performing state owned enterprises. Public financial management reforms have concentrated on getting the basics right rather than introducing sophisticated processes. Procurement regulations require all expenditure greater than SBD$50,000 to be tendered through either ministerial or central (amounts over SBD$500,000) tender boards. The challenge for government and donor stakeholders is ensuring the sustainability of the improvements and address the remaining weaknesses, including the substantial amount of non-appropriated donor funding.

SUMMARY OF THE SOLOMONS ISLANDS BUDGET PROCESS

Step 1: Call for ministerial funding submissions	The budget cycle is usually started around April, when each line ministry prepares submissions for funding proposals and staff requirements for both the recurrent budget and the development budget. The recurrent budget unit is housed in Ministry of Finance and Treasury. The development budget unit is housed in Ministry of Development Planning and Aid Coordination (MDPAC). Funding submissions are assessed against the national development priorities and medium term strategic framework.
Step 2: Budget formulation	Both the recurrent budget and development budget are refined in the Ministry of Finance and Treasury in consultation with the line ministries before being sent to cabinet. The Minister of Finance and Treasury presents the recurrent budget and the Minister of Development Planning & Aid Coordination presents the development budget to Cabinet.
Step 3: Cabinet Approval	The Cabinet meets 2-3 times to consider the recurrent and development estimates. During this time each minister presents the ministerial case to support the funding submission. Finally Cabinet agrees upon these budgets. Once approved by Cabinet the budget is sent to the Public Accounts Committee.
Step 4: Parliament approval	The draft budget is considered by the Public Accounts Committee (usually over 2 weeks) which then sends its report and the budget to parliament to be debated. The budgets are tabled in parliament in the form of an Appropriations Bill for consideration and passing. When the budget is approved (the appropriation bill is passed into law) Minister of Finance and Treasury issues a general warrant, which gives authority to use the budget.
Step 5: Implementation	Once each line ministry receives their general warrant they can raise cheques through treasury. There is often a significant use of virements (transfer of funds within a ministerial budget) which offers a measure of flexibility for managers to reflect budget variances throughout the year. Additionally, a certain amount is usually set aside by Cabinet in contingency warrants to cover unforeseen circumstances.

The government's Medium-Term Development Strategy 2008–2010 identifies the need to ensure that the role of chiefs is strengthened, recognised and respected. There are no provisions in the Constitution or legislation pertaining to the role of traditional leaders or chiefs.

The relative absence of official government representation outside of Honiara has given rise to many 'informal' systems of governance based on village, church and family systems. There is no uniform attachment of village community governance to the national systems nor is there any legislation or emplacement of village community governance in the national structure of government. Some provinces (for example Isabel Province) include a village community leadership structure in which church, chiefs and women are involved in decision making. In others traditional chiefs maintain authority. Many villages, however, no longer have chiefs and are organised by elders selected by village opinion leaders. Churches in particular take on some service delivery functions through schools, training centres, health clinics and support services to women and youth. Kinship or 'wantok' networks and obligations have a profound impact on local political activity and governance and are fundamental to the identity of most Solomon Islanders. While largely unfamiliar outside Melanesia, these village based systems enjoy popular legitimacy and are relatively effective in maintaining social cohesion.

GNI per person 2007 (Atlas method)	US$750 ^[2]
GDP current (2009)	US$0.668b ^[3]
GDP per capita 2009	US$1,244 ^[3]

Labour market‚ Formal sector (1999)

Number of employees	57,472 ^[4]
% of workforce	-- ^[4]
% Female	31% ^[4]
% Public sector	-- ^[4]
Private sector	-- ^[4]

The civil unrest between 1997 and 2003 severely damaged the Solomon Islands economy. The main cause of the economic decline was the destruction of the largest income earning activities (logging, palm oil, gold, fish processing and tourism). There was also extensive damage to personal property, transport infrastructure, schools, water supply and sanitation systems, government buildings and the health sector. Since 2003, the government has embarked on a number of reforms to improve economic management as well as industry reforms in tourism, agriculture and fisheries to counter the anticipated decline in the logging sector. Estimates vary, but present rates of logging look likely to exhaust commercially viable forest resources by 2013, mainly due to unsustainable logging practices. There will be a significant reduction in government revenue as a result as it currently duties on export round logs account for around 17% of revenue. The economy picked up after the RAMSI intervention in 2003 (see chart 3 opposite) peaking at 10.7% in 2007, and then slowing dramatically in 2009 largely due to weakened external demand, reduced log production and commodity prices, lower agricultural output due to floods in the first quarter of 2009 and slow growth in other sectors, including public administration, as government revenue became constrained. The growth outlook for 2010 is expected to recover moderately, with the real growth rate expected to be around 2 per cent. The slight pick-up in growth is primarily due to an anticipated recovery in global activity, particularly among the country’s Asian trading partners. However, the expected continuation of depressed commodity prices and the continuing fall in log production will continue to restrain growth. This concerning outlook necessitates the continuation of the economic reform agenda across the economy.

Telephone	Mobile services provided by Our Telekom and B-Mobile.
Internet	10,000 users as at September 2010 ^[6]. 13,980 Facebook users (2.35% population)^[7].
Newspapers	One daily newspaper Solomon Star and two weekly newspapers, Island Sun and National Express.
Television	Four channels - one religious/sport and 3 licenses held by Solomon Telekom, two of which relay ABC and BBC and one programmed by private company One News Ltd.
Radio	Solomon Islands Broadcasting Corporation (SIBC) is the national broadcaster. Government owned FM station (Wantok) and the 9 community FM stations.

No military forces are maintained by the Solomon Islands Government, although it has had an armed constabulary since 1893 when it became a British Protectorate. A paramilitary force was created after independence, which successfully maintained border security during the Bouganville rebellion. It was disbanded after some officers took sides in the Malaita-Guadacanal tensions in 1998-2001. In July 2003, a sizable international security contingent of about 2,200 police and troops, arrived in the Solomon Islands under the auspices of the Regional Assistance Mission to the Solomon Islands (RAMSI). Since then, they have worked in an operational policing capacity alongside the Royal Solomon Islands Police force.

Donors provide significant development and budget support to the Solomon Islands (estimated to be over 50% of overall government expenditure). The major donors include AusAID, NZAID, Taiwan, Japan, Asian Development Bank (ADB) and the European Union. According to the 2010 development estimates, total donor assistance to government was forecast to be SBD1.24 billion. The Regional Assistance Mission to the Solomon Islands (RAMSI) is the dominant international presence in Solomon Islands with security forces and civilian personnel working across three programmes: working across 3 programs: Machinery of Government, Economic Governance and Law and Justice. RAMSI Machinery of Government is made up of a number of sub programs including the Public Service Improvement Program, and programs in Electoral Commission, the Auditor General, Office of the Ombudsman, Leadership Code Commission, and UNDP implemented programs in the National Parliament Office and the Ministry of Provincial Government.