Fiji’s economic future was significantly redefined in the 1990 National Budget presented by then Minister of Finance, Josevata Kamikamica. This pivotal announcement marked a shift in the nation’s economic policy towards a more export-oriented approach. During his address to Parliament on December 1, 1989, as reported by The Fiji Times, Mr. Kamikamica emphasized the urgency to reorient sector policies in order to enhance Fiji’s competitiveness in a globally open market.
A cornerstone of the government’s new economic strategy was deregulation, aimed at boosting efficiency and productivity within the economy. Mr. Kamikamica proposed the gradual phasing out of price controls to better allow market forces to dictate pricing, and indicated that import licenses for agricultural products would be eliminated by mid-1991. A uniform tariff of no more than 50 percent was planned to replace these licenses.
Attracting foreign investment into burgeoning industries was highlighted as essential for economic growth. Mr. Kamikamica expressed the need to enhance workforce skills and increase productivity, along with creating an environment that encourages citizens to remain in Fiji rather than seeking opportunities overseas.
While recognizing the challenges associated with reducing government spending, he asserted that maintaining cost competitiveness was vital for transforming Fiji into an export-driven economy. Public enterprises and statutory bodies were urged to adopt the user-pay principle, moving away from dependency on taxpayer support.
Additionally, the fiscal duty on a wide array of locally manufactured products was set at 50 percent, with an intention to gradually reduce these rates over the following five years, including a targeted 10 percent reduction in the 1991 Budget. According to Mr. Kamikamica, the 1990 Budget was constructed to establish a robust foundation for Fiji’s long-term economic growth, emphasizing tax reform, wage restraint in line with international standards, and fostering entrepreneurship as critical elements for national expansion.
This strategic approach not only aimed at stabilizing the economy but also at creating a brighter future through enhanced export capabilities and sustainable development. The focus on competitiveness and investment signals a progressive outlook for Fiji’s economic landscape.
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