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. |