The Solomon Islands consist of a double chain of mainly volcanic islands lying to the east of Papua New Guinea in the southwest Pacific Ocean. More than 85 percent of the 324,000 people live in small, subsistence-based rural communities. Ethnic parochialism, reinforced by geographical fragmentation and the use of 87 vernacular languages, is a notable characteristic. Solomon Islands became internally self-governing in 1976 and achieved independence from Great Britain on July 7, 1978. The new state is a member of the United Nations and the Commonwealth. Its constitution established a modified Westminster form of government with the British monarch as head of state.

The head of state is represented by a governor general, whose discretionary power is deliberately kept to a minimum. The governor general is a Solomon Islands citizen appointed on the recommendation of the National Parliament (rather than of the prime minister as is usual elsewhere). He appoints a prime minister only after an election in Parliament, and can only dismiss him after a successful vote of no confidence there. Nor can he dissolve Parliament before its normal term expires unless Parliament favors this course of action by an absolute majority vote. The governor general's term of office is five years, with the possibility of reappointment for another five years.

Effective executive power is exercised by a cabinet consisting of the prime minister, elected by and from the members of the National Parliament, and no more than eleven other ministers, appointed from among the members of the National Parliament on the advice of the prime minister. The cabinet is collectively responsible to the National Parliament.

The thirty-eight-member unicameral National Parliament is directly elected for a four-year term from single-member constituencies on the basis of universal suffrage of adults over eighteen years of age. The Constituency Boundaries Commission reviews constituency boundaries at least once every ten years.

The High Court decides both criminal and civil matters, with a right of appeal to the Court of Appeal, established in 1982. The chief justice and the president of the Court of Appeal are appointed on the advice of the prime minister, in consultation with the Judicial Service Commission. The other judges of the High Court and the Court of Appeal are appointed on the advice of the Judicial Service Commission. Magistrates' and local courts also operate with limited jurisdictions.

There has been considerable debate in Solomon Islands regarding the suitability of a centralized form of government in such a fragmented polity. The constitution provides for provincial-level governments, but leaves Parliament to decide how many there should be, the form they should take, and the extent of their powers. Since independence, elected governments have been established in the eight provinces, but decentralization has proceeded slowly, despite calls in some circles for a quasi-federal government structure. A major review of the system was launched in early 1986 but with little result.

There have been no constitutional crises in Solomon Islands since independence, but the fortunes of the various political actors have fluctuated wildly. National politics has had little impact at the village level, and electors tend to judge a candidate by his clan or religious affiliation, or by his perceived ability to deliver central government resources to the electorate. Only about fifty percent of sitting members have been returned to office in the national elections to date (1976, 1980, 1984, 1989, and 1993).

Political parties are fairly ephemeral and typically consist of loose parliamentary factions, centered around particular individuals, and lack coherent policy platforms or organizational structures. The result is government by fluid parliamentary coalition with regular defections and realignments. However, national politics has consistently revolved around two individuals: Sir Peter Keniloria (Chief Minister 1976-1978; Prime Minister 1978-1981, and 1984-1986), and Solomon Mamaloni (Chief Minister 1974-1976; Prime Minister 1981-1984, and since 1989). Following a scandal over misused French aid funds, Kenilorea was forced to step-aside for Ezekiel Alebua who was Prime Minister until elections were called in 1989. Mamaloni and the People's Alliance Party formed a one-party government soon after the 1989 elections. However, cabinet reshuffling the following year brought in the United Party's Sir Baddeley Devesi as deputy prime minister, former political rival Sir Peter Kenilorea as Minister of Foreign Affairs and the co-opting of Liberal Party deputy leader Geroge Luialamo as Minister of Agriculture and Lands. Prime Minister Mamaloni thus proclaimed his government one of national unity and political reconciliation and a great step forward. Critics have predicted that, because the new Cabinet contained four ministers from Malaita, three from Guadalcanal, three from Western Province, and one each from the four smaller provinces and Honiara, responsible party government in the Solomon Islands may be in jeopardy of being replaced by an oligarchy of island leaders dividing the spoils of office. Such fears were laid to rest in the 1993 elections which saw a return to the typical evanescent politics and the emergence of Francis Billy Hilly as prime minister. Hilly took office, however, only after several months of political maneuvering on the part of several smaller parties in Parliament which at first cast doubt over his initial narrow majority over Solomon Mamaloni.

About 95 percent of the government's development budget, or about one third of total government expenditures, is financed through external bilateral grants and concessionary loans by international agencies. However, the former government of Prime Minister Mamaloni, and now that of Prime Minister Hilly, have both been successful in soliciting investments in timber processing, hotels and light industry (e.g., bottling of beverages) despite growing concern over the unstable financial affairs of the government and the deterioration of relations with Papua New Guinea over the Bougainville crisis. There has also been a renewed government commitment to further develop the Solomon Islands' oil palm and fishing industries; and like the timber industry, often in joint ventures with foreign companies. Nevertheless, rising imports and debts and sluggish exports raise the risk of inflation and will most likely require further borrowing and/or direct investment in the future to maintain the momentum of development that underpins the fragile political stability.