Stimulating investment in pearl farming in ... - World Fish Center

− Manning Strait islands− Suavanao (airstrip)− NW Isabel coastline, Allardyce Harbour− Reef islands southeast of Gizo, including Nusa Ttupe (Gizo airport,WorldFish hatchery), tourist resorts and Gilbertese resettlement− South Vona Vona lagoon (Munda airport)− NW Marovo lagoon reef islands (Ramata) (airstrip)− SW Marovo lagoon (Uepi, Seghe) (Seghe airstrip)− Russell Islands (Yandina airstrip)− Sandfly Island and passage (Maravari)− Marau Sound, East Guadalcanal (airstrip) (shell jewellery, coral culture)(Tavanipupu resort)− East MakiraRegistered leasehold interests in land, including land below the highwater mark, that isadjacent areas of lagoon, shore and coral reef, will be legally secure provided theappropriate procedures under the Land and Titles Act have been followed. However, it isalways the case that good relations with local communities are crucial to successfuloperations in rural areas. It would be impracticable to make and operate any agriculturalor maricultural investment in a rural setting in a hostile social environment. It will benecessary to make sure that local communities know and understand what is proposed,that the operation is designed to provide as much participation for local people as isreasonable and practicable, business transactions with them are transparent, on fair termsas to prices and quality and are properly recorded.4.1.3 Physical SecurityIn rural locations in Solomon Islands physical security depends on a combination offactors. Regular patrolling by the police is simply not available. An investor with portableassets and stock to protect needs to take clear and non-provocative precautions againsttheft that are understood and accepted by neighbouring communities. As stressed earlier,a successful rural business must enjoy the support of the local community and efforts toinclude these people in the enterprise must be made.There is no history in Solomon Islands (or the Pacific islands generally) of expropriationof commercial investment. Governments have shown a clear understanding of thedamage such action would do the country’s chances of attracting further investment.Solomon Islands subscribes to the APEC principles on non-expropriation and is amember of the Multilateral Investment Guarantee Agency, part of the World Bank Groupof institutions, which provides financial guarantees against expropriation of foreigncommercial investments by host governments. There is no significant expropriation riskto an investment that is conducted in a commercially and legally conventional manner.4.1.4 Security of profitsThe Central Bank operates exchange control regulations under which authority toapprove and process routine trade transactions is delegated to commercial banks.18