Catalog

Private Sector Assessment for Solomon Islands

The Private Sector Assessment for the Solomon Islands shows the business environment in the Solomon Islands is not conducive to economic growth. The ADB report notes the high costs of doing business there and mentions a pervasive culture of interference and control by the public sector in the Solomon Islands that exists along with weak public administration. A need for better infrastructure and reliable and less expensive electricity and telecommunications is also expressed in the private sector study.

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Contents

1. Introduction
2. Country Overview
1. Introduction
2. Recent Events
3. Structure Of The Economy
1. GDP Growth
2. Population Growth And Social Indicators
3. Sectoral Breakdown Of The Economy
4. Trade And The External Sector
5. Domestic And Foreign Investment
6. Inflation
7. Official Development Assistance
3. Private Sector Development Issues
1. Introduction
2. Barriers To Doing Business
1. Starting A Business; Formality And Informality
2. Transactions Costs Of Running A Business
3. Foreign Investment
4. Investment Incentives
5. World Bank "Doing Business" Indicators
3. The Rural Sector
1. The Importance Of Rural Development
2. Main Elements Of A Rural Development Strategy
3. Land Reform
4. Is The Small Size Of The Economy A Handicap?
4. The Role Of The State
1. Strengthening The Public Sector
2. Undertaking And Building Support For Reform
3. Guidelines For Reform
4. Extending Credible Commitment From One Government To The Next
5. Infrastructure Issues
1. Introduction
2. Current Infrastructure Services
1. Electricity And Water
2. Telecoms
3. Sea And Air Transport
4. The Regulation Of Infrastructure
3. Infrastructure Lessons From Post Conflict Countries
1. Communications
2. Shipping
3. Electricity
4. New Ways To Provide Infrastructure Services
1. Integrated Project Design
2. Choice Of Infrastructure Provision
3. Improve Access To Financing
4. Improve Procurement
5. Improve The Operation And Maintenance Of Infrastructure
6. Conclusion
6. The Financial Sector
1. Overview
2. Credit And Interest Rates
3. Collateral Issues
1. Characteristics Of An Effective Collateral System
2. Using The Collateral Framework
7. Legal And Property Rights Issues
1. Overview Of The Legal Framework
1. Pervasive Non-Legal Institutions
2. Availability Of Legal Information
2. Problems In Business Entry And Operation
1. Business Licensing
2. Company Registration
3. Enforcement Of Business Transactions
1. Enforcement Of Business Property Law
2. Arbitration
4. Problems In Business Exit - Bankruptcy
5. Consumer Protection
6. Reform Recommendations
1. Make Legal Information Available
2. Reform The National Licensing Law And Corporations Act
3. Establish A Company And Business Licensing Registry
4. Create A Legal Framework For Business Property Rights Enforcement
5. Revise The Arbitration Act And Its Enforcement
6. Revise The Bankruptcy Act
7. Reform Consumer Protection Legislation
8. Conclusions
1. The Priorities For Reform Efforts
1. Donors And The Disbursement Of Aid
2. Focus On Infrastructure
3. Refocusing Government
4. Tax Reform
5. Financial Market Reform
6. Rural Development And Land Reform
7. Legal Reform
Last Word
9. Bibliography

Figures

Figure 1. Comparative Per Capita GDP, 2003

Figure 2. GDP Growth, Annual %

Figure 3. Comparative GDP Per Capita

Figure 4. Population And GDP Per Capital Growth, Annual

Figure 5. GDP By Industrial Origin

Figure 6. Exports By Principal Commodity

Figure 7. External Trade, Annual Change, %

Figure 8. Exchange Rate

Figure 9. Foreign Direct Investment

Figure 10. Inflation, GDP Deflator (Annual %)

Figure 11. Official Development Assistance

Figure 12. Cost To Start A Business

Figure 13. Time To Start A Business

Figure 14. Time To Enforce A Contract (Days)

Figure 15. Cost To Enforce A Contract

Figure 16. Time To Go Through Insolvency

Figure 17. Recovery Rate In Insolvency (Cents On The US$)

Figure 18. Comparative Domestic Credit To The Private Sector

Figure 19. Comparative Regional Domestic Credit To The Private Sector

Figure 20. Comparative Interest Rate Spreads

Figure 21. Comparative Regional Interest Rate Spreads

Tables

Boxes

Box 1. Business Registration