“Rebuilding Confidence
for Stability and Growth
for a
Peaceful, Prosperous Fiji”








STRATEGIC DEVELOPMENT PLAN: 2003 – 2005







November 2002

PARLIAMENTARY PAPER NO. 72 OF 2002



Foreword

The Government came to office on a pledge to build a better Fiji. “A Peaceful and Prosperous
Fiji” is Government’s shared vision and commitment to advancing the country socially and
economically. The aim is to forge a unified Fiji, to rebuild confidence for stability and growth.
This is essential to ensure that development serves the needs of this generation while conserving
resources for the future.

The Strategic Development Plan reflects the mandate given to Government by the people of Fiji.
This has been augmented through consultations with many interest groups, including non-
government organisations, provincial councils and advisory councils, unions, the business
community and other sectors of civil society. Eleven taskforces, representing a wide cross
section of the community, were formed in 2000 to discuss and submit recommendations on key
economic and social issues. The Plan, which emerged from the work of these taskforces, was
discussed at the National Economic Summit on September 12 and 13, 2002. The holding of the
Summit, with delegates from every section of society, is an indication of Government’s belief in a
true participatory democracy, giving citizens the opportunity to directly contribute to public
policy.

Government is committed to promoting the welfare and interests of all, irrespective of their
ethnic, cultural and social background. We want to see the economy grow, so that all have a
chance to share from the increase in wealth. The Strategic Development Plan points the way for
us to achieve this. It will help us to create jobs and opportunities for up to 17,000 young job
seekers every year.

Special affirmative action programmes outlined in the Plan are designed to assist those who are
among the poorest and most disadvantaged. These programmes comply with the Constitution
and embrace all ethnic communities in Fiji. Our initiatives to reduce the economic gap between
the indigenous Fijians and other communities are fundamental to laying the foundation for a
strong nation. When we are able to secure basic economic rights for all and a fairer division of
wealth, Fiji will be a peaceful and prosperous country. The Plan also takes into account the urgent
need to devote more of Fiji’s resources to rural areas, where 54 per cent of the population live.
The rural population generally lacks access to infrastructure and services normally available in
urban areas. We intend to ensure that rural communities have more job and income
opportunities, better roads and water supplies, more electricity and improved schools and health
facilities.

Fiji has had many challenges since Independence over 30 years ago. We have made some
progress and rank well compared to other developing countries. The Strategic Development Plan
is the key to a new future. It is a platform for the people and the Government to stand together
and create a society where peace, stability and the rule of law prevail, and where there are fair
and equitable development opportunities for everyone

I offer my sincere thanks to all those citizens who have given their time and expertise so willingly
in putting their ideas together for inclusion in the Plan.

May God Bless Fiji and all its citizens.








TABLE OF CONTENTS

Foreword
Table of Contents
Abbreviations


Chapter 1: Vision, Mission and Guiding Principles
Chapter 2: Review of Social and Economic Development
Chapter 3: Medium Term Strategy: Rebuilding Confidence for Stability and

Growth
Chapter 4: Macroeconomic Management
Chapter 5: Key Cross Sectoral Issues
5.1: Social Justice and Affirmative Action
5.2: Rural and Outer Island Development
5.3: Poverty Alleviation
5.4: Law and Order
5.5: Employment and the Labour Market
5.6: Land Resource Development and Management
5.7: Environment
5.8: Small and Micro-Enterprises
5.9: Housing and Urban Development
5.10: Reform of State Institutions
5.11: Foreign Affairs and External Trade

Chapter 6: Social and Community Development

6.1: Health

6.2: Education and Training

6.3: Gender and Development

6.4: Youth and Protection of Children

6.5: Culture and Heritage

6.6: Sports Development

6.7: Disaster Mitigation and Management


Chapter 7: Economic Development Sectors

7.1: Sugar

7.2: Non-sugar Crops and Livestock

7.3: Forestry
7.4: Marine Resources

7.5: Tourism

7.6: Manufacturing and Commerce

7.7: Mineral and Groundwater Resources

7.8: Financial Services

7.9: Information and Communication Technology Services

7.10: Transport

7.11: Energy

7.12: Water and Sewerage

Appendix









ABBREVIATIONS
ACP

Africa, the Caribbean and the Pacific
ALTA
Agricultural Landlord and Tenant Act
ASA

Air Services Agreement
BOS

Bureau of Statistics
BTA

Bilateral Trade Agreement
CAAFI
Civil Aviation Authority of the Fiji Islands
CCC

Coordinating Committee on Children
CEDAW
Convention on the Elimination of Discrimination Against Women
CHRIS
Computerised Human Resource Information System
CLAG
Combined Law Agency Group
COIFS
Committee of Inquiry into Fiji’s Financial System
COLA
Cost of Living Adjustment
CRC

Convention on the Rights of the Child
EEO

Equal Employment Opportunities
EEZ

Exclusive Economic Zone
EU

European Union
FAB

Fijian Affairs Board
FDB

Fiji Development Bank
FEA

Fiji Electricity Authority
FHCL
Fiji Hardwood Corporation Limited
FIEC

Fiji Islands Education Commission
FJC

Fiji Junior Certificate
FNPF

Fiji National Provident Fund
FSC

Fiji Sugar Corporation
FSFE

Fiji Seventh Form Examination
FSLCE
Fiji School Leaving Certificate Examination
FTIB

Fiji Trade and Investment Bureau
FVB

Fiji Visitors Bureau
GCC

Great Council of Chiefs
GDP

Gross Domestic Product
HART
Housing Assistance Relief Trust
HDR

Human Development Report
HRD

Human Resource Development
ICT

Information and Communications Technology
IHRDPEP
Integrated Human Resource Development Programme for Employment Promotion
ILO

International Labour Organisation
IMF

International Monetary Fund
LTA

Land Transport Authority
MDGs
Millennium Development Goals
MPC

Macro -economic Policy Committee
MTC

Macro -economic Technical Committee
NCSMED
National Centre for Small and Micro-Enterprise Development Committee
NES

National Economic Summit
NGO

Non-Government Organisation
NLTA
Native Land Trust Act
NLTB
Native Land Trust Board
PACER
Pacific Agreement on Closer Economic Relations
PAFCO
Pacific Fishing Company Limited
PICTA
Pacific Island Countries Trade Agreement
PRB

Public Rental Board
RBF

Reserve Bank of Fiji
RFMF
Republic of Fiji Military Forces
SME

Small and Micro-Enterprise
SPARTECA
South Pacific Regional Trade and Economic Cooperation Agreement
TCF

Textile, Clothing and Footwear
TFF/TFZ
Tax Free Factory/Tax Free Zone
UNDP
United Nations Development Programme
UNESCO
United Nations Education, Scientific and Cultural Organisation
WPA

Women’s Plan of Action





Chapter 1: Vision, Mission and Guiding Principles
Introduction

This Strategic Plan for the development of Fiji is the culmination of consultations with a wide
range of people in the private sector, non-government organisations and Government. The
Plan is intended to guide Government decision-making and budget preparation over the next
three years.

The Vision that drives the Plan is described in this chapter together with the Mission and
Guiding Principles that Government will follow in implementing policies. The Vision is a
statement of how Government would like to see Fiji in the future. The Mission and Guiding
Principles summarise the approach and philosophy that Government will take in designing
and implementing policies to achieve the Vision.

The mix of policies needed to steer us towards that Vision is dependent on the current
political, economic and social situation and trends. The second chapter highlights the current
development challenges that the country faces.

Government’s Medium Term Strategy is outlined in the third chapter. The strategy, which
can be summarised as Rebuilding Confidence for Stability and Growth, identifies the
Strategic Priorities that Government must concentrate on during the next three years. The
Strategic Priorities are the mix of policies that are needed to overcome the identified
development challenges. Effective implementation of these Strategic Priorities will put us on
a path to reach our Vision.

The remaining chapters of the Plan outline sector policies and policies on major cross-sector
issues such as poverty and affirmative action. These chapters describe the detailed policies
that will be used to guide sector stakeholders. The policies are consistent with the Strategic
Priorities in the Medium Term Strategy.

Vision: “A peaceful, prosperous Fiji”

The objective of the Plan is to identify and implement policies to take us forward to our
vision of a peaceful and prosperous Fiji. We believe that this vision is one that can be shared
by all citizens of Fiji.

Peace, Unity and multi-racial harmony

Our country has been through a period of instability and uncertainty, conflict, confrontation
and divisiveness. This has brought into focus the need to restore stability and to allow people
to go about their daily lives with a feeling of peace and security.

Achieving peace and security in our multi-racial country is a long-term commitment that
must be vigorously pursued through building understanding, as well as through recognising
and appreciating the different communities’ contribution in nation building.

But peace can only come about when the indigenous communities feel that their fundamental
interests are protected and that they do not feel “left out” of national development.
Affirmative action is therefore an essential ingredient for building peace and security.




But affirmative action is required not only for the indigenous communities, but for all those
who are disadvantaged in some way. This includes ensuring that women have the full
protection of the law as well as the opportunity to be fully involved in the process of
development.

The guarantee of fundamental rights and freedoms for every citizen of Fiji and their equal
protection under the law is also an essential part of our vision for a peaceful Fiji. A feeling of
personal security, and of group security, comes about when people have confidence that
breaches of rights and freedoms will be dealt with impartially and speedily.

Respect for the rights of others is a critical component of our freedoms guaranteed under the
Constitution. It is essential for peaceful existence in our multi-cultural society. Of particular
importance is the freedom for every citizen to practise the religion of his or her choice.

Prosperity for all

This Government firmly believes that it has a social responsibility to its citizens to put in
place policies that will achieve prosperity, especially for the poorest citizens. Prosperity, or
decent living standards, can only be achieved when the economy is growing.

It is only through sustained high economic growth that we can provide good jobs for our
young people, the prospect of rising living standards, and the provision of social services for
the young and old alike.

Prosperity also means making sure that all people share in the benefits of growth and the
opportunities it provides for higher living standards. This means paying particular attention
to the poorest members of our society. Government has a social responsibility to provide a
safety net as well as to make sure the poor are equipped with a good education and be in good
health to benefit from income earning opportunities.

Government firmly believes that a sound education is the key to ensuring that everyone has
the opportunity to share in prosperity.

Sharing the benefits of growth also means that we must protect the environment so that our
children may also enjoy the benefits of our natural resources.

Narrowing the income and opportunity gaps that exist in society will also contribute to a
sense of national identity and national cohesion. This is important in achieving stability and
peace in the country. Peace, stability and a feeling of security are also essential to achieve
sustained high economic growth. Growth requires investment and investors will invest when
they have confidence in the stability of the country.

Mission and Guiding Principles

Government’s Mission is to develop and implement the best political, social and economic
policies to advance the goals of Peace and Prosperity. To this end, Government has
consulted widely with the private sector and with non-government organisations to identify
the right mix of policies given the current social and economic situation in Fiji.




In pursuing its Mission, Government will abide by a number of Guiding Principles. These
are:
§ Good governance including the need for consistent and credible policies
§ Environmental sustainability
§ Respect for the Vanua and the cultures and traditions of the indigenous Fijians and
Rotumans
§ Respect for the cultures and traditions of other communities in Fiji
§ Recognition of the paramountcy of indigenous Fijian and Rotuman interests as
proclaimed in the Constitution
§ Respect for legal authority and law and order
§ Respect for human and group rights
§ Honesty in public life and general standards of conduct which reflect our fundamental
beliefs

International Commitments
Fiji is part of the global community and has made commitments to global bodies such as the
United Nations, the World Trade Organisation and the European Union as well as to regional
bodies such as the Pacific Islands Forum. Government will pursue these commitments in the
interest of Fiji and its citizens. Of particular importance is the commitment of Government to
the United Nations Millennium Declaration that was adopted by the UN General Assembly in
2000. The Declaration establishes eight goals to which the international community will
commit its resources. The Millennium Development Goals are:
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Develop a Global Partnership for Development

Government is committed to achieving these Goals and gives assurance that the policies in
this Plan are consistent with the Millennium Development Goals (MDGs) as well as the Plan
of Implementation on Sustainable Development adopted in Johannesburg in 2002. Targets
and Indicators for the achievement of the MDGs, which have been developed by the various
UN agencies, the World Bank, the International Monetary Fund (IMF), and the Organisation
for Economic Cooperation and Development (OECD), are contained in the Appendix.

Consistent and credible Policies
Government believes that consistent and credible policies that are vigorously implemented
are essential for the successful achievement of the Vision. Credible policies are ones that are
well thought out, contribute effectively to overcoming social and economic problems, and are
widely supported.

The following chart shows how Government’s policies and plans are linked back to the
Vision of a Peaceful and Prosperous Fiji. The Vision is at the top and represents the long-



term goal of all Government policies. Moving down the “pyramid”, the focus changes to the
medium term (up to three years). This Strategic Plan covers the “planning pyramid” down to
the sector policy level. Below that level, indicated in the Policy Implementation box below
the pyramid, Ministries have their own sector plans and corporate plans to guide annual
budget allocations.

The Vision, Mission and Guiding Principles provide the long-term direction and the method
Government will adopt to move the country towards the Vision. The Review of social and
economic development progress pinpoints the main issues that Government needs to address
in the medium term. The Medium Term Strategy, which can be summarized as Rebuilding
Confidence for Stability and Growth, is a set of Strategic Priorities that Government needs to
address to steer the country forward to the Vision. Policies at a sector level, and policies for
critical cross-sector issues, then follow. These detailed policies are consistent with the
Strategic Priorities in the Medium Term
Strategy.


Vision:

Peace and
Prosperity




Mission and

Guiding

Principles:


Honesty,

good

governance






Review of social and economic

development progress.



Medium Term Strategy:


Rebuilding Confidence for Stability and

Growth


A set of Strategic Priorities, based on current political,

social and economic trends, that need to be implemented
over the Plan period to steer the country towards the

Vision.



Sector, and Cross-sector, policies
Detailed policies to guide sector stakeholders that are consistent with Strategic

Priorities in the Medium Term Strategy.


Policy Implementation

Annual Budget funds Government ministry programmes and NGO programmes. Government
Ministry corporate plans, consistent with sector policies above, guide Government’s decisions

on priorities for funding.



Chapter 2: Review of Social and Economic Development


This chapter reviews Fiji’s progress in social and economic development and highlights the
social and economic development challenges that need to be addressed to take the country
forward towards the Vision of “Peace and Prosperity”.

Social Development

The preservation of law and order is a pre-requisite for sustained socio-
Law and Order
economic development. Respect for law and order creates an environment
conducive for investment by ensuring the protection of rights to physical and intellectual
property, personal safety and security for all in society.

Political instability and insecurity have been features of Fiji’s recent history. The two coups
in 1987 and the one in May 2000 severely eroded public confidence and caused major
disruptions to the economy. Government took prompt action in 2000 to stabilise the economy
and return the country to normalcy. Government assistance was offered to affected businesses
via the rehabilitation packages through the Fiji Development Bank and financial assistance
was given to the Muaniweni refugees. To better co-ordinate law and order agencies activities,
a Combined Law Agency Group (CLAG) was established. Reinstatement of the abrogated
1997 Constitution and Fiji’s return to democratic government were major steps in restoring
public confidence.

In taking stock of the law and order situation in Fiji over the decade, reported crimes have
gradually declined. However, drugs, money laundering and prostitution, as well as sexual
offences against women and children have increased. But an increasing number of pending
cases (up by 27 percent from 1993 to 61,847 in 1998) has delayed justice for many.
Furthermore, according to a Fiji Prisons Department report, the prison population exceeds
capacity and the staff-prisoner ratio of 1:10 is well above the international standard of 1:4. A
challenge for Government is to find the right prescriptions to address the causes of crime,
which include unemployment, poverty, rural-urban drift, broken homes, substance abuse,
violent movies and videos and illegal immigrants. In addition, Government needs to
strengthen law and order institutions through the development of human resource skills to
improve crime detection.

There is broad consensus among governments and the international
Good Governance
community of the importance of good governance, public
accountability, and transparency of actions. These elements form a critical foundation for
sustainable growth and development. From the mid 1980s to 2000, Fiji’s economic growth
and progress is somewhat a reflection of governance in the country and the effects political
crises can have on a small nation. The recent coup led to Fiji being isolated by the
international community, the impact of which has been profound with an economic
contraction of 3.2 percent in 2000 with thousands losing their jobs and widespread social
distress.

Good governance requires the basic institutions of the State to execute their functions in line
with their constitutional provisions, and to be seen to be doing so. To this end, Government
has endeavoured to ensure the independence of the legislature and the judiciary in keeping
with the principle of the separation of powers. In addition Government has recognized the



Public Service Commission’s independence and its responsibility in executing its functions
impartially and transparently. Government has committed to early implementation of the laws
required under the Constitution to give effect to the Leader’s Code of Conduct; has
strengthened the Auditor General’s office (to keep a check on use of public funds); has tabled
a Freedom of Information Bill in Parliament (public access to official documents of
Government and its agencies); and established clearer rules and regulations to limit the
influence of special vested interests.

Based on the
Quality of life
FJD$
Real GDP per Capita- 2001 Prices
UNDP’s Human
Development Index, Fiji ranks
5000
favourably with countries in the
Medium Human Development
4000
category and has performed well
above those in the Low Human
Development category. (See figure
3000
2.1).

2000
Nonetheless, since UNDP began
85
87
89
91
93
95
97
99
01
its reporting, Fiji’s Human Source: Human Development ReportGDP per Capita

25-yr average
Development Index (HDI) ranking
(the higher the number the lower the performance) has worsened from 44th in 1995 to 72nd in
2000.

However, health and education indicators compare favourably with the average for countries
classified under Medium Human Development. In 2000 Life Expectancy at Birth for Fiji
stood at 69 years compared to 67 years for countries under this category. Adult Literacy Rate
stood at “93 percent of age 15 and above” compared to the average of 78.9 percent for
countries under this category.

By international standards, it is generally accepted that any person whose
Poverty levels
income is less than US$1 a day is regarded as poor.1 According to the
1996 Fiji Poverty Report, whilst the bottom 10 percent of Fiji’s population received less than
2 per cent of total income, the top 10 percent group, received 35 percent. At the same time,
the percentage of Fiji’s households living below the poverty line has increased from 15
percent in 1983 to 25.5 percent in 1996.

Both Government and NGOs undertake poverty alleviation programs. Recent indications are
that poverty has increased significantly over the last five years, particularly after May 2000
and is prevalent across all sections of the community. The increasing trend is related to the
weakening of traditional family support system, limited employment opportunities,
inadequate capacity of the poor to take advantage of these opportunities, weak coordination
mechanisms, inadequate safety nets and a paucity of poverty statistics. More and more
households are experiencing difficulties meeting their basic needs including education costs,
health and mortgage bills.

As a response to this situation, Government has increased its assistance towards Poverty
Alleviation in areas including upgrading of squatter settlements, income-generating activities
via the Poverty Alleviation grant to the Department of Social Welfare, the Micro-finance loan

1 Resolution adopted by the General Assembly [55/2 United Nations Millennium Declaration]



scheme, and the Family Assistance Allowance. Government has also funded a Household
Income and Expenditure Survey (HIES) to overcome the lack of information on poverty. The
vicious cycle of poverty can easily be inherited by subsequent generations. Breaking that
cycle is a challenge for Government.

The improvement of people’s health is an integral part of the socio-
Health situation
economic development of the country. The quality of life in Fiji, as
measured by partial health indicators, compares favourably with other neighbouring countries
in the region. Survival indicators such as infant, child and maternal mortality rates and life
expectancy rates have shown some improvement in the period 1985 to 2000. Life Expectancy
at Birth for Fiji increased by 2 years from 67 years in 1986 to 69 years in 2000.

Leading global health crises and challenges have not excluded Fiji. Ministry of Health
statistics show that confirmed HIV/AIDS cases reached 104 in 2002. A greater portion of the
cases occurred within the age range of 20 to 29 years. Changing lifestyles have also led to
increased incidences of heart and respiratory diseases, diabetes, high blood pressure and
cancer.

Fiji’s doctor-patient ratio worsened from 3,234 in 1990 to 4,029 in 1999. The nurse-patient
ratio also worsened from 625 in 1990 to 692 in 1999. These ratios are expected to have
worsened after the May 2000 political crisis, with continuing emigration of health
professionals with 72 medical, dental, veterinary and related workers leaving between
January and September 2002.

A five-year Health Management Reform Project (1999-2003) is being implemented. This is
aimed at decentralising service administration and is giving more autonomy and
responsibility to divisional and sub-divisional hospitals.

In the medium term, the undertaking for Government will be an increased commitment to
funding health promotion and disease prevention and ensuring basic health services are
accessible and affordable to all.

Education and training is a priority in nation building as it is the medium for
Education
nurturing a well educated, highly skilled, motivated labour force, as well as
responsible citizens with high moral and ethical values. The 2002 UNDP
Human Development Report partial indicators for education show that Fiji has compared
favourably with other developing countries. Adult literacy has increased from 80 percent in
1985 to over 93 percent in 2000, which is above Middle Income countries average of 86
percent. Moreover, the Fiji Islands Education Commission/Panel 2000 (FIEC) review of
Fiji’s education system reported that there is almost universal access to primary education,
good progress in access to secondary education and virtual gender parity.

However, there remains a marked discrepancy between rural and urban education. Rural
schools, being generally supported by communities with low-income earners, have poorer
facilities and lack high calibre teachers contribute to the poor external exam results of rural
schools.

The education sector is faced by one of the highest emigration rates of professionals.
Migrating teachers numbered 236 in 2000, 367 in 2001 and 247 between January and



September 2002. This places significant demands on Fiji’s tertiary institutions in providing
the educated manpower to fill gaps in the labour market.

If Fiji is to become the hub of education excellence in the region and become competitive in
the global market, improvement in the quality and delivery of education at all levels
including higher education and vocational training is essential. A particular focus must be on
raising education standards in rural schools to be on a par with urban schools. Education also
needs to be aligned to technology developments and future skill demands such as Information
Technology.

Rural incomes and
Whilst Fiji’s socio-economic indicators from the UNDP Human
Development Report indicate Fiji performed relatively well compared
Living standards
to neighbouring countries in the region, these indicators are averages
for Fiji and mask the disparities between urban and rural areas. Despite an absolute decline in
rural population over the last decade, 54 percent of Fiji’s population still reside in rural areas.
Utility services, though available in rural areas, are at a higher cost, which adversely affects
rural incomes. There are marked discrepancies in the quality and level of health, education,
and infrastructure, including irregular shipping services, inadequate water supply, poor state
of rural roads, and lack of electricity and telecommunication links. These directly affect rural
business development and employment opportunities. This lack of access has increased the
divide between Fijians and other ethnic groups in business, education, skill development,
commerce and other lucrative activities, given that the majority of the Fijian population
reside in rural areas and outer islands.

There is also concern about the inequitable distribution of Government resources amongst the
rural and urban community, with budget allocations for Sub divisional Hospitals and Health
Centres averaging around 28 to 29 percent of the total Health Budget in recent years. The
challenge for Government is to make rural funding allocations based on a strategic plan with
proper mechanisms in place to ensure development in health, education, infrastructure and
employment creation is complementary and sustainable.

Of equal importance is the immediate need to resolve rural land resettlement issues as a result
of the expiry of agricultural land leases and the problem of smaller sugar cane farming units
becoming unviable in view of eroding sugar preferences. This will mean a decline in
productivity at farm level in the immediate future.

Even though disparities exist, rural areas remain the “hidden strength” of the economy due to
the abundance of traditional food crops in Fiji. Whilst there is enormous potential, there are
also severe constraints, which include the unavailability of arable agriculture land,
inaccessibility to well-functioning markets, unavailability of credit and infrastructure, poor
dissemination of research to farmers, and high vulnerability to international competition.

The challenge for Government is in implementing comprehensive agriculture sector reforms
to stimulate agricultural production through infrastructure development and to encourage
commercialisation of a range of agriculture commodities for export.

Inclusiveness of
The actual and perceived social and economic disparity between
disadvantaged groups
indigenous communities and other communities has been a cause
into the development
for concern. Past governments have introduced special measures
process
to assist indigenous Fijians succeed in business and commerce.



A key goal of Government is to address this need through affirmative action for Fijians and
Rotumans as well as other disadvantaged communities. According to the 1996 Census
Report, the rural population was comprised of 30 percent indigenous Fijians and Rotumans
and 23 percent of Indo-Fijians. Despite Fijians being landowners, many live in informal
housing or employer provided housing. They also had an average weekly household income
that was 36 percent below that of Others, 20.3 percent lower than Indo-Fijians and 13 percent
lower than the national average (1996 Census). Areas that will prominently contribute to their
prosperity lie in the development of infrastructure in rural and island communities, access to
and improvement of skills in business, education, and better health services. The Social
Justice Act of 2001, which legislates 29 programs of affirmative action, includes some of
these. Government recognises that any help afforded to indigenous Fijians and Rotumans can
only materialise over a period of time, therefore a twenty-year Development Plan (2001-
2020) for the enhancement of participation of Indigenous Fijians and Rotumans has been
prepared.

The advancement of women’s interests and the achievement of Gender Equality will require
women’s capacities and potential to be fully realised. Fiji’s ranking compared to the other
161 countries listed in the 2002 UNDP Human Development Report indicated that there is
still some degree of gender inequality in Fiji. This is also supported by Fiji’s low ranking in
the gender empowerment measure (GEM)2 that assesses women and men’s active
participation in economic and political life. Achievement of gender equality rests in
Government fulfilling its five commitments for women’s advancement made at the United
Nations Fourth World Conference for Women that was held in Beijing in 1995, which forms
the basis of the Women’s Plan of Action (WPA).

The rising incidence of poverty, single-parent households and divorce has resulted in children
becoming more vulnerable to neglect and abuse. The family environment and values are
changing rapidly and more parents, due to busy work lives and social commitments, are
unable to spend quality time with family and children. The cost to the families is foregone
family bonding and a lack of good family values. The family environment where love, caring,
sharing and other good values and virtues are practised is what children need most in their
development. Concerted efforts are needed to address child prostitution, adoption of children,
child labour, drug abuse, access to education, and street children. To this end, Government is
committed to the enactment of the Family Law Bill.

Disabled persons are another disadvantaged group in society. More disabled persons face the
risk of neglect from their families and society at large. Due to their disability, disabled
persons are marginalized from education and training, health, employment, housing,
communication, transportation, sports and recreational facilities and other essential services.
More targeted approaches are needed to assist the disadvantaged to have greater involvement
in the economy to be able to reap the benefits of economic growth.

The decline in rural population has led to an unsustainable high
Managing the rate of
rate of urban migration at 2.6 percent per annum between 1986 and
urban population
1996. The indigenous community has had by far the highest rate of
growth
urban in-migration with a growth of 4 percent per year in the urban
Fijian population. This has been mainly driven by the perceived

2 A composite index using variables constructed explicitly to measure the relative empowerment of women and
men in economic participation, decision-making and power over economic resources.



prospects of jobs, limited income generating opportunities in the outer-islands, the need for
better access to medical facilities and treatment, the perception of better education
opportunities in urban areas and, to a certain extent, problems of land access and the
extension of urban boundaries. Rapid urbanization has increased the demand for affordable
housing, but this is being affected by the high cost of building materials and the lack of
affordable loan finance arrangements for lower income earners. The challenge for
Government in the medium term is to manage the causes of rural-urban drift, promote rural
development, attend to expiry of agricultural land leases and address urban social problems
such as poor housing, increased squatter population, poor sanitation, overcrowding, poor diet,
congestion, pollution, the emergence of a beggar population and crime.

For the first time in 40 years a manageable rate of population
Persistence of Skill
growth has been achieved (0.8 percent per annum over the
Shortages and Constraints
1986-96 period). The significant decline in population growth
to Job Growth
is attributed to emigration and a decline in fertility rates,
particularly amongst the ethnic Indian community. Following the political crisis in May 2000,
emigration has returned to the high levels experienced after the 1987 coup. These losses have
put heavy pressure on the country’s skill generating institutions as well as on Fiji’s ability to
meet normal growing demand for skilled workers. Growth in the formal sector is hampered
by shortages, particularly acute in managerial, professional, and skilled trade occupations.
The continuing serious loss of experienced workers in these occupations through emigration,
drains the country of the stock of critically required skills, both in the private and public
sectors, being more pronounced in the latter with education and health services deteriorating
due to the loss of doctors, nurses and teachers. The situation in the public sector is
exacerbated by the non-competitive salaries offered for such positions. The unemployment
rate was estimated to be 5.8 percent of the total labour force in 1996, but this is likely to have
risen substantially as a result of the high number of redundancies declared in 2000 and 2001.
The outlook for formal sector employment is not bright, especially with 17,000 job seekers
looking for work each year. Securing decent jobs for these job seekers, mainly school leavers,
is one of the major challenges of Government.

Fiji enjoys a tropical climate that allows for the production of a wide
Environmental
range of foods for both local consumption and exports and provides one
Vulnerability
of the basic attractions for the tourist industry, which to a large extent is
natural resource based. Around 30 percent of GDP3 and 70 percent of exports can be
attributed to natural resource activities (agriculture, forestry, fisheries and mining). Fiji’s
generally benign climate is, however, interposed by climatic extremes in the form of
hurricanes, cyclones, floods and droughts. These extremes have serious economic, social and
environmental consequences that require prudent macro economic management, proper land
use planning, and water and watershed management.

Fiji faces some serious environmental problems that are exacerbated by the ineffectiveness
with which they are being treated. Fiji is too small and vulnerable to ignore such problems
for any length of time. Particular problems include the degradation of land resources, climate
changes, increasing risk of flooding and inundation to coastal settlements, unsustainable
exploitation of marine resources, waste management problems, air and water pollution and
the social ills and environmental impact of urbanisation, which undermines people’s quality
of life.

3 GDP is short for Gross Domestic Product – a measure of the size of the economy.



Economic Development

Global Performance

World economic growth varied over the decade 1990 - 2000, with consistent upward growth
from 1993 to 1997, from 2.3 percent to 4.2 percent followed by a decline to 2.8 percent in
1998 due to the Asian Financial Crisis. The strongest growth was in 2000 of 4.7 percent.
Global economic and financial conditions worsened during 2001 with growing signs of
economic slowdown in major regions of the world. The slowdown was driven by a weaker
United States (US) economy, which was further worsened by the terrorist attacks of
September 11, 2001. This affected Japan, the Euro-region, Asian economies and Fiji’s major
trading partners, Australia and New Zealand. The International Monetary Fund (IMF)
estimated that World Gross Domestic Product (GDP) grew by around 2.2 percent in 2001,
down from a previous projection of 2.4 percent.

Global growth for 2002 is projected at 2.8 percent. The improved economic outlook is largely
driven by the US economy, which has recovered better than expected. Growth prospects for
Fiji’s trading partners in 2002 are positive with the IMF forecasting growth of 4.0 percent for
Australia, 3.0 percent for New Zealand, 2.2 percent for the United States and 0.9 percent for
the Euro area. Conversely the Japanese economy is expected to contract by 0.5 percent.

National Output

With the global economy as a backdrop, Fiji’s Real Gross Domestic Product (GDP) growth
for the period 1985 – 2001 averaged around 2.5 percent per annum, while real GDP per
capita grew by around 1.3 percent per annum. This rate of growth has been insufficiently
high to deliver the jobs needed, nor
Percent
sufficient to provide the social and 15
Figure 2.2: GDP Growth
economic infrastructure necessary
10
for development.
GDP

5
Growth
Volatility of Growth
Fiji has a small open economy,
0
dependent on a few exports, far
1985
1989
1993
1997
2001
-5
away from major markets in a
Source: BOS
Years
disaster prone region. This makes
-10
the Fiji economy highly vulnerable
to the impact of natural disasters
such as cyclones, as well as vulnerable to large swings in export prices. Political instability
has also caused “shocks” to the economy. This has caused growth to be highly volatile.

In the period 1985 – 2001, Fiji’s economic growth fluctuated erratically. The growth spikes,
visible in figure 2.2 were due to expansionary fiscal policy in 1986; devaluation after the
1987 coups and the subsequent expansion of the garment industry in 1989; strong growth in
1999 was due to devaluation of the Fiji dollar in January 1998 and its boost to exports, and
recovery in the sugar sector following the 1997/98 drought. The troughs were due to severe
cyclones in early January 1985, two coups in 1987, Cyclone Kina in 1992/93, the Asian
Financial Crisis and El Nino effect in 1997 and more recently the coup in 2000. As a result of
the coups of 1987 and the coup of 2000, the period after 1987 was characterised by a marked
downturn in investment with economic growth generally spurred by higher consumer
spending, compared to the pre-1987 period where economic growth was investment-led. The



contraction of 3.2 percent in the economy in 2000 was broad-based and was underpinned by
weak demand in all sectors of the economy, with tourism, garment and construction sectors
worst affected by the impact of the crisis. Recovery was similarly broad based with growth at
4.3 percent in 2001.

FJD$
Real GDP per Capita- 2001 Prices
Fiji’s real GDP per capita has been
around similar levels for the period
5000
1985 - 2001. At 2001 prices, real
GDP per capita stood at
4000
FJD$3,033 in 1985 and FJD$4,106
in 2001. The spikes and dips are
3000
reflective of the same reasons
highlighted for growth with
declines mainly attributed to the
2000
coups of 1987 and 2000.
85
87
89
91
93
95
97
99
01

Source: BOS
GDP per Capita
25-yr average
Structure of the Economy

Fiji is still an agriculture-
Fig 2.4: Structure of Fiji's Economy
based economy with
(%)
heavy reliance on a single
30
1986
2001
crop - sugar cane. A
significant change in the
20
structure of the economy
during the 1990s
10
coincided with a shift in
economic policy from
0
import substitution to
other
export promotion. This
fishing
agriculture,
forestry and
retail trade
finance and
insurance
saw manufacturing
wholesale and
community and
social services
manufacturing
transport and
communication
Source: BOS
sector’s share of GDP
grow in the late 1980s, while the share of agriculture, forestry and fisheries contracted. The
contribution of the mining sector and the services sector (comprising largely of government
activities) also increased relative to GDP. The garment and sugar industries have been the
main contributors to growth in the manufacturing sector whilst tourism was the main
contributor in the Wholesale and Retail sector.

Prospects for the sugar industry remain centred on the ability of stakeholders to find solutions
to problems relating to the expiry of ALTA land leases, poor quality of cane, mill
inefficiencies and inadequate transportation access to mills. Sustainability of this industry is
highly dependent on reforms.

The May 2000 crisis resulted in tourism visitor arrival levels plummeting from a record high
of 409,000 in 1999, to a low of 249,000. However, the industry has recovered strongly with
visitor arrivals recorded at 348,000 for 2001 and expected arrivals for 2002 at 393,000. Major
constraints associated with the sector include political instability, shortage of upmarket
accommodation in relatively busy periods, problems related to land issues, airline capacity,
recession in major source markets, the pollution and degradation of our natural environment
and development and training to improve workers’ skills, particularly resource owners
interested in operating ecotourism sites.




The challenge for the garment industry is in the erosion of preferences and a shift from focus
on production capacity to niche marketing and quality.

Consumption


Private consumption has increased
progressively from 1985 to 2000 as shown
Figure 2.5: Consumption
in Figure 2.5. Over the 16-year period
2600
100%
reviewed, consumption has averaged
1800
around 75 percent of GDP. This period
60%
reflects growth, which had been generally
1000
spurred by higher consumer spending
($million)
20%
following the marked downturn in
200
investments after the 1987 coups. The
'85
'88
'91
'94
'97
'00
impact of the May 2000 political event
-600
-20%
was not as severe as first predicted, with
consumption
% of GDP
Source: BOS
private consumption boosted by the FNPF
hardship assistance scheme valued at $15 million to 25,000 of its members in August of the
same year. Consumer confidence has returned with strong GDP growth of 4.3 percent for
2001.

Investment

% 25
The domestic economy is currently
Figure 2.6: Investment as % of GDP
characterized by low investment
20
(currently 11.3 percent of GDP), which
15
is below the average of 20 percent for
Government
developing countries. There has been a
10
Private
persistent decline in investment as a
5
proportion of Gross Domestic Product
Statutory bodies
(GDP), from 20 percent in 1985 to a low
0
of 13.4 percent in 1988 following the
1985
1990
1995
2000(p)
1987 coups to 11.3 percent in 2000.
Source: BOS

This low level of investment is the main reason why economic growth has been sluggish and
erratic. Relative to other developing countries, Fiji’s investment ratio is low. Of particular
concern is the persistently low, and declining rate of private sector investment. As a
proportion of GDP, this has fallen from 13.6 percent in 1985 to 7.5 in 1988 and to 3.5 percent
in 2000.

The slow pace of investment in Fiji
$m
Figure 2.7: Foreign Direct Investment
is a reflection of depressed investor
250
8.0%
confidence. New projects coming
200
6.0%
on line in 2002 have mainly
150
4.0%
involved preparations for the 2003
100
South Pacific Games. Many
2.0%
50
domestic and foreign investment
0
0.0%
projects have been put on hold
-50
1985
1989
1993
1997
2001-2.0%
since May 2000.
Source: BOS
Foreign Direct Investment
% of GDP



Raising private sector investment requires improvements in the business environment and in
the provision of utility services by Government. The amount of “red tape” faced by
businesses is acknowledged as a serious impediment to investment. Also necessary to
improve the business environment is the ease of enforcement of private contracts, clear
bankruptcy procedures and robust accounting standards. The reliability and consistency of the
application of the law have been shown to be as important as the law itself. Domestic
investment will not be sufficient to generate the growth Fiji needs. It is therefore imperative
to attract foreign, as well as domestic investment. This poses serious challenges for Fiji on
how future growth will be financed once domestic capacity is fully utilised. However, foreign
direct investment has been persistently low between 1985 and 2002, averaging only 3 percent
of GDP per annum.

Fiji has many attractions for foreign investors. These include preferential market access to
Australia, New Zealand, European and other markets, easy repatriation of capital and profits,
a well balanced package of financial and other incentives and good air and sea links with
overseas markets to name a few. However, both foreign and domestic investors are hampered
by over bureaucratic procedures and a lack of support in facilitating the investment process.

Trade

The economic policy shift from import substitution to export promotion stimulated the
growth of Fiji’s exports and imports. The large exchange rate devaluations in response to the
crisis of 1987 and the subsequent economic revival provided a solid platform to launch a new
policy framework. Fiji embraced a plan of action involving market friendly policies widely
accepted as economically sensible, albeit politically difficult to implement.

Exports
Fiji’s main exports have been
generally on an upward trend except
Figure 2.8: Total Exports
1600
for sugar, which dipped by $198
million in 1997. (See figure 2.8).
1200
Whilst sugar was the main export in
800
much of the 1980s and early 1990s,
$ million
garments has emerged as the leading
400
export-earner since 1997, accounting
0
for an average of 26 percent of total
1985
1989
1993
1997
2001
exports in the period 1997 to 2001.
Sugar
Gold
The success of the garment industry
Fish
Garments
Source: BOS
Total Export
in Fiji has been largely due to a
combination of factors such as the 1987 devaluations, Tax-Free Factory and Tax-Free Zone
schemes, special tax exemptions, preferential access to overseas markets and competitive
wage rates. However, with the erosion of preferential treatment under the South Pacific
Regional Trade and Economic Cooperation Agreement (SPARTECA) and the European
Union (EU), the challenge for Government will be to develop strategies to help keep the
industry viable. The way forward is to produce for niche markets, such as corporate suits and
women's wear, as these have been increasingly outsourced from the traditional manufacturers
in Asia, particularly China, who prefer to engage in the high volume market.

Sugar continues to be a major export commodity, accounting for around 21 percent of total
Exports in the period 1998-2001. However, the future of sugar exports and the sugar sector,



as a whole is uncertain. The current industry structure is not viable and a restructure is
essential to address the industry’s problems. These include poor mill performance, high
incidences of cane burning, poor cane transportation, low sugar quality and the gradual
reduction of preferential treatment. It is also critical that Government quickly resolves land
issues and puts in place a tenure system that is seen to benefit all stakeholders. Other
agricultural exports such as soft fruits and traditional root crops have grown rapidly.
However, a lack of infrastructure, especially in rural areas, is constraining future growth.

Mineral water has shown the potential to be one of the leading foreign exchange earners for
Fiji. In 2002, exports were estimated at $28.6 million, up from $1.1 million when first
exported in 1997. Currently, “Fiji Water” enjoys a commendable second largest market share
for imported bottled water in the US. The company is putting in place an additional $9
million in investment to boost production capacity in line with its plan for further expansion
in the US market and possible entry into targeted markets in Australasia and Europe.

Imports
Over the 1985-2001 period, imports
Figure 2.9: Total Imports
have been increasing at an average of
2000
8.6 percent per annum. Imports of
1600
consumption goods and mineral fuels
steadily increased (see figure 2.9).
1200
Imports of investment related goods
$ million 800
such as machinery and transport
equipment broadly followed changes
400
in GDP. Total imports recorded a
0
marginal decline of 1.3 percent in
1985
1989
1993
1997
2001
2000, which was largely due to
Food
Mineral fuels
declines in imports of machinery and
Source: BOS
Manufactured goods
Mach. & Transp. Equip.
capital goods, reflecting the loss of
Total
investor confidence after May 2000. This picked up in 2001 mainly due to Government’s
interventionist and expansionary fiscal policy and implementation of various capital projects.
This trend continued in 2002 as a result of higher government capital expenditure and
preparations for the 2003 South Pacific Games (SPG).

Balance of Payments

Fiji’s transactions with the rest of
the world are recorded in the
Figure 2.10: Balance of Payments 1985 - 2001
balance of payments account. The
300
external position remained strong
over the period 1985 to 2002 with
200
exceptions in 1987, 1989, 1993,
100
1994, 1997 and 2001 when the
balance of payments recorded
$m 0
deficits (see Figure 2.10). These
1985
1989
1993
1997
2001
-100
were a result of lower exports due
to the coups in 1987, adverse
-200
weather conditions such as
droughts and hurricanes, and the
-300
May 2000 crisis. Receipts from
Current Account
Capital Account
Overall Balance
Source: BOS



tourism, and transfers from EU on sugar, have helped cushion the trade deficits over the years
and contributed towards improving the current account position.
The capital account has been in surplus for most of the period 1985-2001, with the exception
of 1987, 1989, 1991, 1996 and 1997. These years have largely been influenced by the lease of
aircrafts and official external borrowings. The surpluses in the capital account over the period
reviewed have largely been due to increased private direct investments into the country.
Capital controls and tighter monetary policy implemented in 2000 by the Reserve Bank of
Fiji effectively curbed capital outflows, resulting in a surplus.

Fiscal Policies

Revenue
Figure 2.11: Revenue, Expenditure and Deficit
In nominal terms revenue
40%
collections have been increasing
over most of the past decade.
30%
However, relative to GDP, revenue
20%
performance is on a downward
trend, falling from 30 percent in
10%
1985 to an estimated 25 percent in
2002. The sale of government
0%
shares temporarily raised revenue
1985
1989
1993
1997
2001
in 1998.
S o u r c e : M O F
R e v .
E x p .
Deficit

The changes that have been made to the tax system since the late 1980s have included an
overhaul of the income tax system and the introduction of VAT. Under the 2002 budget,
corporate and personal taxes were reduced further from 34 percent to 32 percent. Other key
taxation measures implemented as part of the new investment package included exemption on
distributed dividends from any further withholding or income tax, the ending of the Tax Free
Factory/Tax Free Zone (TFF/TFZ) scheme, provision of tax free export income, 40 percent
investment allowance, 40 percent depreciation rate on computer equipment, extension of the
loss-carry-forward facility to 8 years from 6 years, extension of the depreciation provision for
buildings erected before 2001 for an additional 4 years to 2005, and removal of discretionary
provisions and reductions in tariffs. However, tax compliance remains a problem. Achieving
better compliance enables Government to keep tax rates to a minimum.

Expenditure
Government’s expenditure policy is driven by its dual role of redistributing wealth and of
developing the nation. Government spending can be categorised into operational and capital
expenditure. Operational expenditure largely deals with the administration of government, of
which the biggest component has been salaries and wages. This has averaged around 30
percent in the period under review and by 2001 was 49 percent of total operating expenditure.
This is mainly due to the size of the civil service and the increments in salary and wages.


Capital expenditure, on the other hand, creates assets for the country and therefore
contributes to economic growth. Government’s expenditure policy is to shift resources from
operating to capital expenditure to meet infrastructure needs of the people and the private
sector. From a capital component of Total Expenditure at 24 percent in 2002, Government
has targeted a medium term Operating/Capital ratio of 70:30 by 2005.




In the medium term fiscal transparency and a better focus on expenditure priorities will be
pursued through Government’s ongoing reform programs. This entails reforms to the civil
service, reforms to public enterprises and financial management reforms.

Deficit and Debt
During the period under review, Fiji has had fiscal deficits, except 1990 and 1998, when
surpluses of $7 million and $120.8 million were recorded. However, the widening deficit in
2000, 2001 and the 2002 Budget is a concern. Whilst it was necessary for Government to
adopt an expansionary stance following the 2000 crisis, this trend has to be reversed to keep
debt at sustainable levels. Relative to GDP, the current deficit level mirrors the deficit in the
period 1996-1997 when Government had to bail out the NBF to the tune of $229 million.

The increasingly high level of government debt is primarily due to persistent fiscal
imbalances. In 2001 the debt stock was approximately $1.7 billion, or 43.8 percent of GDP.
Internationally, the “rule of thumb” is that a debt level above 40 percent of GDP is
unsustainable, particularly in an economy that is not well diversified.

Monetary Aggregates

Achieving the dual objectives of stable lower levels of inflation and comfortable foreign
reserves is imperative to sound monetary policy management.

Foreign Reserves
Figure 2.12: Foreign Reserves
A comfortable level of foreign
1000
8
reserves had been maintained over
800
6
the decade. Prudent monetary policy
management, particularly during the
600
$m
4
events of 1987 and 2000, enabled
400
financial stability to be maintained.
Import Cover
200
2
As economic activity picks up,
imports are bound to rise. In tandem
0
0
with prudent monetary management,
1990
1994
1998
2002(e)
Levels
it is imperative that the export base
Imports Cover: Broad Measure
Source: RBF
Imports Cover: Narrow Measure
be expanded, and foreign
investments encouraged. Government’s commitment to a sound fiscal strategy is likely to
have a positive impact on foreign exchange reserves.

Inflation
Like most other countries, inflation in Fiji
accelerated in the mid-to-late 1970s as a
Fig 2.13: Inflation (Year on Year)
result of the oil price shocks, and then
12
declined sharply in the early 1980s. Unlike
10
many other countries during the second
8
half of the 1980s inflation in Fiji rose
6
Percent 4
sharply, largely due to the two
2
devaluations in 1987. Inflation resumed its
0
downward path in the early 1990s in
1986
1989
1992
1995
1998
2001 (e)
Year
concert with most other countries. In 1998,
Source: BOS
a 20-percent devaluation triggered a sharp
temporary increase in inflation, although it



fell sharply thereafter. With the exception of the exchange rate-related episodes in the late
1980s and 1998, this pattern of inflation closely resembles that documented in North
America, Western Europe and major Asian-Pacific economies over that period. The pattern is
also consistent with the evolution of Fiji’s major trading partners’ inflation over the period.
The close correspondence between domestic and foreign inflation points to the importance of
foreign factors (and the role of the pegged exchange rate arrangements) in underpinning Fiji’s
major inflationary and deflationary episodes.

Following the May 2000 crisis, prudent monetary and fiscal measures kept inflation low.
Notwithstanding the pick-up in growth, unemployment appears to have increased, reflecting
the continuing weakness of the sugar sector and the shakeout in the garment industry, putting
downward pressure on domestic sources of inflation. Low trading partner inflation as well as
softer international commodity prices have also helped in keeping inflation low.

Exchange Rate
A stable and appropriate exchange rate is essential for sustained growth and development.
Fiji is a small, open economy and for a small country, foreign inflation will be fully imported
in the long run under a regime of fixed exchange rates. In effect, a small country with a fixed
exchange rate has very little choice but to accommodate foreign shocks to prices. Fiji’s
pegged exchange rate regime provides stability for traders. Exporters and importers can plan
ahead with some confidence without the risk of regular, substantial swings in the exchange
rate.

The pegged exchange rate also helps to keep inflation low by linking inflation to that of Fiji’s
trading partners. Low inflation in Fiji’s trading partner countries, three of which explicitly
target inflation (Australia, New Zealand, the Euro-zone), continues to benefit Fiji through this
pegged exchange rate arrangement.

Exchange Controls
The Reserve Bank of Fiji has progressively relaxed exchange controls in the last 11 years in
line with a sequenced program of liberalization. The Reserve Bank of Fiji has further relaxed
exchange controls, since the temporary tightening immediately after the May 2000 event.
Relaxation will continue as conditions permit.

Interest Rates
There has been a declining trend in the level of interest rates over the decade, particularly in
the latter 5 years. More recently, interest rates have fallen further in response to the easing of
monetary conditions. To ensure Fiji remains competitive in international markets, rates of
interest (or the cost of capital) need to remain consistent with the goals of monetary policy,
that is, low inflation and a comfortable level of foreign reserves.

However, uncertainty and political instability remain the main reasons for low levels of
demand for credit and high credit risk assessments by banks. These factors, combined with
the accommodative monetary policy stance taken by the Reserve Bank, have resulted in high
levels of liquidity in the banking system. Low interest rates whilst good for investment have
been a disincentive to saving. The public’s increasing concern regarding bank fees and
charges and the wide margin between commercial banks’ deposit and lending rates which
have remained fairly constant despite fluctuations in average annual inflation over the past
number of years, requires a closer review by Government. Vigorous competition should help
narrow lending and deposit interest rate margins.




Labour Market & Productivity

Labour Market
Figure 2.14: Total Paid Employment
Only about one third of Fiji’s
labour force is engaged in formal
120,000
sector paid employment. Despite
100,000
fluctuations, paid employment
80,000
has gradually increased from
60,000
81,082 in 1985 to 114,100 in
40,000
20,000
1999. However, there has been a
0
declining trend since, with paid
1985
1988
1991
1994
1997
2000
employment in 2000 recorded at
Years
111,500.
Source: BOS

Job creation has not accelerated at a pace equal to or exceeding that of the growth in labour
supply and has certainly been insufficient to provide jobs for the 17,000 or so job seekers
looking for work each year4. Unemployment was estimated to be around 5.8 percent of the
total labour force in 1996. Unequivocally, the situation has worsened since the May 2000
crisis, with redundancies, as well as reduced incomes through shorter working hours.

Securing decent jobs for the estimated 17,000 job seekers is one of the major challenges for
Government. This requires high economic growth. It is important to note that growth in
output and hence employment, would have been higher if investment had remained at pre
1987 levels. Creating the right business environment for investment is clearly needed to
secure jobs for school leavers.

A major hindrance to job growth has been the inadequate functioning of the labour market.
Lack of information and wage rigidities exacerbate skill shortages. A web based
Computerised Human Resource Information System (CHRIS) to collate labour market
information will ensure that it is available to a wide audience. Greater involvement of the
private sector in the National Strategic Human Resources Plan should address major issues
confronting utilization and strengthening of human resources in Fiji in the short and medium
term.

There is also a need for employment placement centers where job seekers can have access to
job broadcasts and receive specific job interview training. A comprehensive accreditation
system of qualifications of trained manpower, a vacuum that hinders employers assessing the
capabilities of job seekers, as measured by local and international standards, is also needed.
In addition, institutional wage setting should be replaced with market-determined rates of
remuneration that are performance based and reflect the availability of skills.

The Reserve Bank’s quarterly surveys of Job Advertisements, a partial indicator of labour
market conditions, report significant rises in recruitment intentions, mainly underpinned by
firms in the community, social and personal services and wholesale/retail trade and hotels
sectors. Furthermore, the Reserve Bank/ Fiji Employers Federation Expectations quarterly
surveys show general optimism for employment prospects.


4 This includes 15,000 school leavers each year. See Appendix table for more details.



Productivity Based Wages
Fiji’s wage setting is based on “Cost of
%
Figure 2.15: Growth in Wages and Salaries
Living Adjustments” (COLA) and this
30
exerts inflationary pressure. Average
20
annual salary earnings have been on an
10
upward path at an average of 6.3
percent for the period 1990-1999 (see
0
figure 2.15). Daily mean wages have
-10 1985
1988
1991
1994
1997
increased from $12.00 in 1986 to
-20
$17.36. Declines in 1986 and 1998 are
Mean Annual Salary
attributed to a decline in wage rates in
Mean Daily Wage growth
the Agriculture, Manufacturing,
Source: BOS
Average Annual Inflation
Commerce and Services sector.

Government being the largest employer in the country with 32,202 employees in 2001
accounts for a large proportion of paid employment. The size of the public service pay
settlement, which is COLA-based, has a large impact on inflation because the private sector
has a tendency to base their pay increases on government COLA based pay settlements. This
induces further inflationary pressures. Under such circumstances, the cost of private sector
operations are transferred to consumers through nominal price increases, exerting further
pressure on inflation.

Enterprise bargaining, where wages are linked to performance, should be the way ahead.
Reforms to the labour market were designed to bring wages more closely in line with
productivity and to improve Fiji’s competitiveness. Some organizations in the private sector
have embraced performance based remuneration systems and have seen their workers’
productivity and income increase. This improves their quality of life and at the same time
promotes long-term economic growth, which in turn paves the way for further increases in
employment.

Non-productivity-related wage settlements in the public sector contribute to low levels of
productivity in Fiji. The challenge for government is the urgency required in the
implementation of public sector reforms including the new civil service Performance
Management System which links salary increments to performance.

Overall economic growth is constrained by low levels of productivity both in the formal and
informal sectors of the economy. It is critical that Government review current industrial
relations systems, labour standards, Wages Councils, productivity and performance based
remuneration systems, to meet current demands in providing an environment that promotes
flexibility, health and safety, competition, productivity, improved terms and conditions, and
enterprise bargaining.










Chapter 3: Medium Term Strategy

“Rebuilding Confidence for Stability and Growth to achieve
a Peaceful, Prosperous Fiji”
Strategic Priorities

This chapter outlines Government's Medium Term Strategy for steering the country forward
to the Vision of a peaceful and prosperous Fiji. Government’s strategy can be summarised as
“Rebuilding Confidence for Stability and Growth”.

The Strategy identifies the Strategic Priorities that must be addressed in the medium term.
The Strategic Priorities were selected after taking into consideration the current political,
social and economic situation of Fiji and the underlying causes of our poor social and
economic development performance as outlined in Chapter 2.

The Strategic Priorities are divided into 2 groups according to whether they contribute more
to Stability or to Growth.


Rebuilding confidence for Stability:
Rebuilding confidence for Growth:


Enhancing security and law and order.

Maintaining macro-economic stability.


Promoting national reconciliation and

Raising investment levels for jobs and
unity.
growth.


Alleviating poverty.

Reforming the public sector to reduce the


Strengthening good governance.
cost of doing business.


Reviewing the Constitution.

Rural and outer island development.


Resolving the agricultural land lease

Structural reforms to promote competition

issue.
and efficiency.


Implementing Affirmative Action.

Government believes that implementation of these Strategic Priorities will set the economy
on course to achieve average growth of 5 percent per year. At least 5 percent annual growth
is needed to provide sufficient jobs and income earning opportunities for the labour force,
and to provide the necessary resources to address poverty reduction, affirmative action and
other social programmes in the medium term.

Government measures to help rebuild confidence will boost growth in the short term. In the
medium term, sustained high growth of 5 percent per year can only be achieved by
undertaking reforms to improve efficiency in both the private and public sectors.
Policy Implementation

Many of the Strategic Priorities are mutually reinforcing. Security and law and order is just
as important in creating social stability as it is in creating confidence for investment. Rural
and outer island development serves to improve prosperity as well as to promote unity and
national identity.

Because the Strategic Priorities are dependent on each other, Government is placing a heavy
emphasis on policy implementation. The last section of this chapter outlines the monitoring
mechanism that Government will put in place to ensure the Strategic Priorities are
implemented in a timely manner.




Rebuilding confidence for Stability

"Restoring social and political stability"
The May 2000 political crisis has seriously eroded public confidence. Government has
implemented various measures to restore security and stability to the country. However, the
policy objectives in this Plan are intended to help build unity, national cohesion and a sense
of national purpose. It is a top priority of Government to ensure that all Fiji citizens can
exercise their fundamental rights and freedoms, and confidently participate in nation
building. All citizens of Fiji will be guaranteed their political and social rights through
various inter-linked and mutually supportive policies, strategies and programmes in this Plan.

Enhancing security and law and order

Both criminal and civil breaches of the law remain a major social challenge and the primary
cause of social and political tensions in Fiji. Criminal and civil offences against businesses
and properties have a negative impact on public confidence and society. Government will
guarantee the security of people to live in peace and the protection of their rights to physical
and intellectual properties. The promulgation of the Family Law Bill provides the basic
framework for building family unity and values. Government will also ensure the efficiency
and impartiality of the legal system in delivering justice and promoting national harmony and
trust. (See chapter 5.4 on Law and Order.)

Promoting national reconciliation and unity

The political crises of 1987 and 2000 have revealed a growing disunity and tension along
racial lines. Peace cannot be achieved in Fiji without the causes of inter and intra racial
divisions being amicably resolved. Reconciliation will take centre stage in Government’s
endeavour to achieve national unity. Indigenous Fijians, Indo Fijians, Rotumans, Chinese
and other minority groups must appreciate each other’s beliefs, religion and aspirations. An
important part of this process is to build extensive awareness on the culture, traditions and
customs of all communities. The Ministry of Education will be responsible for integrating
cultural studies into the education system. All children must be helped from an early age to
acquire a positive appreciation and understanding of Fiji’s different traditions and customs. (See
chapter 6.2 on Education and Training.)

The establishment of Advisory Councils is one of many steps taken by Government to
consult with minority groups and to foster national reconciliation and a peaceful community.
The rights of all individuals, communities and groups will be fully respected. The nation can
only be built with trust and equal participation. Government regards the family unit as the
focal point for rebuilding a solid national identity and national cohesion.

The Ministry of National Reconciliation has been established with the dedicated role of bringing
about national unity and the communities closer together.

Alleviating poverty

Development is less meaningful when the economically weak and underprivileged in society
are not benefiting from the process of wealth creation. When opportunities are increasing
and expanding, and these are spread and shared evenly throughout society, there are better
prospects for unity and nationhood.




A key Strategic Priority of this Plan is to stimulate opportunities for the poor of all
communities to participate and equally benefit from economic growth and development.
Government is committed to raising public investment to lift living standards, and improve
infrastructure and basic human needs. Inter-sectoral development programming,
coordination and investment in formal and informal education, health, agriculture and rural
development are essential to alleviate poverty. Government’s approach to poverty alleviation
is three-pronged: first, to provide income-earning opportunities for the poor; second, to
provide capacity building for the poor in order to take up income-earning opportunities; and
third, to provide a social safety net for those who cannot help themselves. (See chapter 5.3
on Poverty Alleviation). Government believes that this approach to poverty alleviation is
consistent with the United Nations Millennium Development Goal number one: “Eradicate
extreme poverty and hunger(see Appendix for a full list of these Goals and their associated
Targets and Indicators).

Strengthening good governance


The Legislature, Judiciary and Public Service have withstood the test of various disruptions
caused by political upheavals over the years. The independence and integrity of these
institutions is essential for rebuilding confidence. This Plan promotes capacity building
programmes on the role of the legislature, government policy-making system, role of review
institutions in monitoring financial procedures and practices, the role of local Government
and civil society. Skill levels of personnel involved in these institutions must be improved to
better perform their roles effectively and efficiently according to law and regulations.

Despite being dissolved twice because of armed interventions, Parliament remains a central
institution of Fiji. It has the support of the overwhelming majority of citizens as the focus of
political representation and lawmaking in Fiji. Parliament also plays a key role in overseeing
the activities of the government of the day. The Public Accounts Committee examines the
annual financial accounts of government and reports of the Auditor-General. The
establishment of the Parliamentary Sector Committees, as provided for in the Constitution,
has further strengthened the investigatory and monitoring role of Parliament. Seminars and
training for Members of Parliament will continue to assist them to effectively undertake their
constitutional role.

Government will place a high priority on the basic elements of good governance:
Accountability to the public; Participation of all sections of the community and
stakeholders in policy formulation and development; and Predictability and Transparency
in policy implementation. Government will also honour the Nation’s Constitutional
commitment on the rights of Fijians and Rotumans to governance under their current
administrative system. The Review of the Fijian Administration is based on the need to
ensure that public funds and manpower resources are administered transparently, and with
full accountability.

The Plan recognizes the need for reforms in the Public Service, with the Commission playing
its independent role under the Constitution. The Public Service Commission will act
impartially and transparently in managing the overall Public Service and carrying out
Government decisions efficiently. This Plan emphasizes the strengthening of accountability
in the management and use of public funds in compliance with laws and regulations. Release
of information on government programmes and services to citizens, Members of Parliament
and foreign governments will be timely and efficient. The free flow of information about
government and its operations serves also to increase accountability of leaders and



government institutions. To this end, Government will introduce a Freedom of Information
Bill in line with the 1997 Constitution.

Proper auditing will be provided to ensure the credibility of information provided by or
obtained from all ministries and departments. Achieving good governance means that
Government will adequately resource the Auditor General’s Office using internationally
recognized standards to effectively undertake its designated role to independently evaluate
and report on compliance with financial procedures and the broader performance of the
public service. Making sure that leaders are accountable will be achieved through the
implementation of the leaders’ Code of Conduct in the 1997 Constitution. (See chapter 5.10
on Reform of State Institutions.)

Reviewing the Constitution to achieve political stability

Political uncertainty has caused growing public pessimism over the impracticality of the
Nation’s Constitution. The Government supports a multi ethnic Cabinet. However, the
wholesale changes to political party policy platforms needed to comply with the
Constitutional requirements for a multi-party Cabinet would not result in sound and stable
Government. This Plan recognises the urgency to review the Constitution in line with
conventional democracy where the majority in Parliament forms the Government. The
review of Fiji’s Constitution is essential for achieving long lasting peace, mutual
understanding and stability. (See chapter 5.10 on Reform of State Institutions.)

Resolving the Agricultural Land Leases issue

Government will resolve the long-standing differences surrounding the agricultural land
leases. Land ownership and tenancy will once and for all be addressed by Government to
bring about public confidence and stability. The Native Land Trust Act is clear that Fijian
land can be leased only if owners agree that they do not need their parcel of land for use,
maintenance or support. Government will liaise closely with the Great Council of Chiefs and
NLTB to achieve a peaceful resolution on the land issue. An immediate goal is to build a
strong landowner-tenant relationship, and foster goodwill, determination and co-operation
among key stakeholders in the sugar industry. Land is an important asset in other natural
resource based industries, and land availability is an important determinant of economic
growth. Government will promote efficiency of lease issuance, security of tenancy and fair
rental returns to landowners. (See chapter 5.6 on Land Resource Development and
Management).

Implementing Affirmative Action

Narrowing the income and opportunity gap between the indigenous people and the rest of the
population is essential for creating stability and a sense of unity. It is an issue of basic economic
rights and the fairer division of wealth. Failure to introduce effective affirmative action would
lead increasingly to marginalisation of the indigenous community and their exclusion from a
number of economic sectors. Government is committed to the preservation of the special
identity and the safeguarding of the rightful position of the indigenous communities.

Government is also dedicated to supporting the poor and needy of all communities. Fiji should
be an inclusive society that has space for each citizen. The Affirmative Action for the
disadvantaged is legislated through the Social Justice Act of 2001 and covers 29 programmes.
(See chapter 5.1 on Social Justice and Affirmative Action.)





Rebuilding confidence for Growth

“Achieving a prosperous Fiji requires economic growth of at least 5 percent per year and
much higher levels of investment.”
Laisenia Qarase, Prime Minister

The economy has recovered well after the downturn caused by the events of May 2000.
Growth has returned to nearly all sectors except the sugar industry, which is beset by
structural problems. Government increased public spending on investment in 2002 to
stimulate growth and to help restore private sector confidence. However, sustained high
growth of around 5 percent per year in the medium term requires much higher levels of
productive investment from the private sector. Productive investment is investment that is
guided by market opportunities. This requires a stable macro-economic environment as well
as the ability to compete effectively in international markets. Structural reforms to promote
competition and efficiency in the private sector are necessary together with reforms in the
public sector to reduce the cost of doing business.

Macro-economic stability
A sound and stable macro-economic climate will create stability, investment, consumption
and improvements in overall living standards. Since the private sector is the main vehicle
through which economic progress is achieved, the essential role of macro-economic policy is
to create a favourable environment for private enterprise. Government’s medium term fiscal
and monetary management will support resource mobilization for private sector growth and
avoid excessive public sector borrowing, high inflation rates and debt service problems.
Government has supported an expansionary fiscal policy to stimulate economic activities in
2001 and 2002. Fiscal consolidation and cuts in low priority public sector spending, including
the “rightsizing” exercise will be pursued in the medium term. This is necessary because
overly expansionary fiscal policies, coupled with credit creation and foreign borrowing will
result in the deterioration of the external account, higher inflation and debt service problems.
(See chapter 4 on Macro-Economic Management.)

Raising investment levels
Stagnant investment levels are a decade long trend and a major constraint facing the
economy. Total investment relative to GDP stands currently at around 11 percent, compared
to 30 percent in the early 1980s. The aim is to raise both public and private sector
investment up to at least 25 percent of GDP. Government will encourage entrepreneurship
and the emergence of new ventures. Businesses succeed and make good profits both in serving
the domestic market and securing export sales. Profit fuels growth, provides a return for
shareholders, generally enhances the distribution of wealth, creates job security and prospects
for promotion and professional development.

Raising the level of investment is not enough to produce sustained high economic growth. For
this, investment must be productive - it must be based on exploiting profitable market
opportunities. As most opportunities that can provide sustained increases in sales are export
markets, Government will ensure that market conditions do not discriminate against investors
targeting export markets.

Government supports a non-discriminatory and internationally competitive incentive and tax
regime for private sector investment. Government believes that achieving its investment



target requires a substantial increase in foreign investment. Unnecessary red tape involved in
the investment process will be eradicated by restructuring, reviewing and establishing
automated criteria for government and local government to reach foreign investment
approvals. Unrealistic guidelines adopted, usually based on unnecessary discretion, prevent
the movement of capital and scarce skills between Fiji and the rest of the world. Those
institutions involved in the investment process will be restructured with the focus being on
having less bureaucratic and more transparent criteria.

In line with Government’s commitment to raise total investment in the economy, the
proportion of public investment relative to total government spending will be increased in
support of physical infrastructure for basic needs and private sector development.
Partnerships with the private sector would be secured through joint venture arrangements.
Government has announced the establishment of subsidies to the Fiji Development Bank to
assist in on-lending to the agriculture sector, and for the development of offshore fisheries
and eco-tourism. The Fiji Investment Corporation is a vehicle that Government has set up to
inject equity into viable investment projects. Potential areas include tourism, forestry,
fisheries and inter-island shipping. The Investment Incentive Scheme will be reviewed
annually with the aim of maintaining Fiji’s tax competitiveness. The Duty Suspension
Scheme has been adopted to facilitate export growth by enabling exporters to access duty
free-inputs. (See chapter 7.6 on Manufacturing and Commerce.)

Public sector reforms to reduce the cost of doing business
The size of the public sector is untenable and a major constraint to Fiji’s medium term
economic development. Personnel spending remain the largest component of government’s
costs and places a heavy burden on the tax paying public. Government concern is that
taxpayers must not be overburdened with the responsibility of financing a large Government.
Large Government inevitably means denying business opportunities for the private sector and
increasing the cost of doing business. Currently, approximately 32,202 established and
unestablished workers are employed in the civil service or 32 percent of total paid
employment. For a country that is small and highly vulnerable to internal and external
shocks, the current size of the public service needs to be reviewed in line with defined
outputs of each ministry and department.

Government’s public sector reforms stress the need to improve efficiency and customer
service; provide for the commercialisation and/or corporatisation of some government
departments; aim to raise public enterprise efficiency and performance; and seek to make
major improvements in the handling of government finances so that spending is targeted into
areas that produce efficient and quality public outputs and services. (See chapter 5.10 on
Reform of State Institutions.)

Rural and Outer Island development
One of the strategic priorities of Government is to promote rural development in support of
our rural population. Rural villages, rural settlements and outlying islands still have unequal
access to basic infrastructure and services (water, telecommunications, roads, shipping, air
services, electricity and finance). The development of opportunities in the rural areas by
tapping potential in all economic sectors (tourism, agriculture, forestry, fishery, mineral
resources, and manufacturing) depends on the availability of these services and infrastructure.

Food security, adequate shelter, a safe and reliable water supply, and good health are all
essential basic needs. The improvement of facilities such as schools and health centres are



important in raising the standard of living of the rural communities. Most important of all, is
for the rural people to improve their standard of living and quality of life through their own
efforts, and assisted through creating the opportunities to enable them to earn cash incomes
on a regular basis.

As a disadvantaged group, the rural and remote communities will be accorded affirmative
action in order to bring about needed improvements to their living standard. Coordination of
rural programmes offered by each Ministry is critical for the effective and efficient
management of resources for rural/regional development. Government will promote the
United Nations Millennium Development Goals to raise rural living standards and alleviate
rural poverty. (See chapter 5.2 on Rural and Outer Island Development.)

Structural reforms to promote competition and efficiency
Maintaining a high rate of economic growth requires not only higher investment but also the
ability to compete in international export markets. The Fiji economy must therefore become
much more competitive and efficient. Increasing globalisation and the erosion of trade
preferences (e.g. in sugar and garments) makes it more important for Fiji to continuously
increase market penetration in increasingly competitive markets.

To this end, Government will reduce protective tariffs below the current maximum rate in the
medium term in line with improvements in domestic economic conditions and according to
industry based circumstances. Tariff reductions for the Pacific Island Country Free Trade
Area (PICTA) will be pursued in line with the provisions of this agreement. (See chapter 5.11
on Foreign Affairs and External Trade.)

At the same time, with the aim of reducing business costs, Government will promote
competition and efficiency in the utilities sector (electricity, telecommunication, water and
sewerage, ports), and pursue public sector reforms to reduce the cost of other Government
services.

Monopolies, whether they are publicly or privately owned, tend to be inefficient and charge
prices higher than might prevail under more competitive conditions. To prevent any abuse of
monopoly power, regulatory authorities will be established under the Commerce Act to
regulate the behaviour of both public and private sector monopolies. Protection of consumer
interests and the promotion of consumer rights will also be pursued. (See chapter 7.6 on
Manufacturing and Commerce.)

Reform in the labour market is also important for creating a competitive domestic economy.
Commercial realities will form the basis of setting terms and conditions of employment. In
line with the principles of democracy and the International Labour Organization (ILO),
individual employees will have a choice to secure their employment conditions and contracts
directly with employers, or through the process of collective agreement and enterprise
bargaining.

A comprehensive review of the Industrial Relations systems and Labour Service Standards
will be undertaken. The aim is to provide an environment that promotes flexibility,
productivity, enterprise bargaining, the elimination of discrimination and the establishment of
a system of equal opportunity for all. This also includes a review of the Wages Council Act.




The review of industrial relations arrangements would also entail reduction of government
involvement in the industrial relations arena, establishing proper guidelines and machinery
independent of government involvement with the aim of delivering faster services in relation
to dispute resolution. (See chapter 5.5 on Employment and the Labour Market.)

Reforms will also be undertaken in the financial system. Government’s aim is to efficiently
mobilize financial resources into areas of higher economic and financial returns and to
support the sustainable growth in Fiji’s productive capacity. The restructure of Fiji’s
Superannuation industry is critical in achieving a competitive financial system. Prudential
supervision will also be guaranteed to ensure the stability of the financial system. (See
chapter 7.8 on Financial Services.)

Policy implementation
Government’s Medium Term Strategy places a special emphasis on policy implementation.
This is because timely and well co-ordinated implementation of the strategic priorities is
essential in order to quickly reap the benefits of stability and higher growth.

This Strategic Development Plan can be likened to a “Plan of Plans”. It outlines Strategic
Priorities and Sector policies and policies on major issues. These Strategic Priorities, and
more detailed sector policies, are then used by line ministries to develop their corporate plans.
These ministry corporate plans are then used as a guide to budget priorities.

Monitoring of policy implementation is undertaken in varying degrees of detail at officials
level and at Ministerial level. Cabinet, through the Cabinet Sub-committee on Investment
and the Cabinet Sub-committee on the Budget, will be monitoring the progress of the
implementation in the Strategic Priority areas assisted by the Ministry of Finance and
National Planning and Office of the Prime Minister.

Officials will co-ordinate policy implementation through the Development Sub
Committee5and regional development machinery.

The annual budget will be designed to provide resources to the Strategic Priorities. A 3 year
rolling Public Sector Investment Programme (PSIP) will be prepared to ensure that a pipeline
of sound government investment projects are programmed into the annual budget. These
Strategic Priorities will also be built into line ministries' corporate plans. All ministries
prepare corporate plans on an annual basis and these are used to ensure that budget resources
are directed at priorities.

Keeping the private sector engaged…
Government is committed to a partnership with the private sector. It is therefore keen to
involve the private sector, and all stakeholders of Fiji, in monitoring policy implementation.
Government will initiate discussions with the private sector and civil society on how best this
monitoring role may be carried out.

The private sector and civil society were consulted extensively during the preparation of this
Plan. Many representatives were involved in eleven taskforces especially set up to advise
Government on the appropriate policies for Fiji. Government would like to see this
involvement continue. The proposed monitoring role will ensure that both the private sector
and civil society stay engaged in our joint
development efforts

5 A co-ordinating committee of Permanent Secretaries.




Chapter 4: Macro-Economic Management

Introduction

This chapter outlines the thrust of Government’s management of macroeconomic policy in
the medium term (2003-2005). The strategy takes into account the fiscal and monetary policy
direction announced in the 2002 Budget.

Government will continue to ensure macroeconomic and financial stability as the foundation
for economic growth. This stability is to ensure an environment conducive to investment.
The main ingredients of such environment include, low budget deficits, manageable debt
levels, healthy foreign reserves, low inflation, competitive real exchange rates, competitive
cost structures and higher labour force productivity.

Government’s strategy to achieve medium term macroeconomic stability and favourable
investment climate is through prudent fiscal and monetary policies.

Fiscal Policy
The 2002 Budget was designed to temporarily provide a fiscal stimulus to help in the process
of restoring private sector confidence. In the medium term Government will place more
emphasis on prudent fiscal management. In taking this stance, Government will ensure
sustainable fiscal deficits and debt levels.

On the revenue side, Government will aim at strengthening revenue compliance, broadening
the revenue base and stimulating investment. On the expenditure side, Government will put
more emphasis on re-distributing resources to key areas that enhance economic growth,
whilst ensuring that the basic social services, such as health and education are adequately
provided for. Government will also place more emphasis on prudent financial management.

Debt policy will be targeted to effectively manage debt and associated risks, through
strengthening the debt management capacity by better integrating Government debt issuance
in the domestic debt market, capacity building in relevant agencies and setting clear debt and
risk management policies and strategies.

Monetary Policy
The Reserve Bank of Fiji (RBF) is mandated under the RBF Act to ensure the achievement of
monetary policy objectives. The twin objectives of monetary policy are to ensure low
inflation and an adequate level of foreign exchange reserves. These objectives will continue
to be pursued by the RBF in the medium-term.

Government will also ensure that interest rates are market-based and consistent with the goals
of monetary policy. On the exchange rate front, the RBF will ensure that stability is
maintained.

Also, the RBF will continue to further relax exchange controls, in line with a steady level of
reserves and Government’s financial sector reforms.








Policy Objectives
Key Performance Indicators
Inflation

To ensure a low & stable level of inflation.
§
2-3 percent per year on average over a 5-
To ensure productivity-based wage increases.
year period.
§
Productivity-based wage agreement
between Government and Unions.
Exchange rate and reserves

To ensure a stable exchange rate.
§
Exchange rate stability.
To maintain a comfortable level of reserves.
§
Reserves equivalent to 4-5 months of
To progressively relax exchange controls.
import cover.
§
Announcements of further exchange
control relaxations in annual budgets.
Interest rates

To ensure that interest rates are transparent
§
Interest rates consistent with low
and market based.
inflation and a comfortable level of
foreign reserves.
§
Interest rates spreads reduced.
§
Regular publication of RBF notes
interest rates.
Government Finances

Revenue:

To promote economic growth through
§
Reduce top corporate and income tax to
appropriate level of taxation.
30 percent by 2004.
No further VAT exemption.
§
Revenue to be no more than 25 percent
To broaden the revenue base and raise
of GDP by 2005.
sufficient revenue to meet Government’s

revenue target.
§
Tariffs rationalised to four bands.
To minimize the level of distortions.
§
Improved collections of tax arrears.
To strengthen tax compliance.
§
Government fees and charges indexed to
To promote the user-pay principle.
inflation.
Expenditure:

To reduce government spending as a

proportion of GDP.
§
Increase expenditure target ratio of
To improve cost recovery measures.
infrastructure, health and education to
Ministerial expenditure not to exceed budget
total expenditure with corresponding
provisions.
cuts in other areas by 2005.
To focus on core activities of government.
§
Net expenditure to be not more than 28
To continue with the public enterprise
percent of GDP by 2005.
reform.

To target expenditure to key areas that have a

positive impact on the economy or provide

essential services.

To increase the proportion of capital
§
Capital/Operating Expenditure mix of
expenditure in the budget.
30/70 by 2005.
Government deficit
§
4 percent of GDP in 2003 and less than 3
To keep the deficit at sustainable levels.
percent of GDP by 2005.
Debt

To reduce debt-to-GDP ratio.
§
Less than 44 percent of GDP in 2003
To borrow locally wherever feasible (to
and less than 40 percent by 2005.
utilise the surplus cash liquidity).

To strengthen debt management.
§
A fully-fledged Debt Unit established by
To channel proceeds from the sale of
2004.
government assets to reduce public debt.




Chapter 5: Key Cross Sectoral Issues


5.1: Social Justice and Affirmative Action Goal: Equitable participation of

all in socio-economic development
Social justice and affirmative action (SJAA)
programmes, defined as preferential policies and programmes towards designated groups, are
necessary to ensure equitable participation of all in the socio-economic development of the
country. Although not in name, government has been implementing SJAA programmes since
Independence to assist the disadvantaged sections of the community, including the poor,
Indigenous Fijians and Rotumans, women, unemployed youth, children and the disabled.

The Social Justice Act of 2001 legislates 29 programmes of affirmative action in four areas,
namely: (a) education and training; (b) land and housing; (c) participation in commerce; and
(d) participation in all levels and branches of the service of the state (see Table 6 in
Appendix). Of the 29 programmes, 13 relate to education and training, 3 to land, 10 to
participation in commerce, 2 to housing and 1 to provision of a social safety net. In terms of
beneficiaries, 17 are for all communities, 10 exclusively for Indigenous Fijians and
Rotumans, and 2 exclusively for other communities. Most of the programmes are being
funded through the Government budget.

It is intended that the Social Justice Act together with the other programmes of government
and civil society will assist in raising the living standards of disadvantaged communities.
Poverty eradication will be pursued actively through capacity building, ensuring access to
resources, income–generating activities and the provision of a social safety net to those in a
severe state of deprivation.

A twenty-year Development Plan (2001-2020) for the enhancement of participation of
Indigenous Fijians and Rotumans has been prepared. The Bose Levu Vakaturaga and the 14
Provincial Councils have agreed that the Plan be adopted for implementation. The plan is an
integrated and coherent framework aimed at enhancing the participation of Fijians and
Rotumans in the socio-economic development of Fiji. It focuses on eight broad priorities:
education; human resource development and utilization; commerce and finance; public
enterprises; health; resource based industries; tourism; and rural development.

Rural dwellers who are highly vulnerable because of remoteness from markets, the impact of
natural disasters, and the high cost of transportation and communication, will be assisted
through the provision of infrastructure and incentives to encourage income generating
activities, such as agro-based and cottage industries.

Lending and credit policies will be reviewed to ensure that women are not disadvantaged. In
addition, the affirmative action policy of increasing women’s membership on boards,
committees and councils will be continued.

Unemployed youth will continue to be supported through alternative education paths such as
vocational and technical training, as well as providing educational programmes on drug abuse
and sexually transmitted diseases. The protection of children’s rights and investment in their
development will be accorded high priority. Issues that need to be addressed include access to
basic social services, child prostitution, drug abuse, and child labour.

Disabled persons who are approximately 5 percent of our population will be assisted by
improving access to education. This involves providing infrastructure, equipment and
teachers for special education.





Policy Objectives
Key Performance Indicators
To reduce poverty.
§
Poverty reduced by 5 percent annually.
§
Increased number of successful micro-enterprises.
§
Increased participation of civil society in poverty
alleviation.
To improve Indigenous
§
Fijian Education Board set up to provide advice to
Fijian & Rotuman
the Minister for Education by 2003.
education and training.
§
Higher pass rates in Fiji School Leaving Certificate

(FSLC) and Fiji Seventh Form examination

(FSFE).

§
Centres of Excellence for sports, music, and
creative art established by 2004.
§
Fijian education curriculum developed from classes
1 – Form 7 by 2004.
To increase
§
Increased share of ownership of the corporate
participation of
market by indigenous Fijians.
Indigenous Fijians &
§
Increased share of licenses and permits held by
Rotumans in commerce
Indigenous Fijians.
and business.

To increase
§
Women’s access to micro-credit assistance
participation of women
improved by 50 percent by 2004.
in socio-economic
§
Access to formal credit through affirmative action
development.
programmes improved by 30 percent by 2004.
§
50 percent representation of women in Government
Boards, Committees, Tribunals, Councils, and
Commissions in 2005.
To increase
§
Youth employment increased.
employment
§
Training opportunities for youth increased by 5
opportunities for youth.
percent annually.

To ensure the
§
All children have access to 12 years of education.
protection and
§
Increased access to health services and nutritious
development of
meals for all children.
children.
§
Reduction in street kids, child prostitution and child
abuse.
To improve access to
§
A policy for disabled persons developed by 2003.
education for disabled
§
Increased enrolment in special schools.
persons.
§
More trained special education teachers.

To provide a social §
All poor incapable of working receive assistance.
safety net to those in a §
Increased number of families looking after their
severe state of
elderly family members.
deprivation.
To review the
§
Schedules reviewed by 2005.
schedules of the Social
Justice Act.










5.2: Rural and Outer Island Development
Goal: Equal opportunities for all

Rural areas and outer islands are home to the majority (54 percent) of Fiji’s population.
However, there has been an absolute decline in the rural and outer island population as rapid
urbanisation has taken place over the last thirty years. Despite this, Fiji’s key exporting and
service industries are rural based - agriculture, fisheries, forests, mining and tourism – and
these provide the greatest potential for future development and prosperity. In addition, the
rural sector is often described as Fiji’s “hidden strength” as it is the rural areas that provide
Fiji with a high degree of food security. The rural areas have expertise in growing traditional
food crops, which not only provides a secure source of food for the whole population, but
also provides an opportunity for income security as these traditional food crops now form the
basis of a successful export industry.

Access to most basic services is poorer in rural and maritime areas as compared to urban
areas. There are also disparities in services provided between different rural areas. Although
access to clean water, decent sanitation and electricity has improved over the years, there are
still many communities without these basic services. For example, some 1 in 5 rural dwellers
still do not have access to clean water. Government will continue to subsidise the
establishment of these services in rural areas through its rural electrification and rural water
supply schemes.

A lower level of service provision in some areas is explained by remoteness and the lack of
transportation services. Government currently subsidises both air services and shipping
services to the outer islands in recognition of these problems. Health and education services
in rural areas are also of generally lower quality than in urban areas. The new decentralised
management of health services is expected to improve rural service delivery. Education in
rural areas is recognised as a priority for government spending and a major project for
upgrading rural schools and facilities is envisaged. Better teachers in rural areas are also
needed to help raise rural pass rates in key external examinations.

The lack of access to these basic services constrains the development of rural businesses and
the commercialisation of agriculture. However, the lack of business advisory services, poor
rural banking services, and the lack of micro-finance facilities compound the difficulties of
operating a business in rural areas. A review of rural banking services has been undertaken
in 2002, and it is expected that the newly established National Centre for Small and Micro
Enterprise Development (NCSMED) will provide assistance for rural SMEs. A lack of
telecommunications access is also a constraint. Joint efforts between Government and
Telecom Fiji Limited are increasing the number of rural dwellers with access to phones.

Rural development has proven difficult to co-ordinate effectively because of the large number
of government agencies, NGOs and communities that are involved. A review of the regional
planning machinery is being conducted in 2002. This will cover the District and Divisional
Development Committee structure, the role of NGOs and the role of the Fijian
Administration. A separate review of the whole of the Fijian Administration is also being
undertaken.

Planning and co-ordinating future rural development initiatives will also be helped by the
formulation of Divisional and District Development Plans. Government will ensure that the
UN Millennium Development Goals are incorporated in these plans.






Policy Objectives
Key Performance Indicators
To ensure the
§ Master plan for 100 percent provision, on a participatory basis,
provision of
of potable piped water to rural areas prepared by 2004.
minimum and
§ 80 percent of rural population to have water seal toilets or
affordable basic
other sanitary waste disposal systems by 2005.
needs to the rural and
§ 300 additional villages and settlements having access to
outer island
electricity by 2005.
population.
§ Overhauling of 105 schemes installed under the old Rural
Electrification policy by 2005 (about 60 schemes per year).
§ Review of Rural Housing Unit and FNPF housing Scheme by
2004.
§ Houses built under Rural Housing Scheme increased.
§ Increased investment in rural access road maintenance.
§ Review of current subsidy scheme for outer island air services
by 2003.
§ Outer island franchise scheme comprehensively reviewed by
2003.
§ 2 outer island jetties upgraded per year.
§ Organisational structure for the management and maintenance
of outer island jetties reviewed by 2003.
§ Telecommunications access to at least 400 more unconnected
rural communities by 2005.
§ Health promotion activities integrated into rural and
community health programmes.
§ Higher proportion of rural students passing FSLCE and FSFE.
§ Rural schools and facilities upgraded.
§ Review of community contribution for infrastructure
development, water, electricity etc by 2004.
To ensure food and
§ Increase in number of persons employed in cash work
income security for
(including smallholder agriculture) and cottage industries.
rural and outer island
§ Risk Management and Environment Impact assessment
dwellers.
required for rural development projects.
§ Production of traditional food crops increased.
§ Rural banking survey recommendations evaluated and
implemented by 2004.
§ Micro-finance facilities, and business advisory services
(including marketing), available widely in rural areas by 2005.
§ Programme to promote food and income security effected by
2003.
§ Explore the potential of NATCO spearheading an improved
rural marketing network by 2003.
To strengthen the
§ Administrative areas and structures for rural development
effectiveness of
clearly demarcated by 2004.
service provision to
§ Divisional and District Development Plans formulated by
rural and outer island
2005.
areas.
§ Review of regional planning machinery (including the role of
national ministries/departments) to be implemented after
review of Fijian administration.
§ Review of Fijian Administration implemented by 2004.





5.3: Poverty Alleviation

Goal: Poverty reduced by 5 percent annually
Despite Government’s continuous
efforts to combat poverty, the proportion of households living in poverty has continued to
escalate, increasing from 15 percent in 1983 to 25 percent in 1996 according to the Fiji
Poverty Report. Furthermore, it is estimated that the proportion of households living in
poverty has further increased since the political and economic instabilities of May 2000.
Visible signs of rising poverty include increased numbers of street people such as beggars,
street kids, wheel barrow boys and prostitutes, and squatters in urban and peri-urban areas.

Government assistance towards poverty alleviation includes upgrading of squatter
settlements, farming assistance, remission of school fees, grants to NGOs, micro-finance
schemes and safety net programs for the destitute including the Family Assistance
Allowance. It is estimated that in 2002 Government expenditure on Poverty Alleviation is
$90.9 million.

The government recognizes the important role of NGOs in assisting those in poverty and is
developing an NGO Social Policy Framework to better co-ordinate and target assistance and
support. In addition, a Cabinet Subcommittee on Poverty Eradication has been established to
formulate a ‘National Policy and Implementation Framework on Poverty’. The Household
Income and Expenditure Survey, conducted in 2002, will provide valuable information to
guide Government policy. The scarcity of poverty related data is a major concern. Currently,
comprehensive statistics on poverty are available every ten years through the Population
Census or from occasional Household Income and Expenditure Surveys (HIES).

Poverty alleviation efforts are constrained by the lack of job opportunities and inadequate
capacity of the poor to take advantage of existing opportunities, which is attributed to the
slow growth of the economy and lack of necessary basic skills to take up available
opportunities. As a result of the weakening of the traditional support system, more people are
seeking welfare assistance, particularly the elderly. International experience shows that
merely increasing welfare payments to combat poverty serves to further weaken existing
support structures in the community.

Fiji is party to various international conventions such as the Millennium Development Goals,
Monterrey Consensus, and World Summit on Sustainable Development (WSSD), which
promote the eradication of extreme poverty as an overarching global goal to be achieved by
2015. Government will work in partnership with NGOs to achieve this objective and secure
assistance from Fiji’s development partners.

Poverty alleviation policies are part of government’s affirmative action and social justice
programmes. Government’s approach to poverty alleviation will be three-pronged: first, to
provide income-earning opportunities for the poor; second, to provide capacity building for
the poor in order to take up income generating opportunities; and third, to provide a social
safety net for those who cannot help themselves.










Policy Objectives
Key Performance Indicators
To ensure the provision
§
“National Policy and Implementation Framework on
of minimum and
Poverty” approved by 2003.
affordable basic needs to
§
Comprehensive Review of Family Assistance
all categories of the
Allowance and Poverty Alleviation Program completed
poor.
by 2003.
§
Upgrading of squatter settlement at Jittu Estate I and
Lakena II completed by 2005.
§
All children to receive 12 years of education by 2005.
To formalize and
§
NGO Social Policy Framework/MOU between
strengthen the
Department of Social Welfare and NGOs established by
government and civil
2003.
society partnership in
§
More regular consultations/biannual forums between
alleviating poverty.
Government and NGOs.

§
Increased participation of civil society in poverty
alleviation.
§
Certified Training Programs for community social
workers established by 2003.
To create earning
§
Increased micro-lending to the poor.
income opportunities for
§
A coordinated monitoring mechanism for micro-finance
the poor.
is established by 2003.
§
Comprehensive review of micro-finance programs
implemented by 2005.
To encourage traditional
§
All elderly have access to basic needs.
support mechanisms for
§
All poor incapable of working receive assistance.
the disadvantaged and
§
Tax incentive proposals for looking after elderly
provide adequate
parents/family members evaluated by 2003.
welfare support to the
§
Increased number of disadvantaged persons being
destitute.
supported by the community.
§
Increased private sector and community participation in
poverty alleviation.
To ensure the
§
Poverty Situation Report completed by 2003.
compilation and timely
§
Analysis of HIES results completed by 2004.
analysis of statistics on
§
The feasibility of 5-yearly HIES survey evaluated by
poverty.
2003.
§
Other data collection mechanisms explored, evaluated
and implemented.







5.4: Law and Order

Goal: Maintaining law and order and upholding the
The maintenance of public rule of law effectively and efficiently
order and the respect for rule of
law are crucial elements for peace and stability in the country. This is possible if
organizations involved observe the highest standards and work towards common goals. These
organisations include the two Houses of Parliament, Police Force, Military, Judiciary, Prison
Services, Human Rights Commission, Legal Aid, Immigration, Customs Services, Social
Welfare, DPP’s Office, Law Reform Commission and other civil and non-government
organizations, such as crime prevention committees, security companies, and other
stakeholders in law and order.

Fiji has made much progress in ensuring the maintenance of public order since May 2000. A
democratically elected government is in place, although a few constitutional cases are still
before the courts. Nevertheless, law and order in the country has returned to normal.

Reported crimes in Fiji have gradually declined within the last decade (see Appendix on
crime statistics for 1997-2001). Although there was a slight increase of reported crimes in
2000, the downward trend has resumed. However, drugs, money laundering and prostitution,
as well as sexual and violent offences against women and children have increased. The
general public’s support for community policing initiatives has also increased.

The Combined Law Agency Group (CLAG) was established to improve coordination
amongst law enforcement agencies. CLAG has been instrumental in the investigation of
people smuggling and drug trafficking cases. The policing of Fiji’s EEZ is an area of concern
as the Fiji Naval Division does not have adequate resources to properly police our maritime
borders.

The backlog of cases in the court system is being addressed through implementation of the
Beattie Report’s recommendations, which include the computerization of the DPP’s Office
and progress towards a National Prosecution Service. Problems in the Prisons Service include
prison overcrowding, low staff to prisoner ratio, and the lack of effective rehabilitation of
incarcerated offenders.

A review of the Republic of Fiji Military Force’s (RFMF) activities will include alternative
employment options for those troops that need to be redeployed following the end of Fiji’s
peacekeeping mission to Lebanon in late 2002.

The Fiji Human Rights Commission plays a key role in upholding the rule of law. The
Commission, in conjunction with the disciplined forces, is currently drafting a Human Rights
Handbook specifically for the disciplined forces. The Handbook is due for release at the end
of 2002.

Fiji is a signatory to the World Intellectual Property Organisation. The Ministry for Justice is
addressing the enforcement of intellectual property rights.









Policy Objectives
Key Performance Indicators
To effectively and efficiently maintain
§ Reduction in total crimes detected.
internal security and public order in an
§ Increased access to Police Stations/Posts.
impartial and transparent manner.
§ Increased proportion of crimes detected.
§ Increased numbers of active Neighbourhood
Watch Schemes.
§ Coordinated efforts by government agencies
(CLAG) strengthened.
§ Public awareness programs, civic instruction
in schools and other community sectors.
§ Law Enforcement Officers observe and
uphold human rights.
§ Fiji Police Intelligence Bureau established
by 2005.
To provide an independent and impartial
§ Reduction in backlog of cases in the court
judiciary, and associated legal services,
system.
capable of efficiently and effectively
§ Increased access to legal aid services.
discharging its obligations.
§ Full computerization of DPP’s Office by
2005.
§ Crime search database activated and shared
by relevant agencies by 2005.
§ National Prosecution Service established by
2005.
§ Phased Implementation of recommendations
in the Beattie Report.
§ Review of sentencing penalties for violent
crimes completed by 2003.
To provide efficient and cost-effective
§ Reduction in repeat offenders by 5 percent
prisons and rehabilitation services.
per annum.
§ 50 percent reduction in escapees by 2004.
§ A 10 percent annual decline in prison
population.
§ Increased proportion of ex-offenders
successfully completing rehabilitation
programs.
§ Feasibility of contracting out some services
established by 2003.
To defend Fiji’s sovereignty and
§ Complete the Security and Defence Review
territorial integrity and protect and
by 2003, followed by phased implementation
promote its national security interests.
of the Review’s recommendations.
§ Regular patrols of EEZ.
§ Reduction in illegal immigrants.
§ Defence cooperation programs established
with other nations.
§ Increased involvement in community
reconciliation activities.
§ Establish national security framework that
links all stakeholders by end of 2003.






5.5: Employment and the Labour
Market
Goal: Fullest and most productive

utilisation of our human resources
Fiji’s population grew by only 0.8 percent per year during the 1986-96 period as a result of
emigration and the continuing decline in fertility. During the same period Fiji’s urban
population has grown at 2.6 percent per year and the rural population has shrunk by 0.5
percent per year. This very high growth indicates that the urban population, and hence those
looking for work in urban areas, will continue to grow in future.

During the plan period, those seeking jobs will likely be around 17,000 persons per year,
including school leavers, belated entrants into the labour force and laid-off workers seeking
re-employment. (See Appendix table for more details.) Most will not find jobs in the formal
sector. Assuming that economic growth is sustained at a rate of around 5 percent per year, it
is likely that job opportunities in the formal sector will amount to about 9,700 per year.
Satisfying the demand for new jobs continues to be a major challenge for government. The
key strategy that Government has adopted to address the jobs deficit is to promote economic
growth and assist those who cannot get formal sector jobs to find productive work in the
informal sector, for example, in agricultural and non-agricultural cooperatives and small and
micro-enterprises (SMEs). Government has committed to the extension of the Integrated
Human Resource Development Programme for Employment Promotion (IHRDPEP) to 2004
and has prepared a National Human Resources Plan for 2002 to 2007.

Efforts to create job opportunities for economic growth are hampered by a number of
constraints.

Persistence of Skill Shortages – a major factor impeding faster economic growth has been
the persistent shortage of professional, skilled and semi-skilled workers, a problem
exacerbated further by out-migration. Such shortages retard economic growth and further
intensify the gap between the number of new job openings and additional job seekers. When
skilled workers are replaced by those more recently trained, there is usually a reduction in
productivity.

Lack of Labour Market Information - There is a void of information on labour market
conditions that is required by job seekers and employers. Job seekers need information to
make rational decisions on choice of occupation and the education/training required to gain
the necessary qualifications. Employers need information on incentives they must offer to
attract candidates to fill current and future vacancies.

Low levels of Productivity – overall economic growth is constrained by the low levels of
productivity in the formal and informal sectors of the economy. The small size of the internal
market is restrictive of the kinds of technology that can be introduced and the extent to which
scale economies can be realised. Productivity and Quality programmes should be enhanced.

Wage setting and Industrial Relations – the current system of wage setting does not reflect
the actual circumstances of individual employers. A system of wage bargaining based on the
individual enterprise is to be preferred. The current industrial relations and labour standards
need to be reviewed to internationally accepted standards and consistent with expectations of
Fiji’s trading partners and the International Labour Organisation.






Policy Objectives
Key Performance Indicators
Improve Job Growth in the formal
§ National Taskforce on Employment Creation
and informal sectors.
established and operational in 2003.
§ Annual review of the Employment Taxation
Scheme.
§ National Centre for Small and Micro
Enterprise Development (NCSMED) fully
established and operational in 2003.
§ Employment exchange scheme with
NZ/AUSTRALIA/US introduced.
Reduce Skill Shortages.
§ Expansion of intake at tertiary and vocational

institutions to meet skills needs.
§ Encourage tertiary level distance education.
§ Public Service pay better reflects scarcity of
skills by 2003.
§ Expatriate workers and former citizens
recruited for areas where shortages are critical.
§ Promote wage system that rewards skills.
Improve Functioning of the Labour
§ Industrial Relations, labour and minimum
Market.
wage legislation reviewed by 2003.
§ The Computerised Human Resources
Information
System (CHRIS) and Labour
Market Information System (LMIS)
established and expanded in 2003 - 2005.
§ National Accreditation Board established and
operational in 2004.
§ Employment Placement Services/Job Matching
System established and operational in 2003 -
2005.
§ Labour force survey conducted annually from
2004.
Improve productivity at the
§ Promotion of productivity through the
organisational, industry, sectoral
restructuring of National Productivity
and national levels.
Organisation (NPO).

§ Implementation of Quality Control Circles
(QCC), Total Quality Management (TQM),
International Standard Organisation (ISO), Fiji
Quality Awards (FQA) framework.
§ Training of Industrial Engineers.
§ Promotion of wage system based on
productivity.
§ Performance Management System in operation
in the Public Service by 2003.











5.6: Land Resource Development
Goal: Effective management of land
& Management
resources to ensure sustainable development

Land is an important factor in the development of the economy. Previous studies have
emphasized the critical role of the land tenure system in the development of Fiji’s economy.
In particular the rigid and arbitrary nature of the existing legislation such as ALTA is a major
concern in terms of development in the agricultural sector. Finding an amicable solution for
land issues will facilitate purposeful development of land, a major portion (88 percent) of
which is native land.

The Native Lands Trust Board (NLTB) plays an important role in land development,
particularly in the provision of leases. Government has shown the political resolve to ensure
an efficient process for the renewal of leases, conducting consultations with all stakeholders
and strengthening of the administrative capacity and efficiency of NLTB to address the
current backlog of cases. The NLTB is currently undergoing a review. Government is
committed towards the adoption of the Native Land Trust Act (NLTA) as the legal basis for
future issuance of leases.

The increase in population over the past 40 years has increased demand for agricultural land
and consequently has put a significant amount of pressure on arable land. This has resulted in
land degradation, reduced productivity, lower yields, reduced food security and an increase in
poverty. Whilst the majority of the population (54 percent) reside in rural areas, there has
been a decline in the rural population over the last decade due to rural-urban migration. This
has resulted in significant urban development and encroachment onto first class arable land.
In this regard, much of Fiji’s arable land has been taken up for housing, industrial and
commercial developments. With competing demands for limited land resources, the
development of a land use policy will provide a framework for land development in the
country.

A number of constraints have been identified as being responsible for hindering development
such as the lack of infrastructure, particularly in the rural areas, and also the rigidity of
regulation under ALTA. Improper land use practices have also been responsible for land
degradation in certain areas. This needs to be addressed to ensure future sustainability of the
resource with offenders seriously dealt with in order to discourage poor practices.
Inappropriate land use in watersheds has also resulted in extensive soil loss.

Government realizes that as a “factor of production”, land plays an important role in the
production of goods and services that can be traded in a highly globalised international
economy. A market friendly land model that ensures mataqali landowners receive market
based land rental income; guarantees security of tenancy; and generates a closer relationship
between landowners and tenants, is required.












Policy Objectives
Key Performance Indicators
To ensure sound land
§ Institutional capacity of the Land Resource
management and development.
Planning and Development Unit and the Land
Conservation Board strengthened by 2003.
§ Land Conservation Board Act reviewed by 2003.
§ Consolidated Geographical Information System
introduced by 2004.
To ensure security of land
§ A new land tenure system approved by all
tenure.
stakeholders by 2004.
§ 20 percent decrease in ‘vakavanua’ leases per
year.
§ Increase in number of leases renewed by NLTB.
§ Establish a Land Claims Tribunal in 2003.
To improve landowner’s
§ FDB approved loans to landowners for land
accessibility to credit.
development to be increased by 10percent per
year.
§ 15 percent increase in selected agricultural
production by landowners.
To ensure sustainable
§ Participatory National Land Use Plan documented
utilization and development of
between 2003 and 2007.
land.
§ Adoption and enforcement of Rural Land Use
policy and Sustainable Development Act.
§ Watershed Management Master Plan completed
by 2004.
To ensure resettlement of
§ 2 new agricultural sub-divisions developed with
evicted tenants.
basic infrastructures completed by 2005.
To develop a market friendly
§ Efficient native land market rental system fair to
land model under the
landowners and tenants studied and developed by
framework of the Native Land
2004.
Trust Act.
§ Formal consultative mechanism on native land
involving all stakeholders developed by 2003.
§ Implementation of the Native Land Trust Board
Review by 2003.
§ Mataqali landowners directly involved in the
decision-making process relating to the
commercial development of native land by 2004.
















5.7: Environment

Goal: The sustainable use of all natural
resources
The proper management of the environment
and sustainable use of natural resources are
critical for the sustainable development of Fiji's largely natural resource based economy.
Uncontrolled and poorly planned development practices in the past have resulted in many
environmental problems. Adequate enforcement of legislation and increased public
awareness and appropriate actions and activities aimed at changing people’s attitudes will be
emphasised to minimise continuing damage to the environment.

Fiji’s environment is relatively fragile due to location, smallness and geographic isolation.
The country is characterized by diverse ecosystems: marine, land and coastal and richly
endowed with natural resources. Fiji’s vegetation and wildlife species are relatively small in
number but are of exceptional scientific and genetic interest because of the high proportion of
endemic forms. Our coastal zone is of vital importance for it brings together a unique
assemblage of resources such as reefs, mangroves, water, arable land, seafood and high
quality landscape.

Fiji’s main environmental problems are: land degradation, air and water pollution, refuse
disposal, climate change and sea level rise. Expansion of agricultural lands is the principle
cause of land degradation.

To address Fiji’s environmental problems, Government has drafted the Sustainable
Development Bill to provide the framework for the management of our environment and
ultimately to address various environmental issues and concerns. The bill will provide
policing of activities that bring about depletion of the natural environment. Of particular
importance, the Bill will require that Environmental Impact Assessments be conducted for all
developments.

Fiji is a signatory to numerous international environmental and resource conventions that
place considerable responsibility on the Government at national and international levels with
regard to environmental issues. The ratification of these conventions has enabled
Government to undertake numerous projects and programmes at the national level with
relevant technical assistance being provided by various international and regional
organisations. Government has also committed to achieving the Millennium Development
Goals, which include Environmental Sustainability, and the World Summit on Sustainable
Development (WSSD) Plan of Implementation.

Although Fiji is faced with numerous environmental problems, it is fortunate that it lacks the
serious demographic, economic and industrial pressures from which the majority of serious
environmental problems originate in other countries. It has a generally mild climate, is richly
endowed with natural resources, has a small population with low population growth, a
relatively pest free and a relatively unpolluted environment due to the absence of high
polluting industries.









Policy Objectives
Key Performance Indicators
To minimise degradation of
§ Sustainable Development Bill enacted and
natural resources and protect
implemented by 2004.
biodiversity.
§ Marine Prevention Pollution Bill by enacted and

implemented by 2004.
§ Fiji Biodiversity Strategy Action Plan endorsed
and implemented by 2003.
§ National Implementation Strategy and First
National Communication to the Framework
Convention on Climate Change endorsed by
2003.
§ National controls on coral harvesting by 2003.
§ Mangrove Management Plan reviewed by 2003.
§ 2 nature parks and walkways by 2004.
§ 2 marine parks by 2004.
To maintain a healthy and
§ National Analytical Laboratory established by
clean environment through the
2003.
reduction and elimination of
§ No litter due to enforcement of Litter Decree by
pollution and proper
2003.
management of wastes.
§ Vehicle emission levels reduced by 50 percent by

2005.
§ Alternative bio fuel identified by 2005.
§ Total suspended particles level in atmosphere to
be below 60-90ug cubic metres by 2004.
§ Naboro waste disposal facility commissioned by
2003.
§ Use of adulterated fuel banned by 2004.
To raise awareness of the
§ National accounts framework that takes account
importance of sustainable
of natural resource depletion and environmental
development.
degradation established by 2004.
§ Public awareness programmes on the Sustainable
Development Act conducted.
§ Improved coverage of environmental issues in
school curriculum by 2004.
Initiate environmental audit in
§ Environmental audit in public organisations to
organisations’ operations.
begin by 2004.




5.8: Small and Micro-Enterprises

Goal: Creating livelihoods through Small
and Micro-enterprise development
The small and micro-enterprise (SME)
sector offers the greatest opportunity for
creating employment and wealth in the medium term. Out of a labour force of 297,770
people recorded in the 1996 Census, 190,048 (64 percent) were engaged in small and micro-
enterprises (SMEs)— 20,313 in the formal sector and 169,735 in the informal sector.

Legislation to promote SMEs is already in place with the Small and Micro-Enterprise
Development Act of 2002. This defines a “small enterprise” as any enterprise, which has a
turnover or total assets of between $30,000 and $100,000 and employs between 6 and 20
people. A “micro-enterprise” is defined as any enterprise, which has a turnover or total assets
not exceeding $30,000 and employs not more than 5 people.

The 1996 census counted 4,796 formal licensed establishments with 19 or fewer employees,
3,179 of which had four or fewer employees. Most of these “small” enterprises were in urban
areas. The census also showed that 23,376 of the 67,942 families within the urban areas were
involved in informal money or economic activities. Furthermore, of the 76,675 rural
families, 48,516 were engaged in informal activities, including agriculture, fishing, transport
and handicraft. SMEs also make up a substantial part of the manufacturing sector, both in the
formal and informal sectors.

A National Centre for Small and Micro-Enterprise Development (NCSMED) has been
established in 2002 to lead the development of this sector. The Centre will target assistance
mainly to the informal sector, as the formal sector cannot create more than 9,700 new jobs for
the estimated 17,000 new job seekers each year.

The SME enterprise “culture” needs to be developed further by nurturing and encouraging
entrepreneurs from an early stage. Regular national consultations and awards for individual
and group excellence in SMEs will be pursued from 2003.

Effective coordination is essential for the growth of the SME sector. NCMSED will absorb
the National Micro Finance Unit and the Small Business Advisory Unit activities and liaise
closely with relevant government and non-government organizations.

Lack of appropriate business support services and infrastructure is a major constraint.
According to the Committee of Inquiry into financial services, 80 percent of households do
not have access to the formal banking system. There is a lack of marketing skills among
SMEs, especially a lack of support for primary producers in product development.

Up to date data and statistics on the sector will enhance knowledge about the special needs
for SME development and implementation of policies and strategies for the development of
the sector. A national and sectoral SME database needs to be developed and updated
regularly.











Policy Objectives
Key Performance Indicators
To mainstream SMEs in national
§ Annual national consultation/workshop on
development.
SME development beginning in 2003.
§ Government resources allocated annually
to SME sector.
§ Annual awards for individual and group
excellence in SMEs.
To improve policies and
§ Studies on Government and municipal
regulations for SMEs.
policies and on laws/regulations that affect
SMEs conducted by 2003.
§ User-friendly policies, laws and
regulations that affect SMEs implemented
by 2004.
§ Booklets on SME laws in English, Hindi
and Fijian published and disseminated in
2004.
To improve co-ordination of
§ Register of business training providers,
SME training/development
trainers and advisers produced by
activities.
NCSMED by 2003.
§ NCSMED website established by 2003.
§ Training of Trainers and refresher courses
conducted on regular basis.
§ Greater coverage of SMEs in secondary
school curriculum.
To improve business support
§ Improved access to banking and credit
services/infrastructure.
facilities.
§ Incentive scheme for large firms to
develop SME suppliers set up by 2005.
§ Service providers are assisted to access
technology to benefit clients.
§ Publish SME establishment costs on a
regular basis.
§ Quality and productivity issues addressed
by NCSMED and FNTC by 2003.
To develop marketing for SMEs.
§ Research conducted on new markets and
opportunities regularly.
§ NCSMED to work with private sector
organisations (FEF, FCCI, FMA), large
firms, FTIB and NGOs (including NGO
networks overseas).
To develop SME sector data and
§ Bureau of Statistics’ (BOS) coverage of
statistics.
SME activities strengthened by 2004.
§ Business Register and SME national
database on SME developed by 2003.




5.9: Housing and Urban
Goal: Affordable accommodation for all and
Development
sustainable development for urban centres

Fiji is relatively urbanised with almost half of the population living in two cities, nine towns
and several unincorporated towns. Urban population growth between 1986 and 1996 was 2.6
percent per year, compared with 0.8 percent per year for the population as a whole. This
urbanisation trend has put increasing pressure on the urban centres and their environment as
well as on urban infrastructure, and has given rise to social problems, including squatter
housing, over-utilised infrastructure, congestion, pollution, a growing beggar population, and
rising crime. The lack of adequate physical and social infrastructure in urban areas has
constrained the growth of businesses and hence the growth of jobs.

Responsibility for addressing these problems lies with both national government and the
municipalities. A lack of capacity, especially physical planning capacity, within the
municipalities, as well as within national government has contributed to these problems. Poor
institutional capacity, as well as the rising level of corruption, is worrying trends. The lack of
an agreed Urban Sector Strategy has contributed to the poor performance of municipalities in
addressing urban problems. Specific problems and opportunities in each urban area will be
addressed through the development of strategic plans for each municipality as well as through
the publication of Town Planning Schemes. There is also a need for better public
accountability of town councils. More accountability and responsibility on locally elected
officials can provide a spur to solve local problems and issues.

The lack of affordable housing is one of the urban areas most pressing problems. Rising
costs have made it hard for low-income earners to afford decent housing and this has led to a
rise in squatter settlements. Government assistance in the housing area is provided through
the Housing Authority (HA) and Public Rental Board (PRB). The FNPF also allows
members to withdraw part of their savings to assist in buying a house. Although HA’s
lending rate was reduced from 11 percent to 6.5 percent for those earning $6,500 or less in
2001, many low income earners still cannot afford to buy homes. HA has also suffered from
an increase in non-performing loans. The precarious financial position of HA led
Government to recently convert a long term HA loan to equity. Adding to HA problems has
been the lag in providing basic services to HA new sub-divisions. This has contributed to the
Authority’s poor financial performance. The PRB's financial performance has also been
disappointing, as it has found it difficult to raise rents to economic levels. Building
additional rental flats is an option being pursued by the Board.

NGOs play a major role in providing housing for the poor, but they have difficulty in keeping
up with demand. Government provides an annual grant to the Housing Assistance Relief
Trust (HART) and works closely with Habitat for Humanity and Rota Homes to cater for the
housing needs of the poor. Some of these NGOs have been faced with problems in finding
suitable land for house building.

The lack of affordable housing has seen a substantial rise in the number of people living in
squatter settlements. Government will continue to work with NGOs and communities to
resettle squatters and provide basic amenities where feasible.








Policy Objectives
Key Performance Indicators
To facilitate the
§ Increased number of low-income earners accessing
provision of decent
Housing Authority special interest rate loans.
affordable housing to
§ 3000 approvals for FNPF withdrawals for members
all, especially to those of
housing by 2004
low-income earners,
§ Review of HA and PRB operations by 2004.
through reduction of the
§ Government, NLTB and Housing agencies working in
cost of buying and
partnership to make more land available for housing.
building homes.
§ Development by HA of 500 new residential lots per
annum.
To significantly upgrade
§ Completion of all resettlement projects earmarked for
squatters settlements by
each year.
redevelopment of
§ Government support for NGOs involved in squatter
squatter areas, and
housing increased.
provision of basic
§ Urban Squatter population reduced by 5 percent per
amenities in current
year.
squatter settlements.
§ Examination of Squatter Control Legislation by 2005.
To strengthen
§ Government support for NGOs involved in housing
government/NGO
for the poor increased.
partnership in the
§ Increased development of native land for housing the
provision of housing and
poor.
land for the poor.
§ 200 new houses per annum constructed by NGOs.
To provide residential
§ Co-ordination mechanism in place between PWD and
infrastructure facilities
HA by 2003.
for new sub-divisions.
§ Infrastructure plan for new sub-divisions prepared for
funding by 2004.
To achieve sustainable
§ Environment Impact Statements for all development
development of urban
within the urban boundaries required by 2005.
areas.
§ The Naboro Landfill commissioned by 2004.
§ Waste Management Plans for Nadi, Lautoka, Labasa
and Savusavu developed by 2005.
§ The provision of basic infrastructure services is
maintained in line with population and business
growth.
To improve the public
§ Amend and repeal all urban legislation where
accountability of city
appropriate to allow maximum devolution of authority
and town councils.
in municipal councils by 2005.
To improve the
§ Urban Sector Strategy prepared by 2003.
performance and
§ All municipal council to have Town Planning
efficiency of city and
Schemes by 2005.
town councils.
§ Strategic Plans for all councils established by 2003.
§ Navua/Pacific Harbour town established by 2003.
§ Increased use of Local Government association to
facilitate inter-local government discussions.
§ Municipalities to adopt Accrual Accounting.









5.10: Reform of State Institutions

Goal: Productive, transparent, and
Government recognises the importance of
accountable state institutions
effective and efficient state institutions in
rebuilding confidence in Fiji. Of particular importance is greater accountability and
transparency in policy making and in the use and oversight of public funds. In addition, the
effectiveness and efficiency of the public sector needs to be improved to provide value for
money to taxpayers and to provide a more transparent and predictable, and less costly,
business environment.

Cabinet and Parliament are the chief policy making bodies of the state. The committee
system of Parliament, together with the Auditor-General’s office, provides oversight over the
use of public funds. Both Parliament and the Auditor-General’s office need strengthening to
carry out these functions. Government is committed to furthering accountability and
transparency through the introduction of a Code of Conduct for leaders and a Freedom of
Information law. In addition, the Constitution will be reviewed to ensure that, among other
things, Cabinet is able to operate effectively.

Accountability and transparency will also be improved through a re-activated Financial
Management Reform programme. The programme will initially concentrate on revamping
the Government’s Financial Management Information System and introducing reforms in the
policy, planning and budgeting arrangements. Further stages of the programme involve
moving to accrual accounting and decentralizing financial control to ministries.

The effectiveness and efficiency of the public sector is being addressed through civil service
reforms and reforms to public enterprises. The Financial Management Reform programme
will also contribute to improving efficiency.

Two issues confront Fiji’s public sector in the short term. First, the rates of increase in public
sector wage and salary rates each year, and second, the high number of employees in relation
to the size of the economy. Government has embarked on a short-term expansionary
approach to stimulate economic growth, but this trend is unsustainable over the longer term
and creates significant economic risks. Reforms in the civil service will focus on
“rightsizing” the service, on increasing efficiency, reducing red tape, reducing discretionary
powers in the provision of government services to the private sector, and fostering a customer
oriented approach to service delivery.

Ensuring that the separate administrative arrangements for indigenous Fijians are working
effectively and efficiently is an important component Government’s reform efforts. The
Fijian administration is currently being reviewed.

Government currently engages in commercial activities either through government
department operations or through the operations of public enterprises. Efficiency gains will
come from better organisation of these commercial activities and through the reform of
Public Enterprises. Reforms to Public Enterprises should ensure that: Government achieves
higher returns on investment, the regulatory framework is effective, privatisation focuses
towards achieving economy-wide gains, public monopolies do not become private
monopolies and that ownership of wealth and the benefits of privatisation are spread
equitably among the population.




Policy Objectives
Key Performance Indicators
To provide an institutional,
• Capacity building for Parliamentarians and members
operational and legislative
of Public Accounts and Standing Sector Committees.
framework for more accountability
• Code of Conduct for leaders implemented by 2003.
and transparency in policy making
• Freedom of Information Act passed by 2003.
and in the management of public
• Auditor-General’s office using internationally
resources.
recognized standards.
• Constitution reviewed by 2005.
• Public Finance Management Act, Public Service Act
and Public Enterprise Act harmonised by 2003.
• Implementation of the new Financial Management
Information System on a cash basis by 2003.
• Corporate Planning system factored into the revised
Public Service Act by 2003.
To increase public service
• Contracting of Permanent Secretaries from 2003.
efficiency and productivity by
• Delegation of powers to Heads of Ministries.
adopting the principles of good
• Senior Executive Services (SES) manual guideline
governance, which include:
formulated by 2003.
optimal transparency in decision-
• E-governance as a medium for improving service
making and accountability in
delivery implemented between 2003-2005.
provision of public services.
• Introduction of a performance management system in

consultation with all stakeholders by 2003.
• Human resource management information system
established by 2003-2004.
• Job Evaluation Exercises completed for all civil
servants, in consultation with all stakeholders, by
2003.
• Rightsizing Committee to develop paper on a
forward-looking framework for Government’s human
resources by 2003.
• Review of Fijian administration implemented by
2003.
To ensure that public enterprises
• Financial and Non-financial performance monitoring
operate in a fully commercial
indicators to reflect world’s best practices established
manner and provide better quality
by 2003.
through progressive corporatisation
• Undertake review of the Public Enterprise Act and
and eventual privatisation.
Charter of Public Enterprises by 2004.
• Progressive sale of Government shares in state owned
reorganised entities, Government Commercial
Companies and Commercial Statutory Authorities
between 2003-2005.
• Options to minimise redundancies from restructures
of reorganised enterprises, in consultation with all
stakeholders, established by 2003.
• Public enterprises to provide at least 10 percent
return on investment by 2005.
• Road map for Public Enterprise Reform completed
by 2003.




5.11: Foreign Affairs and External
Goal: Global integration for political
Trade
and economic advancement

Government implements and formulates foreign and trade policies by maintaining, evaluating
and expanding friendly relations with other countries and through proactive participation in
international organisations to which it is a member. Fiji is a member of various international
and regional organisations including the United Nations (UN), Pacific Islands Forum,
African, Caribbean and Pacific (ACP) Group, World Trade Organisation (WTO),
Commonwealth, International Monetary Fund (IMF), World Bank and Asian Development
Bank (ADB). In addition, Fiji has a long history of contribution to UN peacekeeping
operations.
The establishment and promotion of external trade and economic relations through
negotiation is an important function of the Government, and diplomatic missions abroad
assist with the responsibility for trade policy implementation. Government maintains
diplomatic missions in Beijing, Brussels, Canberra, Kuala Lumpur, London, New York, Port
Moresby, Tokyo, Washington and Wellington. In addition, twelve honorary consuls in other
centres of the world are accredited to foster Fiji’s interests abroad.
The last decade has seen Fiji adopt an export oriented, outward looking, approach to trade
relations. Import restrictions have been lifted in favour of export promotion, and as a result,
Fiji now has a more open economy with increased volumes of both exports and imports. Fiji
is a signatory to a number of bilateral, regional and multilateral trading agreements. The
most significant is membership of the WTO, which offers opportunities to benefit from
increased access to foreign markets. On a regional level, SPARTECA offers duty free
access to the products of Forum Island Countries (FICs) to the markets of Australia and New
Zealand. Furthermore, in addition to the Melanesian Spearhead Group and bilateral trade
agreements, the Pacific Island Countries Trade Agreement (PICTA) has been successfully
negotiated and is expected to allow free trade amongst all FICs by 2012. The Pacific
Agreement on Closer Economic Relations (PACER) with Australia and New Zealand has
also been successfully negotiated and is awaiting ratification. In addition, the ACP-EU
Cotonou Agreement provides preferential prices for sugar and duty free access to the EU
market. A new trade chapter under the Agreement will be negotiated during the Plan period.
Nonetheless, Fiji has an opportunity to secure niche and new market opportunities for
domestic products and services especially in Asia.
Freer global trade poses dramatic challenges. It leads to greater competition for domestic
market producers (especially those which lack efficiency), and an erosion of the preferences
that Fiji export industries currently enjoy, such as, sugar and garments. Trade is also
constrained by market access restrictions due to non-tariff barriers that are applied by many
countries under the guise of quality standards and quarantine procedures. Furthermore, a lack
of adequate national trade facilitation capacity, trade standards, negotiation and advocacy
capacity are additional constraints.
In addition to the management of political, economic and trade relations with other countries,
Government plays an important role in the negotiation and administration of foreign aid. In
this respect, Government recognises the required linkage of national goals to those of the UN
sponsored Millennium Development Goals (MDGs) in order to realise more aid funds for
development.



Policy Objectives
Key Performance Indicators
To promote and secure strategic
• Fiji’s interest and profile advocated in regional
economic and diplomatic relations
and international institutions such as UN,
with sovereign states and regional and
Pacific Islands Forum Secretariat,
international institutions.
Commonwealth etc.

• A mechanism for advice and follow-up on

international declarations and trade agreements

through Government’s decision-making

machinery, including Parliament, established

by 2003.


To recognise and adhere to
• Domestic policies and legislation amended and
international declarations, agreements,
aligned to international conventions and
conventions and treaties of UN,
treaties ratified by Fiji.
Commonwealth, EU and others that
• Program of action for achieving the UN MDGs
are of significant benefit.
established by 2003.

• Progressive increases in receipts of

development cooperation funds, in areas of

priority identified under Government’s Public

Sector Investment Program between 2003-
2005.
• New peacekeeping operations identified.
To improve investment and trade
• Trade facilitation in the areas of quarantine
facilitation and negotiation capacity to
protocols, customs, ports and immigration
achieve sustained global integration.
strengthened by 2003.

• Personnel with background in areas of trade,

trade negotiations and investment recruited to
serve at Fiji’s foreign missions from 2003.
To formulate and advocate Fiji’s
• Fiji’s current trade arrangements under
foreign trade policy as a reflection of
bilateral, regional and multilateral trade
the country’s interests and priorities.
initiatives reviewed annually.

• A multi-stakeholder consultative mechanism

for regular dialogue with private sector and

non-state actors on all foreign policy

formulation and promotion developed by 2003.
To further diversify export markets by
• Feasibility of establishing trade offices in new
pursuing new markets particularly in
markets completed by 2003-2004.
Asia-Pacific region.
• Memoranda of understanding with new
markets established by 2005.









Chapter 6: Social and Community Development

6.1: Health


Goal: Quality, affordable and efficient health services for all
Fiji has a well developed
health system with an infrastructure of base hospitals in three geographic divisions, supported
by area and sub-divisional hospitals, health centres and nursing stations in the smaller towns
and rural and remote areas.

The national health indicators compare favorably with other developing countries. Infant,
child and maternal mortality rates and incidence of low birth weight have all declined over
the last decade. Non-communicable diseases (NCDs), such as diabetes, heart disease, high
blood pressure, respiratory diseases and cancers, have now replaced infectious and parasitic
diseases as the principal cause of morbidity and mortality. Initiatives and measures to support
the control of non-communicable diseases through the National Diabetes Centre, National
Food and Nutrition Centre, National Centre for Health Promotion, National Health Promotion
Council, Tobacco Control Act 1998, Health Management Reform Project, and the review of
health legislation will be retained and strengthened.

The increasing number of HIV/AIDS cases is a national challenge. The number of HIV/AIDS
cases in mid 2002 was 104. A large proportion of the cases are between the ages of 20 and
29. With a window of 5 to 10 years from the time of infection to detection, it is clear that
many are picking up the virus while still in their teens. A Strategic Plan 2001 - 2003 to
prevent and control the spread and impact of HIV/AIDS and STIs has been developed and is
supported through the Budget.

Emigration of health professionals, including doctors, nurses and paramedics has continually
increased over the last few years. Efforts in the next few years will focus on increasing intake
at the Fiji School of Medicine (FSM), training nurse practitioners to perform roles of medical
officers, employing retired and part-time nurses, and increasing the intake at the Fiji School
of Nursing.

Maintenance of appropriate levels of infrastructure and facilities is vital for the delivery of
health services. Optimal use must be made of the health capital budget ($12 million in 2002)
in the construction and maintenance of health facilities and purchase of equipment. New
hospitals in Nadi, Vunidawa and Levuka have been constructed in recent years. A new
private hospital of international standard opened in Suva in 2000.

A five-year Health Management Reform Project (1999-2003), funded by AusAID, aimed at
decentralising service administration is being implemented. This will give more autonomy
and responsibility to divisional and sub-divisional hospitals.

The increasing demand and cost for health care, coupled with the availability of limited
resources, requires increased attention to health financing. The Public Hospital and
Dispensary Act, which includes hospital fees and charges for services, needs to be reviewed.









Policy Objectives
Key Performance Indicators
To provide adequate primary and
§ Achieving target milestones in the 9
preventative health services.
components of primary health care set for the
year.
§ Sustained prevention and control of
HIV/AIDs.
§ Reproductive health facilities (including
Adolescent Health) expanded by 2003.
§ IMCI integrated into existing health services.
§ Health promotion activities integrated into
rural and community health programmes.
§ Health priorities documented and
implemented by the 19 sub divisional
hospitals.
§ Incidence of malnutrition and related diseases
reduced by 5 percent annually.
To provide efficient curative
§ Reduced waiting time for outpatients.
(hospital) health care services.
§ Patient Information System and Health
Information System fully developed by 2005.
§ Participation of private and traditional health
care providers increased.
§ Appropriate levels of drugs and medical
supplies reviewed and established.
§ Public Health Act, Public Health and
Dispensaries Act, Mental Treatment Act
reviewed by 2004.
To maintain appropriate level of
§ Intakes at FSM for MBBS maintained at 40-
human resources/staff.
45 per year.
§ Intake at FSN maintained at 150 per year.
§ Role of public health nurses and community
health workers reviewed and strengthened.
§ Retention incentives for health professionals
reviewed.
To maintain appropriate
§ New Government Pharmacy constructed by
infrastructure and facilities.
2004.
§ Extensions to Labasa Hospital and FSM
upgrading completed by 2004.
§ 2.4 patient beds per 1000 population by 2005.
To build a management culture
§ Quality Assurance guidelines reviewed
that promotes and supports
regularly.
continuous quality improvement.
§ 3 Divisional training programmes on Quality
Customer Care conducted annually.
§ Patient Satisfaction Survey programme in
place in main hospital and selected sub
divisional hospitals.
To improve health financing.
§ Health financing options reviewed by 2003.
§ Revised fees and charges in place by 2003.
§ New fees and charges incorporated into
Hospital and Dispensary Act by 2003.



6.2: Education and Training

Goal: Quality education and training for all
that is responsive to changing needs
Education is recognized as a fundamental
pre-requisite for sound socio-economic
development. It is also a basic human right. Government accords high priority to Education
as reflected in the increase in the education budget from $180 million in 2001 to $217 million
in 2002.

The Fiji Islands Education Commission/Panel 2000 (FIEC) report, a comprehensive review
of Fiji’s education system, notes that the education system has made impressive
achievements and compares favourably with systems in other developing countries. There is
widespread access with practically universal primary education (99 percent) and good
secondary school access (72 percent). Literacy rates are high at 93 percent (1999) and there is
virtual gender parity.

Government’s efforts are complemented by a high degree of community participation. School
committees own 99 percent of all primary and secondary schools in the country. Government
owns only 2 of the 699 primary schools and 12 of the 154 secondary schools.

Rural schools, which are generally supported by communities with low incomes, often cannot
support an adequate level of resources and facilities in their schools. This is a major cause of
low pass rates in external examinations in rural schools. In 2000, for instance, the pass rate in
Fiji School Leaving Certificate in rural schools was only 26 percent compared to 62 percent
in urban schools.

School curriculum, which is reviewed periodically to enhance its relevance to meet the
changing needs of our society, requires ongoing improvements. Computer education needs to
be strengthened for all students, and in particular for secondary school students who will be
entering tertiary institutions and the world of work in the near future.

The teaching force plays a pre-eminent role in providing quality education, and hence should
be regularly upgraded through curriculum improvements and training. In pre-service teacher
training there needs to be more emphasis on areas such as multi-grade teaching.

Fijian education requires special consideration. Efforts to address Fijian education are in
progress. The FIEC2000 report and a ten-year blueprint on Fijian education (2001-2010)
makes various recommendations ranging from strengthening administrative structures to
increasing access to early childhood education, to reviewing the curriculum and to promoting
provincial education development.

There is a relatively well-developed vocational training and technical education program
covering secondary and post-secondary pre-service and in-service training for industry.
Technical and vocational courses offered in secondary schools need to be made accessible to
more schools. A national qualification is also necessary to standardize the courses offered by
the various technical and vocational institutions. The present assessment system, including
examinations, needs to be reviewed.







Policy Objectives
Key Performance Indicators.
To ensure access to quality
§ Compulsory Education Act implemented by 2004.
education.
§ Curriculum revised to include environment, business
skills and IT by 2004.
§ Combined primary and secondary enrolment ratio of 90
percent by 2005.
§ Special education policy formulated for the disabled by
2003.
§ Pre-school enrolment increased by 10 percent in rural
areas by 2005.
§ Access of schools to computers increased.
§ Introduction of adult education in the formal school
system evaluated by 2004.
To develop and support a
§ Grant-in-Aid teachers retrained and absorbed into Civil
professional teaching force.
Service by 2005.
§ In-service training plan developed and implemented
annually.
§ Lautoka Teachers College upgraded by 2003.
§ Teacher-training curricula continuously upgraded.
§ Number of trained teachers in Mathematics and
Science increased.
To strengthen quality
§ Building grants reviewed with a view to providing
partnership between
benchmarks for minimum standards by 2003.
government and all other
§ Timely disbursement of annual grants to committees.
stakeholders.
§ Audited financial accounts from school managements
annually.
To strengthen Fijian
§ Improved pass rates for Fijian students in FSLCE and
Education.
FSFE.
§ Continue with the implementation of the blueprint for
the affirmative action for Fijian Education.
To provide quality
§ Increased proportion of rural teachers trained.
education services to the
§ Higher proportion of rural students passing FSLCE and
rural areas.
FSFE.
§ Rural schools and facilities upgraded.
To promote nation building
§ Teaching and learning of conversational Fijian and
through social justice.
Hindi strengthened by 2003.
§ Citizenship studies, national anthem and flag ceremony
introduced by 2003.
§ Spiritual, moral values, virtues and consumer education
and character building incorporated by 2003.
To strengthen and expand
§ Numbers of trained and qualified teachers increased by
Technical and Vocational
10 percent.
Educational Training
§ TVET Facilities upgraded.
(TVET)
§ National standards for qualifications established by
2005.
§ TVET assessment system reviewed by 2004.









6.3: Gender and Development

Goal: Develop, address and promote gender

sensitive policies, issues and concerns
Government has adopted a
mainstreaming approach on gender
issues. However, in the case of women, it is recognised that special programmes and projects
are still necessary to remove the gender gap in many areas, and that structural mechanisms
and attitudinal barriers, which work against improving the status of women, require
continuing action.

Fiji is a party to various international instruments and conventions on women and gender
development, such as the Convention on the Elimination of All Forms of Discrimination
Against Women (CEDAW). Government made five commitments for women’s advancement
after the 1995 UN World Conference for Women (Beijing). This formed the basis of the
National Women’s Plan of Action (WPA) 1999 – 2008. The Plan calls for action in five focal
areas: mainstreaming women and gender concerns; women and the law; women and micro-
enterprises; balancing gender in decision-making; and violence against women and children.

Several institutional mechanisms to promote gender equality and mainstreaming include the
National Women’s Advisory Council (NWAC), Inter-Ministerial Committee on Women
(IMCW), Gender Focal Points (GFP), five Taskforces to work specifically on the five areas
of WPA commitments, and a Gender Training Unit in the Ministry for Women. Civil
societies also contribute significantly to the advancement of women’s concerns.

Current initiatives to create an enabling environment for women and gender mainstreaming
include gender sensitised training within the public sector; the implementation of a gender
budget initiative project in several ministries; and gender audit studies in selected ministries
that are aimed at examining the differential impacts of sectoral policies and programs on men
and women.

The availability of micro-finance for women has improved since the introduction of the
WOSED project in 1993. The Women’s Plan of Action has identified the need to further
increase women’s access to micro-credit as well as improving women’s access to formal
credit.

There are an increasing number of women in top decision-making positions within
government. For example, the present Government has four female ministers, although two
are assistant ministers. Government will move towards a target of 50 percent representation
of women at decision making levels of Government, and where applicable in the private
sector, and in training, appointments and promotions.

Increasing violence against women and children, especially domestic violence and sexual
harassment, is of concern. Since 1995 the Police Department has introduced some measures
in order to deal with this issue. Initiatives by the Police include the implementation of a ‘no-
drop’ policy, gender sensitisation training for police officers and the establishment of Sexual
Offences Units. The Family Law Bill will provide additional safeguards for both women and
children, particularly in divorce proceedings.







Policy Objectives
Key Performance Indicators
To mainstream gender
§ Gender mainstreaming institutions
perspectives, issues and concerns
strengthened by 2005.
in the planning process.
§ National policies, plans and programs are
engendered by 2005.
§ Gender Audits conducted in 5 ministries by
2005.
§ 4 Gender Sensitisation Training workshops
conducted in each division annually.
§ Inclusion of gender impact assessments in
project appraisals within government by
2003.
§ National Women’s Plan of Action reviewed
by 2003.
To ensure gender equality and
§ Review of laws in relation to UN CEDAW
non-discrimination before the
completed by 2004.
law.
§ Gender issues integrated in the legal system

by 2005.
§ Increased collaboration and partnership with
NGO.
To provide disadvantaged women
§ Women’s access to micro-credit assistance
with access to savings and credit
improved by 50 percent by 2004.
mechanisms and to advisory and
§ Access to formal credit through affirmative
marketing assistance.
action programmes improved by 30 percent

by 2004.
§ Review of WOSED Micro-credit finance
scheme by 2005.
§ Policy framework for increased collaboration
and partnership with NGOs by 2003.
To ensure women’s accessibility
§ 50 percent representation of women in
and full participation in power
Government Boards, Committees, Tribunals,
structures and decision-making
Councils, Commissions, etc by 2005.
bodies.
§ Equal training opportunities at all levels in
Government.
To educate the community and
§ Appropriate sentencing penalties, including
law enforcement agencies to
counselling, for violent crimes against
prevent and eliminate violence
women and children in place by 2003.
against women.
§ Enactment of the Family Law Bill by 2004.
§ Concerted efforts and public awareness
programs against domestic violence and
sexual harassment conducted by 2005.




6.4: Youth and Protection of Children

Goal: Protection and development
of children and youth
The UN Convention on the Rights of the Child
defines children as those below 18 years of age.
Youths are generally those between 15 and up to 24 years of age. About 40 percent of Fiji’s
population is within these age groups.

Protection of the rights of children and youth and investment in their development is the
cornerstone of national development, as their individual contributions will shape the future of
our nation. The issues affecting children and youths are multifaceted and need a coordinated
approach.

The Coordinating Committee on Children (CCC) is a multi-sectoral cabinet subcommittee
established in 1993 after Fiji ratified the UN Convention on the Rights of the Child. The CCC
is responsible for coordinating the implementation of the Convention into Fiji’s laws and
procedures. Several issues including the adoption of children, child prostitution and child
labour, street children and children with disabilities, need to be addressed by all stakeholders
concerned. The Family Law Bill provides an opportunity to address some of the issues
facing children, particularly those affected by divorce.

The Ministry of Youth, Employment Opportunities & Sports provides assistance to youths
through counselling, training, advice, moral support, empowerment and job registration.
Positive Mental Attitude and Duke of Edinburgh Award programmes are also conducted as
well as, non-formal education programs. The Youth Parliament held in early 2002 was a good
example of youth empowerment and provided an opportunity for youths to voice their
concerns to Government leaders. It will now become an annual event as a component of
National Youth Week celebrations.

Government also notes the important contribution of civil society to the development of
children and youth in Fiji. These agencies provide emergency relief assistance such as food,
clothing and shelter to destitute children and youth.

Nevertheless, children have suffered disproportionately since the May 2000 crisis through
emotional, psychological and economic stress. This places tremendous pressure on family
units to maintain a decent standard of living and afford children quality of care. Child abuse,
child labour, street kids and child prostitution, drug peddling by school children, and
children’s access to liquor and drugs are increasing. Youths also face similar challenges such
as the lack of employment opportunities, mental and emotional pressures, vulnerability to
sexually transmitted diseases, delinquency, suicidal tendencies, and high incidence of drug and
substance abuse.

The lack of information on vulnerable groups of children and youth, such as ill treatment and
abuse, including sexual abuse, is a constraint to the development of relevant policies.











Policy Objectives
Key Performance Indicators
To harmonise legislation
§ Review of legislation completed by 2003.
with the principles and
§ Young Persons and Juveniles legislation evaluated
provisions of the
by 2003.
Convention on the Rights of

the Child and other relevant
international instruments.
To strengthen policy
§ Coordinating Committee on Children (CCC)
formulation, program
Strategic Action Plan completed by 2003.
implementation and
§ National Council for Children proposal evaluated
monitoring of policies and
by 2003.
programs for children and
§ Database established by 2005.
youth.
§ Increased coordination & monitoring of programs
between Government and NGOs.
§ Finalisation of National Youth Policy by 2003.
§ 5 yearly report on implementation of UN CRC
obligations completed by 2003.
To empower young people
§ Increased number of accredited training programs
to secure gainful
organized by Ministry of Youth.
employment or self-
§ Increased number of Youth NGOs.
employment opportunities,
§ All components of National Youth Service Scheme
both locally and abroad.
established by 2005.
§ Placement Services/Work Experience Programs
strengthened.
§ Careers Exposition conducted annually.
§ Increased number of income generating projects.
§ Implementation of Youth Employment Policy
Framework by 2003.
To inculcate in young
§ Increased opportunities & access for youths’ to
people, leadership,
participate in attachment and volunteer programs.
volunteerism and a strong
§ Positive Mental Attitude (PMA) Training
sense of motivation, cross-
strengthened.
cultural understanding and
§ National Youth Week conducted annually with
commitment.
wider youth participation in Youth Parliamentary

Session.
§ Increased participation of children and youth in
decision-making processes.
To promote health education
§ Teenage pregnancies reduced by 25 percent by
including sexual and
2005.
reproductive health
§ Reduction in HIV/AIDS and sexually transmitted
education.
infections (STIs) amongst children and youth.
To enhance provision of
§ Drop In Center established by 2005.
child protection and family
§ Reduction in number of homeless children.
welfare services.
§ Juvenile Bureau re-established by the Fiji Police

Force by 2004.
To encourage family units
§ Family Law Bill enacted by 2004.
to look after and be
§ Reduction in child abuse cases.
responsible for their
§ Increased knowledge and responsibility of family
children.
life issues amongst parents/youth.





6.5: Culture and Heritage

Goal: Protection and management of our culture

Fiji is a multi-racial, multi-cultural
and heritage for current and future generations
country with a multiplicity of
languages, religions and ways of living. Culture refers to the diverse manifestation of human
intellectual and artistic creativity, that is, both cultural heritage, and the living forms of
cultural expression.

The Department of Culture and Heritage was established in 2000 and is working towards
fostering a sense of national identity that is all inclusive and based on values of equality,
mutual respect irrespective of colour, race, national or ethnic origin, religion, gender and
physical abilities. The existing government and non-governmental organizations, in
particular, the Fiji Museum, National Trust of Fiji and Fiji Arts Council, are the flagship
agencies for cultural and heritage development.

Integral to the development of the nation is the conservation, development and promotion of
the indigenous identity. One that is not mutually exclusive but recognizes that its strength and
vitality comes not only from conserving the past but embracing the future in its mirrored
dimensions including the existence of other cultures.

Tourism, as the fastest growing industry in the world, relies to a large extent on cultural
heritage for its sustainability. Historic conservation and cultural activities can maintain the
distinct character of communities and greatly enhance the quality of life and enhance tourism
investment. The tourism industry and local community must find a balance between
profitability and sustainability. Cultural heritage sites and traditional arts should be conserved
and protected.

The association between gender and culture needs consideration. Both culture and gender
have been highly politicized, affecting women’s rights as well as our understanding of the
place of culture in development. The challenge is to develop an agenda that recognizes
women as significant actors in development and as bearers and signifiers of their culture.

Culture has the potential to address the challenges faced by our youth today. A major
challenge exists in their economic inclusion, civic and cultural participation, and health and
education needs. Part of the answer lies in the young people themselves and partly in creating
an environment to express themselves. The education system provides a catalyst and an
opportunity for this in instilling a sense of values and cultural identity.

There is a need to think culture and its impact on the environment. Local ecological
knowledge and traditional management practices, as part of the local systems of values and
meanings, have proved to be environmentally sustainable. The challenge is now to translate
this into practical projects and to change policies that strengthen the cultural dimensions of
the relations between the environment and development.













Policy Objectives
Key Performance Indicators
To protect, preserve and manage
§ National policy framework established by
Fiji’s cultural heritage.
2003.
§ Existing legislation (Fiji Museum Act, the
Intellectual Property Rights Act) reviewed
and updated by 2004.
§ Feasibility study on National Cultural
Industry completed by 2003.
§ Infrastructure to strengthen the activities of
existing heritage management agencies
developed by 2003.
§ National Treasure and Oral History Database
established by 2004.
§ Department of Culture and Heritage Website
launched by 2003.
§ Research on archaeological, maritime,
paleontological and material culture research
by 2004.
To increase cultural and cross-
§ Arts and culture subjects integrated in to the
cultural understanding.
school curriculum by 2003.
§ Intersectoral linkages with NGO’s and
through small grant allocation and
collaborative partnerships between
government and donor agencies developed
and strengthened.
To promote creativity in all forms
§ Number of women/youth individually and/or
and at all levels of society with
collectively participating in creative arts
particular emphasis on the role of
increased.
women and youth.
Promote conservation and resource
§ Number of ‘mataqali’ landowning units
development that emphasizes
engaged in commercial ventures increased.
partnership with local landowners.
§ Protected areas for national parks and marine
parks established.
Develop creative performing arts,
§ Database for Art and Craft Organizations
and visual art focusing on
developed.
traditional raw materials,
§ Fiji’s participation at the next South Pacific
techniques and designs.
Arts Festival.
§ Natural Cultural Festivals increased.
§ Number of cultural exchange groups’
performances overseas increased.











6.6: Sports Development
Goal: Promoting sports for healthy

lifestyles and for employment
Sport promotes nation building through its ability
to bring people of all communities together.

The Fiji Sports Council is responsible for the promotion and development of sport and sports
facilities nationwide; however, sports development had largely been undertaken by voluntary
organizations, for example FASANOC.

Government’s role has been confined to providing funding for the development of sports
facilities and capacity building.

A National Sports Development Committee was established to implement the new policy and
a development program to enhance national sports development. A key feature of the policy
is “sports for all”. The aim is to involve more people in sporting activities to promote healthy
lifestyles and personal development.

Several sporting facilities had been constructed and upgraded including the 2003 SPG sports
facilities. It is envisaged that the 2003 SPG will bring about enormous benefits to the Fiji
economy as a whole.

National sports, for example, rugby and soccer have become professional with players
contracted to overseas clubs and Super 12 franchises. Our top players and athletes are
exposed to major international competitions like the Olympic Games, Commonwealth Games
and the South Pacific Games (SPG). This brings much-needed publicity and serves as a
catalyst to boost investment and tourism.

Government therefore supports any further efforts to host international sporting competitions.

Raising Fiji’s competitive edge in sports is constrained by a continuing lack of top quality
sports training programmes such as those offered by the Australian Institute of Sports. Sports
science is prominent in these programmes and its use is critical for producing world-class
sportspeople. Greater private sector involvement in sport is also needed in order to inject a
more commercial approach, especially in professional sports.
















Policy Objectives
Key Performance Indicators
To promote healthy lifestyles.
§ Annual increase in participation of citizens

in “sports for all” activities.
§ Integrate “sports for all” in the workplace
by 2003.
§ Healthy eating habits promoted.
To support the development of
§ Increase in number of world standard
sports facilities and programmes.
sports facilities available by 2003.
§ SPG facilities completed by June 2003.
§ Increase in number of playing fields and
other recreation facilities.
§ Number of qualified sports scientists
increased by 2005.
To support the involvement of the
§ Annual increase in corporate sponsorship.
private sector in sports
§ Tax incentives for sponsorship.
development.
To develop and improve sporting
§ Improved ranking in international and
skills and knowledge in preparation
regional meets in all sports.
for regional and international
§ National Academy of Sports established by
competitions.
2005.
To facilitate lucrative employment
§ Increase in number of athletes and players
opportunities through sports.
contracted to overseas clubs.
§ Increasing number of “Super 12” contracts
for Fiji rugby players.
§ Increase in value of remittances from
sportspersons annually.















6.7: Disaster Mitigation and
Goal: Reducing vulnerability to disasters
Management

Fiji’s environment is highly vulnerable to natural and man-made disasters. Cyclones, floods
and severe droughts have adversely affected key sectors of the economy, particularly sugar.
Their effects include lower domestic production, reduced employment opportunities with
severe short-term unemployment, increased health problems and an upward pressure on the
price of food commodities.

Over the last decade, the damage caused by tropical cyclones has been estimated at slightly
below $500 million and close to 60 lives have been lost. The 1997/1998 droughts had a
severe impact on the economy. The sugarcane crop was severely affected.

Government policy has shifted away from emphasizing only quick emergency response to
disasters. Increasing emphasis is now put on a comprehensive approach to disaster reduction
including community preparedness and disaster mitigation, and the integration of the impact
of disasters into national development planning.

Past response efforts to disasters have concentrated on government provisions of rations, or
water supplies in the case of 1997/1998 drought. A noticeable impact of this has been a
reduction in the capacity of communities to help themselves and a loss of traditional
knowledge in coping with disasters.

Remote sensing and GIS tools are now available which could be effectively used to evaluate
immediate disaster damage, guide disaster relief activities as well as provide information for
flood control planning.

At present, the Ministry of Regional Development governs the affairs of the National Disaster
Management Office as required under the National Disaster Management Act 1998 as well as
the National Disaster Management Plan 1995, whilst the Ministry of Home Affairs continues
to be responsible for management of man-made disasters. The Department of Mineral
Resources provides monitoring information on geo-hazards. The Meteorology Department
has an important role in predicting and forewarning the population about cyclones and
droughts.




















Policy Objectives
Key Performance Indicators
To mainstream Disaster Management
§ Hazard and Risk Management included in
into the national development
project appraisal within government by
decision making process.
2003.
§ Comprehensive Hazard and Risk
Management (CHARM) principles adopted
by Government and NGOs by 2003.
§ Coordination between NDMO and
implementing agencies strengthened.
To improve Hazard and Risk
§ Response plans by various agencies for
Management.
cyclones, earthquakes, tsunamis and

volcanoes established by 2003.
§ Risk assessments for major urban centers
completed by 2003.
§ New seismic station network implemented
by 2004.
To improve community awareness of
§ Civil community involvement in emergency
risk, preparedness and response.
relief program increased by 2003.
§ Community preparedness and self-
sufficiency in dealing with natural disasters
increased by 2003.
§ Damages to buildings and infrastructures
Reduced by 2003.
§ Fires and land degradation that increase the
impact of natural disasters reduced by 2003.
§ Increased educational and training programs
in Disaster mitigation and management.
Assist communities to be self-reliant
§ Planting of disaster resistant crops using
and self-sufficient in the face of
traditional cropping systems increased.
disasters.
§ Average level of ration distribution reduced

by 2004.
To invest in infrastructure to mitigate
§ More enforcement and awareness on
the impact of disasters.
Building code.

§ Database on priority list of infrastructure for
mitigation by 2003.











Chapter 7: Economic Development Sectors

7.1: Sugar

Goal: Producing high quality sugar for the

Sugar production is important to the world market
economy: it contributes some 7 percent of
GDP, generates 22 percent of total domestic exports, accounts for 8.5 percent of total foreign
earnings and provides direct and indirect employment to around 41,000 people, consisting of
21,000 growers, 3,000 Fiji Sugar Corporation (FSC) employees and 17,000 cutters and
drivers (2001 figures). Unlike other export-oriented industries, almost all factors of
production are domestic and have a high regional impact and cross-sectoral linkages.

The sugar industry is currently facing a period of crisis that could have a major negative
effect on macroeconomic and social stability. Government recognizes that the industry
problems are multiplying under the current industry structure. The Fiji Sugar Corporation
(FSC), the mainly government-owned entity that owns the four sugar mills, is insolvent and
requires a significant investment injection to continue operating. Facing the prospect of
selling sugar at world prices by 2008, no serious industry efforts have been made towards
reducing production cost to a level to survive a possible drop in price to one third of the
present level.

In addition the industry lacks appropriate incentives to improve production efficiency, which
results in low quality of both sugar cane and sugar produced. Moreover, many sugarcane
farms are too small and fragmented to produce anything but a subsistence level income. To
exacerbate the state of the industry, large numbers of farmers are leaving the sugarcane areas
at the expiry of their leases. While some indigenous Fijian landowners are keen to enter the
industry, they lack the capital and appropriate skills for effective and efficient production.

Against this backdrop, the sugar industry faces a major restructure and a significant size
reduction to adapt to the pending loss of preferential prices. Simultaneously, significant
changes are taking place in landholding patterns as longstanding ALTA leases expire. The
Ministry of Agriculture Sugar and Land Resettlement administers the Farming Assistance
scheme through the FSC to assist new incoming sugarcane farmers in training and
development. This assistance is an effort to sustain the annual production at above 3 million
tonnes of cane.

The launching of the 20-year strategic plan in 1997 with the vision of transforming the
industry from a ‘Way of Life to a World Competitive Business’ was the first step towards
restructuring. More recently the FSC has produced a document entitled “The Fiji Sugar
Industry – A Way Forward” recommending a new commercial concept and approach.

Government realizes that the future viability of the industry has been due to a lack of
commitment to pursue reform and a lack of cooperation between key industry stakeholders.
Therefore, in 2002, Government has approved a restructure proposal, which is broadly in line
with the Industry proposal. In view of the importance of the sugar sector the Office of the
Prime Minister has assumed responsibility for its restructuring.









Policy Objectives
Key Performance Indicators
To review and re-structure the
§ FSC recapitalised in 2003.
sugar industry into a
§ The “Intermediation of the Sugar Sector
commercially viable, efficient
Restructuring” project completed by 2003
and sustainable industry.
To address the social impact of
§ The ADB “Alternative Livelihood” ” Study
the industry restructure.
completed by 2003.

To ensure land access and
§ Appropriate and fair leasing arrangement in
availability for the industry
place by 2003.
To improve milling efficiency
§ Action Plan for the relevant improvement in the
and linkage of the payment
mills is implemented progressively from 2003 –
system to the quality of sugar in
2008.
cane.
To increase the efficiency,
§ Action Plan to increase productivity and quality
productivity and quality of
of sugarcane is implemented progressively for a
sugarcane production in farms.
period of 5 years (2003-2008).
To review and restructure the
§ Appropriate restructure of the cane transportation
cane transportation system and
system be progressively implemented over a 5-
logistics.
year period (2003-2008).
To diversify the range and
§ Research and development initiatives
production of sugar by products.
implemented to grow high value crops by 2003.
§ 10 cane and sugar by-products developed by
2005.
To maximize returns to
§ Acceptable return on equity.
shareholders.






7.2: Non-Sugar Crops and Livestock
Goal: Sustainable community

livelihoods through competitive exports
Non-sugar crops and livestock contribute 8
and efficient food security
percent to GDP, around 11 percent of
agricultural exports, and benefits approximately 50 percent of the population. The crop sector
consists of traditional food crops (dalo, cassava, ginger and yaqona), tropical fruits
(pineapple, pawpaw and mango), vegetables, spices, cocoa and coconut products. Beef, dairy,
pork, poultry, sheep, goat and honey make up the livestock sub-sector.

Import substitution policies adopted since the seventies generally did not meet the expected
outcomes. Recognizing that survival of industries in a competitive environment depended on
being efficient, the sector has been gradually deregulated since 1989. Deregulation has
resulted in the removal of import licences, the conversion of most import quotas to tariffs and
subsequent reduction of these tariffs, and corporatisation of public entities, such as NATCO
and Rewa Rice Limited.

The performance of the sector over the last decade has been mixed. While production and
exports of some commodities such as dalo and vegetables have gradually increased, others
have stagnated or declined. Copra and cocoa have had a poor decade with declining
production and exports.

Future potential is with products where Fiji has a competitive advantage such as in high value
niche exports and traditional food crop production. Products that give the best returns to
labour and land resources include traditional food crops, fresh fruits, processed fruits,
processed nuts, cut flowers, vegetables, spices, herbs and medicinal plants, handicraft raw
materials and certified organic products.

Private sector led development will be actively supported with Government and other
agencies playing a facilitative role. In this regard the issues that need to be addressed include:
safeguarding and commercially exploiting favourable quarantine status, improving export
market access, encouraging the continuing transformation of subsistence to commercial
farming, revitalisation of agricultural research and access to technology, improving supply
and effectiveness of credit, public investment in critical infrastructure and support for
industry organizations.

There is scope for enhancing food security by increasing production of non-sugar crops and
commodities. A food and income security programme intended to improve agricultural crop
production is planned to be implemented in 2003.

Land and other associated resources must be utilized sustainable in production or processing
stages so that resources of good quality are available to future generations. A rural land use
policy, which guides land utilisation in rural areas, will be implemented.












Policy Objectives
Key Performance Indicators
To facilitate private sector-
§ Bilateral quarantine agreements negotiated:
led development.
Australia for pawpaw by 2003; and Japan for
ginger and squash by 2004.
§ No introduction of new fruit flies and other
diseases in the next three years.
§ National pest and disease survey conducted by
2003.
§ Viti Corp, NATCO and Yaqara Pastoral
Company Limited to be reorganised to prepare
for privatisation by 2005.
§ Government assistance for FDB agricultural
lending reviewed by 2003.
§ FDB Small Business Equity Scheme fully
utilised each year.
§ Increased investment in non-PWD rural road
maintenance, water and electricity.
§ Legislation in place to support industry
determined and enforced quality standards for
ginger, taro, kava and pawpaw by 2004.
§ Industry councils to be fully operational by
2003.
§ Coconut extension and research to be
transferred to CIDA by 2003.
§ Joint private sector consultation to continue
every 6 months from 2003.
To accelerate agricultural
§ Non-sugar agriculture exports increased by 2
diversification into areas of
percent per year.
competitive advantage.
§ Increased range and value-added of products
exported by 2004.
§ Ongoing resettlement of ALTA tenants whose
leases have expired.
To promote food security.
§ Value of food imports is less than 15 percent
of total imports by 2004.
§ Programme to promote food and income
security, incorporating appropriate
recommendation of the 2002 World Food
Summit, effected by 2003.
§ Value of component of livestock feed
imported reduced by 50 percent by 2005.
To ensure sustainable
§ Adoption and enforcement of Rural Land Use
development in non-sugar
Policy and Sustainable Development Act.
agriculture.
§ Land Conservation and Improvement Act
reviewed by 2003.









7.3: Forestry

Goal: Sustainable management and
The forestry sector contributed approximately 0.9
development of forest
percent of GDP and 3.4 percent of total export
resources
earnings in 2001. It covers indigenous and plantation forests. In total Fiji’s forest resources
cover an area of approximately 870,000 ha or about 47 percent of total land area. Plantation
forests, mainly pine and mahogany, account for 13 percent of total forest area.

Fiji Pine Limited owns and manages 40,730 ha pine plantations in Viti Levu and Vanua
Levu. The plantations are now being harvested and processed by Tropik Woods as pine
timber and chips of prime quality for exports. Pine chip exports earnings are around $40
million annually. Fiji Pine Limited has been experiencing financial difficulties due to poor
scheduling and forest management practices.

Hardwood plantation forests amount to 44,760 ha with mahogany accounting for 80percent
of planted area. Fiji’s mahogany plantation is considered to be the largest in the world and
of high quality. Fiji Hardwood Corporation Limited (FHCL) was established in 1998 to
manage Fiji’s hardwood plantations, which are principally mahogany. The main objective of
FHCL is to manage the sustainable utilization of the hardwood resource taking into full
account the interests of all stakeholders, in particular the landowners. There is significant
potential in the mahogany industry. Trial processing of mahogany is currently being
conducted to determine the quality and value of Fiji’s mahogany resources. Following
proper valuation and quality testing a strategic partner will be sought for processing and
marketing the resource. Both upstream and downstream value added processing will be
encouraged to ensure maximum benefits accrue to the Government and the landowners.

Mahogany takes approximately 30 years to fully mature and produce prime quality timber.
Current mature mahogany stocks allow for the sustainable harvest of 80,000 cubic metres of
sawn mahogany logs per year based on the 30-year minimum cycle. Consequently, the
sustainable harvesting and management of the resource is critical. Currently, FHCL is not
conducting any replanting of mahogany. Replanting of mahogany trees should be encouraged
to ensure the 30-year cycle is maintained and harvested.

Indigenous forests, representing 300,000 ha of production forests, have great potential for
value added products such as veneer, plywood and quality furniture. However, the rate of
extraction has been of concern. Deforestation is becoming a threat to Fiji’s biodiversity.
Increasingly, selective felling of trees will be encouraged through the strict enforcement of
the National Code of logging practice and the attainment of “green certification” under the
Forest Stewardship Council. Sustainability issues as well as good forest management
practices would be addressed through training targeted at landowners. Government is
constructing a Forestry Training Centre at Colo-i-Suva and a Timber Industry Training
Centre at Nasinu.

Valued added production of hardwood plantation, principally in the form of mahogany and
indigenous hardwood is expected to generate many returns to the economy. With increases in
world prices expected the sector’s contribution to the national economy will increase
substantially over the medium term as harvesting and processing of mahogany commences.
There is also a significant amount of non-timber forest products particularly fruits, nuts, and
medical and pharmaceutical plants that require further development. However, the sector
lacks the necessary infrastructure to facilitate harvest and processing of forest products.








Policy Objectives
Key Performance Indicators
To provide the appropriate
§ Forest training centre operational by 2003.
institutional and physical
§ Timber Industry Training Centre
infrastructure to support the
operational by 2003.
development of the sector.
§ Port handling facilities improved.
§ Forest access roads maintained.
§ Management Information System (MIS)
on the quantity and quality of forest
resources upgraded.
To ensure sustainable development
§ Amended Code of Logging Practice fully
and management of forestry resources.
implemented and enforced by 2003.
§ Incidence of forest fires reduced by 50
percent by 2005.
§ Awareness of conservation and
biodiversity issues increased through
training programs.
§ “Green certification” attained by 2004.
§ Mahogany replanting restarted by 2003.
§ Rate of deforestation maintained at 0.5 to
0.8 percent.
§ Replanting of indigenous forests to
commence by 2003.
Promotion of community-owned and
§ Employment level increased by 10
managed forestry processing and
percent.
value adding facilities based on
§ Resource owners training in harvesting
indigenous forests and community-
and processing of forest resources to
owned plantations.
commence by 2003.
§ 10 community-owned enterprises
established by 2005.
§ Formulation of an acceptable structure
that will facilitate the active participation
and involvement of resource owners in the
mainstream activities of the industry by
2003.
Promotion of the production and
§ Pine product export earnings increased by
export of value added timber products.
50 percent by 2005.
§ Mahogany resource valued and quality
testing conducted by 2003.
§ Strategic partner(s) identified for
harvesting and processing by 2003.
§ Mahogany harvesting commences by
2004.










7.4: Marine Resources
Goal: Sustainable utilization and development

Fisheries are now the third largest export of fisheries and marine resources
industry. With an EEZ covering 1.3
million square miles of ocean, Fiji has a rich resource for commercial exploitation and to
meet the subsistence needs of 90 percent of villages located on the coast. The sector accounts
for 1.5 percent of GDP and has considerable potential for expansion.

The tuna industry dominates the sector. Pacific Fishing Company (PAFCO), cans tuna using
yellow fin, skipjack and albacore, and processes tuna loins for Bumble Bee. Most tuna is sold
duty free to the United Kingdom. However, as with sugar, a steady erosion of the preferential
prices is expected. Large tuna (albacore, yellowfin, skipjack, and bigeye) are also exported to
the Japanese sashimi market and the US.

PAFCO operations are constrained by supply problems, even though the tuna resource is
fished at levels well below the maximum sustainable biological yield. The company recently
entered into a strategic alliance with an international company, Bumble Bee. However, the
EU rules of origin requirements have acted as a significant barrier to the development of
commercial fleets.

There is scope for expansion in the longline tuna fishery, which exports to the high quality
sashimi market in Japan and the US. However, methods used by tuna long liners are reported
to be having an adverse impact on the resource of other pelagic species.

Consistent with international and regional obligations, such as the Monitoring, Control and
Surveillance (MCS) Treaty, a total allowable catch (TAC) limit of 15,000 tonnes has been set
for targeted species such as yellow fin, albacore, and big eye tuna and biketes such as marlin,
wahoo and ogo. The Ministry of Fisheries and Forests monitors the TAC through visual
monitoring systems and “catch-log” submissions by fishing companies.

The unsustainable use of resources in artisanal fishery, such as, mangroves harvesting, and
selling undersized fish and crustaceans, is now becoming a concern. As a result of inadequate
education and short-term monetary gain, abuse of marine resources and its environment
continues to increase.

The crustacean, mollusc and beche-de-mer resources are now under considerable
management pressure due to reclamation of mangrove areas and conversion to other uses –
sugarcane, tourism and urbanisation. Similarly, some of the coral reefs are under threat from
pollution, erosion and mining.

Opportunities offered by other potential industries need to be developed further. The
possibility of expanding tilapia and prawn farming, Carrangeenan Seaweed Industry, and the
Pearl industry should be explored fully.












Policy Objectives
Key Performance Indicators
To ensure sustainable
§ Sustainable Development Bill provisions
development of fisheries and
relating to fisheries resources enacted and
marine resources.
implemented by 2005.

§ Regular surveillance of EEZ undertaken and

catches monitored.
§ A moratorium on reef mining implemented by
2003.
§ Mangrove Management Plan reviewed by 2003.
§ TAC and licensing reviewed by 2004.
To promote production and
§ Fisheries product export earnings increase by
export of value added fisheries
10 percent by 2005.
products.
§ New markets for existing products and new
products for existing markets identified.
§ Seaweed and pearl industries expanded.
§ Increased air cargo capacity to facilitate
exports.
To increase community
§ 10 community-owned companies established by
participation through
2005.
ownership in fish and fish
§ Offshore Fishing licenses offered to indigenous
processing companies.
Fijians full utilized by 2005.
§ Formulation of an acceptable structure that will
facilitate the active participation and
involvement of resource owners in the
mainstream activities of the industry by 2003.
To provide appropriate
§ Port handling facilities improved by 2004.
institutional and physical
§ National, regional and international legislation
infrastructure to support
consistent and compatible favourable to the
development in the sector.
expansion of the sector.
§ Tuna Development and Management Plan
implemented by 2003.
§ Rents from distant nation vessels increased to
economic levels by 2003.
§ Self-managed Industry Councils operational
by 2004.
§ Management Plan for customary fishing rights
developed by 2005.
§ Management Information System (MIS) in
place to monitor and manage the quantity and
quality of coastal and fisheries resources.











7.5: Tourism
Goal: A sustainable, growing and

globally competitive industry
The tourism industry has become one of Fiji’s
largest sources of economic growth in comparison with other industries such as sugar,
fisheries, garment and forestry. The sector is mainly private sector driven, and has grown
substantially over the past 32 years.

Tourism contributes approximately 17 percent to GDP and provides employment directly and
indirectly to an estimated 40,000 people. In terms of earnings and tourist arrivals the industry
recovered tremendously well from the political crisis of 2000. In 2001, tourist arrivals totaled
348,014, an 18.3 percent increase from 249,070 in 2000. Arrivals are expected to surpass the
1999 peak figure of 410,000 by 2003.

Government is committed to further developing the sector and tapping its potential to the
fullest extent possible. The focus will be on expanding mainstream tourism and on promoting
sustainable ecotourism development. Efforts will also be directed at increasing the
participation of resource owners in the industry in particular ecotourism.

Ecotourism is considered the most viable means of spreading the tourist dollar
beyond the industry’s traditional areas of concentration and of increasing the retention of the
tourist dollar. Ecotourism also provides enormous potential for the involvement of indigenous
Fijians and Rotumans.

Based on a recent survey there are 22 current licensed eco-tourism operators in Fiji. The
majority of eco-tourism operators are based on the Western side of Viti Levu but there are a
number of operators in other parts of Fiji: Kadavu, Vanua Levu (mostly in Taveuni and
Savusavu) and one in Vanuabalavu, Lau. Most operators are indigenous Fijians and
developing this sector is in line with government policy of assisting Fijians in business.
Training is a critical need for the operators in this sector.

The tourism sector is constrained by the lack of up-market accommodation and airline
capacity. Other constraints include – a lack of infrastructure development; investment returns
not matching perceived risk in the sector; land disputes; industrial relations disputes; and
degradation of natural resources and the visual pollution of litter.

But the tourism sector has numerous advantages and opportunities for further development.
Ecotourism has great potential and can capitalize on Fiji’s natural environment, on the
friendliness of the people, and on Fiji’s rich cultural heritage. Upcoming events also provide
opportunities to increase arrivals, for example the 2003 South Pacific Games and the 2003
Rugby World Cup hosted by Australia.

The proper development and training of labour is vital to the growth of the sector. Industry
training is mainly carried out in the School of Hospitality and Tourism, Fiji National Training
Council and University of the South Pacific.











Policy Objectives
Key Performance Indicators
To increase visitor arrivals.
§ Direct flights to new markets.
§ Over 448,000 visitors by 2004. Target 500,000
visitors by 2005.
§ An additional 2000 rooms available with the new 3
to 5 star hotels completed by 2005.
§ Hotel Aids Act reviewed by 2003.
§ “Keep Fiji Clean” program established by 2003.
§ Three year rolling plan for FVB established by
2003.
§ “Tourism areas” established to improve destination-
marketing campaigns such as Destination Suva by
2003.
§ Mid term review of Tourism Development Plan by
2003.
§ National Tourism Council formalised by 2003.
To increase economic
§ 26,500 new jobs created by 2005.
contribution and the
§ Tourism Satellite Accounts implemented by 2004.
retention of the tourist
§ Tourism investment regime reviewed by 2004.
dollar.
§ Establishment of Nadi Bay and Mamanucas as Pilot
Tourism Development Area by 2005.
§ Increased local supply of agriculture produce to
hotels and restaurants.
§ Increased length of stay and higher hotel occupancy
rates.
§ Regular public awareness programmes such as Bula
Pride.
To increase resource
§ More resource owner businesses established.
owner’s participation in the
§ Resource owners’ representative body established
tourism industry.
by 2003.
§ More senior management positions held by resource
owners.
To promote Human
§ New Hotel Training School operational established
Resources Development in
by 2004.
tourism.
§ Maintain and strengthen management training
programmes.
§
Scholarship provision for higher education.
To promote sustainable
§ 2 nature parks and walkways by 2004.
eco-tourism development
§ 2 marine parks by 2004.
and public awareness at all
§ Best practice framework for ecotourism by 2003.
levels of society.
§ At least 50 percent of nature based and community
based tourism operations meet or exceed ecotourism
best practice guidelines and standards by 2004.
§ Ecotourism awareness education for hosts and
guests established by 2005.









7.6: Manufacturing and
Goal: Globally sustainable and competitive
Commerce
manufacturing and commerce industry

Manufacturing is a significant and dynamic industry contributing 15 percent of GDP and
benefiting around 28,000 people. The main components of the sector are: textile, clothing
and footwear (TCF) production, sugar production, beverage and tobacco production, food
processing, and wood based industries.

Textile, clothing and footwear have become a major export industry following its
establishment in 1988. The TCF industry has faced significant difficulties due to uncertainty
over the extension of the new SPARTECA arrangement. The Australian Government had
agreed in March 2001 to a replacement preferential access scheme for TCF, which will run
for two years. In 1998, a TCF Industry Plan was prepared and established a co-coordinated
approach towards achieving a sustainable industry that is more efficient, internationally
competitive and less reliant on special preferential access.

Other industries such as agro based food processing, including canned fish and canned beef,
canned fruits and furniture manufacturing have the potential for further development in the
various regional centres. Wood manufacturing for veneer, plywood and furniture has
significant potential for expansion. Retail and wholesale trading is expected play a
significant role due to increased imports of goods. In the Sugar industry, production is still
clouded by the pending loss of preferential prices. Levels of sugar manufacturing have
stagnated over the decade and declined in recent years mainly due to the prolonged drought
in 1997, land tenure issues, low sugar content and inefficiencies in the operation of the sugar
mills.

Government bureaucracy and red tape, utility costs, and lack of competitive domestic markets
contribute to high business costs and erode international competitiveness. Slow investment
approval process affects investment implementation in the manufacturing industry and other
sectors. The lack of industry plans for other manufacturing industries and promotional
brochures is also constraint.

Reduction in protective tariffs, removal of licenses and erosion of preferential access means
that greater emphasis must be placed on consumer interest and protection to address fair
trade, product standards and monopoly regulations. Ultimately, Fiji needs to become
globally competitive and productive and be able to reposition the manufacturing sector
around competitive domestic and international opportunities. The current approach by
Government is to diversify the manufacturing base, expand competitive niche industries with
high value-added components and increase investment through the Fiji Investment
Corporation, which is a public-private sector partnership approach.











Policy Objectives
Key Performance Indicators
To promote the diversification of
§ Industry plans and promotional brochures
the manufacturing base and
focussing on manufacturing based industries
expanding competitive niche
prepared by 2004.
industries with high value-added
§ Agro-based manufacturing products
components.
researched by 2004.

§ Appropriate technology policy adopted by
2003.
§ Internet users and e-commerce transactions
by Fiji companies increased by 2003.
§ New sugar by products researched and
manufactured by FSC by 2005.
To develop a sense of partnership
§ Joint ventures between Government and the
between government and private
private sector established through the Fiji
sector to increase productivity
Investment Corporation (FIC).
§ Infrastructure provided for private sector
investment projects.
§ Contracting out and opportunities for
private sector in public services increased.
§ Investment approval process and
responsible agencies reviewed by 2003.
§ Government red tape reviewed by 2003.
§ Investment Incentive Scheme reviewed
annually.
§ Delays in responding to private sector
requests and queries by ministries and
public enterprises reduced by 2004.
§ Private/Public Sector Consultative
Committee established by 2003.
To encourage decentralization
§ Industrial subdivisions with appropriate
program as a means of taking
infrastructure support established in Navua,
commercial and manufacturing
Sigatoka, Ba, Tavua, Rakiraki, Savusavu
activity to rural areas.
and Labasa between 2003-2005.
§ Value added manufacturing in regional
centres increased by 2005.
To enhance consumer protection
§ Consumer awareness and training
and awareness.
programmes increased by 2003.
§ Technical secretariat capacity established
under the Commerce Commission by 2003.
§ Monopoly regulation and investigation
consolidated under Commerce Commission
by 2004.
§ Product standards and weights and
measures enforced.
§ Protective tariffs to be reduced.
§ National Laboratory for product testing
established by 2005.
§ Prices and Incomes Board (PIB) reviewed
and restructured by 2003.





7.7: Mineral and Groundwater
Goal: Sustainable development of
Resources
mineral and groundwater resources

Geoscience, particularly its application in the exploration and development of Fiji’s mineral
and groundwater resources, has the potential to make a significant contribution to economic
growth through: i) increased assessment and development of onshore and offshore mineral
and energy (hydrocarbons, geothermal energy) resources; ii) development of sustainable
water supplies for urban, rural and outlying islands; and iii) the development of additional
bottled or “mineral” water projects. Geoscientific information also assists in the mitigation of
natural disasters such as earthquakes, tsunamis and landslides.

However, the development of mineral resources has been constrained by a number of factors
such as capital intensity of exploratory work without any immediate returns, land access and
security of tenure, political instability, low commodity prices, lack of research and
development, inadequate human resources development, lack of new basic resources data,
cumbersome application process, red tape, fiscal regime that does not attract exploratory
work, legislation and health and safety issues.

In 2001, the Mining & Quarrying sector contributed 2.5 percent of GDP. Although the sector
is dominated by the mining operations at the Emperor Gold Mine (EGM) in Vatukoula,
significant operations such as dredging, gravel extraction, quarries do exist elsewhere in Fiji.
EGM employs around 1800 persons, excluding casual and contract staff, and is currently
upgrading infrastructure that is projected to increase production. Other exploration activities
and quarries also employ significant numbers of workers, depending on the type of operation
and exploration phases.

Gold and silver are the major commodities exported and explored although exploration is
also underway for other base metals such as copper, bauxite, and marble. Between 2000 and
2002, exploration activity was slow with work carried out at EGM, Namosi, Wainivesi,
Qalimare, and Vanua Levu. Significant additional exploration is planned for Namosi by
Japan’s Nittetsu Mining Company.

Nonetheless, given the favourable market conditions, such as the recent increases in world
gold prices and the high quality of Fiji’s groundwater, Government is aware of the potential
for growth in this sector. The success story of “Fiji Water” highlights the need to protect the
groundwater resource both from over use and from deleterious human activity.

Realising the full potential of the sector means taking measures to address the sector’s
constraints. In particular, the legislative framework needs to be addressed to cover the risks of
land tenure and access, environmental monitoring, health and safety issues, security of tenure
for exploration and mining titles and water resources. In addition, for resource development
activity to grow in the sector adequate investment is needed particularly to provide additional
and new geological information. Also, Government will ensure that landowner concerns with
regard to their role and benefits from resource development on their land are addressed.










Policy Objectives
Key Performance Indicators
To increase foreign and
§ Promotion and marketing activities integrated with FTIB
local investments in
program by 2003.
mining and mineral
§ Exploration expenditure increased by 15-20 percent
exploration.
annually.
§ Fiscal initiatives to attract and retain mineral exploration
investment developed.
§ At least one new mining operation by 2005 or exploration
projects moved to significant feasibility stage.
§ Mineral mapping and feasibility studies of industrial
mineral projects (e.g. lime, marble) conducted by 2004.
§ Improved full web access to all MRD geo-science
information by end 2004.
To ensure security of
§ Mining Act incorporating modern concepts regarding
land tenure and
OHS and sustainable development reviewed and passed
occupational health and
by 2004 after full consultation with stakeholders.
safety standards.
§ Mines inspectorate strengthened from 2003 onwards.
§ Mineral Development Committee reactivated by 1st
Quarter, 2003.
§ Compensation Policy for minerals adopted in 2003.
To increase public
§ Development and distribution of awareness brochures in
awareness of resource
vernacular by 2004.
exploration and
§ Information on mining sector in school curriculum
development.
improved by 2004.
§ Centralise geological data through the establishment of a
National Centre for Mineral Information by 2005.
To ensure sustainable
§ Groundwater legislation as part of comprehensive water
development of
legislation developed and put in place by 2004.
groundwater resources.
§ Water Resources Management Committee established by
1st Quarter 2003.
§ Appropriate standards for bottled water developed by
2003.
§ Royalty regime for commercial exploitation of
groundwater and legislative initiative put in place by
2004.
§ Groundwater assessment and development projects in
rural areas and small islands prioritised and undertaken
systematically.
To promote exploration
§ Geological databases established and upgrade process
in frontier areas (offshore
established by 2004.
and industrial minerals
§ Marine Mineral policy finalized in 2003 after full
and other areas.)
consultation.
§ New geological mapping projects to upgrade resources
databases, particularly on green fields or prospects
initiated.









7.8: Financial Services
Goal: An effective, competitive and stable

financial system that will enhance
Fiji’s financial sector comprises three major
economic growth and development
institutions: the banking system, the
insurance industry and other non-bank financial institutions such as the Fiji National
Provident Fund (FNPF), Home Finance company, South Pacific Stock Exchange (SPSE) and
credit unions.

As financial markets become more developed and competitive so must the financial
regulatory environment. Regulation of financial services must be flexible, independent and
have defined levels of public, parliamentary and legal accountability. In this regard,
Government intends to rationalise existing financial regulations to ensure that the sector is
more transparent and driven by clear statutory objectives. This is line with the
recommendations of the Committee of Inquiry into Fiji’s Financial System (COIFS).

Government also supports the progressive liberalization of capital markets to mobilize
domestic savings more efficiently and broaden the range of financial products and services
available to investors. At present, the domestic debt and equity markets remain less
developed than other markets in the financial system.

The deregulation of the superannuation and pensions market remains the most significant
reform required. The market is wholly represented by the FNPF, currently the only source of
pension income for most retirees. Government recognises that FNPF’s dominant position
constrains the development of the market. In 2001, total assets of the FNPF were around 43
percent of the total assets of the financial system and, due to its huge capital base it accounts
for the majority of total investments in government bonds as well as money market
instruments. It is also vital to enhance public debt management to ensure the prudent
management of public finances in order to prevent government taking resources away from
the private sector.

Government is concerned about the withdrawal of basic banking services from rural areas
and has undertaken a survey in 2002 to assess rural demand. Government has also reviewed
the functions and operations of the Fiji Development Bank (FDB). Prescribed investment
requirements for life insurance companies have been largely relaxed following the 2001
Budget. However, continuous review of the industry is required to enhance the effectiveness
and competitiveness of the financial system.

Micro finance based institutions (Cooperatives, Credit Union Leagues and Money-lending) in
Fiji have grown over the years. Whilst most of these facilities serve a useful purpose in
capturing the lower and middle level income families, there needs to be appropriate
legislation and regulation in place to ensure that the interests of these institutions and
borrowers are protected. The National Centre for Small and Micro Enterprise Development
will play an important role in the provision of business support and micro finance to small
and micro enterprises.











Policy Objectives
Key Performance Indicators
To rationalise the
§ Phased implementation of recommendation of COIFS
existing regulatory
report, 2003 - 2005.
regime.
§ Prescriptive regulatory legislation such as Trustee Act,

Companies Act, CMDA Act, RBF Act, Insurance Act,
FNPF Act, Exchange Control Act, Consumer Credit Act
and Credit Union Act reviewed by 2004.
§ Money-laundering unit within the Serious Crimes
Investigations Unit established by 2003.
§ RBF’s supervisory role widened to include smaller entities
like foreign exchange dealers in 2004.
§ Feasibility of a Financial Services Regulator examined by
2005.
§ Micro finance regulations established by 2004.
To further develop the
§ Feasibility of incentives to encourage companies to list on
capital market.
the stock exchange examined in 2003.
§ Number of companies listed on SPSE increased.
§ International best-standard insurance and funds
management practices established by 2004.
To improve access to
§ FDB review recommendations evaluated for
banking services.
implementation in 2004.
§ Rural banking survey recommendations evaluated and
implemented by 2004.
To encourage
§ Bank Fees and charges disclosure enforced.
transparency in the
§ Current bank fees and charges reviewed in 2003.
financial services.
§ Standard of financial journalism and reporting in the
media improved by 2004.
§ Domestic credit rating bureau established and operational
in 2003.
To de-regulate Fiji’s
§ Trustee Act restriction on investment relaxed in 2003 with
superannuation sector.
Risk Management policies included.

§ Restructure and rationalisation of FNPF’s operations by

2004.

§ FNPF’s monopoly to be reviewed.
To review current
§ Appropriate legislation by 2004.
auditing procedures
To enhance the public
§ Fixed-schedule bond program for deficit funding
debt management
established by 2003.
system.
§ Benchmark bonds, Treasury Bill issuance and

Government guarantees examined and reviewed in 2003.
§ Retail bonds to broaden the range of instruments
introduced by 2004.
§ Government guarantees on debt issued to state- owned
entities reviewed in 2003.
§ Embedded call options on issued bonds to be removed by
2003.





7.9: Information & Communication
Technology Services
Goal: Universal access to internationally

competitive information and
Telecommunications and associated communication technology services
activities is an industry that has immense
potential for boosting Fiji’s employment, for improving the efficiency of the private and
public sectors, and for improving access to services for rural dwellers. Realising the potential
of the sector requires much more widespread use of phones, data and the Internet. The high
cost of these services is restraining future growth.

However, the current monopolistic framework for telecommunications in Fiji is a serious
constraint. There is no credible evidence internationally that monopoly providers (especially
public or semi-public enterprises) are capable of nurturing efficient competition, let alone
becoming globally competitive in the provision of telecommunications and Information and
Communication Technology (ICT) services.

On the positive side, the recent completion of the Southern Cross fibre optic cable linking Fiji
to Australia, New Zealand and the United States provides hugely expanded capacity for
international voice and data traffic including Internet services. The higher capacity will
provide an incentive to lower prices to internationally competitive levels. In the longer term,
Government is concerned with making the telecommunications sector more efficient through
liberalisation and more competition and the elimination of exclusive licenses. Lower prices
will provide opportunities for the establishment of ICT services such as call centres and data
processing operations.

The domestic telecommunications industry comprises companies that are partly privatised
and partly publicly owned, and operate as monopolies under exclusive license arrangements.
Telecom Fiji Limited (TFL) has an exclusive license to provide national telephone, telex and
data services. FINTEL has an exclusive license to provide international services. Vodafone
Fiji Limited (VFL), a subsidiary of TFL (51 percent owned by TFL) provides cellular mobile
telephone services under the exclusive license of TFL.

All three companies are owned by Amalgamated Telecom Holdings Limited (ATH), which
was formed in 1998. Following the public offer in March 2002, ATH is owned by
Government (34.6 percent), FNPF (58.2 percent), and by members of the public (7.2 percent)
such as individuals, companies, trusts, clubs and provincial councils. ATH also has
management rights to Government’s 51 percent share of FINTEL, which entitles ATH to 80
percent of the dividends.

The existing monopolies enjoyed by ATH’s various companies mean that they are not subject
to direct competition. However, the existing licenses do not prevent the entry of new Internet
Service Providers (ISPs), although none have so far started any new service.

Rapid technological change in the sector has reduced the cost of expanding the telephone
network to rural areas. A joint effort between Government and TFL aims to enable easy
access to telecommunications to and from the rural and remote areas and to upgrade the
networks in these areas to a level similar to that delivered to urban areas. Greater rural
coverage by phone and Internet will provide opportunities for both the development of rural
based enterprises and will also allow the development of “telehealth”, distance education and
“e-Government”.




Policy Objectives
Key Performance Indicators
To reduce telecom rates in the short
§ Reduction in telephone charges by an
term by promoting more discussions
average of 15 percent by 2005.
between potential investors in ICT

services and FINTEL/Telecom Fiji to
§ At lease one international call centre
negotiate favourable rates under which
established by 2003.
the investments would be viable.

Increased coverage of
§ Telecommunication access to at least 400
telecommunication services especially
more unconnected villages by 2005.
to rural areas.

In the medium term, liberalisation of the
§ Telecommunications legislation and
telecommunications sector through
regulatory body established by 2004.
more competition and the removal of
§ Exclusive telecommunications licenses
exclusive licences.
removed by 2005.
§ Increased competition with more Internet
Service Providers (ISP).
§ Quality standards comparable to the global
market established by 2004.
To ensure the regulatory and legal
§ All ICT related legislation reviewed and
framework functions to promote ICT
amended by 2003.
development.
§ A fully developed internationally
compliant privacy system for the handling
of information in the ICT sector in place by
2003.
To align Fiji’s ICT training to
§ An additional 10 schools per year with
developments in the employment
computers and internet access. Corporate
market.
sponsorship provided for additional

schools.
§ Teachers’ computer skills upgraded.
§ ICT employment skills training modules
adopted by IT training providers by 2004.
To introduce “e-government” in order to
§ Integrated e-government development plan
raise efficiency of service delivery.
adopted by 2003.
§ Suitable government services available
through the internet by 2005.









7.10: Transport

Goal: To provide an integrated transport system
Roads: From 1987 to 1998 over 350 that is safe, efficient, affordable, accessible to all
km of roads have been upgraded at a and environmentally sustainable
cost of around $150m. An additional
125 km of roads is currently being upgraded under the third stage of the Fiji Road Upgrading
Programme at a total cost of $131m.

Reforms in the Land Transport Sector commenced with the establishment of the National
Road Safety Council in 1997 and more recently the establishment of the Land Transport
Authority in 2000. Further reforms include the creation of a separate Department for
National Roads and the privatisation of plant inventory for hire by both the public and private
sector. This is the first step towards the establishment of a Fiji Roads Authority (FRA) to
improve efficiency and cost recovery.

Aviation: Domestic airstrips around the country have undergone major upgrading, which
has contributed to improvement in services provided to rural and outer islands. The
improvements at Nausori Airport have allowed direct services to Australia and New Zealand.
The Civil Aviation Authority of the Fiji Islands (CAAFI) now exclusively undertakes the
aviation regulatory role including the enforcement of State obligations and safety standards
required by the International Civil Aviation Organization (ICAO). The newly formed
Airports Fiji Limited (AFL), which is now responsible for both domestic and international
airport management, has the opportunity to develop its capability to improve the quality of
services provided.

Ports and Shipping: Fiji is a member of the International Maritime Organisation (IMO)
and is party to the Conventions that deal with maritime safety and protection of the marine
environment. Safety standards, as articulated in IMO Conventions, are continuously being
improved and Fiji must comply with these standards in both domestic and international
shipping.

Adequate domestic shipping services are now in place to larger islands while the Inter-island
Shipping Franchise Scheme subsidized by Government continues to provide services for
uneconomical routes. The franchise scheme has generally been a success in terms of rural
access and affordability and is currently under review to further improve services and
operations.

An integrated port development and rehabilitation programme is currently underway with
funding assistance from the Asian Development Bank to upgrade the Suva and Lautoka ports.
Construction and upgrading of jetties, dredging of reef passages, and the upgrading of
navigational aids will continue. In order to salvage the construction and ship repair business,
government has re-purchased Fiji Shipbuilding Corporation Limited (FSCL) and will
restructure its operations to become viable.

Major constraints in the sector include the low level of efficiency of operations especially in
road transport, the ports, and services to the outer islands. There is also a lack of clear
demarcation for regulation of the port industry. Vehicle emissions are now a major source of
air pollution and awareness of road safety remains very low. Government policy is guided by
an integrated approach to transport, which is reflected in the long-term Fiji National
Transport Sector Plan (FNTSP).





Policy Objectives
Key Performance Indicators
Road Transport
§ Department for National Roads established by
To protect the high level of investment in
2003.
the national road network through effective § Fiji Road Authority, with cost recovery system,
controls on vehicle overloading and
established by 2005.
ensuring adequate maintenance through
§ Installation of fixed weighbridges at strategic
road cost recovery.
locations around the country by 2003.
To continue investment in the construction, § An additional 200km of road tarsealed under the
maintenance and upgrading of the national
Fiji Road Upgrading Project (Stage 3) by 2005.
road network, with emphasis on
§ Feasibility study on mass transit system along
maintenance and upgrading.
Suva-Nausori Corridor by 2004.
§ New Rewa River Bridge by 2005.
§ Vunidawa Road upgraded by 2003.
To reduce vehicle emissions to
§ Vehicle emission levels reduced by 50 percent by
internationally accepted standards.
2005.
Marine Transport
§ Outer island franchise scheme comprehensively
To improve shipping services and shipping
reviewed by 2003.
infrastructure.
§ 2 outer island jetties upgraded per year.

§ Suva and Lautoka Ports upgraded by 2005.
§ Management and maintenance of outer island
jetties reviewed by 2003.
§ Complete review of the restructure of government
shipyard by 2004.
Air Transport
§ Increased air servic es to meet projected number of
To promote the development of the
visitor arrivals of 450,000 per annum.
aviation industry in support of the tourism
§ Improved runway capacity to meet additional cargo
industry as well as new and expanding
requirements by 2005.
industries relying on air freight.
§ Utilisation of additional air traffic rights under

existing ASAs by 2005.

§ Restructure and reform AFL in line with
international benchmarks by 2003.
Inter-modal
§ 80 percent of PWD’s transport construction
To promote efficiency in the provision of
activities outsourced by 2005.
transportation services and infrastructure
§ Increased level of private-sector participation in
through corporatisation, commercialisation
transport services and infrastructure, including the
and outsourcing of maintenance and
Build, Operate and Transfer (BOT) concept.
construction activities.
§ Public Works Department internally reorganized by
2003.
§ Port Sector reform with clear separation of
regulatory, social and commercial functions fully
implemented by 2003.
To maintain a high level of safety in public
§ Reduction in number of road transport incidents
transportation system through
and accidents by 15 percent by 2005.
implementation and enforcement of the
§ Full compliance with international air transport
Road Safety Action Plan, compliance with
safety obligations of ICAO.
measures and standards prescribed by the
§ Marine training facilities/standards upgraded to
International Maritime Organization (IMO)
ensure Fiji remains on the IMO STCW white list.
and the International Civil Aviation
§ Full compliance with OHS requirements for all
Organization (ICAO).
modes of transportation.
To ensure access to affordable
§ Improved capacity and condition of transport
transportation services, infrastructure and
infrastructure and facilities.
supporting public amenities for the public.
§ Guiding principles for transport subsidies
established by 2004.



7.11: Energy
Goal: To facilitate the development of a

resource efficient, cost effective and
Around 60 percent of electricity
environmentally sustainable energy sector
requirements are met by hydropower
with most of the balance coming from imported petroleum products. The proportion of Fiji’s
total population currently having direct access to power supplied by the Fiji Electricity
Authority is 60 percent compared to 54 percent in 1990.

Based on the population and housing census of 1996, 87 percent of the total number of urban
households had access to some kind of electricity supply compared to 75 percent in 1986. In
terms of rural access, 49 percent of the total number of rural households had access to
electricity supply in 1996 compared to 31 percent in 1986.

The level of electricity generated by FEA in 2002 was approximately 555 GWh and has
increased over the last five years from 449 GWh in 1997. The total number of consumer
accounts using electricity services from the FEA grid has also increased from 99,676 to
120,000 over the same period and is forecast to increase by 5 percent per annum during the
next three years.

Since the inception of the Rural Electrification Scheme in 1975 a total of 569 schemes have
been installed under a cost sharing arrangement between Government and the rural applicant.
A total of about 85,350 people of the total rural population have benefited from this scheme.

Retained petroleum imports over the last few years have declined from 378 million litres in
1998 to approximately 265 million litres in 2001 with the transportation industry as the major
user. There are prospects for moving towards greater self-reliance through the
implementation of renewable energy projects. Government, with assistance from the UNDP,
is currently developing an infrastructure that would remove barriers that hinder the adoption
of renewable energy systems and allow the establishment of Renewable Energy Service
Companies (RESCOs) in Fiji. Government will formulate a comprehensive national energy
policy to address renewable energy, efficiency and affordability, and environmental
sustainability. This is in accordance with the commitments made by Government in the Plan
of Implementation on Sustainable Development agreed to in Johannesburg in 2002.

The reform of the power industry is a Government priority. The FEA internal restructuring
has begun to improve operational efficiency and provide better services. Reforms also
include the encouragement of private sector participation through Independent Power
Producers (IPP’s) and RESCOS in electricity generation. The merit of legislation to transfer
the regulatory role to another agency would also be explored.

There has been insufficient funding for the rural electrification programme leading to a
backlog in maintenance activities thus escalating future maintenance costs. The preparation
of the Government’s Public Sector Investment Programme would treat the scheme as a
priority investment that would be phased over the next three years.




Policy Objectives
Key Performance Indicators
To ensure that demand for reliable and
§ 95 percent of the urban population have
affordable electricity is adequately met
access to electricity by 2005.
by FEA and the Rural Electrification
§ 50 percent reduction of FEA power
Programme.
disruptions by 2005.
§ 300 additional villages and settlements
having access to electricity by 2005
§ National Energy Policy formulated by
2003/2004 and implemented by 2005.
To ensure that the diesel power
§ Overhauling of 185 schemes installed
generation systems installed under the
under the old RE policy by 2005
old Rural Electrification policy (1974)
§ Savings from reduction in maintenance
are overhauled and incorporated under
and repair of old schemes of $1600 per
the terms of the current Rural
annum per scheme from 2003.
Electrification Policy (1993).
To encourage private sector
§ At least one Independent Power
participation in power generation.
Producer by 2005.
To increase efficiency, accountability
§ Implementation of current FEA
and cost effectiveness in FEA
Restructure Plan by 2003.
operations.
To develop and establish an
§ RESCOS providing 146 MWh of
infrastructure that will remove barriers
electricity from renewable sources for
that hinder the adoption of renewable
rural communities by 2005.
energy systems and thus enable the
§ Charter for establishment of RESCOS
establishment of Renewable Energy
introduced by 2003.
Service Companies (RESCOS).
To promote energy conservation
§ 30-40 percent in total energy savings
technologies through increased
from identified government buildings
community awareness.
by 2005.

§ Department of Energy and FEA
actively promoting their conservation
services.





















7.12: Water and Sewerage

Goal: Increasing access to safe drinking water
The proportion of Fiji’s population
and a sanitary waste disposal system
with access to clean piped water is
about 70 percent compared to 60 percent in the mid eighties. The proportion of the population
having access to treated sewerage facilities is approximately 15 percent.

The Government through the Water and Sewerage Section of the Public Works Department
(PWD) of the Ministry of Works and Energy is responsible for the construction operation and
maintenance of water supplies and sewerage services.

Government recognises the need for investment in upgrading and expanding services and has
increased the Ministry of Works funding for this. It is widely acknowledged, both by the
public and the Government, that the overall level of service around the major urban centers
needs major improvement.

Government is continuing to implement the Suva/ Nausori Regional Water Supply Master
Plan improvement and expansion programme. The plan addresses the urgent need to augment
the Water Supply and Sewerage Systems to meet the current and future demands of the
densely populated Suva-Nausori corridor. In 2001, work started on the installation of new
pumps to increase water capacity in main distribution lines and the extension and
refurbishment of the Waila Water Treatment Plant in Nausori. The Master Plan was revised
and updated in 2000 and its full implementation requires substantial funding. The
Government is seeking loan financing to implement the Plan.

Government continues to assist the provision of water supplies to rural maritime and
mainland areas under the Self-Help Rural Water Supply Scheme and the Borehole Subsidy
Scheme. The Self Help Rural Water Supply Scheme is mainly designed for rural
communities, villages and schools and operates on a one third to two thirds costs sharing
basis between the beneficiary and Government. Under the Borehole subsidy scheme,
Government subsidises up to one thousand dollars per borehole for individuals or a collection
of farmers living in scattered rural areas.

Future demand for sewerage services in the greater Suva area is being met by the extension of
the treatment facility at Kinoya and the installation of special equipment. Works on the
Kinoya Outfall, which commenced in 2001, will continue with European Union funding.

The major constraint facing the sector is the low level of cost recovery in the provision of
water and sewerage services resulting from the low level of water charges and inefficient
operations. Government is committed to improving cost recovery through greater efficiency.
To this end Government will corporatise urban water and sewerage operations. Priority will
also be afforded to improving access to safe drinking water and sanitary waste disposal
systems in the rural areas.







Policy Objectives
Key Performance Indicators
To provide access to reliable and
§ Master plan for 100 percent provision, on a
adequate supplies of clean water for
participatory basis, of potable piped water to
both urban and rural centres through
rural areas prepared by 2004.
expanding the rural water supply
§ Adherence to the individual Master Plan
scheme and the extension and
yearly targets.
upgrading of major urban and
regional water schemes as outlined in
their respective master plans.
To provide access to sanitary and
§ 60 percent of the urban population with
environmentally safe sewerage waste
sewerage connection by 2005.
systems and treatment facilities.
§ Kinoya Outfall completed by 2003.
§ 80 percent of the rural population have water
seal toilets or other sanitary waste disposal
systems by 2005.
To improve efficiency of the Water
§ Water and Sewerage services corporatised by
and Sewerage services.
2005.
§ Private sector participation in the provision
and maintenance of water and sewerage
services increased through outsourcing with
at least 15 contracts in place by 2004.
§ Level of “unaccounted for water” reduced by
30 percent by 2004.
§ Piped water shortages and breakdown
reduced by 30 percent by 2004.



















































APPENDIX





























Table 1: Gross Domestic Product by Sector, 1985-2001 ($000)


















Sector
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999 2000(p) 2001(p)


















1. Agriculture, Forestry &
















Fishing
156,160 186,027 173,768 169,968 344,592 328,930 323,503 335,199
337,786 374,828 362,770 369,480 321,309 298,253 346,156 343,664 349,681
Crops
84,155 113,374
94,128
87,660 195,143 179,852 172,361 183,249
183,461 210,831 193,247 193,453 154,837 124,967 166,589 159,602 156,855
Sugar Cane
58,639
85,943
68,606
62,070 154,437 137,407 130,249 142,720
147,844 172,484 153,118 152,139 116,346 85,715 121,357 112,239 104,214
Other Crops
25,516
27,431
25,522
25,590
40,706
42,445
42,112
40,530
35,617
38,347
40,129
41,314
38,491
39,252
45,232
47,363
52,641
Livestock Products
7,071
7,412
7,484
7,330
14,652
15,038
15,556
15,795
15,361
17,766
18,304
19,398
15,905
17,620
17,221
17,392
16,569
Fishing
9,762
9,410
11,792
12,511
16,372
14,519
15,076
16,324
17,064
22,438
25,147
28,825
24,914
26,209
34,911
36,849
46,122
Forestry
6,009
5,688
9,334
11,580
15,273
15,664
16,090
14,847
17,830
18,754
19,926
20,551
16,878
19,713
16,445
17,724
16,516
Subsistence
49,163
50,143
51,030
50,887 103,152 103,857 104,420 104,984
104,070 105,039 106,146 107,253 108,775 109,744 110,990 112,097 113,619


















2. Mining & Quarrying
829
1,269
1,272
1,898
56,746
55,327
36,896
49,761
50,873
46,265
46,725
61,161
62,650
50,210
59,522
51,051
51,952


















3. Manufacturing
79,271
94,621
83,898
83,192 197,771 218,326 219,928 222,839
249,695 267,262 267,744 276,855 274,675 287,876 315,505 295,891 330,152
Sugar
22,607
33,279
26,584
24,066
62,939
55,703
53,109
58,161
60,345
70,585
61,983
61,983
47,375
34,951
49,150
45,873
42,323
Other Food Industries
20,167
23,864
26,320
26,434
43,361
50,085
55,065
52,714
63,503
66,840
67,185
66,923
61,100
64,948
71,051
65,064
76,048
Clothing and Footwear




20,083
29,721
27,819
31,696
35,193
30,788
42,862
58,092
74,533
97,265 106,020 100,114 131,103
Other Industries




65,281
76,668
77,753
74,053
84,380
92,717
89,315
83,391
85,150
84,096
82,593
78,082
73,828
Self Employment
2,522
2,572
2,618
2,610
6,107
6,149
6,182
6,215
6,274
6,332
6,399
6,466
6,517
6,616
6,691
6,758
6,850


















4. Electricity & Water
8,359
8,981
8,858
9,558
51,991
54,867
56,661
61,787
63,542
68,457
71,478
77,045
79,066
81,735
89,826
87,607
91,352


















5. Construction
38,078
38,674
29,128
20,445
68,319
57,739
68,170
84,414
77,890
77,324
81,406
76,919
82,567
94,560
99,804
88,364
88,059


















6. Trade, Hotels, Cafes, etc
124,759 136,047 117,142 130,296 232,300 271,117 244,075 259,196
258,686 273,052 298,203 308,022 315,757 335,239 368,883 381,969 395,496
Wholesale & Retail Trade
99,625 109,206
97,026 107,499 188,167 223,282 200,363 214,246
212,265 220,305 245,437 254,285 259,797 275,146 303,003 331,768 343,927
Restaurants & Hotels
25,134
26,841
20,116
22,797
44,133
47,835
43,712
44,950
46,421
52,747
52,766
53,737
55,960
60,093
65,880
50,201
51,569


















7. Transport & Communications
90,344
89,764
87,661
94,593 158,420 171,618 169,305 190,778
192,663 202,916 222,678 236,262 247,236 261,551 302,986 261,757 279,092
Transport
77,017
75,656
72,998
79,862 115,989 125,529 122,413 142,258
139,817 145,506 160,267 163,913 174,208 186,664 221,943 176,572 199,098
Communication
13,327
14,108
14,663
14,731
42,431
46,089
46,892
48,520
52,846
57,410
62,411
72,349
73,028
74,887
81,043
85,185
79,994





















8. Finance, Insurance, Real
Estate

















& Business Services
97,621
98,376
95,584
96,358 209,311 231,179 229,262 235,160
242,364 252,068 256,917 255,260 237,196 235,881 253,107 248,497 238,401
Finance




94,833 111,691 110,359 113,948
118,729 125,518 128,058 126,219 111,665 108,906 120,891 115,760 107,459
Insurance




10,404
11,263
10,625
11,564
12,116
12,740
13,480
13,188
12,136
12,692
14,187
14,731
13,601
Real Estate & Business Services



35,233
38,914
38,591
39,584
40,797
42,430
43,246
42,968
39,927
39,705
42,605
41,829
40,130
Ownership Dwellings




68,841
69,311
69,687
70,064
70,722
71,380
72,133
72,885
73,468
74,578
75,424
76,177
77,211


















9. Community, Social & Pers
Services
130,050 128,993 134,766 133,205 326,446 330,886 327,686 335,619
349,395 354,259 355,434 356,577 364,640 363,530 369,829 373,928 385,015


















OTHERS
1,518
1,485
1,390
1,403
12,468
12,919
12,571
13,341
13,688
14,385
14,742
15,196
15,062
15,280
16,762
16,285
16,898
LESS Imputed Bank Services
Charges
23,317
23,688
21,953
22,634 103,085 121,410 119,962 123,863
129,060 136,441 139,201 137,202 121,381 118,382 131,411 125,833 116,809


















1,555,27 1,611,49 1,568,09 1,664,23
1,838,89 1,895,57 1,878,77 1,905,73 2,090,96 2,023,18 2,109,28
GRAND TOTAL
547,512 574,522 537,746 548,314
9
8
5
1 1,707,522 1,794,375
6
5
7
3
9
0
9


















MEMORANDUM ITEMS

















SUGAR PRODUCTION (000
tonnes)
341
502
401
363
461
408
389
426
442
517
454
454
347
255
360
336
310
VISITOR ARRIVALS (000s)
228
258
190
208
251
279
259
279
287
319
318
340
359
371
410
294
348


















Note:

















1985-1988 using 1977 prices

















1989-2001 using 1989 prices



































Source: Bureau of Statistics,
Macrotechnical Committee



























Table 2: Merchandise Exports ($m)







Year
Sugar
Gold
Garments
Fish
Lumber
Molasses
Coconut oil
Others
Re-exports
TOTAL
1985
111.8
21.8

11.7
3.1
6.5
7.6
28.1
80.8
271.4
1986
133.7
38.6

18.2
3.9
7.9
3.9
35.6
70.6
312.4
1987
186.2
50.6
8.8
25.1
10.6
10.6
3.0
39.2
74.5
408.6
1988
198.3
81.5
30.1
48.3
14.3
11.4
3.4
47.6
83.2
518.1
1989
228.3
76.2
99.3
44.8
25.4
9.8
5.3
63.4
106.2
658.6
1990
223.7
75.8
115.8
49.3
30.9
6.4
4.9
100.6
124.5
731.9
1991
220.4
46.6
131.1
46.6
26.2
13.3
2.3
68.2
109.8
664.6
1992
221.3
60.7
116.8
41.0
30.2
2.3
5.7
78.5
112.2
668.7
1993
230.7
66.7
128.8
48.3
36.4
10.0
3.7
63.8
104.0
692.4
1994
252.2
62.6
141.0
63.8
37.8
13.6
3.8
90.2
168.6
833.6
1995
276.1
58.6
185.0
69.8
53.1
21.3
3.9
102.6
105.5
875.9
1996
301.7
81.6
189.9
60.4
45.6
22.0
5.6
114.2
228.7
1049.7
1997
213.4
74.0
200.1
50.4
34.0
12.7
5.7
124.2
138.9
853.4
1998
244.2
70.5
302.8
49.5
54.7
10.6
9.1
164.2
110.7
1016.3
1999
263.2
76.4
322.1
57.5
35.6
12.4
9.7
170.7
252.9
1200.5
2000
237.5
75.7
332.9
88.8
44.9
9.7
3.6
232.4
218.1
1243.6
2001
222.0
85.4
313.9
98.4
41.3
9.5
2.4
234.8
216.1
1223.8
2002(e)
220.8
109.7
273.8
97.1
38.9
12.8
6.5
246.0
215.9
1221.5

Source: Bureau of Statistics,
Macrotechnical Committee
























Table 3: Merchandise Imports ($m)
Year
Food
Beverages
Crude
Mineral
Oils &
Chemicals
Manuf.
Machinery
Misc.
Misc.
TOTAL


& Tobacco
Materials
Fuels
Fats

Goods
Trans Equip
Manuf. Art
Transactions

1985
80.1
4.3
3.3
115.4
10.5
38.9
100.8
91.6
50.1
13.2
508.2
1986
77.7
3.5
2.9
82.1
5.9
41.3
103.2
116.2
44.5
16.4
493.7
1987
82.4
3.5
3.3
75.7
7.9
40.1
103.5
90.2
41.0
17.6
465.2
1988
110.9
5.0
4.3
88.6
11.6
66.1
155.0
138.9
57.4
21.1
658.9
1989
124.5
6.5
7.7
109.8
9.6
78.2
206.0
222.0
85.0
11.2
860.4
1990
142.9
8.2
7.6
157.1
11.2
81.6
244.2
341.6
106.6
12.0
1112.9
1991
141.4
7.9
7.9
146.3
10.1
72.5
245.2
216.3
104.0
10.2
961.8
1992
136.2
8.1
7.2
133.5
11.3
78.6
239.3
233.5
90.2
9.2
947.1
1993
166.9
9.9
6.4
132.7
13.1
82.1
251.6
306.3
126.6
14.2
1109.8
1994
165.9
10.5
7.0
137.3
12.7
89.5
279.0
377.2
118.5
12.3
1209.9
1995
182.3
13.2
9.1
137.5
16.5
92.8
337.0
312.7
139.3
13.5
1253.9
1996
195.0
13.2
8.8
185.0
14.8
102.9
358.1
331.1
161.5
14.1
1384.5
1997
194.6
11.4
11.2
195.9
14.0
108.8
384.6
287.2
172.0
12.8
1392.5
1998
205.9
9.4
9.3
159.2
13.4
89.9
391.9
376.6
167.7
10.8
1434.1
1999
189.3
14.2
9.6
273.0
16.1
110.2
431.5
483.3
234.7
16.3
1778.2
2000
220.7
10.2
15.9
298.1
13.9
117.4
486.4
345.5
239.2
9.0
1756.3
2001
310.8
13.7
13.5
271.7
16.1
143.3
417.4
414.0
200.2
7.2
1807.9
2002(e)
341.8
14.5
13.0
277.2
18.0
153.0
420.9
459.3
207.0
6.4
1911.2

Source: Bureau of
Statistics,
Macrotechnical
Committee























Table 4: Consumer Price Index
(Base: Average 12 months 1993 = 100.0)
ANNUAL
ALL
ALCOHOLIC
HEATING
DURABLE
CLOTHING

AVERAGE
INFLATION ITEMS FOOD
DRINKS &
HOUSING
AND HOUSEHOLD
AND
TRANSPORT SERVICES MISCEL - LANEOUS
TOBACCO
LIGHTING
GOODS
FOOTWEAR
SECTION
RATE













WEIGHT

%
1000.0 353.6
61.3
164.9
49.0
65.2
53.9
128.5
75.8
47.8
ANNUAL
1985
4.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
AVERAGE
1986
1.8
101.8
98.2
116.0
104.4
90.8
103.0
101.5
102.9
101.4
106.6

1987
5.7
107.6
104.2
124.1
106.2
94.2
113.1
104.6
109.7
107.9
119.9

1988
11.9
120.3
123.4
135.7
104.5
103.8
126.7
123.7
120.5
111.3
159.0

1989
6.1
127.7
135.8
140.1
106.1
103.7
136.6
135.1
123.2
112.9
173.5

1990
8.1
138.1
146.9
150.7
111.7
114.8
143.9
141.8
136.4
136.2
182.6

1991
6.5
147.1
149.3
155.1
129.1
128.3
148.5
146.0
156.1
149.8
189.1

1992
4.9
154.3
148.7
165.2
151.3
125.9
153.9
148.2
161.5
167.6
194.8

1993
5.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

1994
0.6
100.8
100.5
105.9
100.6
99.3
99.8
99.4
100.7
103.0
99.5

1995
2.2
103.0
101.2
111.0
103.2
99.5
100.0
101.4
105.4
107.7
101.0

1996
3.1
106.1
103.5
111.3
106.7
104.2
102.2
102.9
112.2
112.0
103.9

1997
3.4
109.7
108.4
119.0
109.4
108.5
103.2
104.5
114.8
113.3
105.2

1998
5.7
116.0
116.7
132.0
114.3
111.9
104.7
106.2
118.1
117.6
121.4

1999
2.0
118.3
118.8
136.8
116.3
111.3
108.6
108.7
118.7
121.0
123.7

2000
1.1
119.6
115.0
151.0
116.9
116.1
107.7
107.4
128.6
127.7
122.0

2001
4.3
124.7
119.7
160.6
118.5
122.6
107.8
108.4
146.8
124.9
124.7
Source: Bureau of Statistics










Note:












1985-1992 using 1985 prices










1993-2001 using 1993 prices










































Table 5: BALANCE OF PAYMENT SUMMARY (F$Million)


1990
1991
1992
1993
1994
1995
1996
1997
1998
1999 2000 (p) 2001 (p) 2002 (e)














CURRENT ACCOUNT













Exports f.o.b.
618.3
540.8
515.8
581.0
727.0
740.8
913.6
803.8
839.5
1047.0
1129.2
1101.5
1064.9
Imports f.o.b
950.2
810.6
809.8
1006.5 1053.7
1070.8
1179.5
1182.3
1221.3
1540.4
1518.8
1511.9
1637.2
TRADE BALANCE
-331.9
-269.8
-294.0
-425.5
-326.7
-330.0
-265.9
-378.5
-381.8
-493.4
-389.6
-410.4
-572.3














Services credit
649.1
659.2
715.1
781.8
826.1
839.2
906.4
1013.1
1051.2
1210.7
1004.8
1065.2
1219.4
Services debit
381.2
426.7
456.3
495.1
535.8
560.6
579.6
585.5
699.3
810.2
837.4
833.0
919.8
Services (net)
267.9
232.5
258.8
286.7
290.3
278.7
326.8
427.6
351.9
400.5
167.4
232.2
299.6














GOODS AND SERVICES (net)
-64.0
-37.3
-35.3
-138.8
-36.4
-51.3
60.9
49.1
-29.9
-92.9
-222.2
-178.2
-272.7














Investment Income credit
41.1
48.3
44.7
40.4
28.7
31.9
42.5
39.1
57.0
48.4
73.2
55.1
58.0
Investment Income debit
111.4
106.8
119.9
124.0
154.8
133.1
128.5
143.2
219.8
245.3
158.5
243.2
254.4
Investment Income (net)
-70.3
-58.5
-75.2
-83.6
-126.1
-101.2
-86.0
-104.1
-162.8
-196.9
-85.3
-188.1
-196.4














GOODS, SERVICES AND INCOME (net)
-134.3
-95.8
-110.5
-222.4
-162.5
-152.5
-25.1
-55.0
-192.7
-289.8
-307.5
-366.3
-469.1














Private Transfers (net)
-33.0
-36.3
-24.5
-17.1
-34.8
-37.2
-42.7
-16.5
-13.9
-21.0
-26.3
92.6
103.1
Official Transfers (net)
101.5
142.1
141.9
123.6
105.0
163.5
155.4
121.5
195.0
145.5
113.9
118.4
159.5
off which EU sugar transfers
76.7
97.8
103.1
83.8
85.0
110.7
106.5
80.2
164.0
124.0
104.0
111.9
139.6














CURRENT ACCOUNT BALANCE
-65.8
10.0
7.0
-115.9
-92.3
-26.2
87.6
50.0
-11.6
-165.3
-219.9
-155.3
-206.5
as percentage of GDP
-3.3
0.5
0.3
-4.6
-3.5
-0.9
3.0
1.6
-0.4
-4.5
-6.3
-4.0
-5.0














CAPITAL ACCOUNT EXCLUDING RESERVES













Direct investment
100.4
-5.9
105.3
116.9
99.9
76.2
-33.0
-10.6
139.9
-78.5
44.0
96.8
99.7
Government debt
-2.5
-22.9
-17.3
-12.7
5.3
-5.1
-2.5
-4.1
-13.4
-29.9
-18.3
-10.1
17.3
Statutory authority debt
-42.1
-22.8
-20.8
-36.1
-53.9
-17.9
-7.3
-2.6
57.8
137.1
-5.9
-6.4
-15.7
Banks
5.0
1.7
9.4
-26.6
-10.0
22.4
15.4
-1.0
-31.1
2.8
-22.9
36.6
5.0



Other
16.2
23.5
11.6
-20.8
-0.7
25.6
22.6
-10.2
-53.2
139.8
226.1
61.5
10.2
TOTAL CAPITAL EXCLUDING RESERVES
77.0
-26.4
88.2
20.7
40.6
101.2
-4.8
-28.5
100.0
171.3
223.0
178.4
116.5
as percentage of GDP
3.9
-1.3
3.8
0.8
1.5
3.6
-0.2
-0.9
3.0
4.7
6.4
4.7
2.8














Errors & Ommissions
43.3
29.1
-6.1
24.8
35.1
34.0
14.6
-61.8
-21.5
93.3
96.3
-53.3
5.0














OVERALL BALANCE
54.5
12.7
89.1
-70.4
-16.6
109.0
97.4
-40.3
66.9
99.3
99.4
-30.2
-85.2
as percentage of GDP
2.8
0.6
3.9
-2.8
-0.6
3.9
3.3
-1.3
2.0
2.7
2.8
-0.8
-2.1














MEMORANDUM ITEMS













Change in Official Balance
-54.5
-12.7
-89.1
70.4
16.6
-109.0
-97.4
40.3
-66.9
-99.3
-99.4
30.2
85.2
Valuation adjustments
8.8
6.3
9.4
-12.4
-12.3
4.3
-5.6
6.0
140.2
-37.0
-28.4
-21.6
0.0
GROSS CHANGE IN RESERVES
-63.3
-19.0
-98.5
82.8
28.9
-113.3
-91.8
34.3
-207.1
-62.3
-71.0
51.8
85.2
























































GDP AT CURRENT MARKET PRICE
1,980.0
2042
2303.2
2522.5 2673.1
2799.9
2962.3
3060.9
3283.8
3662.3
3504.8
3835.8
4105.8














(a) This entry carries the opposite sign to the corresponding entry for “overall balance” included in the BOP

Source: Bureau of Statistics, Macrotechnical Committee.
















Table 6: Affirmative Action Programs under Social Justice Act 2001


2002 Budget
$m
1 Small Business Equity Scheme for all communities
0.30
2 Enhancement of Fijian and Rotuman Education
4.00
3 Vocational training and attainment of employable skills in and out of school
1.53
4 Improvement of educational opportunities for students with disabilities
2.28
5 Small/micro-enterprise development
1.00
6 Increase Fijian and Rotuman participation in business
5.04
7 Student loan scheme PSC
1.00
8 Renting of Fijian and Rotuman owned premises by Government

9 Loan to purchase ancestoral land now in freehold
0.50
10 Vocational training for serving prisoners
0.02
11 Self-help housing assistance in rural areas
0.80
12 Multi-ethnic Scholarship
2.50
13 Govt. grant for multi-ethnic cultural training and enhancement
0.04
14 Self-help projects in relation to housing and other business projects
2.00
15 Acquisition and development of land for agricultural purposes
5.00
16 Providing fishing & processing licences and contracts
1.50
17 Participation of resource owners in the forest industry
2.00
18 Family Assistance Scheme
11.00
19 Poverty Alleviation Project
2.00
20 Coordination of Care and Rehab of persons with disabilities FNCDP
0.08
21 Participation in the tourism industry to ensure equality of access to
1.50
commerce
22 National Youth Service Scheme
0.35
23 Subsidised Housing under Public Rental Board
0.69
24 Providing land for housing of squatters
1.00
25 Fijian Education Scholarship
5.50
26 Technical and Vocational Training under the Centre for Appropriate
0.50
Technology & Development






Table 7: CRIME STATISTICS, 1997 - 2001

Fiji Summary













Crime Offences Recorded Five Year Comparison
OFFENCES
1997
1998
1999
2000
2001
AGAINST LAWFUL AUTHORITY





1
Affray
27
32
26
36
13
2
Throwing Object
314
268
185
232
194
3
Corruption and Abuse of Office
3
29
14
14
8
4
Perjury
2
1
0
1
1
5
Escaping from Lawful Custody
95
97
80
89
79
6
Riot and Unlawful Assembly
2
2
0
172
3
7
Others Against Lawful Authority
226
153
128
264
185

TOTAL
669
582
433
808
483







AGAINST PUBLIC MORALITY





8
Rape and Attempted Rape
103
91
88
95
76
9
Indecent Assault
109
107
104
90
118
10
Defilement of Girl under 13
6
3
13
14
6
11
Defilement of Girl between 16 - 13
66
74
59
52
50
12
Incest
2
10
9
10
8
13
Unnatural Offences
19
18
7
8
18
14
Others Against Public Morality
97
94
88
107
163

TOTAL
402
397
368
376
439







AGAINST THE PERSON





15
Murder
13
14
23
17
28
16
Attempted Murder
1
2
3
8
2
17
Manslaughter
0
2
1
4
1
18
Infanticide
0
3
4

19
Causing Death by Dangerous Driving
47
55
62
68
24
20
Act with Intent to Cause Grievous Harm
485
403
350
324
353
21
Assault Occasioning Actual Bodily Harm
3,521
3,246
2897
2776
3348
22
Assault on Police
75
65
114
64
57
23
Common Assault
695
603
632
580
505
24
Others Against the Person
170
192
295
361
247

TOTAL
5007
4585
4381
4202
4565







AGAINST THE PROPERTY





25
Embezzlement
161
205
214
216
305
26
Conversion
55
180
152
36
30
27
Larceny in Dwelling House
599
499
458
460
460
28
Larceny from Person
511
579
447
395
351
29
Larceny of Cattle
443
463
307
122
371
30
Larceny from Ship or Dock
26
11
13
11
4
31
Fraud and False Pretence
426
329
363
327
718
32
Demanding with Menace
10
11
13
9
3
33
Robbery with Violence
860
1,002
719
858
623
34
Burglary
934
882
982
861
838
35
House Breaking
1,322
1,389
1325
1569
1331
36
Other Breaking Offences
1,401
1,304
1079
1112
829
37
Receiving Stolen Property
20
47
34
49
37



38
Arson and Setting Fire to Crops
139
306
102
243
66
39
Theft
5,159
5,018
3690
3955
3887
40
Damaging Property
1,541
1,349
1167
1193
1002
41
Injuring Animal
120
157
92
59
59
42
Unlawful Use of Motor Vehicle
430
539
352
412
294
43
Others Against the Property
651
564
793
527
120

TOTAL 14808 14834
12302 12414
11328







OTHER OFFENCES AGAINST PENAL CODE





44
Forgery
252
111
203
953
586
45
Currency Offences
1
19
3
10
4
46
Criminal Trespass
575
462
482
497
518
47
Others Against Penal Code
8
154
108
433
42
48
Against Drugs Ordinance/ Act
427
431
514
426
433

TOTAL
1263
1177
1310
2319
1583








GRAND TOTAL 22149 21575
18794 20119
18398








% Change
-3
-13
7
-9







Source: Fiji Police Force








Table 8: UNDP's HDI Ranking
Medium Human Dev.
Low Human Dev.
Year
Fiji
1995
65
44
131
1997
46
61
140
1998
47
66
140
1999
49
67
127
2000
54
72
138



Table 9: Consumption
Year
Consumption
% of GDP
($m)
1985
838
71
1986
873
65
1987
960
72
1988
1094
76
1989
1273.7
82
1990
1442.7
83
1991
1474.4
82
1992
1578.6
79
1993
1628.7
75
1994
1694.8
74
1995
1776.7
74
1996
1855.1
73
1997
1909.9
73
1998
2123.1
76
1999
2144.3
68
2000
2193.7
71



Table 10: Fiji's Growth Rate
1985
-5
1986
8.1
1987
-6
1988
2.2
1989
13
1990
3.6
1991
-2.7
1992
6.1
1993
2.6
1994
5.1
1995
2.5
1996
3.1
1997
-0.9
1998
1.5
1999
9.6
2000
-3.2
2001(p)
4.3

Table 11: Structure of Fiji's Economy (%)

1986
2001
Agriculture,
25
16
forestry and
fishing
Wholesale and
17
18
retail trade
Community and
16
18
social services
Finance and
13
11
insurance
Manufacturing
12
15
Transport and
11
13
communication
Other
6
9






















TABLE 12: Investment Trends, 1970 – 2000


($m)
Percent of GDP
Public
Public
YEAR Govt.
Enterprise Private Total Govt. Enterprise
Private Total
1970
-
12.4
22.4
34.8
-
7.3
13.3
20.6
1971
-
17.1
28.8
45.9
-
9.3
15.6
24.9
1972
-
18.7
34.4
53.1
-
8.1
14.9
23.0
1973
-
25.6
40.1
65.7
-
8.5
13.3
21.9
1974
-
28.9
45.3
74.2
-
7.0
11.0
18.1
1975
-
44.8
58.6
103.4
-
8.7
11.4
20.1
1976
-
57.1
62.4
119.5
-
10.0
10.9
20.9
1977
38.5
20.5
69.9
128.9 6.4
3.4
11.5
21.3
1978
33.0
31.3
85.4
149.7 5.1
4.9
13.3
23.3
1979
35.2
58.9
110.9 205.0 4.5
7.6
14.2
26.3
1980
45.4
70.1
134.3 249.8 5.0
7.8
14.9
27.7
1981
72.8
77.2
130.4 280.4 7.6
8.1
13.7
29.4
1982
61.0
88.5
113.2 262.7 6.0
8.7
11.1
25.7
1983
36.3
90.7
112.2 239.2 3.5
8.8
10.9
23.2
1984
37.9
49.2
130.9 218.0 3.3
4.3
11.4
18.9
1985
40.8
37.8
160.4 239.0 3.5
3.2
13.6
20.3
1986
43.2
26.7
145.4 215.3 3.3
2.0
11.0
16.2
1987
33.6
51.7
144.6 229.9 2.5
3.9
10.9
17.3
1988
40.4
42.9
108.2 191.5 2.8
3.0
7.5
13.4
1989
56.8
39.5
114.8 211.1 3.7
2.5
7.4
13.7
1990
64.7
72.5
110.6 247.8 3.7
4.2
6.3
14.2
1991
81.8
103.6
109.5 294.9 4.5
5.7
6.1
16.3
1992
68.7
111.2
83.9
263.9 3.4
5.5
4.2
13.1
1993
63.3
182.3
119.3 364.9 2.9
8.4
5.5
16.8
1994
68.9
141.5
110.1 320.5 3.0
6.2
4.8
14.0
1995
66.6
168.5
115.0 350.0 2.8
7.0
4.8
14.6
1996
88.3
83.5
125.0 296.8 3.5
3.3
4.9
11.6
1997
95.6
113.5
103.0 312.2 3.7
4.3
3.9
11.9
1998
109.7
158.3
132.0 399.9 3.9
5.6
4.7
14.3
1999
128.2
183.1
153.3 464.6 4.1
5.8
4.9
14.8
2000(p) 108.8
130.8
109.5 349.1 3.5
4.2
3.5
11.3
Source: BOS















Table 13: Millennium Development Goals (MDGs)
The goals and targets are based on the UN Millennium Declaration, and the UN General
Assembly has approved them as part of the Secretary General's road map towards
implementing the declaration. UNDP worked with other UN departments, funds and
programmes, the World Bank, the International Monetary Fund and the Organization for
Economic Cooperation Development to identify over 40 quantifiable indicators to assess
progress..

Goals and Targets
Indicators
Goal 1: Eradicate extreme poverty and hunger
Target 1: Halve, between 1990 and
1. Proportion of population below $1 per day
2015, the proportion of people
(PPP-values)
whose income is less than one
2. Poverty gap ratio [incidence x depth of
dollar a day
poverty]

3. Share of poorest quintile in national
consumption
Target 2: Halve, between 1990 and
4. Prevalence of underweight children (under-five
2015, the proportion of people
years of age)
who suffer from hunger
5. Proportion of population below minimum

level of dietary energy consumption
Goal 2: Achieve universal primary education
Target 3: Ensure that, by 2015,
6. Net enrolment ratio in primary education
children everywhere, boys and
7. Proportion of pupils starting grade 1 who
girls alike, will be able to
reach grade 5
complete a full course of
8. Literacy rate of 15-24 year olds
primary schooling

Goal 3: Promote gender equality and empower women
Target 4: Eliminate gender
9. Ratio of girls to boys in primary, secondary
disparity in primary and
and tertiary education
secondary education
10. Ratio of literate females to males of 15-24
preferably by 2005 and to all
year olds
levels of education no later
11. Share of women in wage employment in the
than 2015
non-agricultural sector

12. Proportion of seats held by women in
national parliament
Goal 4: Reduce child mortality
Target 5: Reduce by two-thirds,
13. Under-five mortality rate
between 1990 and 2015, the
14. Infant mortality rate
under-five mortality rate
15. Proportion of 1 year old children immunised

against measles
Goal 5: Improve maternal health
Target 6: Reduce by three-quarters,
16. Maternal mortality ratio
between 1990 and
17. Proportion of births attended by skilled
2015, the maternal mortality ratio
health personnel
Goal 6: Combat HIV/AIDS, malaria and other diseases
Target 7: Have halted by 2015, and
18. HIV prevalence among 15-24 year old
begun to reverse, the spread
pregnant women
of HIV/AIDS
19. Contraceptive prevalence rate
20. Number of children orphaned by HIV/AIDS
Target 8: Have halted by 2015, and
21. Prevalence and death rates associated with
begun to reverse, the
malaria
incidence of malaria and other
22. Proportion of population in malaria risk



major diseases
areas using effective malaria prevention and

treatment measures
23. Prevalence and death rates associated with
tuberculosis
24. Proportion of TB cases detected and cured
under DOTS (Directly Observed Treatment
Short Course)
Goal 7: Ensure environmental sustainability
Target 9: Integrate the principles of
25. Proportion of land area covered by forest
sustainable development into
26. Land area protected to maintain biological
country policies and
diversity
programmes and reverse the
27. GDP per unit of energy use (as proxy for
loss of environmental
energy efficiency)
resources
28. Carbon dioxide emissions (per capita)

[Plus two figures of global atmospheric
pollution: ozone depletion and the
accumulation of global warming gases]
Target 10: Halve, by 2015, the
29. Proportion of population with sustainable
proportion of people without
access to an improved water source
sustainable access to safe
drinking water
Target 11: By 2020, to have
30. Proportion of people with access to
achieved a significant
improved sanitation
improvement in the lives of at
31. Proportion of people with access to secure
least 100 million slum dwellers
tenure

[Urban/rural disaggregation of several of the
above indicators may be relevant for
monitoring improvement in the lives of slum
dwellers]

Goal 8: Develop a Global Partnership for Development*
Target 12: Develop further an open,
Some of the indicators listed below will be
rule-based, predictable, non-
monitored separately for the Least
discriminatory
Developed Countries (LDCs), Africa,
trading and financial system
landlocked countries and small island

developing states.
Includes a commitment to

good governance,

development, and poverty
Official Development Assistance
reduction – both nationally and
32. Net ODA as percentage of DAC donors’ GNI
internationally
[targets of 0.7% in total and 0.15% for LDCs]

33. Proportion of ODA to basic social services

(basic education, primary health care,
Target 13: Address the Special
nutrition, safe water and sanitation)
Needs of the Least Developed
34. Proportion of ODA that is untied
Countries
35. Proportion of ODA for environment in small

island developing states
Includes: tariff and quota free
36. Proportion of ODA for transport sector in
access for LDC exports;
land-locked countries
enhanced programme of debt

relief for HIPC and

cancellation of official bilateral debt;
Market Access
and more generous ODA
37. Proportion of exports (by value and
for countries committed to
excluding arms) admitted free of duties and
poverty reduction
quotas

38. Average tariffs and quotas on agricultural




products and textiles and clothing
Target 14: Address the Special
39. Domestic and export agricultural subsidies
Needs of landlocked countries
in OECD countries
and small island developing
40. Proportion of ODA provided to help build
states
trade capacity


(through Barbados

Programme and 22nd General
Debt Sustainability
Assembly provisions)
41. Proportion of official bilateral HIPC debt

cancelled

42. Debt service as a percentage of exports of
Target 15: Deal comprehensively
goods and services
with the debt problems of
43. Proportion of ODA provided as debt relief
developing countries through
44. Number of countries reaching HIPC decision
national and international
and completion points
measures in order to make

debt sustainable in the long
term
Target 16: In co-operation with
45. Unemployment rate of 15-24 year olds
developing countries, develop

and implement strategies for
decent and productive work for
youth
Target 17: In co-operation with
46. Proportion of population with access to
pharmaceutical companies,
affordable essential drugs on a sustainable
provide access to affordable,
basis
essential drugs in developing

countries
Target 18: In co-operation with the
47. Telephone lines per 1000 people
private sector, make available
48. Personal computers per 1000 people
the benefits of new

technologies, especially
Other Indicators TBD
information and

communications
*The selection of indicators for Goals 7 and 8 is subject to further refinement.






















Table 14: Job Seekers and Job Opportunities: annual estimates

Medium term
Job Seekers
scenario
§ School leavers entering labour force (including
15,000
from Post Secondary Institutions)
§ Belated entrants into the labour force (almost
600
exclusively women)
§ Laid-off workers seeking re-employment
1,200
§ Never attended school
200
Total number of job seekers
17,000


Job Opportunities

Formal sector

Replacements for emigrating employed persons
4,000
Replacements for employed persons leaving the
3,300
formal sector due to normal attrition2
New formal sector employment3
2,400
Total Formal Sector job opportunities
9,700


Informal Sector and Agriculture

Replacements for employed persons leaving informal
2,000
(non-farming) employment and cash-crop agriculture
due to normal attrition
Targeted expansion in employment opportunities to
5,300
absorb balance of labour force.4
Total informal sector and agriculture

7,300
Source: MOFNP Estimates













2 Normal attrition is estimated at 2.8% of formal employment.
3 Formal sector employment is expected to grow at about half the rate of the economy – an employment
elasticity of 0.5. For 2001, economic growth is expected to be 1% (therefore employment growth is expected to
be 0.5%) and in the medium term growth is forecast at an average of 4% per year (employment growth of 2%
per year).
4 This target is based on the assumption of no change in numbers unemployed and that those in subsistence
agriculture does not increase.




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