Friday, 24 July 2009 2:12 PM

Currency to Reform Economy

The Solomon Islands Currency Declaration Bill will need to include reform to overcome impact of collapse of the national subsistence barter economy, in order to encourage peace, development, investment and growth. Fundamental collapse of the SI barter economy has however not been formerly studied.

The present world financial crisis is new and mainly involves credit and lending, whereas the actual financial crisis in SI has been worsening for about 40 years and involves lack of cash at the bottom of the economy. Empirical evidence reveals reality of the situation. Rural people do not collect data.

There is now urgent need for monetary system authorities worldwide to see and understand the economic impact of devastation of the world's natural food resources that used to be free or low in cost, but that now cost increasingly more cash.

Reform is one thing, real solutions another. Many SI people lack enough money for soap to launder their clothes, let alone to operate a bank account to launder money. Money laundering reform is all well and good for the nation but will not put money into pockets of people at the bottom of the economy.

How much cash is there in SI? How much cash is needed for daily trade and purchases between all the people?

Islanders surrounded by sea are now seeking food aid more and more but what is wrong with local fish to feed people? Why are northern Guadalcanal people requesting aid to regenerate their reef and why do they also appeal for food aid?

Is it true people now need more and more cash to buy food? Salt fish are being transported from Honiara to Malaita at what cost, and why? Are local fish still abundant and freely available to all? Is local fish considered low in cost to people who have NO money or not enough money to buy both fish and vegetables to feed whole families?

Fish used to be the primary barter trade commodity item in SI. Will the Currency Declaration Bill to Reform the Economy address the social and economic impact of fundamental collapse of the SI barter economy and relevant solutions?

Is local available fish resource devastation true or not? Is there need for relevant solutions, or not?

With respect to Hon. Rini, do SI people need major projects employment to earn money to buy food? What major projects will be generated by the Currency Declaration Bill?

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

Other Letters to the Editor All Letters
By STEVE BANI Vura Heights, East Honiara
By GEOFFREY MAURIASI USP, Lacuala Campus, Fiji
By CHARLES KOULI Gizo, Western Province