Wednesday, March 4, 2009

"The Problems in Fiji" as written by Cam Riley indicates some hard core issues.

This is an interesting article. It is precise & clear and a must read for those following the Fiji Saga. Cam Riley's web page is noted below for anyone that may wish to read more of writings.

Do read on.......
What a mess in Fiji. The WSJ is writing that the Fijian economy is declining because of it, tourism is down, and sugar exports are in danger, not to mention NZ taking hardline trade sanctions against Fiji. Australia has held out the carrots of aid, which have been ignored. There is also disquiet amongst Fijian elites who want the sanctity of the juducial system returned.
An interesting statistic from the WSJ op-ed is that the 2000 coup led to a 7.7% contraction of the Fijian economy. So far this year the Fijian economy has contracted 2.5%. Bad government is bad for business. I can recall when India and Pakistan were threatening to lob nukes at each other about six years ago. Out-sourcing from the US to India for tech industries was relatively new back then, and when American companies feared the region would become unstable through warfare, they immediately cancelled contracts and backed out investments. The message was clear, and Indian business leaders went straight to the government; political instability is bad for business in a globalised economy. India quietened the sabre rattling, an accommodation was achieved and Indian technology companies went back to trading with US companies. Zimbabwe and North Korea are two stunning examples of this effect. The problem is that a dieing economy doesn't touch the leaders. They can still import Harley Davidsons and Cadillacs even though the North Korean country from satellite at night is pitch black - courtesy of no electricity for lighting outside of Pyongyang. Fiji is not the wealthiest place either, and the economic woes from the political instability Bainimarama has introduced with his coup, will only exacerbate those issues. Very foolish.

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