Report No. 39870-SB Solomon Islands Agriculture and Rural Development Strategy Building Local Foundations for Rural Development April 2007 Rural Development, Natural Resources and Environment Unit East Asia and Pacific Region Document of the World Bank CURRENCY EQUIVALENTS (Exchange Rate Effective June 2007) Currency Unit = Solomon Islands Dollar (SBD) SBD 7.65 = US81 US96 1.50 = SDR 1 FISCAL YEAR January 1 - December 31 Acronyms andAbbreviations ADB Asian Development Bank MPGRD Ministry of ProvincialGovernment & Rural Development ARDS Agriculture and Rural Development Strategy NERRDP National Economic Recovery, Reform & Development Plan AusAID Australian Agency for International NGO Non-governmental organization Development CBO Community-basedorganization NZAID New Zealand Agency for International Development CBSI Central Bank of the Solomon Islands PG Provincial Government CEMA CommodityExport MarketingAuthority PGSP Provincial Government Strengthening Program CSP CommunitySupport Program RAMS1 RegionalAssistanceMission in the Solomon Islands DBSI Development Bank of the Solomon Islands RDP Rural Development Program FA0 Food & Agriculture Organization RIPEL Russell Islands Plantation Estates, Ltd. FFA Forum FisheriesAgency ROC Republic of China paiwan) FMSP FinancialManagementStrengthening RTC Rural Training Center Program (AusAID) GDP Gross Domestic Product SI$ Solomon Islands Dollar GEF Global Environment Facility SICCI Solomon Islands Chamber of Commerce and Industry HIES Household Income and Expenditure Survey SICHE Solomon Islands College of Higher Education ICT Information and Communication SIEA Solomon Islands Electricity Authority Technologes JICA Japan InternationalCooperation Agency SIG Solomon Islands Government KGA Kastom Garden Association SIISLAP Solomon Islands Institutional Strengthening of Land AdministrationProject MAL Ministry of Agricultureand Livestock SIRIP Solomon Islands Road Improvement Program MDPAC Ministry of Development Planning and Aid SPC Secretariat of the Pacific Community Coordination MID Ministry of Infrastructure Development TARDP TransitionalAgriculture& Rural Development Program (European Commission) MOF Ministry of Fisheries TSAP ~raisitionalsupport for AgricultureProgram (AusAID) MOFEC Ministry of Forestry,Environment & Technical,Vocational Education & Training Conservation MOFT Ministry of Finance & Treasury UNDP United Nations Development Program MOG Machinery of Government MOLS Ministry of Lands & Survey Vice President: James W. Adams Country Director: Nigel Roberts Sector Director: Christian Delvoie Sector Manager: Rahul Raturi Task T e a m Leader: Marianne Grosclaude 'I'fnis report ';t'a~~~rt7parcCJunder the Icadershtp of the Solomon Islands C h i crnn'ictx Mtntstry of I3cvoIopmcnt.i31anr~tnpattd Aid Coctrdtrtcttrot~ i\1117s~ippixtfi~m The Warld Bank R@a,ranalAssistance hnlssian Eurapcan Commissian to 5olanon Islands (RAMS1 ............................................................................................................ . Executive Summary '+ t'tti f. Understanding the Current Situation of Ruraf Deltiefopment ....................................... 1 A. Rccogr~irirlytl~cchallclzges allcad................................................................................... 1 B. Rural incomes and livclifzuods it1 transitioi~.................................................................... 2 C. Finding nc\\ sources of grotvtlr ar2d employmcrzt in rurrrt areas ...................................... 4 D.Natural resources: tltc foundation of rural livelil-toods................................................... b E. Rcstnrirly rtirul serlricesand itlfiastmcturu ...................................................................... 7 F.Institations anti rcsottrccs for rtiral dei.clopmcnt .............................................................0 G.Tt~cCovcrr~mertt'spolicy response: a fucrrs 0x1 local dct*clcspn~c~~t .............................. 11 I-1. Phasing s~tppartfor rural dcs.clopmcrit.......... ......................................*.....*................12 f l.A Focus otx Growth in Rural Areas ..................................... ............................... ..... I4 A. A ncedcd fbct~sor1 rural growtfr....................,. 14 ......................................................... B. Grot$th prospects in key stibsectors................... ,,. .................................................... 13. C. Rcali~ing,:groa.th. prot4idirtg the right irzccntives ................................................ 1 7 I: II. A Prioritized Agenda for Action .............................................................................1 ..11X12 A. ltl~protirlg local got~crnance3t3d serisieedelivery ......................................................... 21 A.I .Making tlcttcr use of availtttalcrcsaur~cs............................................................... 22 A.2. Stretlytfi~t~it~gscrs.icc deli\ cry I I I C C ~ I ~ I ~ ~ Sit1I S I T rurifl arcas.....................................24 £3. Morc itrc1usii.c grot5th: Agriculturr; and t3eyond ........................................................ 28 B.1 . Foct~singon critical agricuitural scri ices ............................................................... 28 B.2. Sttpportixrgecotzorllic infrastructurc and scrviccs................................................... 33. 8.2. Supporting ccot~otz-t infrasuuctttrc and scn+ices................................................... 35 ic 8.3. Paving il-tcrxay for the c s p s ~ ~ ~afs irural~frnancc services ................................... 37 o ~ C. Mattagiltg itat~tralrcsottrctls: I. ncal bcx~efits atzd sustai~zabfegrott'tl~............................4-0 C.1.A ~arrtiorxsapproacl~to lat~drcforn~s...................................................................... 40 C.2. Prcpariitg for structural chnriyes irt the forestry sector ........................................... 43 C.3 Marine rcsourccs ntan:~ycmetzt:Strc~tgtftcnIng Xocttl and international part11ershigs4C~ IV f mplementing the ARDS ...+....................................~~..................~~s~~............+............SO . A.Tailoring iinplctnentation in thc differenl prcsvix2ccs..................................................... 5tI 8. Matching resources and programs ............................................................................... 52 C. h'fo~iitoringand c~atuatiun............................................................................................. 53 Annex A Summary of the 31ain ARDS Recammendations . ....................................... 3 Annex B SrrhsectarGrowth Prospects. . .............................................................................. 60 Annex C Priorities identified by Rural Solomon Islanders in the Provinces . ................63 References ............................................................................................................................. 65 iv 't'tte Sctlon~anIslattds hyncultitre and Rural fletclupt?tei~tStrategy fARI3S)has bcctx a collabumrxte eftorttlxaf lnr ult cd many cuntrxbufors ovcr one 4ear. I he tilRt)S tsas prepared untfcr tfie Icadershtp of tfrc ,2ltrrxsfry of' t)c\clnpt~xcnrPiarrnirrg arid Ard I'oorditxation fMISt3A(', fornitrly Dcpartmcxrr of Nntioilal Fslatxiltng arid ilid C'osrdittatioi~).;1Xrs, Jane fF'actara, Pel-maneixt Secretary. coordtrmred tfrc work on bchalf' (ti' rite Sofotnc~n Islartds Go\err-tmenf as-td cXxaxrecX tltc s\RUS Sfccnng Group. Slcssrs. Mmes. Stradracl~Farrepa ti3crrnartent Sccrctary, Finance and Y'rcasixry): I,uma Darcy ff%cmxancntSecrcrary, Finance and 'l'r.easttr~], Israel ti'orr; tIscm~anclxt Stcrctary, Agrrcultttre atxd i,isesfockf, 'I'ionc Bugotu (I3erlnaneltt St'cretaq., Protincia1 Uosurtxnxc~~tand Rtiral Dclt.lopnxcacf; Pttcr Watria {13crrx~atxcnfSocrcrarq. Itifrasfn~cturcf Iuteloputei~tf: Evans 'l'uhagerrga (Lnder Secretary, kiDPhC); Moses 't'iri\olomo (l;ndcr Secretart, infrastructure f)ebelopmmntf, Htorry Kurrra (\"rider Secretary. Fxrtailce and Treasury); Sclr'rra Boco tllliccrttr, 52fSt;#D): 51ckinnie Dentana {Policy Analyst, Ecoixomic Kcforxn Unxtf: Joanne Asquith (r'tdtxsor. Econo~ricKcfitrnt Cnxrf,Nuutyne Biliki fDrrcctur, MlSi%s\C');'l'racy Richardson (rbrl~xcrPlanning Qfllccr, hlDl'hC), Xtrdrew I9atrash (Plarrriixrg C3f'ficer. MDPAC); Slraron Sewcanrb (Dt\uloptnct~t S t r t ~ s efC\chr;ngcf: Judittt ~ Fatigalat'u'u {SIC,&):Sally Xiku (Solonton Isln~tdsChanther of Coxnxnercc and fnrfustry1, Wctrr? f 'otrvn (R'I C' i.cdcratturif; Paul Craig, I,eonard I'aia, and Philip 'luisau f l;l' 13,tlir,Mi3l\r\('): aid Paul $\'rigfit (IZAMSI ,4kisc"ilD)co~ltribtlredtry tl~rt\ctrk sTrht. Steerinp Comr~~ittce. Iltlrx~~gfltc prcparaftctn ot' tfxu AKf)S, saftiablu guldancc ttas [trotrdod by Mon, 'I'oswelI Ksus (X>cput?i3r'ln>e S4x1lisrcr and Mr~~xstcr,hgrrculturc and Z,r\cstnck): Wuii, Gurdorr Ltarry I-iltr fbln~istcr,f:it>at-tcc and 'I reasuryf; Hon, Steve Abarra (hltnrscer, Descltrprr-rentIJ1annrngand Aid rot-trdinat~trir):IIon Ja~phctf;t'aipora f Miirisccr, IVrotvincialI'ro\errrnrcni and Itural Detelopi?~entf;Wotr. Job IIurXley Tausinga f fbrnxur IScpilry I>nmc.Sdxnlster, Mxnxster, Forests, Exrttronment alxJ (I'ox~ser~atiurrf; 13on. B;rrtholorxre~+t'luFa'Alu ff'c)ctr.mt'r Mix~xster,i.xntancc and "I'rcasury): arrd Wan, Fred Furlo (former Mirxistcs, Xatlittxnl I'iarrntng and Ard f'crordina~toi~fi%urrt~erguidsrrce uns also rt'gwlarly provideti by tlte Psllcy i\dx isor) Lnit itt the Prme ?viluisrer C3Tf!ce. \'cry spccial thatxks for rhetr cot~crrhuaotisto tfiis \ttrrk po to cite E3retnier~and IVov~r~t'iaISecrufaric~of f'efttral, Choiseuf.Gt~adalcanal,Isabel, Malaiu. Makxm, Kenacll artct Rclluxxa, 'f'ei-rrcttuaixd ti'esturrt pro\ lnceii. as tsell as rltetr stalrartd thc xztdn? others txx tlic prtt ate scctttr, ilx cit rfsoclcty, rn tltc t.rllegcs, and t x ~i tortrars tiho cutxtribtxted txmc and thoir rct\s to tfxc prcpaiattcsti irf"rlru ARDS. 1,ncal lcaffcrs and ntral ctttrrnztxnxtius I ale also that1kr.d f"u their support drtd itarm hcrspttaltty. Ftrtalfy. thairks to the stsl'f' of' tile hltiristrics 01' ~Zgrrctilturcand l,ltcsto~k:Forests, Errvtrf~ri~~~e~~tand Co~tser~atiort:1.arlds and Surtey: f:~sht'rtusar~tfCfanttc IZcsnttrccs: Finance anti Treasury; Drtelopn-tent Planning and Ard Courcixna~xcrn:Cunrx.trrrcc, Ejucatitttt: Ittfl.asrructureDc.telapnzent: Ccrrtral Bank of Solomon islands: as tscll as ~ctt.loprnentScrt ~ ckxcitjngc and its s xxrembers For thcir many corrtrlbrxtiorrszhroughttutthe ARDS prepamtiorr process. fJorior support for thc prepalSsxctnttf the ,r\KUS tras coordrnated by Marianrre C;rosclitude f tYnrld 13ankf. nxtb support from t\'illiam Cuddihy, <)liver Braedt, I%hippt Boyer, 'I'om k'igus, l'arcisius 'l'ara fiabufaelaka, and C"frris1uphe Ribcs Ros: Stuart Schaef'er arid Paul ft'right (RAMS1 titts:"iInf. Iatr Kerslrarv, Nadir8 ItJar'lcwa, Dcbarati Pulton tiusr\I U); Soxias Hluli, ifeirry Pror~kerrl,Jer~rtifer'I'ugurxau. artti Jentiifer Brown tliilropeax~C'oxnmrssion). klany ctthcrs also contributed through rt'gillar ad\ rcc ax~J guxdancc, trlclixditrg %hu Xian, &lark fYilson, Steptren Mirrk, Christopher Hlcakie), Moorrae Kinr, Elisnbclh Alealcy, hfanjula Luthria ar~tiSteven Oliver (tt'orld Bank); alxrf as peer rcvict\crs: Paul 13arkcr fitistlttrtc of Nnclot~al Afthirs, Papua Kctt Guinea), i,iselottc IIsaXtssan axrct Ittillem Oltixut' tlftxopeart t'trnlrnrssion. X3rtisscls); Ali\gn Ctrilver and Geuffrr;? Far f ~ l u s ~ t l fC'nnbcrraf; and Michael BaxEcr attd l , Pierre kF'erbrouck {World Bank). I3trcct ctrt~tributivr~s k~ct'cpro\ide$ by rfxe atithctrs of the ARDS backgroutxd studies and notes, x~icXticttirg Robert t17arfier,Andrew JIct;regor, lshtnaet !Yore, and 32uses Pelorrra (rural grcr$irh); C'raig Sugderx (public expenditure): Camilla Motmemo arrd C:iaudine tt'atoto frixrcll sertxce tit'lltcry); Ilavid Macfarlanr. Frans Doornxan, aftd ..isrdre?v Nanauleau (agriculrurc support servlcesl; John Gibson, 'Fatry Jarrscrr, atid Richard I%uku fiusnf litroflfxonds),Dan f'adjrrol (list~enes):arttf Net1 EserEs {forestry).i-rtlaXly,31011 I)UYICB~I cox~tributcd to the AltDS ~7repar~tiosx latinc1-t uctrkstxop xn ;\larch tlf0ft. Why an Agriculture and Rural Devetopment Strategy7 I . irt May 2006, the Cicxernmcnz crl the Safonlon Istands placed rural dct.clapment at the tctp of its pcrllcy agenda, 'f'he Solomon Islands Goi.cnirt.tcnt's May 2fZCffi i'olicy f;rame\vork Document places emphasis err?'dc!.eloj~mcnt through a bottom-tip and t.tolistrc approach that encompasses the crrzpnt\ermer?t of"tfie pcople through rtirat adsrtnccn~enrstrategies, the pursutt 01- rfte Millennttit~~ i)eveloprnertt Cioals, cl~erc~icafr~attcsn the ccononzy, impra\cd lots at~dcrrdcr, ef'fectt~escrs tee of' ddit cry and tftc dctrcrIt~tionof powers and ftinetions and decision-niakrng aut'fioritq to the pcrxpf-rcry"."~ural dct etcsptt~crttchallenges arc many and compfcx. yt restrtsrccs ca address them oro 1i tnttcd. 'i'hc ( i a ernmertt and its detrelopn~entpantiers ha\ c therefore rccogni~cdthat more elqficicnt ~ use of a\ ailable resources is needed. 2. There is n strurt,g demrrnri ;frum Soiortrort. I,sZnnfter.s-84 P Q ~ C P I I~f~ ~ i r olivet t in rztt'i~i ~ ~ itrwns-fijr progress +r~irJIrirmi detieloprtzsrrt bttt n ~*ifle%sprendperc~ptitrrrthat past itjfiwts ksre trof pri~fjttr~titJre expected msuits. try'hrfc some prctgrcss has been n~adestr.tcethe antsaf ofthc fiegronal t"tsistancc h.lisqton in tl?e Solomon islands (RAMSI) in rchabll~tarrngbasic rum1 rnfrastructurc and services (11.1 gartrck~tar,l~calth,crfucatlon, and transport infrastr~icttlrc),r~tral littlrf.tot~dshate derencrraccd nith r~iuct~to be dcrne to relive the rum1 cccrrTomy. The 2004 Pcact and Conflict itnnlysis? found that the shortage and ~r~lhaXanccin access cogovernment ser\rees artd to incon~e- carning opportuntttes contributed ctlthe 191)r)-21103 'S'cnsxorts. Since then, the slow recotcry o h h c ccoltomy cctrrthillcd with the ~indertnses$r~~cntin rural scri*tccsar?d tt~frastruccurehase continued to generate octal d~sconfcl~f.Short-term or pcmanent migration to EXonlara has had lim~tcdtrrekle 4ov.n cfb!i.cts an thc rtort ecutiorny and remains a pcstet~t~alsource of soctaX eonfXicrs. Idand tenure ~ s ~ t rand po.t.ertlancc tn the fhresc sector fiat e alsu contributed c s ctl stlctal pressures. 3. There is (1 I I E " L " ~ to ir~fpml*ethe carrr~sistcvtcy{~jrriejfici~"rrqyc!f oirguittg ef@~rfs.fn the aficrr.t~atl?of the 'Icnstonh, reconstruction and rchtxbiliraclon cffhrrs hate lcgictr~~cttefyhecrt ijirecrcd to1kar.d tmttledtatc needs 1~3thless ~fnphastsuti sustainabtlity. Qrxcstrons about tlic tranhparoncy, efficiency, and con:,istertcy of those cflbrts hale en~crgcci. 22 longer.-term pcrspectrt.~rs itccded to cnsurc that rural dc~*elopmc.ntresources are used ~;lrictcnrlyand Icad ra better and ruhta~nc~blc oiicctrnzes 117terms of r~iralt eltttt~ods. In parrleular, ~ t 11Itclrt+tttllrfhc rfttrtcrl!ucr'ttrtl!~''cx^rrtpi.ct~~t.t ~ ~ t t l trttputtr c!f i*tri.irl tli.r.t+fiq~,~tcnt q[/hrr.5 ~tsirhhrcuisrr'rtg cviprrc'to'tcirrr' r.c?i;orrrrtrtrinsfrrtiitf?: .4ffrfci~r~f~il ' ~tt'totm he tl,\~,t/ ~ l t t f i ' ~ ~ :ieitf(tt')I he ~Zgrttlft~ircand Ktiral Flescf opmerit Strategy {tZRE)S) cpt.tzcnt [Sugdcn, 2ff06f;rcccxlt work condurtcd undcr ZIC' aird Ai~sAifZ-t>~xanccdprojects on forestrj, rcccxri t-iurhrtn rural iklar~ce(C'BSI, 21105); tsork at1 private sccttsr det elapmctrt (ADB, 2005);tlzc Sationaf ' ~ ' ~ I E S P O T ~ PXdtf (SIG, 2OOrjbf: %orL by L'NFIP and AlrsAID on proti~ncialyoventrTtents, rri ietvs of the ?;fIRfZII12; and tiocuments prepax'cd by tlzc SlG Xfigh-1ct.c.l fask f'orccs xn 2fl113 tlftf4,Kefcx'cxrccs are provltfed at tlrc errti of this dncumtnt. All prot itfces tvcre vtstted, t\lzfithe e ~ c e p t ~ x wl'cmotu prtltiticc due ro loglsricnl prohlcnxs, Q f ~ X O A C I ~ S , Ten~tftureprcsctltstit el; %errcctxtsuXteii xn I lortxara. Solomon Islands Agriculture and Rural Development Strategy (ARDS): B~ildingI,acrtl Foundations for Rural Development '1. 'f'itc Strlornon fhlands has abundant natural rcsuirrccs that haic pro.rtded subsistence lrvcllhot>ds fikr rt pupulatton of apprux~n~atcly $OfJ,00tl people. tlntit rclattt~elyrecently, resourcc manapemcrtt ttas not been an ~SSUC,Clvcr the past I'e.sr+decades. hart ctver,the resource base has bccft degraded and the small ncrrt-thrnr?econcrnzy has ELtrlcd to gcrtcratc jobs and der-rtand fbr rural prodttcts, IVhife p~thlicprtlrcy has recognized t1.1~r~ccdfur attention to candtttons In the rural ccrsnom~,actual . eupcrtdlturc from both domestti: and donor resources has generally bccft tbcuscd efseivhere. Tlt~shas led to a loss of ca~tSXenceIn Ciovcmmcnt, both at natlonal and local tct.el, escmpllfled dttrrng the ;fc.,ifsioit.\ ( 18(313-20t13).' With kn cxceptlons, doritrr' cf'fcrrts have also becn unable tu strrntrlatc s~gnlficanrr ~ ~ rdevelopment tl~ritlasts beyond the rt'lter.rc"ntitrrtpcnod. Clearly. a nutv approach ts a l nssded. 2. T/w 1rttpnr.r of tire Tensioxrs of? tltcf cnutrirj Itflu b~etrprf~for~ad. 'Ihcre hate been many acllie~emc.t'ttssince 2003. f,aw and order %asrestored after the arrival of the Replonal t"ts1stancc Svrlsslon in the Soltsrnon Islands (RAMS]). A sound nzacroecunorttlc hi.amcwork is rn place. Ifealth at~dcifticat~trriarid SCITTIC transport rnfrastructur'c ha\^ bccn rchabilltared. 'I'he smallholder agriculrurc sector is re,itftet'tt and hrtetronlny. Elou eiw, gross cSrtmtstle product fCiI3I" per capita trt the So1omt)it Islands xs still ts5.o-thirds of its prc-ccrnfllct lc!*el and the lotvest of' Pacific lsland cotint~ies. 'f'he 'I'ensrorzs haie exacerbated some t.tf the issues alrcaily crnergrng in the precedrrtg ycarx --Ilt"ing standards In many r~tralareas h a ~ degraded due 10 coristr.srncd access to basic rural servlces 2nd r intfastrtscture and the disrtiptiott of'~?mrkctirtgchannels. Lbublicresources fur rural dc.tclopnzent hai*c cfccrcascd lirllowxng the dcterttrratlon of tftc general fiscal position. Ktlraf agcr?cic.shave bccn hca.i.ify hit by fhosc budget cuts. 'I'hcrc are issues tutlif the quality USgrut.rt'ft --a growth based to a large extent upon urtsuslatftabEc natural fortst lopg~ngmlcs: a growth that has not created srpntticant cn~plotnr?cntfirr a fast proit lnp. ytsuny i~opulatton.An estrmaccd 10 percent of the popufatton ivas beloit rtpc 15 In 2001t. 3. T11aGrri~c~xrrneatrfSolomria Isltz~.rarf~s xtrade rrriral dcfi~eZopmrtttits prioriw, Prcrgrcss rn lrns rtlral devt'lopmcnt ti ill be a bullding block for lasting pcacc and stabtl~ty,Tlrerc arc hon cr.cr nzany esanzplcs af failed Inrttatlvcs rn pt~bltcsupport of' rural do~elc7prmenta\cr the post decade. 'I'o address past sveakncsst.s, the Government kt ors a nzure dcccntm1i;rcdapproach fa rtiral devclupmcnt .ttxth a firctss tm local cconrtn2ic de~.eloy.sn'tent,tncludlrtg rt greater rnvolr~emcrrtof rural ctrmnzunittcs in deciiion~on It?cal dcvelopn~citt("bottonr-up approach") and bnnging rtiral set7'~ces~Iuscrto rural conlr7lunxtltts (de.rolvlng respc~nsrbrl~t~c~"to the perxpttcry"). ,4 broad rehrnm program In natural resources managcrttcnt 1s also cn~isagedrvtth a li>ctis on mtxc susta1ttahIe ~tscof ff~ccountry's resources and grciztcr litcnefits fhr rural cummttnltics (the resource otvrtcrs). 4. Sc/c~+tirfi{~treerictrl, '['he needs arc rnarty, Capucrty and resources to address then? is rslf l rer-rlaln l~rnttecltrt tht rncdlurn tern?. Utff'ficttlt choices milst be made uith regard to the focus and Ictct uf pubtrc support for rural de.t"clopmcnt. Not c!peryrhlng can be addressed at once and consideratiot.1 has to bc gtven to tfx most approjsrlate sequencing of refbrms and in~cstn~enrs,taking mtc. account recent soctal and eoonotillc dct clopt.t.tents.A long-tcmt visxun of.rvhal can bc achtcr.ed 1s also necdcd to inform xrnmedrate decisrons and avald underminrng long-term prospects otrcrthe berte"iit of sf~ctrl-terngatns. 5. Slli.utegic?sfijr rtlrul r!er*c?luptfrerrtattd rural gm,r*tir rteed tu go beyomi it~tprurfirtg ugrjcultt~rulpr<~didrtivify.tt'hi le agrrcultiirc it iIt csnctnue to play a major rufc in terms ctF rncorne generation and cnzployrnent clpporrunstlcs, nlany other snrerlinkrng factors hasc tct be considered to brmg about structural change rn thc ccunorny. Improse suciaf ~rtfrastructurt',ar~dgencrittc rnconie. 1 he Solon~snIslands i2yrrctifturc and Kural I3evelnpr.t1e1ltSttafegy (tZK13S) go begcrnd agrtcuflttral ~ssucsru rrcteh ct broader vtctv of the prrurirles for the dc.rc1opmcnt of rut-at areas. Efonc~er,thc ARDS at rhrs stage has nut dealt wsrth cdttcatson, health. and social protection rr-I rural areas. 'f'hese issues are bang co\ cred through othcr uurk corrtplumontary to the ARIIS. 6. The ccrunivjv'.sriclt r~.sot.ourcebase arrd resilient agricrrlrlrre srctur provide tire fonadatiun fiw rural growth. More sustasnatnlc and inclt~ssvegrot~chcould he achieved. In the short to 111edluim Icrrr7. the rural cconunly tkould contribute Sncreasiitgly to tnorc ~nclus~vegroul'it and employment crcltti011 ~f cot~st~arnf~ prlt'atc scctt)r tnvcslm~nts BIC ltncd through a supporcri*e policy 10 entvimnment:investments are made in ruril ~t~f'ri~tructtrrcz,utilitrczs and sert ~ c eand: suppart scrt.iccs ~ are provided far smallholder producers and growers. In the nlcdium tcr tony tcrn~,broader institutiortltf strczt~gthertingtirll be ricedcd to support focal desclopmcnt beyotltd danar-supprtaed intt.n*enttons..And progress nlust be made to sort out land and natural resource tmanagemcnt rssucs. 7 . Slfur~ieratpriorities rteed tu rake htcr cnrrs$~/~?rariunrhe innpacr r?f'rlrecivil corrJ7ict. f r ithe short to 121cdrumterm, focus 1s ~ ~ c c dund acttv~trcsarid tt~ttri'ct~t~onsth31 noufd nirfftmr/e tl~crlsk of e recurrent conflrct and pron?otc sociaf cohcsicrn. 'f'hey should also address st,mc. of' the rcmotitlng causes of the Tetlsions, includirrg the lack of transparency sn the allocarion of' public rcsourccs and the lack ol'pubfrc ~n\.tstrttenttn rural dcscloprftct~t.AncI fcfcuson the qualtty ut"yrusr,th should help to generate much needed en~playmcntand income-yencrating oppcsrtunlries. Iiat ing dealt 11irh the conflrcts of the country's recent history, rural households express thcsr priorrties it1 tcrrns rtt' ci?ntinuecf peace and sczcunty, 1n1pro'~'ed1~)calgovernan~eand rural sen scc dcl~teryand access to regular sources of income-generating oi?pt>rtunities. Three Priorities for Rural <:rowth and Exx~pluynlentI;encratlun 8. ?hc Government fijrcsces responding to rtiral Solonlon islanders by fiscusing on three areas: (a) local participation of rural communities in cctsnorrttc dcvelopmct~t, includtt~y through strengthcnrt~gpro\ inctrtl go-tc.mrncn.ts: (b) supporting agtculturc, ~nfiastruct~irrand rural finance sertrices: and (c) rmprovrng the management and sustainabillty o f t h e ctruntry's rtch rtat~irot resources. To ach1c.rc the crbjcettves of'these three closely ltnkcd areas, the rZSZ1>Shas rc\ re\\ C C 5%1181 ~ could be achlc~edIn the nzcdin~xterm (2111 1 hori~ort)and loriger term 12020 horl/an), and hot1 it could be achieved. 9. Improving local governance atld ser~iuedelivery u $11support r~trat th dircctly arrd indirectly. It responds to rural households demand far greater paflicipation rn economic devcfopmct~t and dcctstcrn making, and more tsattsgarct~cyand accountrtlz~lttyof-puhE~cspcndtttg, xncludrng at the Iocal Icrpel. iVopcrly rcsourccd and ~ c f l - f u ~ ~ ~ t ifocal~ tgoscmtl.tents could provide the o ~ i ~ g ~r~dispcnsabfccorinccttotl hcltvccn rural conrmuntrtcs and the Ccnlrnt Go5crnmcnt ivhtlc ttttprot itlg serv~cedelivery In rural areas and contrihtiting to a more favorable tn\+csft??entcl!niate. 'f'he Solomon tslarlds ~lccctsto strcf'itgrhcrtits xuattottal irtstitutions and systems and gradually build their capacity to ciclxvcr cntlcal public services and infiasrructurc 111rural areas. Iff, Makj~rgbarer use t?fbptihlicrc?sorrwmJiir rum! devrltlpfrretrr:strengtliertitzg Gt~ver~lnre~tt fystlirtrs. Available resources could be used rn a nzorc transparent and ci'ficicnt tlmmcr Stlppcsrt Sitlotrratt /.tfrtrzrb ARDS Rttlirl'trrg frtcttfir)ittrittitrrirttrs fort.tit+irfrk>~'efqtrtrctrt from ccntra'f ager~clcsrs rcyttircd to in~proscpIarin~ngand hudgctrrtg systems, both in sector agcrtcrcs and tn the prctsinccs. Predictable resources arc needed to t.t~ctscavay from ad hoc, ~titcoordinatcd rural development i1t\es1r77e~ltsat tht 10taI lesc.1 and totyard rlttrre cfficicftt, consistent, and sustatnahle local dct"clcrpn?entit~~tiatr.rcs. rhtx .)ltote!to r~rclfitritiIci'rrt,thts could be achict cd Xocalfy fri by strengthening s ~ n ~ p lj3tXrttcipatt,rq planrtrny processes an the basxs of a predtctable rcsoLtrce c ent elope. 'Tills could be done at the proipincial level snd Xcrxcr le\"el (dependtng on the governance strucrtlre and s i x of 'the province, for esarrtplc). For Go.~.cmrncncarid donors, tttrs \vottld also rtwctn rmpro\ tng the traniparenty of resources allocation arid thcir alignment tvitfi locally tdcntified and natranal prrc)ritles. Xrnproring hudget processes and exectition st trufd have ro accompany tlxosc efforts. frl rhc iitccfittnt to frtitg ttxi.ttf, broader retirrnis ofthe planni~gand budyctlng processes could bc sought, tncludirtg the insttttitiostali/;aI~onof focal planning, the rntcgrntion of the recurrent arid development bttdgct, arid the use of a mediutn-term cspendlture Srametvork to guide inter-annrral resource tlt locat~ctris. 1 1. Iftxprcrrtud rural .sc?rrice delr'r*er~.mee/ta/ti.sm?;. Senrice del~vcsqrtsill remain cxfscns1r.c particularl> In nlrtrc remote areas, and hard chorccs nocd tts he nlade rn terms of tfic le\el of sert rce that can he prot ldcd lkom public re~ource~, 1ltc2 fit ~ l t ~ t f r r o tltcriitirrt rernr, because of insufficient cctpacrty and scarce resutirces, strcngthcning parcncrshlps among publsc scctor agencies, the prnratc sector, ar~dnongrtscmmcntal aryanl7atlotis (h'GOs) 1s likely to be the mctst cffi'fictcrtttvay to improve scr.ticc del~tery.'Ihts t\outd start by cfarrfyiny tihlch 5ert tccs can be outsourced and ivhrcl~arc hcttcr prosrcied by the private sector (or N(;Osj: and re-tbccisrng public agencses on core public litnctitrns, as is being Jonc by the M~nistryof' Infrastructure f)c\.cloprrzent. All partners ttould itccd tc? b~ttttJcapacity. artd potential sertlcc pro\.~dcrslvauld be identifled along wrth tfterr skllls and capacity, fit the irttitt'itrnr ro frtitg fei*rir, tho gradual introductron of user-pay systems nvouIdcontribtltc to thc flnanctctf sustoinahil~cyaFscr\,ice dclt-icry. 17. Aswtri~~f: tlie l i ~ f k q ~n. ~ t i t ~N!!g sttzk.ekol~!x I,ocaf go\ ernments, strcnythened and s accountable to local eommur'tities, w~lfbe needed to ensure coordinateii ser.irlccpru.ttislon in rural areas. 'I'hts cttn be done through rmproted 11t1kayes bctnccn provincial poverntments and rural ccsmt?Turt~trcs, as rt ell as central agencies and pro\ incral governments. lit rite .sltri.rt-frt irtt"tfitrt?t-r~i*r;il, pro.trinc~aIgcncrrmcnts rntist habc clartfictltion of their spcclfit: respor~srbifityfor serv~ccdcltr cry. 'I'hcir caprrcity to trnplemcnt these f~tncrionss h o ~ ~bed made adequate. And all pmtt'?erhf'tipsi\rth l secttlr agencies fat natrunftl 1c-telf and sstth sen ice pra\ iden (comm~tr~rty-basedur prrtatc scctor at the locat lc\ cl) sf.trruld bc strengthened. Kcsource transfi'rs to prot"tncla1 gcr\*cmmcnts ~vouldbc increased 3s tf~ctrctlpacrt> fix serstcc delir,cry is httilt. I'rr~gressis c.tipccted to bc ~tncverltn d~tr'crent prarrinccs, nnd support rrtrrttld ha5.e to bc tailored to thcir' rospcetive situation and needs. 'I'he possrbrftry tcr cfirccrly int.ol.i.e communities rt? the nlanagcriitnt of sitlaye dc\.elopment resources \\auld also he tested. fit fltr nttciiiini- ~ r fctirg-r-lcwt,lcrcal governance refon~~scould he cortsolidnted t in panicular through whole-of-go.;rrnt?'tent cnxl scrsicc rcforn~and consolidation of the fiscal prtsrtton of Xc~calgot~crnn~cttts. Sltppsrfittgtire local ecrrrtortty:rttore i~iclrt~i~r~ growth 13. A mcrre iftclttsrve and sustainable grot\ th path tyrll be an rrllportant rrtgrcdrertt of susttt~nlsblc rural de\clopment. 'I'hc current grotsth path, fueled to a great extent by unsustainable Iogp~ngof natural hrcsts, ftas not tmpro-tcd the 1i.t~elihoodsof a majority of thc rural populaticsn, In the short to ti~edritn~term, groitrth and ornpluynzcnt gencratron wrll halve tc:, be generated in the agrict~ltttreand 1r2f'ornlal scctor in view o r itmired czppurtuntt~cs173 ocher sectors, in rural areas, prrvatc sector devcloprntnt and agrrcultwal development ~vr11 be closely Irnkccf. Realrzrng thss gotcntrftl tvrll requrre addrcsstnp the ~r~imcdiateconstrarnrs faced by rhe scctor - access to rcfiahle and affordable trsnsportatltttl, teteuc~mrm~tntcalron,and energy Infmstrttcturc and scrsrlccS: agrt~ufturaX support stri tees; and a conducivt. policy cnrplronmcnt. Iftthe longer tern?, it is trnltkcly that the rciral econcrnty alone t t l l lbc able ttt ahsorb the increased entrants rrt. the labor txarket. Cirot\tt.t xn othct' sectors xt rtl be needed. 14. Sl4ppol.ritte erutjn~ticpolicy vcfintss. A rcvtew oS key pcrlicres dtrecf ly af'fccrsrtg rural cconorrtxe descfoprrtet~rshons that some of them are avttialty constrainltzg rum1 grot\ 113. ftz titc sltc>i.t (O ~t~editli~tIC'E'IE~, the contrntiaft~nof targetctd reforms rcr address those pofrcres with negati\"c ttrtpact on rttral in~estntent(and growth) needs to be sought. 'Shts would Include the rctgulatitrn of'ulxlrtrcs and tftat of shipfsrny:sen tccs: taxatron arid lhc tr'adc tax rcgrme: and business rcgulattunb, 15. Ft~crrsedn;rl~icultnt.nlsntpporx services ,ospo~r.siv~to !oral dmtzarrd. Irtstltutluns supporting the agriculture sector have been partrcularly affected by thc country's recent histor)., and rebuilding tttcm will be a long-term prcrccss. Itr the sltctr.r to nlctfiunt tciefrt,early results could be achtcsed by fovusing effc~~tson responding to in~rnedlareneeds cxprcsscd tn the pro\+lnces,rather than embarking up-.l'rtsnr on broad tr.tsrtturlonal rtfi)f~?tbxn fhc Mlnlstry of'.rZgr~c~ilture itnd Lit cstock or top-dotvn prograrnmlng s f resources as done rn the past. Strcngtttcntr~gcapacrry 2nd resources fhr the local-Ievcl dctlr~rryof' agrtcttlturc services is llkely trs be nzore rflicrcrlt tharl cc.r~trali~cd agrtculturc scrvlcc dcltvcry. Dcvclop~ngpartncrshsps ttlth the private sector s\rill be crrlxcal for tt~arkctaccess and development. E'rionty it auld also be g1r.t.n to strcx~gll~crixngsanrtaty and phyto- sanrcary safeguards to protect the Solomon Islands' agriculture in kie~s~3ftnereased risks as prctdutttcrrt arid trade ~tftensi~ie~.Finally, the dll'filsion trf inntr~atronto rtrral producers, mnklng use in partjctliar of those readrly avatlable in rhc region through the cxxsttrtg network oSscrtrec' I'troviders (and cmcrgtrtg prctf'essxctttal assoctatronuf, st ould produce early results. lit fhtj irlerfiirnim lrtit~ttr*ift. broader il~sritutionrxlrcrbrms within rhc Minxstry of Agrxcufture and 1,tscstcrak could bc cn~rsagcd,as pnonrlcs tirr puhlxc agrrculturc support are Surlhcr defined snd as human resrstrrcc ~ssucsarc gradually addressccf in the sector. 16. ftrtpruved ratraJ irrfrrtslrrlctrrrc? b rr aecessary cojrditicrn ji,r rural dertr.)c)p~rerit. fmprotrng access to reIiahlc and affordable rural inti-astructurc scrtlces (tsartsportat~sn, tefecnmn~unicarions,and energy scturccs) is a central pillar of a n~rafgrottl1-t stratc'gy, tt is also a strcrng prlorxty expressed by rural houscttt~lds,Irt rltu ,sliiti.r fn ~rtetfitinrtcr.,~,more coordtnarcd and strtttegic r~tr,cstmcrttsin transport inkastrticture are expected through the tr.ttplcmcrttarton oS the National 'f'ransport Plan. 'f'he tmpro.t.cnzcfttof ~rttcr-islandsi-rrppingser\.ices is a high prior~tyfar the rtlarkettng of rciral products: hotvebcr, careftif considc.ratton shot~ldbe gscn to inccnrrves ~ r tthe sectcrr. As in other countries, a revision oi' the regulatory cnt ~ro~tliic~tfrC)r the telccan?mur~icati~sn sector could ut~lockthe ~'tote~?lislfor nzorc ir~t~cstn~entsand growth In rural arcas. iZnd acccss to energy sources 1s a condrtton for the dt~ersificationof the rural ccctnomy tsngcd by chc Go\~emnitnl. 17. Pavi~jjtf,s ~vayfor file develrlses. 1S , Intpro~trtg the n?anagcn?entof*the country's rich nacurttl resources tt113 contnbutc to better local governance and sustainable groivth. l'nror yoircnmncc rn ttw forestry sector has contributed trr acute social {and cn!*ironmentaf) Issues tn some arcas and Jr4trust of' tratfrtronal and gos.ernmcnt snstlttltrons. tJnrcsolhed Xanti Issues affect ptlblrc and prtiratcirtvcstments tn rural areas. And, ttherr pressttrc 011 the ~ c ~ e ~ u1schigh, drsputcs f.taie rncrcascci. Better managenlent of land, forest, and r e tntlrtrtc resources could contribute to greater returns fix resoiirce otincrs, n~orcsustarnahle economrc grtst$pth,and rcdticed soctaf pressures. 1c3. Stlppst'tirrg tlte ndnpta.nrinrt crflaad teaare sjlstetrrs:a carttiorrs appyoack tcr laljd refiit*?tt.s. lit tlic shoj-t fo ~~t~~rfirftri'ni, a cuutraus, step-by-stcp appr~aclfto land lssucs rs needed as they r i r t rcmatit scnsrtlrec and the human resources ncctied to xn~plcn~enthruad rcfizrms arc nor yet at ailable. I\tibltc' dialogue and policy develol.tment nccds to bc rnf'ormcd by nlore research into crptiorts 10 rmpros.e tile I'unclton~ngof land markets ~vithautconlprotnrsing rhc sccurlty of' tenure under eustor.ttaty land crtvrtcrship. in-iprovrtlgthe rcsolutron ofthe backlog of land dis~t~ttcstvlll also be un tn-iportant contrrbutttrrr to soctal stability and future tnvustnicrtts In rurltf areas. Irt fhcirilctiitlfiifrt foitg rrnit,the consistency of'land pcslicies over time tsrff be art important fkctor to tmprovc the tnvestmcrtt clrn~atc.12 better resourced and tmrned land adn~snistratronus11 be needed to address the challenging land agenda. 'E'hls ct tll require a long-term conlmltmcnt hetitre signrfycantprogress results. 20. P~ep~rirrg the strrrctrrrnl clrarfgeitr the Jiirestcy secfor. Dire to tho c~ntinuation13f for unsustatnablc rates of loggrrtg. forccttsts tndlcate that cor~~mercrat chplaitable natural ftsrcst ly rcsourccs tvilX be fully depleted by the )car 21)XZ. tVrth those resources already under license, the scctnr tt.111he thctrtg a major restructuring 1x1the rnediun~term tonard plantation fbrestry, both taryc scale and t?) rt~lalIholdcrsft$tth thc expansion crl plantations at tl~e~rllagelevel sn custill;l.iaryfsnd tho 111tiin ~~TC)S&?CC~).,\ltoi? I j t the 10 ~~t~tftttilztcl'fiz,the se~forII C ~ C ~ S to prcparc far this transitson by strtngthcnrt~gthe capacity rri-the I%orestryAdntrntstratton to conduct its care Lirncttc3nsand to support the tr-ansrtrot~1t7 thc str~lctLtrcCI~*the forestry rndustry, sncfudlr~gat the focal fe\ cX. Broader cf'f'osts tcr strengthen gtrternance In chc sector, such cis Ir-nproJcd monitoring of fog exports, cotlfd sfso slot5 dotsn cusrcr~ttrends rxl lrsgging and increase bcneilts to both resuurcc oitttcrs and ttic nartonal ecot.tatl-ty. f+"inaXly, resource cunscrvalion and management snitiacrires intolviny rural conlmurtrrtcs could prat tde another avenue to respond to the ncud fc~rt~ctlerresource managcnzcnt and greater bcnclits at ttte local 1c.l-el. 21. Fi.s(.kcri~:!~rLs,V(lltuc*esrttnnagc.ttrent: loccrl urrcl irzrerrtarioiral partrterh5lrips.'S'hc potcntral cctntrxbutxrrtt crib t37c fisheries sectc3r tt3the rwal economy has not heen fiifly rcsfr~ed,'l'fic key to greater and more usr rain able fisf?criesrcsourcc contrtbutlort to the rural ccortonIy ivr13 be both local and tntcmarlortal. r2t the local Icvel, iit tltc. slzoi'f f'oi~ttdiitlttlft2i-t?t,~ticc~ssf~llress3urcc inanaycment rnltiatives rntalt*ing tocat comtt~unrtiesneed to bu prornotcd. and the capacity ol' local fkhenes oflicers to facifttatc them gradually burlt. Business management training needs to be protided to support pnvarc scctor trtvuf.i.ement. At national tevel, srrenyrhcning managenlent of' offshore fYsher~csrcsotlrccs tvilf be s long-tcnx prucess. wltich could start ts rih further prioritrxat~crrtof' tttc recommendatrons of' the 'I'una Managenlent and I)evelopmettr Plan Kevrcs,. Irr tlit loiigei' fci.?n, continued impro~cmcntofgor.ernance and institttrional rcf'om~sin the sector jvitl bo needed, as ucll as strortgcr invc'tls.emcrtlrrt rcgional coofsetat~trrtun resource mttrtsgemertt. T o ~ n r dImplcmcrrtntion and Kcstrlts on the Ground 22. 'fhc ccipactty and resuurccs of pro\.lnctal goscmments tary fiortt one province to another, as do cctsntsmrc prox~~thpotential and opporttinltlcs and local asplrat~onsand prtontios. Also the presence of NGOs and rftc prtsrntc sector and the status of rnkastrticture and scr.irrccsdrfkr frat?? one province to another. 'i'htssc differences have been relatively tvclE-documented. skhic1.t prtrvtdcs tlte foundnrtun fbr thc preparation ufl~ocafricxcfupnscnt ptttns uti the basrs ofa~~allahlcrcsourccs. tt'hlle the proposed approach under the ARI>S svould be valid ibr all provlnccs, i~tplct?~cntatlens~tsuld rcyuirc rts rrartslatlurt.Into local prlorxtxcs hascd on each pruv~ncc'sspccifycpotential and challcngcs. 23. f.ocali:iltg tire ARDS: ~r tirilt>redapprsuch itr eucR provi~trrce. St1bstantla1 rcsuurces art. cxpcctcd to be avnitablc In the short to medium term ta ~nsplcmenrthe priortttes tdcncitied in the AKt>S. iVrogrcss ts already under t%ayin addressing them. Soillc areas have bccn rifcntrfied; ho.itettr, where there are incclnsistencres in approaches, policies and further diologue arc 12cedt.dto resolve thosc dll'fi*crcnccsand ensure that resources arc not n asrcd through c011fl1~11tigcffcjrts. There arc examples &here pcltttttial ~unil~ctscould arise: the nay donor resources arc. programmed and channeled in the prtrvmces: the focus of agricultural extenston services: and the role of ttze public scctclr it11 regard to the provision ofrtlrsE fittance, t\ 24. .4RD$ Rr?rrcor~trrterrduriuns,t"ssummafy matrix tn Annex A detizils the proposcd prrclrity nctrons 111 rclatrct~itu stsnrfable resources, ongoing or pfartned nciv progsstt~~s,as tiell as ~peclfic responsrbllities of line agencies and other dcvelopmenr partners. 'The rccumn~cndcdactxcritsarc huttr upon achicvablc: objcct~tcs: Make better use of'ar.allabfc resources. * Strengthen planning Strciiythet-ipublic budgct~rtgprocess * Insprove public ikianciaf manugunlent Improve rural service defitcry i?lechan~sms. e Strctlgthen Iscat govemmetle * Screngtllcn conmlunity ~t~valt~emc.ncin local dctelopn2ent e Stret~gthenthe capacrty of the pnr.sce secccsr and NGC'ls to delilcr services Implement policies stlpposfivr crf rural de.i"elopn~enf. Focus oii ~~gnculturalsupport serirlces, Strcrtgthcn agrtctlltt~ralsector matjagemcnt * Facilitate the dtffusion and adoptjnn of inntrvacionat~dmarket development Strcrtgthert nyrrcultursf scctrtr skills improve acccss Cu rural Infrastrueture scrt~ccs. * tlpgrrtdc rural transportat~crn Expand access to tcfecomrtturtrcatruns * Facrf ttate acccss to rural crlcrgy supply have svay for Cffc dc.ire10pmettt o r r ~ ~ rfinance scrstccs, s l Suppot? the adai3tatir3n of land tenure systems. i3rcparclbr structuraX olisnges in the forestry scctc~r. Improve fisheries rcsaurccs nzanagement thrt.tilgh focal and ~ntt.mationalpnrrnerships 25. itfvrritvrixzgprope.s~artd docuirtc?ntirtg succr.sx. tZ sn~al set of indicartrrs to manttor l progress with the in~plctr~cntatiortof' the ARIIS cmd tct measure success ~ t l rc'ssohing agreed benchnzarks has bccn ~ncfudccixn rttc ARLIS. 1. 'I'ht. Solomon Islalsllds is a relatrvclj~small county with a pnpulatton ohpprowrrrtatcly 0.5 million people. It has a small, rural economy relylng izn rich natural resources, Approxtr?.iately 12 percent of ~ t sland ts classlficd as agnculturat and 80 percent as forest. Mostly semr- ctihslstct~ceapiculttirc pmtbrdcts the Ir2comc has13 Ibr most of' the poptitatran (an estimated 84 percent), represents aver a third of gross domcstrc product (GDP), anct sorscs as ths msit? t.mplsymenc and safety net. ?'he resif~encsemr-subsistct~ceayrtcufturc sector is a sfrcrng asset for rural devcloprnenr, as tell as the rich natural resource endaanzent nfrhc countqr irts lartd, li~rcsts. mantle resources, and biodl.r.ersityf. Yet, tliose rcsourees hate failed to produce \tsxblc improvements in the livelrhoods of the ma*jonty of the population. C'lcarly, a rresv approach xs 11ecdcd. A. Recagnkirtg the chaflengesahead -. 3 ,Wifigatiftgsfuurtrrra!cotrsri.uhts, 'i'l?e Solonmr? Islands shares many of the challenges htcd by small-rslartcf ccottornics, l'itcy face rcrrtotcrlcss that results IIIhigh transportatrun costs and distance from rnain n~ctrkcts:higher cctst of' prcr\.xston 01' public goods per capita: fack of cttvcrsxfjcation of rite ccurtomy, due to srnaEl domestic markets and lotv prIv;xrc sector capactry: and openness, leaving the eccsnomg t+ulr~erablc external economic and enstranmental sflocks. to * I cr rrlittgalc structurctl cotzstraltzzs, the country needs to consider policies and rntrcstmcnts tfral ? redttct. the cissf of pro~islonof"pubfic goods (such as has~cserv1ct.s and ~nfrastrticture):i~duct. transpc.trtationcosts and facilitate ~ntegration~xitthmarkets: create a fiftorable tnjcstrnenc cltrnatc and l'acrl~tatectie d~versriicatlcrttof the economy through pritvatc~nt~estt~tcnt:and mitlgate the rxbks of natural l~axards. 'The rcsponsc in the past has bcen direct and heavy ttt.i'al~rcmcrttol' Gatemment in the productive sector. S~n~rlarto the rxpericnce of other eountnes, thrs has no1 produceil the expected rcsults alslld has proved unsttsrallsllnble. 3. TIw Solt~tfruaIslanrr's is ernergitrgfruxrr a period uf civil corzflict flraf Irr~sifad a tJt"c;p Jtrlpscr oxt the Pcotrorry. tasv and trrdcr have bccn restored nticr tho arrl\"al ts t' Reg~crnal Assistance h?lsstrsn in rhe Solomon islands (KAMSI) in 20C13. i'ropress has heen nude tn rc- cstablishlng the 'basic flnctrons of go! cmnzcttt, and the country 1s mut'tng from pusl-crsnff tct rccctnstrtlctlon to longer-term dcvelopnzenc planning. IILIILCI*~~nftastr~tctureand bct~lcscrttcc ~ . dcliterg have not bccn fully scsttsrcd. 'Ihc pmductinn and marketing of' agric~tlruralexport cot~?n?sdlties(011palm, copra, and cocoa) arc hclutv thcrr late-1990 Ictvcls. l h c f'ishcrtos sector and the enxrging tourrsnz industry have also bcen substantially af'fectccf arid have yet tcr recoscr fully, J;ifiaXly, the porrnd of Tcnsxot~s"( 1099-2003] %as accompanied by the acceIeration uf lagging of natural forests to lcs*els that have rcact~edfour times the sustatt~abltle\c1. 'Ihc cconomy has contracted; combined with rapld pcrpulatinn growth, GIIP pw capita rs stiII tno- fhirdsof its pre-conff~ctlcvcl and the lowcst of all Pacrfic island countnos. 4. perr'od r?f' "Tetfsisas"itus also hsJ u prt~fucrrrdsocial irttpacl. 'Ihc country sitarcs some of' tttc charactcsrsttcs of 11s h4fctanesian neighbors, including rapid po~~~llatitrl~growth and conrmunafly focused cultural nornzs inllucnctnp assct utsnersl~rp(80 percent of thc land xs custcrmnry otvned), cconorr.ttc rnobrl~ty,and governance. 'I'he ctsri cnntttct has aficrcd trust in the rclaftscfy young state rnstrtuftons -gotemt.t.tcnt and fhrmal----and exacerbated got'en~ance irsties assocratecj tvith natural rcsrlurces management. partrcularly land and hresr resources. Irt tile aficrmatf~elf the 'fcrlsions, rural households have expressed a strong demand for grcarcr parrtciiJarictn in local dcctsron taking and fur ~.t.tctn:dc~rtltitianofdcc~stonwaktng authority to thc local leiel. 'iherc rs also a demand fix more balanced regional dc~clopmcntand CLJUIIand ~ transparency in the allocat~onof'ptsbltc rcsourctls for focalcIevclopment. 5. P<)picZt~fioxtgrcrrrftifi.s citte rfflrt"ki,gkt.st itr ffrri' ~egio~r, 2.8 percent grot$th per arrnlifn. At thc popt~lottonrvtll double svithin a gencratron. Population grot\ th is putt~ngpressure on natural rescrtirces: rncrensrng the demattd for basic ser~ices:and incrcasxng the necd for employment creatltrr?, particutsrly for young pertplc. Apptox~mately75 percent of tho total population of qourtg pcnple (approstmately (32,000 people) is not attertdlng school or f~irchcreductition. Thrs large group. ages 15 to 29, has t~igtlasprralions that are not berng rnct by the education systertt, 6. As tlie Sekorrruit Islarxds rakes cfnc+itkook ai I ? X&%+elriparerrr,fftesccurxsfrl~iirfsfterri ~ to he crr?t,~irErclutl,It' tkcy arc overlooked, they tvill affect the contlrtuatxotl of*peace and sfab~frty. "Bustxtcss as ustial" rs ~~nftkclyto lead tcs the Jcvefopmertt outcomes ccs u l~ichScrlor~~ot~IsEancJcrs asptre. &. Ruraf incames and livelihoods in transition 7. 'E'he rt~rafeconomy licts seen fmxl hetfeiit~fro123 ~rb;\ndevelopment. Rttrttf 11sclrhouds rcrT1alt.t largely dependent on agriculturc: fisherrcs: and forestry: as tsefl as infornlal, small-scale c'ucrnomrc aet~i,rt~cs. In contrast isith the Iargc-scale plancatron sector, scmi-stlbslstencc agriculture, tvhtch Itrot tdes fit"c1thonds li-xr 95 percent of thc rural population, has shosvn its rcs~Xxcnccand has been both 1f.t~111otnsaf;L*tynet and the backbone of' tttc ccnnomy oier the past years. C'ast1 rnccmc and sutxrstence agtlculture arc thc f l t i i tpilt'tir:~of suhtarnable Irscftf-toods. 'E'hcy aften complement each crtl~cr. 1fousehofd lrt elihood stratugtcs xn%'of-\rnzultrple goal actrtrt~es,SOMC of' tsttxch cont~ibtlteto the creation of phystcaf capital while other:, respond to soc~nlgcrals. Brttl~are inyTsrtartt anci tnrerdepcndcnt. Yonetheless thcte 1s n clear and strong cles~rcat.tlnng r ~ ~ r apcnple for increased cash trtcomcs bttt hrgh frustration at the lack of l opportunities. 8. RttmZ-rrrhnxl irtrortre gap iiat;e tferelrjped 'Ti-tc ctsncentratron t3f Invtlsfmer.ttb and employment opport~tlfitiesin IXonxara and thc C;~tadalcar?atplarrts has rosultcd in a httge rural- urban income gap.'kural incomes and cunsurr.tprton le\vclsarc yenitrally foiv, nluch lotwr that tJ?nsc111 t1rhar.t areas: artd there arc impor"tantvariatictns bettveen prot rnces ar.tciwlthtn pm~inccs." (3, h o d sectcrl@ is gexrc?ml{y*at art &site ulifinf~girsome areas cive rctrc/erst~es~s. O~crall "iond pmduction has hccn able to kcel:, pace 1~1thsaprd prspularion gronth, thrntigh consrdcrabfe tntcrtsriicnt~rrrtrs"iand use. 'I'here are euceptions in arcas of' cJ~flicuttor vulfterable pbsical :tt dera~letfiicscrxptiorr of thc sl17;tllholdcragrlctrttuse econoniy is pro1 ided Inkhe SntallftoIcJer Ayncultttrc. Study fAusAiD, 2tffi5): and slt.terrecent i~orhs,like People a:t tho Edge {(KGA,2005). 'Theaterageix-ictrrnexi1Ifctnxara fitr Solortxonfs1nndct.s.tr,nsSfSI,I.tI per n~ox~tft f (305).In rum1areas. thc in olcrzgc ntnnff~l>tncnntc ifas S1$694. jIJND13, 20ff2). Tfie Ifonrehold Income ant! Espend~tureSkrriey (SISO. 201IGf firur~dcorrTtinlptlon fevcls {asa pro.ry fbr incttntef kticr to three tixlres hig11t.ritxXfrtntaro ctmpared to rural areas. Gitti cocificxcnts, calclilateii at rtaltoxral 1e1eX and in tttc provinces, sfiaucd greatt't' rncyual~ttrl;ut incsnles irt tht. prostnccs, 'k~jihsttn,Jansetl. Fsa~iliu,ZOO6 Yikjintttt f.t/u/rtb..lflDS Brttltlr/tgfo~tri fotrrtrlrr~~ttit~t rt/i+tr/ j&r. rfrtr~ft>pntrtrf erit tronnlctits (for csal~~plc,tt'cotttcr coast and rttctllsf or tshen populatlnn pressure crftland 1s hlgh 2nd no!\ drFfYct~ltieshave emerged (ffcclinil~gfertllitj, increased pcsr and drseasc inctdcnccf. I,crggxng ftas also reduced the avarl~bilityof suxtcthfr land "ior food gardens In ?*OIITC fucatfons. creating concerns about kiturc kjod sec~tntyIn those areas. 10. Siln,it-trrrtt orpertlruncrrratigt*afiorris hcreasritg[t' tlte rhosert respurtsc., Xn m a s ~shcrc istrpuXcttxoit pressure rs high crr \t.ficrc tx~corne-gcncmrtrrgopportunrtics are restralrled by lack crf access to markets, pcoplc mtyratc for short term or pcmlancntly. For csamplc. Ihcr-c arc indications tttat, nut ctf a populatrort of apgrosrntxtcly 9.0011, only 2,0110 pct>pte reside on a permanent basts in Kcnnell and f3ellctno E"ro\lincc. Iioivt.ver, these migrntlon flows hate l-rrtd Ilmlrcd tr~ckledonn cffccts on the rural economy, ulth llrtle e~rdctxeethat rcrrtrrlartccs f?ate ccmtnburcd to rural ~t.t\.cstmenrs.'" Tftcy have afscr bccn one tsf the ccrrttnhutrr-tg Factors to thc 'I erIsians, ~ r par~rcutar11-1 Guadalcnrial province. t 11. Etoerl rfgarketirrg is i ~ j t ittrporlcrnd *ad i/tcrert.siag sotme (J' ocrsk if8'rrccate.sf#r nxafiy l itccent t ~ o r kconfirmed trends icfc~lfrriedin the early t9t)t3s, tn particular the it11f30rfattcc of fbod gardens and fishing rn 1lc.eItttood srrategrcs, including as a source of cash f 1:igurc 1.1). 'I'hts has generally hccli tri crlouked 111 interventions to improve r-iiral ll\ cfihoods. f'hc lesel and dlvcrsi ficattun of' subslstoncr: and cash-carrtrng actisltics ts largclg dcterr.t~rr?edhy tllarkct access and physical ccrnslralnts, \\itth a greater reliance on natural rcscttlrccs (fist~crrcsand forestry) ltt pcrurly scr~icedareas. Contersely, despite the considerable puhltc support lirr rrcc culrisatrun, ~t rs grotvrt by less tfxan 10 pcrcerrc of rural households. 12. Tirrr c'o~ttril>rrficr~iuffurmtry to rwal li~*~ljhou[tsilifflcitlt to esti~iate. .^Ihc2006 i.s C'crmmunity Stspport l'rotgranz f Q'SI') Snapshot h~cftsurveyed 300 s.illagc,i in cotintry) tbtlnd that 3% percent of sillages reported lnconsc from ttrtlbcr and loggirll; ruyaltics, and 2I pcrccnr reported the o\vncrshrp of some p1antatiot.t forests, bi'hllc nu infnm.iatton on letcl of ~ncctmcis provtdcd. gcfteraE observations arc that frftlc logging rncnme nxokes its tvay to t.1l1agt.s(Btrx 1.1). 'I'here 1s onfj rare rc-int.estrner.~~in community Pdctlitlcs or exnploymcnr crcal~ngopporlunitres. Stnatllilolder ~~lantrttronsarc cstrwated to total approxlmatcly 5,30(J hectnres." With n~ostrecent plantrngs rn teak, they tsrll XI~XI conrrlbure signtklcantly to rural incomes for another f f years. I l lGthson. Jansct~,and Patrkrx. 7tff)b I I Aiist\lI), 2tltlGb: SISO 2C)flfr: Conrmtttrity Support Program (20061 " ttrest Slaixagcmcxlt i3t.qcct 11, Mny 2006 f y 13. Orr arerage, less firart III percerrr uf rlra ntriti pvprrlatiurt /?as mci~ssto ji:r~?trtltri cwtpir>y~t~'rtier~r,. ts littfc data a.t~ailahIeabout Inconles from 'Yhcrc sctfarrftal. non-Fan%r~irttlact1.ttttcs. W ~ t hftttle prosp~'ct~ the fitrrnal sector in the short to rncdit~n~term, crttploymunr creation s~111 tit hate to cornc from the tnfbrmal sector, primrtr~lyxn rural locatrons, and be drivrn by agrtcultirra3 productton at14 t~~arkettng. C, Finding new sources ofgrowth and empfaymentin rural areas 14. 'l'hc quality <)I" grusvth and ~ t capacity $0gcrtcratc emplayn~enfand income trt parrictslrir s oirtstrfc IIantara nil1 he critical firs the cnntinuczt~onof peace crncf srnbillty. 'I'he grcrn.th pcrbrmaitcs of* thc cconnmg hcfrjrc the 'Tenstat~swas poor. If has been argttecf that the slot54 gmuth that prcuedctf .the'Icnslons nlay actually have acccleratetl the crlsis. Real CsfllVailed to gron 1r-1 the htsr prcccdlng gears. Bcttsccn X 999 and 2002, the cit.11confllct rcsultcri t t ~ a drastic fa11 in cconttrtxc acttt rty. The rccol+erystarted srt 10t13, I Iusve.i.cr, because ofrapid popu1crtro~7 grtsrvth, the ("iI319er caprca has not hccn restorcd and reniatns at tit0-fh~rdsof' its 111tc-1990sIcveI. 'f"hcrcccnt gr~ttsth pattcnl also raises qucstrorts about the sustainability tsfcurrent trcnds, 1 5 . Ecorrurnicp~r$~~rttartct. ialprrkverl largei'yaafn rc~sr~lt rile ugstlkrtce r.@ stftnlliral~I~t* krts of agrierxltrrrz., attd flsiiirzg nndfhrestg. nctivifics. There has been little change in the str~icturcB C the economy ot cr the last dooadc and a ha1f. Ab~tculttirccor'itit~~iesto ~ C C U U Jfor~over one-third ~ of (2111'. iilecenc gro~t'tlireflected the rccw cry fronl the 'Tensions period, and has been cfri\.cn in part by strong crtpra, cocoa, and fish productian: but also, rnalrtly, by ~ir~susCarrtablyf-rtgltlevels ctl' loggrng nactkral fi)rchts, .hynculturc, forestry, and fishing accounted fhr over three-quarters ot'the tittal grtlrbth tn CiDP from f9q0 la 2005. Forestry accatintcd ftjr 40 pcrcent and agriculture h r approxlmatcly 30 percent (Figures 1.2 and 1.3). 'I'hc marn mcasurcd structural chnngc has hccn an increase tn the conrriburrcfnofforestry at the expense of other scrcrcos. fivr'gstrt.L2, GDPper cap& 15190-2005 IF*&PTCI 1.3?KCVI GBP by ,+ec~or1990-2(104 16. Sorrrre.~uufg~on~iirXlu~eto 'uefoi-irrdbgyorxd loggifrgrrfrxutrrralfu~c~srs. Rescnucs gum log export duties reprcsentcd about 14 percent of g~\cn(fn>t"~ltres~nuesand t.tctl-thirds of' tt3taI rratrctt~nlforeign exchange earnrngs 1122005. ^Ihe forestry sector ct'ttploycd an cb11~xated3,000 'tt) 4,tIOtl t\ctrkcrs (about Xtl percent of fosnsol crrrptaymorrtf. tl'escern I+oc.ince alorrc guncrated it8 percent. ot' log exports in 2fff)5. At village lei el, f?tztve\cr, es*idcnceof're-invcstmerlts of loggtng rctet~ucsxn bi~clafSCTVXCCSor productlt'c activttles 1s genrtrally scarce. l,t-tgglng is ongoing at upprtsxrnzaccly 1 mifliot~oublc meters per annunl, cyu1valt'r~tlo fbur ~tts~cs rhc" ~ u b f a ~ n ~ brat^. l e 'f'lte contlftuatlorr of that trend moans that the resorirce could be ehhaustcd by 2012 (f21g~trcf.4). I'he expected drop In Ibrestry sectctr rc\onucs and ttssocxnted cr~playn~cntand lncorr7c loss tn rural areas has bccn st ell drscumented. 'I'he plantntron sector could stiscalrt a yield of' 4O0,OOO uublc meters per annum btsf .tr.i13nut rlsc above the current praductian let el f(if),f100ctihic t~~ctcrs pcr ann~im)Lint11 2t120. Mtrtn~vlitle,sources or gru~s~h,crttploymer11, and go\ tmftlcnr tescnucs ~vtllharp to be fbund tn other sectors, 3 7. TIwe iras beerr litlri~edpro~ress rvixlr rhlr divei.,s.ificarir,nrjf eWvpurt.s,urrliircx crilrer Pacific islurrd counr~ies.'l'liis 1s due tn part to l~tphtrarrsport costs and limttcd prt\.atr: sector efopmcr~t. Agrrculcural exports hat,c rnttlrtty rellcd u t ~tEinle commodit.lcs:copra, cocoa and cnf lalrn. Log cxpiIapset3f the C'os~~modttyfCsporr Marketxng r"ttiI1orx ty (C'13Plit). '1'11e large majcxrrty nl' cntcrprtscs in r~tralSolumrtn Islands are inlit~.r.tlal. smalf. :tt7d tlllct'o cnteq~r~kc% trl notable euccptinrt 1s 11~ctourtsn~tndustry, tvhich 1s to a great tttcnt basccj in rttral areas of the coLttttr4 (53 percent ctt'the rooms hooked in 2000). Recent nark f AIdl3, 2005) has ~derttiiicda broad ranpc or itistrtutronaf and policy factctrs that art aff'cctifty pnr.nfc scctor det'elopmcnt . 2ff Zlryror$irr,gtJw qrrallfy rjfgrorr~tlt. 'f^oimpto\c the y~ialityof"gro!s*th and its ~nipacOR t + rtlral it t.elihactds, pr-iorrtrcs rncIudc tdenrlfying and addressing the key constmfncs that art af't'estlt~gthe dtscrs~ficationand detpenrng crf the rural tlconttr??}. D.Naturaf msources: the foundation of rural fivefihoods 31. Natural resttttrccb arc the main assets of rural l~ousel-tctlcisand the fbuftdarlon of their It~eI~hoads.About 2.2 rntllic-tn hcctares of' r~otirralforest colcr apprcrxin~atelySO perccr~lol'thc tcxur~lry'slaitti "osc. swart Sktrrn timber, ft~restccsntributron to rural l~\ctthoodsincludes other tree pmdttsts, such as fiber, fircwuud. foscf and rttcdiclne: and scn*ices,stich as shelter. sfixde, habitat far ildltfe, and ameitrtratio~?of soit fertif~tj'.Surreys of rural li\.clihoods eyer the past 15 years hale ecrr~sistcntlyshcr\~.cdthe in~pnrrancctrt' fishcries as rt safi'ty net ft~rrural htst~schnldsand a source crt' cash t ~ ~ c o t find . ~ ~ e5vrtf1 the cxcrptton crf diffktilt nrtt~iralcnl.ircrrimentsor areas of high pt.tpulsiinn presiurc, t~sditronaltat~rJnt;t.rlcrsttip arrnngcmcnts have prouded the basts ft~rthe rcstlicnt. scmr-s~rt7slstcnccagriculture sector. Natural resources are also of socluf atxi cuXtural iritportancc ktr rttrctf f~ousehrslds,fwpro.rtrtg thc rttanagcmcnt of nattlral rcsocirces .ts*ouldthcrefbrc ht. critical fix rural dc\"clopmenr, 22. Preeslrre oa nuturr;llresorrrces is agecfiitgeccinomic grorrtrlr arxd rurrrributirtg tu suc~r'al ccjnflirts. 'I'he increawd demand f0r land has resultcd rn the ~nrensik~caboftof land tihc and rcduccd rettrms to agriculture. In areas cxperlcnctng htgh letrels of popufatton pressure, thcrc is esidci~ceof rcduccd yrclds arid increased pests and discasc inctdencc. lZeduccd hllosv periods have generally aceampanred the expanston of land under shifting culric.arion. 'I'hts has restilted in forest clearance, trtcrcastd soil croslon, and loss of othcr uses of those fc)rcsrs. 'I'hc loss xn forest cover and valuc has accelerated through logging of natural forests and clcartrtg fbr agrrculturaf dct elopmertt. The bcnclFts of lfic raptrf and unsustalnablc espanslon of loygrt~ghai*onot accnlcd cyuitably fa rural conlnzunrties and there are numerous accounts of' xts negative social and cn\irot~mental irtlpacls, ~2ndof equal concern, there arc ~rtdlcatloristhat coastal fishcrics resources arc under stress.i" 33, TitP loss crf 'bicnliu~.~.sityatsd orher envimartteatafassets will teesrj.ltitl furegoae ecottrjtrtic upportrcrriric.~.The Solomon Islands comprlscs some of the most di~crseecosystcnss in tfic ~vorld. E3iadiversity and environmental cotTscrvatrott hut.ievcr hate received Irttle attention except titr a ti.\\ tttiltativcs. Apart from their unique envirtrnmcntal valtie, the degradation or loss of*rf-trtsc ecosystems also translate into direct losses lbr the economy 3s tkcy affect r~t~;tffl~clif~oc~dsand tho patentin1 fat-ttottrisn~dc~elopment(for cxamplt., Marctvo lagoon). 33. Hig1t ~~~sceptibilivtm rrrttirral disasfer.~lrrts tu be ralsea 3rtfo anccorirrr irr ifelttrlr?pnr~tzf platis, Because of ~ t sgcugraphleal tocation, the Solomon islands 1s pronc 10 cyclones, earthquakes, tsunanlis and ~olcanicactivity. t~ulnerab~lityto natural risks t aries among islands. 'I'cmotti and Rennell and Rellona f3rovinces arc partictilarly vulnerable to cyclones, and the rctf islands to Increasing sea levels or tsunamrs, In tfio absence of a strong capaclty to respond to disasters at national level, rural con~muniticshave to rely to a great extent on their own resources tt3 r-nrtnagc narurslt dlsrrslcrs. While the Yatxonal Disaster Management office xs trt charge of nzonltorrng those rrsks and coordinating any enzergency response, disaster risk rcducticrn and r~'tanagcrncitrneed to be ~nainsrreamedIn efforts to rehabilrtate local infiastructurc ar'td scrvrccs. 25. Rcvitiifixrg rsur~rnxiresottrees ~xxarragrerttrrtr. Addressrng the issues idet~ttlied a h \ c isrIl req~tlrf:a diffcre~7tresponse liom the past 2nd a gcnuinc fbcus on more susiatnable resotirccs managcn~cntpolicies, In particular, traditional resource nmnagcment. systems arc under stress duc to population pressure or external intertsentions such as ct~mmercrallogging or fisheries, E. Restorirtg rurafservices and infrastructure 26, ^l'htrc1s a tvidcly held victs rn the Solomort 3sIancis that thc quality arid coterapc ofrtiril sert ices and rnfrascrticturc has derericlrated over tl~epast decade. Of'thc 1,500 kif~rwni tle~~rlf~pttte!tthas crrwfr"rihutc)dto this shlrax'iart. Publlc funding ibr agrrculturc and rural development lrt2003'2004 had Calfen to less than half the feicls of' tl-tc early 1'790s (on a real, pcr head baslsj f~Alc~ning tltc gcnernl deter~oratic~nof' the country's f~scalpositton. The shore or public finance a1locarcd to rural services also dccIined %onz an aterrtgc 15 to 20 percent of'tt-rt budget in the early 1990s to asorrnd 10 percent in 20(131'2fTQ4(Sttgdcn, 21106f. This decrease nas eten sharper far prt>t.tncialgoiernmcnt rcsaurccs, tvhrck rasulted in stgnificant diffc.rcnccs tr~access to basic services and lnftastructure in r~itltl areas. 'I'he yuallt)*of publlc expenditures also dctcrioratcd with a smaller t7y0rkkrrce cancentt*atcd 117 EXtsniaro and core items, such as operation and matntcnartce costs In the field, gt\cn lrsn priority. ' I k s c ehctnpcs further tindermsnctX the dcI~seryof rural scr\frccs." 28. ,13irxt fire &oreitse it1 public. eevpet!difrtwsha?;bcefr home by rwai itff't*nstrrtrtitre- rctitk a share ctr,.retrr& bck~rt* pt"I*cerrfcrf' totai ~~rpmrtifilrea 5 Agr~cuJttlreand fishcries liasc cJccltitcd tcr approxrn~ately3 pcrcent t7yhlle forestry has remalned st 2 percent of'rhe total budget. I;ui~dtng far rciral stlrt'rccs from the prorrinces ts drfticult to estimate but appears to bc ltpprovrt~talcly t fts 2 percent of ot'erall government cxpendlttrres (Sugdeti, 2006). 39, Resorrrccs rira avaiiabk to rrttore i,$Fn.strilcfrrrr.nrd serr&+es.'I 'he mcciium-tern1 fiscal a~ttlook1spc>ittlst.and rndtcates that ssuffislcrtt ful'rits tvlfl be available to hear the one-off costs rsf rei7~rrIdtt1griiral seryiccs, parCs~'ufsr1yt i tt'tctv of htgh donor cumn~rtnlcnts(75 percent of (;Dl". fIcr.tx~e.tver,rhc rcbutldtny of rural servtccs need to take Into account less secure prospcers in the lotiger tcrn~(for exan~plc,by gradually intrucfttctrtg user-fccs to stjstatn fircurt" operation an~t n7aintcnanct.j. l~t~rtl~ernzorc,currcnr tssucs af*f"ecttngrural sert'tce tfeltvcry go beyond the lack of" finaftccsf see Secttor?F, ln$tittttronsand rosourccs for rural developmentf. 30, #%at ierwi ~g*.sert+iee rrrn he provir!ed basd urt ax*ajlableresnitrres? FSkpcrrcrtae rn cttha- cot1ntnc.s s h o ~lfirtt cfctctlvtng to local {sub-nattonal) ndmlr~istrationthe rcspor~stbtltrxcsand s rcsotjrccs fi)r rural tftlkastructiirc and sert ice de1itm-y can redtree casts and Improve accountahitlty to lrrcal ccriflmunttics. Stnlilar to ofhtr ct>tintrlcscon~poscdof'dtspcrsed islands, service Jelii*cry by local 1~2stttutionsis l~kcfyr c be more cost-efitccrvt tn the Solor~zonIslands (Box 1.2). There is ~ snccd to clstr14.rc~lcsand tdcntib xvh~cft.services are best delivered at the local Ictol (subsrdictrtty psnnciple). In addrtion, the drvottition ol'ildd~t~crnatfi~nctlonsto local go.tvernmentor cornnlunities ncccls tcr take into ~ ~ ~ ~ s i d c r localocapacity and to be accompanied by conimcrtsurittc a t ~ n re$OtdCt'S. C'areftil consrdcrattort also nccds to be g ien rcr fiscal stsstatnabif ~ty,in partictifar the ~ le.trcl crfrccurrcnt costs that can be affarded and how they tvottfd be financed III tl-rc rnectrun~to tong tern?. ^I"hrssfso tl?cans that a contmon undcrsrnndtng is needed regarding tvhat is consrdercd an equitable allcrccttion at' public resources at sub-nationaf levcl. based on rtgreed objectr~tcr~terict (iitcludrngpopulation, local cost of scrrvxccdeftvory, and capacity for lacof re\,cnue generatton). '' Ri~ra1wrviccs i n ZEI~Sdnc~it~terftinclude she productiittt-~trreat@dsers~ccspruttded to rural arcas ehclutiit.tg soclat scrsrccs flrexltfiat.trf educatlrtn), I'ltcy lrlcludc sllipplrlg artd road transport, tcfucon~mru~icatlons, prtt5cr suppl>. tsarcr supply rind sanltatlon, cxrcrtsiott and resrsrcf~scrtrccs and regulatory accivrrtcs provided for agricuIture,fis't~crresand ftlrestrqf. 31. The appmaclr rclill irorle ru Be raiiured to rlre .specific circbsrtl.stuncctxclJ'~aeh p~uvj!we. l'ro~inces vary tn term nf cl3eir ecunol~~tcpoientictl, their rcmotcricss and access tct markets, tlic cagctcrty crl focal (provrnclal) government, and the presence and lc~etof dm etrsprnent OF the prtcvtc sector and NGQs. 'f here arc. also inipurtrtnt vrtrxatxorts in natural crtdo.tlmcnts ntthln prot.~rtccs( h r csatnplc, the Weather coast of CSuadalcanal provincc compared to chc Northern plains: or the outer islands of Mrtfaila pruvlnce). Tfic rcsponsc in tcrnls of'sorvtce cfcll.tery ncccfh to bc ratlored to the speafic sirttation rsf each pro~inceor tsland. 'I'his rs better done through dci elopment planning that includes local pari~ctpaloryprocesses. F.tnsr"itutionsand resources farrural dr;velupmt;nt 32. ,I here art several arguments for increased Hlnding for nrral services in tI~cSolonron Islands: (af the poor Iescl of' support to tllc sectcrr o\ cr a lcrng penod of' ttmc, and the resultant backlog of tsork (notably fhr tnfrastructtire devi.1opnient and nialncenance); (b) the role that imysrol~edrural servrce~play rtt addressing tho needs of the most dtsad\rantagcd and prosrrftng fitr a R I U ~ C cq~ttabledeveloysmcnc path: (c) addressing the root causes of the Te~~srons;and (dl the need to loiter rural production cusls. The sfiare of puh11cbudgcr allocated to rural sen rccs ts also loft coft~parcdto other countries in the rc.gior?, For example, IT is estimated at 0 percent for 20115 :tr?d 8 percent fbr 2006, In Pttpurt New C;urrtca and FIJI the share of general go5crnnlcnt csgcndtrure ctffucatcd to rural serrpicesis estimated ct,be 15percent for 2006 (Sugdc.~~, 2UOfif. 33. Public.if.sfitrj.fi~as ilrvoiwri it1 rirrai u'r?r*elr>prrtewirarle beeftrklepijt afli~crtldtlf' the long pevirrii c#fjasral sxrehss?/ratstarred irt the 1990,t.- By 2002, trsrat general gotcnlt?wnt c~pc-11 JitLI~E: tyas ay~prt~xtt~.tateEyhalf the levels of"the early 1900s f IR real, per head tcrrrts). i~lloeattortfur agriculture and rurltt decfr;r.clopn~entrultched il hrstor~catlow rn 20U.1 as donor suppurl had sh~fted anay fkom the prod~tctrscscctcrrs and toti ard governance, cducation. and health. 'I'his 5%as Folln\\td by a near rhreefold Increase in the 2005 budget. t3ttblsc budget available far rural dcsclopn~ent1s stirrcrttfy estlmatcd at spproxin~atelySIS2UU milllort (equivalent to tTSS30 rnllfxtrn). In addition tct budget cuts, lnitral ctits tn sral't~*L~I*PP a .v/d$t lit aid f~tl f)ilfnlitir'+cfitild be cn,rsidt~red. I3onor assistance, mostly grants, is expected ta remain high ln rhc rncdrum term. 'Shcre is howcr.er an untlsttalfy h ~ g hlevel of resources channeled outs~dcgotrcrnment systems, tncludrr~gan unusunffy high number of sntall grant schemes, ntost of trhrcli \+ere desryned lo respond to tht sttuatlort in the lmmedrate aftermath of the 'Tensions. As the country moves touard tong-term planning and rnsttttitional strcngthenlny. these have rased ~ssucs,~nclud~ngbypassing focal Ibrrrtal and ~nf'armal institutions, transparency, accountability to local contmunrties, ccrordrtiatrr)rt, and conxlstcr.tcy oldonus programs, and overall sustatnabrliry (Box 1.3). There is a risk, rf these ssstrcs are not addressed, that fird cituld undemzrne snstittttron htltlding. In the r~tcdiun,term, a key irtdrctttor \s.tfl bc the extent to which support.currently provided through these schemes ts frrldcd Into standard service delivery ntechanrsnzs as their quality improves. 6,TheGovernmsrtt'spolicy response:a focus on focaldavefopmsnt 39. 'I'lic Cio\cn-tmcnl's rursl dc\"elcrpr~~rntpoftcy tkarr~etvork Ibr tfic pcricrd 2006-2009 prtsposcs a cornpwhensi~eresponse to the issues I?ighllghted sho\*c and establishes some prrncipfcs artd drrcetxot~sto address rhctn (CJC'CC,2006a: 20UGb): * Respond ru rum1 comrfttirtlrles demand forgrcater parriclpatiotl ~ t tpolxtlcal and e c o n o ~ ~d~ci ccfopmcnt: ~ * Irnprost the qual~tyof life xn rwraf areas; * Jrtlrlatc broad retbrrns rn natural resource rnanaycnlellt to ensure that greater bcr~fjts accmt to local co~~~~~tuftlttcs rfic country's natural rt'suurccs arc managed 1r.t a and that marc stlstainable way. - 1 ho C;c>vcmmenc envisages progress along the follo~%ing lines: \ * Ptomotxng cot~tnlunityengagemcttt rn nat~onalplanning and ccanonlxc dctcloprnunt, scarring at cfie local fcvcl ("bottom-up" approach): * Focuslng on thc productive sector, in particular agriculture, financial scrvtccs and transpurlation scrvxccs tn rural arcas: Strengthening the capncify crf prosrr~cialgovernments to cfeltser ser.\ices in rural atcas: and E"oeu,iing isrih regard to nalurst resources manrrgcmcnt or1 rnorc and susttixt~ablc benefits accruing to fhc local ecolton2y and resource otsncrs, O1"craIl,C;tnvemn~entenvisages puttxng more rescxtrces tn the provznces and atvay konl IEnnictra, as tsclI as ~trcngri?cntnglocal rnsritutions and martnycmcnt systems tcr proz.ldc the fc3undatiun "fbr rural dt.x.clopmet~tin thc longer term, 40. Tire Goirr*rrftt~~rrt :s policy tht?refurtjreccrgjfice-stirg wed to progrr?ss xrut only irz te~?.rrtfs of J U C ' N ~ e~w~turf~i~:grolf~t/tlrZltt N ~ S Oin strefrstfke~tj~tgi~~.sfititti~xts. Insttttttl~tfst\xXl be respanstble for the pro\ tston of"sert.rcss ctnii infsastructurc ibr sustainrng local ccoxtomic dc\efctpr?~ent,Strong en?pha\ts I S alscr placed on the need for better coordination and harrrtortrzarion of donor xnlcrvcntians. CSo~enlr.t.tcntpoEicics rccognrzc that the task ahead rs huge and will requxrc a strot-tgc.r, coordrnated, and collaborative effbrt of all those invol~edIn niral deipelopn3cnt tnittatlt.es. Many of t11c proposed rcfbms 1~x11actually span beyond a four- to fiitc-yearpcrtttd. In rhc hh01-t IU mcdlum tern?, selcctlvlty tvili be needed to nlarch rescst~rcci;and capacity. 'To avoid creating tinrcalist~cexpectation, a closer look at \$*hatuottld be ctchle~~cdin the short to medium tert?~,ntthin cxtstiny resottree cuttsrraints, and what coirtd be achieved over a longer rlrnefi-an~cis tl?ercfc3'ce t.tecdcd. XIOH'' C I X I ~ii~ttti"t~c*i~ftoff.s~ irtiitrrf i*t'?;rlft,\*irz rltc slroi? trt niecfirriil trrnt P I ' O C ~ ~ S C u*itltrttcfi,tt~fiv*i1ilitiitgIortg~*~"-t~/.i?ifft~l-~lcyilt~~ittj ~ i * < > ~ s p ~ c ~ ~ ? N, Phasing supparf far rurat development 41. Rural ctcvclopmenc ttrll require a sustained and long-term comrnltnycnt from the Sotorrtoft Islands C;oi*cmmcrtt and its dcvefctpmcnt partners. tZ key question concerns phasing of Inten ct.tliona xn rural areas. IlYitrr cottlrf hts tccltic17erfirr lltr sltorf frt t~itj~fitrnt icAr.nt irt .i.x^etz of t'ttif(fl3ftl I'CJ OI~I~C'CJ,S~ f i l fLf ~q;lti~'ifj*,.so CJSftt t f t a i r f?titfdt~ttltic ~ ~ ~ ~ ~ e ~ ~ ~ t ~ f i o i t . r ? is 42. Firrriirrg rr brrlcrrrce betntrstt irtifial resr~lfsnxrd sristairrable r>ztfctrrttes,Maxntarnlng pcacc and stnbtlrty tvtH remain a prlortty in the short to rl?cdium tern. To that end, specifk attcnrtt~n needs to hc g:r*cn to rt r-r~srrcinclusti*cgronth agenda. JYhile grottt11 has resumed (rn 2006 C;I)13 grotvth iias cstin~atcdat otrcr 5 percent), the eco111)myhas not ~ c respartdcd to the ricrnand h r t cn1~3loymenrand tncomc-gencratirq opporcunrtzcs In the prtrvxnces. Kev, sources of' grot~ttiand en~ploymerttivrfl itnve to be fout~dto act-tio.i,elong-lasting peace, it3 parfxcular, this n w l d rnclude a focus on niot rng atvay from the current, unsusratnable grotirth path tolvard 3 b~ot\$11 path that xvottld generate mare cn?ployntcnt oppcrrrunicrcs, 1nclud:ng ituisrdc 1-ltlrtrnm,ttrhile addressing the ~ncrcasltlgcfcmattd tirr improved govcn.tance and rural servi~cdefii~ery. Irt tire ,%Bart fo merlirrtrr te'tttr,specijficcnttuirjlrrcrfio~t8srrriXd rr~rldto toe ghr'rletr to f/tirrjblfutttitt,q. * Alni.~~ty/it'iettr Lnt* of trt'ttiftthli.i,t?soru.rcc.s. Improt 18%tftc cfftclencg of' public e~13endicurein rural cfo.i~elopmenr. * ltrrc.rt cnftrtit:,rltcir ittirtimizt~ifteiisk r!f'i*~t~*i~i*f"t"rt~ (+oi!{li~'fitrxf ) ~ c > / F~oc'itlt'cr~lz~:*iioit. ~ t ~ o ~ c I%r cxamplc, tncome-generatrot1 opgorcun~trcsfits mrtsgrrtafizcd groups, such as the j ourh. * bttci7.stfictrt.srlrai ctiit pi~~t'itfeiftiftilfI'C'SII~IS ht' htlilifiifgoit e.~i.sfirtgtl.~.scf.sfiilcf irrsfifrrrioiilt. I:osterzng the dcselopt3lcnt uS the snsaflf-totdcr agriculture sector and the prisrrttcscctur. Rtrilriitig frrtst iir govrrrrtt,tc.rir iitsriftrriorts h~ rttzp~c>r~i,zg the l o t ~ t fgotlcr.irurrr.c .Ji*tliizt>~<.ot*kf hziifrfinghcttl c r m c.cqtuc+i!t jrti. SL>I~*X^L~~JifefX't+c~qInte.r~enC~~~ttsthat , tmprove the capacity of arid linkages hctsvccn co~~~mtlnities,the prxt ate scctur, local got ernrxcnts and national gotcmmcnt. * 1jlrl;li.o.i.iirgtztttltr*~rli+e.s~i~rc~e~ttilrrttgc~itleitr flte ftxttffct'c.f.With focus on reforms (XI and inircstn?cntsthat ttould increase social and ctit irt>nmcitialbenefits. / ~f11ertrrriiiirtt-to Zcrrrg-tcrrtft,early achierterttutts rvriuld ltestl to be cutrsalr'datedf!trorrgk t r Urr~t~tfci. trtstt'ftrttrirr~~f i^gfi~i^iti~, the ttt pra\'iitc'tctfgotLef*itiiteitf~ ' fiint'fi~2it.sciud the*~ ' ~ t ~ t l frrtc~~rgenc.rc.5, * C<~i(t.sofitftlfirtgrrtrt~i'tlf rewrtti*~*~: irttt.ttcfgcJritt;ilfrq6iri~t.spn~ta,tt. * Sr~irgflic~niriy .f'iscttl rhr hu.ie to ru.spnitrf lo rEre iitcre~~siny tit>nrrtrttlfii*.so.tlicc>srlitrJ ii;fitr.sli.ilc'ft~i^c, C'haptcr I1 provides s mure dctssllccl rc.\vlts.iof growth prospects artd cortstralrrts cis a basxs Ibr chc scyticnclrtg and pnonrizariun of rural interventio~s. - If. A Foc'rSs GRow~rrru Rt it.\[, BRE,.$S 0s -- * Rz!itct'i/lgoff E ~ C J sf~eir~qrlts l?f-rJrlprirt-trl cronaiql+ A, A needed ficus on rural growth 43. Irr thc short tcr medium tern?, grctmth wt13 have to come ficrm the rum1 econcsmY." *lhc country's sire, liagrftcntation, and rc1at1r.c isolat~oniidontttorld rrrarkcrs and the lots lcscfs of' l~ld~tstrralskrlls of rhc uorkforce make it unlikely that cxpofl-orrented n2anuhctunng can he the mainstay of yru$t+lhtrx trtcomes and ttelf-hcrng for the rural popufalson, ilotve~.er,the country has poretitla1 for a tgsrer shift totvard agriculttiral productrun far safe in domest~cor export markets (and some assocrated dottnstrcam processing) and fbr the dct~clopn~entof tounsrn. Other sectors f for csampfe, scrsrccs) tvotlld gotv in parf rn response to the detrtand in those sectors. 44, Rcatizrng the groslyfh potential of the rum1 cctmt3my will rcytiirc private sector xntvcstmcnt by proclriccrs who urll adopt new varrcties and ~.trsductiontcchnolagres, and by tradcrb and processors tt'hcr \t 111 provide rnfi~mzatlonftrtkapcs to and from markets and access co prodttcts and bert'ites frofft outside the countv. tZslgnrficant part s f the gron th urlt come from rcstonng levels o"f'rr.emt??ent has detcloltcd proposals for a comprehensive retbrm of the tax system. 'Ihe !stirsuit of these reforms .~\,111protilde clle crpporcunity to ldcntrf'lr.and address tt.tosethat h a ~ the s~orsert~tpacton rursf grosvrh, c r Tra& ia~and regl~iatiorrregittie* $01 ot~~ctnIslands' system of' trade taseh tllpt~ses I yutte heavy burdens on the rural sector. 'f'hrs could be addressed by trrtpros tnp thc rradc tax and regulatjon regime, tlihcreas direct export taws hate been reduced, import taxes are qurte high by EJaciflc and tnrern~ttonalstandards and act as a significant tndrrect tax on exports. 'These act as a strung burden on agrrcultural products targeted at interriatronal markets. I;urthemorrc, thc grantxng nScxcr?~ptrsn~ in recent years has coi~tribucedti1 severe drstortions tn itlcentives for -ftnporf stibstitutii~g and csportlrtg actisrttcs. * jtijrpmving hu.sirt~~.ss r~gtilatif>ns r~?rrC Be legal a& regcrlrctcrr).fir~~se~lgork, ^Ihe business rcgufarloft system 1sparticularly cttn?bersor~~c (AI)B, 2105). 'l'he net cf'kcr ts to keep marly businesses xnf'ormal. unable ro f tmrt rtsks through llabiltty S~I-UCIL~I-CS at' to enter ~ r ~ formel contracts istth other firms or tvtth gatrernn?ent. 'I'hc n~ajcrrity(st' l o rural tnter-pnscs ctpcrltto a1 the hotischoEd lcscl and they art: utlllkely to seek f~t.malixarian. ifot\ctcr, nzmy small scale trading acr~sittcsarc sukccc to busrncss llccnsrng artd fees levied by provtncial gr.tvt:mnzents tvhcre the teyaf basis fbr this funct~oxirs poorly deiined, More impurrantly, rural enreynses depend on larger firi27s for access to domestic and intest~atronalmorkcts. Crcdlt offitred by traders al~ritnput suppI1ers 1s aften the maln incerhcc hcttvct.n producers and tttc fbrtnal finltncial systen?. If the reg~tlatorycnsrronntcnr tn~pcdcsthe cstcthitsttn~cnrot' ht~sxnesscst11sr Ixcrt, idc' inputs to and ourEcts tirr rural households, rural grzsivth is tnhrbiccd. I~yt~alIy Inrportant is the legal and jud~cral Gar~~c\sorkthat should tst~dcrpxn market transacllans and proleetion of'property rights. 5 5 . Addrcssltlg the poltcy and rnstttutionaf reforms affecrrng growth ~ v11t be a fong-term procchs and requtrc the support and int.oftcmcnt of' mttny agcncxes---at~dtrot only ttzc stnctly tltml-whtd ones-incfudkg for example Finme anand. Tmsus~r,Cam1 Bmk crf Safamim Islands, Ctl,~t~.m~, Commerce. ' I k c are ~mmedisteoppomiries for pmgess, inclttding and strel~gtttcninyChl: tncegratlon of' the smallhntder agr~cufturestctnr with markets: rehabititat~anOF trnnspc.srtatic.tn scrvtccs and infrastructure: providing targctcd agricultural supporr services: and addreusing incf"ficic.nciessn kcy valttc chains. Itixctmplcs of publie il?tcrwcntionsIrkeIj to provicic carly results ;arcinctudcd in -Ibablc11.1, Cftcotr support introductioil of intproved pfanting matenal rind dryrrs by the prit arc sector. * Cdcon8tt-9-fi isfxadwfionaf planting ma&rial; provideadvice anvakt~eaddkg ;;taddime1xeplacen~ntop~iass. * @~p~frn---spypon o u t - g o devefqmnt (e.p.,roads). with ~ iWarhtt"dfoed CPB~S-remvei f t ~ p e d i m ~t l t a q of comm~cial to ixlput supplim; i ~ r o vphysical market infi.astntt:bu~". e a * Lir*e.?fock-train wrerinnnar~s& remottcimpediments to entry of conlrncrcialrnptit suppliers. 'roitrrs;m I Irnprovt flcrcgulatcctltry Into ~ntcmatxunal,donzestit air ~ t rICCS. \ skills in rfxc sector and quality ofSCTX ices. 5(t, Economic dei elcspn~cnt more evenly spread thraughout the country tr*itl reytsire addressing the major constralrtts to rum3 grussth, a4chxeving more sustatnahle and inclustt e gron th wrll go hand tn hand .ittth nieeting rrual Solomon Islanders aspirations fbr iritprojed fcscal govenicmce and participation, ~rnproscdaccess to basic scrsices and rnfrastructttrc, greater ittconles and pascictpafian in the local economy, and better management of the countly's rich natural resource bast. 'Thrs chapter oflhrs pslority actxons firr bullding local fisundations for rural det"e1opmentaround the three n~ajoraspirations of rural Solonion Islanders: * Ijttprov~dlucai goverrranrt? attd ssntr'ce ddivevy. Respondsng rcr thc del11ant3 fbr greater pa~Tkyafionand rirr the provision of much rteedrd basic scrsrccs 172 rum! areas. Kurd areas in tshxch tttcrc ts good focal govcrnattce and focal communities that are involr~edin key desefopmenr and resource allocatron decisions: where thc publrc sector re-f'ocuscs on key "iuncttonsand rhe prs~sis~or~of an envIroIlmertt co~id~ci\cto private sector de\clopnIent; and where rrisal ht>useholdshave better access to bizsic socral and ccortomrc services. hcrrs nit rtturt.inr.Itd.sivsgrortttir. I;ostering ~ h development of the agrictr1turr; scctor c on which the rnajorrcy of Soloman IsIander depend hr therr lit~ellhouds. An agrtcufturc sector that can respond to the dcmatld fur grcafcr farm Incol.i.ics: Earn? produccrvity rncrcascs, llausehotds are bctter able to niltigate and nianagc risks. Farmjng develops in different islands of the country according to the difknng potenllal of' areas. Jrrtprovit~gcconomtc and firtsr~cxaltrthstructurc and scrsioes to meet the needs t3f the fkmt and non-ikrm rural economy and to f'acilrfatc adoyualc desclctprrtcnt of'labor-absohxng actir itics irtother sectors through fkfl- and pat%-t~me off-farm emplaynlent oppnrtunrfies. '4 policy environment that provides the right irtccnli~cs and support for ir-lvcsrmcntsin the rural economy. Ifttprfjvedrtrttgtrrti ivsuurce rtia~rqgettre~t:Greater 53713~fforesuse~f~nablebenefits Lbr rural ccsmniunttics and the natior2af ccortomy, A, fmprovjng facaf governance and sentice deliveyy 57. In the afkernzath of the 1999-20tJ3 'Tensicsns, priorjty tvas gtten to immedia'tc rcltab~fitationand resturcttiort of basrc infrastructure and services that was mostly t>nartecdthrough donor assistance. 'S'hese ~nterventicsnsuerc oricn conducted oursrde Gist"cmn3ent systems to ensure raprd results. ilotscver, tlfcsc have ~;-lxscdIcgitrxnstte concerns about the nced to shift emphasjs to developing the nationat rnstitutiotis and systems svhlch ivrll bt. rcspttt~slbfcfor the defis~ryof key services attd irtfr'asrstrcture in the long-term. Esperlence tn other coufttrlcs reeoverrrtg from civrl cor~tlictpuxnts to the nced for dot~orsto tsork with national and sub-natxorta! level govcmmcnts and to the Importance of not underminjng therr authority. 58. Bctilcti~rgthe Soluirrorr Lshnds sjT.stt.ttr.satrd i~t.sfit~tr'un.~. perfbrrnancc of the pub1ic The adtnintsrration in planning and pribltc finance tnanagemtnt has been tscak. 'This has adsersely aflbcted the dclxvcry of rural scrvlccs and infrastructure. As resources far rclraI development are expected ta rncreasc, changcs tvifl be needed in tfic \say dcvclopmenc planrttng is Jortc, plans and pnorrttcs arc budgeted fbr, and services arc dctt-1"cred. Better results can also be expected frcrm tmprclted trart4parcxieyand et"iic1ency tn the use of public rcsotsrccs. 5"). *l~hcrtlarc ttt'o main areas tn ivhich progress can be made: (a) better pubIi~fhance nlanagcntenr. tneliicling planning and btsdgcttng processes: atid (h) more efficient and accoirntablc scrvrce dclt~cryme~hcm~sms.'f'hrs section drscusscs priorrty actions Cu smprovc the delivery of" csstlnctal soctal and ccononllc scrtlccs and rrthstrttcture in rural areas, through greater local b'arttctpatton xn dcsclopmcnt planfttng, rmproved publ~ctjnancc manayenlent and a clearer rtAe ~ l f the public sector In scrvicc delivery. A.i Making better use of availableresources . 60. Eicwlopmcnt Prntgrarn). 67. B~iUdilzgc1upac.iqi~inttie civil serdce will be a lorrg-proc~~~s. cconcrfftxc and fiscal The refc~niho f ' t h ~late 1990s Included cut-backs in chc nttnlber of civil servants, parctctiIarly In rural dctelopmcnt agcnclcs, and resulted in a "top-heavy" tvorkforce rhat reduced their operational capacity.i" Furthermore, there 2s now a cadre of senior uorkers approaching retircmcr~tti itho~tta rcplaeement cadre of younger, trattlc'd stafr put in place, A special focus on the rccriittmc~ifof nTanagers and strong young professionals to restore the capacity to implement and deltt+erscr.i.tces 1s therefore needed. 1 - "I bc sflare of posrtlun:, ailocatcd tct field off?ccrs atrd utftcr rrrorc junior posiiirr~rsin Ilitrr~stryof' .~4grittittureand I.ltcstoch fell From 53 pcrcctxr t t ~3.3 pcrccnt bert~ecn1039 and 2006. Th~s1s an ililustiallq lot\ share by a11statrdards. G 9 - Z .2 $J .% Y e 2 2 % g z S act 9,, 0 W I -" y 2 3% 5 9- n 3 5 m & 5 2 &-a 3.2 2 m w 0 g Q Slj i r e - c 2 b5 2 @ g s .2 ,CJ % 5 % -2 E b " a .E ,c , 5 >, tr Q % $ .g 0-5 -go c a 2 5 0 * g t- 2 $ E 2 % E D ! 2 % # f g a 4 * " $-& 5 22 F . 5 2 .z"uts .1 .. "r 3 g 2 rfr ,. f; 9. ".. C- C -2 'E & *U i 3;E U a ::-a imprcsvements Irt quallty and nccesstbiflty. Gavcn~nienthas a key role in the pm\rtston of publlc goods that prort.lotc social cmd eeonomrc devclopmcnc (for example, roads) and to inzpmio equtty (for example, health and cducatton). Centralized functions, inadequate fundrng, and human resource constrams ftave scvcrcly curtarled the capacity of pm\p~neraf.gcsvemtftcnts to perform thcrr linetrans. 'I'hts tias Xcft a gap In yovernailce arrangements where comriiuntttcs have no proximate government through whtch ro nnicularc t~tccdsor exact acct.tuntability. 711. A fegulfhat etl7orIrfor decstttraii~edpIa18t1$11&andflltaacing is slruar& large& ilr piace. In the short-tern?, there 1s scope for lmpm\?ements ~virhlnthe current legal framework by addressing .iteaknesses in the implementation of the Pruv~nclalGos.cmtttcnt Act. lrnder the Act, niclst lunctrons are re~aincdat the Center t-iith some possrbtlicy for de.ipotutitstt. 'Thc ppr-oblcms affecting prnvincral goverrtnzenrs have been well documented (AusAID 2003: Elcslmcn?o and tYatoto, 2006). Within provincial government, there arc several arcas for rmpro\ cnzcnt: * There ts lrttlc or no outreach to eotl~riiun~ticsin rural areas and atmost no prcscnce of fitrnlal go\,ct.llmcnt beyond totvn boundancs. 'The lmk bet~vcct~the provincial got.cmmcnt and villages 1s nctttonally filled by provlrtcial assembly nzembcrs {i-i3rd nzernbers) and has beconzs increasingly ~mhltcised. r I3eifolt~edfunctions are minimal urthour n serISicedeliver): orientntrrrn. ^Tticdc\olved .lilncrionsarc poorly defined and not dcfit~cntcdfrom those of ftric n?ir?istnes. * I)ex"elopn?enrplanning and flrnding remaitts cetttrall~cdand prostnc~aldevelopment plans nhct? they eslst arc rsAcn nal f txikcd st.itti budgets and rhere%x-eunreafxsttc. Parttctpatoty plartnrng has been Itnlited. * 1,lnkagc.s tvith f trte agcncrcs arc weak, Provtsron ol' routlnc local govcmritcnt sert~ c c sand infrastructtire matntcnallcc s t rtrtminalfy the resportslbillty of the provinces, ho.ivever funding (and stnftirig) has usually been retalncd by central Goscstlrrtcnt agenercs, lt3udgec forn?ulatiot~is urtpredlctablt artd arb~trary. * Provtilccs rect~vegrants at~drase local revenues, hrr~veterthey are mostly spent on staff and debt serticing fionl unsueccssf~rlbusiness ventures. The prct\.tncral yrallcs are also associated with a range of accountabtllry and aatlspnrency issues. * 'i'hc effcctlvcness of donor kinding is limtted by the rmplet~~cntattottcapacity of icscal go\Femmentand the absence tsf deve3opnx"x"t~lnns.Donors ha\.c tended c t ~ channel funds through nott-stotc acttrrs by default. U'fi~lcttxs may be suitable as an ert.lergency measure, there arc concerns about nccounrabtlity and sustainabtfiry. 'I'his has ncrt ordy resulrcd in lbilurc tu provtdc and mat~ttainservrces but has also af?i.cted the Xcvcl, capacrty. and mctrate o r provlrtcial staff* as ivcll as community trust irt Go\*rmment. 7 1. Lirrkages betrv~rrcurtrttrurrifJus artd kicsl gut7errtttrrtrrs ,reed srreagrfirnitzg. The attempt to link rural con~n~unitiesstith protrnc~algovernments through Area C'ounclfs has ttot $1c~rked.~"tternatlveways are needed to strengthen those lrnkagcs. Experience In other countries xndrcatcs that tmproved mechantsnss For dct.clopmcnt planntng that tns*olves focal cammunittcs and other stakeholders (fix example, bcisincsses and cncreprcneurs) could lay the "icundatlon for ~t~cfrcco~t-eSfect~v~',demand-dnscn pro1rsrrrr-t of infi.ascructure and services: and support local governance and service cf"l'crii+cnessand stisrainabritty. In the Solomon islands, thurc arc Tet'i examples tvhcn' conimunltrcs have bten directly tnvolvcd 1t2 the management of" publlc de~~zllopmencresources. hxpcrtcnce in other countries suggests more sustainable Intcsscrttror?s t-iicl? approact~esnl~ercbycon~rnuni~lesare given a budget on which to base the~rdcvcfopmcnl plannrng and rcsourco allocations, 'The approach could address scripice Jcltvery constrarnti, ~ncludxngtn more remole arcas, bur wouId need to bo tested before it can he scaled up. 72. Tire Iorrri gokterxrartm fraale)tfork cortld be fkrtirer slrerqtlretrcd by buiiifitlg tlre capnrig c?f'rrn~-stateactors. Intermediary organizations (NGOs, churches. among oct~crs)often face sirrtxtar prottlems as ivitfi prot.tnclaf admnrstration ~ r tscrvrct: delitcry and arc tsticn ovcrstretched and dependent. on the dedlcat~crnof a few staff: Weak l~nkagcs1~1thprrr.r.inoal gotcrftntetits pose prtzhlenis xn terms r ~ fdeteloprrttnt planning, quality ol' scrvxzcs and infrastructure, nltsrntcnoncc, and suscainabi fity--fbr example, a scl.toolbtitldirtg has been deli~crect but there arc ncz books or teachers because these itcn~swere not in the proi+inc~albudget. 7 3 . l"llcrre is n stvcjrrg irr-prixtcipicargnn~etrtfir unl-sorrrcitrgddicety. Funding 1s available to rc-butld thc capacity of' rural agencres: hot\ ever this giscs rise to ul-lcthcrthe agencjcs sho~tld rcturtt ra rhctr prciwus posil~onas ser.t*iccprclvidcrs or altcmatrvcly adopt a coordrnatlng and super\rsosy roIc n tth service delzscry undertaken by the prisatc sector and other non-state actors. f3asr cspcr1encc suggests that 11it111 be dtfficult to rc-buxfd and maintarn the rcyurred tsmWcrce and equipment rn the public sector to deltt'cr baste ~ttfrfraststlctureand scr~icesftraftsport, tclcecrtrtn~unlcation~tt.atcr supply and sanitatton, a~~iculturalcxlcfts~on,among ochers], r i ba generol prtrtclptc, C~overnn~cntshuttfd avcild undertaking rrales chat cart be more ef'hcti~elyor eflic~entlyun~iel~akcnby the pn.rfate sectclr or other non-statc actors. Past espcrlcnce in the Solomt>nIstunds shtm s that drrtct gclvcmment tnvol~cmcntthrough starc-o\vncd enrerpriscs has Faded to cnsurt the proiriston of reIiable and cost-efficient services and tit~l~ttcs.Tt~crcis also a long-term, financial imperative (ut~ccrtatnlong-tern?, fjscal pmspc'cts), 73. Oiit.sarirci?fgriwrrid kave to be tirtatclied Ru#vr.i~?rridlit cffpari(vo~i.si&gut?enrxtrertt . ngenci~s, S*he emerging pelicy rn infrctrtructurc roeugntzes that cxt-sourcrny of infmshtketurc msinttnancc and devt.lopmcftt rs prekrable to burld~ngin-house capaclty. Most infrastruc~urc \vorks arc CC.~he ccsntracced out. The Ministry of Infrasrr~~ctt~rc[leteXoprrtcnt (or National 'I'rar~spctrt Board) iv111 adopt a i~lanntngand supcrtVlsoryrole. ,4similar approach could bc adc>ptecSIn agr~culturc,fs>restry,and fishing extcnslon scrtrxccs:but ltwould have to be sclcctlsc and bnscd on atarlahle capaclty ours~dcGovernment. Monitoring ntf the loggrtig and fishing trtduslrtcs arc contracted out successfufly in other Pacific rcgron countries. Engayenlent t ~ ~theh t prwace scctczr tvif t alsc'rreyulre an tntvxronmcntconducrve to private hector devc'lopment. 75. f.k'~trrncirrimeclru!risms to xrrairrfairr ixlfrrrsfrrrctilreatrd setvice treed fo be grahullr iirfwditcerf, Otitsourcing uill nut substctntxallyrcducc costs. TItt pruvlsiort.of rtiraf dct efopn~~f~t serhrxccs1s more likely to be sustainabferf rt is possible Is move to user-charging systcrt~s.Wh111' there are Iimited ~neentivcsto ttiuvc tu ubcr-c'f"t;t~~ttgsystems rn the stiurc tern?. uscr-charging may ~ Y C required in the Inn8 tcm~.I+rc.\+iotis espczrientc (for-exatl~ple,KGA Planting Material Yetitnrk) trldicatos that prospects arc probably greatest if the systenz is based on private sector ur other Ron- state actor delivery. EJ, Mora inclusive growth: Agriculture and beyond 70. In the short to med~urr-iterm. the ayrtc~ilturesector tvlll continue to pro\rdt: the basrs h r rural grtlrtth (incfudtngchat of actlsitrcs linked to agr~c~flttirc),and xts perfor~~ancei therefc~rc b l l deter-trr~eto a great cxlcftt the oscralf grcrssth performance of the rural economy. B,"f Focusingart critical agricultural services 77. As dtscusscd above, there arc gatsd opportunlcics to strengthen and drversr@ extsttng value-chains by tircustrtg on hat\hat the Solotttun Islands prodttcers do best and by facilttating access lo rtots markets. 'I op-dossn ~ndustrydevclopmetit plans, \;lShtchhave bccn a coxrlmon approach in tl~cpast, have not prmen cfTectitvcto support the sctctor. 78. Biliidiltg ttlir cftpacity of agr'iculhcre sectclr irtsfitrrtinnsii'iil kr o !urfg-ker??rproce.ss. In the short to rrtcdltsm term, agncuffural ~nst~tutionsnccd to address immediate threats to agricultural praductn try and yroti~tl2.'I'hese rnlrnedlate threats inclridc incwascd pests and disease ~rtcrdcncci~rth~ntcnstficationof fa~lduse: decllnmg soil fert~lity:aftd global pandemics, such as axsian flu. f'htsc agrrcultuml rnsttttitlons also need ra help the sector selxc next' gronth opporiurttties that crsufd lncltide dlffits~ortuf innovative teul~nofogrcsa~aiIablcrn the I2aclfk reglon and scrrrces ttn;rhllng acccss to new markets, Strengthening ngricullural sector management 79. 'Tt.te past decade has sccn major changes in agric~ttturalsccror lnstlrurion and markets, lrzcludlng the end of the markcttrng monopoly of CEMA after the coltapsc of its operations zn 1999 and thc Ftulurc of utf2er agricuItural state-atvncd c'rttcrprrscs for exampfc, 1,i.ccstcrck Development :2~ithorxly). Similar to cxpertence i x ~other countries, direct p~tbfic sector ~ftt'ol~enzentrn prc)ductinrt rtnd t~iarkcttnghas not produced good results. Gc>\yernn?ent-ot\ncd research and cxtcnslon "rc~litieshahat c been destroyed durlng the 'l'enstons. Fsnttal cdueatlcrn rn agriculture and rclatcd st~bjcct~1s no Ionper priority: scarce cducatton resources are being d~rc'crcdlo basic educatton, E'ann crcdrl to finance the uptake of" esteriston rccoxnmcndations is generally not atiarlnblc tt.~ththe coIIaps of the Detcfup~xenrBank of thc Solclmctn island?; (DBSI) and the falltrrc rsf many rural credit unicrrzs. 17-1the aftermath of the Tcnslons, licrtvcver, there l m e bccx~ some posrttvc developments tvrth sonle private trttders stcpprnp rn to provldc essential inputs and adr+ist.iryscrvrccs, dcspttc the difficult environment for private sector cfevelopmcnt, as tveEl as NCiCls and conzmrrnlcy-based trrgani~ations. 80. Sirettgii~errirrg agricntlture sector Fffalr@gextrertt ~ijillbe a long pmcclss. 'I'he Mtnrstry of Agricrtlt~ireand f.it cstack rs at present a largely incffeccivc csrgan~rratrot-t,and rts r7ianagcment 3s altare of the need far improytng crpetartons anti rcdcfjnlng its role as a service-oriented orgar.tr/stlon. 'I'l7e Mrnistry has becn through se\"eral restructtires, ~rtcludlrtg it stgrtrlicarit rctscnchment in late 2005: hot\e~*erthe current Suncltuns ol' drffcrcnt dl-\rtslclns remain ro be clarxtjcd. S?fi'ccttt.c n~anagemenkmechanisnls are lackrng. Field opcrat~onshave v,ttlt some eaueptrons (donor projects) been mostly unfunded. Programs and budgets arc derem~nedby the a~arlabrlityol'danor funding and not yuldcd by a clear sccror policy. And, as a high number of staff prepare to rctlre: Iitfle artentron has been grt en tcs successLon plann~ngand rccruxtr?zent ol' young, ytrallficd sfalf. 8l. In the shwt term, the best resulrs aotlld be acttlevcd by focusing on priorities Identifled locally in the pro~~incrs,Rather than enibark~ngupl2ont on an axnbttlous reform agenda, a phased approach to rcbuxldxng MAS, capacity is l~kelyto produce more results artd to buiid confidence in ~ tcapacity ttr respond to the needs ofthe sector. The current l~~odel(btidgcts s arc aI1ucatc.d artd prcrgrnmm~ngmade in 3Ioniara) has had uttsarisf;tcrory results. 'I'here has bcerr a lack ofconsideracron for the needs and prioricres of different provinces: and field staff operates rn a vacuum wrh an absence of managenzent and gutdance and limited means Ibr trsvol and communication. Initial results could be achluved through targeted capacity building responstve tct pnrrrrty nccds rdct7tific.d In rhc provinces, cottslsrcnr ivrlfi thc Got'ernmcrtt's focus on local ("bottom-up") detfclopmcntplanning. 82. Parttlersirips ~7iti1crtlt'ltsra.ssociatic>ss or irtstitrrtions operrrrirrgr irt tltc,agricltiftlresecrur tr*otrldalso corttrifiufc,fu ear& rrstrlts, Experience in other counrrics indicates that hctttr orgctnxzallort of the agncuIrure sector and coflaborarion bet\sc.cn publlc xnstitutiotxs (Mtr.tistr-yof rlpr~culturcand J,~t.estock, M111isCry of C'crn~rnerccfanti the private sector (tncluding producers) are in~pcsrtantto facilitate agricultural grot1th, linltke other I"cific region cottntries, proksslonal aprrcuXturaf orgcinizatiotts or genuine rural industry associations are under-dctrlopcd in tht' Solomon Islands, partly because of hcwy ptlhllc secttrr ~n\ol\.emenrin the past. I:lset~hcrei rkc r ~ rcglon, r'f'ttsc asscrciatxorts hate been active tn promoting innovatlon and irrtpru\,cmcnt?t ~n agricultural value chains. Some assocrattons are startrng to eixcrge in the Solonlon Islands, and targeted support would enable them to desefop. 53. Strr?rtgtlterrirtg ~gricuJfttre~ ( i f e g ~ ~+systerttsi.5 aa iltlpurtitrlt rule of ike p~lilicsectc>r ~ r t l s arid an ilrrrtrerliare priori&. While there 1s no comprehensive survey of losses due tu pest and diseases. available rnfonnation indicate chat they arc: substantial and xxtcrcasirig w t h prsductlstl and trade tntensifjcation. Strengthening sanitary and phyto-saniray scr\*ices is needed to saCcguard 1ocal a.ij~xculturefront csterrtalIy tnlroduccd pests and dlseases (for exarftplc, cocoa pod btlrer and Asian bee). In thc Ii~nyertern?, those servtccs ivlll ensure con~pliancc551th thc requirements of ncu export markets and the cl~versificatianof'the export basc. I!# the slrori m ttreliiurtt fertfz,fke ~tfijtistryclJ'Agrkbuitl,raarrd Livestock cotrld lie evrpectedfu ixritinte tlri?fullu~drrg: * C'lanfy rts csltaboration tsitf~the pr~\~~ncc'sand hun it I\ ill respond to pnority nccds identified in tile prof rtlccs: * Establrsh partnerst.tips Isitfi other sc.rsice prostders (prixcttc scctot, pntflc'ss1tlt2al associatians, NGOs, or rcgronal agric~tlturrtlbodtes) to respond to tflc needs identified rn the pro%incus: * Strcrtgtl?sn \.ctcrtnaly, yuctranrlnc at~dpIanr protection services to prt11tile 111c r-rccded safeguards to the agrrculture sector: 0 Sdentlfy and support the difftlsion of innot ation ~ r tcx~strngcomnzodity chains, in partncrsh~pw~rhthe pnvare sector and regronaf research Institutions: and * Improve human rcsotlrces management and deveIopment and start aligning srafring artd skills wrrh core f~incrrons. Iiit the iuttg-terirs, tile ,?.fiiti.sm.ycf Agricrtltnre and Livt.stcick skuuld aim nt irc~vitigits eorc Jirnrtiuns clearly ilefltred,progranlrtsed, nrtd resorrrcc,d,lrreiaatirrgr: * 1,eadlng the dcveEopment nf the agriculture sector policy and regufatory f'ranzeuark, in consulcatfnn uith otl~crstakc'f~oldc'rs: tdertlrfy~yl~lgconstraints lo cigriculturaf dcceloptiient and addressing them f inclllding lobbying for rcfomts of other policies raxatron, transport --af-ftcting the soctor): Rcgulattng agrtcult~tral acrt~rtles through yuartiTTtrne servlccs; ep~dcift~rsIagic s~irvcillartee:ettvironmental rcgulatxons: standards cnfhrccmcnt ffbr example, fhr cherrtxcal ~nputs);ensttrrng food sakty {farexample, nlcat tnspections); * Supervtstng the prov~slcrnof extension, tPetcrinaryand plant protection sert,sces: attd, * I%rcrvxding services not provtded by the prihate sector (ccrrrccting "t?~arketfctrlurcs"), for exrtmplu, research and infbn~latrortrelated to fbod crops. Faciiitating innovation nntl market devefopment: Partnerships h e tecn the public ~ and pri~atesector 81. hprtculturctl support services need tcr adjust tc:, changes in the agriculture scctor. Ct'ith the cnci u"f'CE:MA's marfcetrr~gr~7unopolyand that of other agrxcuItural state-otvnud cnterprtses, access to apricultttritl markets and market deselrtpmcnt kvrlt rely on ct~cprivate scctur and the rsrgrtntzation c~fefficienttalue chains. IYirh a fet++cxccpttort f rlsr example, addressing sot1 krltfrty rssues), adt rl;ory serttces (tncludrng cltc trttdxtlcrftal extension system focuscd on tcchnreal t~lcssagcsjneed to he seen as one clement to rt2yptote E Iefficiency and con~pctirivertcssof valuc- ~ cl~iins, 85, Rrct)g~tr'r;iizg rr)le ofpirbiic-private parf;rtersltipvbr sfmngt8eitirrg agricttlturr~l~itlli the P cirnin.~.1nternatic.tnalchpcrrencc shuws that rna.jor gains rtt the cffictency of' tsalue chains come 170111 rnrlrssatlons tn orgatltzdtlon and products generated through cooperation of different srakefinlders. Value chatits can be used as pfaffcrmms to rdcfttrfy oppartunities for rttnovattcrrt ant! cfiliesertcy and ql~txfttggalns. Often, those cannot be addressed by ind~~idualstakeholders and there is a pubf~cgoods elen~cittthar pro1ides a r~tl~.nalekrr pl~bllcsupport. 86. Agricfilfrrmlixiprrt pror*i.siott i.9 a k q firrtcfiorr of tire priilafcr sertrrr. I his functtort xs torally under-dcvcloped in the Srttontort Islands. As rht. sl~areof tttarkcted pradtsce increases, the demand h r inputs is likely to rncrcasc: and the private sector is likely to respond pro\r~dcdgeneral barrxrs tcr prtt'a~eSCCICI~dcvelopmcnt are I~rierf,As regards the pciblic sector, this t'r'ill nxan that a stronger capaclry fi~rthe rcyulatrtsn rshnpnt markets 1i111he tteedcd (for example. setting and cntijrcing quality standards). 57. Il %at is rile sc1opeJhr mcjrkr?t it~fvrttrafiotrsert.lice,s?~ ~ C C CtaS ~ crmely, relrable, artd reletant ~xrtrkctinlbr~~~cttionrs irr~porrantfar praduccr decrs:ot.ts in terms of {{hat ru grow and ~tl~el-csclX. Ilov,cvcr, lrrnrted access to transport and fclccrsmm~rnicarlonis a nzajor cnnstrsir.tt to as t?vclXas the capactty isf pruducers to cise rhls inhmlatron. 'Iqhercrs also a lack crf rcElahle data to support agrjcufcural policy development. Public ~nfisrn~arlonsystems art. eupensn c and opporzunittcs tilr co-tinanctng by tfio pnxatc wcrus remain fimlred, ca'ltlng for sc'Iect\.~ityrn the sftclrt term. 88. There is tietttlcttd $2 ~fire pru~tj~~it'i~~of advilvnrj?srrr*lce.s. Consultattons with viflagcrs corlfirn~this need, Xnrernarronal experience indicates that the rectims ort publrc trtvestrftcnts tn sgr.icultura1 research arfd extension can be high. A key challenge is to develop a sustainable extenston system cammensuratu tvith avaifahle flnanctaf and fiurxan resources. It 1s unltkcfy that broad natronal coverage can be achtcvod in the short to medium term. It ~vt1Itherefore be smportant ktr the Minrstry s f Agricult~treand L~~esfoek def'ino, rn consultat~oit to other partners, the lhcus of8 publrcly funded extension system. Far example, ivhere nlost farnters grow ?tubsrstcrtcecrops and arc unable to pay f c privately proxldcd nsslsrartce, there ts a need "ior the ~ state to finance the provis~onof same fiml seririceson the grounds of faad secorrty and equity. I'ht. type ~rfscrt9ice,level of cost recovery, t l y m f provider, and modalitxcs used should depend on cl~aracterisctitsand location ctf fanxcrs, farming systems, and products,18 8". Thepruvksiua uf'prtttZic .r?;rtc).fisiotr aemictls Ilc~sbeef8reduced to aft.19irritiatives largely clrivea by rfurrurfitrtriirtl*., 'I'fie MAL Extension D~sis~oxlhad 116 cstablrshed staff in 2006, .Although the largest cflsiston, 11 rccclt ed almost no operational budget (SBI) 45,000 or X percent of' MAX, operattonal costs, 2004 figures). 'S'here has been a lack of in-scrvtce tratnrttg crr further skills dctelopment, csen In tl7c 1900~when fitriding was ai.ailahle. Lack of' resources, compounded wrth limited carrier incentives, has translared rn poor stail' rnoralc: and the more entcll>risrrtg sCstff are Ieavlrtg the scrsice. Nongovernmental and other rural organt;rnttuns, including churches and rural training centers, and to a ltmitcd extent the pnvarc sector hats stepped itt and provided sorrtu scrt tccs; hone\ cr capacrty and coverage rcnzatns limlted. 9 . There are qrrt.stinnsabout n*Izetlt~~.crGnverfurrentcatr afford to ttfaixttairt tire ,%firri~~f~v uf' ..tgricrrlture artd Lir*e.stockill its prcxseat Jhrtlt, Cttir tlic 1tliili.5fi:t'iitltfitftl~iirtfltlliftpf~~J I C I ' oj ~ O tviitpfetxt.s trt.#$eftlft.i.el t t i i d j c ~JI.IL'J~a.s l~(iit.~ii.g,lf*tiiiritrgcenfrfsttitrl ~ ~ ~ E I I J P DUSItt, c'lf ti^ F ty7tv'^trricsrt~I ht(.sf the . I l t i f/:it~ftf c?i r ~ ,.Igricvfrttr.catiirrf Lir.r.srnc.karrti rltitc r$'rltr pialyiitc.~.?;? 91, Was thefocl~soyfprrblic ~~Ierrsiortset~icesbeexr appropriate? Iti the past, the jirctis of ctxlensian has been cm higfl-input firnting systems, which has proven tcr bc irrelevant to the condrtxoils t i ttshich rrtost fhrmcrs operate {Tftcrc arc numerous rtpurts frrtn~i>r-mers about tnndeqtiate recommendations, as example, fur rice cultivation trr pry rearing). Other tssucs ittcludc lack of attention to the needs of specific groups, in particular strorncn;lack ol'artc~~trun to i"c)oct crops: and a ntlnou. focus on technical producrlon coltstratrtts ss~thoutconsrdczrxtion to r~larkettngaspects-making extension scss 1ccadstcc less rclc~antto pruduccrs. 92. Itr tlfrtsltort to trtedirrrtr terrtt, tile .Whisfry crf Agriculture arfdLiitesfuckcuuZd$jcrxs urr several setint~slu ~ f a rbirilrii~rga service-orieirlt?d e.~tr?rrsio~rsyI-'slicft~that tvill nbu &acclasisteftt t rr*it/rtke fl;ur*errrrtreat',u_liicrrs iocal r'rtr*estt?tenf.sandpartttsr.sitllp.t.: orr 1rnpro.t~skills fbr extension planning in the pro~~inccs,including detnnnd asscs~t~~c'nts (taktrtg lnlo account thc pnorittcs of different groups, t i tparrtculor tt artten nrhu play a key role on food production and n~atkcting); * Idcrttrfy key resource persons and organizations (far example, agr~cult~rralstaff rn pravlnccs: rural lrtlrning certtcrs: NGOs: private sector) arld assess thc~rslirlls atid trainmy:needs (serstce supply); Rurld capacity of rcsourcc pro\v~dcrsthrough st~atcgrcskills upgrading programs and strengthen extstrng ncttttorks ft)r r;3rmer-to-hrmer craintng, (fix exan?pIe, KGA facrlxtators, SSP courrlinarors, Planrxng Matcnal Network, Young Fan71c.r Project field ofliccrs, Oxfam, Al'iflt;l)r\, Solcrrntsn Islands ISescloprnenc Trust nct\vcrrks, ECBC~CTS): * &fake better tlse of exis~lttgfacilities at rural train~ngcenters, secut~daryschools, and vocaftonal training centers; and Ih For cvanlple, srippcrrt to prcdoxnlnalxrfy srtbsistcncc root crop growers tvould prcsbnhly catlccntralc (ti1 tarlctal improtcmcnts and prc~cr~ltt~or~of soil fertility in sflifting culti\attt7r1 regimes, ~ t r i l esupport tu cash cropping closc to n~arkotstsould Sactts on the correct use of purchased inputs and rnarketutg 31 e tjttild h4A1, capacity to monitor the quality o"r'echnica1 s d ~ t c cpro7 icicd by resotiroc. pcrstsns and instrtutxons. 93, Itr the iortg term, the Mi!iistrj*nf~fg~r'citlfttrcc L,it*estuckcurtld consolidate tke rwiv arid strate&~*-brii/cfi~~ga cost-efflcr'ertf,nrulti-partrtcr, detttn~d-drivewt.~tetnfirrtrsj.stext;-)t~itit t/scl fi~llorrlr'lrgnctiuns: * Dqft'rtiit~sfrtc,.cgtr pt,inrirics jbr. ptlhlict j?~t~i?clitg, ~01lsbo~;tt svtrh other in :OR clrgani;.at~ons 1nsoX~cdin agrrcultttrc, srith ss focus on increased prodtictron ant1 structural changes ~ r bttiaXlholder farming systems; t * Snei~gflicttiftg.\kiff.s iit ,I/liaisffyqi Ag~ir~rflitlreartif Litv:sfrtck j'w c>.rtot\io~r strp~at.\+istrt,t,' Coitfirizriiig lo sti.t.rtgrltrrr and delliter extension rFtc2I t~pflc'ifjc?fTfltrpi'oriirl if?; 10plan sen ices, including cl~roughdifferent netivorks of providers: * Ol,t.\orrn.iity c2f:fielrffc.t,cljt~irc'rions,and tisc of lots-cost particlpataq and farrner-to- farmer nlcthods so as to rtducc the presstire on the ptthfrc servlce: t\tth the Ministry of t%gric~tlturcand L,xt'estock retaining fiirtctiolts k r t.tt.ttch there are cconnn?rcs csf scale at nacrcsnnl tcvcl; * Cctnrrltlrr,tg r r ttnfupt \pecfit'r.~~l~pi.rtrtr.lic~~\/tnt~dzos, such as Kastom Gadcn Asscrclatlon. As a general princ~pfc,research activltrcs should be demand driven. * Rttr'ldfiug ,%tlL tvtptrtvrjZlit i.esrtxi.clr i~ftcfECif~~t'lc~fgct ~ ~ t i i ? t t h s ~ ' i ~ t ~ i ~ t , tvnrking with partner organiratiisns as a nlcans of learning from research rnsrlrutions in the rcpxort, UttiltfJfzgrzeftt10r.k~~~ t i r lc~fhci.in.srin,rit~~~s ~ tciztfc.n,rtiwcring our priorxty research programs to othcr partners based on t'tlctr capacity and oxpcrtrse. Sfrotgfhriziirgtite ciipr~tig fo ~'ttiyt -0tlr o~t--ftm? i*t?';~r~i'chcases tvhcn testtrtg of for successful technologies under local conditions 1s required; and duvef uptrtg ltrnltcd on- statrun capac~ty,usirig sts.rtllable fhciltties (sucft as Solot~~ot?Islands C'utlegc of iligher Education]: 97. 1s agrr'crthrdra_ieducation trreetitqj the tteeds c?f tile secfor? In-country agrtcultursl trarnxtlg is cun-et~tlyprusirlcd by the network of secondary schools: at tcchntcnl lcvcl tf.trough r~trrtl rraining centers: and at tertiary lcvef (undergraduate) through the SICIlE School ot' Natural Rcsuurccs, There arc nu ~n-countryinsrltutions for further t-tlgh-lcvcltramrrrg u l sector spec~alists and professionals. With a Eeiv escepfrons, the qtiallty of fhc curr~culaand teaching at rural tralnlng ccntcrs 1s inrtdcyuate, C'unscyuently, fcsv studcnts tnkc 111:s path of study. S~milarly,if the SIC1!I' School of Natural Resuurccs 1s lo be rrta1ntaxned, the curriculum needs ta be revieued and made relevant to thc sector. 98. Ratlrrr tlrarr trai~irxl'tfggert rrra1ht.s irtitfr ! M e ertipl~yrttertt prospecis, fucrrs ttrure ox? actiorrs to Imirr teclrniciaitsafrdotherprofissiotral,t: * improve thc re'lcsartce of R'IC' cur-rteula 2nd csfslorc the possxbil~ty for some speclaliration of"rural training centers: Kcvieti the curr1culurt2 uS the SIC'IlfS Scl-tool of Natural Rcsuurccs based on a clear visron of \vhat sttidents are trained for: * Retter integrate rural Iraillirtg centers a176 Solomon Islands College of Ilighcr Education ivith a strengthened research and cxtensron system; Ilevclup short-term adult courses: and * Support tttc traittiftg uf skilled prokssionals in regional untversltlcs. ts hxeh ttuutd encompass buildtny a stronger capaurtg' for MAI. potrc~ntaking, 9 . 13riority actions stipporttrlg agricrilt~iraland rural de~elspmcntthrotlgf? screngtl~cnlng agr~cufruralsupport services are stlnznnarized in Box 111.3. B.2, Supparting ecanarnfc infrastructure and servicgs 1U0. Improved access to reliable and affordable transport and comrnun1cat1or.t~nkastrticturc and serirtcesis necessary h r the gro~vthofthc rural ccortonly. High transport and camnlunlcatrott costs {at~dt~ldircctlyother costs such as high 1ctsI of product losses due tcr the unrcilabrlr~yof transport services) are key factors affecrrng returns ta agriculture and ort~crccol~om~cacttvrty in rum1 stress, l,imrled, unprcdlctablc, and cxpcnsixc transport and communscations tneans limited access to social serl~ices,lirnlted access ca Input and output markets, and 3rmitcd access to finatlcral ssrvtces. E:conamic infrastructure for local economic dettefapment 101, The it'atiunuf Ili.ansport Pkli (9TP;I sets strategic Jirertiurtf atfd priorities fhr tlre rievdoprtre~rtuf trittt,~ortif~fr~'~trl~ct:tl~r~? allxI scrvice~s.The dweet ~ o t ~and pncrrttlcs are set firr s short (20137-20'11), mediunl t20 t 2-10 16) and 'fotlg (2017-21126) term. 'I'hc Natlonal Transport Plat1 proposes a comprchcnst.t"e set of policy, regulatory, and snstltut~onalrcfornls to arfdr-css tlie niain Issues that affect tEte transport sector, rrtcludtng through: bulldrrtg capac~ty,both In fhe public and prrvare sector: increasing domestic funding capacity: rehabilicarion of the road nertvork and its mainlcrtance: It?lprovcfflenr in the provlstort of tntcr-island shipping scr.trlccs: and inzpro\*cmentof arr transpcrrtatrnnservlccs. In tcrnzs of institutional refbrms, at? in~portantchange rn the Ministry of Infmsrructurc Dcvclopmcnr will he a Ikcus on plannrng and rcgulatnry ftlt~ctions,t~rfhsertzrce dellvery bcrng uutsuurccd to ~llcprivate sector and cotttmunities. 102. The it%rtiurrni Transprrrt Pfaa piacrts arfpkasiti orr ifrtpr~vijtgrurcri access Rehahilttation of'the rural road netnvork and its expansion rs cnvjsaged In areas of high popularicrft de~sityat~decotlornic acrlr>ity,and tvhere sea transport ts not a tiahle opttrsn (for cuamplc, Weacfier C'oast of Guadalcitnal Provtncc). In selecting ptiorltlcs for rtive~fmettt,cnlphahis has been put on providing access ti1 areas that present an opportcinit] frx firrther agricult~rraf devclopmcnl by linking tt'tcm to existing markets artd t\ barfs."" Investrncnts ant1 113allttettance ttc~uldhe financed t h r ~ ~ i gahNatrrmal 'I'ransport Fund, fz,ith rectrrrcnf costs initially p r a ~lded by C;cr.t.csnrrttnt budgtt and gradually financed kom ~ncreaseduser fees. To maslrnltc thc bcnefits fix local communities, tfx Natrunal *l^ransportt31a1t proposes that tabor-based, cquipnzcnt- supported mcthctds fbr infrastructure rnatrltenancc and ntrnor works be tnstit~rtlortolttdby thc Ministry of Infiastrutturc Dercf opr~~cntant1 prrsx tncial guvcrnmcnls. I 03. What aburrt irtter-isla~dsirippiltg .serrtice.s? 'I'he routes to enlotti and Kenell and Bellutta Pruvl:.tccs arc reported to be uneconomical to operate. This is also the sltuattcrn fbr a number af snza11er outer islands and remote arcas uf Chutseul, Isabel, and hdakira Prrn.inccs. Shippers are reluctant to travel to those arcas, 'i'hcy are rlot able to ascertain tvhecher there rs a rcy~xfar volutttc of cargo to crtsurc profjtattlllty. RuraI producers are unsure whcthct their products ivill be collected and therefkc reluctant to Inyest further in cash crops, Go\ crnrnent's response rs to ~srovideiinancraf supporf (suhsrdxcsf for non-commcrclal scrvrces. The fkasibxlity oC d~ffsrunt optrrrns ts being asse~scd.~'" "' i lfiuscarc cotlslstclxt~ x , r f fthe findings OF tile Sn~nlll?ttldcrAgriculture Study (AtlsAIf). 200bbf. ~ > I n It1ifrc tlredltim tn long term, air transpurtrttxon could stil~rulaterural groutl?~, partxcr~lartlzruugh tlte in rmprntcnletrt af ific don~cst~c~~et\%orkprovidu~gaccess lo xntemafii)nrtf trtxrkets fitr fresh produce bq tnrarrnc products)and by lhctlitafiny the dcvclupment oftourxsttx xn rhc atitcr rslntlds. sYofr~iiin/~ hfutlt8 ..fRfiS Rzrtfrfr'irgfot iif.fi~~ttrt?rfi~trt,rti.foi, tlc~t~c'fnscrhiccs irt Sotonton Islands 1s one ofthe htghtst tn the Pac~fic.'fhis rs due In part to the structuw c3f the sretur. Tlte absence of art4 hrph cost crt' telccoii~municationser~ices impedes 1ix.xrk~tl17gand access to nlarkct infi3rmatron fbr rursl producers, and constrains tito do.tpeIopmcnr of financtal scrviccs irl rtrral arcas. !Vlthout access to affordable tetccorn~~~~trricilt~ons~ na access to affordable bmktng scrsicrs, in May 2006, Ikc only ttxre rs bank apcncy tn Ktra Kira, bIak~raProvince, chargcd SISI2 to cash a check: most of"the charge itas the cost OE the agcncy phone call fo f Joniara to ~alrdarethe check --as a result. not much dcrllantf kit- rhu scr\.lce. 'f'herc are numerous esaniples rn ilthcr cuunrrles abnur the yvtcitrinl benefits of better access to tnforwntion and communication technology in rural areas. 105. Irntpmrrntzettr irt flte reafriatr~ir~~~.frattrcyrrbsrk, rc,, proposed by Go~*erttttiettf,rr+urtldredirce $/reco.stt rv'tc"Zec~~~it~irf~~icafioftits srrt~icrs r~tralareas. And it t\auld pave thc \\trr2f rliu r n ~ecoirortq: It also makes 1t difficult for further pract.sstt.tgor packaging (for storagc or taluc i added) of agrrcultural products. Expct-tcnce In other regiotial co~irttries rndtcntes that opportunttieu exist througlt cftc ndo~~ttonof rene~taablrenergy tccl~nologicsto address some of thc needs 111rural arcas. Solar energy ts one alrerrtat~ve.Another opportutlity IS rhc dcve'lopment of the tise of coconut or1 lbs thc production of bio-furls and drcct substitutes for diesel as a transport f~rclin country. I 07. P~icrrifiesfur ixtrtestttteirt,From thc pcrspccti~cof thc pubtrc sector, dcclsions ha\c tcl bc made in ternls of lsrrorltics iirr ~n\cstrncnts.f'rnorities must take mfo cvns~dcralionthe share ol' rcsourccs to be ullucatcd to the dc~elopincnttrl" surticc pns~rsiontn rural areas (as opposed to meeting the needs of itrhan areas, par~rcularlyin SIoniara). C'on,sistent nlth thc Gtsvernmcnt's focus on rurat cieveIap~nenc.I? should be eupc'ctcd that a substantial share of the publlc budget de$"otcd to improving access lo cnergy sotrrccs ttotild be allocated to expansion of' service pro~istcrn,as well as rhc prontotiort sf rcncuablc sources of energ! in rural areas. 10X. F%nonty actions supporttng agrictrftural and rural cfet clopmcnt througfs ~~"irastruttureare surnrnariwd In 13ox I1f .4. 'q~copleT:lrst ?;rtt\\ork is a ntrnl nc'ttlrtrking project that promote$rural det elopmrtnt anti pcdcc btiifdxrtg h:, rnahl~i~gaffordable and sustatnablrt rursl cox'ttxectia~tyand facxliiatii~yrnf'rmation cuchangc bcir\t't"n stakeholders and cutnmtinifies across the Suluxnon fsfands. It llas csrsblisbcd a grouing rural conlt3ltjnrcatlonssystem based m\\~reksscmaii netnorking. in the IIi- band, altd dcplnyed nrtb filfl canmlurtity otincrshtp. Bur iii.4vPriarifyacfidrrs:ktf~usfruc'titrr? ntr~tl&~rei#pnre~rt for 8.3. Paving the way far the expansion of rural finance services 109, 1,css than 20 pcrccnt of' Sufomort Islanders haye access to financ-ral ser\'ices. 'I*hesc.fktv arc. rllostly among thc 15 percent employed in tlic %age ccononly and near provirlcial ccnlt"rs. tlotirara and GILOart tf'tc psttfcxpal commercial bank lucatlons where thcrt is a 111ghc.r-1e~c.fof" munctny acrrvlry and relatively lo~vcrnsks. 'I'hcre is lirtfe financial rnsrituttnnal prcsencc ~ r tthc rest of' the cuutlrly and Rcnrtcfl and Bcllana Prat..lrtcc has none. ~Ihrtccorn~??ercialbanks (Natlanal Bank of Solnrnon Islands, AN% Solon~onIslands, Wesrpac Batlking Coporatton1 arid 33 ,srr'tall credit unions arc act1t.t in rile Solorftoft Islat~ds.w ~ t h98 pcrctnt of"total asbets in iioniarn. ? " h National Bank of Solomon Islands, Kacronal i3rotidenr Fund, I-ECF, and 30 a h h c ~ xursrvrng crcdlr unions at-c srlll fiicing scrlaus d~ffictlftlesrelated to polxttcal rntcrfhtcncc, poor manayc'mtnt, urrsatlsfactetory faan trppralsal, t ~ c a ksupcrt.xs1ox.r. unsuitable bonaticrs, and Go~.cmmcncdeh~tltson rts debt, 't.lrhileC ~ C S L ' are sxgns of'Improtcmcnc, rhc banking sector needs retilt-ms to make further progress. I I Cl. The scsrcip uf rirral fitrart cia/ st.wict.s is dirt. to a cuttrbirrr~livjluf Ji~cturs, l~inanclal service prist iders offer fittlc actit'lty rn rural rtrcas and perceive iib~~c~jlturcand assocrated lending acttt lttcs as htyh risk, cttstly, arid dtt'ficult trr manage. fnsccurtty it1 rural arcas and the ctha~nccof conspeten? secusrty fim~sfix cash tsanspo~~,togcthcr t+tth the cxcfusian of ftxcign security "irrms f lii~tilrecently), hasc cuntrtbutcd $0cutzatled hank actrvlry stnce thc Tensions. 'Ihc scarctty o f financtafscrt tcc providers results In lotv-lcvel mob~lizattonof rtirlil savrngs for rural inkcstrrtcnr and shortage of' cash Tor busrness operations: and imposcdhtgh costs on %age earners \\ho fi.eqttcntXy tiarc to tra~eilong dxstances to cnsfi pay checks. C'rcdtr, unions and microfinance rnrriattves have had drf'ficulry 1~1thsustclrnability. Sin>ilorto cxpcnence rn other countries, SIC; intt"r\rcnttorrin direct prutLrtstonof'rtira1 financraf services has been unsucccssfbl. Tncs rssucs L'ur r~rralImding are the dtfkicicultres In using community-liteld 'land as coflnteral and of financing cntcq~r-~rtscsrsn leased land tvhcrc the ownership <.ifalicna.tcd land nlay be challenged. 1 1 1. The nwrr tnwurd the cadt ecott~nlj'is OW' ~'e"lj-eslahiisketi~ Rural households are incrcaaingly ustrtg informal loans at very high intcrcst rates. The capacfty of' traditional suhsistcncc systems to provide for needs 01' ct.tnlmunity members uitf-rrrut access to cash ts decreasing ~trtderthe influence of demographic pressure and the penerratran of ncnzldcas. goods, and ser\>ices. Ne~*crthelcss,many rural pcoplc In the Solomon Islands arc frightened by banks; their finnnctaX frtcracy level ts Ion. Most rural households arc more concerned tvitfi econonltc sur\"ival than 551th cconorttlc derpcloysmcnt.Mtcrofjnance loans arc not appropriate for most of them. 1 12. Gu~~errrrtterrt-backeclrrrral cwd&pvogrttrtzs iinve failed. Prtintc sectcrr banks have fc'r;trp operations in ttgrlctilture and nutie wrth smallholders. While the apparent 8tct.d for rural finance rcrnains hrgli. effccrxvc demand is low nlth rcsuEtlng high liyttidrty s~mplybecause ofthe shortagc ofbankabte proposa1~~r7deligible cttston?ers, Prudent managcmmt as in the private b a n h results 111'llttlc niral exposure. Weak tnanagemcnt as in the 1>13SI(md credit unions rcstltts in f'sttlurc. T'hc puhllshed annual reports of the three comrrtcrc~aEhanks prolpidc clear c\ tdcitee of the marginal -\.labrlrtyof"retail banking tn the Solornon Islands even uich prudent management. A push into rttral lertdrng prtor to addressing the rssue of' hrgh aperating costs imposed by the tclcconlmttntcntion mc~nopofyand other tmj3edtmer.trs to business \vautd need tt.t he h18hhl.y sclcttt.t~.The May 2006 (;avernmcnt Policy Statenlent lilr f3artks and f>tltcrX:tnanc~al Enstituttot~s envisages the cr.trttitiuat~onohhe banking sector rt'forni program. I".kcre arc some points rcquintlg * tiirthcr clarification, such as the p~ssibilityof cnncellng or re~tructurtitgdebts to DBSL and ocher state-otvned financia'l inscrcutlorts and special concessrans to encourage t11e entry of hrotgn banks. tVi'ttlc these n~easuresha.i+ea p o s i t ~ ~~rttcnttcrit,tvfiatcver processes arc used, to be fully c transporcnf, ill need to be chosen wrrh carc. t\ 113. Is tire Solottt~ttIsja~tCJsready fur a g e ~ t c rtlrrrl firlalrce prr,qrstrr? The ARI2S- ~ l cunductcd prtrvtncia'l ctsnsultat~ons conl'irmcd that most hottseholds arc semi-subs~~letice prodricers ttl~oscttitain financial reyuircn~cntis cash far ctsnsumptitrri (fbr uxample, schooE fees) rather than investment in productrun. Inc~rrrtngunsecured debt without a cottcol??~tantrrsc in income ratses rlbk to ttnacceptablc le.tvelsfir hcsttseholds, hanks, anif dcposrtcrrs allke. H'littr t t i ~ fhcttfrtinatit~ttr:''~ 1 . Qpriori 1, Injection of cash into subslstenct. Itouscl~oldsfor consumption should not bc tf'frougl~debt bttr through, for exanzple, labor-tt-itcnsivc small inrrastructuro projects whrch also prov~devrllagc lrrtks to major rcrads axrdjotrics. 2. O]?riotf2. Ikbt financing shotlld be restricted Cn cotttmodtty productrun or crops i t ~ ah strong cash flo$\t.,such as cocoa, and tsherc a prtor rclationshrp has already ttccn cstabllshed, such as betneen traders and @-ott.ers+Among successful nzodcls of rtirst finance kas bccn that 1%hereby traders obtain secured credrt from banks and rm- lend to knou n &youers, This redtices transaction costs and risk. 3. Qpfintr 3. Promote confidence in the finance sysrcm through offer~ngsavings and cash management strvices. 'This 1s thc basis of successful sr-all-savcrs programs at Bank Rakyat Indoncsia and Vietnam Hank for A&~rcuIcureand Rural flevelopmenf among otf'lcrs. fIos~esrr,this ~ ~ c c tosbe approached tt~irhcautiotl En the Solctrllon d Islands since there are f e viable investment uppot-tu~~ltlesfor- rhc tntem-iediarrcs to ~ guararltcc the safety ofthe n~uhiEizcdsavrx1gS. ti ccofnman obscr\"atton made by respondents during provlnctal convultat~snstvas the bad ~eF)LiZiPFlOfIof def~inctcredrt inslitutiur~sand distrust of hnusefirrfds for those rnstrrutronu, Cash maxtagcrrtcnl scrvlccs arc also dll%ccult to manage. I:or thc tirite bcmg, C)pt~on\t and 2 seem to hakc cf~ebest chancc uC success In meeting, ctx cast2 needs and cffecrr.i.e credit demand oS tttc largely subslstcncc sector. S hcrc 1s also a place for locally rnartctgcd ~nlcr-ufinancct+here special * Y trtslstutxonal ctrcumstsnces pemlrt (lor c~s~tiplc', m ~ b i lbanking pilot of Ah'% rn Guadalcanal the r Pr-01ince). ffot++e.tsrr,a ycneral supply-led rural finance push would seem premature and tvould soon end with loss of capital. In the short term, sofutlons rherefbre mostly lag outsrdc rhc finance Xcctor. 1 14. At the CBSX-sponsored Natsrrrtal Confcrmee on Re~rtailzlngRurnf t;irtancc 1r.tthe Sotomon lslands in Aprd 2005, a broad set of recommendations uere mndc to thcilttalc ri-tc cxpunsron of rural fir~nclatscs~~tccsrn the rx~cdturn.to long term. The bcsl options to ~mpc'rtbe access to financtat services in rural arras are sunzn~an~cdin Box IIi.5. Srt/ftr~rrtir /.\fir~nJr..IKSJS Btriidtrtg fortrffttvittfirrrotrijttri*trrcdt/t~t*z/rtpntr~ti C. Managing natural resources: Local benefits and sustainable growth E 15 . Suataijtabie xtatrrrai ressgrcre xtrarragertreaf is n cerrtrai pifilar r!f (4rrrral devr!inp~we"t strategj*filrIRP S(~lnrtrr>~Isla~ttls,Natural rcsourtcs arc the nzarn assets of'rtrral comnturtrtrts. F3eyond groit.th consrdcratluns, policies and clcexsions wlth regard to the management crf xtatural resources ~ Y I I Ihave mportanf beartrtgs In ternls of tfte ~ f t s t r ~ b ~ t iaspectl OT gggotvlh (income and ~ n a empfoyrrtcnt gcneratton, d~srrtbncion of hcrtcflts ta resaurce o\srners) and in rnceltng the asptrottons of resource u'ivness. Cicsvemance issties in thc frzrrstr-y sector contintic to bc a socircc of drscorttcnr rn rtrraf areas and f.tase been affecttrtg XocaI conzrr?unrtres' trust in rraditronal artrf golrmmcnt inhtilutions. 1 1 . There is ii sfrt.oxrgrt.latiott.sltipfidtclee!r irttprcrrted rrrttlrral resolrrccr Ittatisgetrtetrr arid fixrrrrtj gmtrifi?pmspeets. fnyrotrt.d land adn2rnistraftun and management has rrnportant tniplicatlons 1st terms of' f'uttrre gro~llt,far example, chroupfi infkstrucrure dc~efopment:rhc rcsrttutxon of land ~sstiesaffccnng exrsting plantattons: the resolution of iriler- and tntra-t illage Iand dtsputcs lrxnittng further lrtvcstmcnts in land: arid approprlatc contractual rriechantsms bettvecn comnit~niriesand potential develcrpcrs. Permanent or seml-pcmancnr migratiotts tc'r arcah hcrc er~ploynient~ppurtu~~itiesare a ~ afable havt rcsuIted in social conflicts that affect i Xabor moblIity. Suhtairiablc management of forest and fisheries resource? bvxX1 be determinants of" f~ittiregrtwfh. Firrally, the potenttat for tourism devclwmcnt depends to a stibstantral udcnr cm the capacity to preserve the cotrntry's environment and rrch biodi~ersity, 1 1 '7, i.l%st csfrld he dntic diffbrertt ~ Y O I I Sthe pitst? Rccognisrng the importatlce of sound natural rescturcus riianngcment. the Go~cmment'spnlrcy .I%amc~ark (GC'C'C;, 2006a) proposes an c~r~bttiousagenda of r c f o m ~af natural rcscrtirccs managcrncnt, covenng land, forcstrq'. and fisfttrics, Eftsnrcx.cr, past records are not good .i.i hen tt corrlcs to relbrr-ns in natural resources managcn~cnt117 the S~fclr~f~c~nislands. lkst atlcrrtpts h a t ~usually met the rcsisPartce of strong lr7tercsts. and 1tn"ttted capacity in puhEle rnstitutions has liirther Ixmtrcd prcrgress. 'I'his scctron dlstusses st*hatcottld h t ctchxe~edin the short to medium term and \.that is ltkely lo reyurro a longer-term fi-ttx~~ctvorkto product. the cxpecrcd results. C.7. A cautiaus approach to land reforms 118, I,ond is the crnty asset held by the majonty of people of the Satomor? Islands. tl'ithrsut land, their labor 1s crf' Xtttfc ~nlticas there are fen opporruntt~tsfor nun-t'atrn .ic.ork and fen* haye capital. Any actions that alicnstte. degrade, redistnbrstc, or othertvisc impact on Iand affccts 115cttftouds, idcnr~ty,and culturc. Such actlons coritnbutcd st~bstant~allyto thc 'I'ensrons. CZ'hltc 8'7 percent of' land is under custorrtary tenure, the fbcus of land adnliniscration has hrsrortcally bccn on altenarcd land, tvhfch rs generitliy located rrt thc n~ostproductir.e areas tilth gcsod inli*astructurc access. C*~isf~t~taryland tt.nure has generatly pro~edefficzcnt to nzarntain access to farid fur thc rnqortty of rttral Sofomon Islanders. EIotvcver, custot.tlary land rcnurc sysrems are under pressure to adapt ttr inel crs~blechanges: populatron pressure: increasing demand for Eand titr public pttrposes; b~eatcrsocial n~obtlltyand migrat~ort:and nenr expectations franz the cash economy. I 19. How dues the state stJpport citrd fucilitnie tfib erolrrtioit so irs to s~rpport~'~'urzotttil: grorvtli ntlrile rtsairrrnirrirrg iartd ietrrtrt?secrtrit;)'irt riilage.~?In other u csrds, hot^ docs the state 2rnprot.e Iand administratrt3n and nzanagemcnt s~stcsxsso tEti~tland ngltls arc strengthened. land disptstcs arc settled e%cttvely, land transactions are hcilztatcd, and !and can be mtrhlli~edfor public purposes tt hen needed? 120. There are ccntrntirrg eieir$.sabout givijrg prdurirJ.'to the iarrd ref~r~tt q,jentla. I his is a * " dtff~cultsttuatian for Go.i.emmcnr tcr resolve since rl~crearc strongly held opposing vieaPs: * C'tisromary land tcnurc irt-tpedes ccununilc dcselopr~~cntand reduces the eommcm nelfare: versus Custcln~aryfartd tcnurc provides the Itvelthood and supports the srtcial f'abrtc of the ptrpulatron. l h c S~f-raltholderAgricultrrre Study (AusiZfD, 2{IOCrh) concludes that land tenure and access to t and are nor nyajor lssucs lor rural househof ds dcpcnd~ngon rrddxttortctl scml-subsistcnae systems fbr their l~~elifroods,In contrast, crthcr sources unlphasl~ethat land has been a major source of drsptble~ anlong and ntttlitn ~~rllagesand a key curlsrrarnl to agrtcultural production and int'rastructure developnlent (CBSI, 2005, for example). 'I'here is hog~evercommon agrccmcrrt tttal tfic tnablfity to address customary land ~ssuesprofnotes insecurity and mistrust anzony communtties and investors allke. 2 1. T / Yewrp~rierrmin flre Soit~t~ton ~ Ivlanri,s is .sritrilur to titat ilt utiter ct~unfrie.~ titu iirr regioirrr. 'This is atso the expenencc in places tvhcrc there are large indrgcnous communrtjes on ctrm~~tortlyheld land. As etsetvhcre, customary tenure rights arc not well-defined In latv, and ctistornsry land rs ef15ctlsefy trcatcd as a reserve of natural resources able to be captured by nun- mernbcrs OF the ctrmmttrlrty, 't he mrrin land ~ssucsarc surttmarlzcd as follotss: * In areas xvherc these is pressure on land development, ccsmpeting claims as to tvho represents comniunttrcs and ntto 1s ablc to negotiate ott their bchall'tn rcscrurccs dcals are fi"eqt~ent,and the risks oi'cllre-capture are hryf?." * Customay land otvncrship disputes have clogged the courts. "Yhc f,ocal Courts arid Customary Land Appeals Courts are inoperative. * tl'ofncn have few opporttlnicres to present their vietvs and defend fhcir land rrghts. * ?here is a large backlog in the land rcgistrat~ortoffice, affecting a lumber of land devefopments (including h r infirrstructure). * Pressure fisr the rctum of alienated land to tribal ou ners (~tndcrperpetual estate tttlc) has btet~mounting. EIo~vc~~er,the Idandkct only recognizes indi\+tdualotvncrshtp of' alienated land and titrt cot~'tmunaXot$x~ershtpby tribes. 'Ihc prclccdurcs lisr ttte rcturti ol'aftcrtatcd land need clarrfication. Ctsn~ersely,sonx crf rhc rcttirncd allenatcd land has been lcR undeveloped. l'hc current legal and land adn3inrstrrttiort institutions arc it1 prepared to dcal with Iltc~sc~ssucti:the Icgal ftatnework for larld (Land and 'I'ltlcs Act, Custorrtary Latid Rtcoriis Act) rtccds updatrng. ^l'l.tefleparrmcnt of Lands adn~ltttstersthose to the best of' its abllity but criticaflq lacks the human and tinat2ciat resources 113. ,l'e~vL~trdPoliq. The Got~crnrnentissued its land pollcy statement in May 7000. The I?o\ernmcnt intends rt7 repeal or a n m d existing laws to wakc custrrmary land a "bankable commodlry'hnd cc.1~rltroduccrck'orrns lo prcrmotc economrc development on these lands. 'Inbcs xlould bc 2reognized as corporate cntrties ouning land. 'I'f~cnew poltcy also appears to rct erse 17 "" 1-or cxnmpfe, r~rgoticttrclnsstt ffte 1sabt.l Nlckcl ktintl: (St. Jorgc) V,CI.Ccarried nttt in f Iniunrn stt tho tit rcprcseirtatton of the tsonlen ixr n mntnlxncrtl land sysrcrn bur tsttir cornnruirity trustees enrpfoyetf by the rnirlingcompany, the ~xro ilcisn fbr rcturnxng alienated lands bccausc much crf'che rettirnctd lands have not kccn piir to prodrretxr.e use. 'I'he atttlxtnty to allocate land tvctufd be transf'crrcd from the Comnlissioner of 1,ands to m tridepcndcnr laand Trust Board. 123. E+~prt.ieitceirr the SolurffnrtIslarrtls arid olsesrtirct.l. c01ls fiw a catld~lt.~ ~pprcjactzto rejbi4#ttP f#Jocting cusrortrurj?lurid obcfrtrrsltip, Somc trf rt-tc relctvantlessons are summari~cd bclotv IPac~fic2020 rcpcsrt, 2ffO6): 1. '1E.t~need fhr a step-by-slcp spprcrach because the matn constraint rs generally thc capacity ltncS quality of the land admjnrstratlon scrrrlccs. xx. ,% fi)c~ison areas tvhcre there IS sn urgent nccd fbr change (tncfudrng for pubXrc puq-tases) and a real demand fbr change at the tocal (trllage) fcvcl: a ~ bvhcre the d admir~tstrarivcand f7nanclat resources arc a\ allable to support those changes. irr. Adapting cturstlrtg land tenures and pilotrng those adaptatiorts bcfc~romo\vinginto broader land tcfornis and legal changes. rv. CSnfy chang~ngland tenure to the tstertl that 1s necessary. Kctaintny customary u\sncrship of land and making provtsions litr lease far those who want ro develop it. t., I.and dispute rrsolutton mechanisms that ref? on flcxtl-tlo and irtfi~rrt~alsystems "iocusingon lasting sertfemcnts bett'u'ecripartxcs rather than strict legal adjudication. On that basts, a sequenced approach to land refon~~ssccr~sappropriate far the Solomrw Islands. fl.'flilc tftc main issues for land reform arc well kr~otvr-z,more rcsearcli, fsubftc dialogue, and piiloting nil1 better inform stakef.tcrldcts ant1 yrcld broader results. As described above, the respcrnsc and pace of cl~nnpcalso nccd to be ccrmmencuratc ~t'1tf-1 the capacrty of the land administratiot.t. Kathcr than in~poscd&om the top doivn, the pacc of cliange needs lo tte dri~cn locally tt here demand ctuists: such as one example for a short-term action, for finding ~ c ~ l t l ~tol ~ n b ~rnwsolvcdfand tssucs 1nhcrrtt.d %om the period of Tenstons. xn pasrtcular in C3uadafcanal Pnsitrtcc. 123. E%xcrrttyactxons sttpporrrng aagricultt~rafand rural devetopmcnt through crdaptaticrn crrt' fand tenure systcms arc summarired ~ r Box iiJ.6, t Box ill. 6. Prior~tyact~ons:Supporting adaptation of land tenure systems C.2. Preparingfar structural changes in the forestry sector 125. 170rcsts,an rntegral part of the land owned by rural communltlcs In the Solon~ot~Islands, proi~dea continuum of ditersifiecf benciits (house-busldlrtg materxals, bush 133ectt,nuts at~dfiulls, r~~cdictnafplants) that cont~ibutcto rural 1ivelrhoc.tds and form a crittcal part OF 11vt.lthood risk ~IIttnagcmcntfor over SO percent ahthe papularlan. Solomon Islanders depend on ovcr 600 forest ~xoductsfor thctr subsistence Irvelihoctd and are incrc'tss~nplygaming rncomc %om thc sale crf fitrest pwducts. Forests arc the land bank far shifting cultir.atlo.non which subststonce agnculturc depends and arc ccncraI CBthc twdttional soc~alsakty net. 'I'here arc three areas tvhcre public actlort could contribute to gro~vthand rural livelihoods from fcsrcsts: (a) better control of' luggtng of"natural forcsts: (b) stronger focus rstl cunscrvatron in the short to mcd~urr~term: and fc)support firr the dcvelopmcnt of plantattons, ~vhtchwilt produce benefits in thc longer tern?, 120. rite starus of ;'rrairduuljhrest vrtotirc~.~ rapidi'v ~Jelctricjrcttijtg. 'I'hc tiatttr'al fbrest is rescrurccs ti the Solomon Islands are helttg degraded and communirres ~n~ptrscnsfted, The decrease in forest vafuc is I Y ~ U Cgrcatcr that7 the ~ n c r ~ aineagr~cultu~ttfproCfutf~ortt al~fe,royaffy ~ s share, and tf-tevalue af'other lncorne transfers. The ctmenr annual logging rare 1sovcr one rftillton cubrc nxters, at least three tlrnes above the sustail~ableharbestrng rate est~matc'dat 300,0011cubic ~?zclersper ycctr. togging of'pntnary forests and harvesting licenses have been xssuccl f~srnearly 90 percent of forest areas suitable for ttrxber c~tractiort,Choiseul Provlncc has thc only large areas rentclinlnp of' un-logged prin~aryforests. Elsc~vherc,re-entry logging is degradtng spccics conlpositlon and damagrng tvatershcds even fttrthcr, 'I'l2e most recont forecasts estimated that the a ~ ~ e s s i h~l e~ a t uforest resource ~vtlIbe depfefed by 2012. r ~ l 127. tdf~g,yirfg revextncs tlrut arc r?f' rtrajur ecuncnttic r'ttrpcrrtanccrfbr lire cuutrtcv ccruld he .s~.stuirlrdeven &@oftd r?tc e.vpected&up ofrerterrriex r'rt sir tu !rift@yeaus. Logging rc!*entles are thc largest source of government ret enue. clverttgtng 15 percent aver the past fFvc ycars. 'Ihts ts expected to rlsc rri the next fcsv years duc to the acccleratron of the logging rate but then to 1h31 as resources fiase been fully explortcd, A March 2085 audit report on three eorrtmercial Ecrgging opcmttons f'ct~indsyster?irc malpractice lrtadtnp to major unde~aymct~tof royalties. 'l'herc ttas el.ldcncc of systeniatsc under-reporting tog ciuantittes and fab prices rcccrsed, as ncX1 as transtkr prscst7g to ct>tiecal real \value of the kansaetron, '81th proper revenue colfectron, a reduced harvested quantity uould return the same income to Ootcninient at lotver entvironmental cast tvtthout the nctlld to harvest at unstistalnrtblc tcvcls. 128, T%t.disfrihx~tiorrcrf' Ioggitrg revenires a h orteetI,s rer*isiorr and tigfrter L+I>HII"~>I *I'he largest share of the ihb prict of roirnd log exports (60percent) goes to the loggrng contractor. ?'he C;c).remnlcntrccctves 25 percent In duties and taxes. 'I'hc liccnsc-holder and community share the remaining 15 percent, in theory, the license-holder negotiates tvitlt the community: but in practrcc, negotiations arc unFatr-if they rakt place at all--and condtlctcd s++iththe often tlntnf<~n?~edsillage elite. The community mcmbers are largcly excluded front mcaningflil ccrnsttltatic.tn. I)iscussitrns n ith v~llagersfvhere loggers are operatmy quickly rcvtal that they do not knort how n~uchrs being rccctved, \vft~operates the bank account, and hatv the fitnds arc bang used. Rcqu~rcn~cntsfor transparency and accountnhtlity arc not enforced. At t rllage fet+cl, this practice 1s prorsloting regressive tncanw dtstrrbution, corrttptiort, and a breakctotvtt of' confldc.nce rn cradrtior3al tcprcscntatton. Loggrng companies crffer local ecsmmunstrcs kts oppct~~un~ttcskrr sktlIcd n ork and technofogy transfer, tsitlt f;St.cig~Iuut-kcrs filIlng sk~llcd positions. ('ampcnsatoy commtlnity der'eX~~ftne~ftlt~~cemcntsarc usually not honored csr cot~tn~cttsuslttcirh foss. n 12 . ToarfdresAvftiumissrrrrs,a Eirre.sr~yPolicy Sfafemewtcrtrtsissr~etl63.Golterxtxfrcafixt tt".tZajq 2806. 'S'he f'oltcy Statement contains most 01' the cfcr~~ents n t~odernand fbrtf.ard-thinktng of f'ttrcsl poltcy. trtcludtt~ga moratorium on Issuance of ncu Icsgging lrcer.rsos (tsh~chisas issc~edrn i2tigtist 30061 arid mandrttc>ryref'orcsntron. (T'nfr[liepolic:t. i'ru r~i!frti.r~e~ffrt crtvirfftl,.r'htj,.ritpft~frort r!l.rlic ittrrrti.~druscjttrc~tj.\ifr thtt crttrrtri? ? Much of the rer.ttarnlrlg naturltl forcst is already under lrcertse. 1-he 2003 forcst poftcy nas sound and ccrntained all the clctments of"ycrad practice, includrng taking the long blew oi' f'c~rcstmanagement and strong support fbr ccological ,iu~t$rnat711 X lot! etrcr, tl~cpolrcy remained largely not rmplen?cnted. 'I"hrtprtrposccf I:arcsts Aec tty, of'2004 was drafted to lmplcment poIicy b~ttttas never enacted. desprtc sevcrul efforts. A rctvxscci Code of' 1,oggrng Practtce n a s enacted in 2004 u ~ d c rthe eststtng I9Gt) l;c~restryAct to try to better regulate lugging, hiit cannot be tnf'c>rccdclue to lack o l ntandatc and capacrty to manitor and enl'c~rcepossible tcrongdoing. 130. I#i?akiirstitzrtl[jt~almrpocit;i.ixr pnrticular fur c.x?furcent~nfrfrrries axxd regi~lafiortsi.s .t.rlru mc!jor cnnstrr~ijlf.It~strtuttonstn the Sorcsrry sector arc characterired by lack of' clarity in their rcsponfithiftfies, inadcqttacy of' funcflrtg, ir?ab~lrtyto cflilcti\ely prosecute. tack of ndcyutltc capacity. and lack of'political and Icgal stsppcsrt. Ministers can and do over-rule decrsions by the C'rtrs~rttxssxortetof F;orests made in tf-te rntcrcsts cri'citligcnt stenardshrp. 'The Forest Resources and 'I'smher l;cilixatron Act, f 969, and the E:nt.imnmcnt Act ha'ipe prt7tven incffccttvc to address msiror-tmcrtcalissties u it11 Forest cktplortation. 'I'lte F~orestResources and 'I'~n.tbcrtrtttrzatron Act do nclt tnclude lcrgglng and road standards dcspitc attempts made to address thrs dctficrency through rcgulntions undcr the Act. Ffowcrrcr, thc legality of those regufattons was cftnllenged in 20ff6 by the Solomon Forestry ti2ssocration. tshich represents the interests of logg~rtgcompanlcs, ifttctmpts by (Isabel) prot"incta1 authoritres to bring legal actrons to stop yrantrng of exccssrve logging llccnscs ftavc not been supposCcd by thc ctturts. Fur nztninlr~it~gcn~ironmcntaldcirrtagc under the <'ode (sf 1,oggsng fVracticc, the Idit+isicsnof 1:n~ircmmcntand C'onscrt attcrn has a staff of' only ttso persons (as of May ZOQ~)."For n~onitonnglog cstractlon and exports, the Fcrrestry Dt.tvisiondoes not have the hunzan resources or adequate budget to even carry out the rcyuircd 10 pcrcettt saftiplc crt'lcrg sh~pments,Imprest accounts are cornn~ortlyleft urthnddc for months at a time Icctv~npthe Forestry Ditrisicrnstaff ivitht~utfUeE for monltarxng artd supcrt'tston, At ~lnctonal Xcvcl, cor~tlietof' interest rnvoli+edrn decistons by polrttcians affecting logging has been acceptcd as r~onnal.leading to resentment, dcmoralizatlon of the e~t.llservrcc, and the breakdown of conlidcnce in govemnlent and politrcal reprcset?cacrcsn, 131 . T#~rJrclrestrysector r t Utreed tr, adupt fo decrt.asitzg reveau~.sfrutrrauta'uralfu~e.s&saxrd rrjr'illargely depetrd on the tieveluprrretrrin ilsr?pIar~taiiuxrsector. The outlook firr plantations 1s n~txcd.nut only because of tincertain retunls btit also because of tenure uncertainty for both households and tnvestors on customary lands regardless of lease agrecnzents. These habye hccri drsputcs over who is the actual resource uitner, Suhstantitc changcs in latid-related aspects are not expected inthe near future, While there are exogenous factors (principally, thc future cxporf pnccs fbr tvood), the key cl2alfenge 1s to cstssblrsh sustatriable systems to assrst srttrtlll.rcjlder tth training and infbrn~atton.plaittlrtg materrat, quality controf, and access to markets. Cjnc ttpproactt .tvotild be the tnvnlvemet~tof cxistrng large-scale com~tcrcxaloperators (prirpalescctar) kvhcreby small-scale operators, such as rural households, pro\ide materials to the large-scale cunlr2~erctal operators via lxnkages wrth the developnzent of out-grower or simrlar schemes. 'I'hcre arc ctio $slantationsoperations f Kolumbrtnpnra Forest Products, Ltd., and Eagon IPesources Developmcnt, L,td.) that could potc.ntlally play chis role, f~oiveverboth nzcrecxpcncncing finaftcinl dx"ificu1rrc.sxn 2t106. f 32. Ev~partsiorrc?f srttullltol&r pllrnrittiuns Rns povrrtial but inx*ulvusrd%s*Yks.'S'he rxsks t.t.131 t~ecdttr be addressed if the full benefits are to he reallzed, Sn~allholdcrtsuocl lctts ttcrc est~t~~atc'd to ctst'cr approximately 5,400 hectare tn 2006. Sc\.cst\X consxderatlons tvlf 3 be necessary in supportrng the CfeteXoprticlll at' sr~aflholderplantations. For one, nwst of tt~crecent pinntings har.e been in teak. ft ttould tficrcforc sccrft that, replanting other species fin particular silth a shorter rotation) ntould spread the risks for groscrs and pro\ xcic an opportunity for ear31crmcor~~c. Another consldcrattoit xs that of land use planning, in particular svhcrc plarttatlons tontpcle tvitf-r the use of land fbr agrtcultural act~~itlcsand/or %here plantations rntght cake placc in areas ~msttitcdfur planting. The thrrd ccsnsideratiun ts that of market access and the ttced \\hen sefecflng plantation srtcs to take into account future nlarketrng constra~nts. l'hcrc is a rrskthat i~tcsnt~vcsrn the form of subsldtes or1 inputs, ~htc1-tarc commonly abused, or free sccdlltlgs increase planting ott rrtadequate sites duc to high n~arkecingcosts, ~nsurfictcntsptcrcs site suitabtltty trxals, or othcr constraints, i+"irtally,the capacity of' the Forestry flepartment (or any other institutron) 111 ~Tlon~forand cottrrol tnvasivc specres and pests and drscascs %ill remain ION rrt the corning years. 133. Dnrtrcrsiic prf)cessitrgrfur mporrs is 14#liikE?lj7iu be u ~tr~te,qy%*lrfc/ltvill ~ I " O I ~ ~ . I L + V sfr6.sfarrfr'alndditiottal econortric 6en1,Pfs.Donlestlc pmcesstrlg for exports 1s cuncntly Iln~iredto sasvn tinher production fwrth small volumes of 6,000-8,000 cubic nlerers per year on average). A~.ailabfestudres xt~drcatcrkac,tn the Solomon Islands, pruduclng sa.ispntinsbcr h r export rs nat Tinstncrafly viable and ISless proiitablc than titg exports. 1 33. Pu~esrpruiclciir)tz atrd rurzs~rvatirrrtiras received a low prr'crt4iiy.'I'he Solon~ottfslat~dsis host to the lotvest percentage of*terrestrial protected arcas rrt the South Pacrfk, c\"cn the tsorfd. 'f'lierc is no legal f'r.or~eworkfor the cstabtrshrrtcnt of*protected areas. Despite being a member of' tfic C'otit.erttron art B~udrr.ersltyand having corrtmittcd to the estahlisl~mencol' a reprcsentnt1r.e system of' protected areas on fond by 2010, hardly any p r n ~ ~ has~ hcen madc touarii meetrng c s thts cox-rtnlttmcnt. 'Shls lack of atlent1or.t tu furcst resotwe conservation, beyond cnvlrunnlcnc cons~derafion,resufts 111 &)regoneeconornlc opisortttnic~esboth at natrcritnl and local let.eI. I,~kr111 other councnes tn the regron, the potential far scaling-up conscrvatron srtitrati\cs tnvoft tng corrzmtlnltrcs and Iinking them to cconnnllc devclopmmt (for csarrtplc, through ecotour~sm) sl~ouldbe cxplorcd nlore proacti~efy. 135. f3rinriry actrnns supporting agrlcuttural and rural development thro~tghstructural change In tt.tt forestry sector are surnmarizrd in Box 111.7, Box Ilt.7. Priority actions: Preparingfor structural changes In the forest sector C.3 Marine resources management: strengthening local and international pa~nerships 136. Recetit ttork (for esan~plc,311ES, 2006) has confimlcd prcvlous findings rcgnrdlng thc suhstantlal corltriht~cronOF marrnr resources to rural ltr.clihoods pctrtrcularly rn tltc outer ~slarids. JYrth regard ro fishcnes. rhc sector can be di.trided In tti'o categories: (a) an offshare sector targctrng thc cxptuilattort of tuna resources fbr processing at thc facaX fbctory (Solrat Fishing and Proccssrng) in Naro, fjttestt:rnI+rtstvrnce, and the expart market: and (h) an tnshart: (cna~tal)fisl~or-y .tcurked by commrrcjal and subsrstcnoc. fisfiernwt and ivotttcn, 137. Tlze jtrl~#"fairr curttrib.rrrr^oxt of ?tterr^trrre,t.oun;cu.sto r'ircs rural ecaxrotny lrns bcea nverlooked. I he potential ccrntribtttion of the "E-iishcnessector, in partlcttlar tuna resources, to rt~ral gmuth t ~ o sicicnrificd in the late 1960s and fed to c1-x establrshmcnt of' Solomon 'I'aiyo, lard.,in 1973, ,4 base firr rho national tuna industry, Solamon Taiyu, Ltd., cxiabled the cotintry to benefit fkom ~ t ftsherres resources thrsu&~en~ptoy~mcntgeneration, contribution to government rescnues. s attd fareign exchange earnings. fIowe\~er,the dcvelczpmcnr of the sector has iftct tt,tth cl~aXla~gcs simjlar to other sectors: dxfficulties tsi.lth tht cnforccmenr of the legal and regulatory fran~c!\~orf;. tinder-resourcud Mrntstry oS J7isheric-s.a cixfficult cnvxronmcrtt for private scctor Investment, and socraI and en\"ircsnmentalissues that have been tdentifed hut not addressed. Overall, the potcntxal of'the scctor to contnbutc to the local and r~atronaleconomy has not been fully reafl~ed. t 319. Tlte devrlr,prtrertt uf ti^ rratiorral &Ira indnsiry was .ser*ertdj?ajyeettd tiitring the Ji.rtsr'ons. 'The Solomon islands excltlstve cconon2tc zone covers 1.3 nlif lion square kilometers. 'i'he recommerldcd total allouable catch of nruund X 30,000 ntetnc torts was never reachcd. except t t ~1998. At that time, tuna exports represenfed 330 percent czf total exports value. Before rhe 'I'erisions, In 1999 the Solomon Islands had the largest. domesttc-based runa lndt~srryof all the l%cifk idand countr~cs,both rrt terms of vofurnc artd valuc. Osor 8 percent of total fbrt~~al eil~ployn?entwas rn direct tuna fishing and proecsstng. Solornun Taiyo ernpltryed 3,000 people rnctuding about 800 wornen in its cannery and tts base in Noro generated stgnlftcant spin-czff ~ L L S ~ ~ ~ S S C X in cortsumcr retail, tvholesalc, transport, and hospitality services. Sololnon 'Talyo alonc gcneratcd around SIS'1Q mllf ion rn Ciovernnzent revenues in 1 N 9 . 'I'lle scctor \\as then deeply affected during the 'I'cns~orts,Sctlorrtor~Tatyo and the other domcsrxe company. Solgreen, closed down their opcratlons. 'S'he sluntp itas con~prsttndedby a sharp fall in narld cuna I'trrces. X 3'1. Turra industry ~ehrrr'ldif~g domestlc industry started reburlding rn 200f 'The after ~vorld cuna prtccs recotcrud, hus\cver lltc tndusrry ftas not returned to its late 15390s levels. Soltai Fistting and Processing has been struggling for financrat sxability." In 2004, fishortus cxports tcrraled SE$132 m~llionand represented approslmstely 18 pcrccnt of total export valuc due In part to rising tsorld tut~aprices, In 2005, less than 30 fisher), htisincsscs \-C'ereactually oper;tttt?& 14t3. An ittcrertserl corrtributiu~tof ~flkltoreflslieriss to tks rural eccrncrrrty will reyriire sirstuhcrd ejjiwtii over the lorrg tertrr. Tttc future de\relopmenr of rhc rndustry tvi11 depend to a great extent the capaclty to improtbethe busil~esscnvlronnlcnt for prlvafc scctor titvestrncrtts- - trlfrastrticture developtncnt, transparency, and ef'ficiency of administrative processes and nzort. gerrcrafly consistent policies to burtd tnvesturs' confidence, tftc avaxlabslity of skillcd hunlarl rc'saur~es,land av;ti1abiltty for shore bases, and a fasatton structure conducive to rn\rcstmcnt. 'f'hc current Easatlon system !?astnhrblted fisliencs dcvclopmcnt. Infrcqtlcnr and expensit e fkcighr sv1I1 rcn'lain a constraint. f 4 1. Strrttegic dircctiorrsfor nafr'crrtultrirtu itrdustiy, A debated issue has been that of strstcg~c ciircttxons for the develapn~cntof tltc rtatiortaf tuna irtdusty, iftpnrtxcular the strengthening of' esistfrlgbases (at Sioro artd Tufagi) to enable then? to became nzore cornpetttibe ah opposed to the promotion of the ~ndtistrydeve1opn7ent in other provxnces [based on equity concerns). From an cconomlc pcrspecti\.c, because of economies crf scale fix freight and infrastructure costs, it ~vould hc a marc viable option to consolicfate existing show bases. A second ~ssucfor the fiittsre of' thc nattonal tuna industry is that of tho financia1 viability of Soltat. I%isatritation of some kind (sale or leasing to a prrvatc sector opcratctr) sccnls ttte only \Yay $0 address the need for capital investment and overall rrtanagcment: hoive\er, this wotifd be conscraincd by corifftctrriy donor pultcios. A number af social issues hasc been associated with the development of the tuna rndustry. Dontcstlc tuna lndustrres, as ttell as Sc\reiba flcct trans-shippxng in fIor.t~ar~t,have 24 Sctltal F~sheriesaltd t3rnccss~ngis rf~eStare-ctwrted entcrp-llscctcafed after fhc dcparcrrrc of tkt Japarlt'sc partner x~tvalvcd111Solntr~nirTaiya. gcneratcd social problems. WhlIe these havc bccn identriied and opttons to address them have been proposed, they remain to be tntcgrarcd in local det'elopmertt plans. 142. The 1998 Fislrtrrit.~Acf prnr*id~?f the legal fkome~~n~ktireJi.skeri&ssector, The Act for has becn under re\.te\tr since 2t104 and needs updating, 'l'he 1:rshcries Act was followed In 2000 by the ratttication of a Iuna Management and f3cvelcrprrtcnt Plan. Most of the Plan and rcs recon~n~endatlan\Itowcscr have not n?o\cd for\vard. Recon2mcndilttons of 2004 review of' the Tuna 14anagerrzcnt and I>evelupmcnt Plan rcnlarn to be rrrtplcmcntcd. In partlcufar, the rev~ctv included the need fitz hamonization tvrth Western and Central I>acific i"s1icrres C'ammrssron's obligatrorts and community manltgement plans for coastal, rccf, and lagoon areas u rtli enfbrceabfc rcgulatlons to enahfe cor73muntty contrtsl. 'f'he rc-\icw also emphasrzcd better management of'the tuna industry. both hr resource conservation and industry devcloprncrtr. 143. Gsr~.rnrr~tcet l r d irr.sfit;ctioffsl iss.tf~.s. Qurte simitar to the management of forest resources, fishencs governance has suffered fiom a lack of rcsources, a lack of csnsultatrcrrt rrt dcctston rnakirrg. and Issues of transparency and accountabtlrty. A 2003 audrt af the Mrnistry of Fisheries revealeci stgnrficant govenmncc tssues. SrmiIar to ather mrntstrrcs in\olt.ed tn natural resources management, the kfinisrry of Frsheries has been under-resourced and ut~dcr-staffed, tvhic1.t has affected tts capacity to conduct core ftinctisns. Monitortng, enforcement, and survctllance activities t.rnt..c continued at a base tcsel due to lack of resources, Key skttXs In rcstrtirce management, pubtrc policy, marine resources econortircs, and brrsincss managentent hake becn scarce. Pulxttcaf inrerfermcc has afitctcd the management of the sector, jshlle hca.i.y depcndencq on aid has somurimes interfered t.t.itf.tdccts~onmaktng ('l'his has been the case, for examplc, rvrth dectstons attour the corr.tmcrclaf disecrlons of Snltai), Morc generally, the role that the Cjot ernment u.111 play rn the future renlains to be clarified. Impmvinp got ernance oC the fisheries sector ~vtllbc rt kcy to generatmg more v,ealth Cram the sector while meeting its objccli\es of sustainable resource nlanagcntent. 144. Itt#pmxli#fgrcrtfmut?sfkofrr rXre sednr. Solomon Islands' drslant tvatcr access fees as a percmnlagc of the market value of the tcstal catch haic bccn among the lonest in the repiczn. Accordrng to Forum I-'isfierres Agency and the h41nrstrytsf f~isheries.thcrc ivould he scope fbr tmpros.ed rctrcnucsfrom better negotiations - altcnxiti\ely the n~odalttiesofthe licensing systcn? could be re\ ietvcd to rdcrttrfy crptions for improvement. Perf and trans-shxpping scrvices havc bccn xdct~trf'tcdas another area for potcntral rcvcrtuc irtcrcase. Incrcastny the amount of prvccssmg in country has bccn proposed by Cioternnzcnt as another avcnuc for increased econcsnzrc benefits. IToticbcr. thrs drrecrtnn would mean addressing t l x constrarrtts that currently detcr pnrvacesector investment, It ti*ouldalso nlcan deveIoping hod sattty and hygrene standards fisr cspcrrt t~tarkers,whrch has pmtrd challenging and t-\tuuld require more investments: and tncreasing the ccrpacrty of tho Health Department to assess compliance u~ t himporting countries rcqulrcmcnts, I 45. ConslnJj~.skerit.snrrd rttarixt~rt.suurcrts rrratragcrrtrerrr. 'The legal jurisdrction for coastal areas lay .t\irh the pro\"inciat governments. it Iottcser, lack uf resources has cunstsatned their capactry to carry out those fttnctions nhife the provrsions of the legal framottork f I:sshcrics Act) wrth regard to con3munrty managentent of coastal resources are betng revieued. White no systematic survey of coastal marine resources fias been conducted, there are co~sisrentanecdotal reports that har\.csring may be excessive and may need to be decreased. ii4arinc resources are an important source of' protern for Sulurnun Islanders, as isell as a source CJE income. Populatron grotvth I~asincreased the pressure on coastal resources. 1,ocal fishers, far example, indicate that it is harder to catch tgns than in the past and tltat they ]take to go furtfier of'fshorc. Bccausc of' rts ~n~plim"fons rtrral 1ivelihc.tcrds. rmpro$ing the management of ctrastal marme resources 1s fix cunsrdewd to bc ss, prturity xn the short to medrum term. 146. Small-scale fishers have difficulty being viable and competing wit11 the industrial sector, Small-scale, srtiage-bascrf fisherxcs arc often not cortducted as a full-timc buslncss, 'I'hcsc srnall businesses have dtfticultres markecrng catches in a cost-effectlvc nlttnner and dcalrny t ~ i t h safety issues ltfrth tt'tc~rsmall fisltrng vessels, 'l'l~ese issues have tlrniccd the dcvclnpmont of' this sub-sector. Solomon Islands also have a htsrcrry of fishery centers in nlrol areas bang estabttshed under aid-fjnanced projects, but xvith n pattorn of fklurc at sustalrtablltty beyond tfte prtqcct f~indrng, Options fi3r the oomn~erciafr~atronand prrvarizatron of those centers arc being discussed: hoivevcr it is likely chat nwst lire not \table. 147. Regional cuopsmtiorr i .gi:r'~ccrt ~ Itiglt pviuriiy /jilttrafintfaiJjs/teri~.s de~te/oplt#cctlfpXarrs arrri pulkie.~. Strengthened regional ccroperatinn, for example wrth Kir~bariand the Marshall FsXat~ds, In brcn of the seasonal eornplcn~crttoritytr't tuna fishing, would provxdc avcrtucs Ibr itt~prstecf rcsourccs management and industry devef crpment. 148. Priorlry actions suppot-fingayricuttrrral and rural developn~cntthrough better ntanagorntnt of the fishcrtcs resources arc summnr~ztdirt Box 111.8. It'. I~IPI,E%IKSTIUC;THE ARDS -- -** , , , , -* Frorit ,S'ri.trrt>g~.,*ir.tiorr frt 1 LYhile the retomrr'tcnciattons and priar~tyitctlcjrts tclonclfjed in the AltDS uould apply across p~ovirtccs,lhctr tmplemcntatton in each provrnce $1 auld need to he taiforect to the specific situation, chalfengcs. and opportunities acrcrss prot'lnccs (and tslands). 'This section distusscs some key curtsiderittrcrfts in lmplemcntrng the ARDS tn the provinces. 'i'hts 1s fblfo\sed by a disci~ssiottof a~ailablcresatitces to tmplcment the tZKI3S In the short to medium term, and proposals to monitor actual progess against stated ot3jecrives. A, Tailoringimplementittion in tfie cflfferertt provinces 150. 'I'hc tnsights of the corrsuftations, field \.tstts, and lxrerature revicnf gives dirccrrun for regional consldcratians 1n ~niplet~~cnfingthe ARIIS. O.r.crall, the Solumnt~Islands have a snlall population and a relattvoly large natural resource basu 'iltth consrderabfe potertttal for dct*i.elopmctnt. Srnce the prurrlnctshave different resource endotitttcnts and are at dliqferentstages of cJcvc'loptnent. appllcatrcrn of the general strategy wtll need to take mto account the partrcular crrc~trmsfanccsof each pruvxnce. ?;ct.crthefess, the prtrpcrscd stratcgy of direct comm~tr?ity xn~olvcmentin plannrng and imptcmentar~on,and support rcllocal gotemment and national ~nstttutit'msin\olscd rn agnculrure and ref aced Ii~clihoods(lishing, firrcst~y,processing) rcmairts s.aIiJ. i\ctiv~tiesto impten~cntthe strategy tvo~ildneed to b t dcsigrtcd to fit the absorptite capacity and other characteristics of each tstgct provlncc, r2n important detem2inant of provrncral det elspmc'rtt ssrlt also be the ability of the prot rnccs in the rncdluir~to long term to raise their own rcytnuc through non-distortionary taxes, "ices. and Ilcenscs. Anncr, i pmu\.'idcsc'xctmplcs of priorrttcs 1rjcntt"f'icdby rural Solonlon Islanders in dtftcrcrtt provlnccs, Some indrstidual prot rttccs and arcas 3ro d~sct~ssedhclrrtv, 151. SlaXaita Province has a relarr\.efy large pcrpulatlctr2, a functioning focal gu.ivemment,a prnate sector presence, and good potcrttrat for econamrc growth based on imprasing at~rf dtrersifytng cxtsflng primary indtistrtcs, 'f'ht pror.xncta1 authorities prepared a hraad development ttsxtrrt ilocumcrtt (SeptcTibcr 2006) v,.lth particlpacion s f comnlunlttcs. If resources and technical assistance arc made as*aiflihlcon a continuing basis and t\ irhrn a hcuscd strategy, tl7ert are gortd prospects for growth %*ithey~t~ty.For Malatta, the maxn requirement is consistency in approact? wxtd resource wvarlabtl~ty. 152. Renntll and Bcliuna Province, Temotu Pra~incr,and the rrcf Islands ttave fkn attnhutes that can be tised as a foundattort fbr clcvclopment. 'Thotr popuIarlons are small. '1"herr nartsraI rcsotsrccs arc hw. 'i'enmtu and the reef islands ha1.c lxttle Iax~d-basedresources, and c~ff- shore fishing is not an optloti for smallholders. Scasoftal malnutrition rs a yrottirrg problem, RenneII and Bctllona I'rosirnce, although srttalf, dtrcs ha-, c some agrtcuttural ~~otential:but it oppcsrs that most of' the pol~ulatlonts elsewhere (1,ocallg obtained infcsmat~onin mid-2006, indicates that of the registered populattort some 2,OQO arc actually resrdlng In the province uhtle 7,0011 are elser.i.here.) For both prorflnces, agriculturtl and rclatcd devcloprrtcnt expcctatlorts arc modtsr, at~c! grot\ttt trt aggrcgatc xncomc n131 have to depend on renxctances and public cspcridtturc frcr1m nattonal budgets, kxpectatlons of %hatcart he achict ed tvith local governments tn these prcrtvtnccstt.133 also he modest. 153. Wrthln prtrsrnces thcrc are also large dtfferonccs ra be accommodated. Northern C;txaifacannl Pravtuce has gocsd a~reulturalpotentla]. partrc~tlarfy for expanston of cocoa, and good access to Iloniara markets. 'The !+'eather Coast ofthe isIand docs not. Rttral der*elopntcnt in Guadacanal is relafr\cly strarght forward wrttl the need for consistent: resource asailabitrty and approacft withtn the recommended strategy of' providing an enabling cit\ironnzent (~nainly infi.astructttre), For the Wcarhcr Cost, there 1s lrttlc chat can hc done tcr change some of thc basic constraints on devctopnzent, such as excess rainfall and topography. Eiotvever, slncc this regitln ttrts the largest concentration of poor pet~plctn the Solomon Islands, pubtic expcttditurc u111 need to cor?centrate more directly ott pro\is~ortof basic services and publrc goods to improtc the quality of life and on basic extension in stlbsistcnce production. 153. Central Pravirrce has prosen agricultural and natural restlurccs pcstential. A standard approaclt to rural de~clop~zentis adequate provided the erltical land tenure issues are rcsofscd. 'The strike at RIfrYESI, (Russell Island iYantatiot7sf that began June 2004 over a labor disprxre ISat the itcart of the matter a continuatrort. of the dispute over rights to land that prccrpitated the prevrous conflrct over 1ogglr.tg. 'The standoff 1s complex: the rstanagcr 1s a nlinority ibreign shttrchuldcr and majority ownership rs t~iththe wcrrkcrs, the custamary landoivners, and tftc Pros trteraf and National Governments. Resoltition of' the strike is not likely to end the dccadcs- long eonflrct since t.e.trert3ros. sold rl-rc unprtri~tablcestate to the Gotcrttmt'ilt. A d~f'fcret~tfonm of land use managen2ent is reqtlrred to make tl~csrtttarion tenable and profitable, 1f1e crbsolete plantation ntodcl may be untvorkablc uttdcr any form of corporate or con~rftut~ity~t~~1iersf7ip. Xionever, there are options to give rnciigenous Ktlsscll islanders nlore direct involvcmenr in the usc OF land that they regard as thctrs by ctlstot~~arynghr. There arc t-nany cxamplcs of t i o ~ productrun and productivity rn agricttltttre hate soared as a rcqult of change Frcrn? ctsrpc3ratc (or comr~~urtc)production to household tenure. C'ocanur oil prices on world markers hate more than doubled since lXIl>Eldemerged t?om bankruptcy (in 200l), 'The strtkc not only rcprescr~tslost Inconic and jobs: but, as infrastructure deteriorates, it is a major dfscouragement to potential insestors and an tn~pcdlmcntto provincial det"elopn7ent. f 5 5 . Ct~oiseuland Isabel Pravlnccs are ~~~outitainrsus\sitti only small pockets of" larld at arlable for agricultural expansion. Both are Facing econonzic problems with degrdation of thcir nat~tralresource base. Soil krtrlity 1s dccfrt~tngurtdcr the refcnttcss prcssurc ctf sltttrter crop rotutrons. Compounding the problenz, the land ts not suitablc for Famlng due to ~ tsfope and fi.om s cinstthtainablc loggrng. '3he dcvclopmcnt prrortty in both provinces 13 to srrcngthett prot'lt~cral govcmn~enr'sability to regulate and control foggrttp. Comrllunity corisultattons conlirnt tllrrr the cupccted ttnprovemcrlts irt the yt~nliryof village life from investment of royalties have ntst occurred. 'This has led to an obi ious dtstrust of' govcrnmcrtt. I%r duvelopmcrit ~nit~atites to succccd, pcopIe need to hat'e ccrnfidcnce in the partnerttlg agencies and cornrtlun~ttch. Fur this reason, NGOs and church groups arc iftore elti?crir.e than govcrflmenr agcnctes and tviE1 play a tnajor part in the AKEIS application, 156. tZppllcatiort of the strategy rn 3lakira Pruvincc does not appear to present any particular d~fl'iculty. it has an abundance of cinder-utrll~ecfnatural rcsotaccs. 'I'he dc\clol.imet~tobjectitc t ~ i l be to restore rural rtctitrty to pscsrous levels and beyond. Inlkasttlxcturc on thc island has l been alltrwed to deterrorate and wtll be expensitbeto rcstc'rrc bur rs \i?arrartted by t l et'onon~ic ~ potcntraf. In particular, rcburldrng the proven potential of' the cattle industry o f i r s scope fbr grotvth in mcorne, The faclltties ac Star i Iarbstir ccsuld bu reopened, and the C'f:MA otsconut 031 pressrng plant and cquipn~sntsotd tctthe prx't'att' sector at a cf canng price to rcrn~tgoratethe industry, 157. 'The economrc potentid of \Vestern Province prcscrits a fhvorablc scrtlllg firr appl~cat~on of a cons~stcrtrand resourced development strategy. It counts among tts assets ct large population, generally fertife soiis, rich niarinc, Furcstsy, and potential fbr tourisn~devcfopmcrrt. 'The pnvart' sector, XGOs, atxi church-based agencies nse iveli represented. tJnFcrrtunatcly, as clseu /?ere, managenlent of loggtng has degmdcd the resottrue base, and Ecft communities tiorse off than befare. Proi+inc~alservtccs arc poor, and contidcnce in goipernn?etltlo~v,As tvttft MaXaita, there rs lrttle reasonable prospect of' large foreign or donxstic trtvestnzent in agrictilture or relatcd enterprise that tvill pro! tde a boast to fkc rurnl economy. E)evefopn.tcrtt wrll only come throtigh apptrcac~onof a cuns~stentand well-rcsourccd strategy that suppons and in\olt..cs the many sn~allholders,tradrrs, 'btts~nesses,and ather enrrtrcs of the Solotnon Islat~dscomn1ttnitg. 158, A .strate,gr cnnsistc?rtr ntrd tnihred tcr local treeds. 'I'he proposed approach, based r t t ~ development planning at the loenl level and cotsrdinatcd ritrttug1-1prrs~tnctalgovernment, rs meant to ensure that dcvelopmenr plans are conststent across sectors and tailored to locaI needs. rZlthntigh reron2met1ded in tho strategy, the AKIJS prcparatior~dtd rtc.tt allow for specific local- lesel ~~evelopmentplans. It 1s expected that tt~cfocal-level plans ivill be an immediate nest step rn the ItRIIS implen~cr.ttatron. Ct'herc plans are already 1r.t progress or asaifablc, implementation errt~ldstart by the pnontt;.atton of yearly Investment plans on the basis of atailable resources. B.Matching resources and programs 1553. Strbstantlal resotrrces are 11kclyto bc a~ntlabfoin the short to medrum term to ~mplcmcnr the core priontrcs idontrfitd in the ARUS. Several inttiatt\.es arc already unden+.ay, addrcsslrtg some prtonttcs; and other rntervcntions are under preparation. l'abfe IV.1 presents a broad esttmare ~ 7 f Ihc. resource envelop likely to he avaflable up to 2012 to implement the A R M rccommendatttsns. At the time of the ARDS preparatjon, more accurate data fun a ycarfy bnsls) ?\as nut rcadtly ttvatlable. Most f~rndrngfor r ~ ~ rdcvelopmcnt rs pro~~idedby donors (66 percent a l in 2006). hence the outlook for funding rests f.tea~'ilyoti the prcrspccts far donor support, Ketarnlng the recent increase in Government f~indtngfor recurrent casts tvrll also be important to match increased cnpitaf ini+estrrmt, f2rrblicfixlance mnnagcmerrt 60 rn~lliur> AL3t3, RAMSl, SXC; ccotlnnltc rcti7rrns -, F-ctcal go\ errlance sert.ice 150m131ion Et;, RAMSI, SIC;,1:Sf)P. !Yorld Rani,, tielit.erj Kurd tractsport txlfrastnrct~trc I 250 miliion / K % m D . SIC; Rtrrnl t;t~cryyu.tg& I 35 nxllion ! SIG, IZ'orld Dank, Land adn.trnt%rratrctn 40 j-irlltian ArxsAIK>,SIC; , ---*-- r\ttt,rrculttirc suppotr sen rccs I FX'. XZi21D. ROC, SIG, World Frtrestry 100 rnrtltorr AttsAID, Elf ., SIC; Fishcrtcs 3";nltton E\", JICA, SZAID, SlG EnxVirotlnlenrcot~servrtrian Mrcrcr-) Esffnrntudtotal / 1,6135 tniifinrt'" " Esttnlaicd total ~scqirttalcnt to dppro~rrudtcf!,LSS10.5 nltllton ottr,Ifitc-ycdr pcr~od \otc For full nmcs of ~nurccsr&r to Ir n~tti i~tzdt tu.\ hhwt rtztint~\ IErQ. As dtscusscd in prcvlous sectlans, medium- to long-term resources are marc dlff'icult to identrfy. fn gcncml, a lower Irvel of'external a d can be cspcctcd. ivh.11~crnglirtsrs In government tvould s h ~ fon i strengthening its fiscal position, incltiding that CIF local governments. The matrix ~ r .Annex A summarizes the priarity tntervcntions ldcntifjcd rrt the ARDS and nlaps tf-teni tn more t detatl against more likely avatlable resources. C. Monitoring and evafualriatl 16X. Past cspcrlcrtcc \sttt.t dcvclupmcilt plans and strarcgxs in the Solomon Islands pomc to the tnlportartce ol' cstabltst.tlng hencht~~nrksand kty lndtcators of progress, simple and tas~ly nzeasurable. These tvatrld also be mzporrant as part of Governments cf'fans to tmprtric the cfficlcncy of puhllc expcttd~rtirc,pubflc inibrn~atiunand transparency, and pol~c~csand strategic!, that arc result oriented. I 02. Key ~ndicatorsof progress tvith the imp1emcncacron of the ARDS arc prcrposed trt *PabXt IV.2. 'I'ltcy have been kcpt slmptc and tn small nutnber for easy monitoring whrlt. allotsing a rapid assessment of progress lrtkey pr-tonty arras rdcnttiied rn the AKIIS. ft 1s proposed that ixogress could be reviewed annualty at the ~nitiatiie of the h'f~n~stryof Dcvelopnlcnr Pla~~ftnrnp and Aid Coordxrtatiun. ftttprtticd lots1 govcrnartte and seri rce * Incrensc itr rcsnurccs for nxraI d cclopmcnt, including by ~ deltterq' scctor aird bj pro\ rilcc (acruat budgets) r lncrensc itx resources ofpro~incxalgott.rixmctxls(butfyei nncJ core staffkig) * Sumber sfprosix-tces vlth anrtual cfetelopmenl plan iiindcd by btidgct * httnlhcr of trrllngcs tvith ftindctt Iillage dcvelopmmixt plan r Access to key irrfrastruclurc and seri mces by prctvlncc: [~rurnbet.of households \\it31 cosy acccss to markets, reads, clinics, sct>sols,energy, t\ atcr suppIy and sai?ttdLtt)rl. telecuxnn~untcat~otIf * Share sf'dottor rcsourcel; t h r o u $ & ~ ~ ~ $ ~ j j - ~ j 2 % ~ r n s -- *- ----* ---*--- MBI'C iriciusi\e grstgth * Rural I I I C ~ ~ T ~ C S fbascIrr~~--;?OffGf~nustholdssurvey) 1 * Cost uftt'Ieccrnzrtzun1~8t1ot1~thc provinces in * No bank Ivans for rural entrepreneurs and value * No. uf busti~esscsrcgtstcrcd by pruvincc Susrstrnablcrxarurnf resources 1 * Cnastaf areas under local ~~xanageri~cntplans tt~ar~dgc~ e n t ~ * Log exprtrt tx~oxxttoringtpesccx~~target) I * 'hrta catch mon~torlng(percenttarget) -***- *****- *w ANNEXES B - n E v ; 3 & $ 8 2 g ,%rnE s p 8 y u , "I' C -2"" ' 2 B o a"%'% GlJs: 33s ,pf i m 4e;..~$ 8s022 C a- g & * " E m _ 2 s , c 5 2$3; z,.; 6 S " : , f$%; y -5 % S d g , " $ 3 2s E . . ; ! c : r XC 3 w 5 3*r 82 -c?z*, 0 9 u "hz g 3 c a 9 f! P* Q Q g g % " r : . S Z 8) g k 3 3 % -" = c % 3k +.- Sa 2 g It: .; k g 3 C $! p C O " "" + . " $ $ Y ' % g J 3-L- d W $ , G , 3 2 $ 2 % : $3" 2 C *I- 'Y ..+3 & SZi3.-. . F : - F i % + $ -g .: 3 Z4IJ g q - 9 p 2 , - % f & F C l m g , % E g g 2 .&j - - C : % S G S 4 gc ~ &Ed*% +3 d a ~ w e d ~ e +9 9. "o q ~3 3 w c - ~ g $ t ; I : "c &,, It: a ~ ? $ i % M -?@,%r2 s ~ a 5 g g 2 g . c - It: E V " 3 i - , f k8" *r* "QG u d d X 2 " Rrrrnl gror.rltk: 7irte slrorl- txl rtxl"d$fr^lntr-tartfi prxlspech C'oconut and copra C'oc~rnutprctducts continttc to be r ~tltndaniental rrnportancc to the Solomon f Islands rural ectsnomy. O ~ c the past I5 years, the sector has mcrtctl from parasrarai monspc~ty s rnarkeetr?g anrtr~pemcrlts(through CISMA) to deregulated prrvatc sector rnarkcting, t2'rth rcrurns for grostrcrssmall, the future of the sector ivill to a great extent depend oti opportunities for better returns. In the near frrture, it IS poss~bleto see expanded cocctnut production rargecrng four rnaln markets: ctsconttts lbr food, copra for cxpsx-r production for tdrble and non-edihIe orls for dcmcsrlc and expan markcts and h r the production of blo-fuels and drrect substitutes fbs diesel as a transport fuel: there rs also a small but g a n tng mrket for timber products. Therefore, rcaliwrtg the growth potentral of the coconut industry tsifl mostty depend upon improvements in marketitig and ~ntcr-lstandshipping, as tsofl as support for prrvate sector tnfPestmentsin processing and marketing flitr ~tcssproducts tr'lfh 8potential for market devclcrp~~lent. Cocoa 'I'herc are good prospects for further de\"elopmentof cocoa. based on concerted rnitrat~scs bullding on the involtetncrtt of farmers, chc private sector and IIAi,. Cocoa 1s grown In all prr.tvincesexcept RenricEl and BeIlona and ttlc cocoa industry is aln~ostentirely smalfholder based. Production is recctscnnp from the collapse of t~tarketlng systems d~trrngthe Tensions. 'f'hr prospects tbr conrrnucd strong cocoa prices to 2010 arc good (lnrematlanal Cocoa and C'ofic Organrratton). rZlthough yields are lower than In other countries, snzallholders should receive a relacii+clygood return for their labor (Warner, MeGregor, Wore, and IkIun~o,2C)OCj), t";ttxle there appmrs to he 11ttleprcsspccts to add value through the manufacture of cocoa products, there rs scr3pe "rirrincreased grcstver rettirns by inlproving qualtty {tshich has detcrioratcdj and produccrvity {nhlch is generally lotrcr than t r ~crther countries in t11e Pacific wg~onfrhmugh the adopcron of tcchnrrlcrg~csalready available iiithe t-cgion. Foud and fresh fruit. Recent issrkl irtdlcatcs that the cantributio~~of hod crops and f'rutt to the cconrsrny 11ns gettcrally heen overtookccl. fl;'ttt.t Increasing pressure on land in many areas, espxndirag food crops production rviIl be a challenge rvhictr, xf not addressed, might result in increasing {budimports. In thc short- to medium-tcrrrl, due to the country's fruit fly status. the best. prospects for fitod and fresh kult tstfl be in doniestrc nurkct?;,parrrcufsrlgj in f itrxtrara, htst also In smallcr urban arcas, In some rural 1ocatio~7sand tn tourism sites. The tsadittonaf staples, pmictllarly rcssc crops irrcludrrtg cassava, siveet pcstaru, taro and yatti, f-tctvc a great market pcttcnlial, as do ~"iflseasanpineapples, exotic litill,bulb onxofts and temperate vegetables. Sttpport to xncreascd 172arkerirtgand trade af food and fresh Curt thvrcfitrc has a strongp ~ l ~ ~ f ttot ~ t f prodtrcc early results both in terms ofrural growth and food sceurity Oil Pnlrn. 'The expanston of prcrduecion in (;uarinlcnnal ti111 be a cntical drir cr of' groivth. Prospects kxr ~ntcmatlonaldemand and prices remain good in chc mcdrtim term. In the short- term. pursurt of arrangements by Guadalcanal Plantations Palm 011, I-$4.. under a nueleiis estate model to bring smatlholders on customary land into the cbrl palm lncl~~stryrepresents the mqor prospect "ior the ~ndusrry.In tcrnls of pttbl~cInvestments, there n~aybc scope lo Pzc~lrtatc smafll~olderparticipation, in sssaciattun u it11 tlit rcyutred road ~nfiastructusedct.elopment ' hustIlD, 2fI[iOb;Glbsor~,Jansen. and Fatrktr, 2QQli.FIXES, 2006 Other nun-farm income gctrerntirlg nctivitics. 'I'he potential future cos~~rrbut~rr~iof*those activities to the rural cconurny ts Xrkcly to grow nlth o\crall agr~cutturaland private sccttrr investment in rural areas. A.rfaitablc surtcys rndrcatc that agricultural waders and -\11lagetradc stores currently dom~nateritosc actxvltles. Further dcvclopmcs~tof the cocoa and cucuuut Industries, buifdlng an in~prot~cmentsIn markecrng channels and t~cssmarket desetoprr~cnt. The sale of the unused C'X5M.4 assets to the pnvnto sector tvauld contribute to revita!izing thc snzalIf3oldcr coconut rndustry. The incraducrlon ~"f'ertificatlonschcr?/tcstsoufd also open access .la netv, remuneratxLremarkets. Food and fresh fruit. 'S'hese have been dri~rngagrtcuttural grob~thand cotild eonttnuc to makc a stlbscantial concriburtun proh~tdcdadcquntc stspporc Is pror~idedto address cmergIng issues fphytcr- sanitary, sod fcrcrlity, etc), In the longer ttrnl, expcrrctlcc inother Pacific cout~triestndicrttos that espctt-ls to high-L alue markets arc achiet able once qualtt), logistical 2nd i7hyto-sanitary cot~straintshave been rcrituved. l,ivcstoclr dcveiopment. 'I'he Sotomun Isfands rs a substantial tlnportcr of livestcrck products anct domeslic productloft could grow. * I".he demand for litcstock products is expccttd to rrse uith trlconlcs and tv311 result in fitrther rmpurts, unless the constraints nffcctlitg ttw recovery of thc scctor are addressed. Intensification of l~cestockpruductxoa and xntruductiun of ttntrnals n tth t'aster growth characteristics wilI depend on relrablc supplies of inputs, rncl~tdrngYeeds and veterinary prcrducrs. as %ell as tkc a~atlabilllyof vcterlnaty services and appropriate ad\ tsnry scrislccs (cxtensic.tn services, r-iith a Seti excepttons. have also fttouscd on high input productiort systcms and more artcrttion to lo~*er-castfeed based on local r?zaceriafs is r.terrfcdf. iZs ss it11 fttt?cr agnctiltural actlvltrcs, xmprovcmeitt rrt transpart ~nf'rastrucrtsreis needed to cli~ahlecnferprtses rt:, huppty these services to smaflhofdcrs. Other (minor) cash cmps. 'There rs a potential for the dt\.cloprncitt uf htgh-vnluc tliohc pra~iuc~s (tbr example, 113diger~ousnuts): hat.vever, to be sustainable, thls would haye to bc de~elopedand realired by the private sector rsthcr than wtth the sclecti~"eassistance of Govcn~mclntand donors. Clii palm, Rcgc~rdtrtgthe dct"clopn2cnt c~for1 palm rr? neti*tocstios~s,thrcc key considorrttrorts tsrff be: (1) suitable pnsate sector. ift.ipcsiors;(11)ar'otding pfanting oil palm In ut~suitahlclocations, i.c. \stterc tho local conlmunltp rs able and tt tllu~gto makc it available fi>ror1 plrn pr13di~ctt~117and tvhcre there 1s an adequate available .tvorkforce, preferably t\ ltliout undue ~tt-mlgrrttron-- t\lt~ch cart create social problems rr? the fortgcr terrf-t: and (ill) fair and workable schemes for thc mobrlt~ation of customaty land and cstablrshnlent of out-groucr schcn?es. iVherc Cf?c,ic corrdxtions cannot be secured, there cvould be a high rlsk ot'subseqt~entsocial pressures. 0tverall, those dctvfopmentstsrff take time and results could only take place in the rnedrum- to long-terrtt. Tourism, Tourism represented 3 pereerft of GDP xn 2002. A s031d basis has already been cstahfrshed in SOIII~areas, for csampIe in Western pros*incc,and could bc cortsolidattd. 'f'our~srtt dcvclopmcrrt svr)uld protide local outputs fur rural producers: encourage tnhsrructurc developmenr; create lucat employr~cnt:and encourage the ctsnservacisn of"natural and culturctf assets. Tourism development will require: fr) rrftprovtng image in target markets: (i3) transport serLricesand lnfrastructurc tt-rlprovctncnt, including in rncemaclonal air Irriks (reductrun ul' thclr costs) and tn thc reliability of inter-~slartds81s scrtvxccsand thelr costs: ( 1 ~ )awareness of the rclatlanship beetyeen the en\ rronment and successfiif courrsm dettXopriiet~r:and f 1s) upgradcd skrlls in the scctor. E'areslry Xlstinsalcs concur Chat loggxng of nart~ralfisrcsts \till, rf' current harvcsttng Iuvels conrxnuc. exhaust con~mcrcratlyviable stands by around 2012, Attempts to promote more stisiainablc firrcst ntanagemenr practices have met IittIe success, as dcr.rturrsrroted rs~ththe Ftiilure ttr pass the 20134 Forestry 13111, The long-term nlarket prospects for export of timber remarn strong t i ~ t hprtrjecrcd xncrcases rn the real prices of logs and satvn timber. 'I'lic future contribution of thc f'orcstr) sector tcj rural growth tvill depend on: (a) nhctttcr marc sustainablc practices r.tlll be c~doptcd: and (b) tndustrral and smallhuldcr plantations, provided tecfinical and marketing constrarnli; are addressed. ff'/tnt are the pr@.spP~hfor pla##t%ftiufrfowstq? The prospects will be with large scale corrtmercral plafttation fitresty s s \tell as small scale plantatton actitlties parltcularly tn the production csf htyh value spcexcs, notably teak and matmgany. Thcrc is, tvtth the excepttort of high populatton density areas, )anti asarlahle for plantattons. As regards eoil~mcrcralplantation, kcy factors iv111 h t the ability ro address land ccnurt ~ssuesand the tinanciaf tiabllrty of' plantat~onsf including esrsttng ones). At \'illage level, no analysrs has been made yet of returns to smallhult!cr as conspared to other agricultural uses of the land. IYantatrons arc Iskely to benefit gaups t\ irfi good access to land and excess labor and unlikely to lnclude the pocsrest houselicrlits. Whtlc there are exogenous lactors wh~chwill deternline the viabil~tyof vltlayc plantattot~s (princlpall) the tlrture export prices for tirrtbcr), the key challenge is to cscstb1ist-t sustainable systcrtts to asstst smcttlt~crlders$5 lth trainltlg and rnformattun, planting material, quality control and acccss to markets. Fisheries. '['he fistteries rndustsy can be dirridcd rnco (1) ars of'f*si-tc.trcsector targeting the cxpfolratton of' tuna resources for processing ~ r tKoro (Western province) and the export market and frt)at1 rnshorc (coastalf fjshery tvorkcd by commtrctal and subsistence fishers. Future growth of offshore fisheries tvrlI depend to a large cxtcnt on progress in addressrny constrams to prrrratc sccror trtr.cstmcnr. 1hc Sofomon islands exclusir~eec~nomiczone is hame to one of the largest ," t~trtast"sources 113the world. Of'iShorc fisher~esccttrld potentially makc a greater cisntribution to hrnml c.mployment, incomes, go~ernmcntre\ cnucs and export earnings. l iotvevcr, tl~ecountry's take crtntlnues to fa11 short of the total allo~.tablecatch cstohllshcd by the Forttrn 1;ishenes i2gtncy. Much oC the crt'fsl~oreoperation 1s undertaken by foreign ctperatrons operating under lrcense to tlrle govemnzent. 'E'herc art also concerns about the long-term r*iablfiryof sn~afl cannery operattons l ~ k cSolltcrr, tinless prrvate sector iniestnzents can stihstitute for recurrent tnjccttort of grant aid by donors. investments !\rill be needed. 117 particular, to mcct Ibod safety reqtrlrrments rrf cspol? markets, Finally, tn the longer-term, the prcsspect~tvill also depend upon regtonat coopcrattan oi'er rcststirce managcrnent to arroid rrvcr-harvesting, The ttrnsi ifttporiarri i.ssrre Jbr the f?evekop~8ef~fcclaslni Jis.i~irrg.is to estnblislr .srr.staitzahie clf' mmragetfrefrf~;i'.vfe?tts, Coastal ftshcncs ha\ c the potentral to proi~tdevaluable ~ncon~e-generattny opportut?itres for tttany corstniunities for $%humcash rncotws arc ltntrted. They also provide tvidcr contrrbtrtlons ra food security. Ccrnr+ersefy, degradation csf coastal manne resources could potenttally hat c a setyereInlpact on food securrty and incomes at' nsany communities ~ v ~ fetv t h ~3thereconomtc alternatiits. 12cyulatory actictn by (;avt.mment does not hate the capacity to respond tc.t locafizud over-ftshing In areas of populorton pressure, 'E'herc is a need for more rcscarch on the role of protected areas and custcrnzary resotirce management rey1mc.s to support impro.ted srrafcptcs for managing coastal fishcrxcs. 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S~~UI~ELIXEV~JO ~ aqtjo 33uet~rroj~ad aircxdtq - 3qf ot (sa3tnosa~xrrrmrr ptia Xiwaroj) l~ycitraitlul sl:,npc>d13% lesoljc)y~om)auatg furin s a o ~ ~ ~ a \\a!1tunruttrtt3 ~c.tn1dy ssa3ae.iarsca - ."*.. a 2 - L .- ff) % S 2 2 Sr Z t Q gc, $ $1 9 g Na- g $ 1 1 S ? $ 2 * z g & E B 2 k k" E s : 2jz;zg- $)$ 3 =: &< 8.2 2 - ::ti -esz(3t-32C;6 SJ CI 2- n BC , -s z- W g 3 &$h 2" 2l 3 T i + - &p akn e 2: 0 jL-%-g ~$ 3b ~g ~%. ~, "~ 5g ~a Z $& $ Z a=: ;% j l % g a sa , , , s r O ? a , s ADR f.&sianDetelops~leniBank). 2UO5, i3rr>atcSector Asscssmclxt for Sofont011tsfands. hlanxla, 107 p tItrshIL) (Attsfralta Agencq for Inrernatluxtal Dex rtctpmctlt). ZOO6a. Pacityc 2020. Dackgrol~ndpapers or? laid lisflt.rrcs ant! ritrestry, Canberra. -- -- 2lflIfih Snralfhrtlderi\yr~culturcStiidy I3-rc -,~oluxncsCanberra, >\?ti\~~p'ti?l.prt\~ . t i ~ . 2003. Yatirh in rftc Solr7rrrr7n islantfs: A Participatcrr;v Srudy af issues, tl'cccis, and Pnoriries. f'lnal report. Canberm. f 25 p. Ci3SI (Central Bank of Sslot~icrllIslaxldsf. 2U05. Rcpart on fhc Satiorlaf Sonfcrcnct oti Revitafixiitg Kuraf I.rnaircc rct Srtloxzwn Isfaxxis, 1fortiara. lOft pa ISaldrll, P, ai~dD. M. Scltug, 2002. I.s\rrt:i fttr. f^it~~inttrtri!t'-Ir~f.~f~ff Stontiirtthlt7 Rr~sot4tre,tfrrrrtrgt'rncrtrtrml Cotr\t4r.t*i~ftnrt Cittrrr*tfc.rarro,l.c for tlrt. Str.ctrt~gtr.*fcrt,trr P/.o,gtuttnntt.fttr. rite frtrcr.irirrirtttrrfIlirri*t., ttf rift, Padet~Assctciat~vx't Asscssmcnt ttf' the Food Secririry, I.ttelihoods Potex~txal.and Etlerpy Reso~trcesof the Guadafcanal Weathex+C'crast, Solonrrtrr islands ttonxaia, Malaxta Proil,trrce, Srrlt-msn Islands. 2006. Iunlt Tugem Rrldlm Malaita. I'hc Strategic Plan of the Peuplc of Ma1a3ta I%ovit~cc,2007-7Dt 7 ,Auki. 28 p. Ministry of i.ands and IJot~sixxg.2CtfIf3. Polity Paper: 'The Rettlrn of Alienated I.and to Qriptnaf Land Ovncrs ar~tSCltIxcr Srakehulders. Ffuxlxaia. I l p. N%,k"rIX3.l"519. Draft Agncuftural Refornt In cfxe Solomon Islandr. Ifontart. 12 p, and annexes. SlCi f Solot?.tunIslands Ciovcrnmrntf. 2006a. Re-aItgnxncrrt undcr Ncv Policy Frrtrnet-iork (Jtllyf. Dcpartrucnr of' 1,ands and Survey. Eioniara. 12 p. --- - .tOO6h. Yattt.tna1'l'ransport Plan 2007-2026 (June2006). ,l?lntstry at' Infrastrttctr~rcand L)e\ clapmrtlr. fIoitiara. loll p. - - 7005 Safic~i~alI:coixottuc Recovery, Refort21and I'levtlupnxcttr Pfan, In~plemcntarlonReporl f Septctxbcr 2f305). f)epaxtt-i~cntof hation~tlE'fanninp atld r i d Cursrtttnatiot-r,Ilulxiara. 83 p. ----------."IOd-fa. Annual Report of the DcparCt~xel~rof Lands aitd Si~x+t.cy{March2tftf5),f iot~lara.42 p 7tf04b. Rcport on rhc Restoratton of Law and Ordtr in the Solctman fslatlds Latit and Order 'i'ask i:orct of' n Islands. IIoniara . ZtfCt?a..A i'art~~crshipApproach to Con~tnuxlttyf3c.tcloptr1cnt: Ratror~alt;.ingclte In%ol.temenruf' hGOs and Ile~clnpn~cttrParctlcrs Report uf thc Sewiccs I'askforcc nf"Str1amonislands f?;ot.t.mbcr 20ffJ),f loniam. If33 p. 2Utf3h. l'hc Scu Rase: Road >rap to Ecunun-rtc Rcco\cry, I>ct.clopr~rrnrartd Nation Buildxtlg ixx Solonx>i-r fslands. Rcport nf the l:cat~amlcSub-Task Force rtf Suloxnon fsfatxds (Octt7bcr2f)03f. Iloniara, %O p. STSO fSttlon~otxlsXands Stat~stxcsOffkc). 2006. FInuselmld Incatlze and f'wperrd~titre S~irxcy( t tlk:S) 2005 2(3f3G. 'f $ 5 0 ~ctliltx-rcs(Scptcn~hcr2tifff~f.Dcparzmet~tof Ftnance and 'i'rcasurj. E Foniara. Siipdcrt, C. 2006. 5lanaprnp Puhllc kxt~anccsto Support AgiicuIturr and Rural Dtvefopn~e~~t.Dackgrouxrti sttldy prepared fctr the AZRDS. I fctnxara. 3S p. 'lrrgtis,1' and T, Kabittaiilaka. Qcttthtr 2006. AKUS, Stimmary of Consultartuns - IIoiriara atld Provinces. 64 p. F'SFF (Fynited Satia~~f)e.rclopmct~tProgramme), s 2002. S o l u n ~ oislands titrman Ilct.cloprnet~rReport 20112. ~ ~ Gotcrnmcnt of SolrctnionIslaxrds. itonxara Kamcr. R , i\ ;Ilc~ircgnr,1. Wore, anti M,Pefomo, 2006. 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