CDP Monitoring Reports - Solomon Islands

The Solomon Islands continues to meet the GNI and HAI criteria and is making slow but steady progress on both indicators. However, the economy remains highly vulnerable due to the high market concentration both in terms of products (timber) and markets (China) as well as the high disaster risk and civil unrest. The CDP does note the progress that has been made in expansion of output from other sectors such as fisheries and minerals over the past decade. Solomon Islands has yet to report to the CDP on its preparation of the smooth transition strategy, but the Committee will hold a country consultation with the Government. However, the country has been proactively negotiating with development and trading partners to fully counteract any emerging vulnerabilities and challenges and has signed a number of agreements. The impact assessment shows no significant impact of graduation on development cooperation and other financial flows. The CDP further observes that the Solomon Islands are facing substantial development challenges, with preservation of macroeconomic stability, strengthening transparency and governance, improvement in the business environment, and progress on financial market development. Governance remains a concern evidenced by weak public financial management and poor management of the logging industry and the emerging mining sector. The CDP stresses the importance of good governance and public sector reforms to make progress in these areas. Furthermore, the CDP expresses great concern at the outbreak of unrest and will continue to monitor the situation. All stakeholders are implored to pursue a peaceful resolution.