Fiji is confronted with a “triple threat” that jeopardizes its prospects for prosperity, as highlighted in the newly released Fiji Foreign Policy White Paper 2024. The document reveals that Fiji’s debt levels surpass 80 percent of its gross domestic product (GDP), which significantly limits its borrowing capacity and the ability to invest in crucial infrastructure.
The report emphasizes that this financial pressure affects Fiji’s capacity to develop important infrastructure such as roads, power, water supply, hospitals, and schools, which are vital for economic growth. It stresses the need for infrastructure investments to support and enhance economic development. Maintaining and upgrading essential infrastructure is deemed critical for the country’s development strategy.
Moreover, the document points out that the high debt levels reduce Fiji’s fiscal flexibility to respond to national disasters, which have intensified and increased in frequency due to climate change. The impacts of cyclones and floods not only devastate communities but also severely compromise infrastructure, hindering economic progress and development.
Additionally, the report warns of the deteriorating state of infrastructure and essential services, which poses a significant risk to Fiji’s future economic growth. The lack of reliable access to critical services like power and water undermines the country’s ability to attract investments in sectors essential for economic expansion.
Fiji’s plan includes a commitment to prioritizing the upgrade and maintenance of its infrastructure to foster sustainable economic development. By 2030 and 2040, Fiji aims to lead the region in sustainable financing, addressing pressing issues such as poverty, inequality, and climate change, which are major concerns for small island nations.