Identifying vulnerabilities and building resilience in the economy of Fiji

Abstract

The growth record in the small Pacific island economies has been very poor and in some cases negative growth was recorded. Fiji, one of the leading economies in the region, is, like other small island states, faced with certain peculiarities and conditions that lead to economic vulnerability. This chapter identifies a number of inherent features of the Fiji economy in this regard, including a high degree of openness and high dependence on a narrow range of products. However, there are a number of factors that may have exacerbated economic vulnerability, including poor governance, lack of an appropriate macroeconomic policy framework and absence of well-defined property rights. This chapter proposes a number of policy measures aimed at enabling Fiji to better cope with its economic vulnerability and to render the economy more resilient.