
Commentary By AV Hughes
The overall aim of government in Solomon Islands, as in other developing countries, should be to manage the use of the total human, financial and physical resources available to the country in such a way that the mental and physical well-being of all its people, and the equitable distribution of such conditions, steadily improve over time, and the impact of external shocks (physical, financial or strategic-political) is successfully managed in line with that aim.
Looking at the national economy as a whole, investment decisions are continually being made at all levels, from national government down to households and personal savings, that involve a choice between competing possible uses of the available money, land, people’s time or other resources. Every investment decision, however large or small, incurs an ‘opportunity cost’ comprising the potential value of things that cannot now be done with the resources that are being committed by that decision.



