Friday, 12 December 2008 6:02 PM

Why Solomon Not Immune

Editor, I read with absolute confusion the comments raised by one Frank S. Bilau relative to the above subject. Firstly, your headline did the appropriate justice to report the Minister's cautious concern over the country's potential exposure to the current looming financial crises. By stating "not immune" I suppose the Minister is exercising the govt's responsiblity by cautioning the country out of complacency. In doing so, I bear no doubt whatsoever, that the Minister fully understands the fact that no economy functions in isolation in a global economic environment. Essentially, the Minister's statement actually echoes the recent World Bank report which cautions developing economies to be alert by putting in place remedial measures to cushion any macro-economical negativities. As regards, I am unsure as to how Frank reads your headline.

Secondly, whilst it is true that China is begining to experience decline in aggregate growth, his reference to China as a major trading partner to Solomons is also confusing. Whilst, heaps of chinese junks do end up on the shelves of our retailers in the form of our imports, I am not sure if China is one of our major export markets. Correct me if recent BOP statistics suggest otherwise.

Thirdly, whilst I commend his call for govt to be proactive in putting in place monetary and fiscal measures in response to the crises, it is unrealistic for Frank to expect and think that the govt's actions will solve the crises. Thats a big ask, let alone for a little economy. When already the major economic powers are struggling with it, how thinkable it is for Solomons.

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

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