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ROADMAP FOR DEMOCRACY AND SUSTAINABLE SOCIO-ECONOMIC DEVELOPMENT 

2010-2014 

A Better Fiji for All 

MINISTRY OF NATIONAL PLANNING 

DECEMBER 2009 

FOREWORD 

I am pleased to present to the people of Fiji, Government‘s Roadmap for Democracy and Sustainable Socio-Economic Development 2010-2014. The key foundation of the Roadmap is the Peoples Charter for Change, Peace and Progress which was compiled through an unprecedented nationwide consultation process and endorsed by His Excellency the President in December 2008 for implementation. The Roadmap outlines in more detail Government‘s agenda from now until 2014 as captured in my address on the Strategic Framework for Change delivered on 1st July 2009. 

Carrying the theme of ‗A Better Fiji for All‘, the Roadmap brings together in a holistic manner, the range of reforms and sectoral policy mix that are needed to successfully deliver on the mandate handed down by His Excellency the President in 2007. The Roadmap is the outcome of extensive consultations with the private sector, civil society and within the public sector, and takes on board current political, social and economic developments, both on the domestic and international fronts. 

The mandate of my Government is to ensure that true democratic, non-communal, equal suffrage based elections for parliamentary representation are held by September 2014. Prior to the elections the formulation of a new Constitution, one which is fair and just and provides a solid foundation and framework for the rebuilding of our nation is critical for Fiji. To ensure ownership of the Constitution by the citizens of Fiji, a participatory process will be undertaken, involving the political parties, private sector, civil society, non-government organizations, and citizens of Fiji.  

A number of reforms will be implemented under the Roadmap. These include electoral and parliamentary reforms, public service reforms, land reforms, and reforms in the education and health sectors. Successful implementation of these reforms is necessary to give reality to the mandate of His Excellency the President and the objectives of the Peoples Charter. 

Higher economic growth is critical to achieve the objectives set out in the Roadmap, to create more income earning opportunities and lift more people out of poverty. More concerted focus will be placed on boosting our export sector as well as promoting the use of local produce as substitutes to imports. These goals are not new and my Government recognizes that they must be 

earned through hard work, sacrifice and political will in order to produce the prosperity which is essential to building better lives for all of the people of Fiji.  

Government will continue to improve the environment for private sector investment. Major reforms will include revamping laws such as those that affect town and country planning, land development process and approvals.  Government will expand its capital investment programme, including through projects funded by bilateral and multi lateral development partners.     

Achieving the vision of the Roadmap will require the collective effort of every citizen. For far too long, Fiji‘s people and our leaders have been focused on their sectoral interests rather than the interest of the nation. For far too long, we have allowed our cultural, religious and ethnic differences to cause division among the community.  

The overwhelming nation wide support received for the Peoples Charter in 2008 is testimony of the ordinary grassroot citizens support for real changes in the way Fiji has been governed. To ignore such an overwhelming voice for the sake of convening elections would be grossly irresponsible and not in the spirit of good governance. The Roadmap sets out the framework to achieve sustainable democracy, good and just governance, socio-economic prosperity and national unity.  

I call on the international community to respect Fiji‘s sovereignty and the path that we have chosen as contained in this Roadmap. I look forward to future engagement with the international community based on the priorities that Government has set out in the Roadmap. 

I call on the support of each citizen of Fiji to apply themselves more positively and productively in whatever area they are involved in to better their lives.  

My Government is committed to delivering on each goal set out in the Roadmap and it is only through our collective efforts can we build Fiji into a peaceful, multiracial and prosperous home for which we can all be proud. 

I take this opportunity to thank all those who have contributed in the preparation of this important document, and I look forward to your continued support in its implementation. 

Commodore Josaia Voreqe Bainimarama 

Prime Minister and Minister for Public Service, Peoples Charter for Change, Information, Sugar, Finance, National Planning, Indigenous and Multi Ethnic Affairs and Provincial Development 

Abbreviations 

Executive Summary 

The Roadmap for Democracy and Sustainable Socio-economic Development (RDSSED) 2010-2014 sets out a strategic framework to achieve sustainable democracy, good and just governance, socio-economic development and national unity. The key foundation of the Roadmap is the Peoples Charter for Change Peace and Progress (PCCPP) which was compiled through an unprecedented nationwide consultation process, involving a wide range of stakeholders. The Roadmap is logically aligned to the mandate handed down by His Excellency, the President in 2007, as well as to the Strategic Framework for Change announced by the Prime Minister on 1st July 2009. 

In order to ensure an inclusive approach, ownership and successful implementation, the Roadmap has been compiled in consultation with private sector, civil society and government to take on board the current political, social and economic situation, both on the international and domestic fronts. 

The vision of the Roadmap together with the Mission and Guiding Principles are described in Chapter 1. Chapter two reviews governance issues and challenges and sets out the policies, strategies and key performance indicators. Similarly, reviews and policies, strategies and key performance indicators for economic and socio-cultural development are addressed in Chapters 3 and 4 respectively. Chapter 5 outlines the implementation and monitoring framework. 

Vision, Mission and Guiding Principles 

The objective of the Roadmap is to implement policies to achieve the Vision of “A Better Fiji for All” which is consistent with the Peoples Charter. To achieve this vision, the overarching objective is to rebuild Fiji into a non-racial, culturally vibrant and united, well governed, truly democratic nation that seeks progress and prosperity through merit-based equality of opportunity and peace. 

Strategic Policy Direction 

The medium term strategic focus of the Roadmap is to strengthen good and just governance, raise economic growth and improve socio-cultural development. Under good governance, the key strategic priorities include formulation of a new constitution, electoral reforms, strengthening law and justice, ensuring effective, enlightened and accountable leadership, enhancing public sector efficiency, effectiveness and service delivery, developing an integrated development structure at divisional level. The key strategic priorities for economic development include maintaining macroeconomic stability, export promotion, import substitution, raising investment levels, making more land available for productive and social purposes, enhancing global integration and international relations. The focus under social development will be on reducing poverty to a negligible level, making Fiji a knowledge based society, improving health service delivery and developing a common national identity and building social cohesion.  

Strengthening Good Governance 

Fiji needs to entrench a culture of democratic good governance such that it becomes the dominant political thinking and behaviour of the people of Fiji. Principles of good governance need to be applied to both the formal governance framework, to the institutions within it, and to how the country is governed on a daily basis in terms of policy formulation and decision making. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and several other UN bodies, describe good governance as having eight major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. It assures that corruption is minimised; the views of minorities are taken into account; and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society. 

A major short term priority of Government is to formulate a new Constitution. Following the appeals court ruling, His Excellency the President abrogated Fiji‘s Constitution on 10 April 2009. In order to maintain continuity in the implementation of the mandate handed down to the Government in January 2007 for an equal, just and fair Fiji, His Excellency reappointed the Interim Government. The State is now re-established under Presidential Decrees, which continues to respect the independence of the judiciary and accountability institutions and the operation of other key arms of the State.  

Fiji‘s single member (majority) electoral system, which has been in place since Independence, has always provided for communal representation. Besides the excessive use of communal or reserved representation in violation of basic human rights principles, this electoral and voting system is unfair due to the: 

lack of equal suffrage given the disproportional number of voters between single member constituencies; 

use of preferences producing results that do not accurately reflect the will of the people, as evidenced by the lack of representation for certain political parties who have received a fair proportion of first preference votes; 

communal voting and representation using a single member constituency or majority/plurality electoral system has also made it impossible to encourage a move away from race-based politics as political parties only need to appeal to specific ethnic interests to secure seats; and 

the complexity of the current system requires a high level of literacy, which has led to an unusually high proportion of invalid votes (9% in 1999, 12% in 2001, and 9% in 2006). 

The accountability framework comprises the institutions and processes that exist to ensure open and transparent Government. It involves the operations of many state institutions namely, Parliament, through its committee system and other processes, and independent institutions like the Auditor-General, Fiji Human Rights Commission (FHRC) and the Fiji Independent Commission Against Corruption (FICAC). A key function of many of these institutions is to hold Government to account for their actions; a necessary step in maintaining public confidence in the governance system.  

The effectiveness of Government‘s internal processes to ensure enforcement of the public service code of conduct and compliance with financial rules and regulations is another key component of the accountability framework. It also requires commitment to allowing the public to access public information and independent enforcement of conduct standards for holders of high public office. A free and independent media and the work of non-government and civil society organisations are also a vital part of the accountability framework. 

Public perception is that there is little or no accountability for public officials, from holders of high public office to ordinary civil servants, who behave improperly. In the absence of accountability, people are unable to ensure that their Government acts wisely, lawfully and fairly in serving the national interest. Accountability issues are continually raised in the Annual Audit Reports of the Auditor-General on the public accounts of the State and Local Government bodies and by the media. 

Fiji‘s national security concerns encompass a broad range of areas including protecting the country‘s sovereignty from attack, ending the cycle of coups and maintaining law and order.  It also encompasses Fiji‘s interests in protecting its tourism industry or offshore environment; border security; protective security; emergency management and effective coordination of disaster relief. Essentially the functions of security agencies are interlinked.  Effectively addressing these areas provides the platform for peace and stability that is vital for socio-economic growth and national development.  

The effectiveness of the Law and Justice Sector in part depends on the ability of the different institutions to operate together in a coherent, coordinated and mutually supportive way. In a technical sense, the Law and Justice Sector is operating reasonably well. In many areas of the legal system where significant problems existed a few years ago, progress has been or is being made. The Australia/Fiji Law and Justice Programme was starting to achieve modest successes in improving the operation of different institutions in the sector, including smoothing out the operation of the criminal justice system and overcoming delays in prosecutions, reduce case back logs; improve the treatment of juvenile offenders; to expand access to legal aid; and to establish a Family Court and associated counselling service, and community policing.  

The Public Service remains the key institution for the implementation of Government‘s visions and policies including its plans and programmes. Its performance, professionalism, productivity, accountability, cost and commitment has been heavily criticised in recent years. The current consensus is thus that Public Sector Reform  matters a great deal for national development, and in at least two ways: first, it will lead to better delivery of the basic public services that affect the living standards of the poor; and second, it will create a climate conducive to private sector development. 

Coordination of all development efforts at the local level remains fragmented and ineffective resulting in duplication and wastage. Enhancement of development cooperation will directly contribute to rural development and revitalization of economic activities resulting in growth, and limiting rural-urban drift. 

Addressing the issue of leadership is of great importance to the future of the country. At all levels, the type of leadership in Fiji is seen as a contributing factor to many of the country‘s problems.  Leadership at the national level has always been a subject of debate.   One point of view is that the style of political leadership in Fiji has, and continues to be, dominated by ethnic issues solely focused on protecting the interests of one‘s own ethnic community. The need for Fiji‘s leaders to display selflessness is a major challenge – that is, to lead for the common good and not through self-interest. 

Strategic Priorities for Good Governance  

Formulating a New Constitution 

The formulation of a new Constitution, one which is fair and just and provides a solid foundation and framework for the rebuilding of our nation in accord with the vision and principles of the Peoples Charter, is critical for Fiji. To ensure ownership of the Constitution, a participatory process will be undertaken, involving the political parties, civil society, non-government organizations, and citizens of Fiji. The new Constitution will recognise the basic constitutional principles, which have existed in Fiji since independence such as sovereignty, parliamentary democracy, the separation of powers and the protection of basic human rights under a Bill of Rights and supremacy of the rule of law. Government will also ensure that the underlying principles of the Peoples Charter in particular the principle of equal opportunity and equality under the law for all citizens regardless of race, gender or circumstance in all areas of Government and society are also recognised. To ensure public confidence the new Constitution will include major reforms under the Peoples Charter including: 

i.adoption of an Open List Proportional Representation electoral and voting system; 

ii.adoption of the common name ―Fijian‖ for all citizens and to change the official name of the country to ―Fiji‖;  

iii.enhancing and clarifying the role of the military and the country‘s national security framework;  

iv.stronger protections for the application of the Bill of Rights such as adoption of CEDAW definitions for discrimination against women and the girl-child; and 

v.proposals to strengthen the operation of state services and the accountability framework. 

Electoral and Parliamentary  Reforms  

Our electoral process will be reviewed to promote racial tolerance and unity and eliminate ethnic-based politics, a serious impediment to national development. Necessary steps will be taken to formulate the appropriate constitutional and legal framework to facilitate the adoption of the country‘s electoral and parliamentary system under the new Constitution in 2012. Further ancillary issues to be addressed include: the size and composition of Parliament; compulsory voting; the voting age; eligibility of candidates; residency restrictions on the right to vote; electoral rules and regulations to ensure a free and fair general election; and strengthening the capacity of electoral administration bodies. 

Government‘s commitment to the maintenance of law and order will continue. Measures will be implemented to strengthen the independence and 

Strengthening Law and Justice  

accountability of the judiciary. This involves the adoption and enforcement of conduct standards for judges, magistrates and other judicial officers will be carried out in accordance with the Administration of Justice Decree 2009.The police force shall be strengthened with upgrading of communications, transport and forensic tools. Government recognizes that policing is important to also instill public and investor confidence. As part of the reforms the archaic Penal Code shall also be revamped.  

Accountable and transparent process of government as the hallmark of effective sustainable democratic governance will be a goal that Fiji will aspire to achieve in the medium and long term.  It is, therefore, imperative that relevant governance systems, structures and institutions are strengthenedwhilst at the same time ensuring the maintenance of law and order. This will be addressed through the provision of adequate resources and capacity building initiatives to ensure the effectiveness of the various governance frameworks. Freedom of Information legislation will be decreed to enhance transparency and wider access to the public of government information.  

Strengthening Accountability and Transparency  

Effective and visionary leadership is critical for Fiji. We need leaders with progressive vision that is uplifting, motivating, inspiring and most importantly unifying. Leadership training and development at all levels will be a priority so that good leadership is realized sooner than later. Women and youth leadership will also be strengthened. Conduct of public leaders including parliamentarians and other category of leaders will be addressed through the enforcement of Code of Conduct legislation.  Leadership models with clearly defined legitimate roles of elected and non-elected leaders will also be developed and implemented. The active promotion of sound values and ethics, including honesty, fair play, respect, dedication to cause, and the need to work hard to earn a living, particularly in young people will assist to build integrity among the future generation of leaders. 

Ensuring Effective, Enlightened and Accountable Leadership  

 As a result of the reform programmes, the public service must become efficient and effective in both capacity and performance in the 21st Century in order to meet the needs of the people in the most cost effective way.  It will instill a new performance and service-oriented culture – one that values high productivity, smarter and effective work systems and enforces merit based appointments. It will be lean and accountable to those that it serves.  The well being and good governance of the indigenous population will be addressed through the implementation of good governance practices in indigenous institutions. 

Enhancing Public Sector Efficiency, Effectiveness and Service Delivery 

Developing an Integrated Development Structure at Divisional Level 

Integration of i-taukei development interests into national development plans and programmes, and the devolution of decision making powers to the divisional levels will be pursued. Partnerships with Non Government and Community Based Organizations (CBOs) will be strengthened to complement Government‘s outreach programmes and projects. These are critical to ensure local participation and to improve delivery of development programmes to raise living standards of people in the rural areas. This will assist communities in identifying resources and formulate community development plans directed at income generating skills and initiatives that maximize the returns from available resources.  

Economic Development 

The world economy has performed relatively well between 2001 and 2007 with exceptional performance from emerging markets such as Russia, China and India for some time. However, since the second half of 2008, the global economy started slowing down which eventually led to a recession towards the end of the year, spilling over to 2009.  

Economic activity in Fiji has remained relatively weak since 2001 averaging only 1.5 percent growth until 2008.  The sluggish growth in recent history has largely been a result of underperforming exports, recent declining trend of remittances, lower tourism receipts, reduced investment levels and increasing imports which have affected Fiji‘s foreign reserve and balance of payments position.    

The financial and economic recession experienced worldwide compounded by the high occurrence of natural disasters, including the flash floods in early 2009.  Our vulnerability to these situations adversely affected Fiji‘s economy causing below par performance. A contraction of 2.5 percent is expected in 2009 with modest recovery projected for the medium term.   

The Reserve Bank devalued Fiji‘s currency in April 2009 to protect the foreign reserve position and improve the competitiveness of our exports and services, particularly tourism.   In addition, it was to encourage use of local goods to substitute foreign produce which would have become expensive. The Reserve Bank also made interest rate policy announcements on the weighted average interest rate and interest rate spreads for commercial banks.  Subsequently, commercial banks lending and interest rates have started to fall, deposit rates have risen and banking system liquidity, that is, the amount of money available for banks to lend, has increased considerably from very low levels early in the year.  This itself will see credit conditions easing up further in the coming months and will assist greatly in businesses being able to borrow additional amounts to grow their businesses and to start new projects. 

In the tourism industry, visitor arrivals are recovering. Tourist numbers are expected to improve in coming months assisted by the devaluation of the Fijian dollar and strong marketing which have made Fiji a competitive destination. Exports of gold and fish have increased. However, performances of other industries, such as garments, timber and mineral water have been affected by the weak demand from our trading partner economies. 

Investment which is around 15 percent of GDP is expected to rise with the recent investments by Government and public enterprises such as the Fiji Electricity Authority and the Housing Authority. Government has given increased priority to the implementation of its capital programme for the year, in addition to meeting the flood rehabilitation demands. The Reserve Bank has made allowances for priority sector lending, as well as for export finance. The Bank has also established a Flood Rehabilitation Facility to assist businesses recover from the effects of the floods. 

The planned infrastructure upgrading through the EXIM Bank China, EXIM Bank Malaysia and Asian Development Bank will further boost investment.  Greater infrastructural support from Government and restructuring of the public sector, which essentially transfers assets and business opportunities to private sector, will also induce higher levels of private investment. 

Exports have been less that $1 billion; however, imports in recent years have exceeded $3 billion resulting in trade deficits in excess of $2 billion.  Imports have been rising continuously, mainly due to Fiji‘s low production based and exacerbated by the growing demand from the tourism industry as well as rising food and fuel prices. 

Foreign reserves have steadily risen to more than $1 billion (as at 18 November 2009), from around $440 million before the devaluation.  However, the foreign reserves position must be improved to meet the medium term target of 3-5 months of import cover. 

As a result of the devaluation, an increase in the inflation rate is expected in the coming months, with the year-end inflation forecast at 9.5 percent.  However, prices are expected to start easing after April next year, towards an inflation of around 2 percent by the end of 2010.   

The key macroeconomic issues that need to be addressed include maintaining macroeconomic stability; increasing exports, raising domestic production, raising foreign and domestic investment; and making more land available for social and economic development. 

Strategic Priorities for Economic Development 

The major priority for the medium term is to maintain prudent monetary and fiscal management in order to protect exchange reserves, reduce inflation to low levels, and ensure sustainable fiscal deficits and debt levels. The medium-term objective of Government is consolidating fiscal policy, increasing export earnings and minimizing imports to reduce the widening trade account deficits of the balance of payments.  

Maintaining Macroeconomic Stability 

Export Promotion  

Export promotion will be targeted through the implementation of the National Export Strategy together with support for natural resource based industries. Also critical is the implementation of the sugar industry reforms including co-generation and the establishment of the bio-fuel industry. Import substitution strategies, including local value addition, will be supported to increase self sufficiency, increase food security and reduce imports. 

Import Substitution 

Government will ensure greater cohesion and effective implementation of import substitution programmes to increase self reliance and reduce imports. The demand driven approach both for export and import substitution commodities will involve commercialization and strengthening industry organizations and agri-business networks, promotion of young farmer training, recognition of industry priorities by Government and the provision of support to medium sized entrepreneurs and exporters with existing market protocols.  

Although investment has risen in recent years, it remains below the average of 20% of GDP for developing countries and below the Roadmap target of 25% of GDP. Of particular concern has been the low rate of private sector investment.  Major reforms will include revamping laws such as those that affect town and country planning, land development process and approvals.  Government will raise its capital programme for the year, including those projects funded through the bilateral and multi lateral development partners.     

Raising Investment  

Levels   

The key issue regarding land in Fiji is one of access and improving utilization and not ownership.  Land is in abundance in Fiji, and ownership rights are well defined.  What is lacking is a mutually beneficial system that encourages the leasing of land for all purposes, sets incentives to ensure productive utilization of the land, and ensures equitable returns for both tenants in the use of the land and landowners in the leasing of their land. Enduring solutions on the issue of access to land for productive economic and social purposes will be developed.  Major land reform will be pursued through a genuine consultative process with all stakeholders.  Critical will be the need to ensure that the interests of landowners and tenants are addressed in a holistic and equitable manner. Land reforms will not compromise the interests of the landowners.  

Making More Land Available for Productive and Social Purposes  

Enhancing Global Integration and International Relations 

Fiji recognizes that it must reassert itself to regain its rightful place in the regional and international family of nations. Improved foreign and international relations are essential for achieving this. Our representations overseas will be strengthened to ensure that Fiji‘s vision and aspirations is well understood by our trading and development partners. Enhanced global and regional integration and partnerships will result in increased trade and cooperation including technical assistance and aid for trade. Bilateral, regional and multilateral arrangements will be actively pursued with our development and trading partners.  Fiji will strengthen its investment and trade facilitation through enhanced negotiation capacity and improved trade infrastructure.  

Socio-Cultural Development 

Most of the social indicators have worsened in Fiji over the past three decades.These include theHuman Development Index (HDI) and the Millennium Development Goals (MDGs) in relation to the proportion of the people living in poverty, maternal and child mortality rates.  

The HDI is a widely accepted measure of a country‘s progress in attaining satisfactory levels of education, health and income.  Fiji‘s ranking was 42nd in 1975 but dropped to 61st in 1997.  Its position further eroded in the late 1990s.  Based on the 2007/08 UNDP Human Development Index, Fiji currently is placed 92nd out of 177.  Samoa and Tonga — which had rankings similar to those of Fiji in the 1970s — have performed much better than Fiji in recent years, with rankings of 77th and 55th in 2007/08 respectively. 

The MDGs and their associated targets and indicators, which were endorsed by 189 countries including Fiji in the 2000 Millennium Summit, provide a recognised set of indicators that can be used to judge the key elements of social progress.  

Income redistribution is the most difficult challenge facing Fiji and its people and the greatest obstacle to pursuit of sustainable socio-economic growth. On the basis of the 2002/03 Household Income Expenditure Survey (HIES), 34.4% of the population lived below the Basic Needs Poverty Line (BNPL), indicating a 5% increase from the 1990-91 HIES. The poverty gap was estimated to have been $2,616.64 per year for an average household. Fiji remains a society with deep income inequalities.  The 2002-03 HIES shows that the poorest 20% of the household received 5.9% of the national income while the top 20% of the households received 47.9% of the national income. Results of the 2008-09 HIES, which will be available by the end of 2009, will provide vital information on the poverty situation in the countries.  

The key issues inhibiting poverty reduction include a lack of political commitment; political instability (weak governance); insufficient access to economic assets, markets and social services; ineffective coordination, implementation, and monitoring; lack of participation by all stakeholders vis-à-vis Government, the private sector and civil society; absence of sustainability mechanisms in programmes and projects; and lack of involvement of beneficiaries in project design, implementation, monitoring, and evaluation. 

Access to basic education is a right of all Fijians. Education, up till secondary level, is well established in Fiji with ownership and management of schools being in partnership between state and community. The 2004/2005 Employment and Unemployment Survey revealed that 90% of the persons aged 5 to 14 were attending school, with the proportion a slightly higher (92%) for Indo-Fijians compared to 89% for Fijians.  

The large number of students dropping out early from school is a critical problem since it is one of the major contributing factors to the growing incidence of poverty.  In turn, poverty impacts so adversely on the socio-economic development of this country.  With limited skills and knowledge to improve their livelihoods, early school leavers make up a large number of the unemployed and subsequently they contribute disproportionately to the rising tide of crime and violence occurring in most urban centres. 

Health continues to be a growing and increasingly complex field of competing priorities from all perspectives – from the individuals to governments, businesses, health professionals and the health services system. A healthy and productive population is a key for sustainable economic development. Despite consuming a major portion of governments budget (>3% of GDP and 9% of total budget), health care funding continues to be lower as compared to other countries in the region.  

The key development constraints and challenges in the health sector include: efficient and effective use of resources in health service delivery; responding to the increasing numbers of HIV/AIDS and STIs cases; reversing the deteriorating rates of child mortality, infant mortality and maternal mortality; reduction in the incidence of Non-Communicable and life-style diseases; emigration of skilled health care professionals; limited capacity for policy analysis and research; improving physical and financial access to good-quality health services in depressed domestic and global economy; the increasing demand and cost for health care; the need to improve stewardship over policy formulation, health legislation, regulation, resource mobilization, coordination, monitoring, and evaluation, strengthen the national health system and improve its management, and to improve the availability and management of health resources (financial, human, infrastructure, and so forth); reducing the disease burden attributable to priority diseases and health problems; increasing consumers‘ awareness of their health status and poor lifestyle, and fostering effective collaboration and partnership with all health actors, NGOs and CSOs. 

Women's higher risk of poverty and destitution is associated with labor force discrimination, increasing divorce and separation rates and problems in collecting maintenance payments from departed spouse.  Women constitute the majority of beneficiaries under the Social Welfare Department's Family Assistance Scheme.  Female unemployment increased slightly from 7.8% in 1996 to 8.7% in 2005, perhaps as a result of loss of jobs in the garment and other  industries. 

The major challenges to enhancing the development of women include implementation and monitoring of the Equal Employment Opportunity Policy in all workplaces, presence of occupational discrimination and gender segregation in labor markets; monitoring the compliance of laws and administrative practices and procedures to CEDAW Articles; maintaining effective social safety nets for the employed in particular training and investment to promote alternative livelihoods for women displaced from the manufacturing sector; promoting rural women's advancement in economic activities without destroying sustainability of women's fisheries and therefore household food security; continuing social impact analysis of trade agreements on impact on women's health of imported, low quality foods; increasing incidence of domestic violence; decreasing fertility of women especially rural Fijian women; spreading of HIV/AIDS as an epidemic; and collection and analysis of gender-sensitive data. 

Fiji is a multi-racial, multi-cultural and pluralistic country with a multiplicity of languages, religions and ways of living. However, the country is a fragmented society because there is no unity amongst the citizens of this nation. There is an absence of a National Identity. At present the citizens of Fiji identify themselves more strongly with their religions, ethnicity and by their various community or province than by nationality.  

These differences have been utilised by many of our political leaders to gain political mileage. During the past thirty eight years, political leadership played a key role in dividing the citizens of Fiji rather than uniting us. The division was derived from the colonial system of leadership of divide and rule. Our leaders have failed to unite our various communities in a form that truly reflects our diversity. 

The lack of social cohesion has contributed to exclusiveness and lower economic growth. One of the main challenges we face is uniting people who comprise several ethnic communities with diverse social, economic and cultural backgrounds.  It is this diversity which requires a symbol that is acceptable for the whole population, as a basis for the development of national identity that creates firm allegiance.  This allegiance can be constructed, made concrete, communicated and maintained over time.  The process to negotiate a national identity is a continuous one which demands inclusiveness and the fair representation of people and cultures.  The end results ought to be a shared conviction that people are socialized into believing its essence, resulting in its internalization.   

A process needs to be designed and facilitated that can include the participation of Fiji‘s peoples and our leaders need to be focused on our nation rather than their sectional interests. We need to build Fiji into a non-racial, culturally-vibrant and united, well-governed, truly democratic nation that seeks progress, and prosperity through merit-based equality of opportunity, justice and peace. Establishing a national identity through a common name is of utmost importance.  Education, religion, and culture have important roles to play in our peaceful co-existence, social cohesion and nation building. 

Strategic Priorities for Social Development  

Expanding the national and local economies is vital to create more economic opportunities and to underpin improved well-being and more sustainable livelihoods. Emphasis will be placed on directing adequate resources to core priority sectors of health, education, housing, micro finance initiatives and infrastructure development, particularly in depressed and under-developed regions, in both rural and urban areas. To enhance their effectiveness, poverty reduction strategies and programmes will be based on needs assessment, targeted to the intended beneficiaries and coordinated with relevant stakeholders. National Minimum Wage and the enhancement of productivity will be addressed. Communities and Community Based Organizations will be empowered through capacity building programs. Local plans will be developed and implemented to enable greater access to social services and economic opportunities. 

Reducing Poverty to a Negligible Level 

 Access to quality education for all will remain a priority for Fiji. Improved quality of teaching supplemented by progressive and responsive curriculum will ensure the achievement of an educated and skilled workforce. School dropouts andskills gaps will be addressed through initiatives such as the strengthening of the National Youth Service Scheme, enhancement of vocational and community based informal education, and alignment of training to national priorities. Critical will be the need to establish a Modular System of education at secondary schools to provide broad based education for all students while at the same time giving students choice to develop their potential along their areas of interest. 

Making Fiji a Knowledge Based Society 

Fiji‘s progress towards the achievement of the health related Millennium Development Goals (MDGs) has not been encouraging. Health service delivery will be a nation-wide effort to bring it to acceptable levels. In order to enhance health service delivery the areas to be targeted are evidence-based resource allocation and meeting manpower needs. The need for more private sector involvement, the identification of alternative sources of health financing and outsourcing of non-essential services will be pursued. 

Improving Health Service Delivery  

National identity through a common name is critical for building social cohesion and for elimination of racial discrimination in Fiji. To change for the common good, civic and cultural education will be pursued with vigor, and will focus on developing our strength through our common shared values and interests. As a long term 

Developing a Common National Identity and Building Social Cohesion  

commitment, the initiatives for building social cohesion and national unity will continue well beyond 2014.  These include civic and multicultural education, establishment of a Commission for Healing, Reconciliation, Truth and Justice, promulgation of the Anti-Discrimination Act, the teaching of vernacular languages and comparative studies on religion for better appreciation and understanding of other cultures.   

Implementation and Monitoring Framework 

The successful implementation of the Roadmap will depend to a large extent on a robust and effective implementation and monitoring framework. All stakeholders and implementing agencies including Ministries and Departments will ensure that all key initiatives and major outputs are achieved within the timeframe. The framework to ensure a systematic and coherent approach to implementation will include the following: 

(i) Roadmap - based on the Strategic Framework for Change and will outline the outputs and respective strategies and programmes; 

(ii) Action Plans - based on the Roadmap, Ministries and Departments are required to develop Action Plans which will be basis for the formulation of their Annual Corporate Plans; 

(iii) Nationwide Effort - all stakeholders including Ministries and Departments will contribute positively to the implementation programme; and 

(iv)Implementation and Monitoring – an implementation and monitoring framework will be established to ensure systemic and effective implementation. 

The RDSSED monitoring mechanism will involve the National Peoples Charter Council (NPCC), sub-committees, a secretariat, Ministries and Departments, private sector and civil society.  The members of the NPCC will be inclusive and representative of the people of Fiji.  Therefore, members will be drawn from the Government of the day, recognised private sector organisations, Non Government Organisations, religious organisations, provincial councils, advisory councils and other community-based organisations. 

In light of this necessity and the need for greater public inclusiveness, dialogue and participation, the NPCC, shall be actively engaged in performing the role of facilitator, setting and shaping the ongoing agenda for change.  

The NPCC will monitor the outputs and their respective Key Performance Indicators (KPIs), as contained in this Roadmap. The NPCC and sub-committees will not limit themselves to assessing progress against the KPIs: an important function of the sub-committees will be to assess the continuing relevance of outcomes and KPIs and the quality of information they are providing so that the adequacy of all KPIs is kept under review. 

The functions of the NPCC shall include:

Monitor Roadmap implementation focusing on the outputs and key performance indicators; 

Provide forums for consultation and dialogue for consensus building on national development issues;  

Carry out civic education on governance issues, national identity and other issues considered relevant and important;  

Evaluate and review performance of implementing agencies;  

Review of the Roadmap when necessary for the purpose of updating and adjustment; and  

Provide policy advice and support to the Prime Minister and Cabinet on issues pertaining to the Roadmap. 

Table of Contents 

Chapter 1Vision, Mission and Guiding Principles ...................................................... 1 

1.1Introduction ........................................................................................................ 1 

1.2Vision: “A Better Fiji for All” ........................................................................... 1 

1.2.1Good Governance and a Truly Democratic Nation ........................................ 1 

1.2.2Progress and Prosperity for All ....................................................................... 2 

1.2.3Peaceful, Non-Racial and United Society ....................................................... 3 

1.3Mission and Guiding Principles ........................................................................ 3 

Chapter 2Good Governance.......................................................................................... 5 

2.1Review of Issues and Challenges....................................................................... 5 

2.1.1Constitution ..................................................................................................... 6 

2.1.2The Electoral and Parliamentary System ........................................................ 7 

2.1.3National Security ............................................................................................ 8 

2.1.4Law and Justice ............................................................................................. 11 

2.1.5The Accountability Framework .................................................................... 19 

2.1.6Public Sector Reform .................................................................................... 21 

2.1.7Indigenous Institutions .................................................................................. 26 

2.1.8Leadership ..................................................................................................... 29 

2.2Policy Objectives, Strategies and Key Performance Indicators ................. 32 

2.2.1Electoral & Ancillary Reforms ..................................................................... 32 

2.2.2National Security .......................................................................................... 33 

2.2.3Law and Justice ............................................................................................. 34 

2.2.4Enhancing the Accountability Framework ................................................... 36 

2.2.5Public Sector Reform .................................................................................... 38 

2.2.6Indigenous Institutions .................................................................................. 40 

2.2.7Leadership ..................................................................................................... 41 

Chapter 3Economic Development .............................................................................. 43 

3.1Macroeconomic Performance ........................................................................ 43 

3.1.1International Economy .................................................................................. 43 

3.1.2Regional Economy ........................................................................................ 43 

3.1.3Domestic Economy ....................................................................................... 44 

3.1.4Private Consumption ..................................................................................... 45 

3.1.5Inflation ......................................................................................................... 45 

3.1.6Investment ..................................................................................................... 45 

3.1.7Interest Rates ................................................................................................. 46 

3.1.8Government Revenue and Expenditure ........................................................ 47 

3.1.9Debt Position ................................................................................................. 47 

3.1.10Trade ......................................................................................................... 48 

3.1.11Foreign Reserves and the Exchange Rate ................................................. 48 

3.2Sectoral Developments.................................................................................... 49 

3.2.1Macroeconomic Management ....................................................................... 49 

3.2.2Tourism ......................................................................................................... 49 

3.2.3Manufacturing and Commerce ..................................................................... 50 

3.2.4Information and Telecommunications .......................................................... 51 

3.2.5Micro, Small and Medium Enterprises ......................................................... 53 

3.2.6International Relations and External Trade .................................................. 53 

3.2.7Employment and the Labour Market ............................................................ 54 

3.2.8Land Resources Development and Management .......................................... 56 

3.2.9Sugar ............................................................................................................. 57 

3.2.10Non-Sugar Agriculture and Livestock ...................................................... 60 

3.2.11Forestry ..................................................................................................... 61 

3.2.12Fisheries Resources ................................................................................... 63 

3.2.13Mineral and Groundwater ......................................................................... 65 

3.2.14Financial Services ..................................................................................... 67 

3.2.15Transport ................................................................................................... 68 

3.2.16Energy ....................................................................................................... 69 

3.2.17Water and Sewerage ................................................................................. 71 

3.3Policy Objectives, Strategies and Key Performance Indicators ................. 72 

3.3.1Macroeconomic Management ....................................................................... 72 

3.3.2Tourism ......................................................................................................... 73 

3.3.3Manufacturing and Commerce ..................................................................... 75 

3.3.4Information and Telecommunications .......................................................... 76 

3.3.5Micro, Small and Medium Enterprises ......................................................... 78 

3.3.6International Relations and External Trade .................................................. 79 

3.3.7Employment and the Labour Market ............................................................ 80 

3.3.8Land Resources Development and Management .......................................... 82 

3.3.9Sugar ............................................................................................................. 83 

3.3.10Non-Sugar Agriculture and Livestock ...................................................... 84 

3.3.11Forestry ..................................................................................................... 85 

3.3.12Fisheries Resources ................................................................................... 86 

3.3.13Mineral and Groundwater ......................................................................... 88 

3.3.14    Financial Services ....................................................................................... 89 

3.3.15Transport ................................................................................................... 93 

3.3.16Energy ....................................................................................................... 96 

3.3.17Water and Sewerage ................................................................................. 98 

Chapter 4Socio-Cultural Development .................................................................... 100 

4.1Review of Social Development ..................................................................... 100 

4.1.1Human Development Index and Millennium Development Goals ............. 100 

4.1.2Global Partnership for Development .......................................................... 100 

4.1.3National Identity and Social Cohesion ....................................................... 102 

4.1.4Poverty Reduction ....................................................................................... 103 

4.1.5Housing and Urban Development ............................................................... 106 

4.1.6Social Justice ............................................................................................... 108 

4.1.7Education and Training ............................................................................... 109 

4.1.8Health .......................................................................................................... 110 

4.1.9Gender Equality and Women in Development ........................................... 112 

4.1.10Children and Youth ................................................................................. 115 

4.1.11Sports Development ................................................................................ 117 

4.1.12Environmental Sustainability .................................................................. 118 

4.1.13Culture and Heritage ............................................................................... 121 

4.1.14Disaster Risk Reduction and Disaster Management ............................... 122 

4.1.15Rural and Outer Island Development ..................................................... 124 

4.2Policy Objectives, Strategies and Key Performance Indicators ............... 126 

4.2.1Building National Identity and Social Cohesion ........................................ 126 

4.2.2Poverty Alleviation ..................................................................................... 127 

4.2.3Housing and Urban Development ............................................................... 128 

4.2.4Social Justice ............................................................................................... 130 

4.2.5Education and Training ............................................................................... 131 

4.2.6Health .......................................................................................................... 133 

4.2.7Gender Equality and Women Development ............................................... 135 

4.2.8Children and Youth ..................................................................................... 138 

4.2.9Sports Development .................................................................................... 139 

4.2.10Environmental Sustainability .................................................................. 140 

4.2.11Culture and Heritage ............................................................................... 141 

4.2.12Disaster Risk Reduction and Disaster Management ............................... 142 

4.2.13Rural and Outer Islands Development .................................................... 143 

Chapter 5Implementation and Monitoring Mechanism ........................................ 145 

5.1The Implementation Framework................................................................... 145 

5.2The Monitoring Mechanism .......................................................................... 146 

5.2.1Composition and Functions of the NPCC ................................................... 146 

5.2.2Management Information System ............................................................... 149 

CHAPTER 1 

Chapter 1Vision, Mission and Guiding Principles 

1.1Introduction 

The Roadmap for Democracy and Sustainable Socio-economic Development (RDSSED) 2010-2014 sets out a strategic framework to achieve sustainable democracy, good and just governance, socio-economic development and national unity. The key foundation of the Roadmap is the Peoples Charter for Change, Peace and Progress (PCCPP) which was compiled through an unprecedented nationwide consultation process, involving a wide range of stakeholders. The Roadmap is logically aligned to the mandate handed down by His Excellency, the President in 2007, as well as the Strategic Framework for Change announced by the Prime Minister on 1 July 2009.  

In order to ensure an inclusive approach, ownership and successful implementation, the Roadmap has been compiled in consultation with private sector, civil society and government to take on board the current political, social and economic situation, both on the international and domestic fronts.   

This chapter outlines the Vision of the Roadmap, together with the Mission and Guiding Principles that Government will follow in implementing policies. The Vision is a statement of Fiji‘s aspirations in the short, medium and long term. The Mission and Guiding Principles summarize the approach and philosophy that Government will adopt in designing and implementing policies to achieve the Vision.  

Chapter 2 reviews governance issues and challenges and sets out the policies, strategies and key performance indicators for the next five years. Similarly, reviews and policies, strategies and key performance indicators for economic and socio-cultural development are addressed in chapters 3 and 4 respectively. Chapter 5 outlines the implementation and monitoring framework of the Roadmap.  

1.2Vision: “A Better Fiji for All” 

The objective of the Roadmap is to identify and implement policies to take the country forward to achieve the collective vision of ―A Better Fiji for All‖. This vision should be shared by all citizens of Fiji. A better Fiji is one that is well governed, truly democratic, progressive, prosperous, non-racial, united and peaceful. 

1.2.1Good Governance and a Truly Democratic Nation 

Fiji needs to entrench a culture of good governance in particular a greater commitment to equality under the law for all people regardless of race, gender or circumstance in all areas of Government and throughout society in order to end the cycle of coups and achieve sustainable democracy. The formulation of a new Constitution, which is fair and just, will provide a solid foundation and framework for rebuilding the nation, is a fundamental component of this Roadmap. Equally important is electoral reform to bring about fair and free elections. The 

current electoral system will be reviewed to promote racial tolerance and unity and eliminate ethnic based elections, a major impediment for national development.   

To improve the accountability framework, improve access to justice and strengthen the operation of the rule of law, key governance institutions responsible for maintaining law and order and holding Government accountable will be enhanced in the medium to long term. Code of Conduct and Freedom of Information Decrees will lead to greater accountability on the part of holders of high public office and to wider access by our citizens to Government information and processes. Further legal reforms will be implemented to enhance accountability, and maintain freedom of the media in Fiji. 

Good governance of the indigenous population will be addressed through the implementation of good governance practices in indigenous institutions. A new national security framework will be adopted to enhance coordination and improve the State‘s response to security threats to the nation, including a re-defined role for the military that incorporates the concept of human security to improve its relationship with civilian Governments and the people.  

It is imperative that the Public Service must be efficient and effective in both capacity and performance in the 21st Century. It will instill a new performance and service – oriented culture – one that values high productivity, smarter and effective work systems and enforces merit based appointments. It will be lean and accountable to those it serves.  

1.2.2Progress and Prosperity for All 

Progress, prosperity and decent living standards can only be achieved when the economy is growing. The financial and economic recession experienced worldwide, compounded by high occurrence of natural disasters and flash floods and our vulnerability have adversely affected Fiji‘s economy causing below par performance. The pro-growth and pro-poor measures announced in the 2009 Budget in relation to raising exports, enhancing domestic production, increasing private sector investment and infrastructure development, are in progress and these are expected to contribute to positivegrowth in 2010 and beyond.  

Enduring solutions on the issue of access to land for productive economic and social purposes will be developed.  Major land reforms will be pursued through a genuine consultative process with all stakeholders. Of major importance will be the need to ensure that the interests of landowners and tenants are addressed in a holistic and equitable manner.  

Prosperity also means making sure that all people share in the benefits of growth and in the opportunities which it generates for improving living standards. Particular emphasis will be placed on directing adequate resources to core priority sectors of health, education, housing, micro finance initiatives and infrastructure development, particularly in depressed and under-developed regions, in both rural and urban areas. National Minimum Wage and the enhancement of productivity will be addressed. Communities and Community Based Organizations will be empowered through capacity building programs. Local plans will be developed and implemented to enable greater access to social services and economic opportunities. 

Narrowing the income and opportunity disparities that exist in society will also contribute to a greater sense of national identity and social cohesion. This is important in achieving stability and peace in the country. Peace, stability and a feeling of security are essential to achieve sustained high economic growth, and prosperity.  

In sharing the benefits of growth, we must ensure that development does not impact negatively on the environment in order that our future generations may also enjoy the benefits of our natural resources. 

1.2.3Peaceful, Non-Racial and United Society 

Achieving peace, racial tolerance and unity in our multi-cultural country is a long term commitment that must be vigorously pursued through building understanding amongst leaders and communities at all levels - from local to national, as well as through recognising and appreciating the contribution by the different communities, to nation building. This is essential for peaceful co-existence and social cohesion in our multi-cultural society. 

National identity through a common name is critical for building social cohesion, elimination of racial discrimination and developing a united society. To change for the common good, civic and cultural education will be pursued with vigor, focusing on our shared values and interests. As a long term commitment, the initiatives for building social cohesion and national unity will continue well beyond the duration of the Roadmap. These include civic and multicultural education, the teaching of vernacular languages and comparative studies on religion for better appreciation and understanding of other cultures.   

Government recognizes, accepts and deeply respects that the i-taukei and other communities in Fiji have their cultures, histories and sense of identities that they deeply cherish and that these qualities have enabled them to contribute effectively, in great measure to the development of Fiji as a multicultural, progressive democratic nation. 

For the people of Fiji to build and develop a deeper sense of multicultural nationhood into the future, we must ensure that all communities‘ interests that give each of them their identities and sense of place and belonging to Fiji must be recognized and respected in our relationship and mutual conduct. 

1.3Mission and Guiding Principles 

Government‘s Mission is to develop and implement the best political, social and economic policies in order to advance the goals of Good Governance, Prosperity, Peace and National Unity. Government has consulted widely with the private sector and with non-government organizations to identify the policies appropriate to the current social and economic situation in Fiji. Based upon these shared priorities, the Roadmap will best serve the needs of national unity, peace and harmony. 

In pursuing its Mission, Government will abide by a number of Guiding Principles. These are: 

Equality and dignity of all citizens; 

Respect for the diverse cultural, religious and philosophical beliefs; 

Unity among people driven by a common purpose and citizenship;  

Good and just governance; 

Sustainable economic growth; 

Social and economic justice;  

Equitable access to the benefits of development including access to basic needs and services; 

Merit- based equality of opportunity for all; and 

Complying with international commitments. 

CHAPTER 2 

Chapter 2Good Governance 

2.1Review of Issues and Challenges  

Deteriorating governance has been a major problem in Fiji since Independence. An electoral system that is race-based, the lack of accountability, inefficient service delivery throughout the public sector and a weak national security framework have all contributed to political instability, the cycle of coups, and a general lack of public confidence in the system of Government. The vast majority of the population desperately wants to see Fiji put an end to the cycle of coups. A wide range of factors have been identified as contributing to the coups in their own different ways from the complex relationship between ethnicity and politics, which has led to tension and political instability to socio-economic conditions giving rise to political grievances. Weak and unjust systems of governance including the role of the military have also heightened conflict as have other sources of power in Fiji, traditional leadership arrangements, such as the churches and the media.  

There is a need to entrench a culture of democratic good governance such that it becomes the dominant political thinking and behaviour of the people of Fiji. Principles of good governance need to be applied to both the formal governance framework, to the institutions within it, and to how the country is governed on a daily basis in terms of policy formulation and decision making. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and several other UN bodies, describe good governance as having eight major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. It assures that corruption is minimised; the views of minorities are taken into account; and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society. 

Various indicators have been constructed to measure various aspects of government activities and governance quality.  These include the Worldwide Governance Indicators (WGI), the University of the South Pacific‘s Composite Governance Index and Transparency International‘s Corruption Perception Index. The WGI measures six aggregate governance indicators:  (i) Voice and Accountability; (ii) Political Stability and Absence of Violence; (iii) Government Effectiveness; (iv) Regulatory Quality; (v) Rule of Law; and (vi) Control of Corruption.   

The 2008 WGI survey showed that Fiji‘s percentile rank had worsened for all but two dimensions of governance, which improved only slightly from 2007 figures. Overall very low ranks were recorded for all governance indicators  Generally since 2006 most of the indicators have worsened, with a majority falling below the 50th percentile rank.  In comparison, Fiji ranked well below Samoa, Vanuatu, American Samoa, Kiribati and Tuvalu in almost all governance indicators in 2008. 

2.1.1Constitution 

On 10 April 2009 His Excellency the President abrogated the 1997 Constitution to allow the Government to implement the reforms aimed at entrenching a culture of equal opportunity as envisaged under the Peoples Charter. The State is now re-established under Presidential Decree[s], which continues to respect the independence of the judiciary and accountability institutions and the operation of other key arms of the State, except for Parliament. 

The adoption of a new Constitution is now a major priority for Government. Any new Constitution will of course have to recognise the basic constitutional principles, which have existed in Fiji since Independence such as sovereignty, parliamentary democracy, the separation of powers and the protection of basic human rights under a Bill of Rights and supremacy of the rule of law. Government will also ensure that the underlying principles of the Peoples Charter in particular the principle of equal opportunity and equality under the law for all citizens regardless of race, gender or circumstance in all areas of Government and society are also recognised. To ensure public confidence the new Constitution is likely to retain many of the non-contentious provisions of the 1997 Constitution and will incorporate major reforms proposed under the Peoples Charter including: 

i.adoption of an Open List Proportional Representation electoral and voting system; 

ii.adoption of the common name ―Fijian‖ for all citizens and to change the official name of the country to ―Fiji‖;  

iii.provision that no coup can abrogate the Constitution;  

iv.enhancing and clarifying the role of the military and the country‘s national security framework;  

v.stronger protection for the application of the Bill of Rights such as adoption of CEDAW definitions for discrimination against women and the girl-child; and 

vi.proposals to strengthen the operation of State services and the accountability framework.  

2.1.2The Electoral and Parliamentary System 

Fiji‘s single member (majority) electoral system has been in place since Independence in 1970 and has always provided for communal representation.  In 1990, the system was altered to guarantee indigenous Fijians control of the House of Representatives.  General elections in Fiji between 1972 and 1994 were conducted under the First-Past-The-Post (FPTP) electoral system.  In 1996, the system was subjected to extensive review as part of the overall review of the 1990 Constitution by the Reeves Commission.  In 1998, based on recommendations made by the Reeves Commission and also the Parliamentary Select Committee, the electoral system was changed to implement the Alternative Vote (AV) system.   

None of the three general elections (1999, 2001, 2006) held under the AV system have been fair. They have all yielded highly distorted results where certain parties win far too many seats considering their support, while others languish with few or no seats even with reasonable support. If Fiji wants to be a genuine democracy, it cannot employ electoral arrangements that violate democratic principles.  

While Fiji‘s political problems cannot all be laid at the door of the present electoral system, there is no doubt that it has had seriously negative effects on Fiji‘s political life. According to the Reeves Constitution Review Report, race-based politics have become inevitable in Fiji as a direct result of communal voting and representation in Parliament. Furthermore, the 2008 Peoples Charter for Change, Peace and Progress, State of the Nation and Economy (PCCPP & SNE) Report noted that this system has directly contributed to the political instability leading to the coups and at times the complete breakdown in law and order.  

The communal voting and representation system set out under the 1997 Constitution is flawed in a number of areas because:  

it does not conform to the United Nations Declaration on Human Rights and the Convention for the Elimination of All Forms of Racial Discrimination;   

it has led to political instability. The complex relationship between ethnicity and politics has led to tension and contributed to Fiji‘s coups; 

it has not achieved the objective of drawing the country together or of protecting the interests of identified ethnic groups. In fact, socio-culturalfactors and issues relating to identity and culture have become politicised and become the basis for mobilization; which is one of the contributing factors to Fiji‘s coups; and 

the demographic change whereby the indigenous people now form the majority population does not warrant any special arrangement to protect their interests.  

Besides the excessive use of communal or reserved representation in violation of basic human rights principles, this electoral and voting system is unfair due to the:  

lack of equal suffrage given the disproportional number of voters between single member constituencies; 

use of preferences producing results that do not accurately reflect the will of the people, as evidenced by the lack of representation for certain political parties who have received a fair proportion of first preference votes; 

communal voting and representation using a single member constituency or majority/plurality electoral system has also made it impossible to encourage a move away from race-based politics as political parties only need to appeal to specific ethnic interests to secure seats; and 

the complexity of the current system requires a high level of literacy, which has led to an unusually high number of invalid votes (9% in 1999, 12% in 2001, and 9% in 2006). 

Fiji needs an electoral and voting system that more accurately reflects the will of the people to enable ‗government of the people, by the people, for the people‘ based on principles of equal suffrage and equal opportunity for all voters regardless of race, gender or circumstance.   

In the short term, steps will be taken to formulate the appropriate constitutional and legal framework to facilitate the adoption of the country‘s electoral and parliamentary system under the new Constitution in 2012.  

Further ancillary issues to be addressed include: 

a.the size and composition of Parliament;  

b.compulsory voting; 

c.the voting age; 

d.eligibility of candidates; 

e.residency restrictions on the right to vote; 

f.electoral rules and regulations to ensure  free and fair elections; and 

g.strengthening the capacity of electoral administrative bodies. 

Action will be taken to strengthen the effectiveness of the country‘s electoral administrative bodies and processes to enable the holding of free and fair elections. The continued development of an effective voter registration system is an immediate to short term measure. Furthermore, an ideal organisational structure for the Elections Office will need to be in place by 2012 to facilitate preparations for the next general election in 2014. 

2.1.3 National Security 

Fiji‘s national security concerns encompass a broad range of areas including protecting the country‘s sovereignty from attack, ending the cycle of coups and maintaining law and order.  It also encompasses Fiji‘s interests in protecting its tourism industry or offshore environment; border security; protective security; emergency management and effective coordination of disaster relief.  Essentially the functions of security agencies are interlinked.  Effectively addressing these areas provides the platform for the peace and stability that is vital for socio-economic growth and national development.  

On a broader perspective, the Ministry of Defence, National Security & Immigration formulates and implements policies relating to the nation‘s security in the areas of counter terrorism, border control, emergency management, defence, and law and order. The implementing agencies consist of the Republic of Fiji Military Forces (RFMF), Fiji Police Force, Department of Immigration, Fiji Islands Customs Service, Department of Emergency Management and the Financial Intelligence Unit (FIU).  Serious threats to public health and the environment may also require input from other agencies such as the Ministry of Health and Department of Environment.  

The RFMF is primarilyresponsible for defence and plays a supportive role to the Police on internal security. In pursuing its foreign policy, Government has engaged the RFMF and the Police on international peacekeeping duties, while the RFMF has been engaged in subsidiary roles such as nation building, youth training & infrastructure development in rural areas, protection of Fiji‘s 200 mile Exclusive Economic Zone (EEZ), support operations during disasters, emergencies and maritime search and rescue. 

The security and management of Fiji‘s border, administration of citizenship and facilitation of migration and control functions at our major ports and airports are important issues to be addressed.  This is more so in light of the global rise in people and drug trafficking, identity fraud, money laundering, prostitution and illegal immigrants. The collaborative effort of the Departments of Immigration, Quarantine, Customs and the Border Police is critical in this regard.  

Counter terrorism activities have also become a permanent feature of global, regional and national consideration. The growing sophistication of terrorism could continue to dramatically change the security landscape globally; and the need for cooperation of inter-agency stakeholders in future security operations, including on a regional basis, is vital. 

Related to terrorist activities and also to corruption and wider economic crimes is the need to monitor flow of funds through the financial system, both domestically and internationally. In this regard, the Financial Intelligence Unit (FIU) plays a critical role in monitoring the flow of funds through the financial system to identify and investigate suspicious transactions related to money laundering, corruption and other illegal activities and provide this information to investigation and enforcement agencies.  

Fiji is prone to natural disasters and it demonstrates the need for having effective disaster management policies and a more effective legal framework and action plan. So far, opportunities to gauge the effectiveness of disaster management plans only arise during a natural disaster and more is needed in terms of providing for disaster management drills at the national and local level in relation to the use of State resources to provide assistance.  

The vast majority of Fiji‘s population wants to see an end to the cycle of coups as it ruins lives; destroys social and economic opportunity; and leaves lasting fissures within society.  The Peoples Charter proposes a set of 14 key principles and specific recommendations that require comprehensive action towards ending the cycle of coups.  The key principles are aimed at:  

improving national security coordination through a national security framework that provides for the formal establishment of a National Security Council (NSC) to effectively control and coordinate appropriate responses to all national security threats and allow for greater public accountability for national security; and  

realigning the role of the military to place greater emphasis on the concept of human security to facilitate greater involvement by the RFMF in providing for basic needs and improving its relationship with the people.  

This national security framework needs to be established under the new Constitution to strengthen coordination and improve the State‘s response in all areas. The NSC will control and respond to national security threats.   

The composition and role of the RFMF as a security institution will remain the same given the very real potential for disruptive politics leading to conflict and instability. However, this role will be redefined under the national security framework and expanded along the human security paradigm. Formal measures will also be put in place to ensure:  

the Police remain the primary law and order institution and the point at which the military can intervene is clarified; 

there is provision for the clear accountability of the military to civilian governments through a redefined relationship; and  

the military remains politically neutral at all times.   

Internal reviews will be carried out by the Ministry of Defence and other national security agencies including the RFMF and Police Force in the implementation of these recommendations.  Subject to formal adoption of these recommendations, a plan of action will be developed to facilitate implementation from 2010 onwards particularly in relation to the incorporation of a human security framework into the operations of the RFMF.  

The adoption of formal counter-terrorism measures remains a priority and progress will be made towards the revival of a national intelligence agency. The National Intelligence Agency (NIA) is expected to become operational in 2010. Another priority is the on-going implementation of the Disaster Management Act beginning with the establishment and subsequent merger of the Emergency Management Unit with the National Disaster Management Office. Border control systems will be strengthened beginning with a review of the operational machinery. It is also imperative that institutions charged with national security responsibilities are adequately resourced to facilitate the effective execution of their roles and functions.   

2.1.4Law and Justice 

The rule of law must be a basic feature of an effective system of democratic governance.  For there to be effective and efficient rule of law, the different parts of the legal system need to operate and interact in the following way: 

iConstitutional Rule: the existence of a set of basic rules and principles by which the people of Fiji have agreed to be bound; 

iiGovernment and other State institutions are subject to the law; 

iiiThe law making functions vested in an independent legislature whereby laws can only be changed by an established process that is transparent and accountable;  

ivImpartial and independent courts exist to interpret the law; 

vLaws are transparent and accessible, particularly for the most vulnerable; 

viLaws are enforced and interpreted consistently and their application is efficient and timely; and 

viiLaws uphold and protect basic human rights in particular that all citizens are equal under the law and should not be discriminated against on the grounds of race, gender or circumstance.  

The effectiveness of the Law and Justice Sector in part depends on the ability of the different institutions to operate together in a coherent, coordinated and mutually supportive way.  

Box 2.1: Fiji’s Law and Justice Sector 

Legal Framework: 

As provided for under the Constitution, Acts of Parliament, Regulations and Decrees, and the common law of Fiji. 

The Courts: 

Consisting of the Supreme Court, Court of Appeal, High Court, Magistrates Court and Small Claims Tribunal. 

Law Enforcement: 

The Fiji Police Force, public agencies that enforce specific laws like FIRCA, FICAC, LTA etc. and non-government policing initiatives like private security firms. 

State Law Officers  

Fiji‘s Attorney-General and the Solicitor-General and all Government lawyers. 

Prosecution Services: 

The Director of Public Prosecutions and Police Prosecution Service plus some of the other agencies referred to above. 

Parliament: 

This includes the Justice, Law & Order Sector Standing Committee of the House of Representatives. 

Mediators and Arbitrators: 

Chief Tribunal – Employment Tribunal, Agricultural Tribunal, Commerce Commission.  

The Penal System: 

Fiji Prisons and Corrections Service. 

Legal Profession: 

Members of the Bar and the Fiji Law Society.  The work of  the Legal Aid Commission is also relevant in this regard. 

Human Rights and Law Reform Bodies: 

Fiji Law Reform Commission and Fiji Human Rights Commission. 

Civil Society Organisations: 

Non-Government organisations and community bodies focused on the promotion of human rights and other matters related to the administration of justice. 

Technically, the Law and Justice Sector is operating reasonably well. In many areas of the legal system where significant problems existed a few years ago, progress has been or is being made. The Australia/Fiji Law and Justice Programme, now suspended, was starting to achieve modest successes in improving the operation of different institutions in the sector. For the first time, it was starting to function and operate as a sector and at a more strategic level  in addressing problems such as smoothing out the operation of the criminal justice system and overcoming delays in prosecutions. The program had assisted Fiji courts and other agencies to reduce case back logs; improve the treatment of juvenile offenders; expand access to legal aid; and to establish a Family Court and associated counselling service. It was also instrumental in improving community policing and the operation of the prosecution service.  The law revision project is near completion. Departments are now vetting revised laws relevant to their portfolios. Upon completion, the laws will be made available on-line. 

The cycle of coups has adversely affected the operation of the rule of law requiring reform measures to the criminal justice system to strengthen the sanctions against coups. Preventing further coups is now a priority for the law and justice sector and action is needed to implement the 14 key principles for ending the coup culture, in particular measures that strengthen the penalties and operation of criminal law in relation to offences related to coups, particularly convictions for treason. 

There is scope for further improvement in overcoming the impact of the coups; accountability in the judiciary; giving effect to law reform recommendations; strengthening the effectiveness of law enforcement; ensuring greater public awareness of the law and access to justice for all citizens.  

The Courts System 

A number of key issues have been identified as being relevant to the effective and efficient disposal of cases (both civil and criminal) by the courts, some of which are highlighted below: 

a.Size of the Judiciary: the number of Judges, Magistrates and other judicial officers (including the creation of new positions like Master of the High Court); 

b.Court Administration: improved case management in relation to pre-trial motions; 

c.Jurisdiction: specialised courts and related matters;  

d.Legal Profession: the performance and conduct of all legal practitioners including Government lawyers and prosecutors; and 

e.The availability of alternative Dispute Resolution and more formal settlement procedures. 

Court congestion and a backlog of cases is currently the major hindrance to providing equal access to justice and ensuring the effective enforcement of law through the court system. The Beattie Report (1994) highlighted some reasons for delays in the ―disposal of the business of the Courts‖, which is still valid today.  This mainly relate to the conduct of the legal profession and court administration in the performance of its functions. Statistics for 2006 indicate that of the total number of contested cases set down for hearing in a court of law, 62.5% were either adjourned or withdrawn and that on average it takes 18 months to dispose of civil cases (particularly in the Magistrates Court). 

However, the implementation of some of the recommendations of the Beattie Report in relation to case management by the courts are showing signs of improving the effectiveness of the courts particularly in relation to the disposal of civil actions by the High Court of Fiji. Delays in the court system, particularly in the High Court, have been reduced with most cases now being disposed of within a calendar year.  Prior to the implementation of these measures, it could take up to three to five years to bring a civil action to trial. However, there are still some long outstanding cases that have been heard, but where judgements have not yet been handed down. 

Efforts are on-going to address these issues many of which are set out in the Reports on Fiji‘s Law and Justice Sector. Measures to be taken call for greater cooperation and coordination between major stakeholders namely the Judiciary, the Director of Public Prosecutions, and also the Fiji Law Society particularly in relation to the development of standards that need to be met to ensure cases are handled properly and disposed of efficiently.  

The efficient disposal of civil cases is of particular importance for private sector activity and the development of a market economy that recognises enforceable contracts and enforceable property rights. In many jurisdictions legal and administrative reforms have or are being pursued to improve the efficiency and effectiveness of court systems, which include the implementation of alternative dispute resolution mechanisms that promote conciliation, mediation and arbitration. In Fiji, foreign investors already enjoy access to alternative dispute resolution mechanisms under the Foreign Investment Act 1999 and the legal framework for industrial relations has always provided alternative dispute resolution, which the new Employment Relations Promulgation (2007) seeks to improve on.   

The issue of judicial independence is a continuing concern to the general public.  The need for fiscal autonomy and the provision of adequate resources to enable the effective performance of its functions is one particular area that does require consideration. The UN Basic Principles on the Independence of the Judiciary provides that it ―is the duty of each Member State to provide adequate resources to enable the judiciary to properly perform its functions.‖ The Commonwealth Latimer House Principles also set out guidelines for member States on issues to preserve the independence of the judiciary that relate to court administration. 

While allegations of corruption within the judiciary (the magistracy) and the public sector as a whole remain a pressing issue – the establishment of the Fiji Independent Commission Against Corruption (FICAC) and creation of new criminal offences which deal with all issues of corruption, appear largely sufficient at this stage to address this issue. However, the adoption of the conduct standards recommended above should also have some impact on addressing these concerns. 

The issue of creating specialised courts has also been raised as one way of assisting the people of Fiji by giving particular and specialised attention to  particular types of legal cases.  There is already a specialised division of the courts to deal with family and juvenile matters, and the recent Employment Relations Promulgation establishes a separate division for employment matters. FICAC supports the creation of a corruption division of the High Court.  

In addition to the adoption of a new Constitution to put in place the basic framework for the operation of the rule of law, many more specific measures are needed to strengthen the law and justice sector. The people of Fiji not only need to know what the law is, they also need to be assured that they live in a society where the law is respected, honoured and obeyed by all; and where all citizens are treated equally by the courts and other legal and State institutions.  

To achieve this, measures will be implemented to strengthen the independence and accountability of the judiciary. This involves the adoption and enforcement of conduct standards for judges, magistrates and other judicial officers will be carried out in accordance with the Administration of Justice Decree 2009. To improve the efficiency of the courts in disposing of cases, recommendations by Beattie and also by Connors1 in his commission of inquiry report into the Magistracy will also be implemented.  

1 Justice John Connors, Commission of Inquiry Report into the Magistracy, 2008. 

2Assault Occasioning Actual Bodily Harm (AOABH); House Breaking Entering & Larceny (HBEL); Robbery with Violence (RWV); Unlawful Use of Motor Vehicle (UUOMV). 

3 In 1997, 22,149 crimes were recorded; whereas in 2007, 18,623 crimes were recorded. 

Fiji Police Force 

The Fiji Police Force is charged with the maintenance of law and order, the preservation of peace, the protection of life and property, the prevention and detection of crime and the enforcement of all laws and regulations with which it is directly charged.  Without effective law enforcement by the Police Force that combats and constrains criminal behaviour there is a risk of a drift towards an increasingly lawless society, increasingly fearful citizenry and a consequent reduction in economic and social opportunity. People in general have high hopes that these institutions together with the court systems will promote safe communities, greater social freedoms and more confidence in the economy.    

Public perception is always that the crime situation in Fiji appears to be worsening although in the last ten years there has been an overall drop in the number of crimes committed.3However, statistics show that in recent years the frequency of serious crimes has stayed the same and is relatively high. Violent crimes against women and children including rape and defilement and robberies with violence continue to be of particular concern.  

While the number of crimes committed has reduced, the detection rate needs much improvement.  The nature, scope and complexity of crime is also changing with transnational crimes such as drug trafficking and money laundering on the increase; as well as signs emerging of a growing sex trade.  Illegal immigrants have played a part in these trends. The unlikely but still real threat of terrorism is an ominous spectre that has changed the way that Police Forces world wide go about their job. 

Increased concern about crime has led to changes in lifestyles aimed at ensuring greater self-protection and efforts to make the family home and businesses more secure.  Private expenditure on security has increased markedly over the last ten years. However, as public surveys suggest, there is still room for raising public awareness on issues related to the avoidance of crime.   

The Police on their own cannot solve all the problems of law and order in society and partnerships at the national and local levels are essential to the well being of communities.  Initiatives such as the Neighbourhood Watch Schemes, Crime Prevention Consultative Committees, Crime Prevention Community Initiated Projects and Police and Citizens Youth Clubs are making helpful and lasting contributions to addressing crime prevention issues. At the school level, the crime prevention initiative in the form of Scholastic Program has been introduced in some secondary and primary schools. The large scale involvement of members of the public in community policing and neighbourhood watch zones throughout the country has added to the success of the Police in reducing crime.  

Nevertheless, the Police Force sees itself as under serious challenge. Crime remains at a high level, with detection rates on crime not improving. While there is recognition of the need to reorient the Force, its budget, human resources, the need for enhanced training and equipment deficiencies need to be addressed.  

A key challenge faced by the Police is the changing nature of criminal activities, including the threat of terrorism.  This threat is real and although it may not directly affect Fiji, it can influence criminal activities, especially at the borders.  The growing scope and complexity of criminal activities such as white collar crime has tested the competence of the law enforcement agencies.  

The growing scope and complexity of criminal activities such as white collar crime has tested the competence of the law enforcement agencies. The Fiji Police Force, in particular, with limited resources, lacks the capability to tackle serious crimes effectively. The pace of societal and technological changes presents a continually evolving set of challenges for the Police Force.   

The Force is currently undertaking major projects to reform and modernize the service. This includes organisational restructuring, setting up of the Ready Action Group, Border Police, and equipping of the Forensic Division. There are also ongoing efforts to address the composition of the Force through recruitment of Indo Fijians and women. These initiatives are aimed at improving the effectiveness of the Force.  The Force also needs to be fully equipped and resourced to rise completely to the challenge they face.   

To ensure that Fiji Police continues to meet new challenges, the Force needs to transform itself.  Transformation by way of changes in how it does business, in mind set, in culture and in attitude.  Changes in society cannot be ignored as they will continue to influence and determine how the Force does its business. 

For the medium term, focus will be directed towards improving law enforcement through the setting up of task forces to clean up serious and/or prevalent criminal behaviour; through using more advanced policing techniques; extending community policing across Fiji and allowing for greater community involvement in law enforcement.  In addition, a stronger focus will be placed on crime prevention at the national level by establishing a Crime Prevention Board.  As part of the transformation process for the FPF, leadership capacity and professionalism will also be developed and enhanced. 

Fiji Prisons and Correction Services 

TheFiji Prisons and Correction Services (FPCS) is responsible for the safe, secure and humane treatment of persons in custody by providing opportunities to correct offending behaviour, develop work and life skills, and to perform community service. Its two main functions are the provision of safe custody and humane treatment of inmates; and the provision of rehabilitation programmes to those in lawful custody. 

The FPCS is an important aspect of the justice system. Its existence institutionalizes the end process of our criminal justice system. It is deemed that justice is not carried out until a person who is convicted of any crime has fully served his/her sentence. A good prison system will not only serve its purpose as a penal or custodial institution, but more so, be a deterrent to the commitment of offences.  

The Prisons Service has 13 institutions nationwide and faces problems of low staff ratios per prisoner population (1:10 compared to the world standard of 1:4), capacity, budget problems and old unhygienic facilities.  Most prisoners are relatively young and belong to the 16 to 39 age group. . Recidivism continues to be a major problem, at 56% of all prisoners.  The prison population per 100,000 population for Fiji was 131 in 2005. Out of the 20 countries of the Oceania Region for which data is available, only 4 had a higher rate than Fiji.  

The Prisons Service does not have sufficient resources to cater for the increased number of prisoners entering the system - prisons are crowded; and the Prisons Service cannot deliver quality rehabilitation programs.  Crowding affects the ability of prison wardens to rehabilitate and focus on prisoners.  To address this issue, the FPCS has also started to encourage other forms of imprisonment in collaboration with other stakeholders like the Police, non government organizations, and the general community. 

An initiative undertaken by the Australia/Fiji Law & Justice Program (now suspended) was the development of a cross sector agency Community Based Corrections Framework. This effort was enhanced with the support of the current government and has been piloted in selected localities including Ba and Navua. About 120 prisoners are serving their sentences under the Community Work Act 1996 in selected locations. These offenders are supervised on a voluntary basis by retired civil servants and prominent citizens including chiefs and church leaders. 

The new Prisons and Corrections Act 2006 provides a new focus for the future development of the Service. It emphasises the need to shift the focus from the traditional philosophy of containment to corrections. The new legislation requires the adoption of new, innovative and effective programmes to ensure that the offenders change, do not re-offend nor return to prison.  

As part of this new philosophy, the Department has launched the Yellow Ribbon Project (YRP), which is essentially about acceptance, forgiveness and giving ex-offenders a second chance. It is about community action in assisting people coming out of prison to reintegrate successfully back into society. The aftercare aspects when offenders are released from prisons have been identified as the weak link in the rehabilitation process of offenders. The YRP is now an integral part of Prison Service and the FPCS will be working closely with key stakeholders on its implementation. 

A case management framework is also being piloted in prison, with the ultimate objective to carry out an assessment of prisoners based on social and psychological principles in order to better understand the prisoners and mete appropriate rehabilitation programme.    

Other Components of the Law and Justice Sector 

Many people living at village and settlement levels still do not have a good understanding of the law and access to justice and other legal services for ordinary citizens remains a concern.  Action is needed to further strengthen the awareness of basic legal rights such as the right to counsel and emphasising the right not to incriminate oneself and making the country‘s laws and other legal services more accessible for ordinary people. Improvements in these areas relate to completion of the revision of the country‘s laws, access to legal representation for the most vulnerable and strengthening the law reform process.  

To address the accountability of the legal profession, recent amendments were made to the Legal Practitioners Act to establish a Legal Services Commissioner to handle complaints against lawyers. Putting in place this new independent enforcement mechanism of conduct standards for lawyers is expected to resolve the many outstanding complaints against lawyers and enhance the accountability of the profession. The new independent disciplinary process for legal practitioners will be actively enforced to maintain their accountability. 

In addition, work will continue on extending the services of the Legal Aid Commission throughout the country. Formal administrative measures will also be adopted to allow for greater involvement from civil society and bodies like the Fiji Law Society to assist and complement the work of the Legal Aid Commission in terms of promoting public awareness of these basic legal rights. Law revision will be completed and easier access to written laws provided with long term strategies put in place to enhance the role of the Fiji Law Reform Commission. Other on-going strategies to improve access to justice in Fiji include ensuring all legal registries such as those administered by the Registrar of Titles, Registrar-General, Registrar of Companies and Public Trustee continue to make improvements in the provision of their services. This mainly involves capacity building to upgrade facilities to enhance efficiency. 

2.1.5The Accountability Framework  

The accountability framework comprises the institutions and processes that exist to ensure open and transparent Government. Without these processes there is no public sector accountability. This involves the operations of many state institutions namely, Parliament, through its committee system and other processes, and independent institutions like the Auditor-General, Fiji Human Rights Commission (FHRC) and the Fiji Independent Commission Against Corruption (FICAC). A key function for many of these institutions is to hold Government to account for its actions; a necessary step in maintaining public confidence in the system.  

The effectiveness of Government‘s internal processes to ensure enforcement of the public service code of conduct and compliance with financial rules and regulations is another key component of the accountability framework. It also requires commitment to allowing the public to access public information and independent enforcement of conduct standards for holders of high public office. A free and independent media and the work of non-government and civil society organisations are also a vital part of the accountability framework. 

Public perception is that there is little or no accountability for public officials, from holders of high public office to ordinary civil servants, who behave improperly. In the absence of accountability, people are unable to ensure that their Government acts wisely, lawfully and fairly in serving the national interest. Accountability issues are continually raised in the Annual Audit Reports of the Auditor-General on the public accounts of the State and Local Government bodies and by the media. Findings in reports of the Auditor-General regularly highlight non-compliance with public service rules and regulations relating to the poor collection of government revenue; abuse of procurement procedures; irregularities in project management; abuse of resources and facilities; poor cash management; employee misconduct; and inadequate record keeping.  

The absence of an effective legal framework that guarantees the public a right to access public information, enforces conduct standards for holders of high public office, and maintains the accountability of the media have all contributed to the weakness in the accountability framework. An analysis of investigations carried out by the FICAC shows that corruption occurs throughout the public sector at all levels and has become systemic in certain areas. 

Presently, the weakness of the accountability framework requires major capacity building, in terms of financial and human resources across the board to strengthen democratic and accountability institutions at a time when downsizing the operating costs of the public sector is a major reform priority. Another area of weakness is the non-performance of functions that require office holders in the accountability framework to be pro-active. There are functions throughout the accountability framework, whereby office holders are required to initiate action in pursuing matters to uphold the accountability of the public sector either through parliamentary scrutiny and the operation of its committee system to investigations being initiated by the Auditor-General. FICAC has been assigned general functions to identify areas of public administration that are susceptible to corruption and recommend measures that need to be taken to strengthen these areas. Institutional memory in terms of how many of these functions are to be carried out needs to be developed. 

An effective anti-corruption framework that complies with the United Nations Convention Against Corruption (UNCAC) is another area of focus. In 2005, Fiji ranked 57th out of 159 countries in Transparency International‘s Corruption Perception Index (CPI) and it scored below the borderline figure for distinguishing countries that do and do not have a serious problem with corruption.4 Since 2006, Fiji has not been listed on the CPI making it difficult to gauge the impact of significant efforts in recent years such as ratification of UNCAC and the establishment of FICAC, which has led to an increase in arrests and prosecutions for corruption related offences. However, when considering the Worldwide Governance Index aggregate indicator on ―control of corruption‖, our percentile rank has started to improve slightly; from 35.4 in 2005 to 46.4 in 2008, however it is still below the 50th percentile rank. 

4 TI considers a score of 5.0 to be the borderline figure distinguishing countries that do and do not have a serious problem with corruption. Fiji‘s score was 4.0. 

The number of complaints received by FICAC relating to maladministration indicates a high level of dissatisfaction with service delivery throughout the public sector. In 2008, 2,367 complaints were received, a slight increase from the previous year. A little over half of these complaints were corruption related with the majority relating to abuse of office, forgery of documents with intent to defraud and extortion and fraud by public officers. Other complaints received related to delays in the processing of applications and service delivery complaints, which were then referred to relevant authorities. 

A report by a UNCAC Observer Team on the country‘s progress towards meeting its obligations under the convention will provide the basis for measures that need to be taken to fully develop the country‘s anti-corruption framework. In the meantime efforts to strengthen the capacity of FICAC to enable the effective performance of its functions will continue. 

Generally, the accountability framework needs to be strengthened to address the concerns highlighted above.  This includes capacity strengthening of the country‘s democratic and accountability institutions to entrench a culture of sustainable democracy and good and just governance. This can only be achieved when systems designed to prevent abuse of office, the misuse of public resources and maladministration across the public sector are working efficiently and effectively. Reforms are also necessary for ending the coup culture noting Principle 9 of the 14 Key Principles, which requires the adoption of measures to: ―strengthen the accountability and transparency of State institutions, the private sector and civil society organisations in particular to enhance their adherence to the rule of law.‖ Reforms to the accountability framework will focus on: 

a.entrenching a culture of democratic good governance through education and broadcast programmes on the principles of democracy and good governance; 

b.strengthening the capacity of democratic and accountability institutions to ensure effective performance of their accountability functions; 

c.the adoption of Freedom of Information and Code of Conduct laws to provide for open, transparent and accountable Government; and 

d.media reforms to enhance industry regulation, protect media freedoms and maintain the accountability of media organisations and journalists. 

2.1.6Public Sector Reform  

The Public Sector in Fiji is in a serious predicament.  Its performance, professionalism, productivity, accountability, cost and commitment have been heavily criticised in recent years.  While many public servants try hard to do their jobs as honestly and as effectively as possible, the impact of four coups, weak leadership, the politicisation of the service itself, a massive exodus abroad of skills, competencies and institutional memory, and various other constraints have taken their toll. 

Pressures for Public Sector Reform (PSR) are emanating from the economic and fiscal performance of the nation, the need to build a service culture that is committed to provide effective and efficient service to the public, the need to modernise work systems, external pressures from international development partners and donor funding communities, and a vocal private sector and civil society.  

The core paradigm for reforms has been that the quality of governance affects people‘s lives.  In other words, where the Public Sector through its institutional structure offers inefficient, ineffective and poor quality programmes, support for national development is likely to be constrained, possibly compromised or even undermined. The World Bank concluded recently that PSR has ‗great potential to reduce poverty‘ and that ‗good government institutions are associated with higher income growth, national wealth, and social achievements‘.  The current consensus is thus that PSR matters a great deal for national development, and in at least two ways: first, it will lead to better delivery of the basic public services that affect the living standards of the poor; and second, it will create a climate conducive to private sector development. 

Civil Service Reform 

The Civil Service Reform (CSR) Programme commenced in 1994 and was aimed at improving efficiency, productivity, accountability and transparency in the civil service.  The three key components of the CSR program are in the areas of: (i) Human Resources Management; (ii) Productivity Management; and (iii) Organizational Management. 

Major milestones achieved include the restructuring of the Public Service Commission (PSC) in 1997 and 1998; the enactment of the Public Service Act and subsidiary regulations; the development of the Senior Executive Services (SES) Programme; the contracting of Chief Executive Officers (which was later terminated in early 2007); the introduction of three-year industrial relations agreements; the development of the Performance Management System; and the development and implementation of the Service Excellence Awards Framework. 

Current reform initiatives being undertaken include the review of the government machinery, restructuring/reorganization of government agencies, right sizing, reduction in the retirement age, development of a Human Resource Information System, review and implementation of the Service Excellence Award Framework and business process re-engineering.  Other initiatives include the review of disciplinary procedures to speed up the process and the proposed setting up of a Government Information and Referral Centre to become the focal point for information and referral to all other Ministries/Departments.  

The main priorities with regards to CSR are restructuring, modernising human resource management and remuneration, rebuilding the capacity of the Public Service, and E-government.  

The restructure of the Public Service, which necessitates the functional reviews of all agencies, is vital to remove duplication and enable human resources and structures to be aligned to serving the public better. Leadership development will also be enhanced to rebuild a committed, visionary, highly competent and more accountable leadership group.   Public service leaders will need to play an important role in efforts to rebuild professionalism within the service.  Contracting-out opportunities will be further explored as a means of cutting costs.  Remuneration systems also need to be modernized, based on demonstrated productivity increases, to reward competent and committed individuals, while at the same time penalizing non-performers.  Contract employment arrangements for all members of the SES would be pursued to be completed by the end of 2009.   

The capacity of the Public Service needs to be rebuilt to a new service-orientated, more accountable and ethical culture in the Public Service.  Focus should be placed on human resource planning to meet the Public Service‘s future needs and succession planning by selecting, managing and fast-tracking the careers of promising graduates and middle-level staff.  Selected e-government opportunities will continue to be identified and pursued to improve service delivery and internal management in Government Ministries.   

Public Enterprise Reform 

The Public Enterprise Reform (PER) policy was first introduced in 1993 as part of an economic reform package. The reform program focused on ensuring that public enterprises provide the maximum benefit to taxpayers through improved management of the enterprises. It was hoped that many of the loss-making enterprises when re-organized and commercially focused would be in a position to provide the Government with a higher return on public investment.  

The goals of the PER program are to ensure public entities: (i) become more efficient, productive, accountable and better organized; (ii) provide optimum return on investment; and (iii) to establish an appropriate legal framework for each re-organized enterprise.  

The Public Enterprise Act (1996) provides a comprehensive legal framework for implementing the reform program. Its coverage extends to all Public Sector commercial activities, including those of fully owned companies, statutory authorities and government departments.  

There are currently 11 Government Commercial Companies GCCs) (including a subsidiary) and 4 Commercial Statutory Authorities (CSAs) under the public enterprises portfolio. GCCs have the sole objective of being profitable while the CSAs in addition to having commercial objectives also have non commercial objectives which can be regulatory or technical in nature, under the line Ministry legislations.  In addition, the Ministry also monitors 2 majority owned GCCs, namely the Pacific Fishing Company Limited (PAFCO) and Fiji Hardwood Corporation Limited. 

Financial performance indicators show that State owned enterprises have performed quite poorly in the last ten years. Returns on Shareholder‘s Funds of existing public enterprises have continued to be about 3% in aggregate. Few public enterprises are able to finance their investments from internally generated funds and the modest target of a 10% return on assets is rarely achieved, overall returns are some 3% and well below the opportunity cost of capital. The government has capital equivalent to 30% of GDP tied up in largely unprofitable public enterprises. In 10 years they have returned only a total of $14m to government through dividends.    

In part, the variability in performance can be attributed to the political agenda of past governments who had varied perceptions of reforms that led to several ―start stop approaches‖ in the reform process. Other factors include the provision of social service obligations which are not fully paid for, absence of commercial oriented culture and attitudes in the reorganised entities and management not having full commercial autonomy in running the operations.    Good corporate governance and management requires the separation and clarification of the powers and responsibilities of ownership, governance and management in public enterprises.  Political involvement in the running of enterprises should be limited to priority policy directions that are required to be published.   

Efforts will be made to reform existing Public Enterprises to ensure their improved performance in readiness for privatization. Public Enterprises involved in food production will be supported to improve our national food security. 

The reform process under the Public Enterprises Act is in itself a lengthy procedure resulting in planned reform timelines having had to be revised regularly. The Department of Public Enterprise has revised the procedures with the intention to speed up the process so that planned returns are realised early. 

Apart from the 17 entities under the PE portfolio, work is in progress to reorganise, corporatise and privatise a host of other entities. A set of priorities have been established for the accelerated programme with an indicative work plan up to 2011 which includes: 

re-organisation of: (i) Department of Quarantine; (ii) Ministry of Agriculture; (iii) Fiji Islands Maritime Safety Authority; (iv) Management of Government Quarters; (v) Fiji Film and TV Unit; (vi) Coconut Industry Development Authority;  

corporatisation of: (i) Department of Water and Sewerage; (ii) Mechanical Engineering and Electrical Sections of the Public Works Department; (iii) Department of Government Supplies; (iv) Department of National Roads; (v) Trade and Manufacturing Accounts (TMA); and 

divestment/privatisation of: (i) Food Processors Ltd; (ii) Fiji Tannery; (iii) Ports Terminal Ltd; (iv) Fiji Hardwoods Corporation Ltd; (v) Batiri; (vi) Fiji Ships and Heavy Industries Ltd; (vii) Rewa Rice Ltd; (viii) Government Printing. 

This can be considered an ambitious, stretch target which recognises the scale of the challenge. But it is achievable. And the greater the extent to which it is achieved the greater the benefits which will be gained for Government and for national economic development. 

The Public Private Partnerships (PPP) Act 2006 establishes a range of legal options for ownership and operation of entities which fall between full public or private ownership. PPPs are arrangements which, irrespective of the corporate or legal form, bring together State assets or expertise and private sector assets or expertise to provide infrastructure or services at competitive prices.  It has the potential to increase the overall efficiency of public infrastructure and service provision whilst reducing demands on Government resources, thus allowing it to concentrate public funds on provision of those goods and services which cannot generate adequate financial returns but do create the social and economic outcomes which Government seeks. 

Financial Management Reform 

The Financial Management Reform (FMR) programme which re-commenced in 2001 is geared towards enabling Government to better implement its policies, and deliver public goods and services more efficiently and effectively.  The reforms provide the institutional framework for more accountability and transparency, and better management in the use of public resources.  It is intended to strengthen and modernize the management of government finances to: (i) better align government policy priorities with budget resources; (ii) adopt a performance focus; (iii) provide more effective control over public spending; and (iv) strengthening accountability and transparency in financial management.  

The FMR has four key components; namely the (1) Financial Legislation and FMR Policies; (2) the development and implementation of the Financial Management Information System (FMIS); (3) the introduction of Performance Budgeting; and (4) Change Management. 

The new Financial Management Act and its associated policies and regulations have been in place since January 2004. A progressive approach is being adopted in devolving financial authorities and incentives to Permanent Secretaries, in line with their ability to manage their financial allocations. The automated processes brought about through the FMIS have brought about changes to accounting procedures and processes, resulting in the review of the Finance Instructions.   

The FMIS implementation was completed in October 2007 with all ministries and departments now ―live‖ with the FMIS.  Functional and technical support continues to be provided to all agencies to ensure that all FMIS processes are fully complied with. Ongoing FMIS training is provided for all users, particularly the special user groups such as accounting heads and super-users which focuses on their different areas of responsibilities. The FMIS post implementation activities will mainly focus on agencies retraining, system support, monitoring, development of further system reports and capacity building.  

Ongoing training and capacity building program continues across government. In addition, Performance Budgeting is being gradually implemented across government, with agencies reporting on the implementation results of one or two budget funded programmes. Over the years, this reporting will gradually extend to cover more programmes as expertise and skills in the area is built up. 

The implementation of the new FMIS provides opportunities now to ensure better reporting and monitoring of government expenditure and to enhance accurate expenditure management; to improve financial management capacity across all Ministries and agencies; to introduce further improvements to performance measurement of the outputs of each Ministry or agency; and to ensure greater involvement in, and accountability for, financial management by senior managers.  More action is needed to better link the budget, financial management, corporate planning and planning reforms to give effect to the Government‘s priorities under the Peoples Charter; to achieve the Government‘s policy objectives; to support the overall Public Sector Reform; and to further improve on the outputs to be delivered by each Government Ministry or agency.  

Reform Challenges 

The PSR Programme is aimed at ultimately improving service delivery and the efficiency and effectiveness of the public service.  However, challenges abound.  

The public sector needs a new vision to challenge and inspire its performance. The new vision for rebuilding Fiji‘s Public Sector for the 21st Century should be enunciated in the twelve points highlighted in the SNE, which amongst other things promotes a new workplace culture, a commitment to delivering excellent service to the public, making effective and efficient use of resources.  It also emphasizes adopting a leadership style that is inclusive, visionary, professional and empowering. 

The management of the reform process needs to be improved and strengthened. Proper coordination is required so that reform efforts are balanced and appropriately sequenced.  A related concern is that public service unions seem to have developed a lasting antagonistic relationship over PSR issues and have quite effectively undermined much needed changes in the Public Sector from time to time.   

Another issue that needs to be addressed relates to the unsatisfactory manner in which the relationship between the Government and the Public Sector has developed.  Some of this role confusion has happened because of lack of clarity and political involvement which undermines morale and professionalism. It is essential that the independence and professionalism of the Public Sector be restored.  A clear demarcation between political roles and Public Sector roles is needed.  This demarcation requires that the Minister‘s policy-making and strategic management roles are defined by law, with the Public Sector responsible for delivering outputs and outcomes in accordance with Government priorities.  Legal provision should also be made for removal of political involvement in day-to-day management of the Public Sector, and a prohibition placed on interference in merit based selection.   

2.1.7Indigenous Institutions 

The Fijian Administration is charged under the Fijian Affairs Act to be responsible for the good governance and well being of the indigenous people.  Good governance in relation to indigenous Fijian administration is concerned with the application of principles such as accountability, rule of law, transparency, equity, consensus orientation, participation, effectiveness and efficiency and responsiveness. 

A number of institutions were established to support the advancement of the interests of indigenous Fijians. Its structure and systems were been designed for this purpose.  However, questions have been raised about whether they are adequate to meet the concerns, needs and aspirations of all indigenous Fijians, including those residing in urban areas and who have adopted an urban lifestyle.  

These institutions include: the (i) Bose Levu Vakaturaga (BLV) (Great Council of Chiefs); (ii) Fijian Affairs Board (FAB); (iii) Native Land Trust Board; (iv) Ministry of Indigenous Affairs; (v) Ministry of Provincial Development; (vi) Provincial Councils; and (vii) business development initiatives such as Yasana Holdings, Vanua Development Corporation, the Fijian Trust Fund and Fijian Holdings Limited. 

Numerous reviews of the Fijian Administration were commissioned by past governments to examine ways in which the performance of these institutions can be improved. One such review included the PricewaterhouseCoopers Review in 2000. The recommendations of this review were not accepted by the Great Council of Chiefs and as such were not implemented by Government. 

A study commissioned by the FAB in 2005 made substantial recommendations on the institutional strengthening of the Board and the Provincial Councils. These recommendations were endorsed by Government in  2005 but implementation was staggered because of the prohibitive cost of the exercise.  Questions were also raised on the effectiveness of the proposed recommendations to address the concerns, needs and aspirations of all indigenous Fijians.   

The Interim Government commissioned the Independent Investigation of Institutions Fijian (IIIF) in early 2007 to review the roles and to recommend reforms in the Native Land Trust Board, Fijian Affairs Board, Provincial Councils, and business development initiatives such as Yasana Holdings. The report by the IIIF has been adopted by the Fijian Affairs Board. The Board has further examined the report to determine recommendations that are to be implemented, delayed or eliminated.  

In addition, the Interim Government appointed a six member taskforce in 2008 to review the role of the Great Council of Chiefs (GCC) in its traditional and national role. The review made recommendations to changes to the membership structure of the Council and the direction it should take in its traditional and national roles.  This was facilitated through changes to appropriate legislations.  

A review of the 2005 restructure proposals for the FAB and the Provincial Councils was also undertaken in 2008 and there are new recommendations adopted from the report for implementation. Funding constraints has delayed the implementation of new proposals. 

The Ministry of Indigenous Affairs has also put in place a 3 year phased implementation plan for its re-organization which has been approved and endorsed by the Public Service Commission. 

Challenges/Constraints 

Most reviews undertaken on Indigenous Institutions suggest significant problems of underperformance. In a number of institutions there has been low observance of financial protocols and low participation by stakeholders. Accountability and transparency have been noticeably lacking across institutions. At Provincial Council level, the style of operation is top down rather than truly participative. Tikinas have lacked autonomy in decision-making at grassroot level.  The Ministry of Indigenous Affairs recognizes the need for change but is caught between two mindsets that it must deal with in the indigenous population.  Due to the lack of practice in good governance, in particular transparency and accountability, as well as a traditional culture of silence, it is not clear what impact some of the indigenous Fijian institutions are having on the indigenous population.  

The benefits received from these institutions are at times perceived to be unfairly or unevenly distributed.  There are many who express suspicion that in the past, in some indigenous Fijian institutions, large amounts of money have been lost, either through mismanagement, corruption, waste or channelling to a small number of elite beneficiaries. The suspicions are further fuelled by the lack of proper audited accounts - in some cases for more than 10 years. While some indigenous owned companies such as Fijian Holdings Ltd and Yasana Holdings Ltd are prosperous, questions remain as to the degree to which this wealth trickles down to ordinary Fijians.   

The indigenous Fijian Administration‘s operating principles are drawn from colonial times. Then the institutions were concerned with regulation and control of natives in a society that was used to taking direction rather than making decisions that involved business judgments. This has far too often created a state of learned powerlessness and dependency rather than assisting social and economic advancement. This operating paradigm has also created a lack of initiative and drive.   

Leadership values and capacity are also acknowledged to be part of the problem.  Leadership values have tended to favour supporting self-interest and the interests of elites rather than advancing the common interests of local communities.  They have also favoured autocracy over more participative decision-making.  Some of the other traditional values do not sit well with modern market values. The competitive and work ethics of capitalism also challenge those with laid back attitudes to life.  There is also a lack of capacity and understanding of the values of business cultures.  Arising from such changes in capacity and culture will come business opportunities. 

The dual system of indigenous Fijian Administration is no longer justified.  The creation of a more integrated organisational structure for indigenous Fijian Administration is warranted rather than continuing with dual bodies, with integrated roles and functions to be identified in relation to advancing the well-being of the indigenous Fijian people and their good governance. 

Strategic Priorities 

The adoption of an integrated organizational structure would enable the combining of the best of traditional culture with the modern values needed to promote economic and social advancement and good governance. The new institutional framework should be democratic, inclusive, participative, and entrepreneurial in outlook and dedicated to the practice of good governance.  

The operating paradigm within which these institutions operate needs to change so that it is more concerned with building local capacity, promoting empowerment and encouraging at least the more enterprising indigenous people to start taking steps towards a more entrepreneurial culture.  

Giving greater attention to good governance issues should be a top priority in respect of all institutions that are part of the indigenous Fijian administration.  This should include amongst other issues; the adherence to a framework for good corporate governance, including a code of conduct and customised guidelines for Provincial Councils; strategic planning involving the setting of published performance targets; participative dialogue processes with stakeholders; adoption of more participative and responsive business practices involving regular consultation with clients on their expectations and on what the institutions have in fact achieved; proper auditing of accounts; proper management of, and accounting for, expenditure; and appointment of staff on merit with a focus given to development of sound human resource management practices. 

Some role changes are also needed which includes developing a new Vision and related policy development; leadership in winning the support of the indigenous people for the new Vision; operationalising the new Vision, including through a good governance framework; capacity building and the development of entrepreneurial practices.  

2.1.8Leadership 

Good leadership and good governance are inter-related; good governance cannot be achieved without good leadership.  Addressing the issue of leadership is therefore of great importance to the future of the country.  

Leadership does not only occur at the State or national level.  While Fiji needs good leaders at national level to guide and steer, leadership also occurs in the villages, in towns and cities, in the family, in the private sector, civil society and in churches. The lives of ordinary people are most affected by leadership at this level.  Effective leadership is therefore needed in a variety of contexts.  

Various types of leadership interact in Fiji‘s society.  On one hand, there are those who lead by virtue of their birthright: while on the other hand, there are democratically-elected leaders who hold office by virtue of election by popular vote.  Both sources of leadership are required, although the basis of their legitimacy differs, as does the scope of their responsibilities. 

At all levels, the type of leadership in Fiji is seen as a contributing factor to many of the country‘s deep rooted problems.  Leadership at the national level has always been a subject of debate even during periods of stable Government.  One point of view is that the style of political leadership in Fiji has, and continues to be, dominated by ethnic issues solely focused on protecting the interests of one‘s own ethnic community. This style of leadership has contributed to a failure to act in the best interests of the whole nation. 

The country has experienced four coups in a period of 20 years, which resulted in a decline in economic performance.  Significant human capital is leaving the country, and much land remains under-utilised.  The country‘s multi-racial population has maintained a certain association for 150 years, but it is one in which neither side feels completely understood or valued by the other, and few leaders at national level have attempted to bring the races together in more than a perfunctory, politically expedient manner.  Most educational services, professional associations, and even sporting bodies, are formed along broadly racial lines.  Fiji is a country divided ethnically, religiously, politically, educationally, socially, and economically. 

The failure of transactional leadership in Fiji has also meant that successive regimes have not addressed the fact that more than 60 percent of Fiji‘s people, of whatever race, are living close to, or below the poverty line.  This is a major concern because there are enough resources in the country for everyone.  However, in governance terms, there is a problem with resource allocation.  Fiji has large human resources and physical resources, yet leaders have failed to use them effectively.   

Leaders also face a number of contradictions between the changing expectations of their responding to the demands of urbanisation and commerce and to the pressures to transform Fiji into a modern state.  These pressures, which include issues like globalisation and modernisation, have conflicted with a desire to maintain important aspects of traditional culture.   

Fiji needs leaders who demonstrate the following leadership qualities: being trustworthy, just, honest, accountable, selfless, competent, open and transparent, and unite groups and communities. They must be better educated and aware of the effect of globalisation and modernisation.  A leader must also be visionary as they set the direction taken by a country, community, organisation or group. Leaders must also have the moral courage to make tough decisions in the national interest.  

The need for Fiji‘s leaders to display selflessness is a major challenge – that is, to lead for the common good and not through self-interest.  While the issue cannot be readily resolved there are measures proposed to ensure that those who come forward to serve as leaders are not coming forward for purely personal motives and gains.   

More direct action is needed to ensure Fiji‘s leaders display those qualities.  The ideal is to have leadership that values sustainable democracy, accountability, and other principles of good governance; that society as a whole appreciates and has shared understanding of what is good leadership and expects its adoption by those who enter public life and assume public leadership responsibilities.  

Generally, there is a need for clear governance processes, and effective governance institutions, which involve both the State and its citizens.  Greater importance must be placed on having a governance system based on finding selfless leaders.  The public has a role to play too, through being more vocal about their expectations, and their views on how leaders are performing. 

It is necessary to adopt leadership patterns and behaviours more conducive to reaching the country‘s shared goals.  Elements of this include civic education and improved performance appraisal systems for public leaders, systems that are able to reward purposeful leadership and inhibit negative practices through adoption of more effective codes and laws.  

Leaders in Fiji need to employ a more transformational style of leadership that emphasises inclusiveness and seeks improvements in the economic and social circumstances of all citizens.  This type of leadership is the best way forward for Fiji.  Acknowledging the role of different types of leaders in Fiji, including women, youth, politicians, religious and traditional leaders, and the need for increased dialogue, is also relevant. 

Specific actions to be taken to encourage good and effective leadership include:  

(i)the enactment of a Code of Conduct with appropriate enforcement measures, which also covers local government office holders; 

(ii)the development of a new leadership model more suited to Fiji‘s emerging development ethos;  

(iii)leadership training and education at all levels; and 

(iv)at the national level, putting in place greater incentives to attract capable leaders. 

 2.2Policy Objectives, Strategies and Key Performance Indicators 

2.2.1Electoral & Ancillary Reforms 

2.2.2National Security  

2.2.3Law and Justice  

2.2.4Enhancing the Accountability Framework 

2.2.5Public Sector Reform 

2.2.6Indigenous Institutions 

2.2.7Leadership  

CHAPTER 3 

Chapter 3Economic Development 

3.1Macroeconomic Performance  

3.1.1International Economy 

The world economy performed relatively well between 2001 and 2007 with exceptional performance from emerging markets such as Russia, China and India.  In 2008, a number of challenges emerged for the global economy as it started slowing down.  The world economy fell into a recession in 2009 as problems from the United States sub-prime mortgage market spilled into other credit markets.  At the same time prices of food and oil surged adding to inflationary pressures worldwide creating severe hardships for many low-income countries. World growth since 2001 and forecasts by IMF until 2011 are reflected in Figure 3.1. 

Global growth prospects continue to remain weak, despite wide range of policy actions taken by governments.  Our major trading partner economies, except China and India are expected to also contract in 2009 as a result of the financial crisis with global contraction forecasted at 1.4 percent. In 2010 economies are expected to record marginal growth with continued recovery thereafter.  Prices have somewhat declined as a result of global slowdown being experienced.  Commodity prices remain weak; however, crude oil prices are making gains as demand recovers. 

3.1.2Regional Economy 

The GDP performance of major island economies has generally been positive since 2001.  Fiji‘s economic performance between 2001 and 2006 was relatively stable although it performed only better than Vanuatu and Papua New Guinea.  The Solomon Islands, in particular, has reported exceptional growth since 2003 and is expected to manage the effects of the global downturn with relative ease.  

The downturn in regional economies from 2009 onwards (Figure 3.2) resulting from the global financial and economic crisis is likely to be more severe than anticipated as demand for Pacific export commodities, tourism arrivals and remittances decline. 

The recessionary effects in island economies are more pronounced given the slowdown in Australia and New Zealand.  These economies are the largest sources of visitors for Pacific tourism.  The actual and forecast economic growth rates of Australia and New Zealand for the period 2001 to 2011 are shown in Figure 3.3. 

The risks of slowdown in tourism and lower than expected prices of commodities for the island economies are expected to remain in the medium term. 

3.1.3Domestic Economy 

Fiji‘s economic growth performance has remained relatively weak since 2001 averaging only 1.7 percent growth until 2008 (Figure 3.4).  The sluggish growth in recent years has largely been a result of declining contributions from sugar and garment industries.  These declining contributions have not been offset by modest growth in other sectors such as tourism, bottling water and biscuit manufacturing in recent years.  Fiji economy has continued to contract since 2007 with a 2.5 percent contraction expected in 2009.  The economy is expected to recover from 2010.   

Historically, Fiji enjoyed preferential market access to the EU for sugar and the US for garments.  However, with progressive decline and elimination of these preferences, the performances of sugar and garment industries have declined resulting in lower GDP growth rates.    

Since 1990 Fiji has looked outward for an export led growth strategy; however, economic growth rates have on average been lower than the preceding period.  Since 2007, government has made efforts to implement institutional reforms to facilitate sustained economic growth.  Setbacks to such efforts have been a result of natural disasters and global economic slowdown.  The socio-economic progress of the nation is dependent on how the domestic and external challenges are managed in partnership with the private sector.  

Government‘s focus in economic development will encompass:  

1.Enhancing development cooperation throughout the government machinery; 

2.Emphasizing rural development to prevent excessive rural-urban shift of the workforce; 

3.Maintaining macroeconomic stability; 

4.Implementing the National Export Strategy; 

5.Supporting the agricultural sector; 

6.Reforming the sugar industry; 

7.Developing and strengthening the Financial Sector;  

8.Facilitating domestic investment; 

9.Encouraging foreign investment; and 

10.Making available unused but productive land of all classes while ensuring that returns to landowners are market based. 

3.1.4Private Consumption 

Private consumption has been steadily increasing since 2001.  Figure 3.5 shows the level of private consumption for the period 2001-2011.  The estimates, reported for 2006-2011 period have been based on actual and forecasted VAT collections.   

There is concerted effort from government to encourage consumption of locally grown and manufactured products to provide development opportunities for local farmers and industries.  The recent devaluation of the Fiji dollar with a view to discourage imports is also expected to raise consumption of domestically grown and manufactured products. 

3.1.5Inflation 

Inflation has been relatively stable apart from fuel price related increases in 2003 and compounded food and fuel price increase in 2008 (See Figure 3.6).  The Reserve Bank of Fiji through its prudent monetary policy measures continues to maintain inflation at low levels for pressure emanating from the domestic front.  Low trading partner inflation as well as softer international commodity prices has also helped in keeping Fiji‘s overall inflation low.  The global economic slowdown in late 2008 and 2009 has led to fall in prices in general.  In 2009, the May inflation rate was at 0.8 percent.    The rate rose to 6.3 percent in October, reflecting the effect of the 20 percent devaluation of the Fiji dollar.  In the coming months, prices are expected to rise and the year end inflation rate is projeved at 9.5 percent before moderating to 2.0 percent at the end of 2010. 

3.1.6Investment 

Capital accumulation through the investment process is a vital ingredient for economic growth. In the period 2001 to 2005 total investment averaged over 18 percent of GDP (see Figure 3.7). This increasing trend is likely to continue with recent increases in investments by Government and public enterprises such as the Fiji Electricity Authority and the Housing Authority. Public sector investments of this nature are crucial for the proper functioning of the market system to supply social and economic infrastructure to facilitate and implement private investment plans.  

The Government‘s capital expenditure is expected to be in excess of $300m from 2009 onwards which will provide further impetus for growth and development. Private sector investment, which has greater impacts on job creation and growth than public sector investment increased steadily from 2001 to 2005. Greater infrastructural support from Government and restructuring of the public sector, which essentially transfers assets and business opportunities to private sector, will also induce higher levels of private investment.  

Private investment levels are functions of savings and in recent years real interest rates on savings have been negative.  Savings levels are expected to increase with recent monetary policy requirement that interest rate spreads be reduced to 4%.  Should inflation remain low positive real interest rates would encourage greater savings behavior. 

3.1.7Interest Rates  

Interest rate spreads have historically been more than four percent in our domestic market while trends from trading partner economies indicate that banks generally have spreads of 2 percent or even less.  In only 2006 did interest rate spreads reduce significantly but increased again thereafter.  In April 2009,  the RBF took measures to control the lending rates of banks and other financial institutions to assist the business sector have a more conducive and stable interest rate environment. The weighted average interest rates of the banks are to be at their December 2008 level by the end of July 2009. The interest rate spread is to be four percent by the end of 2009.  Liquidity in the financial system reached critical levels in late March 2009; however, measures taken thereafter led to improvements to sustainable levels.  

Although interest rate spreads have been regulated to be no more than four percent before the end of 2009, the regulated spread is still much higher than international trends.  Given the fallout in the global financial market it has become apparent that earlier citations by commercial banks that Fiji represented a risky financial market are irrelevant.  All bank lending are backed up with sufficient collateral and the riskiness depends on the banks own lending procedures. 

Apart from interest rates, the banks also need to establish Local Advisory Boards – who will advise the banks on matters of national interest. Banks are also expected to have a complaints process in place which will be monitored by the Reserve Bank. All increases in fees and charges will need to be fully justified. Banks also need to establish microfinance units in their branches. The banks and financial institutions‘ operations are expected to align to national objectives and in the current environment to assist in the recovery process. 

3.1.8Government Revenue and Expenditure 

Government revenue has been steadily increasing since 2001, in line with economic activity and revenue policies.  However, significant revenue losses were incurred as a result of concessions granted by government, generally to large businesses.  Concessions and corporate taxes are being reviewed to ensure equity among all enterprises operating in Fiji.  This will improve compliance and reduce procedures and costs associated with the establishment, application and assessment of concessions.    Figure 3.9, shows the increases in government revenue against actual and budget expenditure mix.  There is however, a slowdown noted since 2007 as a result of reduced economic activity. 

There has been a significant change to government expenditure composition in the last few years.  There is marked slowdown in operating expenditure over the 2007-2009 period with further reductions anticipated in future.  This is offset by a greater emphasis on capital construction, particularly infrastructural development.  Although 2010-2011 capital budgets are yet to be finalized, it is expected to be similar, if not more, in value to the 2009 capital budget as the importance to increase the capital base for sustainable economic growth is now being realized.  The aging infrastructure has strong cost implications on the forecast budget surpluses of 2010 and 2011. 

3.1.9Debt Position  

Between 2001 and 2006 government debt as a percent of GDP rose by 4.6 percentage points with nominal value increase of $1.21 billion.  This represents an annual increase in debt stock by $200 million.  Debt as a percentage of GDP declined over 2007-2008.  Further borrowings are intended in 2009 and beyond to complete the government‘s intended infrastructure development program.  Government borrowings will only be targeted at investment projects so that developments are able to contribute to sustained economic growth upon completion.  The international borrowing commitments are expected to increase as a result of our devalued currency but the increases will be sustained through effective financial management. 

3.1.10Trade 

Domestic exports have been declining for most years since 2001.  Further decline is expected in 2009 with some recovery in the following years as a result of the devaluation of the Fiji dollar.  The decline in exports is largely underpinned by reduced sugar and garment production.  Sugar production is affected by inherent industry problems compounded with declining preferential prices from the EU.  Garment production, on the other hand, has contracted as a result of declining preferences under SPARTECA arrangement and the inability of our domestic producers to compete with Asian exporters, such as China.   

The depressed global conditions have translated into reduced demand for our ground water, fish and mahogany.  Significant efforts would be required in the implementation of the National Export Strategy to induce growth in domestic exports. 

Imports have been rising continuously except in 2007, which coincided with significant economic decline.  The increased importation has been attributed to growing demand from the tourism industry as well as rising food and fuel prices. 

Our exports have been around $1 billion; however, imports in recent years have exceeded $3 billion implying trade deficits in excess of $2 billion (see Figure 3.11).  It is envisaged that the devaluation of the Fiji dollar will result in a shift of demand from imports to local produce and manufactured goods. 

3.1.11Foreign Reserves and the Exchange Rate 

Foreign reserves are necessary for Fiji‘s transactions with the rest of the world.  The value of foreign reserves is a net result of foreign demand for our products and domestic demand for imported products.  Exchange rates are established accordingly taking into account our ability to accept all offers of our currency at the set rate.  Except for 2003-2004 and 2007, reserve levels have been declining on an annual basis since 2001. The growing trend in imports is causing depletion in our reserve levels.  Devaluation of 20 percent, undertaken in April 2009, resulted in improvements in reserve levels. Foreign reserves prior to devaluation were sufficient to cover only 1.3 months of imports.  As a result of adjustments in the value of our currency, import levels in the following months declined as higher prices translated into the domestic market and export levels will improve as a result of improved competitiveness of our domestic exports.  

The foreign reserves were at $1030 million at the end of October 2009. Since the devaluation in mid April devaluation, the trend has been rising steadily.  

The Fiji dollar is pegged to a basket of currencies (Australian dollar, New Zealand dollar, US Dollar, Japanese Yen and Euro). The weights of the basket are based on Fiji‘s exposure to trade and tourism with these countries. The Nominal Effective Exchange Rate (NEER) index has remained fairly stable since 2001 but indicating relative appreciation in value of currency until 2007.  The April 2009 index indicates a post devaluation adjustment to the 2008 indices.  The decline in indices is not as substantial as the percentage devaluation as a result of currency appreciation in the early months of the year. 

3.2Sectoral Developments  

3.2.1Macroeconomic Management 

Macro-economic management in the short term is focused on achieving financial stability and securing government finances. Key macroeconomic indicators are discussed in Section 3.1.    

The major challenges for the medium term are to maintain prudent monetary and fiscal management in order to protect exchange reserves, continue with low inflation, and ensure sustainable fiscal deficit and debt levels. The medium-term approach by Government recognizes the importance of consolidating fiscal policy, increasing export earnings and minimizing imports to reduce the widening trade deficit.   

3.2.2Tourism 

Tourism in Fiji is a myriad of partnerships between a diverse range of private sector businesses, the communities and government. It has grown steadily over the past few years, it has recovered from a significant decline following the 2000 coup with growth in visitor numbers and economic contribution and strong investment in infrastructure.  

However, the tourism industry has had to face a number of challenges since 2006 to remain globally competitive. These include the advent of the Hotel Turnover Tax in 2006, loss of price competitiveness, global financial crisis and adverse publicity in the major source markets. 

Against this backdrop, the tourism sector recorded the highest number of visitor arrivals of 585,031 visitors in 2008, an increase of 6.6% compared to 2006 visitor arrivals. The increased numbers were primarily driven by lucrative packages offered by the industry, with prices reduced by as much as 40%.  

The strong performance is expected to continue into 2009 with Fiji Visitors Bureau projecting 600,000 visitor arrivals. However, the destruction caused by the floods in early 2009 severely affected arrivals for the 1st quarter with FVB revising the visitor arrivals to 540,000. 

The 2007 census recorded that 21,460 people or 2.6% of the total population are working in the tourism industry. The industry contributes around 18.4 % of GDP, with $741.7 million earnings in 2006 having estimated tax revenue to government of $140million. 

The Tourism Development Plan 2007-2016 was prepared on the basis of two phases: a recovery period in 2007-2009 in which visitor numbers will recover to at least 550,000 annually. Development of Eco-Tourism will be targeted through various programs and initiatives within Government. 

The recent devaluation of the Fiji Dollar is anticipated to derive more positive economicbenefits to the tourism industry. As a result of the devaluation, Fiji holidays will become relatively cheaper and therefore more competitive against similar destinations.  

The devaluation however, may also have an adverse impact in driving up the cost of food and beverages at hotels, which according to international standards are already highly priced. This presents an opportunity for the local agriculture sector if they can overcome the constraints of inconsistent supply and maintain product quality and standard. The Ministry of Agriculture has been working hard to strengthen this linkage between the tourism industry and the agriculture sector. 

Development Constraints and Challenges 

The development constraints and challenges include: 

Major and on-going Brand Fiji marketing campaign; 

Global financial crisis; 

HINI turning into a pandemic; 

Major growth in key source markets and at least two new source markets; 

Attractive investment incentives and proactive approval process; 

Supporting infrastructure and domestic (air, land and sea) transport linkages; 

Constant supply of trained staff; 

Additional capacity on existing airline routes and new routes established; and 

Negative travel advisories from key source markets such as Australia and New Zealand. 

3.2.3Manufacturing and Commerce 

Manufacturing is a major sector, contributing 13% of GDP in 2008. The sector includes manufacture of textiles, garments, footwear, sugar, beverages and tobacco, food items, wood and metal-based products. A decline in the manufacturing industry is expected due to the global financial crisis and subdued domestic demand and in the export markets.  

The devastation caused by the flash floods in January 2009 has exacerbated the projected slowdown in the industry creating pessimism in the outlook for trade. However, the dollar devaluation presents opportunities for our export sector as exports will be competitive and cheaper in the global marketplace. This will depend on the developments in the global market and the competitiveness of Fiji‘s products.  

The limited investment and technological innovation has constrained the labour absorption capacity of the manufacturing sector. This lack of capacity has increased poverty and unemployment, especially in urban areas. Two persistent factors, the transition away from high-cost industries that are heavily dependent on imports and the impact of globalization on domestic industries that is unable to compete with imported substitutes, have contributed to the limited growth of domestic production and employment. 

The effective implementation of the National Export Strategy using the opportunities available from currency devaluation will assist in export growth. Incentives are available to domestic producers in manufacturing and agriculture to exploit opportunities provided by the numerous bilateral and multilateral trade agreements.   

Development Constraints and Challenges 

The manufacturing sector has a lot of growth potential. However, these are constrained by the following: 

delayed reforms of the sugar industry;  

the inability to find a resolute way forward for the mahogany industry; 

the continuous shrinking of markets for Fiji‘s textile, clothing and footwear industry; 

the weak linkages existing between the natural resource sectors and the manufacturing sector; 

time taken to register business is very long due to outdated regulations and legislation; and 

lack of market support for agro-based products. 

3.2.4Information and Telecommunications 

Information 

Of crucial importance to Government is maximum public awareness of Government‘s plans, programmes and policies. This awareness is deemed vital as it contributes to an informed public and ultimately impacts positively on social and economic development of the country. To this effect, the media plays a vital role in economic development and national unity through its influence. It is in recognition of this fact, that the media is being co-opted as a development partner.  

Telecommunications 

The greater use of Information and Communications Technology (ICT) is essential for social and economic development in Fiji. The contribution of the communication sector to GDP was 3.4 percent in 2008, an improvement from the 0.2 percent decline noted in 2007. The growth of the sector is expected to remain around 3.5 percent in 2010. The developments in communications sector is characterised by the increased usage of cellular phones. This has been facilitated by the commencement of operations by Digicel (Fiji) Ltd and INKK Mobile (Fiji) Ltd.  

Access to traditional ICTs such as radio and television is high. Over 90% of households are estimated to have a radio and over half the population has access to television. Internet use is increasing and people are also becoming more exposed to ICTs through their mobile phones and use of text messages. Electronic transactions in Fiji have also become widespread, spearheaded by the banks.  

ICTs have the potential not only to create new jobs through call centres and other related activities, but also to empower rural dwellers with information and provide low-cost tele-services. The adoption of ICT is also the key to improving productivity, especially in the public sector. Government intends to deliver as many online services as possible and make greater use of ICT in order to improve internal processes.  

The current initiative of Government to develop the ICT sector further and the institution of the e-Commerce Bill will ensure that the interests of suppliers and buyers engaged in transactions over the internet are adequately protected. E-community learning centres are being established in rural areas to enable communities to access information, public services, and business products and services on the internet. 

Recently, an agreement has been reached between Amalgamated Telecom Holdings (ATH) and Government for new competitors in the telecommunications sector. As a result, VoiceNetIP (Fiji) Limited has been given the VOIP licence with the intention to bring maximum benefits and savings to businesses and individuals.  

The IT Advisory Council (ITAC), set up in 2001 includes representatives of key Government ministries, the academic community and the private sector. The ITAC has drafted an ICT Policy with the vision ―to harness Fiji‘s ideal geographic location, competent workforce and world-class information technology infrastructure to promote Fiji‘s international competitiveness and create a dynamic, vibrant and well-connected e-society‖.  

A review of  frequency transmission has been undertaken by the Communications Department with a view to allocate bands and frequencies such that it allows greater transmission activity. 

Development Constraints and Challenges  

Information 

Strengthening long-term partnership with the media industry 

Improving the quality of reporting  

Adherence to media ethics and professional standards 

Expanded coverage of government activities through the mainstream media 

Telecommunications 

High cost of telecommunications and associated activities 

Monopolistic framework for telecommunications  

Lack of awareness about the benefits of ICT 

3.2.5Micro, Small and Medium Enterprises 

The development of Micro, Small and Medium Enterprises (MSMEs) is crucial to national development especially in improving the quality of life of the people endowed with low capital. Substantial untapped opportunities remain for the sector to expand and grow, particularly in rural areas where natural resources remain under-utilized. The Government has identified MSMEs as a priority area for making development more balanced and broad based. Through the Small and Micro Enterprise Act of 2002, the National Center for Small and Medium Enterprise Development (NCSMED) is the primary vehicle through which Government policies and strategies for MSMEs are implemented. Among other responsibilities, NCSMED is tasked to provide training in entrepreneurship and management, business advisory services, support the private sector in developing MSMEs, provide loans and grants to MSMEs, and develop new business opportunities through pilot projects.  

The Microfinance Unit of NCSMED has formed partnerships with various financial institutions for the delivery of microfinance services. This includes 3 microfinance institutions and 6 microfinance service providers and together they cover 13 major areas in Fiji, in which 382 communities/settlements have access to the service. At the end of June 2009, the microfinance program had more than 22,229 savings clients with savings totalling $988,802. 

The Business Incubation Centres (BICs) provide office space for small businesses, support services such as training, business counselling, networking and specialist advice. BICs have been set up in Ra and Suva. 

The challenge for the MSME sector is to create a facilitative environment where educated young people, as a first option, choose to operate a micro enterprise and engage in self-employment than relying on formal sector employment. This requires greater institutional support and access to financial services.   

Development Constraints and Challenges 

The development of MSMEs is constrained by the following:  

Under developed financial sector to offer the range of services suitable for MSMEs; 

Lack of sufficient support services such as business mentoring; 

Poor financial management skills of MSME operators; 

Lack of knowledge about the existence of MSME service providers; and   

Lack of statistics on the MSME sector.  

3.2.6International Relations and External Trade  

Fiji‘s relationships with the international community has been challenging given our relative smallness and isolation from major economies.  The relationships have been further constrained as a result of the recent political developments, particularly with neighbouring nations like Australia, New Zealand and Samoa and traditional development partners like the United States of America (USA), the United Kingdom (UK) and the European Union (EU). 

Strategic engagement with the international communities and traditional development partners under the principles of internationalism and sovereign dignity remains critical.  A new legal order exists with a clear framework for change and achieving parliamentary democracy by September 2014 has been presented. It presents a clear foreign policy framework focused on enhancing global integration and international relations with the objective of regaining Fiji‘s rightful place in the regional and international family of nations.   

The immediate challenge is to regain lost credibility and focus on restoring its traditional relationships by advocating Fiji‘s interests in regional and international institutions such as Pacific Islands Forum (PIF) States, the Commonwealth, the Africa, Caribbean & Pacific (ACP) Group, the EU, and the United Nations (UN). 

Global economic conditions and the erosion of the preferences and other constraints for trade and market access restrictions due to non-tariff barriers applied by many countries have been key challenges in the areas of trade and investments. Adverse advisories and travel bans on those assisting with rebuilding Fiji have also had very negative implications. Trade agreements will be treated with caution to consider first the increasing costs of participation that at times supersedes the potential benefits. However, limited negotiating capacity will be efficiently and effectively invested in areas where there are market access and strategic economic gains to be made. The costs of participation are a result of multiple rules, obligations, technical standards and requirements for market entry.  Despite these, trade will be facilitated through quarantine protocols and customs, ports and immigration agencies will be strengthened.  

Understanding of our development and trade partners are sought and government will continue to focus on restoring relationships with the global family through participation in the international fora, respecting the provisions of international  treaties and fostering mutually beneficial bilateral and multilateral trade and diplomatic relationships . 

There is need for Fiji to strengthen Aid for Trade relationships and secure development assistance through the bilateral and multilateral arrangements.  Fiji‘s foreign missions and trade offices will need to play more proactive roles in securing trade development assistance and at the same time tapping into supply of labour from Fiji for work overseas. 

Development Constraints and Challenges 

Inadequate border control 

Global economic conditions 

Lack of experienced personnel  and resources in trade negotiations 

Slowness in adapting to changes in trading environment 

Constrained relationships with trading and development partners 

Lack of capacity in border and trade facilitation agencies 

3.2.7Employment and the Labour Market 

Around 130,000 people, or 40 percent of the labour force, is estimated to be in paid or formal sector employment. With increased investments and future growth in the ICT and audio visual industries, employment is expected to increase in the medium term. Government still remains the largest employer with some 27,000 employees, accounting for a large proportion of total paid employment. There are signs of skill shortages in both the public and private sectors. However, unemployment in urban areas was estimated at 13.8 percent in 2007 with 

an overall national rate of 11.9 percent (ILO5 Definition6), according to the 2007 Census of Population and Housing. 

5 ILO Definition – Includes those that are seeking employment and those are available but not seeking employment; ICLS Definition – includes only those that are actively looking for employment 

6 International Classification of  Labour Force Statistics (ICLS) definition based urban unemployment rate = 10.5 percent and overall rate = 8.6 percent 

The challenge is to ensure that economic growth is sufficient to absorb the estimated 16,000 people that enter the labour force each year. With the current relatively low economic growth, the formal sector is unable to create sufficient jobs.  Many are left to make their own opportunities in the rural economy and in micro, small and medium enterprises. Government‘s Integrated Human Resource Development Programme for Employment Promotion (IHRDPEP) and NCSMED are spearheading efforts to support employment creation in both the informal and formal sectors.  

The implementation of 55 years retirement age in the public service also has employment implications as the retirees need to be replaced by new graduates to ensure consistent public service delivery. Government is also facilitating faster approval of work permits in sectors facing skill shortages. The closing date of civil service vacancies is reduced from 21 days to 14 days to allow faster processing of employment opportunities within the public sector. Employment placement centres, where job seekers have access to information on available positions and to job-interview training, are to be incorporated into the National Youth Option Centres. Government‘s Internet-based placement service, CareerNET and the expansion of the Computerised Human Resources Information System (CHRIS) will also assist in job creation. The development of a comprehensive accreditation system of qualifications by the Training and Productivity Authority of Fiji (TPAF) will facilitate improvements in the labour market.   

The Government is working on a performance and productivity based wage-setting framework. The process will induce higher real incomes and economic growth as productivity improvement necessitates investment in modern machinery and improved work methods. 

The Labour Market Reform brought about by the Employment Relations Promulgation of 2007 will restore confidence, stability and growth in the labour market and contribute to creation of a business environment conducive to private sector investment. This will induce greater employment opportunities. The employment reforms promote the role of women in development and employment of school leavers. Additionally, the reforms will help improve maternal health of working mothers, reduce child mortality through enhanced maternity protection and promote education of children through its child protection policy. The establishment of the National Employment Centre (NEC) as a ―one stop shop‖ will provide employment services for the unemployed and school leavers, both locally and in overseas markets. The NEC will act as the national umbrella framework for all employment creation initiatives for the unemployed who will be issued with national employment identification cards. The NEC will actively engage Fiji‘s unemployed in meaningful activities through cost-effective facilitation, coordination and monitoring of all current activities including the creation of a new Volunteer Scheme and a Foreign Employment Service. 

Development Constraints and Challenges  

Successful implementation of performance based pay system 

Training and retention of individuals in areas of skills shortage. 

3.2.8Land Resources Development and Management 

Land is a scarce resource in Fiji and access to land is a prerequisite for any development. With the current supply of land there is a need to ensure proper management and planning of land use to ensure efficient utilization. Competing land uses such as infrastructure development, housing, town and country planning and agriculture all require land both in the mid term and long term for expansion purposes. Proper land use management and planning is important in trying to mitigate against any impact that may be directly related to improper land-use or unsustainable development.   

The adoption of an integrated land and water resource management plan is important given the increase in use of agricultural land beyond its capability, intensive cultivation of steeper lands, rapid and escalating tourism development along the coastal zone and coastal floodplain and the loss of good quality agricultural land to other uses. These factors all collectively threaten the sustainable use of Fiji‘s land and water resources. 

The review of the Land Conservation Act is to ensure that the focus and scope of the legislation covers the sustainable use and conservation of both land and water resources. The review also ensures the Land Conservation Board is provided with the appropriate legislation, resources and the political will to fulfill its regulatory role in enforcing proper land use practices. The review mandates the Land and Water Resource Management Board to develop a national land and water resource plan of which it will provide the basis for the piloting of the Nadi Water Catchments project. It will also harness the need for a firm policy commitment from Fiji Sugar Corporation, NLTB, the Sugar Research Institute, and the Ministry of Agriculture that their field officers will incorporate a Sustainable Land and Water Management message into their extension and advisory services.  

To promote resource conservation the existing legislations will be provided with provisions to be applied immediately and comprehensively to control the removal of sand, gravel, rocks and boulders from the bed and banks of rivers and streams. These will mean that any new development will be subject to the requirements of the Land Improvement Act and the Environment Management Act to ensure sustainable management of these resources. With such plan in place, land will be allocated according to its highest and most suitable use. 

To support economic development government intends to create large scale commercial agricultural subdivisions to improve land utilization and increase productivity of the agriculture sector. The intention is to identify available arable land and venture into large scale commercial agriculture farming. These developments will be pursued in partnership with landowners, private sector/exporters and the NLTB.  

Land reform will also be undertaken to ensure that land is made available for economic and social purposes. Creating a market for leased land is part of the land reform options which is focused on ensuring better returns to landowners. To effect such a transformation, it is essential that efficient mechanisms are created to ensure land is made available to potential users who are willing to pay for its use at a rate set by the market and not by any administered 

or legislated rate. In trying to make land available for government development use and in facilitating investment, options such as the purchase of ancestral land, land buy-back schemes and the reversion of schedule A and schedule B land under NLTB will be pursued to ensure that these land is available to government and that it generates a good return on investment both for land owners and NLTB.  

Consulation on the establishment of mechanisms such as Landuse Advisory Boards, National Land Register and a National Landuse Development Plan will be pursued to assist with overall planning and better decision making on the utilization of land.  

Development Constraints and Challenges 

Enforcement of the land use policy has not been effective given the lack of understanding and coordination between key stakeholders on the importance of conservation. The lack of adherence to the Environment Management Act and the absence of a statutory authority is a draw back in the implementation of proper land use and the enforcement of proper land management.  

The promulgation of the Land Conservation Act is expected to provide some authority for the implementation of the land use policy. This will ensure that land user and developers will adhere to the requirements of the Act and at the same time exercise greater precaution on land degradation activities. 

There is a need to review various legislation that deal with the administration and development of land in order to ensure land availability and to facilitate access for potential landusers. 

3.2.9Sugar 

The Sugar Industry is in crisis. The full 36% reduction in preferential prices in the EU market will take effect from 1st October 2009. The EU has indicated that funding under the Accompanying Measures Programme for 2009 has been cancelled. Funding for 2010 and beyond remains uncertain. Domestically, there continues to be ominous signs of an industry on the brink of collapse with lone fertilizer supplier South Pacific Fertilizers Ltd being granted a Government subsidy of $9.8 million to purchase raw materials to supply the industry needs for the 2009 season, low sugarcane production over the past two seasons averaging 2.4million tons, a far cry from the 4.2million tons that the industry reforms are supposed to yield, a high TCTS7 ratio of 10-12, and continued reliance of the miller (FSC) on Government guarantees to enable it to meet its working capital requirements. Government recently renewed its 

7 Ratio showing how many tons of cane required to produce a ton of sugar 

guarantee to FSC in May 2009 for another year, on this occasion increasing it from $25million to $70million. 

There is no doubt that the sugar industry has been an important lifeline to Fiji‘s economy: contributing on average some 7 percent of GDP, generating on average 30 percent of total domestic exports and providing direct and indirect employment to around 51,000 people, consisting of approximately 18,000 growers, 3,000 FSC employees and 17,000 cutters and drivers. It is estimated that about 200,000 people are either directly or indirectly dependent on the industry for their survival. However, it is important to also note that throughout its existence, the industry has been sustained by preferential access to the UK market, assured since 1975 under the Sugar Protocol, and sympathetic government subsidies. With such a legacy, it is no surprise that efforts to reform the industry into a competitive player in the global sugar market, is proving a challenge.  

Data over the last 30 years show a general trend of declining production, more profound from the mid-1990s. The decline in output of both cane crushed and the resultant sugar content (particularly the latter) has been much more rapid than that of either the area planted under cane or the number of growers. This reflects a particularly sharp deterioration in productivity at the field level, both in terms of cane yield per hectare and in cane quality.  

This is best illustrated by the ratio of a ton of cane needed to produce a ton of sugar (TCTS) which was in the range of 7.9 to 9.8 from 1975 to 1990, and increasing to the range of 9.1 to 11.1 from 1990 to the present. This means that the industry today needs on average at least 15.2 percent more cane to produce a ton of sugar compared to 30 years ago. This translates into increased cost for both the grower and the miller. 

The decline in sugar output has been attributed to the movement of people off farms, the lower fertility of land due to unsustainable use and the ongoing use of low sugar content varieties of cane.  

Sugar production declined in 2008 to around 208,727 tons, 13% below the 2007 level, from 2.32 million tons of cane. This represents a TCTS ratio of 11.15 which is high and inefficient. A desirable TCTS ratio for the industry would be around 8.0. The outlook for 2009 is not positive largely attributed to the devastation of the January 2009 floods. Sugar production forecasts for 2009 and 2010 currently stand at 208,000 tons and 257,000 tons respectively. Total sugar exports for 2009 are projected to decline to $176.5m from $248.2m recorded for 2008. Projections for 2010 and 2011 currently stand at $162.2m and $175.6m respectively. 

Government has set-up a Task Force comprising of all the stakeholders as its first step towards expediting the Sugar Industry Reforms. The objective of the Task Force in revitalizing the Sugar Industry was to formulate and implement an agreed Sugar Industry Plan to provide a way forward for the Industry. The plan identifies the real solutions in helping the farmers, addressing the pressing issues of land, fertilizer, cane production and productivity, harvesting and transportation as well as identifying other farm based activities to supplement cane incomes. The plan also encourages FSC to be an efficient miller to enhance the quality and quantity of sugar production and supplemental income through diversification projects. A draft Industry Plan has been produced and agreed to in principle by the Industry.  

With the uncertainty surrounding the support from the EU under the Accompanying Measures Programme, it falls on Government and the Industry to finance the reforms outlined in the Industry Plan. Government is committed to ensure that the chosen path of reforms is successfully carried out.  

While programmes targeted at addressing milling inefficiencies through equipment upgrading and replacement are at an advanced stage, initiatives to improve farm productivity and transporting efficiency are lagging behind. This is a concern given that improving farm productivity is crucial to the survival of the industry, as it prepares for exposure to more competition in the world market. This is the real challenge of globalised trade. The launching of a new cane variety in August 2009 by the Sugar Research Institute is a welcome development. 

The Ministry of Sugar in conjunction with the Ministry of Primary Industries are also focused on enhancing diversification projects to ensure a broader income base for cane farmers through import substitution and export promotions programme. There is a growing lack of confidence amongst farmers within the cane belt to plant cane. This has seen a mass exodus of people from the cane farming belts to the towns and cities in search of a more secure income, education, and livelihood. This presents a major challenge for the Industry, with an ageing population left to tend the farms. The solution to this is to make sugarcane farming attractive again. 

In an attempt to break the heavy institutional set-up of the Sugar Industry, Government has carried out major reforms which had seen the dissolution of the Sugar Commission of Fiji and the winding up of the Fiji Sugar Marketing Company Limited. The responsibilities of the latter has been taken over by FSC. The Sugar Cane Growers Council has also been dissolved to ensure that cane farmers are not burdened with additional expenses in the form of contributions in times of falling sugar cane income levels. 

As a short term measure to address the loss of land under sugar, Government set up the Committee on Better Utilization of Land, which negotiated with landowners on expiring leases, and through a government subsidy, topped up land rentals received by landowners to 10% of UCV. To date, out of the 5,464 expired leases, CBUL has successfully negotiated the renewal of 4,139 leases. The subsidy scheme is a 5 year initiative and farmers are expected to bear the full cost from 2015 onwards.The initiative, however, is a short term solution while Government progresses to implement reforms in the administration of land in Fiji. 

Accountability and confidence needs to be cultivated with the industry being more incentive driven. In this regard, it is of critical importance to introduce a payment system for cane based on the sugar content of the cane. There should now be a shift in efforts – at all levels in the industry – towards maximizing sugar production and not cane production.  

Development Constraints and Challenges  

Development constraints and challenges include: 

Industry viability depends upon the commercial values in all aspects of operation, from farming and harvesting, to transportation and milling; 

Effectiveness of the extension services, research and development work of the Sugar Research Institute and FSC;  

Effectiveness of recapitalisation program; 

Loss of experienced farmers; 

Renewal of productive land leases; and 

Support provided by the EU and confirmation of funding. 

3.2.10Non-Sugar Agriculture and Livestock 

The agriculture sector, during the last decade grew at an average rate of 0.13% and the average growth attained is a direct result of low investment in the sector. Projections for 2009-2011 indicate a period of slow growth in the sector.  The non-sugar agriculture sector is still predominantly subsistence and on average contributes 7.8 % of GDP, accounting for around 3.8 percent of domestic exports. Food imports in 2008 constituted 14.4% of our total imports, which is of particular concern. 

The non-sugar crops constitutes of traditional food crops (taro, cassava, yams, sweet potato, and kava), tropical fruits (pineapple, pawpaw and mango), vegetables, pulses, ginger, tobacco, rice, spices, cocoa, and coconut products. The livestock industry includes beef, dairy, pork, poultry meat, eggs, sheep, goat and bee products. Major contributors to exports are fruits (pawpaw) and vegetables, including taro. A small but growing volume of certified organic products, including coconut and fruit products and nutriceuticals are exported. However, growth in the sector has been volatile. 

Food security is a priority given Fiji‘s vulnerability to natural disasters and its susceptibility to the global food crisis. The FAO‘s Food Import Capability Index (FICI) provides an indicator of a country‘s level of food security vulnerability. An FICI ratio of above 0.5 is considered vulnerable, with Fiji having a decade average of 0.17, issues such overliance on imported food itmes, change in consumer preferences and changes in community lifestyle is certainly like increase our vulnerability in the near furture. External shocks such as the impact of currency devaluation on our purchasing power and the erosion of trade preferences with the European Union is also likely to affect our demand for alternative livelihoods. 

Growth in the importation of agricultural produce (live animal, animal products and crops) by hotels and resorts due to the inability of domestic farmers to provide consistent supply of quality agricultural products is contributing to the rising import bill. To penetrate this segment, emphasis will be on putting in place proper programmes and infrastructure to  support the production capacity of local farmers and improving the quality and standards of agricultural produce. In addition partnership with private sector involved in the supply and value chain will be harnessed through provision of appropriate incentives and  support. 

The implementation of the National Export Strategy (NES) provides the platform for supporting local industry organization on infrastructure development, enhancing market access opportunities for exports and the penetration of emerging export markets. Synergies will be considered between NES and other rural development oriented programmes such as Export Promotion Programme (EPP), Import Substitution Programme (ISP), Sigatoka Valley Development Programme, Rural and Outer Island Development Programme (ROI) and the Northern Development Programme (NDP) to ensure greater cohesion and effective implementation of the Demand Driven Approach (DDA). The Demand Driven Approach both for export and import substitution commodities involves commercialization and strengthening industry organizations and agri-business networks, promotion of young farmer training, recognition of industry priorities by Government and the provision of support to medium sized entrepreneurs and exporters with existing market protocols.  

The Import Substitution and the Export Promotion Programme is focused on improving the quantity and quality of commodities both for domestic consumption and exports. An integral part is focused on reviving both the crops and livestock component of the agriculture sector with special focus on import substitution commodities. The reviving of the livestock industry is targeted at the breeding of genetically superior livestock, provision of training on pasture feed management, good animal health practices and improve farm management techniques. Investment in the industry is targeted at the dairy and beef components of the industry. The introduction of subsidies for the farm gate price for milk is to boost local supply of milk and also to encourage farmers to supply milk to Rewa Cooperative Dairy Company (RCDC).  

Bilateral Quarantine Agreements (BQAs) continue to boost exports significantly. Export market access for agricultural products cannot be obtained without a BQA. BQA for other potential export commodities are being pursued, however investment in research and equipment needs to be prioritised. Market access already secured under BQAs are for pawpaw, eggplant, chilli, herbs, pineapple, breadfruit, and mango to New Zealand; kava to Vanuatu; watermelon, yams, and vanilla to Tonga; coffee and copra to Papua New Guinea; and pawpaw to Australia. Farming techniques and post harvest handling need to be improved to address the issues of quantity, quality and consistency of supply. 

Potentials in rural and outer islands still remain largely untapped. Production in these areas remains largely subsistence due to lack of infrastructure, adequate transport services, long distances to markets and the non-availability of incentives in the agriculture sector to induce greater agricultural production. The Agricultural Marketing Authority provides some form of market access but its coverage and its ability to absorb supply from remote farmers is limited. 

Fiji‘s agricultural sector has enormous development potential given the availability of productive land and natural resources. The way forward for the sector is dependent on harmonizing all rural development initiatives to ensure equitable distribution of resources to less developed areas and the opening up of possibilities for commercial agriculture in remote rural areas.  

Development Constraint and Challenges  

Lack of investment in agricultural research especially product development  

Development of market access, BQAs and commodity protocols 

Agricultural infrastructure and equipment are inadequate to deal with demand 

Reinvestment needed from producers  

Improved extension services 

Capacity building for farmers 

Awareness on proper farming techniques, soil suitability and conservation, post harvest handling, market access and financing 

Establishment of Export Insurance Facility 

3.2.11Forestry 

The forest sector on average accounts for 1.2% of GDP and 4.1% of export earnings. Fiji has a total forest cover of 1,054,419 ha, covering 58% of the total land area. This consists of 899,229ha of native forest, 116,488ha of plantation forest (52,419ha of hardwood plantations 

and 64,068ha of softwood plantations) and 38,742ha of mangrove forest. The native forest consists of 5,738ha of nature reserves, 16,109ha of forest reserves, and 1,300ha of recreational parks.  

The performance of the sector in the past few years has been poor due to the complex institutional environment in which the sector operates, exacerbated by low log production, poor performance of public companies involved in the sector such as FHCL and Fiji Pine Limited(FPL), and the delays in getting Wairiki port into operation. The sector declined by 1.6% in 2007, 3.4% in 2008 and projected to continue to fall sharply in 2009 by 9.1% mainly due to woodchips exports, which, based on current orders, is projected to fall by 43.8%. However, a recovery of 4.3% and 0.9% is currently projected for 2010 and 2011 respectively, as Government puts in place measures to address the current institutional constraints.  

Fiji is a producer and exporter of woodchips, sawn timber and plywood/veneer. Forestry exports have increased in the past few years with export earnings up by 27% in 2007 to $47.7m and 24.3% in 2008 to $59.3m. These increases were largely driven by earnings from export of woodchips which doubled in 2007 from $13.4m in 2006 to $27.1m in 2007 and later to $27.6m in 2008. A decline of export earnings by 15% is projected for 2009 due the depressed demand in the global economy. Nevertheless, a recovery in export earnings of 8% and 4% is projected for 2010 and 2011 respectively.  

The National Forest Inventory, the formalization of the Fiji Forest Policy Statement and the National Forest Program provides the framework for the sustainable management of Fiji‘s forest resources. These tools represent a paradigm shift in the management focus away from timber production towards conservation and sustainable management. With emphasis on sustainable forest management, increased landowner aspirations, expansion in nature reserves, afforestation, climate change adaptation and globalization, there is more awareness on the social functions provided by forests to improve water source quality, improve agricultural land and reduce vulnerability to natural disasters especially flood mitigation.  

Total wood production in Fiji is presently approaching 500,000m3 annually with 100,000m3 from native forests, 100,000m3 from mahogany plantations, and 300,000 m3 from pine plantations. 

Fiji has a total of 41,000ha of mahogany stocking, which is one of the largest mature mahogany resources in the world. However, the full benefits of this resource have not been realized due to stakeholder conflicts creating uncertainties. In order to set a clear direction for the industry, Cabinet agreed in June 2008 to transfer the ownership of the mahogany plantations to the indigenous landowners through the Fiji Mahogany Trust (FHT), with the role of Fiji Hardwood Corporation Ltd (FHCL) redirected to one of forest manager.   

There is potential for large denuded forest grasslands to be converted into forest plantations of sandalwood (Santalum yasi) and teak (Tectona grandis) plantations. Reforestation could result in the employment of skilled and unskilled people who have been displaced from the sugar industry. The harvesting of the high value mahogany resource, technology, trade standards and forest certification are prominent in the National Forest Policy Statements. On the prospects of resource utilization and business development, there is potential for development of Wood Energy Industries, Furniture Manufacturing, Coco wood Industry  and Carbon Trading.  

Other potential business opportunities that are being pursued include the supply of fuel wood for the production of power from biomass. FPL has commenced a 100-hectare trial on pine resin tapping and the viability of such an operations is be evaluated to ensure the current log supply market is not affected. 

The Forestry Department is also collaborating with NGOs, regional organisations, and the Department of Environment through a four year GEF funded project of US$3.7 million on the conservation of Sovi Basin, located in Naitasiri and Namosi provinces. Landowners of Sovi Basin are getting an annual proceed of around $200,000 of which about half are paid directly as lease and compensation on foregone timber royalties.  

Development Constraints and Challenges 

Development constraints and challenges include:  

Absence of comprehensive regional and national land use plans; 

Limited protection and enforcement for conservation especially in native forests; 

Inadequate knowledge of forest resources; 

Inadequate research efforts; 

Poor fire protection capabilities and procedures; 

Institutional weaknesses and difficult bureaucratic processes; 

Outdated forestry legislation; 

Absence of detailed forest management and harvesting plans; 

Constrained value adding capacity; 

Market access and niche marketing; and 

Forest certification and trade standards 

3.2.12Fisheries Resources 

The fisheries sector accounts on average for 2.7% of GDP and 9.7% of domestic export earnings. Fish production in Fiji is estimated at around 22,000mt with an average fish production in the last 10 years of 24,000mt. Tuna contributes 67% of total production in the industrial fisheries sector whilst artisanal fisheries contributes 28% and aquaculture contributes 5% of production.Industrial fisheries contributes 84% of total export earning  while artisanal fisheries contributes 16% of export earnings.  

The sector declined sharply by 15.9% in 2007 on the back of soaring industry costs, driven largely by the rise in fuel costs. While there was a slight recovery of 4.5% in 2008, the outlook for 2009 is a decline of 3.4% as the impact of the global recession takes hold, affecting mainly the Japanese sashimi market. The devaluation of the Fiji dollar may boost exports and support growth, but is also expected to adversely affect industry operating costs. A recovery of 4.1% is currently projected for 2010 followed by a decline of 6.7% in 2011. The decline in 2011 is expected to be caused by a more pronounced el nino impact. 

The management of offshore fisheries has been an area of concern, not only nationally, but regionally and globally, particularly in the wake of an invasion of State subsidized Asian fleets. While total catch has increased in the past 2 years from 12,417mt in 2007 to 13,330mt in 2008, catch in domestic waters is declining. This prompted a reduction in licences issued for vessels in the Fiji EEZ from 100 in 2003 to 45 in 2008. There are currently 40 licensed vessels operating in 2009 from a licensing cap of 60.  Most of the fish catch is now coming from high seas and neighboring countries. Resource management, therefore, becomes critical and mechanisms such as the Tuna Management and Development Plan need to be followed and enforced at the national level.  

Fiji has an expanded value adding industry for tuna, which includes frozen sashimi grade, yellow fin loins, loining and carbon monoxide treated yellow fin for the US market, fish smoking for the niche Japanese market and small scale value adding for the local and export markets. Sustainable development in the fisheries sector will require strengthened policy, 

institutional and regulatory frameworks which are developed with stakeholder participation. The revision of the Fisheries Act is planned for 2009 with assistance from the Forum Fisheries Agency.  

In June 2008, Fiji was removed from the list of countries allowed to export fish products to the EU market because of a failure to put in place a competent authority to ensure compliance to the EU fish export standards requirements. This has resulted in the loss of around $5million in value of fish exported to the EU annually. Fish exports to the EU are directed to the UK, France, Netherlands, Italy and Germany and compose mainly of fresh/frozen tuna fillets and loins. The EU has since provided technical assistance to Fiji to allow the competent authority to comply with EU requirements. It is estimated that it will take at most 2 years before access to the EU market is opened again for fish products from Fiji. 

The fishing industry has expanded in recent years to include other fisheries such as aquarium trade, live rock, and live coral. There is an expansion of demand for marine products supported by health oriented consumers as well as for management and conservation as in marine parks and marine protected areas (MPA). Development of other areas such as seaweed farming, aquaculture and recreational fishery for both food security and income generation is also being encouraged. 

Aquaculture programmes have not progressed well despite large investment from Government and donors. Total aquaculture production is estimated at 500 mt/20,000pcs valued at about $12 million on the back of the strong results from the pearl industry. Principal types of aquaculture initiatives consisted of eight (8) aquaculture species, namely, Tilapia, Carps, Brackish water shrimps, Prawns, Fancy Carps, Gold Fish, Pearl Oysters and Seaweed. While the objectives were to improve the nutritional status of rural populations, generate supplementary income and diversify activities, create opportunities to stem the flow of migration from rural to urban areas, the strategy was also designed to enhance production for import substitution (prawns, mussels, oysters, fish), and the re-seeding and stocking of our fisheries water ways. However, more research is needed to improve the quality of fries (babies) and feed which are key obstacles to commercialization. The current average yield of 1.2mt of fish per hectare needs to be increased to 26mt in order to sustain a viable industry. 

Seaweed farming engages the family, community, Government and the private sector, and offers an alternative livelihood to isolated rural areas, especially in maritime zones where shipping services is irregular and unreliable. In Ono-i-Lau, this commodity has provided employment, raised the standard of living and contributed to the drift to urban areas. There are 198 active farmers producing an average of 60mt of dried seaweed per year around Fiji. The demand by the current market for Fiji seaweed is 2,000mt per month with projected export earnings of $36 million per year.  

The pearl industry is another potential growth industry with Government working in partnership with the private sector. This partnership has supported the operation of 11 pearl farms which have produced an average of 50,000 pieces over the past 2 years valued at around $1.6million. The industry is worth $7.5 million and government is aiming at increasing the value to $50 million by 2015.  However, increased technical capacity is needed to develop the industry. 

The main constraints preventing sustainable commercial development of this sector are the lack of technical expertise, lack of appropriate technology and infrastructure, lack of ability to access appropriate markets and capital, reduction of fishing products, unfavorable investment climate, declining fisheries resources, transport difficulties and export standards compliance. 

Development Constraints and Challenges 

Development challenges and constraints include: 

Legislative and structural reforms; 

Institutional approach to fisheries management; 

Management of fish stocks; 

Overfishing, illegal and unregulated fishing; 

Suitable port facilities and distribution system; 

Constrained value adding capacity; 

Market access and niche marketing; and 

Fisheries certification and trade standards. 

3.2.13Mineral and Groundwater 

The mining and quarrying sector on average accounts for 1.5% of GDP, generates on average 8.5% of total domestic exports and at its peak supported a workforce of over 1,700 personnel as well as 350 directly related contractors. The Vatukoula mine shut down in 2006 because of rising operational costs and low output which severely affected the viability of its operations. After placing the mine up for sale, an Australian company, Westech Gold purchased EGM‘s operations and tenements in Fiji. Production in 2007 was a mere 932 ounces. In 2008, a UK-based company, River Diamonds, acquired the Vatukoula operation from Westech. With Vatukoula mine under new management, mining operations gained some momentum with gold production increasing to 22,496 ounces. For 2009 gold production is expected to increase to 36,000 ounces, an estimated increase of 60% from 2008. With the increase in interest shown by investors and number of forecasted mining activities, the sector is expected to further grow by 38.9% in 2010 and 20% in 2011 respectively.  

Fiji has good prospects with regard to epithermal gold (associated with volcanic centres), porphyry copper-gold (Namosi), and smaller base-metal deposits (Udu, Wainivesi). Mining and exploration in Fiji has been dominated by gold production from Vatukoula mine however the existence of several mining prospects such as Tuvatu (gold mine), Wainivesi (copper mine), Mount Kasi (gold mine) Namosi (copper mine) and other solid mineral deposits could mean more revenue, foreign exchange, and employment from this sector than from Vatukoula alone. The potential of Fiji‘s mining industry is enormous given the number of exploration licences issued and the various types of activities undertaken by each sectors. From 2007 to 2008, a total of 16 exploration licences were issued, with an additional 2 licences issued in 2009. The conversion of these exploration licences to mining leases provides the impetus for growth and development of the mining industry as a whole.  

The groundwater sector consists of development and production of ‗mineral‘ or bottled water. Export receipts from bottled water plants at Yaqara and in Nadi areas have been experiencing exponential growth since its inception. Overall growth for the industry is forecasted to increase as robust growth for Natural Waters of Viti Limited (‗Fiji Water‘) is expected to continue given its reputation in the US market. There is currently no legislation governing water resources in Fiji. However, the new mining legislation to be promulgated would legislate the access, use and management of groundwater resources, until a separate legislation is formulated. Given the need to have an effective regime for managing water resources, the National Water Committee has been meeting to develop a water policy. Final consultations are planned for October 2009 before a Water Policy is considered by Cabinet. 

Recent studies have indicated that Fiji has a huge potential in geothermal energy. However, this has yet to be firmly established. In 2008 exploration was carried out in Labasa by the Asia Pacific Resources Ltd, an Australian company. However, more exploration is needed to ascertain the viability of the resource. 

In addition to geothermal energy, offshore mining has attracted a lot of interest by prospective investors. Government has, therefore, seen the need to put in place a legislative framework for offshore mining, given that this is a totally new area for the Fiji mining industry. Offshore exploration and mining in Fiji has, therefore, been placed under moratorium until the Offshore Mineral Policy is approved by Cabinet. A workshop on Offshore Mineral Exploration and Mining in Fiji with all stakeholders has been planned before the Policy is considered by Cabinet in October 2009.  

There has been a lot of focus on mining operations with little attention paid to the potential economic activity generated through exploration. In order to tap into this segment, the current fiscal regime needs to be reviewed to be sufficiently attractive for small exploration companies. In order to develop new mines, an effective exploration industry is required. Exploration is a high risk capital business and investors enter with the aim of reaping high rewards. Some key issues to consider when forming a tax package for minerals include the high capital (and debt) intensiveness of mining ventures, the cyclical nature of metal markets, and the long and costly period of pre-operational expenditures on exploration and feasibility studies.   

Development Constraints and Challenges  

Being a high risk industry, attracting investors to this sector does not necessarily require political stability, as proven by countries like Papua New Guinea and those in Sub-Saharan Africa. A facilitative Government process, transparency in legislation and policies, security of tenure, a competitive tax regime and robust legislation are deemed more important criteria for attracting mineral investors. 

Inadequate technical capacity and under-resourcing of the Mineral Resources Department (MRD) is a major constraint for the industry. The shortage of technical experts such as geologists, compromises the Department‘s ability to scrutinize submissions from the industry or add value to activities in the sector.  

Security of land tenure is a critical issue for mineral sector investors. Without transparent and adequate compensatory policies, landowner grievances can become a significant impediment to long-term mine operations. 

A conducive and sound regulatory environment is needed to support development in the sector. There needs to be urgency placed on the promulgation of the new Mineral (Exploration and Exploitation) Decree, as well as the legislation governing groundwater. There remains no legislation or policy framework that addresses the extraction, use and management of groundwater in Fiji. The same applies also to the use of surface water for commercial purposes. The Rivers and Streams Act and the Irrigation Act fall far short of an appropriate regulatory framework for addressing rights/access to water and its different uses based on the principles of sustainable development. 

3.2.14Financial Services 

Financial services are essential in creating an environment conducive to promote the growth of savings and channel these savings from those who save to those who take risk and invest in business activities which yield social and economic returns to the economy.  Hence well managed financial services contribute to the strategic priorities of maintaining macroeconomic stability, restructuring to promote competition and efficiency, raising export earnings and raising investment levels for jobs and sustainable economic growth.  

Resilient and well-regulated financial systems are essential for macroeconomic and financial stability in a world of increased capital flows. The implementation of the recommendations of the Commission of Inquiry into Financial Services (COIFS), IMF/ World Bank Financial Sector Assessment Programme (2007 FSAP), Export Finance Facility (EFF), the superannuation sector study and the introduction of the Fiji Real Time Gross Settlement (RTGS), FIJICLEAR are key strategies aimed at achieving a vibrant and efficient financial sector.  

Development also requires the extension of formal retail banking services to rural areas and outer islands so that those residing there are better able to establish and expand businesses and meet social needs. This will build upon present development of micro finance - including savings and credit unions and the Micro Finance Unit - and increased access to rural commercial banks through the establishment of specialized micro-finance operation. In addition, the RBF has established a specialized Group to assist and strengthen micro-financing initiatives in Fiji. 

Moreover, such developments may bring out more success to the economic and social activities in the rural areas, if promotion of accessibility is continued along with transparency planning, co-ordination and consultation between Government agencies so that rural ‗unbanked‘ areas to be also part of the new modern banking system that is available in the urban areas. The financial system needs to be supervised. Proper legislation and regulations need to be in place. Review of the appropriate legislations including the RBF legislations and the Banking and Insurance legislation coupled with increased data coverage will reflect performance and standards of the financial sector. There needs to be proper supervision of financial institutions that are not licensed by the Reserve Bank eg. credit unions, money lenders, etc.In addition, the RBF will spearhead all new rural banking initiatives that are in line with the Banking Act (1995) definition to increase the coverage of basic banking in rural as well as that considered ‗urban‘, but which do not have access at present.. For the development of the capital markets, appropriate incentives will be considered for companies to list on the stock exchange. 

Development Constraints and Challenges  

There have been significant improvements in the financial services sector, however, much is yet to be accomplished to address the constraints and challenges to make the sector efficient and manageable/transparent. Such measures include: 

improved efficiency in resource allocation and institutional arrangement for processes of financial intermediation; 

on-going alignment of domestic prudential regulation to latest international sound and best practices; 

enhanced stability and soundness of the financial system to include prudential supervision arrangements particularly for deposit- taking institutions like credit unions;  

consistent use of relevant indicators such as Financial Soundness Indicators (FSI) and stress testing, to assist in the assessment of strengths and vulnerabilities of financial systems and also serve as critical inputs for policy formulation; 

ensure that developments in the financial markets support the ongoing developments of the real sector; 

extending financial services to those living in rural areas and outer islands and the importance of this to poverty reduction; and 

pursuing supervisory arrangements for capital markets. 

3.2.15Transport 

Transport plays an critical role in our economy contributing around 10.2% of GDP in the last three years, (2007-2009). It also employs considerable amount of people in both formal and informal sectors with the latter most vibrant in the land transport industry. It also links key social and economic sectors of the economy including resources based industries, education and health. 

The sector‘s contribution to GDP is expected to expand to 20% by 2014 once the impact on the economy of the support from EXIM Bank China and EXIM Bank Malaysia comes through. 

In the next five years, government will pursue vigorously its transport financing with the private sector especially in the area of land transport. In the next year or so, government will be engaging the  private sector to go into financing rehabilitation works for existing roads.   

Asian Development Bank (ADB) is also assisting government in the establishment of the multi sector regulator to be adopted soon aimed at promoting competition and  minimizing externalities.         

Land Transport 

A number of externally financed projects are expected to begin next year such as upgrading of the Buca Bay Road and Nabouwalu/Dreketi road in Vanua Levu and the Sawani/Serea Road, Valley Road, and Moto road in Viti Levu. The upgrading of these roads is expected to provide critical market links for farmers and buyers and substantially reduce costs.  

Government has also recognized the momentous task of maintaining existing sealed roads (1,617km). The 1997 Lee report recommended at least $50million to be available to maintain road annually based on 865km sealed roads at that time. To this end, government has promulgated the road user levy in January 2009 to at least collect $14million annually for this purpose alone. LTA has already put in-place two weighbridges to minimize the effect of vehicle overloading. Road safety needs to be relooked at to better address its financing needs. Avoiding the dreadful effects of pollution from vehicles also remains to be dealt with. 

The FRUP III project is expected to be completed by early 2012 after the award of the remaining two contracts to Naim Cendera (Malaysia) and Fairdeal Earthmoving Limited with the estimated cost of  the contracts put at $59.6million. 

Sea Transport 

The shipping freight rates and the domestic franchise scheme have been under review lately shipping services on both economical and uneconomical routes can best be addressed. Government also constructs and maintains new and existing jetties to take heed of the demand from those living in the outer islands. In 2009, it will complete the construction of the new jetty for Kadavu whilst the Rabi jetty will be completed in 2010. Expansion of international cargo shipping services is largely determined by the export-import market and the current trend will be economically viable once it is reversed. 

Air Transport 

Air Pacific is expected to commence flights to Hong Kong in December 2009 with the new air services agreement (ASA) signed with China in early 2009. A similar ASA has been signed with Continental Micronesia to service routes between Guam/Nadi/Honolulu soon. In mid-2009, AFL started works on upgrading Rotuma airport to bring it up to international standards. Estimated cost of this upgrading work is $17million. 

Development Constraints and Challengers 

The development constraints and challenges include: 

encouraging training for more engineers, transport economists, surveyors, etc.‘; 

strengthening and establishment of relevant legislation to support regulatory roles in industries like roads, shipping, aviation, etc; 

provision of more resources to address safety standards; 

taking advantage of the free air space provisions under ICAO; 

providing conducive environment to encourage private sector participation; 

government commitment to ensure establishment of relevant institutional reforms; and 

government holistic economic policy of co-existing activities integrated with transport development. 

3.2.16Energy 

The provision of a regular energy supply is critical to the functioning of any economy. Availability, reliability and cost of appropriate forms of energy are necessary as a basis for viable investments needed to attract private productive investments to create employment, alleviate poverty and increase exports. 

Fiji, like any other country in the region, is heavily dependent on imported fuel to meet a major component of its energy demand. As such, Fiji is vulnerable to the continuous fluctuation of world crude oil prices. For the past few years, demand in Fiji has increased from around $400 million in 2004 to $1.25 billion in 2008.  

The development and approval in 2006 of the National Energy Policy(NEP) by Cabinet has provided a common framework for both the  public and private sector to work towards the optimum utilisation of energy resources for the overall growth and development of the economy. The policy focuses on four key strategic areas that include; i)National Energy Planning, ii)Energy Security, iii)Power Sector and iv)Renewable Energy Development. With challenges confronting the sector, summarily the approach intends to strengthen our supply sources and simultaneously manage our demand for energy. With the above, Government further plans to develop an energy legislation based on the NEP. 

Around 66.8% of the country‘s electricity requirements are met from renewable energy sources which include; 62.1% hydro, 0.6% wind and other renewable resource 4.1% biomass. This is provided largely through the FEA‘s grid network on the two main islands and Ovalau. Imported petroleum for diesel back-up generators, meets the remaining balance of 33.2 %. The Department of Energy (DoE) has also installed about 600 diesel based systems in various rural communities.  

The amount of electricity generated and sold by FEA reflects the level of economic activity in the country. Currently, the contribution of the electricity sector to GDP is about 3.6%. This is projected to increase as a result of greater access to electricity in rural areas under the Government‘s Rural Electrification Programme which, apart from the extension of the grid networks and diesel schemes, also encourages the utilization of solar home systems in rural communities.  

Major changes have taken place within the FEA, following its internal restructuring to improve the efficiency and effectiveness of its operations. Government is reviewing the regulatory role of FEA with the intention of removing this role from FEA, which will enable the company to concentrate on its core business and largely promote a competitive environment for the sector. FEA plans to invest $350m up to 2012 in parallel with some $150 million of private investment in IPP and PPP arrangements. FEA hopes that all these additional national investments in renewable energy sources (hydro, geothermal, wind, biomass and municipal waste) will assist in the accomplishment of its goal of 90% renewable energy by 2011. In addition to the above, Government continues to support FEA‘s proposed new energy developments, such as the Nadarivatu Hydro project. 

In terms of final energy consumption, the Transport sector has continually consumed a little over 40% of the total energy supplied. This is followed by the Commercial sector, Industrial and Domestic sector. Some of the important measures that have been identified to address the situation are outlined;  

i)addressing consumption of our transport sector through the development and use of bio-fuels locally and other legislative measures; 

ii)diversifying the current energy mix through the use of LPG in the industrial, transport and domestic sectors; and 

iii)improving the efficiency of energy use in all sectors of our economy.  

Development Constraints and Challenges 

The development constraints and challenges include: 

Continuous fluctuation and the high price of oil that increases domestic costs and the fuel import bill;  

Regulatory arrangements in the electricity industry;  

Lack of a regular energy sector information database;  

Weaknesses in the delivery mechanisms under the current Rural Electrification Policy; and  

Development of Renewable Energy Projects. 

3.2.17Water and Sewerage 

The consistent supply of clean, safe piped water and efficient sewerage services are crucial for both rural and urban sectors in inducing greater economic activity and commercial developments. Fiji has an abundance of water resources, however, there are persistent problems of supply of piped water. Approximately 75 percent of Fiji‘s population has access to piped water while the proportion of population having access to sewerage facilities is about 25 percent. 

Government recognizes the importance of water and sewerage services in the socio-economic development of the country. As such, in the next five years, Government will ensure that inhabitants of some of Fiji‘s most densely populated areas have access to regular and safe piped water and an environment friendly sewerage system. 

The Suva/Nausori Regional Water Supply and Sewerage Scheme are currently undergoing upgrading and augmentation works to improve the level of service to consumers in terms of reliability, quality and quantity. There are altogether 25 packages under this project of which 8 have been completed. Sewerage rehabilitation and augmentation works have also begun on the Kinoya Sewerage Treatment Plant, Tacirua Sewer extension, Samabula North Sewer  and the Suva Point Sewerage.   

In the Western division, the Nadi/Lautoka regional water supply scheme involves the upgrading of the raw water supply capacity pipeline from the Vaturu Dam to Nagado Water Treatment Plant to allow for better transfer of water to Lautoka. The progress on the Natadola Water project has seen the completion of the pipeline between Sigatoka and the Voua Reservoir near the Fijian Resort. Further developments are envisaged on the pipeline from Voua Reservoir to Natadola and construction of the Natadola reservoir and pump stations. 

Government will continue to pursue reform programmes in the Water and Sewerage Department. The development of a water management policy will safeguard the proper management of Fiji's fresh waters and the marine environment as well. New legislation and regulation will ensure an appropriate framework for sustainable exploitation and environmental protection of fresh water rivers and ground water aquifers.  

Development Constraints and Challenges 

The development constraints and challenges include: 

financing infrastructure upgrading, low level of cost recovery and lack of professional and technical staff; 

aging of existing infrastructure; 

low levels of cost recovery; 

increased demand for infrastructure from the growing tourism industry, business centres and industrial estates; 

creation of new water and sewerage company; and 

acceptance by consumers of the need to adopt a user pay concept. 

3.3Policy Objectives, Strategies and Key Performance Indicators 

3.3.1Macroeconomic Management 

 3.3.2Tourism 

3.3.3Manufacturing and Commerce 

3.3.4Information and Telecommunications 

 3.3.5Micro, Small and Medium Enterprises 

 3.3.6International Relations and External Trade  

3.3.7Employment and the Labour Market 

3.3.8Land Resources Development and Management 

3.3.9Sugar 

3.3.10Non-Sugar Agriculture and Livestock 

 3.3.11Forestry  

3.3.12Fisheries Resources 

3.3.13Mineral and Groundwater 

3.3.14    Financial Services 

3.3.15Transport 

3.3.16Energy 

3.3.17Water and Sewerage 

CHAPTER 4

Chapter 4Socio-Cultural Development 

4.1Review of Social Development 

4.1.1Human Development Index and Millennium Development Goals 

One of the key purposes of good governance is the creation of a society free from poverty where all have equal access to their basic needs and social justice is assured. The challenge is not only to reform the economy in order to boost economic growth but also to empower the people as a means of revitalizing their livelihoods. This calls for a human rights approach to development planning that places people at the centre of development efforts. The added value provided by this approach is that the norms and values enshrined in it have the potential to empower the poor. This is important, because it is now widely recognized that effective poverty reduction is not possible without empowering its people. 

Most of the social indicators have worsened in Fiji over the past decades.These indicators include theHuman Development Index (HDI) and the Millennium Development Goals (MDGs) - the proportion of the people living in poverty, maternal and child mortality rates, and primary school enrolments. 

The HDI is a widely accepted measure of a country‘s progress in attaining satisfactory levels of education, health and income.  Fiji‘s ranking was 42nd in 1975 but dropped to 61st in 1997.  Its position further eroded in the late 1990s.  Based on the 2007/08 UNDP Human Development Index, Fiji currently is placed 92nd out of 177.  Samoa and Tonga — which had rankings similar to those of Fiji in the 1970s — have performed much better than Fiji in recent years, with rankings of 77th and 55th in 2007/08 respectively. 

The MDGs and their associated targets and indicators, which were endorsed by 189 countries including Fiji at the 2000 Millennium Summit, provide a recognised set of indicators that can be used to judge the key elements of social progress. 23 of the 58 MDG indicators are included as Key Performance Indicators in the relevant chapters and links to MDG indicators are stated. The revised monitoring framework for MDGs is attached as Appendix 2. 

4.1.2Global Partnership for Development  

The purpose of any aid programme is to contribute to the improvements in the lives of the poor in the community. The aid effectiveness agenda, enshrined in the Paris Declaration of Aid Effectiveness (2005) and more recently through the Accra Agenda for Action (AAA) (2008), aims to improve the quality of delivery, management and use of official development assistance (ODA) in order to maximize its development impacts. 

The Paris Declaration on Aid Effectiveness represents a significant step towards formalizing and focusing international efforts to improve the effectiveness of aid and its contribution to development. 

Given the strong support of the above by Pacific Island Member Countries and Development Partners, the Pacific Islands Forum Secretariat (PIFS) was directed to develop a set of Pacific Principles for Aid Effectiveness. In April, 2008 Pacific Island Countries participated in a Regional Workshop in Nadi to consider progress in the implementation of the Pacific Aid Effectiveness Principles and in preparation for the Accra High Level Forum on Aid Effectiveness. 

Relating to the above, the Fiji Government recognizes the need for Global Partnership for Development, specifically relating to Goal 8 of the Millennium Development Goal. The Roadmap aligns donor programmes to its development initiatives. The Roadmap acknowledges the need for strengthening donor coordination and ensures its commitment to increase the effectiveness of aid through adhering to the principles of the Paris Declaration. 

Development assistance to Fiji is important and development partners continue to work with Government to improve the livelihoods of people in Fiji. However, aid donor grants are not large and represented around 1.3 % of Fiji‘s GDP in 2003. Donor grants fell in 2000, as most development assistance was withdrawn following the May 2000 crisis. Donor funds increased in 2001 and were restored to more normal levels in 2002. Estimates for 2004 and 2005 show that donor grants were more than doubled compared to 2002 as the Australian programme expanded and the EU programme was re-established. Loan finance is also available through the Asian Development Bank. 

Donor programmes are well-aligned to the areas covered by the MDG‘s. In the Education Sector, the Fiji Education Sector Programme (FESP) continues to assist the Ministry of Education with the provision of improved infrastructure and upgraded facilities. The total 5-6 year programme with a Non-State Actor component has been funded via a $45million grant from the European Union. Likewise, assistance to the Ministry of Education in terms of capacity support, relevant training and upgrade of tertiary qualifications will likely be the focus in the next 5 years for the second phase of the AusAID funded Fiji Education Sector Programme. Scholarships from NZAID and AusAID will continue to provide the thrust for higher learning for those seeking further education. The construction of the Japanese Government funded ICT Centre at the University of the South Pacific will see a state of the art learning environment conducive to delivering better ICT outcomes for not only Fiji citizens but the Pacific populace that study there as well. 

In the Health Sector, a second phase of the AusAID funded Fiji Health Sector Improvement Programme is envisaged to commence in 2010, possibly for the duration of another 5 or so years. This initiative will likely focus on strengthening the capacity of the Ministry of Health to provide an even more efficient and effective standard of service delivery to the citizens of Fiji. The NZAID Medical Treatment Scheme will continue to complement Government‘s own efforts to provide medical treatment abroad. The interventions of WHO and UNFPA in areas dealing with support for training, population-related initiatives, preventative programs and general health assistance should continue in the near future.   

Development Constraints and Challenges  

Whilst the level of Government-Donor engagement is relatively significant during the review period, the lack of proper framework to guide this engagement was an issue of concern. Donor coordination and enhanced partnership needs to be strengthened. To this end Government aims to improve its coordinating mechanisms, using proper guidelines and procedures whereby government and donors will work together to ensure that Government‘s priorities are addressed for sustainable development. Government is committed to increase the effectiveness of aid through adhering to the principles of the Paris Declaration and the Pacific Principles. 

4.1.3National Identity and Social Cohesion 

Fiji is a multi-racial, multi-cultural and pluralistic country with a multiplicity of languages, religions and ways of living. However, the country is a fragmented society because there is no unity amongst the two major ethnic group. Previous attempts were made to address racial differences and disunity by successive governments, NGOs and Civil Societies, but did not come to fruition. There is an absence of a National Identity. At present the citizens of Fiji identify themselves more strongly with their religions, ethnicity and by their various community or province than by nationality.  

Most of the i-Taukei lived in villages, grouped into districts and provinces and they had aligned themselves with Christianity because it brought civilisation into the country and was the first western religion to arrive in Fiji through the missionaries whereas Fijian Indians are mostly associated with Hinduism and Islam; and Fijian Chinese with Buddhism. Within each of the ethnic or religious groups, there exist various other sub-divisions, such as tikinas or districts, which embrace many villages. Districts have similarities and differences in terms of dialects, religious beliefs and culture. Different religions have different denominations, sects and sub religious groups. We as people of this country lack understanding and appreciation of each others socio-cultural uniqueness. This contributed to religious intolerance and religious sacrilege because people do not appreciate and respect others faiths and beliefs.  

These differences were usually taken by many of our political leaders to gain political mileage. During the past thirty eight years, political leadership played a key role in dividing rather than uniting our people. The division was derived from the colonial system of leadership of divide and rule. Our leaders have failed to unite our various communities in a form that truly reflects our diversity. 

Weak and poor leadership contributed to the building of a fractured and fragmented society. Leadership in the past had intentionally kept the people of Fiji apart, and had used the race card for their survival.  If Fiji‘s leaders and its people do not work together or join hands to define what we have in common and what we want to achieve together in the future we will never achieve the peaceful and prosperous society which we all aspire to.  

Development Constraints and Challenges 

The lack of social cohesion has contributed to exclusiveness and lower economic growth. One of the main challenges we face is how to unite people who comprise several ethnic communities with diverse social, economic and cultural backgrounds.  It is this diversity which requires a symbol that is acceptable for the whole population, as a basis for the development of national identity and creates firm allegiance.  This allegiance can be constructed, made concrete, communicated and maintained over time.  The process to negotiate a national identity is a continuous process which demands inclusiveness and the fair representation of people and cultures.  The end results ought to be a shared conviction that people are socialized into believing its essence, resulting in its internalization.   

A process needs to be designed and facilitated that can include the participation of all communities and leaders need to be focused on our nation rather than their sectional interests. We need to build Fiji into a non-racial, culturally-vibrant and united, well-governed, truly democratic nation that seeks progress, and prosperity through merit-based equality of opportunity, justice and peace. Establishing a national identity through a common name is of utmost importance with education, religion, and culture having important roles to play in our peaceful co-existence, social cohesion and nation building. 

4.1.4Poverty Reduction 

The growing incidence and the dynamics of poverty in Fiji have stratified and polarized Fijian society between the haves and the have-nots and between the educated and the uneducated. Poor parents beget poor children, creating a kind of dynasty of the poor. The resulting tensions and social conflicts have eroded the fabric that held the Fijian society together. 

Poverty reduction is the most difficult challenge facing Fiji and its people and the greatest obstacle to the pursuit of sustainable socio-economic growth. Reducing poverty has been a core policy objective of successive Governments for many years and has been regularly articulated in development plans and strategies and annual budgets.  Poverty reduction is a core objective of all development partners and the first MDG concerns the eradication of extreme poverty and hunger. 

On the basis of the 2002/03 Household Income Expenditure Survey (HIES) results, 34.4% of the population lived below the Basic Needs Poverty Line (BNPL), indicating a 5% increase from the 1990-91 HIES. Most of those in poverty are people living in rural areas, particularly those from the Fiji Indian community. The poverty gap is estimated to have been $2,616.64 per year for an average household. The gap is the difference between the national poverty line (estimated at $8062.6 in 2002), and the average income of a poor household ($5,445.96 per year). This indicates the depth of poverty. Fiji remains a society with deep income inequalities.  The 2002-03 HIES shows that the poorest 20% of households received 5.9% of the national income while the top 20% of households received 47.9% of the national income. Results of the 2008-09 HIES will be available by the end of 2009.  

Further, the estimated basic needs poverty line (BNPL) per household per week increased from $28.45 in 1977 to $83 in 1990 and to $132 in 2002.  Statistics collected from various HIES indicate the existence of high levels of poverty in Fiji although the non-availability of consistent data on poverty has resulted in various viewpoints on the actual levels of poverty in Fiji.  There is clear evidence of a worsening of the poverty situation (35% by 2002) and there has been no evidence of any significant improvement in more recent years. 

Poverty has many dimensions, one of which is the extent to which people have sufficient food. In the MDGs, this issue is measured by the prevalence of under-weight children, and the proportion of the population who are receiving less than the minimum level of dietary intake. The most recent national figures were collected by the 2004 Fiji National Food and Nutrition Survey. The survey found a low incidence of child malnutrition. At a national level, the incidence of under-weight children less than 5 years of age in Fiji was 15% in 1980, 10.5% in 1993, and 7% in 2004.  

Coordination and monitoring of all poverty targeted programmes is essential. The Poverty Monitoring Unit needs to be strengthened to implement the National Integrated Poverty Eradication Programme Framework. Government remains committed to funding ongoing poverty targeted programmes such as assistance for housing and squatter upgrading, microfinance, education assistance and family assistance. This is evident in the increase of the minimum monthly Family Assistance allowance of $30 to $60. Rural livelihood development projects, including the Rural and Outer Island Development Project and the Northern Development Programme will supplement existing government initiatives towards poverty alleviation. 

Mainstreaming issues facing people living with disabilities is a great challenge but also a crucial component of poverty reduction. Through the Department of Social Welfare and the Fiji National Council for Disabled Persons, the Government adopted the Fiji National Disability Policy in November 2008. Identified outputs of the policy will enable the advancement of programmes, development of strategies and identification of activities to improve and progress the status and well being of people living with disabilities. The first ever national count of people living with disabilities has been completed and more than 10,000 have been recorded to live with some form of disability, mental, physical or both. The results of the  count will enable the development of focused programmes and targeted interventionto be designed to reduce the vulnerability of people  with disabilities.   

Development Constraints and Challenges  

National income redistribution is the main cause of poverty in Fiji. Low economic growth is compounded by the instability of land tenure, which affects a range of activities in the economy.  

The key issues inhibiting poverty reduction include; a lack of political commitment; political instability (weak governance); lack of access to economic assets, markets and social services; ineffective coordination, implementation, and monitoring; lack of participation by all stakeholders vis-à-vis Government, the private sector and civil society; absence of sustainability mechanisms in programmes and projects; and lack of involvement of beneficiaries in project design, implementation, monitoring, and evaluation. 

The creation of more sustainable, secure employment opportunities with better wages is the long-term mechanism for moving people out of poverty. However, at current levels of economic growth, there are restricted job opportunities and inadequate support for the poor to enable them to take greater advantage of existing opportunities. There is a need to provide an enabling environment and stimulate the active participation of the private sector, civil society organizations, communities, and development partners generating income earning opportunities. 

Widening income inequality is increasing poverty in Fiji. Economic growth has tended to benefit those  already better off, further worsening the rural- urban disparity. Fiscal policies over the past decades have not addressed income redistribution. An emerging challenge is the weakening of the traditional family support system, resulting in more people seeking welfare assistance, particularly the elderly.  

There is a need to empower all citizens through education. There are a large number of students dropping out early from school. With limited skills and knowledge to improve their livelihoods, early school leavers make up a large number of the unemployed and subsequently contribute to the rising tide of crime and violence.There are acute shortages of infrastructure and facilities at all levels.The education system emphasizes theoretical knowledge at the expense of technical, vocational, and entrepreneurial education. School curriculum need urgent review to make them relevant and practice oriented. There is a need to provide unhindered access to compulsory universal basic education to all citizens as a bridge to the future socioeconomic transformation and establish and maintain enhanced quality and standards through relevant, competency-based curriculum and effective quality control at all levels. 

One of the major drawbacks in monitoring poverty in Fiji has been the lack of appropriate, comprehensive and timely data and analysis on which to assess the actual level of poverty. Welfare services for the very poor or destitute are provided by several government agencies as well as by NGOs, but there are very few well-coordinated reporting systems. 

The area of disability has, over the years, endured considerable development constraints like financial assistance, human resources, technology and infrastructure and the lack of data and statistical information on all areas and forms of disability. 

Continuous challenges faced by people with disabilities and organisations include the mainstreaming of disability issues in all programs of Government and civil society organisations; strong collaboration between all partners on service delivery and program implementation; advocacy and awareness of concerns for the rights of people with disability; and the limited ambit of laws and regulations governing the area of disability. 

4.1.5Housing and Urban Development 

Fiji‘s housing crisis is real and pervasive. An indicator of this is that there are currently about 200 squatter/informal settlements comprising of about 100,000 people in the country. The majority of these people constitute the bulk of the 387,000 people earning less than $7,000 per year. Approximately 50,000 low to moderate income households  currently need decent, safe, affordable housing.  In seeking to meet these need, the production of mixed-income housing development that provides for broad income diversity in neighborhoods is deemed a desirable social and economic goal, however the form the actual design and implementation of this option takes is crucial. 

The continuous growth of urbanization in the Fiji economy and population indicate that strong demand for housing will continue. The provisional 2007 population census results show an increase in urban household by 18.4% with approximately 61,300 total increase in population. 51% of the population is urban and that the urban growth rate is 1.7% compared with the national growth rate of 0.7%.Approximately 90% of the increased population (55,266) is in the Western and Central Division. The Suva and Nausori Urban and Peri Urban area alone has an increase in population of approximately 32,300. This poses significant challenges in terms of planning, delivery and community development. 

The housing needs of the majority of people in Fiji are met by the private sector, however  with the expiry of land leases there is increasing number of people seeking housing. This is evident with the growing number of informal settlements and the growth of private rented housing sector. The level of private provision depends of course on significant Government support through: 

Capital investment in infrastructure; 

Planning and regulatory regimes which facilitate the efficient operation of the market; and 

Support to households under the fiscal and income support regimes. 

Enhancing the local government framework remains a key strategy for addressing housing, squatter settlement and other urban development needs. There is a need to create a more amiable relationship between national and local government authorities to allow for more effective national development programmes to be carried out in towns and cities. The completion of an independent review of the local government framework will provide the Government with options on how to improve the delivery of municipal services and accountability of local government authorities, which are currently under the control of Administrators appointed by Government. 

 Development Constraints and Challenges 

There are two important issues that need to be addressed for Fiji‘shousing sector. Firstly, that the key instruments to address the challenges for the future are in the areas of ―planning, urban design, infrastructural investment, land management and public service delivery‖. Secondly, that a greater quantity of housing must not be at the expense of quality development. 

The plan to encourage the use of land to improve rural situations eg through providing incentives for rural living to reduce urban migration is a necessary complementary initiative. Resource constraints has contributed to Governments being unable to provide enough land for people to prosper, build and own houses and ultimately form sustainable communities.  Sustainable housing programs should go hand in hand with income generating opportunities and accessibility to amenities.   

Currently, Fiji does not have an employment strategy.  Having an employment creation strategy, together with the availability of more land, could help in resolving both the unemployment situation in rural areas and urban migration. Key agencies involved with the management, acquisition and utilization of land in Fiji eg Lands Department and the NLTB need to rationalize and formulate a transparent, consistent process for acquiring land for housing development. Most of the informal settlers live on ‗vakavanua’8 land, given to them some 30 to 50 years ago to settle. There is a need for Native Land to be allowed the opportunity to be developed in a manner that would be beneficial for all stakeholders especially landowners. The lack of development capital has been identified as a major constraint.  To acquire quick returns, some landowners have resorted to issuing ‗vakavanua’ leases all around Fiji. 

8‗Vakavanua settlements‘ are informal settlements acquired through customary arrangement with the land owners and there is no legal basis for ownership or lease. 

There is a need for a more integrated, coordinated and holistic approach in the development of policy and the implementation of stakeholder programmes for housing in Fiji. This should include periodical review and ongoing dialogue among stakeholders on their perspectives on housing issues in Fiji and would necessarily include information sharing and partnerships in the delivery of low cost housing programmes.  Because the actions and authorities of multiple government and semi-government departments and agencies explicitly and implicitly affect housing, inter-agency communication and the sharing of resources would facilitate for delivering more affordable, accessible housing. 

It is important to encourage a multicultural and pluralistic society: multiculturalism is a part of sustainable communities.  Any housing development initiatives should look at allocating spaces for places of worship as well as recreation..  

4.1.6Social Justice  

Social justice is a fundamental aspect of the common good. It broadly consists of two elements: justice and charity. The goal of social justice is to ensure equality of dignity, especially those who, through no fault of their own, are disadvantaged and destitute. It is also to ensure that everyone has the basic right to a dignified life, enjoys equality of citizenship, and that no one lacks the basic necessities of life.  

The 1997 Constitution  provided the legal justification and framework for the enactment of the Social Justice Act 2001 and implementation of Affirmative Action Programmes in the areas of: (a) education and training; (b) land and housing; and (c) participation in commerce and in all levels and branches of service of the State. The social justice clauses under the 1997 Constitution will be retained under Fiji‘s new Constitution with further restrictions placed on when AAP can be utilized by future Governments that is consistent with the principle of equal opportunity before affirmative action and affirmative action only when there is a genuine need for it.  

Since the implementation of AAP under the Social Justice Act in 2001, Government has allocated almost $300 million for the various groups targeted in the 29 programmes. Each programme has specific goals and target beneficiaries, means of assistance, performance indicators and criteria for selecting members of the target group. The criteria for selection include race, gender, economic status, disability and physical location. Of these programmes, 17 benefit all communities, 10 benefit Fijians and Rotumans as a target group and 2 are specifically for Indians and minority communities.  

The broad issue for Fiji is the articulation of an acceptable legal, social and moral framework that is based on the pursuit of ―equal dignity‖ and which will guide the development and governance of Fiji in the future.  

Development Constraints and Challenges 

To be just in designing and implementing the Social Justice Act and the AAPs, it is important that reliable, highly accurate and updated information on poverty and disadvantaged communities is readily available. There is a need to design AAPs that are effective, transparent and meet the needs of the genuinely disadvantaged communities.  

To measure the successes or failures of the AAPs, indicators are needed for the four broad programme categories. Qualitative indicators would be much more helpful to gauge the progress achieved in these categories. It is difficult to conduct monitoring assessments if the specific indicators and objectives of the programmes are not tied to the broad categories under which each of them fall. Each programme has its own specific objectives and indicators for measuring its successes or failures, although most of them have no historical content to indicate where a certain programme started, its achievements so far, and suggestions for a review of the indicators. 

There is a need for an improved financial monitoring and tracking system that would allow for proper accounting of funds and be subject to audit by the Office of the Auditor General. It is not clear from the 2002-03, 2004 and 2005 annual reports how the funds had been spent, who were the recipients, and whether or not the funds were utilized for the purposes for which they were disbursed. Without a good financial monitoring and tracking system, which should be an integral part of the overall monitoring structure, programme funds would be open to abuse and misappropriation.   

4.1.7Education and Training 

Elementary, Primary and Secondary Education 

Access to basic education is a right of all Fijians. Education, up till secondary level, is well established in Fiji with ownership and management of schools being in partnership between State and community. 98 percent of schools are managed by civil society and non-government organizations while government provides teachers and sets curriculum. 

The role of education in building unity has been comprehensively discussed in the Fiji Education Commission (FIEC) report of 2000. Some of the recommendations have been implementedin the education system and some incorporated in Fiji‘s National Curriculum Framework. 

Fiji is on target with MDG 2 ―to achieve universal primary education‖. Fiji has attained near universal primary education, but primary school enrolment and net enrolment rates have decreased since 2000. There is concern about the growing number of drop-outs from primary school. The percentage of pupils starting Class 1 who reach Class 5 has increased from 88% in 2002 and 93% in 2006. Class 5 survival ratios stood at 95.2%, indicating that more effort needs to be made to keep students at primary school. The 2004/2005 Employment and Unemployment Survey revealed that 90% of the persons aged 5 to 14 were attending school, with the proportion a slightly higher 92% for Indo-Fijians compared to 89% for Fijians. Some 10% of this age group were not attending school with 8% for the Indo-Fijians and 11% i-Taukei. The gap widened at higher educational level, where 31% i-Taukei, 24% of Indo-Fijians and 15% for Rotumans of the 15-19 age group were found to be not at school, however an average of some 73% were at school. Though some parents cannot afford school costs, particularly in rural areas, these dropouts are of concern given the need to maximize the education potential of the workforce. 

The large number of students dropping out early from school is a critical problem since it is one of the major contributing factors to the growing incidence of poverty.  In turn, poverty impacts so adversely on the socio-economic development of this country.  With limited skills and knowledge to improve their livelihoods, early school leavers make up a large number of the unemployed and subsequently they contribute disproportionately to the rising tide of crime and violence occurring in most urban centres. 

There is a need to conduct community workshops on parental education to change the community‘s perceptions about education, improve parents‘ participation and support, reduce the ‗dropout‘ rate and improve students‘ academic achievements.  The establishment of a collaborative model of education in villages and communities is an essential element of this initiative and make available community scholarship funds through better utilization of resources. 

Tertiary Education  

Under the Roadmap the government recognizes the critical importance of tertiary institutions for developing high-quality human resources, especially in an increasingly technology-driven world economy. The government also recognizes the challenges facing these institutions, challenges that include inadequate funding and facilities, curriculum that are inadequate to meet the challenges of nation building, inadequate and inappropriate staffing (especially among the lecturers). 

Development Constraints and Challenges  

Although the country has achieved near universal primary education, the dropout rate at primary level will continue to be an area of concern, particularly for Fijian students. A high dropout rate, as already stated is also apparent from Form 6 to Form 7. Many students face difficulty in affording education.  

Ethnic differences are still a concern in terms of examination performance. Indigenous Fijian students lag behind other ethnic groups in major external examinations. Similar gaps are also evident between rural and urban schools. Priority spending in education is a major factor that could contribute to the differential in performance. The 2002/03 HIES showed that Indo-Fijian families spent some 116% more on average per child than Fijian families. 

Access to secondary education is increasing with net enrolments standing at 71% in 2000. Enrolments have been higher for girls (74%). There is concern however, that secondary students have difficulty in getting jobs. The 2002/03 HIES showed that most of the unemployed population (77.2%) had secondary education. 

The education system will need to consolidate efforts to build and support social cohesion in schools. More emphasis has been placed on examinable subjects, sports and other extra-curricular activities. A deeper understanding and acceptance of cultures and inbuilt values is critical to having and practicing an internalized sense of national identity, therefore more support is required to strengthen and embed values teaching in all schools in Fiji 

4.1.8Health 

Health continues to be a growing and increasingly complex field of competing priorities from all perspectives - from the individuals to governments, businesses, health professionals and the health services system. A healthy and productive population is a key for sustainable economic development. Despite consuming a major portion of governments budget (>3% of GDP and 9% of total budget), health care funding continues to be lower as compared to other countries in the region while Fiji‘s population tends to be increasing every year.  

Fiji‘s progress towards Millennium Development Goals (MDGs) such as reduction in child mortality, maternal mortality and HIV/AIDS, have not been achieving the impacts on the health of citizens which Government intends. Fiji‘s life expectancy for males and females is on a declining path (2007 population census). The performance against the three health MDGs is disappointing as compared to baseline data of 1990 and 2015 target. The current statistics show a slow progress in improving the infant and maternal mortality rates, immunization coverage and the prevalence of HIV/AIDS. 

The progress towards MDGs suggests that the substantial and increased input of resources by Government is not achieving the impacts on the health of citizens which Government intends. Increasing annual budget allocations in itself is healthy and positive but if it is still below a critical level of less than 5% of GDP (Fiji averages less than 3%), then may be it is not sufficient to adequately fund important interventions that would specifically address the MDG targets.  

In addition to the continuing incidence of communicable diseases, there is an increasing prevalence of Non Communicable Diseases (NCDs) such as diabetes and hypertension, due to lifestyle changes, poor diet, smoking, changing patterns of physical activity , continuing mulnutrition problems, particularly in school children and women. On disease conditions and status, NCD continues to be the major cause of morbidity and mortality. Controlling diabetes and cardiovascular disease remains a priority focus of the Ministry of Health (MOH).With the re-emergence of infectious diseases such as typhoid, which were thought to have been controlled, an extra burden will now be placed on the already incapacitated health system. This is termed the double burden of disease, where high rates of infectious disease and NCD co-exist. 

The ability of government to increase its health sector allocations is limited by slowed national economic growth, by a history of significant under-funding and by periodic austerity measures related to political events.  To increase revenues from the population of service users would represent a policy change to public sector provision and could, if not done well, have significant population health status ramifications.  The introduction of realistic user-charges could result in much of the population‘s inability to pay, a consequent reduced access to services and worsening health status indicators.  The potential for the general population to pay health insurance premiums is similarly limited, although some employers provide health insurance schemes on a co-payment basis with their staff. 

Improving public provision of information on the performance of the health system (such as waiting times for elective surgery, drug stock-outs, and selected morbidity and mortality indicators) will enhance advocacy, accountability and decision making in the health sector.  This has been lacking in Fiji‘s health sector with resource allocation being based on conventional budgeting system. Currently, systems for collecting and publicly reporting such information are lacking. It is important to establish a means of data collection methods that allows timely reporting of service activity for use to provide information to source/fund national projects and to optimize individual patient care. 

Poor allocation of resources is now leading Fiji‘s health sector into a debilitated state with increasing cost pressure leading to long term sustainability of its financing system. There is a need to reallocate resources in response to areas with greatest burden to the economy and the only possible way is for the need to have evidence to support effective decision making. As such, the importance of National Health Accounts (NHAs) is increasingly becoming important in management of resources and review of health policies. 

Development Constraints and Challenges 

Development constraints and challenges include: 

to improve efficiency and effectiveness of the use of resources in health service delivery; 

to respond to the increasing numbers of HIV/AIDS and STI cases; 

to reverse the deteriorating rates of child mortality, infant mortality and maternal mortality; 

to reduce the incidence of Non-Communicable and life-style diseases; 

the emigration of skilled health care professionals; 

limited capacity for policy analysis and research; 

improving physical and financial access to good-quality health services in depressed domestic and global economy; 

the increasing demand and cost for health care;  

the need to improve stewardship over policy formulation, health legislation, regulation, resource mobilization, coordination, monitoring, and evaluation; 

the need to strengthen the national health system and improve its management; 

the need to improve the availability and management of health resources (financial, human, infrastructure, and so forth); 

reducing the disease burden attributable to priority diseases and health problems, including hiv/aids, and reproductive health–related illnesses; 

increasing consumers‘ awareness of their health status and poor lifestyle; and  

to foster effective collaboration and partnership with all health actors, NGOs and CSOs. 

4.1.9Gender Equality and Women in Development 

The target for MDG 3 is to eliminate gender disparity in primary and secondary education preferably by 2005 and to all levels of education no later by 2015. School enrolment data published annually by the Ministry of Education and enrolment data provided by tertiary education institutes provide figures for the ratio of girls to boys. In 

Fiji, the sex ratio for primary in 2007 (0.92) is closely balanced and the enrolment figures reflect the overall population ratio (0.96) released by FIBOS in the 2007 Census. At secondary and tertiary education the ratio of girls to boys has reversed; 1.06 and 1.08 respectively. The gaps between girls and boys begin to widen with girls outnumbering boys as education level increases. These differences in ratio do not continue in the employment world. 

Women‘s composition in the labour force has dropped from 40% in the 1996 Census to 31% in the 2004/05 EUS.  Although women are 31% of those the FIBOS describes as ―economically active‖, 54% of all working females are unpaid household workers. The 2004/05 EUS revealed that the number of females who were self employed increased  from 13% in 1996 to 25% in 2005. Governments over the years have failed to commit to creating an enabling environment, to enable women to participate fully in the socio-economic development of the country.  

Table 4.1: Comparison of men and women employed in the Econom 

Females are a half (49%) of all the ―workers‖ in society but under-represented in the workforce (table 4.1). Except for the lowly paid Family and Community Workers, females in income-earning categories are now all much lower than that for Males: Wage Earners (18% v 47%), Salary Earners (8% v 13%) and Self-Employed (10% v 30%).  

However, looking at females by age group 53% between 20 to 29 years of age are Salary Earners and 29% are Wage Earners (much better than the older groups). They have moved out of Self-Employed and Family Workers (table 4.2). However, there is a need to focus attention for participation of women in older age groups 

   Table 4.2: Females as Percentage of Age Group

Although recent indicators show little difference in the educational levels and achievements of men and women, and despite Government's commitments to gender equality, occupational discrimination and gender segregation are strong and persistent. As compared to 1982 Economically Active Females increased by 55% between 1982 (20%) and 2004 (31%), compared to 35% increase for Males, although this proportion is still considered low.While the number of households increased by more than a third, total number doing full-time household work and female household workers declined by 5%. There is a little change in males becoming household workers. Females should be encouraged to become part of the ―Economically Active‖ persons in Fiji, moving out of full-time household work into income earning work for the household. 

Studies from the 2004/05 EUS indicate that female representation in senior management and professional occupations has increased. For instance, female technicians and associate professionals increased from 28% in 1996 to 33% in 2005. However, few women own businesses, because the inheritance laws practised by both major ethnic groups in Fiji usually exclude women from inheriting land or other fixed assets. 

Women predominate among workers in the shrinking manufacturing sector.  Labour costs in Fiji are interestingly competitive, but imported raw materials added to the cost of production, makes the country's products less competitive without subsidies or special terms for market entry.  Women process workers cannot sustain their livelihood with low wages. 

Women's higher risk of poverty and destitution is associated with labor force discrimination, increasing divorce and separation rates and problems in collecting maintenance payments from a departed spouse.  Women constitute the majority of beneficiaries under the Social Welfare Department's Family Assistance Scheme.  Female unemployment increased slightly from 7.8% in 1996 to 8.7% in 2005, perhaps as a result of loss of jobs in the garment and other industries. 

Economically Active Females work some 14 hours more per week, or 31% more on average than Economically Active Males in all categories. This is a gender gap that must be addressed if females are to have the opportunity to develop themselves professionally, and enjoy leisure as men do. This requires Men- all categories- to do their fair share of household work.  

These facts indicate the need for effective social safety nets for the unemployed particularly, training and investment to promote alternative livelihoods for women displaced from the manufacturing sector.  New models are necessary to provide women with micro finance for self employment. 

In accordance with MDG 5 for improved maternal health it is important that Government reviews its efforts to promote rural family programme.  The fertility rate of 4:4 among rural Fijian women suggests the need for renewed efforts. 

In 2004 for the first time, more women among new cases were confirmed HIV positive than men.  Experts consider that Fiji may be moving towards an AIDS epidemic. A strong emphasis on gender issues is needed to reduce HIV transmission, in keeping with MDG 6. 

Development Constraints and Challenges 

Development constraints and challenges include: 

implementation and monitoring of sectoral programmes, government policies and administrative practices and procedures have incorporated gender perspectives; 

implementation and monitoring of the EEO policy in all workplaces, presence of occupational discrimination and gender segregation in labor markets; 

monitoring the compliance of laws and administrative practices and procedures to CEDAW Articles; 

maintaining effective social safety nets for the employed in particular training and investment to promote alternative livelihoods for women displaced from the manufacturing sector; 

promoting rural women's advancement in economic activities without destroying sustainability of women's fisheries and, therefore, household food security; 

continuing social impact analysis of trade agreements on impact on women's health of imported, low quality foods; 

increasing incidence of domestic violence; 

decreasing fertility of women especially rural Fijian women; 

spreading of HIV/AIDS as an epidemic; and 

collection and analysis of gender-sensitive data. 

4.1.10  Children and Youth 

Fiji‘s future prosperity depends on nurturing and developing children who are well prepared to take their place in tomorrow‘s society. The Plan‘s strategy, therefore, seeks to implement basic education requirements to increase school enrolment and provide better schools and better-trained teachers. However, there are many factors, apart from education, that affect the development of a child and include issues such as unemployment, financial constraints, family problems, teenage pregnancy and sexual and reproductive health, child labour and prostitution.  

Programmes to support children and youth directly support the Strategic Priorities of implementing affirmative action, reducing crime and alleviating poverty. In the long term, the development of children and youths as good citizens for Fiji‘s future is the cornerstone of national development and supports all the priorities. 

Joblessness has resulted in the rising incidence of social ills amongst young people. Policies will target youth empowerment and development in order to reverse the negative consequences associated with the past pattern of development. 

There has been some improvements in the management of child abuse, but there is still urgent need for legal reform to impose severer penalties on offenders, to make the collection of evidence easier, offer additional protection to the survivor of abuse through the legislative process, provide specialized counseling services to children and their families, and to organize community awareness programmes to help change attitudes and stigma associated with child abuse. 

        The Ministry of Social Welfare, Women & Poverty Alleviation has developed, along with six other ministries/departments the Resources and Results-based Framework (RRF) 2008-2012 which has identified three major outcomes in child protection. Out of the RRF, the Fiji 2009 Annual Work Plan (AWP) for Child Protection based on the 2008 AWP was signed by the National Coordinating Committee on Children (NCCC) in April 2009. The 2009 AWP outlines activities that will be undertaken by the Government of Fiji, with support from UNICEF, in progressing towards the achievements of the expected outputs/outcomes (results) as stated in the Resource and Results-based Framework (RRF).  

The NCCC was established following Fiji‘s ratification of the United Nations Convention of the Rights of the Child (CRC) in August 1993. The NCCC , a Cabinet sub- Committee has members which includes the Permanent Secretaries for: Ministry of Social Welfare, Women & Poverty Alleviation; Ministry of Justice, Electoral Reform & Anti Corruption; Ministry for Education, National Heritage, Culture & Arts, Youth & Sports; Ministry of Indigenous Affairs; Ministry for Defense, National Security, Disaster Management & Immigration; and Ministry for Provincial Development & Multi Ethnic Affairs, and NGOs that provide services that target children.. 

The National Youth Service Scheme (NYSS) was implemented in 2008 with a budget allocation of $1 million. The NYSS targets clients of around 2000 individuals per annum and in 2008, a total of 5955 clients were registered, an indication of the high demand for youth employment opportunities. A total of 563 employments were created from 120 employer‘s nation wide as work attachment, volunteers and full time paid employees. For 2009, a total of 1000 clients have been enrolled.   

Development Constraints and Challenges 

Development constraints and challenges include: 

discrimination of children with disabilities;  

insufficient funding for all the implementing agencies and development projects; 

coordination of implementation of programmes across sectors; 

achieving the identified outputs of the Annual Work Programme for Child Protection; 

establishing a monitoring and evaluation process of the Resource and Results-based Framework to progressively examine the status of Children‘s Welfare; and 

prioritizing legislative review and reform for the care and protection of  children. 

4.1.11Sports Development 

Sport contributes to the overall development of a country and it is a worthwhile investment strategy in improving the socio-economic benefit to any nation. It promotes nation building and community development by bonding people to work together. It moulds better citizens through the inculcation of values such as tolerance, goodwill, understanding, teamwork and promotes active and healthy lifestyles.  

A nation‘s investments in sports will give rise to benefits in: 

promotion of national identity and national pride; 

community development and integration; 

crime prevention; 

good health and healthy lifestyles; 

higher domestic productivity and greater national productivity; 

higher education; and 

economic benefits. 

Sport, therefore, plays a very powerful role in our society and individual lives. As such, it is important that the people of Fiji, supported by Government, strive to identify and develop strategies and policies which will encourage and sustain for its long term growth. Sports can create viable employment opportunities and generate internal revenue through many aspects of the sports industry if it is systematically allowed to develop properly. It provides attractive platforms to major local and international companies to sponsor their products and services.  Incentives need to be provided to the private sector to encourage them to sponsor sporting organisations‘ programmes and activities. Advertising, radio and television rights, product endorsements and promotions, sports tourism and remittances are some areas that can be the initial targets of sports development before progressing into clothing, footwear and other accessories manufacturing.  

Very few sports in Fiji have achieved such progress in past few years while the majority of them are actually struggling to survive and progress. The only major setback for most of the 40 sports organizations is the lack of financial resources that they need to facilitate their development programmes. Most sports need Development Officers to administer the sports and initiate development programmes as these are still been looked after by volunteers who have fulltime work and only attend to their sports tasks in their spare time. Getting the sporting organizations to be operating professionally and effectively will boost their chances of securing sponsorships which should enable them to move into the next level of development. There is also the need to put in place proper talent identification networks at the grass root levels for all sports and a well structured institution to nurture and systematically develop the athletes/players to reach maximum potentials. 

The current development programmes looked after by the Government through the Department of Youth and Sports are: 

disbursement of four sports grants to National Sports Organisations; 

disbursement of special funding for regional and international competitions; 

rural sports field development; 

sports outreach programme; and 

basic sports gear assistance programme. 

Development Constraints and Challenges 

Some constraints that hinder the development of sports are: 

lack of standard sports grounds and other basic facilities in rural areas; 

low sports funding and the need to entice more business sponsorships for sports; 

involvement of volunteers in sports administrations and the need to have paid development officers; 

establishment of a high level sports institution to further develop new talents systematically; 

development of international standard sports grounds to accommodate international competitions like Super 14 Rugby or FIFA soccer matches; 

proper structured sports syllables in tertiary institutions to include sports specific subjects like sports marketing, sports administration, sports management, sports psychology, sports science, sports medicine, etc; and  

the need for a sports regulatory body to regulate and control all matters relating to sports. 

4.1.12Environmental Sustainability 

―Ensuring environmental sustainability‖ is the seventh MDG, which provides a framework for integrating the principles of Sustainable Development into national policies, with the focus on ensuring availability of safe drinking water, improving sanitation, and reducing other social ills such as poverty and unemployment. 

The Environmental Management Act (EMA) 2005 provides the legislative framework for the sustainable development of land and water resource management. However, there have been a number of constraints in implementing the EMA such as inadequate resourcing of the Department of Environment, outdated subsequent legislations and regulations, the absence of accredited laboratories, and poor coordination among agencies.  

Achieving sustainable development, while overcoming environmental challenges such as deforestation, land degradation, logging of watersheds, over-exploitation of terrestrial and aquatic biological resources, improper waste management and pollution control, impact 

of climate change, and the attitude of people in terms of the unsustainable use of their resources, is a central challenge of this plan.  

The improper disposal and treatment of solid waste is one of the gravest environmental problems faced in Fiji. The problem is most acute in fast growing urban centres and other highly populated areas and is beginning to be a major concern for the tourism industry. This concern led to the organization of annual Clean Up Fiji Campaigns, which has run for 13years and is well supported by the business community. 

The generation of waste for disposal has been steadily increasing and is likely to continue to increase with the growth of urban centers and an increasing middle class population which is driving the rise in demand for imported goods. The composition of waste has also changed and now non-biodegradables account for a greater proportion of waste. 

Waste on land are catered for by rubbish dumps, with the first landfill established in Naboro in 2003/2004 to cater for waste from Navua, Lami and the greater Suva areas. The Naboro Landfill was designed to offer 40-50years of clean, safe and sanitary waste disposal and all waste coming into this site was to be assessed for its suitability for disposal, and special treatment administered to it wherever necessary. The operation of the facility was also designed to allow for revenue generation to assist in the running of the landfill. Approximately 60,000 tons of waste is dumped at the landfill annually. Implementation of the National Solid Waste Management Strategy 2008– 2010, launched in June 2008, needs to be prioritized. A key component of the Strategy is a public awareness campaign and creating partnerships amongst all stakeholders including municipal councils, the business sector and the community at large. 

Fiji‘s economy and its people, like other small island states, are also susceptible to the impacts of climate change. Since ratifying the UN Framework Convention on Climate Change (UNFCCC), policies adopted by Government in successive Development Plans have recognized the critical importance of managing the environment and natural resources, to ensure social and economic prosperity in the present and for the future. The implementation of these policies, however, has not been adequately supported with the required budget. As a developing nation with scarce resources and competing priorities and obligations, the Government has preferred to rely predominantly on foreign aid and assistance to finance ‗environment‘ projects. 

Climate change is beginning to have substantial and widespread impacts on Fiji, affecting sectors as varied as health, coastal infrastructure, water resources, agriculture, forestry and fisheries. As a predominantly agricultural based economy, the impact is being felt more by the rural populace who depend on the agriculture sector for their livelihood. The increasing incidence and intensity of droughts, cyclones and flooding is taking its toll on the economy and the lives of ordinary citizens. 

The sea-level rise is leading to coastal erosion. With the majority of villages and settlements in Viti Levu located along the coast, there is a noticeable infiltration of the sea into the village compound during high tide. The increase in the frequency and 

intensity of tropical cyclones over the past decade is fueling coastal inundation and erosion. Intensive urban development along the coast, as well as deforestation of catchments has also contributed to exposing large coastal areas to flooding and erosion. 

Continuous coastal erosion is also taking its toll on inshore fisheries on which the villages rely for food. The drop in the size of the catch is attributed to the build up in sedimentation. Coastal populations and their assets are exposed to higher vulnerability to extreme events such as storm surges, tsunamis, and high tides. The erosion of coastal areas is also now slowly leading to the movement of villages away from low lying areas. 

The most recent flooding occurred in late December 2008 and early January 2009. Experts conceded that these floods were the worst in Fiji‘s recorded history with 11 lives lost, and a conservative estimate of F$76million9 worth of damages to public assets and agriculture. Damage to crops and loss of livestock from the recent flooding in late December 2008/early January 2009 was estimated at F$40million. Around half of these losses are attributed to the sugar industry, the backbone of the agriculture sector and the economy. The aftermath of floods increases the risks of exposure to water borne diseases, leptospirosis, and contamination of water sources. The floods directly affected about 150,000 people, almost a fifth of Fiji‘s population. While tropical cyclones are expected at this period, what has been noted is the increasing intensity of these natural hazards, particularly over the past decade. 

9Losses to private businesses and emergency relief and ration costs are not included in the $76m. 

10 Comprehensive Hazard And Risk Management 

To manage the impacts on the community, more concerted effort is being put into improving land use practices through a National Rural Land Use Policy, improving management of watersheds, and mainstreaming the CHARM10 concept into development planning.  

A critical tool in the fight against Climate Change is the Kyoto Protocol. The Kyoto Protocol is an international agreement linked to the UNFCCC. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European Community for reducing greenhouse gas emissions. These amounts to an average of 5% against 1990 levels over the five-year period 2008-2012. The major distinction between the Protocol and the UNFCCC is that while the Convention encouraged industrialized countries to stabilize GHG emissions, the Protocol commits them to do so.  

One of the 3 mechanisms open to industrialized countries to meet their commitments under the Protocol is called Clean Development Mechanism (CDM). The CDM, defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.  

A CDM project activity might involve, for example, a rural electrification project using solar panels or the installation of more energy-efficient boilers. The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction or limitation targets. Fiji has so far registered two CDM projects through the FEA – the Wainikasou and Vaturu Hydropower Plants. More technical work is required to identify other opportunities, particularly in the area of renewable energy.  

Development Constraints and Challenges  

Development constraints and challenges include: 

adequate resourcing of Department of Environment to carry out mandated functions under the EMA; 

lack of capacity among Government agencies to enforce relevant legislations such as the Land Conservation and Improvement Act, National Code of Logging Practice, etc; 

addressing ‗environment‘ issues along sectoral lines is difficult and conflicts sometimes arise as ministries get protective when they perceive other agencies encroaching on areas they consider their sole jurisdiction; 

lack of coordination between agencies and the current situation where the Department of Environment is reliant on other agencies to implement mitigation and adaptation measures. The Department can provide advice on mitigation and adaptation measures but has no authority to dictate what is to be implemented; 

lack of capacity within Government (including the Department of Environment) to fully appreciate the fundamental issues of climate change and their widespread impacts across the whole economy; 

lack of capacity also constrains the ability of Government to draw out relevant statistics and data to fully understand the evolution of Fiji‘s climate and biodiversity. This lack of capacity translates into a lack of confidence by Government to commit resources for such research work given the uncertainty on the applicability and usage of the research data and outcome. Hence, the reliance on foreign aid to fund such projects; 

lack of information, education and awareness on impacts of climate change in rural and outer islands – for instance the ordinary villager is not aware that changes affecting his everyday living (such as fishing, tending his crops etc) are a result of the impact of activities of industrialized countries on the global climate; and  

poor and sluggish economic performance over the past decade, coupled with political turmoil and uncertainty means a lot more emphasis is placed on economic recovery and very little attention is paid to environmental concerns.  

4.1.13Culture and Heritage 

Fiji is a multi-racial, multi-cultural country with a multiplicity of languages, religions and ways of living and the recognition and acceptance of these cultures create harmony and unity amongst all races. Culture refers to the diverse manifestation of human intellectual 

and artistic creativity that is both culture and heritage and is the living form of cultural expression. Integral to the development of the nation is the conservation, development and promotion of the indigenous identity. 

There has been growing concern from Government regarding cultural revitalization. This is reflected through continued government support towards cultural heritage activities such as heritage site management, artistic promotion activities, developing creative industries, preservation and protection of artifacts and archaeological documentation, safeguarding and promotion of language. Historic conservation and cultural activities maintain the distinct character of communities. Cultural and natural heritage sites and traditional arts should be conserved and protected. Tourism, as the fastest growing industry in the world, relies to a large extent on cultural heritage for its sustainability. Due emphasis should be placed towards the listing of Fiji‘s cultural and natural heritage sites in the world heritage listing and the establishment of proper heritage management system and  the necessary infrastructure to ensure benefits flow to the local economy and the sustainability of tourism based activities. 

Culture has the potential to address the problems of unemployment, poverty and crime, faced by our youth today. The challenge is to develop and engage in both formal education curricula and non-formal activities for young people to provide a catalyst and an opportunity for this in instilling a sense of values and cultural identity. The association between gender, culture and environment needs consideration. The challenge is to develop an agenda that recognizes women as significant actors in development and as bearers and signifiers of their living cultural heritage who conserve and manage the biological diversity of the landscape. 

Development Constraints and Challenges 

Development constraints and challenges include: 

strengthened partnership with resource owners; 

financial support; and HRD support for the sector; and  

unsustainable tourism, mining, and forestry developments. 

4.1.14Disaster Risk Reduction and Disaster Management  

Fiji is located in one of the most vulnerable and highly at risk location to disasters in the world. About one or two cyclones hits the country every year and floods and flash floods because of climate change has become a common occurrence. Over the last decade, damage caused by tropical cyclones alone has been estimated at more than $500 million and more than 100 lives have been lost. Tropical Cyclone Ami, which struck the Northern and Eastern Divisions in 2003, caused social and economic losses of more than $100 million, whilst the floods in April 2004 caused damages estimated at more than $30 million.  

A risk management approach underpins Government efforts in disaster risk reduction, with a strong emphasis on greater community resilience and self-reliance. The integration 

of risk management into the development planning decision-making and budgetary processes using the Comprehensive Hazard and Risk Management (CHARM) approach will make a significant contribution towards disaster and risk reduction. Essentially this will place strong emphasis in the analysis and evaluation of hazards, vulnerabilities and elements at risk and ensuring that adequate measures are taken to lessen the risks and the vulnerabilities in all these development processes. However, the heavy dependence on Government handouts after recent disasters, coupled with high rehabilitation costs, has disrupted planned capital expenditure programmes. To address this problem, Government established a National Disaster Relief and Rehabilitation Fund, with a $2.6 million budget in 2004. The 2007 revised budget increased this provision to $8 million. A National Disaster Committee was established in the Prime Minister‘s Office, to oversee the new National Disaster Relief and Rehabilitation Fund and to assist the NDMO to deal with disasters. 

The reviews of the Natural Disaster Management Act 1998 and the 1995 National Disaster Management Plan have been completed and the recommended changes are in draft awaiting the Attorney General Office‘s sanction and Cabinet approval. The principal recommendations are to include human caused hazards including technological hazards in the Act and Plan and to institute qualitative improvements in legislation, regulations, organization, operating procedures, training and readiness. The reviews stressed that an effective crisis and emergency management system under national leadership is essential. The system would adequately facilitate all aspects of Disaster Management which has both Disaster Risk Reduction and Disaster Management. The focus on community capacity building is promoting self reliance, reducing dependency and to achieving community resilience and sustainable development. 

Work has commenced on the development of a National Action Plan to adopt the Regional Framework. 

Partnership with SOPAC under EU funding resulted in the development of the Navua Flood Early Warning System which has been operational since October 2007. Similar work is scheduled for Nadi and Ba rivers under French funding and the upgrading of the Rewa river system. An additional 9 HF Radios were purchased through AusAID funding and were installed between 2007 and early 2008. The radios would enhance communication and operational capacity of Emergency Operational Centres and management of overall disaster management operations. 

Development Constraints and Challenges 

There is a need to fast track development of Response Plans and Early Warning Systems for floods, earthquakes and tsunamis, at all levels in order to provide the people with reasonable safety measures to be able to deal with these events confidently and to facilitate a more  responsive and timely Government intervention. 

The development of an all hazard, integrated, people focused early warning system. 

Mainstreaming disaster risk reduction into other sectoral development plans, policies and programmes is crucial for sustainable development and community resilience. 

The Fiji Red Cross works closely with the divisional commissioners and provincial administrators/district officers and provides invaluable support during emergency relief operations. There is a need to continue to strengthen relationships with Disaster Management partners, including the Red Cross, civil society, as well as the FRANZ group, the EU, ADB, World Bank, UNDP, NZAID, AusAID and SOPAC. We need to actively engage the community in all aspects of disaster risk management. 

4.1.15Rural and Outer Island Development 

The rural areas of Viti Levu, and outer islands, including Vanua Levu, have remained relatively undeveloped with poor livelihood opportunities due to isolation and lack of access to services and markets. Their relative isolation excludes them from the mainstream of Fiji‘s economic and social development, resulting in large movements of people, especially those entering the economically active years, seeking opportunities in urban areas.  

The proportion of the population living in rural areas has been decreasing from 62% in 1986, to 53% in 1996, to 49%, according to the 2007 Census Report. Urban development measures are necessary to relieve the problems created by the mass relocation of people to the urban centers such as squatter settlements, but the underlying problem is the uneven distribution of opportunities between the rural and urban areas. 

This requires a holistic approach through the provision of basic infrastructure, improve mobility and market access through regular and reliable shipping services, and complementary livelihood activities. Government infrastructure spending on the transport sector has traditionally been focused on land transport, with only about 1.4% spent annually on sea and shipping related activities. Expenditure on shipping is limited to maintenance with most of this small budget shared between Suva, Lautoka, Savusavu and Levuka – the international ports of entry – rather than to develop inter-island shipping.  

The outer islands do not have substantial markets on their own, the main market for most products being Suva or Viti Levu. However the only means to access this market is by sea, leading to un-satisfied demands and needs for better shipping services and maritime infrastructure. A review of the Shipping Franchise Scheme is planned with Government keen to improve services to the outer islands, in particular, finding a workable solution to service ‗uneconomical‘ routes.  

Massive infrastructure work is planned for Vanua Levu, such as the upgrading of Savusavu port and upgrading of major connecting highways. To complement these commitments, Government has declared Vanua Levu, Rotuma, Kadavu, Taveuni, Lomaiviti, Kioa, Rabi and Lau as tax free regions effective from 1st January 2009. The incentives for companies that set up in these regions have been offered to encourage 

investment, support development, create employment and improve livelihood opportunities in the Northern Division  and Maritime areas. 

With the aim of improving the delivery of services to rural areas, a new streamlined divisional development structure, involving the establishment of Divisional Development Boards (DDB), will also being put in place. The new structure should enable better coordination of Government‘s development programmes and improve implementation of projects in the various divisions. The DDBs will be at the forefront of revitalizing economic activity in the rural and outer islands and facilitate the coordination of development efforts of Government at the divisional level. 

The livelihood activities currently funded by Government through the annual budget, such as the Northern Division Programme (NDP), would reap greater rewards through such a holistic approach.  

Since its launch in November 2007 to the end of 2008, the NDP project office received a total of 1322 applications, valued at over $5.1million. At the end of 2008, 996 applications had been processed with the remaining 326 being processed in the first quarter of 2009. From the 996 applications processed, 916 have been assessed and approved for grants to the value of $2.34million. However, only 361 (or 39.4%) received funding in 2008 valued at $1.08million. The majority of these recipients, 226 (or 63%), sought counterpart funding (or debt equity) from FDB, 51 (or 14%) from Micro Finance Co-op Labasa, 35 (or 10%) from Micro Finance Labasa, 15 (or 4%) from Commercial Banks, and 34 (or 9%) from Sugar Cane Growers Fund. These other lenders disbursed approximately $1.125million. 

In 2008 the majority of these projects (82%) were classified as micro projects, with annual turnover less that $30,000. Agriculture projects, particularly dalo and yaqona farming, were the main recipients of the equity grants. Other projects include the purchase of bullocks (working animals) for cane farmers, outboard engines and fiberglass boats for fishermen, and breeding animals for livestock farmers (piggery, poultry, goats, beef).  

Development Constraints and Challenges 

The major development challenges for rural development are: 

lack of basic infrastructure such as roads, ports and jetties, access to electricity and telecommunication, reliable water supply; 

lack of mobility and access to markets due to irregular shipping services; 

lack of coordination of development initiatives of Government and donors;  

lack of participation of community in identifying and prioritizing development needs; and 

reduction in the economically active population present in rural areas and outer islands. 

4.2Policy Objectives, Strategies and Key Performance Indicators 

4.2.1Building National Identity and Social Cohesion 

4.2.2Poverty Alleviation 

4.2.3Housing and Urban Development 

4.2.4Social Justice 

4.2.5Education and Training 

4.2.6Health 

4.2.7Gender Equality and Women Development 

4.2.8Children and Youth 

4.2.9Sports Development 

4.2.10Environmental Sustainability 

4.2.11Culture and Heritage 

4.2.12Disaster Risk Reduction and Disaster Management 

4.2.13Rural and Outer Islands Development 

CHAPTER 5

Chapter 5Implementation and Monitoring Mechanism  

It is recognized that the successful implementation of the Roadmap to Democratic and Sustainable Socio Economic Development (RDSSED) will require effective leadership, coordination, commitment, the necessary resources and continuous capacity building.  Therefore, it is imperative that the necessary institutional arrangement is in place to ensure effective implementation of the Roadmap.   

5.1The Implementation Framework 

All stakeholders and implementing agencies including Ministries and Departments will ensure that all key initiatives and major outputs are achieved within the timeframe. The framework to ensure a systematic and coherent approach to implementation is illustrated in Figure 5.1 and will consist of the following phases: 

(i) Roadmap - based on the Strategic Framework for Change which will outline the outputs and respective strategies and programmes to achieve the outcomes in the Strategic Framework. 

(ii) Action Plans - based on the Roadmap, ministries and departments will develop Action Plans which will be basis for the formulation of their Annual Corporate Plans. 

(iii) Nationwide Effort - all stakeholders including ministries and departments must contribute positively to the implementation programme. 

(v)Implementation and Monitoring - a monitoring and reporting framework will be developed to ensure systemic and effective implementation. 

Figure 5.1: The Implementation Framework 

5.2The Monitoring Mechanism 

The monitoring mechanism will involve the National Peoples Charter Council (NPCC), eleven sub-committees, a secretariat, Ministries and Departments, private sector and civil society.  The entities involved in the mechanism and their reporting relationship is illustrated in Figure 5.2. 

5.2.1Composition and Functions of the NPCC 

The members of the NPCC will be inclusive and representative of the people of Fiji.  Therefore, members shall be drawn from the Government of the day, members of Parliament, recognised private sector organisations, the Great Council of Chiefs, Non Government Organisations, religious organisations, provincial councils, advisory councils and other community-based organisations. 

Whereas the implementation and monitoring mechanisms of successive previous Governments have focused largely on passively reviewing implementation performance, this will need adjustment and updating as circumstances change over time.  In light of this necessity and the need for greater public inclusiveness, dialogue and participation, the NPCC,  shall be actively engaged in performing the role of facilitator, setting and shaping the ongoing agenda for change.  

The NPCC will monitor the Roadmap outputs and their respective Key Performance Indicators (KPIs), as contained in the attached Implementation and Monitoring Matrix.  The NPCC, and sub-committees will not limit themselves to assessing progress against the KPIs: an important function of the sub-committees will be to assess the continuing relevance of outcomes and KPIs and the quality of information they are providing so that the adequacy of all KPIs is kept under review. 

The functions of the NPCC, shall include: 

monitor Roadmap implementation focusing on the outputs and key performance indicators; 

provide forums for consultation and dialogue for consensus building on national development issues;  

carry out civic education on governance issues, national identity and other issues considered relevant and important;  

evaluate and review performance of implementing agencies;  

review of the Roadmap when necessary for the purpose of updating and adjustment; and  

provide policy advice and support to the Prime Minister and Cabinet on issues pertaining to the Roadmap.  

Sub-Committees 

To support the work of the NPCC, eleven sub committees will be established to coordinate the work relevant to their respective sectors based on their Terms-of-Reference.  The sub-committees will comprise representatives from Government, the private sector and civil society.  To facilitate implementation, the sub-committees will meet on a quarterly basis during the year.  

The sub-committees will: 

set a broad agenda for the four meetings in the year in consultation with the Secretariat; 

with the assistance of the Secretariat, hold meetings in accordance with the forward programme.  The objective of the meetings will be to monitor progress made in the achievement of KPIs, identify constraints and corrective actions; and 

provide an oral report and recommendations to meetings of the NPCC. 

Secretariat 

A Secretariat will be established under the Ministry of National Planning to support the NPCC in its functions.  The secretariat needs to be professional and have a strong technical background to better support the NPCC. In light of the broad range and complexity of issues involved, the Secretariat must be adequately equipped with resources and expertise.  

The Secretariat will: 

determine, with the sub-committees‘ Chair, which Ministries and Departments, private sector and civil society sections have responsibilities relevant to the work of the sub-committees; 

determine from the Implementation and Monitoring Framework and annual corporate plans of relevant Ministries and Departments what progress should be expected, and what information available, in the forthcoming financial year; also assist the Chair to set a forward agenda; 

communicate the forward agenda to all members and Permanent Secretaries of relevant Ministries and Departments, private sector and civil society; 

maintain contact with relevant Ministries and Departments to determine the range of performance information available; 

set up an information and cooperation network with relevant Ministries and Departments, the private sector and civil society so that they can actively support the Secretariat role;  

set dates for meetings and inform members of sub-committees; ensure as far as possible that information relevant to the discussion is circulated beforehand; and where final published information is not available, obtain estimates or provisional data; and 

record the discussions to form a basis for the Chair‘s oral report to the NPCC. 

Permanent Secretaries of Ministries and Departments 

Permanent Secretaries will contribute to the implementation and monitoring of the Roadmap to Democratic and Sustainable Socio Economic Development (RDSSED) by: 

ensuring that there are direct links between their annual corporate plans,  RDSSED  and budget bids.  Performance indicators and milestones in annual corporate plans should be realistic and 

achievable within the resources of the Ministry or Department with appropriate collaboration from other parts of Government, and capable of being achieved within the year covered by the Plan; 

aligning their personal performance agreements to the outputs and coordination requirements identified in the RDSSED  and the annual corporate plans; and 

personally attending meetings of the sub-committees to which their Ministry or Department is relevant, and taking a personal interest in the quality and timeliness of the information being provided by their Ministry or Department to the sub-committees. 

Cabinet 

Cabinet will play an active leadership role in the implementation and monitoring and will: 

discuss on a regular basis progress reports on Roadmap implementation; 

on the advice of NPCC, and in consultation with the President‘s Office, effect reviews when necessary to the Roadmap; and 

through the Ministers ensure full and effective implementation of the Roadmap.  

5.2.2Management Information System 

The effectiveness of monitoring and evaluation systems is dependent on the establishment of a well-developed management information system.  The availability of timely and quality data is essential to ensure informed decisions are undertaken.  

The Fiji Islands Bureau of Statistics, as the national statistical agency, is mandated to ‗collect, compile, abstract, analyse and publish statistical information relating to the commercial, industrial, agricultural, social, economic and general activities and conditions of the people of Fiji in a timely and coherent manner.‘ 

An Information System will be established and maintained so that the implementation of reforms can be tracked and timely corrective actions taken.  The Information System will include agreed baselines, time-bound indicators, and specific benchmarks to measure and monitor progress.  It will permit timely analysis and prompt publication of the results from and effects of the RDSSED initiatives.  

APPENDICES 

Appendix 1 Macroeconomic  Data and Projections 

Table 1: Gross Domestic Product by Sector ($000), 2001 - 2011 

Table 2: Gross Domestic Product by Sector – Growth Rates 2001- 2011 

Table 3: Gross Domestic Product Shares by Sector (%) 2001- 2011 

Table 4: Exports by Major Commodities ($ million) 2001- 2011 

Table 5: Exports by Major Commodities - Growth Rates (%) 2001-2011 

Table 6:  Imports By Major Commodities ($million), 2001 - 2011 

Table 7: Imports by Major Comodities- Growth Rates(%) 2001-2011 

Table 9: Real GDP Growth Rates, Foreign Reserves, Interest Rates, and Government Revenue, Expenditures and Debt 

Table 13: Gross Domestic Product at Constant 1995 Prices, 2001-2011 

Table 14 Gross Domestic Product at Current Factor Cost, 2001-2011 

Table 15 Gross Domestic Product at Current Prices, 2001-2011 

Appendix 2 Millennium Development Goals (MDGs) 

11 For monitoring country poverty trends, indicators based on national poverty lines should be used, where available. 

12 Previously: “Ratio of literate women to men, 15-24 years old”. 

13 Moved from Goal 6. 

14 Previously: “Energy use (kg oil equivalent) per $1 GDP (PPP)”. 

15 Previously: “Proportion of population using solid fuels”. 

16 The actual proportion of people living in slums is measured by a proxy, represented by the urban population living in households with at least one of the four characteristics: (a) lack of access to improved water supply; (b) lack of access to improved sanitation; (c) overcrowding (3 or more persons per room); and (d) dwellings made of non-durable material. 

17 Previously: “Unemployment rate of young people aged 15-24 years, each sex and total”. 

* The numbering of the targets and indicators will be undertaken through the inter-agency process of the Inter-agency and Expert Group on MDG Indicators.  

** The language has been modified for technical reasons, so that the data can be more clearly reflected.