The Fijian economy

Endowed with forest, mineral, and fish resources, Fiji is one of the most developed Pacific island economy, though it remains a developing country with a large subsistence agriculture sector. Agriculture accounts for 18 % of GDP, although it employs 70 % of the workforce. Sugar exports and a growing tourist industry are the major sources of foreign exchange. Sugar cane processing makes up 1/3 of industrial activity. Coconuts, ginger, and copra are also significant.

Fiji has applied in 2006 for a license to drill for petroleum in Fiji's waters (Let's hope!)

In 2002, the government announced a 20-year development plan. Among other things, it aims to give indigenous Fijians a great stake in the economy. The plan envisages tax-relief to businesses owned/managed by ethnic Fijians, along with greater protection for indigenous land and fishery rights.
A major aim of the Fijian government is to achieve self-sufficiency in rice production. Cattle farming, fishing, and forestry are also being encouraged in order to diversify the economy.

In 2005, the goverment approved the proposal to develop a biofuels industry. The goal is to develope a sugar industry complement & to alleviate Fiji's dependence on imported fossil fuels such as petrol. The EU, the UNDP and the Indian goverment support this programme. Trials for the generation of fuel from coconut oil are also in progress.

But Fiji's economic difficulties have been compounded by the 3 coups over the last 20 years. A very high rate of emigration, particularly of skilled and professional personnel is causing serious problems. More than 70,000 people left the country in the aftermath of the coups (90 % of whom were Indo-Fijians). Fiji's loss of skilled workers is the world's fourth highest (behind Guyana, Jamaica, Haiti, and Trinidad & Tobago).

A recent survey revealed a disturbingly high percentage of squatters -about one in ten Fijian citizens. The number of squatter settlements had increased 73 % since 1996. Urban migration, unemployment, the expiry of land leases, and the breakdown of nuclear and extended families were among the factors blamed for the trend. It is putting increasing strain on supplies of water, electricity, sewage, and road services.