Solomon Islands has made considerable gains in establishing macroeconomic stability and strengthening institutions in the past six years. The Australia-led Regional Assistance Mission to Solomon Islands (RAMSI) withdrew this year after fourteen years, having succeeded, together with the authorities, in restoring law and order and
re-establishing public institutions. However, Solomon Islands faces numerous challenges common to many small states in the Pacific— it is remote, highly vulnerable to natural disasters and climate change, has a narrow production base, a large infrastructure gap, and administrative capacity constraints. The government is gearing up for elections in early 2019 and the fiscal position has deteriorated.
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