BY NED GAGAHE
The United Nations Development Programme (UNDP) has cautioned that Solomon Islands still has significant work to do before its scheduled graduation from its Least Developed Country (LDC) status in 2027, despite promising reforms already underway.
Speaking in response to questions on the country’s readiness for the transition, UNDP Pacific Office Resident Representative, Munkhtuya Altangerel, said the move out of LDC status will bring both opportunities and challenges for Solomon Islands.
“As you know, the graduation from LDC status has been deferred many times, and now 2027 is the year. Hopefully, the country will graduate then,” Ms Altangerel said.
She explained that while graduation reflects development progress, it also means Solomon Islands will no longer enjoy some of the special benefits currently available to LDCs.
“Very low-rate concessional financing may no longer be available, and the country’s banking and financial systems will need to meet international standards,” she said.
Ms Altangerel said that Solomon Islands must also work towards achieving stronger credit ratings to improve its ability to access international financing on favourable terms.
She said graduation will require the country to adapt to a more competitive global environment, particularly in trade.
“LDC countries usually benefit from preferential trade agreements, but after graduation they must compete on a level playing field. The same rules will apply to Solomon Islands as they do to other developing and middle-income countries,” she said.
The UNDP representative questioned whether the country is fully prepared for the demands of global trade and international finance, stressing that reforms must continue to ensure a successful transition.
“I feel there is still a lot of work that needs to be done for the country to fully embrace both the challenges and benefits of graduation,” she said.
Ms Altangerel encouraged Solomon Islands to make full use of the remaining period before graduation to access available preferential treatments and development support mechanisms.
She welcomed the Government’s ambitious reform agenda, saying it could help accelerate the country’s preparedness for graduation.
However, she stressed the importance of building strong economic foundations before pursuing rapid growth.
“If we do not have strong foundations and we build too fast, it could crumble,” she warned.
She identified trade development, prudent fiscal management and sound financial governance as critical pillars for a sustainable transition.
Ms Altangerel also praised Prime Minister Matthew Wale’s proposal to establish a sovereign wealth fund, describing it as an important step towards strengthening the country’s long-term economic resilience.
“These are really good stepping stones to graduating in a very sustainable way from LDC status,” she said.
Solomon Islands is currently scheduled to graduate from the United Nations’ Least Developed Country category in 2027, marking a significant milestone in the nation’s development journey.
Photo credit: UNDP
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