Thursday, October 7, 2010

Is Bainimarama & his regime Taking Fiji back to Modernization Era?

Below are excerpts of Warden Narsey's latest report on Poverty, Household Incomes & Income Distribution in Fiji. The full report can be viewed in the link below or by clicking the header. The report is shocking but was to be expected considering how Bainimarama & his illegal regime are so hell-bent in gripping to powers in Fiji under the guise of 'cleaning up corruption' or another word 'structural adjustmentts with the hope of pleasing World Bank & IMF.

Interestingly, structural adjustments is now outdated when one looks at the evolution of development paradigms overtime.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. 

Our theory is;  this is a way where Bainimarama & his regime are now creating a situation  as a way to exploit Fiji via industrialized and capitalized Chinese world's way who Fijian coconut -whispers  are saying that Bainimarama & his regime are being given loads of  handouts from China. This will for sure create a central mechanism of creating a capitalist Chinese- orientated Fiji economy.  All one has to do is take a head count of how many Chinese nationals that have been given Fiji Passport in return of brown-envelope filled with cash!!The outcome, now much noted by those of us who are critics and monitoring Fiji saga closely, will be to deny Fiji and its people from being developed and create a situation where Fiji remains economically underdeveloped. 

Sadly, the situation we are now seeing that the idea of core and peripheral is fast surfacing in Fiji as never been seen before. Core means industrialized state [i.e China] and peripheral in this instance [i.e Fiji] as less industrialized that relies on exports earnings and production and sale of products overseas. Wedged between core and peripherals are semi-peripheral players or those that acts as economic middle player between the two. This flow creates a division between the rich and the poor. As can be seen in this thinking, it will strengthened interdependence thus widening the gap of unequal relationship between the haves & have nots in Fiji. In other words, Bainimarama and his regime will become more richer and those not in control [i.e the people] will become more poorer.
Luvei Viti Think Tank Team.

ps... more discussion on structural adjustment in our next article.

Read more;
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.
read more;
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 ........


  1. Am looking forward to the next instalment on your take on stuctural adjustments and the bhaini khayum development plan.

  2. Thanks RFX 'SAP'Khaiyum style coming next posting.


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