Is Fiji A 3rd World Country?
I wanted to look at the economics of Fiji and find out if its a 3rd world country? I’m Ian, an experienced traveler from the UK, and in this blog post, I will be going over Fiji’s economy and living standards. I know that Fiji is an incredibly warm and hospitable country, so regardless, it’s defiantly worth a visit.
So is Fiji classed as a third world country? Well, it depends on who you ask? Current reports suggest that 30% of Fijians live under the poverty line, and 40/50% don’t earn enough to meet basic needs.
Fiji has a bit of a troubled past with 4 political coos since 1987 and segregation issues from natives Fijians(50%), Indo Fijians, and some Chinese settlers. This causes problems with racial tensions and equality in Fiji, which adds to economic troubles.
Like many developing countries, people in the countryside find it hard to earn a living wage and move to the cities to look for jobs that end up in shantytowns (Metal sheds, basically) where living conditions go below the poverty line.
Living expenses are similar to that of the West. For instance, supermarkets are roughly the same price as the UK.
If you were to point a finger as to why the Fijian economy is unstable, the Military interfering in politics is the main reason. The military coos affected the tourism industry in a big way, and this sector is 77% of Fijis GDP. But things are looking brighter, and opportunities are popping up for the people.
In 2014 Fiji rejoined the commonwealth, and military royal ended. Roads have started to be rebuilt in rural areas and infrastructure, such as sewers. The roads will help families get to markets to sell goods and seek medical needs.
The future is looking brighter for Fiji, but this country is still classed as a developing nation
Just below, I will talk about Fijis developments plans and economy
Further developments
In 2002 Fiji launched a plan to give indigenous people more of a foot in the door with the economy. Better tax benefits and more rights to the fishery waters of the island. Agricultura plans such a rice production, cattle farming, and fisheries were taken forward by parliament. This will impact the economy to be more selective and more job opportunities created. Another area Fiji plans to explore is biofuels like ethanol, a part of the sugar industry. This will cut out export fuels bring prices. So more wealth will stay in Fiji.
Education
Education is free to the age of 8, but after you have to pay. The Government has made strides to help families get their kids to the school financially. Also, they help with transport such as busses and boats to aid them. Its only been recent that the Government has helped families with education fees.
Tourism
Fiji has some fantastic beaches and scenery, and its no wonder that it had over 500,000 visitors since 1999. Tourism ads over 300 million dollars a year to the Fijian economy, so the service sector is enormous for jobs and peoples lively hoods. Sadly with the recent event of Covid, people are currently stiff up and unable to make an income.
Trading
Fiji is an island with many imports coming into the country, and it turns out imports are more extensive than exports by $119 million, which is a deficit for the economy.
Fiji imports a lot of freshwater from the US, which costs a lot of money, and you can see how Fiji’s location makes life difficult.
Fiji trades mainly with the US, Australia, New Zealand, and Japan. The country doesn’t have a manufacturing industry, so most imports are clothing and machinery mainly. The location issue adds to Fiji’s problems, but they have to make do for now.
Expenditure
Multinational companies are in Fiji, but this comes under some ridicule as the large multinationals don’t pay tax. Over the years, politicians have been criticized as these companies hardy pay any tax. I expect some corruption from this for sure.
That’s my analysis of Fiji and where it is today. From my research, I would say Fiji is a developing country and not a third world. I do hope the development plan works, and it does sound like Fiji is moving in the right direction.
Thanks For Your Time
Ian
