The Second Solomon Islands Transition to Sustainable Growth Development Policy Operation

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The development objectives and pillars of the Second Transition to Sustainable Growth Development Policy Operation in Solomon Islands are: (1) to strengthen fiscal management in the areas of debt management, cash management and procurement; (2) to strengthen the business environment through simplifying tax processes, fighting corruption and supporting more efficient payments systems; and (3) to improve environmental sustainability by strengthening national planning for climate change and reducing plastic pollution. Pillar 1, on strengthening fiscal management, supports strengthened debt management to safeguard debt sustainability, and stronger public procurement to improve efficiency and reduce corruption. Pillar 2 supports improvements to the business environment, including: making tax compliance easier for the private sector and promoting e-tax; addressing corruption and promoting women’s inclusion in decision-making; and the introduction of a national system for electronic payments, for faster and more secure financial transactions. Pillar 3, on environmental sustainability, is a new introduction to the program and signals the growing importance of climate change and green growth for both Solomon Islands Government and the Bank. This pillar supports Solomon Islands’ Updated Nationally Determined Contribution under the Paris Agreement and efforts to reduce plastic pollution through the introduction of a levy on single use and toxic plastics.