Fiji is confronted with a “triple threat” that hampers its journey towards prosperity, as outlined in the newly released Fiji Foreign Policy White Paper 2024.
The report reveals that Fiji’s debt levels exceed 80 percent of its gross domestic product (GDP), which significantly restricts the country’s borrowing capacity and limits its ability to invest in critical infrastructure. The document emphasizes that this financial pressure affects the development of essential services such as roads, power, water supply, hospitals, and schools, all of which are vital for economic growth.
According to the document, enhancing infrastructure is crucial for supporting economic advancement. It stresses that the upgrade and maintenance of basic infrastructure, including roads and utilities, are key components of the nation’s development strategy.
Moreover, the high debt burden reduces Fiji’s fiscal flexibility to respond to national disasters, which have become increasingly common and severe due to climate change. The report cites that cyclones and floods not only wreak havoc on communities but also severely damage infrastructure, causing setbacks in economic progress.
The third concern raised is the declining condition of infrastructure and essential services, posing a direct threat to Fiji’s future economic development. The report warns that without dependable access to services like power and water, the nation’s capability to foster and attract investments in crucial sectors for economic growth is at risk.
It calls for a renewed focus on upgrading and maintaining infrastructure as a means to promote sustainable economic development. By 2030 and 2040, Fiji aims to establish itself as a regional leader in sustainable financing, tackling pressing issues such as poverty, inequality, and climate change, which are particularly important for small island nations.