Islands Business - Island economies always at risk, says Narube

HONIARA, Solomon Islands ---- Former Governor of the Reserve Bank of Fiji says the economies of small island countries remain vulnerable in any global economic crisis. Savenaca Narube made the comments during his presentation in Solomon Islands this week He said most of the island economies are already weak and fragile. “And the crisis had made things far more worst for the regional countries,” he said. He pointed out the crisis had put island nations as a drop zone. “We have seen a drop in exports, remittance, foreign reserves, and government revenue,” he said. Mr Narube said Pacific island countries are but victims of the global economic crisis which they never created. “But because the island nations are connected with the rest of the world through trade, we are also being affected. “We are exposed to the global events which some one else created,” he said. Mr Narube said the Pacific islands must look for solutions through good leaders and management of their resources. Meanwhile, the recently revived Economic Association of Solomon Islands (EASI) said it would not be involved in politics. Interim committee member Mike Wate said the presentation by Mr Narube also marked the revival of the association, a professional association established in October 2001 under the Charitable Act. Mr Wate said the revived association will dedicate itself to the promotion of our local economists, providing a platform for networking between local and international economists, the encouragement and the promotion of teaching economic science in our schools and a forum for the discussion of local and international economic issues. “The association will not deal with politics, we repeat, EASI will not involve in politics, we leave that to others," he said. He also cited what an American economist once said: “The first lesson in economics is scarcity. There are not enough of everything we want. The first lesson is to disregard the first lesson in economics”. “From this you can conclude why we leave politics to others,” he said. Mr Wate, an employee of National Provident Fund (NPF), said by having well trained economists at various levels of our government machinery, non-government sector and in the private sector will allow for more constructive discussions on economic issues and the development of vibrant and productive policies. He said EASI will have its first meeting at the end of this month to elect the new office bearers.