Economy
Its per capita GDP of $600 ranks Solomon Islands as a lesser developed nation, and more than 75% of its labour force is engaged in subsistence and fishing. Most manufactured goods and petroleum products must be imported. Until 1998, when world prices for tropical timber fell steeply, timber was Solomon Islands' main export product, and, in recent years, Solomon Islands forests were dangerously overexploited. Other important cash crops and exports include copra and palm oil. In 1998 Ross Mining of Australia began producing gold at Gold Ridge on Guadalcanal. Minerals exploration in other areas continued. However, in the wake of the ethnic violence in June 2000, exports of palm oil and gold ceased while exports of timber fell. The islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold.
Solomon Islands' fisheries also offer prospects for export and domestic economic expansion. However, a Japanese joint venture, Solomon Taiyo Ltd., which operated the only fish cannery in the country, closed in mid-2000 as a result of the ethnic disturbances. Though the plant has reopened under local management, the export of tuna has not resumed. Negotiations are underway that may lead to the eventual reopening of the Gold Ridge mine and the major oil-palm plantation.
Tourism, particularly diving, is an important service industry for Solomon Islands. Growth in that industry is hampered, however, by lack of infrastructure and transportation limitations.
The Solomon Islands Government was insolvent by 2002. Since the RAMSI intervention in 2003, the government has recast its budget. It has consolidated and renegotiated its domestic debt and with Australian backing, is now seeking to renegotiate its foreign obligations. Principal aid donors are Australia, New Zealand, the European Union, Japan, and the Republic of China.
Recently, the Solomons courts have re-approved the export of live dolphins for profit, most recently to Dubai, United Arab Emirates. This practice was originally stopped by the government in 2004 after international uproar over a shipment of 28 live dolphins to Mexico. The move resulted in criticism from both Australia and New Zealand as well as several conservation organisations.
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Famous quotes containing the word economy:
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