By mid‐2001, the Solomon Islands government was on the edge of bankruptcy after two years of unrest on Guadalcanal. Solomon Islanders' hopes that the national government can improve their living standards have been dashed, only 23 years after British colonial rule ended on these South‐West Pacific islands. The reasons for the state's limited capacity to facilitate development extend much further than the financial crisis, as a comparison between power relations typically institutionalized in Western liberal democratic states and those institutionalized in the Solomons state shows. The Solomons state is a syncretism of traditional political practices and modern structures. Many of these traditional practices are impeding development. Recent neo‐liberal reforms championed by the previous government, the Asian Development Bank and other aid agencies did little to address these practices and were terminated in the unrest in 2000. If the state is to improve the living standards of ordinary Solomon Islanders, changes in structure, such as the state governments being established following the Townsville Peace Agreement, are not the sole answer. There also need to be changes in the political practices of both officials and politicians at national and local level.
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Jane Turnbull (2002) studied this question.
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