The population of Solomon Islands is approximately 539.000 with about 48% of the population being female and an estimated growth rate of 2.6% per annum.  The majority of Solomon Islanders are young, with an estimated 40% of the total population being between 0 and 14 years of age, while about 57% is 15-64 year of age, and about 3% is 65 years and above (World Bank n.d.(b)). Approximately 81% (World Bank n.d.(b)) of the population lives in rural areas and an estimated 80% of the population rely on farming and fishing to sustain a living (UNESCO 2008). An estimated 93% of the population is Melanesian and about 4% is Polynesian, with an estimated 1.5% Micronesian population forming the largest migrant group. Other minorities include Chinese and Europeans. The lingua franca in much of Solomon Islands is Melanesian Pidgin while the official language, English, is only spoken by 1%-2% of the population. Additionally, over 120 indigenous languages are spoken (Central Intelligence Agency n.d.). The cultural, linguistic and ethnic diversity of Solomon Islands, coupled with the number and geographic spread of the component islands, poses a challenge to nation building (UNESCO 2008).

The Gross Domestic Product (GDP) of Solomon Islands for 2010 was approximately USD 678.6 million, with an annual growth rate of around 7.0%. The GDP per capita for the same year was estimated to be USD 1,261.0 (World Bank n.d.(b)). Agricultural work and fishing are the leading occupations, employing around 80% of the population. According to the most recent available data, the unemployment rate as a percentage of the total labour force is nearly 32%; about 31% for men and about 33.7% for women (UN Statistics n.d.). The ratio of total youth unemployment rate to adult unemployment rate, with youth being defined as 15-24, is 1.8 (UN Data 2011). The country is rich in undeveloped mineral resources such as lead, zinc, nickel, bauxite, phosphates and gold.  The main export product is timber and cash crops such as copra and palm oil.  The large palm plantation on Guadalcanal and copra plantation on Russell Island represent the country’s industrial-scale agriculture. Gold production has recently restarted at Gold Ridge Mine on Guadalcanal, as has a fish cannery, which now produces tinned tuna for export. Tourism is an important service industry for Solomon Islands but is hampered by a lack of communication and transportation infrastructure (UNESCO 2008).

Solomon Islands is a unitary state with two levels of government: National and Provincial.  The National Government is a constitutional monarchy within the British Commonwealth, with a unicameral Parliament and a ministerial system of government. The Governor General, who is chosen by the parliament for a 5-year term, represents Queen Elizabeth II. The Prime Minister, elected by Parliament, chooses the other members of the cabinet. Each ministry is headed by a cabinet member, who is assisted by a permanent secretary, a career public servant, who directs the staff of the ministry. The national Parliament has 50 members elected for 4-year terms. However, Parliament may be dissolved by a majority vote of its members before the completion of its term. Parliamentary representation is based on single-member constituencies (VisitSolomons.com 2009). Poor governance has weakened government institutions and efforts are currently being made to strengthen governance, and accountability, especially economic branches (Australian Department of Foreign Affairs and Trade 2004).

Solomon Islands is divided into 10 administrative areas, of which 9 are provinces administered by elected provincial assemblies, and the 10th is the capital city of Honiara, administered by the Honiara Town Council (VisitSolomons.com 2009). Provincial governments function essentially as administrative arms of the national government (Australian Department of Foreign Affairs and Trade 2004) and the National Government of Solomon Islands is responsible for the allocation of funds to the 9 Provincial Governments (UNESCO 2008).  Provincial Governments became part of the administrative system in 1981, with the Provincial Government Act, which was reenacted in 1997 (AusAID 2004). Within each province there is a Provincial Assembly with elected politicians empowered to pass ordinances that are not in conflict with the National policy or legislation (UNESCO 2008). Provincial politicians are paid by the same Commission that distributes Parliamentarian entitlements, though their pay rate is much lower (AusAID 2004). 

Ethnic tension and the erosion of law and order in 1999 led to economic collapse. Between 1998 and 2002, the GDP fell by about 24%. By early 2003, the Government still struggled to keep law and order, rampant corruption and extortion had sapped their resources, human development indicators dropped as the Government struggled to provide services, and domestic production was failing while economic debt spiraled out of control (Australian Department of Foreign Affairs and Trade 2004). Faced with a weak, divided and essentially bankrupt government, the Prime Minister requested international assistance under the Facilitation of International Assistance Act. Following extensive regional consultation an Australian-led regional intervention force, the Regional Assistance Mission to Solomon Islands (RAMSI), was deployed in July 2003 under the provisions of the Biketawa Agreement. Law and order was restored and essential financial and other systems were re-established (UNESCO 2008). The economy has proved resilient: in 2003, the GDP had an estimated 5.8% annual growth rate (Australian Department of Foreign Affairs and Trade 2004) and as of 2010 the annual growth rate was 4.2% (World Bank n.d.(c)).

 
Solomon Islands faces a wide range of socio-economic challenges as the Government works to rebuild the economy. For one, it has one of the fastest growing populations in the world with a high youth population, a culture of limited youth participation in community affairs, a high rate of attrition from school, and a sense among young people that they are being failed and left out (UNESCO 2008). Land tenure issues also impede economic development and the creation of long-term solutions is crucial. Around 87% of land is customary, or communally owned and unregistered. Registered land can be owned by Solomon Islanders only, though it is available for 50-year lease through the Government. However, relations between customary land-owners and modern business, which requires land tenure rights, are tense. Ill feelings over land tenure escalated during the period of ethnic tension (Australian Department of Foreign Affairs and Trade 2004).  Finally, Solomon Islands is quite vulnerable to natural disasters due to its location in a geologically active region. The islands experience tremors, earthquakes, volcanic activity and tsunamis frequently (Central Intelligence Agency n.d.). In 2007, Solomon Islands was hit by a tsunami which internally displaced an estimated 24,000 people. The response to this natural disaster raised issues of disaster preparedness, ethnic and gender discrimination and land tenure, particularly on the island of Gizo (OHCHR 2011). 

In order to curb some of these issues, Solomon Islands Government has identified 4 crucial challenges which it will address in order to promote sustainable economic growth and human development. These challenges are to:
(i) Reverse the decline in the country’s production, exports and income; 
(ii) Reform the management of the Government’s finances by reducing expenditure, increasing revenues and improving debt management; 
(iii) Initiate a new arrangement for provinces and the allocation of infrastructure, and; 
(iv) Revive social sector programmes, particularly in health and education (UNESCO 2008).