is, Solomon Islands became the 37th member of the Commonwealth of Nations after achieving independence on 7 July 1978. Solomon Islands still maintains close relations with Britain and many systems such as legal and parliamentary procedures are based on the British model.
The economy is on the rebound after the devastating effects of a two year ethnic tension that almost put a halt to exports coupled with gross abuse and mismanagement of public funds with national debts accumulating to SI$2 billion in 2002. GDP fell by 14.5% on average in 2000 and 2001 with the per capita income dropping to SI$490 in 2001 from its peak of SI$1,120 in 1997. From a low inflation rate of 2% in 2001, this soared to some 13% in 2002. But this is now leveling off and stablising. Value of total exports in 2001 was estimated at US$47 million with imports at US$81 million.
Major trading partners are Australia, Malaysia, Japan, South Korea & Taiwan.
Fisheries & timber are the main sources of foreign exchange. The country also exports copra and palm oil. Tourism has great potential but will need massive government input in the development supporting structure.