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

1.3 The public serviceThe national public service has undergone substantial expansion and qualitative changesince independence. It has suffered from increasingly direct political interference in itsmanagement and has been severely weakened by corruption in departments dealing withtaxation, contracting, licensing, access to forests and marine resources and transactions inpublic land. Efforts are now under way to re-establish codes of professional ethics andraise standards of administrative and technical competence.The departments with which an investor would mainly be dealing (investment registration,taxation, employment, immigration, lands, fisheries, provincial government) are allostensibly aiming to promote and assist legitimate investment, but they vary inexperience, effectiveness and speed of doing business. Investors should ensure thatdocuments are carefully prepared and presented, and sufficient time allowed forprocessing and discussion of any difficulties with relevant officials. Any suggestion thatadditional unofficial payments would facilitate processing should be rejected.1.4 Political parties and factionsBefore and since independence, officials and political leaders have been conscious of therisks posed to nation-building by the potential for inter-island conflict. Deliberate effortshave been made to avoid forming political parties on ethnic or island bases. As there arefew other themes that could unite people outside the kinship of their own extendedfamilies or land-holding groups, political parties have generally been weak, taking theform of short-term clusters around a potential or actual prime minister in expectation oftangible rewards. These allegiances have been fragile, depending on the perceived benefitsof the sharing-out of political power and financial patronage, and often attacked.This environment produces frequent speculation about the stability of the government inoffice, and has several times led to a change of government during the life of aparliament—the most recent being that in November 2007. From an investor’s viewpoint,however, there are few discernible policy differences among the various politicalgroupings. The differences are mainly about who should be prime minister and in chargeof patronage, while external relations with China/Taiwan and Australia are also a matterof debate. Major shifts of policy affecting or relating to foreign investment seem unlikely.All parties claim to be in favour of decentralised investment, creation of rural jobs andincome opportunities and increased export earnings. Pearl farming scores well all round.1.5 Provincial governmentsSub-national or island-level governing bodies, earlier known as local councils and morerecently as provincial assemblies, have been established for almost fifty years, to exercisepowers and functions devolved and delegated to them by the national government. Thesegovernments are elected by all adults on the same electoral roll as the national parliament.In the last twenty years provincial governments have been chronically under-resourcedand under-performing in provision of services and infrastructure, and in stimulating orsupporting development. Rivalry with national politicians and the difficulty of staffingservices in remote locations have been key factors in this decline.4