Donors can boost the impact of their work in the Solomon Islands by increasing the amount of aid they spend on the country’s local economy, the World Bank says in a recent report.
The study notes that while the Solomon Islands receives more than 250 million Australian dollars ($250 million) in aid per year, much of this flows back to donor countries through international contractors and the allowances and salaries of international staff members.
The World Bank urges donors to increase the amount of local goods and services they purchase as well as the time international aid workers spend in the country to boost the private sector and create new opportunities, particularly for women.
“Increased local economic impact of aid would provide more demand for goods and services from local businesses, allow for the acquisition of new skills and knowledge by local producers, and provide an important source of income to Solomon Island households,” World Bank economist Tobias Haque said.
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