Page 18 - IB May 2024

Solomon Islands

CHANGE IN DIRECTION, OR JUST

SMOOTHER SAILING?

Continued from page 11

“We look forward to working with you to develop China-
Solomon Islands relations and deliver more benefits to our
peoples,” Chinese ambassador to Solomon Islands, Cai
Weiming wrote in his congratulatory message.
The US issued a similar message: “We look forward to
working with Prime Minister Jeremiah Manele to further
strengthen the US-Solomon Islands relationship and move
our nations toward a better future.”
Soon after the election, New Zealand sent its Foreign
Affairs Minister, Winston Peters to deliver Wellington’s well
wishes to Manele.
Australia dispatched its Deputy Prime Minister and
Defence Minister, Richard Marles to reinforce the two
countries’ diplomatic and traditional ties. Marles met with
Manele, his deputy Bradley Tovosia and Finance Minister
Sogavare.

Precarious economy
Whilst creating history as the first Prime Minister from Supporters of one of the candidates in a float parade in Honiara prior to the
the province of Isabel, Manele has not lost sight of the elections. Photo: In-depth Solomons
mammoth task that lies ahead.
Two weeks before the election, Governor of the Central
Bank of Solomon Islands, Dr Luke Forau issued a blunt
warning. moving up to become permanent secretary and then finance
“The state of the economy remains in a ‘precarious’ minister.
situation,” Forau stated when launching the bank’s 2023
Annual Report. Leading from behind?
“We urgently need a major economic reform program But Sogavare’s appointment has attracted some debate.
if the economy were to prosper in the medium to long Many believe having him in Finance makes him the most
term,” he added. powerful man in the current government behind the Prime
“The reform program must be specific, targeted and Minister.
measurable. “As the Finance Minister, Sogavare has the power to dictate
“The incoming government is in a better position to where things will go for the current government,” Makili
initiate this reform. asserts.
“We have a fast-growing population, with a population “So basically, he’ll be leading the pack from behind,” he
rate of growth higher than the average economic growth continued.
rate. However, others say Manele is a strong and experienced
“This is dangerously not good and is a serious concern. leader who knows what he’s doing and where he wants things
We need to grow the economy faster than the growth of to go.
the population.” “It’s guesswork to say Manele is a puppet. He is not,” Iro
In his victory speech, Manele highlighted that fixing the said.
economy would be his government’s priority. “He is not Sogavare, and he’s someone who cares about his
That task will be led by none other than Sogavare, whom reputation and the people around him,” Iro said.
Manele appointed his Minister for Finance and Treasury. “He’s an inclusive leader, and he listens to what people say.
Sogavare is not new to the Finance portfolio. As a former So, I don’t think he’ll lead like the way Sogavare did in the
public servant, he once headed the tax department, later last five years.”

18 Islands Business, May 2024