Managing Macroeconomic Policies for Sustainable Growth

Managing Macroeconomic Policies for Sustainable Growth

John Asafu-Adjaye and Renuka Mahadevan

The authors expertly reveal a model-based analysis of economic development and environmental issues with policy prescriptions for enhancing sustainable development. Within the last four decades, there has been a rapid deterioration in the quality of our environmental and natural resources, raising grave concerns about the sustainability of unbridled economic growth. In light of these concerns, the authors analyse a range of economic and environmental issues, and propose policy recommendations that would enhance sustainable economic growth. The book covers a variety of issues related to economic development, trade, energy and climate change, and focuses on countries in the Asia-Pacific region including Australia, Thailand, Papua New Guinea and Fiji.

Chapter 4: Macroeconomic Reforms in Fiji

John Asafu-Adjaye and Renuka Mahadevan

Subjects: asian studies, asian development, asian economics, development studies, asian development, development economics, economics and finance, asian economics, development economics

Extract

59 60 Managing macroeconomic policies for sustainable growth 4.2 PERFORMANCE OF THE FIJI ECONOMY The performance of the Fiji economy can be described as sluggish and unstable and in general exhibits a declining trend as seen in Table 4.1. The economy’s real GDP grew annually by 4.12% in the period 1971–86 but declined in 1987 due to the coups in May and September of that year. The currency was devalued in 1987 and 1988 by a total of 35% to stabilise the economy after the coup to stop capital flight, to dampen import demand and to encourage exports and create employment. There was, however, a recovery in the 1991–99 period and inward private investment continued to be attracted primarily to the garment and tourism industries but the economy was still hindered by weak private investment and an increase in emigration. Table 4.1 Selected macroeconomic indicators for Fiji (%) Indicator Real GDP Growth Inflation Rate Unemployment Rate 1971– 86 4.12 3.53 8.9 1987– 90 –0.94 6.56 7.5 1991– 99 2.76 3.7 6.4 2000 –1.66 3.0 7.6 2001– 05 2.45 2.82 8.2 2006– 09 –0.23 5.08 8.1 Note: Above values are averaged over the years using 1990 as base year. Source: Reserve Bank of Fiji (various years). The May 2000 putsch also adversely affected the economy with a –1.7% growth but the economy recovered more quickly this time around to register an annual average growth rate of 2.45% over 2001–05. The December coup is clearly a disruption that Fiji...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information