omon Islands Protectorate. A British resident commissioner had to oversee the establishment and maintenance of law and order; stop so called blackbirding (enforced recruitment & exportation of human labour to Queensland); and stop headhunting. British political, legal & justice systems were established into the local governance system.
In March 1942 the Japanese had moved into the Shortland Islands after capturing the administrative capital of New Guinea. The British had fleed Tulagi, the then capital located in the Florida Islands, before the Japanese occupied it in May. From here the Japanese moved across to Guadacanal. With the arrival of the Japanese in Guadacanal all the foreigners fled, leaving the islanders to face the Japanese alone. The Japanese treated the recruited local villagers harshly; no pay and even claimed the villager’s property, crops and food. On August 6, 1942 the Americans entered the waters around Guadacanal for their first major offensive against the Japanese in the Solomons. It was here that the America suffered one of their worst strategic sea defeats ever, near the island of Savo when attempting to recapture the territory. Before the Japanese were driven out in 1944 80,000 men in airplanes, battleships, submarines and on foot had battled on the islands. The war eventually claimed 7,000 Americans and 39,000 Japanese lives. The islanders did not participate directly in the major engagements, but they helped the Allied forces, especially as scouts or guerrillas, and received military decorations for their bravery.
After the war ended a new capital was established in Honiara around the wharves and the new American airstrip – Henderson Airfield on Guadacanal. Economic recovery was very slow since many of the wealthy expatriates did not return after the war. The British decided to begin the process of self-government after encountering nationalist movements amongst the locals, which eventually led to the establishment of the democratically elected Local Councils in 1952. Following on from this, 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.