Regions and Countries

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p. 5 of 14 BACK | NEXT I. Country Performance Assessment A. Recent Political Developments B. Economic Performance Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Republic of the Fiji Islands : I. Country Performance Assessment

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D. Governance: Sound Development Management

15. The Constitution (Amendment) Act of 1997 supported a process of national reconciliation between the major ethnic groups. Political leaders agreed to form a multi-racial government following the elections held in May this year and the elections resulted in a major swing in favor of the previous opposition party coalition. The successful conduct and stable outcome of the elections marks a major landmark in Fiji Islands’ return to full democracy.¹²

16. The economy is subject to some over-regulation and protectionism.¹³ This is partly a legacy of colonial rule but it is also sustained by a large public sector with vested commercial interests of public enterprises. While well established local investors may have come to terms with this regulatory environment, it can be both confusing and discouraging to the new investor. A more open and competitive investment and trade, and a more balanced and predictable regulatory environment needs to be created. The new Commerce Act of 1998 seeks to improve the regulatory environment.

17. Government is firmly committed to improving governance, accountability, and transparency. The Public Finance Management Act promulgated in early 1999 provides for a revised government financial management system. The Act is a highly significant development which aims at increasing efficiency and accountability. A new system will be introduced under the Act which will focus on performance-based public sector management. This, among other matters, includes switching from input to output-based budgeting and the introduction of accrual rather than cash accounting throughout the Government.

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