Enhancing competitiveness of Fiji's economy

Abstract

This chapter examines how Fiji is faring in terms of competitiveness. It is argued that the quest for increased growth requires strict adherence to factors which minimises distortions in the market. Fiji, while embracing gradually the open market approach to growth and development, has still a number of distortions in both the factor and product market. The majority of the land is still communally owned with a stalemate on landleasing agreement. The labour market is often in dispute, and the unions' interventions are making the market inflexible. The government and its underlying institutions are also embroiled regularly in issues of poor governance. Institutions must function efficiently and with transparency if investment is to be attracted a sustained manner. The paper argues that the rapid integration of the world economy will provide vast opportunities for those who can take advantage of the globalisation process. This requires sound macroeconomic management, adequate institutional set-ups, well-defined property rights, and prevalence of good governance. These are the fundamentals of competitiveness, and any long-term growth strategy cannot afford to ignore them.