FIJIAN ECONOMY DURING THE NEW NORMAL PANDEMIC
‘Given that Fiji has the biggest economy in the South Pacific and is the regional hub, its stability and proactive strategies for reviving the economy are seen as being very important.’
Joseph Veramu Veramu is a higher education research consultant. He can be contacted on joseph.veramu@outlook.com.
New normal requires rethinking economic growth. It is now accepted globally that the COVID 19 virus will be around for a very long time and many nations are re-strategizing on ways in which their economies can continue to grow. Guam, for example, which like Fiji relies heavily on tourism has started offering a “vacation and vaccination” programme.
Travellers will have to undergo a seven-day quarantine at a self-paid facility upon arrival and if they pass a coronavirus test on day six, they will be allowed out the next day to enjoy an unrestricted beachside holiday.
Given that Fiji has the biggest economy in the South Pacific and is the regional hub, its stability and proactive strategies for reviving the economy are seen as being very important. We have a tourism-based economy and we need to urgently diversify.
It is good news that the new law on the Fiji Investment Act 2020 aims to attract local and foreign investors in various sectors of the national economy. Investor permits will be managed by the Department of Immigration and investor rights will be protected with provisions for legal recourse.
In the immediate term, reviving the economy can be done, for example, through farming support programs where people plant local foods in their backyards and rural farms.
This will drastically reduce our national food import bill. Other areas include integrating women, youths and the most vulnerable into ‘social workfare’ SME programmes that integrate them into the informal / non formal economy.
This means that the poor additionally receive social workfare (rather than just welfare) funds to start small businesses.
Another area entails reducing service charges on remittances (meaning more money in the hands of recipients in Fiji) given that over $1 billion is injected into the economy through remittances. Labour mobility with locals going to work in Australia has also been implemented successfully.
World Bank Support
The World Bank announced on 25/3/2021 that it had approved FJ$299 million for operations to support Fiji’s ongoing efforts to recover from the impacts of COVID-19 and multiple tropical cyclones.
Amongst other priorities, it promotes opportunities for women, particularly in addressing gender barriers and also supports the establishment of a Social Assistance Policy for Fiji’s poorest and most vulnerable groups through income generating activities.
This initiative is aligned to programmes like the Ministry of Agriculture’s ‘Back to Rural Agriculture Programme’ which aims to support Fijians who have lost their jobs because of the impact of the COVID-19 pandemic and are now returning to rural areas to focus on farming. As a start-up, the programme will consist of $250 worth of farming tools, directly delivered to the successful farmer, $100 worth of planting materials, and $50 cash, which can be used to procure any other items needed.
Planting materials will also be distributed based on individual requirements and land suitability.
The Australian Govt is working with United Nations Capital Development Fund (UNCDF) to help reduce the cost of remittances and support new opportunities for labour mobility. They are also working with UN Women Markets for Change initiative to support women-led SMEs.
Budget 2021 – 2022 Consultation
The upcoming budget will focus on the COVID-19 pandemic and the strategies to deal with the financial impact of the loss of tourism revenues. The efficient roll out of the vaccination programme is a prerequisite to allow our borders to safely reopen and to bring the economy fully back to life. Australia and New Zealand will provide around FJ$105 million to support the 2021-2022 budget.
Fiji aims to increase public-private investments in economic diversification through a sustainable blue economy. This includes increased access to justice, developing climate and disaster risk financing solutions and supporting climate adaptation and resilience efforts.
The plan for economic recovery requires all citizens to work together pooling their knowledge and resources to get Fiji back on its feet.
COVID-19 is the ‘new normal’
The reality is that COVID-19 may never go away and the positive news is that it is possible to live normally with it in our midst. COVID-19 will almost certainly become endemic in the near future meaning that the virus will continue to mutate, and thereby survive in Fiji and the World.
To provide a much higher level of protection, and to defend against new mutant strains resistant to current vaccines, booster shots may be needed in the near future. The new normal may include multi-year vaccination programmes.
As Fiji has shown, the key is vaccination and to have at least 70 per cent of the people fully vaccinated by Dec 31.
Despite the sceptics refusing to be vaccinated, the evidence is very clear that vaccines are highly effective in reducing the risk of infection as well as transmission.
Stamping out COVID-19 requires the Fijian public to play their part through staying away from others outside their bubble, washing their hands, wearing masks, socially distancing and getting vaccinated.
This is not the time to feel sorry or to go around with mournful faces. We should all use this opportunity to see how we can sustainably help ourselves socially and financially.
If you are thinking of posting on social media about vaccines, social unrest or other equally vicious posts, please go to a quiet place and prayerfully consider how you can help our nation grow!