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Solomon Islands Solomon Islands Public Disclosure Authorized Systematic Country Diagnostic Priorities for Supporting Poverty Reduction & Promoting Shared Prosperity Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Report No.: 115425-SB June 1, 2017 1 | World Bank Regional Vice-President Victoria Kwakwa Country Director Michel Kerf Senior GP Directors Carlos Felipe Jaramillo, Carolina Sanchez Practice Managers Ndiame Diop, Salman Zaidi Task Team Leaders Virginia Horscroft, Imogen Halstead, Carlos Orton Romero International Finance Corporation EAP Director Vivek Pathak Country Manager Thomas James Jacobs Senior Operations Officer (Strategy) Daniel Street Resident Representative and Task Team Leader Vsevolod Payevskiy Multilateral Investment Guarantee Agency Executive Vice President Keiko Honda Director MIGES Merli Baroudi Task Team Leader Paul Antony Barbour Cover Image Tom Perry Image Credits Pages 15, 32 Alana Holmberg Pages IV, XX, 2, 11, 21, 22, 47, 51, 55, 66, 67, 73, 76, 92, 99, 102 Tom Perry Pages 27, 37, 61, 86 Rachel Skeates-Millar Page 41 Stephen Yeo Page 43 Solomon Star | II Abbreviations ADB Asian Development Bank NDS National Development Strategy CBRM Community-Based Resource Management NEAP National Education Action Plan CBSI Central Bank of Solomon Islands NFD National Fisheries Developments CDF Constituency Development Fund NGO Nongovernmental Organization CSR Corporate Social Responsibility NMP National Mining Policy DFAT Australian Department of Foreign Affairs and Trade NPF National Provident Fund DHS Demographic and Health Survey NTF National Transport Fund DRM Disaster Risk Management NTP National Transport Plan DRR Disaster Risk Reduction OOP Out-of-pocket ECE Early Childhood Education PNA Parties to the Nauru Agreement EEZ Exclusive Economic Zone PNG Papua New Guinea EITI Extractive Industries Transparency Initiative PPP Public-Private Partnership EU European Union RAMSI Regional Assistance Mission to the Solomon Islands FAO United Nations Food and Agriculture Organization RDP Role Delineation Policy FSS Franchise Shipping Scheme RSE Recognized Seasonal Employer FTE Fixed Term Estate RSIPF Royal Solomon Islands Police Force GDP Gross Domestic Product RSPO Roundtable on Sustainable Palm Oil GFC Global Financial Crisis RTC Rural Training Centre GNI Gross National Income SCD Systematic Country Diagnostic GPG Guadalcanal Provincial Government SEZ Special Economic Zone GPI Gender Parity Index SFA Solomon Forestry Association GPPOL Guadalcanal Palm Oil Plantation Ltd. SI$ Solomon Islands Dollar GPRDA Guadalcanal Plains Resource Development Association SIEA Solomon Islands Electricity Authority HCC Honiara City Council SINEP Solomon Islands National Energy Policy HIES Household Income and Expenditure Survey SINSO The Solomon Islands National Statistics Office ICT Information and Communication Technology SISEP Solomon Islands Sustainable Energy Project IFC International Finance Corporation SIWA Solomon Islands Water Authority IHME Institute for Health Metrics and Evaluation SME Small and Medium Enterprise IMF International Monetary Fund SOE State-Owned Enterprise IRD Inland Revenue Department SPC Secretariat of the Pacific Community MEHRD Ministry of Education and Human Resource Development SWP Seasonal Worker Program MFMRD Ministry of Fisheries and Marine Resources Development TVET Technical and Vocational Education and Training MHMS Ministry of Health and Medical Services UN United Nations MID Ministry of Infrastructure Development VCO Virgin Coconut Oil MLHS Ministry of Lands, Housing, and survey VDS Vessel Day Scheme MoFT Ministry of Finance and Treasury WDR World Development Report MOU Memorandum of Understanding WDI World Development Indicators MP Member of Parliament WHO World Health Organization NCD Non-Communicable Disease III | | IV Contents EXECUTIVE SUMMARY x 1. INTRODUCTION................................................................................................................. 1 2. COUNTRY CONTEXT......................................................................................................... 3 2.1 Economic Geography, Political Economy, and State Fragility..................... 3 Economic Geography .............................................................................................. 3 Political Economy ...................................................................................................... 7 Drivers of Fragility, Conflict, and Violence ....................................................... 9 2.2 Post-conflict Developments ................................................................................... 12 Post-conflict Economic Developments .............................................................. 12 Post-conflict Poverty Developments .................................................................. 15 2.3 Contemporary Sources of Risk and Resilience ............................................... 18 Key Sources of Resilience ....................................................................................... 18 Key Sources of Risk .................................................................................................. 19 3. ANALYTICAL FRAMEWORK ........................................................................................ 21 4. PILLAR 1: STRENGTHENING THE FOUNDATIONS OF WELL-BEING ............ 23 4.1 Peace, Security, and Justice ................................................................................... 24 Current Conditions and Constraints ................................................................... 24 Outlook and Opportunities .................................................................................... 25 4.2 Health ............................................................................................................................ 26 Current Conditions and Constraints ................................................................... 26 Outlook and Opportunities .................................................................................... 29 4.3 Education ..................................................................................................................... 30 Current Conditions and Constraints ................................................................... 31 Outlook and Opportunities .................................................................................... 34 4.4 Essential Services....................................................................................................... 35 Water: Constraints and Opportunities ............................................................... 36 Sanitation: Constraints and Opportunities ....................................................... 38 Waste Disposal: Constraints and Opportunities ............................................. 38 Energy: Constraints and Opportunities ............................................................. 39 4.5 Disaster Risk Management and Climate Adaptation .................................... 41 Current Conditions and Constraints ................................................................... 42 Outlook and Opportunities .................................................................................... 42 5. PILLAR 2: ACHIEVING INCLUSIVE AND SUSTAINABLE GROWTH................ 44 5.1 Agriculture and Fisheries ........................................................................................ 46 Agriculture ................................................................................................................... 46 Fisheries ........................................................................................................................ 50 5.2 Extractive Industries ................................................................................................. 53 Forestry ......................................................................................................................... 53 Mining ............................................................................................................................ 57 5.3 Urban Services ............................................................................................................ 60 5.4 Tourism .......................................................................................................................... 64 5.5 Labor Mobility ............................................................................................................. 68 5.6 Macro-fiscal Management Challenges ............................................................... 70 V | 6. PILLAR 3: MANAGING UNEVEN DEVELOPMENT ........................................................................ 74 6.1 Patterns of Uneven Development ............................................................................................... 75 Current Conditions and Constraints ........................................................................................... 75 Outlook and Opportunities ........................................................................................................... 79 6.2 Connectivity ........................................................................................................................................ 81 Transport .............................................................................................................................................. 81 Communications................................................................................................................................
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