Regions and Countries

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p. 7 of 14 BACK | NEXT I. Country Performance 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

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II. Country Operational Strategy

22. Although the economy is recovering from the recent recession, certain economic problems need correcting. These are:

1. adjusting to the decline of trade preferences, most especially with respect to the sugar and textiles industries, and preparing a more competitive economy where property rights and land tenure are secured thus stimulating increased private investment in support of job and income creation;

2. reducing the size of government and public debt, prioritizing public sector services, continuing public enterprise reform and generally improving governance;

3. generating the skills needed for economic growth; and

4. reducing the unsustainable rate of growth of the urban population.

23. A gradual shift in emphasis in the ADB’s operations and operational approach is proposed.¹⁸ The proposed shift in emphasis is from an almost exclusive emphasis on project and sector-based infrastructure lending and related policy and institutional issues to a program that provides greater attention to the above economic problems. This will be achieved through broad-based sector development program lending and advisory TA. Although the full extent and nature of the new government’s policies is being established as the government’s election manifesto is being implemented the government’s early public pronouncements support the proposed change of focus in the ADB’s program. An issue-oriented and forward looking Pacific island economic report (PIER) series on Fiji Islands, currently under preparation, will underpin the proposed new focus. The PIER will also lead to an update of the ADB’s strategy for Fiji Islands during the latter part of 1999.

24. The ADB’s program for Fiji Islands will be further guided by two specific requirements. First, institutional strengthening is required, most especially in key central and line Ministries. Second, public asset and investment management need to be strengthened.

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