Fiji’s Future: Prosperity Through People and Productivity

The Fiji Country Economic Memorandum (CEM) report presents the findings of the CEM undertaken by the World Bank in consultation with the Ministry of Finance, Strategic Planning, National Development and Statistics, Government of Fiji.

The Background Report comprises four chapters:

a) Understanding the current and future drivers of growth

b) Seeking stability

c) Raising productivity

d) Enhancing human capital.

Fiji's current growth rate of 3 percent is at the upper end of its potential. To become a high-income country within the next two decades, Fiji needs to grow at 5.7 percent a year. This significant acceleration in growth would stem from boosting investment and raising productivity. This report outlines five policy recommendations to achieve this:

• Enabling business. A better regulatory framework and digitized administrative procedures, integrated with risk management approaches, could reduce costs for businesses. Establishing effective public-private dialogue would increase reform ownership and effectiveness.

• Unleashing competition. Reducing the State presence by divesting loss-making businesses operating in competitive sectors to reduce barriers to competition and eliminate distortions. These reforms could save public funds amounting to 1 percent of GDP for more productive public investment.

• Promoting foreign direct investment. This would require phasing out services sector restrictions, and removing behind the border constraints.

• Skilling healthy workers. Strengthening job-matching and skilling programs would help meet changing market demands and produce workers with skills relevant to the private sector.

• Facilitating women into jobs. Increasing access to affordable childcare, strengthening maternity leave arrangements, and addressing gender biases in recruitment and compensation practices could support higher female labor force participation.