Regretfully, due to the political crisis in Fiji, the New Zealand Government determined it necessary to impose sanctions on bilateral aid to Fiji pending a commitment by Fiji to a credible and agreed roadmap for a return to democratic governance:
Prime Minister Helen Clark and Foreign Minister announced the sanctions on 6 December saying:
"These measures reflect New Zealand's abhorrence of the actions taken by the Fijian military. Those actions are a tragedy for Fiji. New Zealand now has no option but to respond further to this completely unacceptable and unconstitutional action by the Republic of Fiji Military Force."
The sanctions have resulted in New Zealand’s aid to Fiji being cut by approximately half. The programme allocation for 2006/07 has been revised to $4 million. It is anticipated that new commitments to soon commence for work with informal settlements, focusing on the poor, will increase the allocation to $6 million in 2007/08.
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.
There are two major islands, Viti Levu and Vanua Levu. The capital, Suva is located on Viti Levu. The other main city, Lautoka, is also located on this island. The population of Fiji is over 905,000 with over half living in urban areas and predominantly on the main island of Viti Levu. The two main population groups are ethnic Fijians (52 percent) and Indo-Fijian (44 percent).
Fiji has a well-developed economy with tourism, sugar and garment exports 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 serious as it represents 30% of the GDP and over 60% 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 12% of the population live in informal 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. Major challenges over the medium term include the rebuilding of the economy, land tenure, and the development of alternative agricultural crops to replace loss of export earnings from the sugar industry.
The 2005-2010 NZAID/Fiji programme strategy is focussed on assisting Fiji achieve international development targets. The strategy’s three key pillars are:
With half of Fiji's population now living in the rapidly expanding urban areas, over 12% live in over 180 squatter and informal settlements - many well below the poverty line.
NZAID is undertaking a scoping study (to be complete by June 2007) that will identify the best ways New Zealand assistance can support the government in addressing this growing challenge. The establishment of early pilot initiatives will mobilise a new and long-term informal settlements programme. Strong links with the local community and encouraging those living in the settlements to take ownership of the process of developing their communities is essential. A multi-faceted approach will be established to address the broader policy development needs in parallel with the tangible needs of communities.
Strengthening governance, particularly in the areas of public service, law and justice and human rights, is a significant objective of the current NZAID/Fiji programme strategy. However, New Zealand’s targeted aid sanctions imposed in response to the December 2006 coup mean that several activities in this area, for example institutional strengthening support for the Fiji Elections Office, have been frozen. Support will be reconsidered if and when a credible and agreed roadmap has been established for returning Fiji to democratic governance and the NZ sanctions can be lifted.
NZAID's work in Fiji emphasises the need to strengthen local civil society - this includes community groups, NGOs, church-based activities, the media and many others. The long term support NZAID is able to offer gives these groups and the people they support certainty, and helps to build skills within the sector while building strong communities.
NZAID is contributing to the following projects in Fiji:
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Page Last Reviewed: 23 June, 2008