Political stability will determine global status

Fiji can regain its status as a progressive nation and as an important tourist and investment destination if it can achieve political stability and give up its coup culture, National Federation Party (NFP) Leader Dr Biman Prasad said in Auckland last fortnight.

The Academic-turned politician said that thousands of people fled Fiji under bitter circumstances following military coups in 1987, 2000 and 2006. Many of them have settled in New Zealand, enjoying the freedom and opportunities provided under a democratic system. Coups have destroyed such opportunities and progress in Fiji, he said.

Dr Prasad was addressing a meeting of his Party at Mt Roskill Community Hall on May 21 along with Party President Tupou Draunidalo.

He recently resigned from the post of Professor of Economics at the University of South Pacific to pursue politics and contest in the general election scheduled to be held on September 17, 2014.

Dismal performance

Describing the performance of the Fijian economy since 2007 as dismal, Dr Prasad said that annual economic growth has been around 1%.

“The persistence of political instability, poor investor confidence, lack of investment in infrastructure, land lease problems, inconsistent government policies, restrictive decrees, high costs of doing business have all plunged the confidence in our economy. We must rupture this cycle of low confidence and low growth,” he said.

Businesses and employers want certainty in the business environment and Fiji’s skilled, professional and unskilled workers want predictability in their employment. Government policy has been confusing, designed to support certain industries and favour businesses selectively, he added.

Dr Prasad said that he wanted Fijian economy to register annual growth of 6% and that it can be achieved within two years.

Economic factsheet

Presenting the economic factsheet of his country, he said that agricultural production had taken the backseat since December 5, 2006 when current Prime Minister Josaia Voreqe Bainimarama staged a military coup to overthrow the Laisenia Qarase and his Government and took the reins of administration. He said that policy failure had destroyed his country’s agricultural sector.

Sugarcane production declined by 34% from 2006 to 2011, while copra production dropped by 35%, rice by 38%, goat by 85% (between 2006 and 2011), and fish production dropped by 55%.

“Production of milk declined last year despite the Government’s efforts. Milk is now beyond the reach of poor families in Fiji. The imposition of import duty of 32% on milk and milk products has made milk products beyond the reach of poor people in Fiji. If the Government had been diligent and successful in retaining production of sugarcane, the Fijian economy would have been undoubtedly far better off,” Dr Prasad said.

Tourism depressed

Despite much hype, the tourism sector has hardly grown since 2006, he said.

The overall tourism numbers grew by a meagre 2.6% in the last four years. The business and conference sector of tourism declined by more than 4% during this period, while personal tourism increased approximately by 3%. This is a worrying trend since global tourism grew by a huge 5% in the last 12 months alone, he said.

Declining business

Fiji’s overall Doing Business 2013 ranking is 60 out of 185 economies, recording six-point decrease compared to 2012.

“Our economic freedom score is 57.3, placing New Zealand in 105^th place in 2012. Its overall score is 3.1 points lower than last year due to considerable declines in property rights and freedom from corruption. Several policies have increased transaction costs and many small businesses are struggling under the weight of these increased costs,” he said.

Dr Prasad said that businesses that were affected by increasing costs included roadside stalls, small operators, taxi owners, farmers, and kava dealers.

“They face a barrage of harassment by Land Transport, Fiji Revenue & Customs Authority officials, town councils, Water Authority, Fiji Electricity Authority, Commerce Commission and the Lands Department. Small businesses feel that the whole architecture of government is working against, rather than for them. Small businesses feel that they are being punished by their Government instead of being rewarded for trying to lift themselves out of poverty. These small business operators have suffered in silence over the last seven years,” Dr Prasad said.

Extreme poverty

According to him, poor economic performance has lifted poverty and unemployment levels. Unemployment and low wages are destroying the younger generation, and rising cost of essential goods is punishing the poor.

“When he took charge of the Government on December 5, 2006, Mr Bainimarama promised to reduce VAT from 12.5% to 10%. Instead, he raised it to 15% and devalued the Fijian Dollar by 20%. Prices have increased by 45.3% since 2006. Food prices went up by 60%, heating and lighting prices by 60% and transport by 51%.

“Poverty is blight on our country; and on humanity. When Fiji attained independence from the British in 1970, only 7% of our families were poor. It has grown fivefold to 35%. This is plainly unacceptable. Over the same period, while the rest of the world has made substantial progress in reducing poverty, we have been on reverse,” he said.

Media Decree

Making a note of caution about the media, he said that it remained muzzled.

“We are fighting an election under a Constitution that has been imposed on us. The environment for the election is far from free and fair,” he said.

Among the others who spoke on the occasion were Auckland Councillor and Activist Marie Leadbeater, Nikhil Naidu and Ahemad Bhamji.