The role of the government in Fiji’s economic development is set to undergo a review. The upcoming National Development Plan for 2025-2029 has pointed out the government’s “overly regulatory approach” to development.
The report emphasizes that the discussion surrounding the government’s role has long been overdue and is central to Fiji’s goal of achieving economic resilience. It notes a wide agreement that the government’s interventionist stance has hindered private sector investment and negatively impacted economic growth.
To foster more dynamic and sustainable economic progression, the report recommends a significant shift in the developmental strategy towards one that is more supportive and enabling for the private sector. The government plans to gradually reduce its direct involvement in economic activities, ensuring that it does not compete with the private sector. Instead, it aims to create a favorable environment for private enterprises by promoting policy stability and boosting investor confidence.
The report outlines four key areas for the government’s role moving forward. These include minimizing the government’s size and influence in the economy to prevent restricting private sector growth, facilitating private sector investments through the elimination of regulatory hurdles, providing quality public goods through strategic public spending, and fostering public-private partnerships where appropriate to encourage growth.