Fiji is confronting a “triple threat” that hampers its journey to prosperity, as outlined in the newly released Fiji Foreign Policy White Paper 2024. The document reveals that the nation’s public debt, which exceeds 80 percent of its gross domestic product (GDP), significantly restricts its borrowing capabilities and undermines its ability to invest in vital infrastructure.
The report emphasizes that this financial burden affects Fiji’s capacity to develop critical infrastructure like roads, water supply, hospitals, and schools, which are essential for economic growth. It highlights that investing in infrastructure is crucial to facilitate economic development, and calls for the upgrade and maintenance of basic facilities such as roads and utilities.
Moreover, the document points out that the high debt levels limit Fiji’s fiscal flexibility to react to natural disasters, which have been intensifying due to climate change. It states that cyclones and floods not only damage homes and lives but also severely impact infrastructure, hindering economic progress.
Additionally, the report addresses the declining condition of existing infrastructure and essential services, which poses a direct threat to Fiji’s future economic development. The lack of reliable access to services, such as electricity and water, undermines the nation’s ability to attract investments in key sectors necessary for growth.
The White Paper urges a focus on upgrading and maintaining infrastructure to ensure sustainable economic development. It sets ambitious goals, stating that by 2030 and 2040, Fiji aims to become a regional leader in sustainable financing, targeting critical issues such as poverty, inequality, and climate change, which are particularly pressing for small island nations.