Solomon Islands - Economy

At least 80% of the population is tied to subsistence agriculture. The capital sector is dependent on the production of copra, timber, and fish for export, but outputs of other cash commodities—particularly cocoa, spices, and palm oil—have grown in recent years. The development of large-scale lumbering operations has increased timber production considerably, and concern about the preservation of forest resources led to government restriction of log exports in 1993. In the late 1990s, the economic downturn in Asia led to the collapse of the export market for logs— primarily Japan and South Korea. In late 1997, the government devalued the currency to encourage development of other export products and to discourage the growth of imports. The economy declined by 10% in 1998, and the government initiated cutbacks in government agencies. The islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold.