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Solomon Islands Government Launches Cost-Benefit Analysis on Proposed Federal System

The Government for National Unity and Transformation (GNUT) has initiated a Cost-Benefit Analysis (CBA) to examine the potential shift from Solomon Islands’ current unitary system to a federal system of government.

Led by the Office of the Prime Minister and Cabinet (OPMC), the study seeks to evaluate the social, economic, administrative, and governance implications of such a transition, ensuring that future reforms are grounded in robust evidence and broad consultation.

A local consultant has been engaged to conduct the study, which will be peer-reviewed by two international professors—an economist and a political scientist—to ensure it meets international standards.

The findings will be reviewed by provincial governments, civil society, and private sector representatives to ensure that “the analysis reflects local realities, perspectives, and development priorities, as well as harmonises with international best practices,” according to an OPMC statement.

To launch the process, OPMC will convene a Focus Group Discussion (FGD) on 5 November 2025 in Honiara, bringing together key government officials and independent experts to refine the study’s objectives, methodology, and expected outcomes. Broader consultations will follow across provinces and stakeholder groups into early 2026.

The GNUT Government reaffirmed its commitment to inclusive, evidence-based governance reform, stating that the study will “establish the best and solid foundation to anchor the CBA, ensuring it is aligned with sound and credible economic theory while reflecting local realities.”

Using standard economic tools such as net present values (NPVs), benefit-cost ratios (BCRs), and sensitivity analysis, the CBA aims to assess the feasibility and long-term sustainability of the proposed federal system.

Ultimately, the initiative underscores Solomon Islands’ determination to promote informed national dialogue and ensure that any future governance transition is guided by data, inclusivity, and the best interests of its people.

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  • Ronald Toito'ona

    Ronald Flier Toito’ona is a distinguished Solomon Islands Investigative journalist. He is part of In-depth Solomons, an investigative newsroom based in Honiara dedicated to transparency and accountability.

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