| Thatcherite and Reganomics 
                    doctrines both elevated the 
                    role of the market to the central place in resource allocation. In 
                    the developed, as well as the underdeveloped nations, market-mania took 
                    numerous forms, of which one was privatization. Infatuation 
                    with privatization became the hallmark of public policy-making in the 
                    Third World (Narayan, 2005), so much so that reforms have taken economies 
                    by storm. The Pacific Island nations are no exception. Since many nations 
                      were badly hit by the Asian crisis, the small island economies also felt the 
                      effect. The after-effect of this crisis triggered ambitious reform programs in 
                      order to improve the performance and transparency of states and to 
                      facilitate private sector development. The implementation of such reforms 
                      have been effectively assisted by external sources and supported by the 
                      World Bank and IMF. Island states have also appreciated the need for strong 
                      economic fundamentals via reforms. Fiji is one such island state. Fiji, a coup 
                      ridden, yet one of the most developed of Pacific Island economies is an 
                      island nation located in the heart of Pacific Ocean, southwest of Honolulu, 
                      midway between the equator and New Zealand. Indigenous Fijians 
                      (predominantly, Melanesian with Polynesian admixture) amount to 57.3%; 
                      Indo-Fijians amount to 37.6%; Rotumans amount to 1.2%; Europeans, other 
                      Pacific Islanders, and Chinese amount to 3.9% of the total population. Fiji is 
                      endowed with forest, mineral and fishery resources with a large 
                      subsistence sector. The major sources of foreign 
                      exchange are sugar exports, remittances from Fijians working abroad and 
                      a growing tourist industry. However, the most recent infamous coup 
                      has dimmed the attractiveness of business climate . At present, the country 
                      operates under military rule, under the self-appointed prime-ministership 
                      of Commodore Josaia Voreqe (Frank) Bainimarama after the bloodless 
                      coup of December 2006. Following this, Fiji suffered a year of negative growth, 
                      i.e. economic contraction of 3.9% due to declines in tourism, sugar, 
                      construction and gold mining earnings growth. A number of funding agencies 
                      suspended most new aid proposals but many of the existing projects are continuing.  |