In Honiara Alison Ofotalau Communications Associate Ph: +677 2144 E: aofotalau@worldbank.org HONIARA, March 17, 2011 - A World Bank report launched today argues that increasing the amount of aid spent within the local economy would improve the lives of all Solomon Islanders, and create important opportunities for women. While more than AUD250 million of aid per year are allocated to Solomon Islands by donors, only a portion of this remains within the local economy, with much flowing back to donor countries through international procurement contracts, and salaries and allowances of international staff. The local private sector would benefit substantially from donors increasing purchases of local goods and services and increasing the amount that international aid workers spend within the Solomon Islands economy. Speaking at today’s launch, World Bank economist Tobias Haque said: “Increased local economic impact of aid would provide more demand for goods and services from local businesses, allow for the acquisition of new skills and knowledge by local producers, and provide an important source of income to Solomon Island households.” Haque said women could benefit disproportionately from such increases in local aid and expatriate spending: “Women are currently underrepresented in the formal sector, but our analysis shows that women entrepreneurs are already accessing the opportunities created through the aid economy, and these opportunities could easily be widened.” Increasing business opportunities for women is of particular importance, due to the strong link between increasing women’s income, and better social outcomes. “Using aid spending to create business opportunities for women is an important priority, given that women are more likely to use income in ways that benefit children and the wider community, such as through investing in healthcare, sanitation, and education”. The report provides a series of recommendations for government, donors, and the private sector to increase opportunities for Solomon Islands women through increased local aid spending: · To reduce perceived risks of a return to violence which is currently discouraging investment by some women, reach agreement on medium-term security arrangements between government and international partners · To improve women entrepreneurs’ knowledge regarding the nature and extent of opportunities in supplying the aid sector, better publicize donor procurement opportunities and policies · To address gaps in technical skills and business knowledge, expand training opportunities, and take steps to encourage women to participate in these opportunities (for example, by funding families to travel with women when they are awarded scholarships) · To open up opportunities for new businesses in the aid sector, reduce the common donor practice of always relying on a single supplier, and provide training to businesses in preparing tenders for donor contracts · To address high costs of doing business for Solomon Islands women entrepreneurs, ensure that women are represented in ongoing processes to improve business regulations and policies. |
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