Interestingly, structural adjustments is now outdated when one looks at the evolution of development paradigms overtime. This particular approach had failed in its attempts as post-development theorist had observed. So where is Bainimarama & his sidekick Khaiyum are getting their ideas from?
Ironically, whilst we can clearly see that Bainimarama & his illegal regime are in overdrive mode to prove that their idea of coup 2006 is valid and which now is being mocked by all around the globe. Whilst we can argue that they may have tried to mix in with their thinking the modernization paradigm which they tried to copy by enforcing some rules that were introduced during colonial era and based from western concepts. This as we all know had failed in many areas that had been colonised as the views used were via restricted lenses. The intention was to lift the South including Fiji, out of being underdeveloped or to modernize the South designed and rooted in western model of development. It is now becoming evident that whilst at that time Colonial powers had specific plans in place.
Their idea was to rid traditional society and define economic growth through capitalism, urbanization, industrialization as central components of development. The thinking that if traditional system was done away with, this will make way for mass consumption thus ending primitive system and promote take-off system. To reach industrialization it will take exploitation, intelligence and innovation and this assumes an end point.
It is now becoming so obvious that Bainimarama & Khaiyum are hooked on executing these same principles as can be seen in what they are doing to all Indigenous Fijians in Fiji. It appears that what is happening here is the old age thinking at the heart of dependency paradigm, to deny development in Fiji, the salience of modernization theory.
Poverty, Household Incomes and Income Distribution in Fiji, 2008-09
[by] Professor Wadan Narsey, School of Economics (FBE, USP).
But GDP does not include impact of Remittance earnings
Remittances have been very large: $300 million in 2006, probably more. Remittances rose in real terms to 2006; declined to 2007 and 2008, before rising again in 2009.
i.e. remittances have strongly counter-balanced the impact of declining GDP per capita.
Gross National Income per capita (includes impact of remittances) is better indicator of disposable incomes in Fiji: FIBoS does not produce data series on this. WB does.
1 October 2010 Fiji’s poverty over the long term: Sheer lack of economic Growth
Most important factor impacting on poverty is long term economic growth.
Economic growth depends on national savings and investment.
Savings Ratio as % GDP:
= Gross National Income – Consumption – Net Transfers out
Gross Fixed Capital Formation as % GDP.
Result: Gross National Income
Compare and contrast Fiji and Mauritius. Both island nations; dependent on tourism and sugar; ethnically mixed population ........