BY NED GAGAHE
The Minister for Finance and Treasury (MoFT) Gordon Darcy Lilo has called for a major shift in Solomon Islands’ fiscal and economic policies, saying that past approaches have failed to deliver the outcomes needed to improve people’s lives.
Speaking during the Central Bank of Solomon Islands’ (CBSI) Golden Jubilee celebrations at Heritage Park Hotel in Honiara last week, he said the country can no longer continue with the same policies while expecting different results.
“It is evident that our fiscal and monetary policies in the past have not produced the results that we want.
“Therefore, continuing along the same pathway and expecting different outcomes is unattainable,” Mr Lilo said.
He said Solomon Islands must adopt a transformative approach to nation building to reverse slow economic growth and address worsening social and economic conditions.
“We need to reorient our fiscal and economic policy directions now and adopt a transformative shift in our approach to nation building to reverse the slow growth trend and change the socio-economic status of Solomon Islands,” he said.
Mr Lilo linked the need for reform to preliminary findings from the latest Household Income and Expenditure Survey (HIES) and the forthcoming Poverty Report, which indicate poverty and inequality remain major national challenges.
He said the findings show that despite advances in financial inclusion and economic reforms over the years, many Solomon Islanders continue to struggle.
“The poverty survey report has still reflected that poverty is an underlying issue for our country,” he said.
Mr Lilo said stronger coordination between fiscal and monetary policy will be critical to deliver sustainable economic growth.
He reaffirmed the Government’s commitment to deepen financial sector reforms through capital market development, the establishment of a Sovereign Wealth Fund and the revival of the National Bank of Solomon Islands.
“Today I reaffirm the Government’s unwavering commitment to support our bank in achieving the reforms that are necessary to deepen and strengthen our financial sector,” he said.
Mr Lilo said the Government remains committed to ensure that today’s resources are managed wisely to create long-term prosperity for future generations.
Photo credit: Ned Gagahe
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