Impact of price rises on rural families

Fascinating piece from Solomon Star News. Although many people in urban areas have limited access to a cash income, people in rural areas have even more limited access, and their limited ability to participate in the cash economy is compounded by the expense of travelling to Honiara, or having goods shipped to rural areas. In other words, they are more vulnerable to price rises than are those in Honiara.

Zaka identifies something that Wei and I have not to date - the damage caused to Chinese business could perhaps open up opportunities for Solomon Islanders that were not previously there. It will be interested to watch Solomon Islands' economy in the coming months and years to see what the long-term impacts of the rioting are (if any).

Price crisis affects rural families

Submitted by Arthur Wate on 25 April, 2006 - 3:44pm. Headlines

THE price crisis expects to severely affect rural-based subsistence farmers and fishermen, a shop-owner said.

“Our struggling families back in rural areas would be the worst affected consumers.

“The prices of goods, which have been unnecessarily increased, would be doubled or tripled the current rates,” said the shop-owner Samuel Zaka.

He called on shop-owners to have pity on the rural people who are struggling to make ends meet.

As citizens of this country, he said, everyone should have concern for the people.

“We should not allow the unfortunate situation to sever our mutual relationship that bonds us together.

“Be fair and honest with our prices,” he told Solomon Star yesterday.

Zaka said the increase of prices of some consumable goods such as rice, cigarette and tobacco and canned food is unwarranted because the supply is still there.

Although demand is high, he said, the main supply has not been affected.

The major retail and wholesalers may be destroyed but there is still a channel to get supplies, he said.

The shop-owner said the problem currently experience in the capital can be viewed as a test of ‘our credibility as business people.”

Seeing the Chinese friends who major suppliers have been cut off through the destruction of their businesses, it is time the local people take up the opportunity, he said.

“We should now face the challenge of starting a business and help our own people.

“The problem should be our stepping stone to self-reliance.

“We should not take advantage of it to punish fellow citizens,” he said.