Friday, 12 December 2008 8:46 AM

Why Solomon Not Immune?

Dear editor, it interests me when I saw one of your headlines published December 5th carried the title "Solomon Islands Not Immune to Economic Crisis"
It raised questions in my mind like, why Solomon Islands would not immune to the economic crisis?, is Solomon Islands located in another planet?, how sure are you Hon. Minister of finance to tell Solomon Islanders during your second reading of the Govt budget 2009 (as reported by the media) that Solomon Islands would not immune?
In this small response, I just want to put forward some ideas for us to think about.
The above questions raised clouds in my mind because the reasons given are not sounds convincing given the current economic situation already causing problems to some, if not, all major economies in the world including Solomon Islands major trading partners, so for you our hard working Hon. Minister of finance to give such an assurance when most developing nations and the least developed nations yet to experience the side effects of this current economic crisis is statement or if you like idea that worth reconsider.
In the Hon. Minister's speech as report by our few media outlets, carried the statement that drawn my attention, let me quote directly from the media ".while the financial system is strong, we are not immune to the negative impacts of the world wide turmoil" who are we to exclude from such an economic catastrophe which already affects our major trading partners?, not to mentioned one of our major trading partner China now enter a global growth threat, just on Wednesday 11th the China's Custom agency said that November's export fell 2.2% from the year earlier, and perhaps even more worrying, the imports fell 17.9% in November from the year earlier, after they rose 15.6% in October and more than 20% last year, and some economist stated that, this recent threat to the economic growth of China would make it even less likely for them to offer significant support to the growth elsewhere in the world, so how would we expecting immunity from this crisis when China slowdown to its imports which would have an effect on our exports, the major revenue for the govt?, needless to say that if China continues to have this problem, then because of the close trading between most Asian countries where Solomon Islands do more exporting, then Solomon Islands will in the big trouble.

And last month I was listening to the president of the World Bank when they interviewed him on CNN about his view on this current crisis, and this is what he said when asked the question how about the developing and least developed nations, are they going to experience the side effects of this current crisis?, and he answered and said, sooner or later the most developing and least developed nations will force to some extent where that they will experience the impacts of the crisis.

While applaud Hon. Minister for assuring us about the quality of our financial system, there is something that we also need to think about, that is, most of those countries that they already experienced the impacts of this economic crisis have more strong financial system compare to Solomon Islands, but yet this crisis force them to experience the impacts of it.
So, therefore, I would rather suggest that our Govt should not carried away by our current economic growth which is reflected in the Govt budget 2009, but instead should prepare and put in place some mechanism and sound policies to tackle and solve the impacts of the crisis if Solomon islands happened to face, which I'm sure we will if China's growth threat continue to escalate for some times.
As echoed by some commentators, that we are living in the time period where we need leaders with great visions, constructive and fresh ideas, and those who commit themselves to serve human kind.

With those few remarks I just want wish every single Solomon Islanders a success in 2009, lets join our hands together to build our beloved Solomon Islands.




Disclaimer: The views and opinions expressed in this letter/article are those of Frank S.Bilau and do not necessarily reflect the official policy or position of Solomon Times Online.

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