BY NED GAGAHE
PUBLIC Accounts Committee Chairman and Central Honiara MP Gordon Darcy Lilo has urged the government to proceed cautiously with the proposed move towards federalism, warning that weak regional economies could undermine the entire reform.
Speaking in Parliament yesterday, Lilo said federalism is a national issue that leaders must confront “head on” before the country commits fully to federalism.
He referred to recent discussions on cost–benefit analysis and economic modelling associated with the federal system, saying that while resolutions have already been passed to pursue federalism, the economic realities on the ground must not be ignored.
“Economic modelling is easier said than done,” Lilo said, cautioning that many regions in Solomon Islands operate on very thin economic bases.
He said applying economic models developed for larger or stronger economies onto provinces with limited economic activity may not work and could create further imbalances.
“Some of these regions have very thin-scale economies. Planting a model designed elsewhere into that kind of economy may not work here,” he said.
Lilo said that before any economic modelling is applied under a federal system, deliberate efforts must be made to drive investment into all regions.
“It is incumbent upon all of us as leaders to think about what can work in every region,” he said, adding that regional economic development is fundamental to the success of any federal arrangement.
He suggested the establishment of a national team or a coordinated approach that challenges provinces to identify viable regional investment opportunities, rather than relying solely on abstract economic models.
Addressing the Prime Minister directly, Lilo said the first and most important task is to build strong and sustainable regional economies.
“How can we build the economy for all regions before we apply any economic modelling to them?” he asked.
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