Fiji is confronting a “triple threat” that poses significant challenges to its development, as outlined in the newly released Fiji Foreign Policy White Paper 2024. The document highlights that Fiji’s debt levels have surpassed 80 percent of its gross domestic product (GDP), severely restricting the country’s borrowing capabilities and hampering investments in crucial infrastructure.
The report emphasizes that this financial pressure undermines Fiji’s capacity to improve vital services such as roads, power, water supply, hospitals, and schools, which are essential for economic growth. It stresses the necessity of investing in infrastructure to facilitate sustainable economic development, noting that upgrading and maintaining basic facilities is a critical part of the country’s development strategy.
Moreover, the document points out that the high debt levels limit Fiji’s fiscal flexibility to respond to natural disasters, which have been increasing in frequency and intensity due to climate change. The impacts of cyclones and floods are devastating, damaging homes and infrastructure, and hindering economic advancement.
Lastly, the paper raises concerns about the deteriorating condition of infrastructure and essential services, which poses a direct threat to Fiji’s economic future. It argues that without dependable access to critical services like power and water, Fiji’s ability to attract investments in key sectors will be significantly impaired.
The White Paper conveys a vision to position Fiji as a regional leader in sustainable financing by 2030 and 2040, focusing on addressing pressing issues such as poverty, inequality, and climate change—major challenges for small island nations.