Solomon Islands:

Barriers to the Economic Empowerment of Women

While the UN Human Development Index, ranks Solomon Islands 143 out of 18 !ountries, thin"s are even #orse for #omen$ %he Women&s '!onomi! (pportunit) Index pla!es Solomon Islands at 1*4 out of 1*8 !ountries statin" that this s!ore refle!ts the minimal le"al prote!tion for #omen in the #orkpla!e, little a!!ess to finan!ial servi!es and the hi"h rate of illitera!)$ %he aim of this stud) is to alert stakeholders to the impediments fa!ed +) #omen seekin" to en"a"e in the private se!tor$ ,) doin" so it informs stakeholders of the need to desi"n strate"ies and interventions that are +oth sensitive to the needs of #omen, and !an address inherent ine-ualities$ This assessment arti!ulates the "ender dimension #ithin the .SDI in Solomon Islands and !onstitutes a summar) of the le"al and re"ulator) +arriers to #omen&s in!lusion in the private se!tor/ le"al and so!ial +arriers to #omen&s emplo)ment in +oth the informal and formal se!tors, in!ludin" +arriers to emplo)ment, a!!ess to finan!e, and +usiness o#nership, and a list of re!ommendations that address the !hief !onstraints fa!ed +) #omen$
I

Commitment to gender equality by Solomon Islands government

Solomon Islands has !ommitted to "ender e-ualit) +) +e!omin" is a si"nator) to the follo#in" treaties0 International Covenant on Economic Social and Cultural Rights Convention on the Elimination of All Forms of Discrimination Against Women Optional Protocol to the Convention on the Elimination of All Forms of Discrimination Against Women Bei ing Platform for Action !he "illennium Development #oals !he Common$ealth Plan of Action for #ender E%ualit& '(()*'(+) Revised Pacific Platform for Action on Advancement of Women and #ender E%ualit&

Solomon Islands has also !ommitted to #omen&s empo#erment +) appointin" the 1inistr) of Women, 2outh, 3hildren, and 4amil) 5ffairs 61W23457 as the National 1a!hiner) for the advan!ement of #omen$ In its Strategic Plan of Action '(+( , '(+', the 1inistr) has listed over 38 a!tions to address this issue and (ut!ome * spe!ifi!all) refers to the 9Improved e!onomi! status of #omen&$ It lists the follo#in" four initiatives0 1$ Develop poli!ies and pro"rams that involve #omen and men in natural resour!es development and mana"ement/ *$ Improved a!!ess to resour!es and land/ 3$ Improve a!!ess to le"al prote!tion and o#nership of finan!ial resour!es/ and 4$ Improve opportunities for #omen in pu+li!, private and !ommunit) se!tors$

Institutional support for "ender e-uit) is "ro#in" in Solomon Islands, and a re!ent innovative initiative is the in!lusion of a spe!ifi! performan!e indi!ator on "ender mainstreamin" in the annual performan!e appraisal of all .ermanent Se!retaries 6*81*7$ (ther positive moves in!lude the passin" of the 'viden!e 5!t 6*88:7, and the removal of the !orro+oration rule that treated as suspi!ious the eviden!e of a person #ho !laimed to have +een sexuall) assaulted$ ;ike#ise, a num+er of !ourt de!isions have re!o"nised that rape !an o!!ur #ithin marria"e$1 4urther 3a+inet has also adopted a poli!) on 'liminatin" <iolen!e a"ainst Women 6*8187$ =esults from the .eople&s Surve) *811 demonstrate a !lear shift in pu+li! per!eption, sho#in" that more than 8>? of Solomon Islanders +elieve there should #omen in parliament, #ith a vast ma@orit) advo!atin" for spe!ial reserved seats for #omen$ %his indi!ates #idespread support for "ender e-uit) initiatives amon" the people of Solomon Islands$

ender and Employment

5+out 88? of Solomon Islands #omen live in rural areas and rel) on a"ri!ulture for their livelihoods, primaril) in the informal e!onom)$ Women !omprise the ma@orit) market traders, +ut there are fe# #omen in mana"ement$ %he .eople&s Surve) indi!ates that informal sellin" a!!ounts for A8? of earnin"s, #hile onl) 1 ? o+tain in!ome from paid #ork$ %here are man) !hallen"es in +elon"in" to the informal se!tor, in!ludin"0 a! "ac# of $acilities: 1an) #omen #orkin" in the informal se!tor use their home as the produ!tion +ase, and find it diffi!ult to a!-uire #orkspa!es to sell their produ!e$ 1an) of the #omen intervie#ed sou"ht a safe spa!e #here the) !ould displa) and sell their "oods$ %he .a!ifi! Women Shapin" Development Initiative has developed strate"ies to improve the market "overnan!e, mana"ement, infrastru!ture and servi!es, to in!rease #omen&s e!onomi! empo#erment and redu!e "enderB+ased violen!e and in!rease market reform$ 1an) +usiness#omen and +usiness or"aniCations

6e"0 =e"ina v$ .iko D*81*E and =e"ina v$ Fua D*81*E7$

intervie#ed supported the idea of a proB#omen market spa!e #hi!h !ould also +e used as a spa!e for trainin" fa!ilities and information servi!es$ b! "ac# of credit facilities: 1an) #omen intervie#ed !omplained that the) did not have a!!ess to !redit, and that the fa!ilities that #ere availa+le #ere in hi"h demand$ 5lthou"h +anks did not !onsider that the) dis!riminated a"ainst #omen, the) did not a!tivel) lend to informal +usinesses #hi!h impa!ted on the a+ilit) of #omen to en"a"e in entrepreneurial a!tivities$ c! "ac# of accessing formal enforcement processes: Women intervie#ed did not have an) faith in the le"al s)stem prote!tin" their ri"hts and, a!!ordin"l), did not see the +enefits of +elon"in" to the formal se!tor$ %he) did not +elieve that the) #ould "et favoura+le treatment in the hands of "overnments or !ourts$ %here #as a "eneral la!k of kno#led"e and trust in the le"al s)stem$ d! %arassment of women in the informal sector: %his issue has +een a!kno#led"ed for man) )ears, and intervie#s #ith the Honiara 3it) 3oun!il offi!ers supported other ane!dotal information that !heatin" and harassment of #omen operatin" in the markets #as !ommon$ S!holarship in the area supports the proposition that #omen are more prone to !oer!ion and un!ons!iona+le +ehaviour as the) are "enerall) la!kin" !onfiden!e to !hallen"e authorit), there+) repli!atin" so!ial hierar!hies of po#er$ %hese threats impede the manner in #hi!h #omen operate their +usinesses$

ender and Business &wnership

5lthou"h there has +een si"nifi!ant improvement in the time taken to start a +usiness, man) +arriers remain for #omen seekin" to en"a"e in the private se!tor as illustrated +) the Women&s '!onomi! (pportunit) *81* Index, #hi!h pla!es Solomon Islands at 1*4 out of 1*8 !ountries$ %he main +arriers to enterin" the formal se!tor are0 a! Ta' rates and thresholds remain a confusing area( and intervie#s #ith #omen in the informal se!tor revealed a "eneral mistrust of taxation authorities as #ell as a la!k of kno#led"e on the amount of taxes that ma) +e pa)a+le$ %ax remains a ps)!holo"i!al +arrier #hi!h impedes #omen enterin" the formal se!tor, #ith onl) 8? kno#in" that the threshold for tax #as G1>,888$ %he Solomon Island National Development Strate") *811 H *8*8 has set the "oal of simplif)in" taxes on +usiness as a priorit) and if implemented, it #ould +e a ne!essar) step in in!reasin" !onfiden!e in enterin" the formal market$ b! &btaining a business licence +) pa)in" a fee at the Honiara 3it) 3oun!il takes +et#een 1 to 3 da)s and !osts S,D G*,A88$ Despite the reassuran!es of the +usiness li!ensin" offi!er in the 3it) 3oun!il, it is !lear that the s)stem is still !omplex for #omen, man) of #hom are illiterate$ %he la!k of pu+li!l) availa+le "ender disa""re"ated data on li!ense o#nership makes an) assessment diffi!ult$ It #as reported in *818 that the "overnment had !ommitted itself to the a+olish +usiness li!enses and to !ompensate

provin!ial "overnments for their resultin" loss of revenue, althou"h there has +een no pro"ress to date$ market$ e! )ccessing commercial property is diffi!ult and expensive dependin" on 9#ho )ou kno#&, #ith the Doin" ,usiness Index rankin"s pla!in" Solomon Islands at 1 8 out of 18> e!onomies$ .eople are una#are of their ri"hts/ for example, the +usiness in!u+ation pro"ram has reserved *4 rentBsu+sidiCed shops at Honiara 3entral market and Iukum markets for #omen and the #omen intervie#ed had no kno#led"e of this pro"ram$ f! &ther barriers in!lude the la!k of ade-uate and !heap dispute resolution me!hanisms and eas) pro!esses for resolvin" +ankrupt!)$ Su!h fa!tors in!rease the re"ulator) +urden on people seekin" to start a +usiness and deter them from enterin" the formal se!tor$

ender and access to finance

5lthou"h the lar"er finan!ial institutions !laim to treat all +orro#ers e-uall), it is !lear that there is little a!kno#led"ement of the diffi!ulties fa!ed +) #omen in a!!essin" finan!e or providin" !ollateral$ %here is no "ender disa""re"ated data !ollated +) these institutions, and the offi!ers intervie#ed stated, JIf the) !an repa), #e don&t !are if the) are a man or #omanK$ %his !learl) demonstrated that servi!e providers are o+livious to man) of the "endered aspe!ts of +usiness entr)$ %here is also a la!k of information on ho# su!h servi!es have !ontri+uted to the "ro#th of +usinesses, #hi!h #ould +e essential for an) assessment$ 5 num+er of savin"s !lu+s, "uarantee s!hemes and mi!ro finan!e or"anisations are in operation$ Ho#ever, information of these s!hemes is not !onsistentl) availa+le and man) #omen intervie#ed !alled for a sin"le information fo!al point #here the) !ould a!!ess su!h information$

*ecommendations
The Table on the following page makes a series of re!ommendations in!ludin" amendments to the la# #hi!h #ill ease the !onstraints fa!ed +) #omen, dire!ted strate"ies #hi!h #ill en!oura"e #omen to formaliCe their +usinesses and +enefit from the advanta"es that su!h formaliCation +rin"s, as #ell as identif)in" areas for poli!) development #hi!h #ill support further initiatives$

+ The

,acific ,rivate Sector -evelopment Initiative 6.SDI7 is a re"ional te!hni!al assistan!e fa!ilit) !oBfinan!ed +) 5ustralian 5id, the Ne# Lealand 5id .ro"ramme, and the 5sian Development ,ank 65D,7$ Sin!e *88 , .SDI has +een #orkin" #ith 5D,Ms 14 .a!ifi! Developin" 1em+er 3ountries to improve the ena+lin" environment for +usiness and support in!lusive, private se!torHled e!onomi! "ro#th$

*ecommendations
"aws./orms Fender and 'mplo)ment
5mendments to the -a.our Act

,roposed *eforms
=emove prohi+ition from #orkin" at ni"ht 5mend maternit) leave provisions In!lude domesti! #orkers, self emplo)ed #orkers and out#orkers into the le"islative frame#orks 5mend the provisions in dealin" #ith apprenti!es to remove "endered lan"ua"e 'n!oura"e +usiness men and #omen in the informal se!tor to !ontri+ute to the fund and amend the le"islation to remove a"e restri!tion for voluntar) !ontri+utions 5mend le"islation to allo# #omen to a!!ess de!eased or disa+led hus+and&s savin"s 3onsider the s!ope for the introdu!tion of e-ual pa) 'valuate the possi+ilit) of "ainin" support for unpaid leave to +e provided in addition to existin" maternit) provisions 5ssess the possi+ilit) of providin" trainin" for #omen seekin" emplo)ment Fau"e the potential for in!reased !hild !are fa!ilities and the potential for providin" tax dedu!tion in su!h instan!es =emove the need to suppl) spouses& details 6!urrentl) +ein" addressed +) the .SDI +usiness la# reform initiatives7 3onsider the provision of information +ro!hures and net#orks that address the mis!on!eptions that man) #omen have of the re"ulator) frame#ork 5ddress the la!k of skills and mentors #hi!h !onstrain #omen from a!!essin" the formal se!tor 5ssess the manner in #hi!h !urrent +usiness la# reforms impa!ts on rural #omen 5nal)se "ender disa""re"ated data that #ill in!rease a#areness of the nature of !onstraints and the impa!t of initiatives Develop a#areness !ampai"ns on the manner in #hi!h the !ommunit) !ompan) !ould +e used to en!oura"e #omen&s e!onomi! produ!tion =eassess the manner in #hi!h +ankrupt!) la#s ma) impa!t on #omen seekin" to enter the private se!tor In!orporate a variet) of pro!esses to provide information, trainin" and edu!ation that are linked to en!oura"in" #omen from the informal se!tor to transfer to the formal se!tor 5ssess the impa!t of "uarantee s!hemes run +) the 1inistr) of 3ommer!e and the 3entral ,ank on +usiness "ro#th and #omen&s e!onomi! empo#erment 'valuate the impa!t of mi!ro !redit s!hemes on the development of the private se!tor and su!!essful +usinesses

5mendments to the /ational Provident Act

.oli!) Development

ender and Business &wnership

5mendments to the Registration of Business /ames Act Strate"ies for transitionin" to the formal se!tor

.oli!) Development

ender and access to finance

Information provision on !redit servi!es

.oli!) Development

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