The government’s increasing involvement in the economy and stringent regulations are making it challenging for businesses to expand and invest. This concern was highlighted in the National Development Plan (NDP) report, which emphasized that the ongoing discussion surrounding the government’s role in Fiji is crucial for the country’s quest for economic resilience.
The report noted, “There is a consensus that the Government has adopted an interventionist and excessively regulatory approach to development.” It stated that such a strategy has limited and hindered private sector investment, resulting in a detrimental effect on economic growth.
To promote a more dynamic and sustainable economic environment, the Fiji Government intends to adjust its development strategy to better facilitate private sector initiatives. This will include a gradual reduction of its direct involvement in economic matters and avoiding competition with private businesses.
Central to this revised approach is the creation of a supportive environment for private sector growth, characterized by stable policies and increased investor confidence. The government’s redefined role will focus on four main areas.
The government plans to restrict its economic influence to avoid obstructing private sector growth. Firstly, it aims to decrease the size and role of the Government in the economy. Secondly, it will work on efficiently facilitating private sector activities and investments by eliminating regulatory barriers. Thirdly, the government will provide quality public goods to the population through well-planned and targeted public sector spending. Lastly, it seeks to establish public-private partnerships where feasible to support economic growth.
According to the report, this strategic shift reflects the government’s dedication to fostering an environment where private sector investment can flourish, ultimately benefiting the wider economy and the people of Fiji.