Fiji facing dark economic times

Updated August 12, 2009 08:15:41

A bleak picture of Fiji's economic future has been painted at a major conference held at Australia's Parliament House in Canberra. The meeting - attended by members of parliament, diplomats and senior academics - heard the global financial crisis coupled with the political turmoil brought on by the coup are combining to give the country a very gloomy outlook.


Presenter:Michael Cavanagh
Speaker: Kamlesh Arya, Fiji's acting High Commissioner to Australia;

CAVANAGH: Fiji's administration argues that its actions both socially and economically are the right way to go -- a point disputed by at least one person who has carried out an extensive study of Fiji.

MAHADEVAN: "What exactly is the economic outlook for Fiji, bleak is the word, very bleak."

CAVANAGH:Dr Renuka Mahadevan from Queensland University believes the economic factors both domestically through such things as the military coup plus the fall out from the world's financial meltdown don't paint a rosy future for the citizens of the island state.

Fiji's Central Bank sees possible growth at an extremely low level of around point two per cent. Dr Mahadevan warns that the economy could still contract despite claims by the administration that it is making changes...

MAHADEVAN: "I do think they are trying because they cannot afford to be seen as a failure and you can see those moves in the sugar industry they have done a lot of things that are not quite popular like getting rid of the sugar commission of Fiji, getting away with you know the Fiji marketing board. Those things are not popular yet they are doing it and the fact that they are actually going to acquire land and produce cane is also not popular because the small scale farmers are going to look upon it very favourably. But there is some will to get things moving because the sugar industry is far too important so in industries they think they really have to get things going they are really trying, but in other industries they are not doing enough."

CAVANAGH:The Queensland academic had been addressing a gathering staged by the Australian National University's respected Crawford School of Economics -- part of a regular series which brings together various people who make a study of a particular country -- it was Fiji's turn.

Issues of ethnic politics, corruption and economics were discussed -- as too was the coup -- and even when the coup itself was not the subject of the particular discussion it was always there in the background.

KERR: "At the moment we seem to be intractably stuck and the longer that stuckness (sic) remains the less prospect I think that Fiji has of coming through these periods of time without deep social and economic consequences and those are things that I've said are in no one's interest at all. Australia has no interest in the resolution of this crisis by the economic and social collapse of Fiji."

CAVANAGH:Duncan Kerr is a member of Australia's Labor Government and is the Parliamentary Secretary for Pacific Island Affairs...

Dr Mahadevan estimates poverty is increasing in Fiji.

MAHADEVAN: "Reform is the word and reform not just in terms of governance but also agricultural non agricultural sector and trade. Its not that the government doesn't know that it has to reform, the point that it is missing is that reform has to be done now. Hasten reform. There is a time bomb ticking, its got to be done now because the reforms are long overdue.

CAVANAGH:Sitting listening to it all was Fiji's acting High Commissioner to Australia Kamlesh Arya who took his opportunity when at the end there was a question and answer segment...

ARYA: "If the country has decided to review its own constitution and bring forward a new one in beyond 2012, every community Australia, New Zealand, Pacific, international must buy that because your pressure is not going to bring that date forward and therefore no matter how many of these discussions you have it'll be futile because it's not bringing any results."

CAVANAGH:The acting High commissioner may have to continue to use such forums as the place to push his master's views.
At the moment he does not have the full status of his fellow High Commissioners. Fiji's Frank Bainimarama is demanding that his representative be recognised by Canberra -- otherwise he will downgrade the status of Australia's man in Fiji.
The Department of Foreign Affairs says that these arrangements were put in place last year at the request of Fiji. However, it is now considering the latest demand.