Addressing Policy Challenges Amid Global Uncertainty

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As some of the region’s leading economists, researchers, and academics gathered in Honiara today, the Governor of the Central Bank of Solomon Islands (CBSI), Dr. Luke Forau, underscored the importance of grounding policy decisions in robust research and solid evidence.

Speaking at the joint CBSI, Asian Development Bank (ADB), and Asia-Pacific Applied Economics Association (APAEA) workshop, Dr. Forau stressed that research plays a crucial role in helping policymakers “understand complex issues, anticipate and identify risks, and design effective policy responses.”

Addressing the theme “Monetary and Fiscal Policies Amid Global Uncertainty,” Dr. Forau said that building on the success of last year’s inaugural conference, this year’s event marked another milestone in ongoing efforts to promote research collaboration, innovation, and knowledge sharing among central banks, financial institutions, policymakers, academics, and researchers across the Asia-Pacific region.

He said the workshop provided a valuable platform for exchanging ideas, findings, and practical insights on issues that shape the future of monetary, fiscal, and broader public policies.

“I am sure the theme is timely and relevant, especially for our economies in the region,” he said. “We are meeting at a time of great uncertainty—both for our region and the world. Across the Pacific Islands, our economies continue to face many challenges, from rising prices and global trade tensions to geopolitical pressures.”

At the national level, Dr. Forau noted that Solomon Islands faces its own unique challenges, including the growing impacts of climate change, more frequent natural disasters, and the limitations of small, open economies. “These challenges pose risks to our financial systems and our ability to plan for the future,” he said.

“In such an uncertain environment, sound monetary and fiscal policies are essential to ensure macroeconomic stability, create opportunities, and build a more resilient future for all our island economies. This is why policy decisions must be grounded in strong research and evidence.”

Dr. Forau emphasized that the insights shared by economists, academics, and research partners provide the foundation for informed and forward-looking policymaking. “Evidence-based policy decisions strengthen our capacity to respond effectively to national, regional, and global shocks, and enhance the credibility of our institutions,” he added.

Opening the workshop, the Minister of Finance, Rex Ramofafia, said the research discussions addressed a fundamental question: how should monetary and fiscal policy respond in a world of growing uncertainty?

“Climate change is no longer just an environmental issue—it’s an economic one,” the Minister said. “For small island economies like ours, climate events directly affect food prices, infrastructure, and trade. When supply chains are disrupted by floods, storms, or droughts, prices rise, and our people bear the burden of climate-induced inflation through higher costs of goods and services.”