Fiji is facing a “triple threat” that is obstructing its route to prosperity, as outlined in the newly released Fiji Foreign Policy White Paper 2024. The document highlights that the nation’s debt, which exceeds 80 percent of its gross domestic product (GDP), greatly restricts its borrowing capacity and limits investment in critical infrastructure.
The paper emphasizes that this financial pressure hampers efforts to develop essential services, including roads, electricity, water supply, hospitals, and schools, all of which are vital for economic development. It stresses the importance of investing in infrastructure to foster growth and maintain basic services.
Additionally, the document points out that the high levels of debt reduce Fiji’s fiscal flexibility to tackle national disasters, which have been increasingly common and severe due to climate change. Cyclones and floods not only damage homes and lives but also significantly impair infrastructure, hindering economic advancement.
Lastly, the report addresses the declining condition of infrastructure and essential services, which poses a direct threat to Fiji’s future economic growth. The lack of reliable access to vital services such as electricity and water undermines the country’s ability to develop and attract investments in key sectors for economic expansion.
The document calls for prioritizing the upgrading and maintenance of infrastructure to enable sustainable economic development. It sets ambitious goals for Fiji to become a regional leader in sustainable financing by 2030 and 2040, addressing crucial issues such as poverty, inequality, and climate change—concerns particularly significant for small island nations.