By Martin B. Housanau
Ebey, Marshall Islands
Solomon Islands is approaching a critical national milestone: graduation from Least Developed Country (LDC) status in 2027/2028. While this marks international recognition of progress, experience across the Pacific is clear, and that is countries that fail to prepare pay a heavy economic and social price.
The other Pacific Island economies have already walked this path, and their lessons are stark. Samoa, which graduated from LDC status in 2014, invested early in economic diversification, fiscal discipline, and private-sector confidence to soften the loss of concessional support. Vanuatu, which graduated in 2020, faced immediate pressure from reduced aid flexibility and external shocks, reinforcing the reality that graduation without buffers exposes economies to risk. Kiribati, one of the most recent graduates, placed strong emphasis on transition planning and partner engagement to avoid a sudden funding cliff.
The message from the Pacific is consistent:
LDC graduation rewards preparation, and punishes complacency. Therefore, the Government of Solomon Islands must begin its preparations now, if had not done so yet for the Solomon Islands graduation in 2027/2028 or else faces a heavy price socially and economically.
Why Solomon Islands Government Must Act Now.
Unlike larger economies, Solomon Islands remains highly aid-dependent, narrowly based, with logging still dominant, vulnerable to external shocks and climate impacts, constrained by unresolved land and investment bottlenecks.
Without a clear transition strategy, graduation in 2027/2028 could lead to reduced grants and concessional finance, higher borrowing costs, pressure on health, education, and rural services, slower growth and rising inequality.
The Untapped Advantage of Solomon Islands.
What Solomon Islands does have, and has not fully used is it’s customary land. More than 85 percent of the land is customarily owned. Pacific neighbours that managed graduation more successfully focused on turning domestic assets into productive engines, rather than relying on external support.
Countries such as Fiji and the Marshall Islands, though not LDC graduates, demonstrate how strong traditional and customary land governance creates certainty, attracts investment, and supports long-term growth without land alienation. These lessons are directly relevant to Solomon Islands’ post-LDC future.
What the Government Must Do Before 2027/2028.
The Solomon Islands Government is strongly urged to act immediately by;
– Adopting a National LDC Graduation Transition Strategy, with clear timelines, responsibilities, and public reporting. Establishing a High-Level LDC Transition Taskforce led by the Prime Minister’s Office to coordinate fiscal, economic, and social preparedness.
– Negotiating Transition Support with Development Partners, learning from Samoa and Vanuatu by securing phased, blended financing beyond graduation.
– Strengthening Domestic Revenue and Investment, especially through agriculture, fisheries, tourism, renewable energy — and secure customary land leasing.
– Protecting Essential Services and Vulnerable Communities that graduation must not come at the expense of health, education, and rural livelihoods.
A National Moment of Choice for the Solomon Islands Government.
Pacific history shows that LDC graduation is not the end of the journey, but rather a test of national readiness. Solomon Islands can graduate with confidence, stability, and momentum, or drift into fiscal stress and missed opportunity. The difference will be made now, not in 2027/2028. The Government must lead, Parliament must support, and the nation must prepare. Graduation is coming, and we have no choice. The Pacific has shown the risks.
Solomon Islands must act — before it is too late.
