Essay Examining The Problems With The Solomon Island's Economy And Solutions To Fix It

918 words - 4 pages

DEVELOPMENT ECONOMICS - THE SOLOMON ISLANDSWithin our global economy, there are numerous highly developed and less developed countries. The Solomon Islands is a nation that has recently been facing severe restrictions with regards to Economic Growth and Development. Numerous internal and external forces have subsequently affected the ability of the country to grow economically.The Solomon Islands is facing a low level of development that is reinforced by a variety of social and economic statistics. When compared to highly developed countries, these statistics highlight the developing status of the country. Socially, the substantially low quality of life in The Solomon Islands has made it extremely difficult for the economy to develop. The country is ranked 124th in the world with regards to human development, with a HDI of .624. When compared to the .93 HDI in the highly developed USA, this proves that the quality of life for humans in the Solomon Islands is extremely low. The countries life expectancy at birth of 69 years is a dramatic contrast to the life expectancy in the USA of 77 years. Furthermore, the adult literacy rate of 76.6 % in the country is somewhat contrary to the 99 % adult literacy rate in the USA. This encompasses the fact that The Solomon Islands is highly undeveloped, with a poor quality of life. In addition, the restricted calorie intake ( ...) ... and the low education index of .68 further enhances the fact that The Solomon Islands is extremely undeveloped. Economically, GDP per capita of $570 US in the country seems minute when compared to the $35 060 US GDP per capita in The United States. Consequently, the country is experiencing little economic development due to the lack of economic growth. Numerous internal and external factors are responsible for the low level of development within the country.Since the 1980's, Solomon Islands has been facing violent conditions, which eventually lead to a civil war. Ethnic violence between tribes, and crime has been the underlying factors which have lead to the disastrous conditions. Consequently, the majority of governmental funds have been used to resolve conflict, and very little has been spent on the people through infrastructure and welfare. This has severely restricted the level of development. The closing of key business enterprises due to fighting has left the government with no savings through taxes, ultimately limiting vital assistance towards the people. Due to the low level of savings and the scarcity of capital, the country has been relying heavily on imported manufactured goods. In combination with the low level of national income and huge unemployment, this has lead to rapid inflation. Consequently, the people of The Solomon Islands have very little disposable income to be spent on basic living necessities. The predominance of agricultural production has lead to the country being too reliant...

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