Speech by RAMSI Special Coordinator Tim George to Solomon Islands Chamber of Commerce (10 May 2007)

I’d like to thank the Chamber for this opportunity to speak to you today. The scope for a body such as the Chamber of Commerce to draw attention, and shape responses, to the particular challenges facing a small and post-conflict economy such as Solomon Islands cannot be underestimated so I am very happy to have this chance today to talk about the role we – the SIG-RAMSI partnership, the Chamber and the business sector generally - can play in creating the best possible environment for responsible economic growth and the development of the Solomon Islands commercial sector.  

I’ve been in the country six months now but I am finding that I am still learning something new practically every-other day. Take last month for instance, where the ‘lessons learnt’ would certainly include the need to plan ahead, to properly assess the risks involved in any undertaking, to anticipate and prepare for a range of outcomes and - in the Solomons at least - to always pack more than one pair of trousers!

This particular set of insights came to me in the village of Vosa; a large community situated on the south coast Choiseul. They came - not so much in a blinding flash - but in the middle of a torrential downpour with the sad realisation that not only was our entire party of prime minister, cabinet ministers and senior government officials soaked to the skin but on Day Three of a five-day trip so were my only pair of trousers!
 
This damp fact did not go unnoticed by my host, the Honourable Prime Minister, Manasseh Sogavare who kindly took it upon himself to explain to others why, at the next community we visited, RAMSI’s Special Coordinator was appearing in his knee-length swimwear!
 
All jokes aside, I must say I feel genuinely privileged to have been invited by the Prime Minister to join him onboard the patrol boat, The Lata, as he and other cabinet ministers and senior officials toured the disaster-affected areas of Western and Choiseul Provinces. Apart from the chance it gave me to see firsthand the extent of the devastation and speak with those affected, it was probably the most instructive and interesting five days I have spent since my arrival in the Solomons, last November.

In addition to the clearer appreciation of the impact of the disaster, the trip also gave me a much greater sense of the isolation - almost disconnection - in which so many of the nation’s most remote communities must live. For many of the villages we visited, I believe, it was the first time since Independence they had received a visit from the country’s prime minister. And it was heartening to see the immediate impact of the PM and his party’s presence in these communities. The effort taken to include specialists such as a geologist to brief communities with a slideshow on what had happened and why was also, I thought, particularly helpful as so many that we met were still quite confused and apprehensive about what might lie ahead.

Back in Honiara, as well as in the West and Choiseul, I have to say, that I have also been struck by the quite unifying impact of the disaster.  So many Solomon Islanders from all across the nation appear to have been galvanised into action of one form of another - whether it be organising a fundraising concert or assisting their churches to  send in trained counsellors - in an effort to meet the needs and salve the wounds of their fellow countrymen that have been so affected.      

And could I take this opportunity again to extend our condolences and thoughts to all those affected in all the various ways by the devastating earthquake and tsunami and having seen it firsthand I can appreciate just how devastating that has been.  The loss of life, the injury, the huge loss of property, the incredible disruption and uncertainty created in people’s lives and I think probably very few if not, no one in Solomon Islands has not been affected if not directly, then indirectly by this national disaster and I know many of you here today are very much from those parts of Solomon Islands and have family, business and other personal interests there.  So our thoughts are very much with you all.

I am glad that RAMSI has been able to contribute to this nationwide effort to resuscitate such a significant region of the country;  both through the support the RAMSI Participating Police Force has been able to give to the Solomon Islands Police, particularly in the early emergency stages of the disaster relief efforts, and through our development. 

It would seem to me that the next stage of this response, the reconstruction of the Tsunami- affected area’s economy and rebuilding of its infrastructure offers a bit of break-through opportunity for the region to address some of the long-standing constraints on growth in commercial centres such as Gizo and Noro and the region’s potentially lucrative tourism industry.

If handled astutely this reconstruction phase, in particular its planning, the coordination of this effort with key donors, provincial authorities and the business community, could also potentially be a chance for Solomon Islands to test its improved systems of governance, of planning and management or at the very least to learn as much as possible from this exercise.

The importance of good economic governance cannot be underestimated in any nation. But I have no doubt that most of you here today are only too aware of how critical good economic management is to the life and future prospects of this nation. Those of you who experienced firsthand the dark days of the ethnic tensions would have witnessed too, the economic decline that preceded and in many ways also precipitated, this rapid decline in the nation’s fortunes.   

This was not an overnight phenomenon but the accumulated impact of many years of decline in the systems of governance and in the country’s accountability mechanisms and institutions, all of which eventually paved the way for the corruption the nation is still struggling to combat to this day.

It is also one of the key reasons why when we were asked by the Solomon Islands to help, your friends in the region sought a comprehensive package of long term assistance, including what are now known as RAMSI’s programs of restoration for the machinery of government and economic governance.

RAMSI’s Economic Governance program has always been designed to fit very closely into the Solomon Island Government system. It operates largely within the Ministry of Finance and Treasury where all policy decisions are made by the Government and all key RAMSI personnel, be they advisors or filling one of four in-line positions, are all jointly recruited with the Government. It goes without saying that all inline officers answer to Solomon Islands Government officials and ultimately to the Minster of Finance.

Established originally at the outset of RAMSI’s deployment in 2003 to carry out the urgent task of stabilising public finances and cleaning up such matters as the government payroll, the Economic Governance Program now supports the strengthened Department of Finance and Treasury’s own five-year capacity building plan. This plan has been developed by the department to map out a staged reduction in the role and number of RAMSI advisors in the medium term with the eventual long term goal being the coordinated departure of the program from the ministry.

When I talk to our advisors in economic reform they have a lot of confidence in both their Solomon Islands counterparts and the ability of the department’s plan to shepherd the ministry’s return to full self-reliance.

Since RAMSI’s arrival four years ago, there has been good progress on the economy more generally, key successes such as the reform of the Foreign Investment Act and work with small businesses but as many of you would also be acutely aware there is still a long way to go in terms of locking-in long term sustainable growth.

There still needs to be better planning based on options for future and sharper assessment of risks, while progress in reforms which remove impediments to growth is surely the smartest way to encourage broad economic growth.

The big risks are still there, as we have seen even in RAMSI’s time. Political instability, vested interests and the corruption that can still distort the economy along with managing better the relationship with key donors are all issues that require more work, commitment and reform from everyone despite the progress already made.  The business community can play a role in continuing the good work that has been going on in the these areas.

Logging stands out to me as key issue in this sense. It is currently the major foreign exchange earner and largest single sector of economic activity. Yet it is neither sustainable at current rates nor – based on current world prices - is it providing to the country a just return for the resources that are being extracted. Both the Government in terms of revenue and Solomon Island landowners are currently losers.

Although some improvement has been made in recent times, the people of the Solomon Islands deserve a fair return for their most valuable natural resources. At the same time ensuring that the government is using its revenue well can also help to reduce the impact of the longer term decline in this industry.

More broadly on RAMSI, I am happy to say that the first stage of the Pacific Islands Forum Review of RAMSI has been completed. The review is a good and objective process. RAMSI welcomes such examination and scrutiny of the mission, particularly from the Pacific Island Forum, which is such an integral part of RAMSI and a good, credible, regional player.  As The representation body for the 15 contributing countries to RAMSI we look forward to continued close Pacific Island Forum involvement in the SIG RAMSI partnership.

In recent times a mechanism to ensure a closer relationship with the Forum, the Solomon Islands Government and RAMSI, has been put in place.  Known as an Enhanced Consultative Mechanism, in reality this means that representatives from the Forum, the Solomon Islands Government and the RAMSI now sit down - at the moment quarterly - to discuss key issues and work through anything that may need to be dealt with in the relationship.

I would also like to take this opportunity to put on the public record again, RAMSI‘s willingness always to improve our consultations with the Solomon Islands Government at the political level.  In this context I welcome very much the willingness the Prime Minister has shown in engaging with me and with RAMSI and in having a genuine dialogue on the SIG RAMSI partnership

The mission already enjoys very strong and effective working relationships at the program level - or if you like the coal-face of RAMSI programs - with the relevant Solomon Islands government ministries and departments. This partnership has been forged across all aspects of RAMSI’s work and the tangible successes that RAMSI and Solomon Islands have achieved in the past four years, would not have been possible – quite frankly – without the intimate involvement and commitment of the relevant Permanent Secretaries and other senior government officials in the development and the implementation of all aspects of these programs from recruitment, to awarding of contracts and of course the government’s own policies in support of such reforms.
 
Similarly we welcome the creation of the new position of RAMSI special envoy within the Prime Minister’s Office (And I am pleased to see the new special envoy, Mr Michael Maina is here with us today.)

Most importantly, in terms of the economy, in addition to the Government and RAMSI, there is of course you. The significance of the country’s commercial sector as a key driver of economic growth and of bodies such as the Chamber in shaping the public policy environment can not be underestimated. 

The fact that there are often not that many voices in the national debate here in the Solomons Islanders actually makes your role even more significant. RAMSI came because Solomon Islanders wanted us to help you return stability and prosperity to this country. But we do not do this on our own.  RAMSI’s contribution to enhancing business confidence is often acknowledged but we all play an important part, especially you business sector.  As business people and as the commercial sector’s peak body, you need to be vigilant; you need to be a watchdog for the nation’s commercial interests, to participate fully in the efforts to combat corruption and establish responsible economic management.

RAMSI looks forward to working together with the Government, civil society and the business community, towards a positive future for this beautiful country.

Thank you.