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Following the December 2006 coup and the ongoing political volatility in Fiji, the New Zealand Government has maintained the following sanctions on aid pending a firm commitment by Fiji's interim government to a credible roadmap for a return to democratic and constitutional governance:
The coup and the sanctions led to a substantial reduction in New Zealand 's aid to Fiji in 2006/07 and 2007/08 and a reorientation of support away from government to civil society. New commitments for assisting informal settlements and strengthening civil society, focusing on the poor, should lead to increased disbursement of the $5 million aid allocation for Fiji in 2008/09.
Fiji lies almost directly north of New Zealand between Tonga, Vanuatu and Samoa. More than 300 islands make up the Fiji group but fewer than half are populated.
Viti Levu and Vanua Levu are the two main islands. The capital, Suva, and the second largest city, Lautoka, are both located on the largest island, Viti Levu. Fiji's population is approximately 840,000 with over half living in urban areas, predominantly on Viti Levu. The two main population groups are ethnic Fijians (57 percent) and Indo-Fijians (38 percent).
Fiji has a well-developed economy with tourism, sugar and garment exports and remittances being the main sources of income. While tourism had been booming prior to the 5 December 2006 coup, the industry has suffered a downturn since then. Moreover, the sugar cane industry is declining. This is significant as it represents 30 percent of the GDP and over 60 percent of cash incomes. The sugar decline and non-renewal of farm leases is fuelling urban migration.
Poverty and inequality continue to be a major challenge and at least 15 percent of the population lives in informal and squatter settlements. Land tenure challenges and the expiry of land leases are major contributors to the increasing size of these settlements and pose a significant social and economic challenge to development.
The coups in 1987, 2000 and 2006 have all had significant negative impacts on Fiji 's economy, as have high costs of imported food and fuel more recently. These problems have been compounded by the turmoil in international money markets and the downturn in the broader global economy. Major challenges over the medium term include the rebuilding of the economy, resolving land tenure issues, and developing alternative agricultural crops to replace loss of export earnings from the sugar industry.
The 2005-2010 NZAID/Fiji aid programme strategy remains largely in place despite the December 2006 coup leading to several activities partnering with the Fiji interim government being frozen. Programme implementation is now focused on the strategy's objectives of promoting democratic governance, strengthening civil society and assisting people living in poverty, especially those in squatter and informal settlements.
More than half of Fiji's population now live in the rapidly expanding urban areas, with over 15 percent living in some 180 squatter and informal settlements (many well below the poverty line).
The key focus of the NZAID/Fiji programme strategy is to support work that will reduce the hardship of those living in these informal/squatter settlements. Under its Fiji Informal Settlement Support Programme (FISSP) NZAID is developing a clear pathway for long term engagement to achieve real change in poor squatter settler living conditions and at the same time building capable and resilient urban communities that contribute to Fiji's economic development. As part of the FISSP an Interim Framework will help mobilise activities while guiding the development and implementation of a longer term engagement plan (10 years plus) within this multi-sector. In providing assistance NZAID is guided by the recommendations of an Informal Settlements Scoping Study undertaken in 2007. The study pitched the NZAID contribution to addressing informal settlement needs on strengthening institutional capacities for settlement upgrading and managing urban growth; thus local government linkages are an important focus of NZAID assistance under the FISSP.
Strengthening governance, particularly in the areas of public service, law and justice and human rights, is a significant objective of the NZAID/Fiji programme strategy, although the aid sanctions mean that several activities in this area, for example new scholarships and training attachments, are on hold.
NZAID is supporting multi-donor initiatives to help return Fiji to democratic governance through targeted elections support. For example, NZAID has reinstated assistance (which had been suspended following the coup) to the Fiji Land Information System so it can support Fiji's Constituency Boundaries Commission with electoral boundary remapping work. NZAID's assistance is also helping FLIS meet geographic information system requirements in the urban development/informal settlements sector.
NZAID's work in Fiji also strengthens civil society - supporting communities, Non-Government Organisations (NGOs), church-based activities and others. The long term assistance NZAID is able to offer gives these groups and the people they support certainty, and helps to build skills within the sector while also building strong communities.
To support current and future assistance in this area, NZAID has designed a Civil Society Strategy (CSS) aimed at developing strategic partnerships with select NGOs. Specific criteria and guidelines for providing assistance under this new strategy have also been designed.
The support provided under the CSS will also assist informal settlement communities to organise themselves to become a voice in negotiation processes with local government and the state to address upgrading and/or relocation of informal settlements.
NZAID's civil society support includes assistance for the following projects in Fiji:
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