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Fiji

Original 2008/2009 Allocation | $5 million

Fiji Coup: Sanctions

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:

Any new development assistance initiatives which provide assistance to or partner with the government in Fiji are frozen, and current activities are under review.
The awarding of new government managed scholarships and training is discontinued.
New Zealand's assistance to the Fiji Electoral Office is to be reviewed and reconsidered.
Fiji public sector's eligibility for training initiatives under regional governance programmes has been suspended.
Planned support for people in squatter settlements is under review, with a view to assessing the scope for providing such assistance through NGOs and relevant regional agencies, rather than through the Fiji government agencies.

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.

Snapshot

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.

NZAID priorities

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:

Reducing hardship suffered by those living in informal/squatter settlements
Governance and capacity building
Reducing vulnerability to poverty.

NZAID on the ground

Squatter settlements

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 the public sector

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.

Supporting communities

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:

Fiji Women's Crisis Centre (FWCC) – ongoing core funding of three branches of the Centre (in Ba, Nadi and Labasa) to assist women suffering, or at risk of, domestic violence.
Fiji Law Reform Commission (FLRC) – NZAID has supported various law reform activities carried out by the FLRC, for example reviews of the Criminal Procedure & Penal Code, and of Domestic Violence legislation, but further such assistance is now on hold pending clarification of the FLRC's future since the Fiji coup.
Save the Children Fiji (SCF) - a mobile playgroup initiative aimed at improving basic education opportunities for disadvantaged school pupils in Fiji.
SCF – New Zealand has also provided $209,000 ($F240,000) to support families struggling to recover after serious flooding on the second main island of Vanua Levu over February/March 2007. Poorer families and local schools have borne the brunt of the disaster. The NZ funding is supporting SCF's programme of providing nutritious lunch packs for school children whose families lost their homes and livelihoods in the floods. This support for the SCF initiative complements an earlier NZAID grant of $35,000 to the Fiji Red Cross to assist with relief efforts immediately after widespread flooding in western and northern parts of Fiji in February.