Name: Peldro Rooney

ID: s11152110
Assignment: 2
Course Code & Title: M214 -
principle of public sector
management
Campus: Laucala, USP
Mode of Study: DFL
 Peldro Rooney #s11152110

MG214 ASSIGNMENT 2

The study of the MG214 – principle of public sector management course is indeed significant
to analyse and understand, especially in the modern time today were many issues occurs that
hinders the economic development in many countries around the world. Public sector is
defined as a portion of economic system which controlled by the national or state government
purposely to support and assist the public (citizens) in provision of public services and public
such as security, education and health care and others. Public sector management in a simple
understanding represent the set of functions and processes that manages the relationship that
exists between the component of administrative system. This simply means that public power
and laws were used as force to supply the services and goods needed to satisfy the public.
However, there are other influential organizations exist outside the government agency that
possess similar function of providing goods and service to the public that can influence and
restructure the public sector especially in the Pacific Islands were majority of countries are on
developing state, this include the World Bank and International Monetary Fund (IMF).
Therefore, this essay seeks to discuss and critically analyse the role of World Bank and
International Monetary Fund (IMF) in restructuring the public sector in the Solomon Islands.
World Bank and International Monetary Fund (IMF)
As experienced by other Pacific Island states including the Solomon Islands there are
different acts and ways in which the World Banks and International Monetary Fund (IMF)
influence the public sectors in the countries. The world bank is an organization that deeply
committed in fighting against poverty around the world with that it is responsible for
providing fund in forms of projects, AIDS and grant. On the other hand, every country need
good governance in order to function. International Monetary Fund (IMF) is an organization
that supports good governance (Browne 1995). It is basically responsible in following up on
the funds given out to the countries and make sure the government body properly used it in a
right way and make sure there is transparency on where the funds are directed.
Role of World Bank and IMF in Restructuring Public Sector in Solomon Islands
Strengthening Public debt transparency is one of the significant role of the World Bank
and International Monetary Fund (IMF) in the public sector. In every country in the Pacific
Islands corruption is one the major social injustice or ethical issue that occurs in the
government. This is where the two organizations step in probably to support the government
by collecting the debt statistics, analysing them and support the country government of the
day in providing mid-term debt management strategy. It is very significant because in the
Solomon Islands corruption is very common that even forces people never to trust the
government moves. The public citizens deserve to know the information and understand what
was going in the government management. For instance, in the Solomon Islands the world
bank and international monetary fund (IMF) publish reports on the debt situation of the
country. This approach provides the public the confidence that the government practises
transparency. Hence, by analysing this approach, it is one of the ways in which the
international monetary fund (IMF) and world bank strengthen the governance and restructure
public policy.
In addition to the above role the Provision of ‘budget support grant’ is another way of
which the world bank and international monetary fund (IMF) used in restructuring the public

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sectors in the Solomon Islands. The purpose of the public sector is to improve the livelihood
of the citizens by providing adequate goods and services that satisfies the public. These two
organizations provide budget support grant to assist the government of the day, these grant
are spent to support the organizations that provide necessary services and goods. For
example, Solomon Islands Water Authority (SIWA) and Solomon Islands Electricity
Authority (SIEA). According to Anne Tully the world bank representative in the Solomon
Islands, the grant supports the public sector by satisfying the citizens as well as strengthening
the country governance in providing clearer information regarding funding to the community.
To further analyse this, most of the times the country faces difficult situation in terms of its
budget this is due to the fact that countries like Solomon Islands have very low income in
terms of the economy therefore it takes time to recover hence, the grants provided by the
world bank and international monetary fund (IMF) is the way the government responded to
the public demand on transparency.
In relation to the above roles, another strategy used in reconstructing the public sector is by
approving the lending project with the significant public sector components. According to
the world bank and international monetary fund (IMF), last year $3.6 billion has been
supplied for reforming the public sector management in countries with low income. From
these organisations point of view or perspective, this approach of lending project to the public
sector is a means of providing resources to the government to improve their public sector
management. This is where a lot of reformations in public sector started. Technically, the
world bank and international monetary fund (IMF) providing the resources to the government
to is like strengthen and encouraging the governance body to restructure their public sector.
For example, recently this year it has been announced by the Solomon Islands Ministry of
Education and Human Resource Development (MERHD) that there will be no grade 6 entry
exam to high school next year 2020. This was also backed by the world bank and other
organizations, as a strategy to minimized the level of high school drop outs in the country.
With that, it is clear that the world bank involvement triggers the reform in the education
system of Solomon Islands, which also a good example in the role of world bank in
restructuring the public sector of the country.
Moreover, another strategy used in the reconstructing the public sector in the Solomon
Islands is that it promotes the citizens (public) voice and participation. This is done as
direct participating in policy making sector in the country. This role was basically to support
the people by involving them by encouraging them to have someone representing the citizens
in the decision making and political oversight (William 2011). For example, during the
second week of September 2019, Solomon Islands ended a long 36 years’ diplomatic
relationship with Taiwan in favour of the government decision to switch ties to the People
Republic of China (PRC). The decision of switch was not supported by the public. To support
the public, the world bank and international monetary fund (IMF) with support of other
organisation involved by supporting the Solomon Islands youth empowerment so that the
public has a voice in the decision making (Wood 2013). Many individuals that part of the
youth movement had a chance to deliver the public concern in higher government
departments in the country. This example provides a clear picture of the role played by the
two organisation impacted to reconstruct the public sectors in the country.

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To sum it all up, it is indeed very significant learn and analyse the role of world bank and
international monetary fund (IMF) in restructuring public sector in the Solomon Islands. The
world bank and international monetary fund have common vision or aim which is to fight
against poverty at any cost. By doing that world bank provides the fund and international
monetary fund make sure the funds are well managed and spent through good governance.
Therefore, some of this roles are strengthening public debt transparency which will involve
statistical analysis, providing budget support grants to the public sector, lending projects to
the significant public sector component in order to improve management and promotes the
public voice to be heard and considered in decision makings and political oversight.
Therefore, as citizens it essential that people must take note that the world bank and
international monetary fund (IMF) are effective in restructuring and strengthening the public
sector of the country to fight against poverty.

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References
Browne, C. (1995). Pacific island IMF member countries: recent economic developments
and medium-term prospects. International Monetary Fund.
Corbett, J., & Wood, T. (2013). Profiling politicians in Solomon Islands: Professionalisation
of a political elite?. Australian Journal of Political Science, 48(3), 320-334.
Evrensel, A. Y. (2002). Effectiveness of IMF-supported stabilization programs in developing
countries. Journal of International Money and Finance, 21(5), 565-587.
Haque, T. A., Knight, D. S., & Jayasuriya, D. S. (2012). Capacity Constraints and Public
Financial Management in Sm Pacific Island Countries. The World Bank.
McGillivray, M., & Ahmed, A. (1999). Aid, adjustment and public sector fiscal behaviour in
the Philippines. Journal of the Asia Pacific Economy, 4(2), 381-391.
Negin, J., & Martiniuk, A. (2012). Sector wide approaches for health in small island states:
lessons learned from the Solomon Islands. Global public health, 7(2), 137-148.
Rodrik, D. (2003). Challenges to the World Bank and IMF: Developing country perspectives.
Anthem Press.
Williams, S. (2011). Public land governance in Solomon Islands.

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