Roadmap for Democracy and Sustainable Socio-economic Development 2010-2014

1.1 Introduction........................................................................................................ 1

1.2 Vision: “A Better Fiji for All” ........................................................................... 1

1.2.1 Good Governance and a Truly Democratic Nation ........................................ 1

1.2.2 Progress and Prosperity for All ....................................................................... 2

1.2.3 Peaceful, Non-Racial and United Society....................................................... 3

1.3 Mission and Guiding Principles ........................................................................ 3 Chapter 2 Good Governance.......................................................................................... 5

2.1 Review of Issues and Challenges....................................................................... 5

2.1.1 Constitution ..................................................................................................... 6

2.1.2 The Electoral and Parliamentary System ........................................................ 7

2.1.3 National Security ............................................................................................ 8

2.1.4 Law and Justice ............................................................................................. 11

2.1.5 The Accountability Framework .................................................................... 19

2.1.6 Public Sector Reform .................................................................................... 21

2.1.7 Indigenous Institutions .................................................................................. 26

2.1.8 Leadership ..................................................................................................... 29 2.2 Policy Objectives, Strategies and Key Performance Indicators ................. 32

2.2.1 Electoral & Ancillary Reforms ..................................................................... 32

2.2.2 National Security .......................................................................................... 33

2.2.3 Law and Justice ............................................................................................. 34

2.2.4 Enhancing the Accountability Framework ................................................... 36

2.2.5 Public Sector Reform .................................................................................... 38

2.2.6 Indigenous Institutions .................................................................................. 40

2.2.7 Leadership ..................................................................................................... 41 Chapter 3 Economic Development .............................................................................. 43

3.1 Macroeconomic Performance ........................................................................ 43

3.1.1 International Economy .................................................................................. 43

3.1.2 Regional Economy ........................................................................................ 43

3.1.3 Domestic Economy ....................................................................................... 44

3.1.4 Private Consumption..................................................................................... 45

3.1.5 Inflation ......................................................................................................... 45

3.1.6 Investment ..................................................................................................... 45

3.1.7 Interest Rates ................................................................................................. 46

3.1.8 Government Revenue and Expenditure ........................................................ 47

3.1.9 Debt Position................................................................................................. 47

3.1.10 Trade ......................................................................................................... 48

3.1.11 Foreign Reserves and the Exchange Rate ................................................. 48 xx

3.2 Sectoral Developments.................................................................................... 49

3.2.1 Macroeconomic Management ....................................................................... 49

3.2.2 Tourism ......................................................................................................... 49

3.2.3 Manufacturing and Commerce ..................................................................... 50

3.2.4 Information and Telecommunications .......................................................... 51

3.2.5 Micro, Small and Medium Enterprises ......................................................... 53

3.2.6 International Relations and External Trade .................................................. 53

3.2.7 Employment and the Labour Market ............................................................ 54

3.2.8 Land Resources Development and Management .......................................... 56

3.2.9 Sugar ............................................................................................................. 57

3.2.10 Non-Sugar Agriculture and Livestock ...................................................... 60

3.2.11 Forestry ..................................................................................................... 61

3.2.12 Fisheries Resources ................................................................................... 63

3.2.13 Mineral and Groundwater ......................................................................... 65

3.2.14 Financial Services ..................................................................................... 67

3.2.15 Transport ................................................................................................... 68

3.2.16 Energy ....................................................................................................... 69

3.2.17 Water and Sewerage ................................................................................. 71 3.3 Policy Objectives, Strategies and Key Performance Indicators ................. 72

3.3.1 Macroeconomic Management ....................................................................... 72

3.3.2 Tourism ......................................................................................................... 73

3.3.3 Manufacturing and Commerce ..................................................................... 75

3.3.4 Information and Telecommunications .......................................................... 76

3.3.5 Micro, Small and Medium Enterprises ......................................................... 78

3.3.6 International Relations and External Trade .................................................. 79

3.3.7 Employment and the Labour Market ............................................................ 80

3.3.8 Land Resources Development and Management .......................................... 82

3.3.9 Sugar ............................................................................................................. 83

3.3.10 Non-Sugar Agriculture and Livestock ...................................................... 84

3.3.11 Forestry ..................................................................................................... 85

3.3.12 Fisheries Resources ................................................................................... 86

3.3.13 Mineral and Groundwater ......................................................................... 88

3.3.14 Financial Services ....................................................................................... 89

3.3.15 Transport ................................................................................................... 93

3.3.16 Energy ....................................................................................................... 96

3.3.17 Water and Sewerage ................................................................................. 98 Chapter 4 Socio-Cultural Development .................................................................... 100

4.1 Review of Social Development ..................................................................... 100 4.1.1 Human Development Index and Millennium Development Goals............. 100

4.1.2 Global Partnership for Development .......................................................... 100

4.1.3 National Identity and Social Cohesion ....................................................... 102

4.1.4 Poverty Reduction ....................................................................................... 103

4.1.5 Housing and Urban Development ............................................................... 106

4.1.6 Social Justice............................................................................................... 108

4.1.7 Education and Training ............................................................................... 109 xxi

4.1.8 Health .......................................................................................................... 110

4.1.9 Gender Equality and Women in Development ........................................... 112

4.1.10 Children and Youth ................................................................................. 115

4.1.11 Sports Development ................................................................................ 117

4.1.12 Environmental Sustainability .................................................................. 118

4.1.13 Culture and Heritage ............................................................................... 121

4.1.14 Disaster Risk Reduction and Disaster Management ............................... 122

4.1.15 Rural and Outer Island Development ..................................................... 124 4.2 Policy Objectives, Strategies and Key Performance Indicators ............... 126

4.2.1 Building National Identity and Social Cohesion ........................................ 126

4.2.2 Poverty Alleviation ..................................................................................... 127

4.2.3 Housing and Urban Development ............................................................... 128

4.2.4 Social Justice............................................................................................... 130

4.2.5 Education and Training ............................................................................... 131

4.2.6 Health .......................................................................................................... 133

4.2.7 Gender Equality and Women Development ............................................... 135

4.2.8 Children and Youth ..................................................................................... 138

4.2.9 Sports Development .................................................................................... 139

4.2.10 Environmental Sustainability .................................................................. 140

4.2.11 Culture and Heritage ............................................................................... 141

4.2.12 Disaster Risk Reduction and Disaster Management ............................... 142

4.2.13 Rural and Outer Islands Development .................................................... 143 Chapter 5 Implementation and Monitoring Mechanism ........................................ 145

5.1 The Implementation Framework................................................................... 145

5.2 The Monitoring Mechanism .......................................................................... 146

5.2.1 Composition and Functions of the NPCC ................................................... 146

5.2.2 Management Information System ............................................................... 149 xxii CHAPTER 1 Chapter 1 Vision, Mission and Guiding Principles

1.1 Introduction The Roadmap for Democracy and Sustainable Socio-economic Development (RDSSED) 2010- 2014 sets out a strategic framework to achieve sustainable democracy, good and just governance, socio-economic development and national unity. The key foundation of the Roadmap is the Peoples Charter for Change, Peace and Progress (PCCPP) which was compiled through an unprecedented nationwide consultation process, involving a wide range of stakeholders. The Roadmap is logically aligned to the mandate handed down by His Excellency, the President in 2007, as well as the Strategic Framework for Change announced by the Prime Minister on 1 July 2009. In order to ensure an inclusive approach, ownership and successful implementation, the Roadmap has been compiled in consultation with private sector, civil society and government to take on board the current political, social and economic situation, both on the international and domestic fronts. This chapter outlines the Vision of the Roadmap, together with the Mission and Guiding Principles that Government will follow in implementing policies. The Vision is a statement of Fiji‘s aspirations in the short, medium and long term. The Mission and Guiding Principles summarize the approach and philosophy that Government will adopt in designing and implementing policies to achieve the Vision. Chapter 2 reviews governance issues and challenges and sets out the policies, strategies and key performance indicators for the next five years. Similarly, reviews and policies, strategies and key performance indicators for economic and socio-cultural development are addressed in chapters 3 and 4 respectively. Chapter 5 outlines the implementation and monitoring framework of the Roadmap.

1.2 Vision: “A Better Fiji for All” The objective of the Roadmap is to identify and implement policies to take the country forward to achieve the collective vision of ―A Better Fiji for All‖. This vision should be shared by all citizens of Fiji. A better Fiji is one that is well governed, truly democratic, progressive, prosperous, non-racial, united and peaceful.

1.2.1 Good Governance and a Truly Democratic Nation Fiji needs to entrench a culture of good governance in particular a greater commitment to equality under the law for all people regardless of race, gender or circumstance in all areas of Government and throughout society in order to end the cycle of coups and achieve sustainable democracy. The formulation of a new Constitution, which is fair and just, will provide a solid foundation and framework for rebuilding the nation, is a fundamental component of this Roadmap. Equally important is electoral reform to bring about fair and free elections. The 1 current electoral system will be reviewed to promote racial tolerance and unity and eliminate ethnic based elections, a major impediment for national development. To improve the accountability framework, improve access to justice and strengthen the operation of the rule of law, key governance institutions responsible for maintaining law and order and holding Government accountable will be enhanced in the medium to long term. Code of Conduct and Freedom of Information Decrees will lead to greater accountability on the part of holders of high public office and to wider access by our citizens to Government information and processes. Further legal reforms will be implemented to enhance accountability, and maintain freedom of the media in Fiji. Good governance of the indigenous population will be addressed through the implementation of good governance practices in indigenous institutions. A new national security framework will be adopted to enhance coordination and improve the State‘s response to security threats to the nation, including a re-defined role for the military that incorporates the concept of human security to improve its relationship with civilian Governments and the people. It is imperative that the Public Service must be efficient and effective in both capacity and performance in the 21st Century. It will instill a new performance and service – oriented culture – one that values high productivity, smarter and effective work systems and enforces merit based appointments. It will be lean and accountable to those it serves.

1.2.2 Progress and Prosperity for All Progress, prosperity and decent living standards can only be achieved when the economy is growing. The financial and economic recession experienced worldwide, compounded by high occurrence of natural disasters and flash floods and our vulnerability have adversely affected Fiji‘s economy causing below par performance. The pro-growth and pro-poor measures announced in the 2009 Budget in relation to raising exports, enhancing domestic production, increasing private sector investment and infrastructure development, are in progress and these are expected to contribute to positive growth in 2010 and beyond. Enduring solutions on the issue of access to land for productive economic and social purposes will be developed. Major land reforms will be pursued through a genuine consultative process with all stakeholders. Of major importance will be the need to ensure that the interests of landowners and tenants are addressed in a holistic and equitable manner. Prosperity also means making sure that all people share in the benefits of growth and in the opportunities which it generates for improving living standards. Particular emphasis will be placed on directing adequate resources to core priority sectors of health, education, housing, micro finance initiatives and infrastructure development, particularly in depressed and under- developed regions, in both rural and urban areas. National Minimum Wage and the enhancement of productivity will be addressed. Communities and Community Based Organizations will be empowered through capacity building programs. Local plans will be developed and implemented to enable greater access to social services and economic opportunities. 2 Narrowing the income and opportunity disparities that exist in society will also contribute to a greater sense of national identity and social cohesion. This is important in achieving stability and peace in the country. Peace, stability and a feeling of security are essential to achieve sustained high economic growth, and prosperity. In sharing the benefits of growth, we must ensure that development does not impact negatively on the environment in order that our future generations may also enjoy the benefits of our natural resources.

1.2.3 Peaceful, Non-Racial and United Society Achieving peace, racial tolerance and unity in our multi-cultural country is a long term commitment that must be vigorously pursued through building understanding amongst leaders and communities at all levels - from local to national, as well as through recognising and appreciating the contribution by the different communities, to nation building. This is essential for peaceful co-existence and social cohesion in our multi-cultural society. National identity through a common name is critical for building social cohesion, elimination of racial discrimination and developing a united society. To change for the common good, civic and cultural education will be pursued with vigor, focusing on our shared values and interests. As a long term commitment, the initiatives for building social cohesion and national unity will continue well beyond the duration of the Roadmap. These include civic and multicultural education, the teaching of vernacular languages and comparative studies on religion for better appreciation and understanding of other cultures. Government recognizes, accepts and deeply respects that the i-taukei and other communities in Fiji have their cultures, histories and sense of identities that they deeply cherish and that these qualities have enabled them to contribute effectively, in great measure to the development of Fiji as a multicultural, progressive democratic nation. For the people of Fiji to build and develop a deeper sense of multicultural nationhood into the future, we must ensure that all communities‘ interests that give each of them their identities and sense of place and belonging to Fiji must be recognized and respected in our relationship and mutual conduct.

1.3 Mission and Guiding Principles Government‘s Mission is to develop and implement the best political, social and economic policies in order to advance the goals of Good Governance, Prosperity, Peace and National Unity. Government has consulted widely with the private sector and with non-government organizations to identify the policies appropriate to the current social and economic situation in Fiji. Based upon these shared priorities, the Roadmap will best serve the needs of national unity, peace and harmony. In pursuing its Mission, Government will abide by a number of Guiding Principles. These are:  Equality and dignity of all citizens; 3  Respect for the diverse cultural, religious and philosophical beliefs;  Unity among people driven by a common purpose and citizenship;  Good and just governance;  Sustainable economic growth;  Social and economic justice;  Equitable access to the benefits of development including access to basic needs and services;  Merit- based equality of opportunity for all; and  Complying with international commitments. 4 CHAPTER 2 Chapter 2 Good Governance

2.1 Review of Issues and Challenges Deteriorating governance has been a major problem in Fiji since Independence. An electoral system that is race-based, the lack of accountability, inefficient service delivery throughout the public sector and a weak national security framework have all contributed to political instability, the cycle of coups, and a general lack of public confidence in the system of Government. The vast majority of the population desperately wants to see Fiji put an end to the cycle of coups. A wide range of factors have been identified as contributing to the coups in their own different ways from the complex relationship between ethnicity and politics, which has led to tension and political instability to socio- economic conditions giving rise to political grievances. Weak and unjust systems of governance including the role of the military have also heightened conflict as have other sources of power in Fiji, traditional leadership arrangements, such as the churches and the media. There is a need to entrench a culture of democratic good governance such that it becomes the dominant political thinking and behaviour of the people of Fiji. Principles of good governance need to be applied to both the formal governance framework, to the institutions within it, and to how the country is governed on a daily basis in terms of policy formulation and decision making. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and several other UN bodies, describe good governance as having eight major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law. It assures that corruption is minimised; the views of minorities are taken into account; and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society. Various indicators have been constructed to measure various aspects of government activities and governance quality. These include the Worldwide Governance Indicators (WGI), the University of the South Pacific‘s Composite Governance Index and Transparency International‘s Corruption Perception Index. The WGI measures six aggregate governance indicators: (i) Voice and Accountability; (ii) Political Stability and Absence of Violence; (iii) Government Effectiveness; (iv) Regulatory Quality; (v) Rule of Law; and (vi) Control of Corruption. 5 The 2008 WGI survey Table 1: Five Year Comparison of WGIs (Percentile Rank 0-100) Governance 2004 2005 2006 2007 showed 2008 that Fiji‘s Indicator percentile rank had Voice and 51.4 56.7 27.9 35.6 worsened for all but two 29.3 Accountability dimensions of Political Stability 57.7 59.6 44.2 45.2 41.1 governance, which Government 37.9 55.5 53.1 37 16.1 improved only slightly Effectiveness from 2007 figures. Regulatory Quality 24.4 39.5 36.1 33.5 24.6 Overall very low ranks Rule of Law 51 51.9 52.4 33.8 35.9 were recorded for all Control of Corruption 55.3 35.4 44.7 44.9 46.4 governance indicators Generally since 2006 most of the indicators have worsened, with a majority falling below the 50th percentile rank. In comparison, Fiji ranked well below Samoa, Vanuatu, American Samoa, Kiribati and Tuvalu in almost all governance indicators in 2008.

2.1.1 Constitution On 10 April 2009 His Excellency the President abrogated the 1997 Constitution to allow the Government to implement the reforms aimed at entrenching a culture of equal opportunity as envisaged under the Peoples Charter. The State is now re-established under Presidential Decree[s], which continues to respect the independence of the judiciary and accountability institutions and the operation of other key arms of the State, except for Parliament. The adoption of a new Constitution is now a major priority for Government. Any new Constitution will of course have to recognise the basic constitutional principles, which have existed in Fiji since Independence such as sovereignty, parliamentary democracy, the separation of powers and the protection of basic human rights under a Bill of Rights and supremacy of the rule of law. Government will also ensure that the underlying principles of the Peoples Charter in particular the principle of equal opportunity and equality under the law for all citizens regardless of race, gender or circumstance in all areas of Government and society are also recognised. To ensure public confidence the new Constitution is likely to retain many of the non-contentious provisions of the 1997 Constitution and will incorporate major reforms proposed under the Peoples Charter including: i. adoption of an Open List Proportional Representation electoral and voting system; ii. adoption of the common name ―Fijian‖ for all citizens and to change the official name of the country to ―Fiji‖; iii. provision that no coup can abrogate the Constitution; iv. enhancing and clarifying the role of the military and the country‘s national security framework; v. stronger protection for the application of the Bill of Rights such as adoption of CEDAW definitions for discrimination against women and the girl-child; and 6 vi. proposals to strengthen the operation of State services and the accountability framework.

2.1.2 The Electoral and Parliamentary System Fiji‘s single member (majority) electoral system has been in place since Independence in 1970 and has always provided for communal representation. In 1990, the system was altered to guarantee indigenous Fijians control of the House of Representatives. General elections in Fiji between 1972 and 1994 were conducted under the First-Past-The-Post (FPTP) electoral system. In 1996, the system was subjected to extensive review as part of the overall review of the 1990 Constitution by the Reeves Commission. In 1998, based on recommendations made by the Reeves Commission and also the Parliamentary Select Committee, the electoral system was changed to implement the Alternative Vote (AV) system. None of the three general elections (1999, 2001, 2006) held under the AV system have been fair. They have all yielded highly distorted results where certain parties win far too many seats considering their support, while others languish with few or no seats even with reasonable support. If Fiji wants to be a genuine democracy, it cannot employ electoral arrangements that violate democratic principles. While Fiji‘s political problems cannot all be laid at the door of the present electoral system, there is no doubt that it has had seriously negative effects on Fiji‘s political life. According to the Reeves Constitution Review Report, race-based politics have become inevitable in Fiji as a direct result of communal voting and representation in Parliament. Furthermore, the 2008 Peoples Charter for Change, Peace and Progress, State of the Nation and Economy (PCCPP & SNE) Report noted that this system has directly contributed to the political instability leading to the coups and at times the complete breakdown in law and order. The communal voting and representation system set out under the 1997 Constitution is flawed in a number of areas because:  it does not conform to the United Nations Declaration on Human Rights and the Convention for the Elimination of All Forms of Racial Discrimination;  it has led to political instability. The complex relationship between ethnicity and politics has led to tension and contributed to Fiji‘s coups;  it has not achieved the objective of drawing the country together or of protecting the interests of identified ethnic groups. In fact, socio-cultural factors and issues relating to identity and culture have become politicised and become the basis for mobilization; which is one of the contributing factors to Fiji‘s coups; and  the demographic change whereby the indigenous people now form the majority population does not warrant any special arrangement to protect their interests. Besides the excessive use of communal or reserved representation in violation of basic human rights principles, this electoral and voting system is unfair due to the: 7  lack of equal suffrage given the disproportional number of voters between single member constituencies;  use of preferences producing results that do not accurately reflect the will of the people, as evidenced by the lack of representation for certain political parties who have received a fair proportion of first preference votes;  communal voting and representation using a single member constituency or majority/plurality electoral system has also made it impossible to encourage a move away from race-based politics as political parties only need to appeal to specific ethnic interests to secure seats; and  the complexity of the current system requires a high level of literacy, which has led to an unusually high number of invalid votes (9% in 1999, 12% in 2001, and 9% in 2006). Fiji needs an electoral and voting system that more accurately reflects the will of the people to enable ‗government of the people, by the people, for the people‘ based on principles of equal suffrage and equal opportunity for all voters regardless of race, gender or circumstance. In the short term, steps will be taken to formulate the appropriate constitutional and legal framework to facilitate the adoption of the country‘s electoral and parliamentary system under the new Constitution in 2012. Further ancillary issues to be addressed include: a. the size and composition of Parliament; b. compulsory voting; c. the voting age; d. eligibility of candidates; e. residency restrictions on the right to vote; f. electoral rules and regulations to ensure free and fair elections; and g. strengthening the capacity of electoral administrative bodies. Action will be taken to strengthen the effectiveness of the country‘s electoral administrative bodies and processes to enable the holding of free and fair elections. The continued development of an effective voter registration system is an immediate to short term measure. Furthermore, an ideal organisational structure for the Elections Office will need to be in place by 2012 to facilitate preparations for the next general election in 2014.

2.1.3 National Security Fiji‘s national security concerns encompass a broad range of areas including protecting the country‘s sovereignty from attack, ending the cycle of coups and maintaining law and order. It also encompasses Fiji‘s interests in protecting its tourism industry or offshore environment; border security; protective security; emergency management and effective coordination of disaster relief. Essentially the functions of security agencies are 8 interlinked. Effectively addressing these areas provides the platform for the peace and stability that is vital for socio-economic growth and national development. On a broader perspective, the Ministry of Defence, National Security & Immigration formulates and implements policies relating to the nation‘s security in the areas of counter terrorism, border control, emergency management, defence, and law and order. The implementing agencies consist of the Republic of Fiji Military Forces (RFMF), Fiji Police Force, Department of Immigration, Fiji Islands Customs Service, Department of Emergency Management and the Financial Intelligence Unit (FIU). Serious threats to public health and the environment may also require input from other agencies such as the Ministry of Health and Department of Environment. The RFMF is primarily responsible for defence and plays a supportive role to the Police on internal security. In pursuing its foreign policy, Government has engaged the RFMF and the Police on international peacekeeping duties, while the RFMF has been engaged in subsidiary roles such as nation building, youth training & infrastructure development in rural areas, protection of Fiji‘s 200 mile Exclusive Economic Zone (EEZ), support operations during disasters, emergencies and maritime search and rescue. The security and management of Fiji‘s border, administration of citizenship and facilitation of migration and control functions at our major ports and airports are important issues to be addressed. This is more so in light of the global rise in people and drug trafficking, identity fraud, money laundering, prostitution and illegal immigrants. The collaborative effort of the Departments of Immigration, Quarantine, Customs and the Border Police is critical in this regard. Counter terrorism activities have also become a permanent feature of global, regional and national consideration. The growing sophistication of terrorism could continue to dramatically change the security landscape globally; and the need for cooperation of inter-agency stakeholders in future security operations, including on a regional basis, is vital. Related to terrorist activities and also to corruption and wider economic crimes is the need to monitor flow of funds through the financial system, both domestically and internationally. In this regard, the Financial Intelligence Unit (FIU) plays a critical role in monitoring the flow of funds through the financial system to identify and investigate suspicious transactions related to money laundering, corruption and other illegal activities and provide this information to investigation and enforcement agencies. Fiji is prone to natural disasters and it demonstrates the need for having effective disaster management policies and a more effective legal framework and action plan. So far, opportunities to gauge the effectiveness of disaster management plans only arise during a natural disaster and more is needed in terms of providing for disaster management drills at the national and local level in relation to the use of State resources to provide assistance. 9 The vast majority of Fiji‘s population wants to see an end to the cycle of coups as it ruins lives; destroys social and economic opportunity; and leaves lasting fissures within society. The Peoples Charter proposes a set of 14 key principles and specific recommendations that require comprehensive action towards ending the cycle of coups. The key principles are aimed at:  improving national security coordination through a national security framework that provides for the formal establishment of a National Security Council (NSC) to effectively control and coordinate appropriate responses to all national security threats and allow for greater public accountability for national security; and  realigning the role of the military to place greater emphasis on the concept of human security to facilitate greater involvement by the RFMF in providing for basic needs and improving its relationship with the people. This national security framework needs to be established under the new Constitution to strengthen coordination and improve the State‘s response in all areas. The NSC will control and respond to national security threats. The composition and role of the RFMF as a security institution will remain the same given the very real potential for disruptive politics leading to conflict and instability. However, this role will be redefined under the national security framework and expanded along the human security paradigm. Formal measures will also be put in place to ensure:  the Police remain the primary law and order institution and the point at which the military can intervene is clarified;  there is provision for the clear accountability of the military to civilian governments through a redefined relationship; and  the military remains politically neutral at all times. Internal reviews will be carried out by the Ministry of Defence and other national security agencies including the RFMF and Police Force in the implementation of these recommendations. Subject to formal adoption of these recommendations, a plan of action will be developed to facilitate implementation from 2010 onwards particularly in relation to the incorporation of a human security framework into the operations of the RFMF. The adoption of formal counter-terrorism measures remains a priority and progress will be made towards the revival of a national intelligence agency. The National Intelligence Agency (NIA) is expected to become operational in 2010. Another priority is the on- going implementation of the Disaster Management Act beginning with the establishment and subsequent merger of the Emergency Management Unit with the National Disaster Management Office. Border control systems will be strengthened beginning with a review of the operational machinery. It is also imperative that institutions charged with national security responsibilities are adequately resourced to facilitate the effective execution of their roles and functions. 10

2.1.4 Law and Justice The rule of law must be a basic feature of an effective system of democratic governance. For there to be effective and efficient rule of law, the different parts of the legal system need to operate and interact in the following way: i Constitutional Rule: the existence of a set of basic rules and principles by which the people of Fiji have agreed to be bound; ii Government and other State institutions are subject to the law; iii The law making functions vested in an independent legislature whereby laws can only be changed by an established process that is transparent and accountable; iv Impartial and independent courts exist to interpret the law; v Laws are transparent and accessible, particularly for the most vulnerable; vi Laws are enforced and interpreted consistently and their application is efficient and timely; and vii Laws uphold and protect basic human rights in particular that all citizens are equal under the law and should not be discriminated against on the grounds of race, gender or circumstance. The effectiveness of the Law and Justice Sector in part depends on the ability of the different institutions to operate together in a coherent, coordinated and mutually supportive way. 11 Box 2.1: Fiji’s Law and Justice Sector Legal Framework: As provided for under the Constitution, Acts of Parliament, Regulations and Decrees, and the common law of Fiji. The Courts: Consisting of the Supreme Court, Court of Appeal, High Court, Magistrates Court and Small Claims Tribunal. Law Enforcement: The Fiji Police Force, public agencies that enforce specific laws like FIRCA, FICAC, LTA etc. and non-government policing initiatives like private security firms. State Law Officers Fiji‘s Attorney-General and the Solicitor-General and all Government lawyers. Prosecution Services: The Director of Public Prosecutions and Police Prosecution Service plus some of the other agencies referred to above. Parliament: This includes the Justice, Law & Order Sector Standing Committee of the House of Representatives. Mediators and Arbitrators: Chief Tribunal – Employment Tribunal, Agricultural Tribunal, Commerce Commission. The Penal System: Fiji Prisons and Corrections Service. Legal Profession: Members of the Bar and the Fiji Law Society. The work of the Legal Aid Commission is also relevant in this regard. Human Rights and Law Reform Bodies: Fiji Law Reform Commission and Fiji Human Rights Commission. Civil Society Organisations: Non-Government organisations and community bodies focused on the promotion of human rights and other matters related to the administration of justice. Technically, the Law and Justice Sector is operating reasonably well. In many areas of the legal system where significant problems existed a few years ago, progress has been or is being made. The Australia/Fiji Law and Justice Programme, now suspended, was starting to achieve modest successes in improving the operation of different institutions in the sector. For the first time, it was starting to function and operate as a sector and at a more strategic level in addressing problems such as smoothing out the operation of the criminal justice system and overcoming delays in prosecutions. The program had assisted Fiji courts and other agencies to reduce case back logs; improve the treatment of juvenile offenders; expand access to legal aid; and to establish a Family Court and associated counselling service. It was also instrumental in improving community policing and the operation of the prosecution service. The law revision project is near completion. Departments are now vetting revised laws relevant to their portfolios. Upon completion, the laws will be made available on-line. The cycle of coups has adversely affected the operation of the rule of law requiring reform measures to the criminal justice system to strengthen the sanctions against coups. Preventing further coups is now a priority for the law and justice sector and action is 12 needed to implement the 14 key principles for ending the coup culture, in particular measures that strengthen the penalties and operation of criminal law in relation to offences related to coups, particularly convictions for treason. There is scope for further improvement in overcoming the impact of the coups; accountability in the judiciary; giving effect to law reform recommendations; strengthening the effectiveness of law enforcement; ensuring greater public awareness of the law and access to justice for all citizens. The Courts System A number of key issues have been identified as being relevant to the effective and efficient disposal of cases (both civil and criminal) by the courts, some of which are highlighted below: a. Size of the Judiciary: the number of Judges, Magistrates and other judicial officers (including the creation of new positions like Master of the High Court); b. Court Administration: improved case management in relation to pre-trial motions; c. Jurisdiction: specialised courts and related matters; d. Legal Profession: the performance and conduct of all legal practitioners including Government lawyers and prosecutors; and e. The availability of alternative Dispute Resolution and more formal settlement procedures. Court congestion and a backlog of cases is currently the major hindrance to providing equal access to justice and ensuring the effective enforcement of law through the court system. The Beattie Report (1994) highlighted some reasons for delays in the ―disposal of the business of the Courts‖, which is still valid today. This mainly relate to the conduct of the legal profession and court administration in the performance of its functions. Statistics for 2006 indicate that of the total number of contested cases set down for hearing in a court of law, 62.5% were either adjourned or withdrawn and that on average it takes 18 months to dispose of civil cases (particularly in the Magistrates Court). However, the implementation of some of the recommendations of the Beattie Report in relation to case management by the courts are showing signs of improving the effectiveness of the courts particularly in relation to the disposal of civil actions by the High Court of Fiji. Delays in the court system, particularly in the High Court, have been reduced with most cases now being disposed of within a calendar year. Prior to the implementation of these measures, it could take up to three to five years to bring a civil action to trial. However, there are still some long outstanding cases that have been heard, but where judgements have not yet been handed down. Efforts are on-going to address these issues many of which are set out in the Reports on Fiji‘s Law and Justice Sector. Measures to be taken call for greater cooperation and coordination between major stakeholders namely the Judiciary, the Director of Public Prosecutions, and also the Fiji Law Society particularly in relation to the development of 13 standards that need to be met to ensure cases are handled properly and disposed of efficiently. The efficient disposal of civil cases is of particular importance for private sector activity and the development of a market economy that recognises enforceable contracts and enforceable property rights. In many jurisdictions legal and administrative reforms have or are being pursued to improve the efficiency and effectiveness of court systems, which include the implementation of alternative dispute resolution mechanisms that promote conciliation, mediation and arbitration. In Fiji, foreign investors already enjoy access to alternative dispute resolution mechanisms under the Foreign Investment Act 1999 and the legal framework for industrial relations has always provided alternative dispute resolution, which the new Employment Relations Promulgation (2007) seeks to improve on. The issue of judicial independence is a continuing concern to the general public. The need for fiscal autonomy and the provision of adequate resources to enable the effective performance of its functions is one particular area that does require consideration. The UN Basic Principles on the Independence of the Judiciary provides that it ―is the duty of each Member State to provide adequate resources to enable the judiciary to properly perform its functions.‖ The Commonwealth Latimer House Principles also set out guidelines for member States on issues to preserve the independence of the judiciary that relate to court administration. While allegations of corruption within the judiciary (the magistracy) and the public sector as a whole remain a pressing issue – the establishment of the Fiji Independent Commission Against Corruption (FICAC) and creation of new criminal offences which deal with all issues of corruption, appear largely sufficient at this stage to address this issue. However, the adoption of the conduct standards recommended above should also have some impact on addressing these concerns. The issue of creating specialised courts has also been raised as one way of assisting the people of Fiji by giving particular and specialised attention to particular types of legal cases. There is already a specialised division of the courts to deal with family and juvenile matters, and the recent Employment Relations Promulgation establishes a separate division for employment matters. FICAC supports the creation of a corruption division of the High Court. In addition to the adoption of a new Constitution to put in place the basic framework for the operation of the rule of law, many more specific measures are needed to strengthen the law and justice sector. The people of Fiji not only need to know what the law is, they also need to be assured that they live in a society where the law is respected, honoured and obeyed by all; and where all citizens are treated equally by the courts and other legal and State institutions. To achieve this, measures will be implemented to strengthen the independence and accountability of the judiciary. This involves the adoption and enforcement of conduct 14 standards for judges, magistrates and other judicial officers will be carried out in accordance with the Administration of Justice Decree 2009. To improve the efficiency of the courts in disposing of cases, recommendations by Beattie and also by Connors1 in his commission of inquiry report into the Magistracy will also be implemented. Fiji Police Force The Fiji Police Force is charged with the maintenance of law and order, the preservation of peace, the protection of life and property, the prevention and detection of crime and the enforcement of all laws and regulations with which it is directly charged. Without effective law enforcement by the Police Force that combats and constrains criminal behaviour there is a risk of a drift towards an increasingly lawless society, increasingly fearful citizenry and a consequent reduction in economic and social opportunity. People in general have high hopes that these institutions together with the court systems will promote safe communities, greater social freedoms and more confidence in the economy. Public perception is always that Table 1: Five Year Comparison of Recorded Top Ten the crime situation in Fiji Offences Offences2 2004 2005 2006 2007 2008 appears to be worsening although in the last ten years THEFT 2843 3380 3492 3648 3129 there has been an overall drop in AOABH 2858 3333 3237 3230 2946 the number of crimes HBEL 1137 1190 1172 1034 1030 3 committed. However, statistics RWV 806 914 884 807 800 show that in recent years the DRUGS 312 312 333 329 259 frequency of serious crimes has UUOMV 326 363 328 247 285 stayed the same and is relatively DEFILEMENT 75 81 84 133 110 high. Violent crimes against RAPE 92 138 162 130 191 women and children including rape and defilement and ARSON 48 56 44 31 23 robberies with violence continue MURDER 23 23 24 22 20 to be of particular concern. 1 Justice John Connors, Commission of Inquiry Report into the Magistracy, 2008. 2 Assault Occasioning Actual Bodily Harm (AOABH); House Breaking Entering & Larceny (HBEL); Robbery with Violence (RWV); Unlawful Use of Motor Vehicle (UUOMV). 3 In 1997, 22,149 crimes were recorded; whereas in 2007, 18,623 crimes were recorded. 15 Table 2: Five Year Comparison of Crime Detection Rate While the number of crimes committed has reduced, the Year No. of No. of % detection rate needs much Crime Reports Detection improvement. The nature, scope and Reports Detected Rate complexity of crime is also changing 2003 16,949 8602 51 with transnational crimes such as drug trafficking and money 2004 16,574 8,662 52 laundering on the increase; as well 2005 19,050 11,017 58 as signs emerging of a growing sex trade. Illegal immigrants have 2006 19,143 8,187 43 played a part in these trends. The 2007 18,623 8,525 46 unlikely but still real threat of terrorism is an ominous spectre that has changed the way that Police Forces world wide go about their job. Increased concern about crime has led to changes in lifestyles aimed at ensuring greater self-protection and efforts to make the family home and businesses more secure. Private expenditure on security has increased markedly over the last ten years. However, as public surveys suggest, there is still room for raising public awareness on issues related to the avoidance of crime. The Police on their own cannot solve all the problems of law and order in society and partnerships at the national and local levels are essential to the well being of communities. Initiatives such as the Neighbourhood Watch Schemes, Crime Prevention Consultative Committees, Crime Prevention Community Initiated Projects and Police and Citizens Youth Clubs are making helpful and lasting contributions to addressing crime prevention issues. At the school level, the crime prevention initiative in the form of Scholastic Program has been introduced in some secondary and primary schools. The large scale involvement of members of the public in community policing and neighbourhood watch zones throughout the country has added to the success of the Police in reducing crime. Nevertheless, the Police Force sees itself as under serious challenge. Crime remains at a high level, with detection rates on crime not improving. While there is recognition of the need to reorient the Force, its budget, human resources, the need for enhanced training and equipment deficiencies need to be addressed. A key challenge faced by the Police is the changing nature of criminal activities, including the threat of terrorism. This threat is real and although it may not directly affect Fiji, it can influence criminal activities, especially at the borders. The growing scope and complexity of criminal activities such as white collar crime has tested the competence of the law enforcement agencies. The growing scope and complexity of criminal activities such as white collar crime has tested the competence of the law enforcement agencies. The Fiji Police Force, in 16 particular, with limited resources, lacks the capability to tackle serious crimes effectively. The pace of societal and technological changes presents a continually evolving set of challenges for the Police Force. The Force is currently undertaking major projects to reform and modernize the service. This includes organisational restructuring, setting up of the Ready Action Group, Border Police, and equipping of the Forensic Division. There are also ongoing efforts to address the composition of the Force through recruitment of Indo Fijians and women. These initiatives are aimed at improving the effectiveness of the Force. The Force also needs to be fully equipped and resourced to rise completely to the challenge they face. To ensure that Fiji Police continues to meet new challenges, the Force needs to transform itself. Transformation by way of changes in how it does business, in mind set, in culture and in attitude. Changes in society cannot be ignored as they will continue to influence and determine how the Force does its business. For the medium term, focus will be directed towards improving law enforcement through the setting up of task forces to clean up serious and/or prevalent criminal behaviour; through using more advanced policing techniques; extending community policing across Fiji and allowing for greater community involvement in law enforcement. In addition, a stronger focus will be placed on crime prevention at the national level by establishing a Crime Prevention Board. As part of the transformation process for the FPF, leadership capacity and professionalism will also be developed and enhanced. Fiji Prisons and Correction Services The Fiji Prisons and Correction Services (FPCS) is responsible for the safe, secure and humane treatment of persons in custody by providing opportunities to correct offending behaviour, develop work and life skills, and to perform community service. Its two main functions are the provision of safe custody and humane treatment of inmates; and the provision of rehabilitation programmes to those in lawful custody. The FPCS is an important aspect of the justice system. Its existence institutionalizes the end process of our criminal justice system. It is deemed that justice is not carried out until a person who is convicted of any crime has fully served his/her sentence. A good prison system will not only serve its purpose as a penal or custodial institution, but more so, be a deterrent to the commitment of offences. The Prisons Service has 13 institutions nationwide and faces problems of low staff ratios per prisoner population (1:10 compared to the world standard of 1:4), capacity, budget problems and old unhygienic facilities. Most prisoners are relatively young and belong to the 16 to 39 age group. . Recidivism continues to be a major problem, at 56% of all prisoners. The prison population per 100,000 population for Fiji was 131 in 2005. Out of the 20 countries of the Oceania Region for which data is available, only 4 had a higher rate than Fiji. 17 The Prisons Service does not have sufficient resources to cater for the increased number of prisoners entering the system - prisons are crowded; and the Prisons Service cannot deliver quality rehabilitation programs. Crowding affects the ability of prison wardens to rehabilitate and focus on prisoners. To address this issue, the FPCS has also started to encourage other forms of imprisonment in collaboration with other stakeholders like the Police, non government organizations, and the general community. An initiative undertaken by the Australia/Fiji Law & Justice Program (now suspended) was the development of a cross sector agency Community Based Corrections Framework. This effort was enhanced with the support of the current government and has been piloted in selected localities including Ba and Navua. About 120 prisoners are serving their sentences under the Community Work Act 1996 in selected locations. These offenders are supervised on a voluntary basis by retired civil servants and prominent citizens including chiefs and church leaders. The new Prisons and Corrections Act 2006 provides a new focus for the future development of the Service. It emphasises the need to shift the focus from the traditional philosophy of containment to corrections. The new legislation requires the adoption of new, innovative and effective programmes to ensure that the offenders change, do not re- offend nor return to prison. As part of this new philosophy, the Department has launched the Yellow Ribbon Project (YRP), which is essentially about acceptance, forgiveness and giving ex-offenders a second chance. It is about community action in assisting people coming out of prison to reintegrate successfully back into society. The aftercare aspects when offenders are released from prisons have been identified as the weak link in the rehabilitation process of offenders. The YRP is now an integral part of Prison Service and the FPCS will be working closely with key stakeholders on its implementation. A case management framework is also being piloted in prison, with the ultimate objective to carry out an assessment of prisoners based on social and psychological principles in order to better understand the prisoners and mete appropriate rehabilitation programme. Other Components of the Law and Justice Sector Many people living at village and settlement levels still do not have a good understanding of the law and access to justice and other legal services for ordinary citizens remains a concern. Action is needed to further strengthen the awareness of basic legal rights such as the right to counsel and emphasising the right not to incriminate oneself and making the country‘s laws and other legal services more accessible for ordinary people. Improvements in these areas relate to completion of the revision of the country‘s laws, access to legal representation for the most vulnerable and strengthening the law reform process. To address the accountability of the legal profession, recent amendments were made to the Legal Practitioners Act to establish a Legal Services Commissioner to handle 18 complaints against lawyers. Putting in place this new independent enforcement mechanism of conduct standards for lawyers is expected to resolve the many outstanding complaints against lawyers and enhance the accountability of the profession. The new independent disciplinary process for legal practitioners will be actively enforced to maintain their accountability. In addition, work will continue on extending the services of the Legal Aid Commission throughout the country. Formal administrative measures will also be adopted to allow for greater involvement from civil society and bodies like the Fiji Law Society to assist and complement the work of the Legal Aid Commission in terms of promoting public awareness of these basic legal rights. Law revision will be completed and easier access to written laws provided with long term strategies put in place to enhance the role of the Fiji Law Reform Commission. Other on-going strategies to improve access to justice in Fiji include ensuring all legal registries such as those administered by the Registrar of Titles, Registrar-General, Registrar of Companies and Public Trustee continue to make improvements in the provision of their services. This mainly involves capacity building to upgrade facilities to enhance efficiency.

2.1.5 The Accountability Framework The accountability framework comprises the institutions and processes that exist to ensure open and transparent Government. Without these processes there is no public sector accountability. This involves the operations of many state institutions namely, Parliament, through its committee system and other processes, and independent institutions like the Auditor-General, Fiji Human Rights Commission (FHRC) and the Fiji Independent Commission Against Corruption (FICAC). A key function for many of these institutions is to hold Government to account for its actions; a necessary step in maintaining public confidence in the system. The effectiveness of Government‘s internal processes to ensure enforcement of the public service code of conduct and compliance with financial rules and regulations is another key component of the accountability framework. It also requires commitment to allowing the public to access public information and independent enforcement of conduct standards for holders of high public office. A free and independent media and the work of non-government and civil society organisations are also a vital part of the accountability framework. Public perception is that there is little or no accountability for public officials, from holders of high public office to ordinary civil servants, who behave improperly. In the absence of accountability, people are unable to ensure that their Government acts wisely, lawfully and fairly in serving the national interest. Accountability issues are continually raised in the Annual Audit Reports of the Auditor-General on the public accounts of the State and Local Government bodies and by the media. Findings in reports of the Auditor- General regularly highlight non-compliance with public service rules and regulations relating to the poor collection of government revenue; abuse of procurement procedures; 19 irregularities in project management; abuse of resources and facilities; poor cash management; employee misconduct; and inadequate record keeping. The absence of an effective legal framework that guarantees the public a right to access public information, enforces conduct standards for holders of high public office, and maintains the accountability of the media have all contributed to the weakness in the accountability framework. An analysis of investigations carried out by the FICAC shows that corruption occurs throughout the public sector at all levels and has become systemic in certain areas. Presently, the weakness of the accountability framework requires major capacity building, in terms of financial and human resources across the board to strengthen democratic and accountability institutions at a time when downsizing the operating costs of the public sector is a major reform priority. Another area of weakness is the non- performance of functions that require office holders in the accountability framework to be pro-active. There are functions throughout the accountability framework, whereby office holders are required to initiate action in pursuing matters to uphold the accountability of the public sector either through parliamentary scrutiny and the operation of its committee system to investigations being initiated by the Auditor-General. FICAC has been assigned general functions to identify areas of public administration that are susceptible to corruption and recommend measures that need to be taken to strengthen these areas. Institutional memory in terms of how many of these functions are to be carried out needs to be developed. An effective anti-corruption framework that complies with the United Nations Convention Against Corruption (UNCAC) is another area of focus. In 2005, Fiji ranked 57th out of 159 countries in Transparency International‘s Corruption Perception Index (CPI) and it scored below the borderline figure for distinguishing countries that do and do not have a serious problem with corruption.4 Since 2006, Fiji has not been listed on the CPI making it difficult to gauge the impact of significant efforts in recent years such as ratification of UNCAC and the establishment of FICAC, which has led to an increase in arrests and prosecutions for corruption related offences. However, when considering the Worldwide Governance Index aggregate indicator on ―control of corruption‖, our percentile rank has started to improve slightly; from 35.4 in 2005 to 46.4 in 2008, however it is still below the 50th percentile rank. The number of complaints received by FICAC relating to maladministration indicates a high level of dissatisfaction with service delivery throughout the public sector. In 2008, 2,367 complaints were received, a slight increase from the previous year. A little over half of these complaints were corruption related with the majority relating to abuse of office, forgery of documents with intent to defraud and extortion and fraud by public officers. Other complaints received related to delays in the processing of applications and service delivery complaints, which were then referred to relevant authorities. 4 TI considers a score of 5.0 to be the borderline figure distinguishing countries that do and do not have a serious problem with corruption. Fiji‘s score was 4.0. 20 A report by a UNCAC Observer Team on the country‘s progress towards meeting its obligations under the convention will provide the basis for measures that need to be taken to fully develop the country‘s anti-corruption framework. In the meantime efforts to strengthen the capacity of FICAC to enable the effective performance of its functions will continue. Generally, the accountability framework needs to be strengthened to address the concerns highlighted above. This includes capacity strengthening of the country‘s democratic and accountability institutions to entrench a culture of sustainable democracy and good and just governance. This can only be achieved when systems designed to prevent abuse of office, the misuse of public resources and maladministration across the public sector are working efficiently and effectively. Reforms are also necessary for ending the coup culture noting Principle 9 of the 14 Key Principles, which requires the adoption of measures to: ―strengthen the accountability and transparency of State institutions, the private sector and civil society organisations in particular to enhance their adherence to the rule of law.‖ Reforms to the accountability framework will focus on: a. entrenching a culture of democratic good governance through education and broadcast programmes on the principles of democracy and good governance; b. strengthening the capacity of democratic and accountability institutions to ensure effective performance of their accountability functions; c. the adoption of Freedom of Information and Code of Conduct laws to provide for open, transparent and accountable Government; and d. media reforms to enhance industry regulation, protect media freedoms and maintain the accountability of media organisations and journalists.

2.1.6 Public Sector Reform The Public Sector in Fiji is in a serious predicament. Its performance, professionalism, productivity, accountability, cost and commitment have been heavily criticised in recent years. While many public servants try hard to do their jobs as honestly and as effectively as possible, the impact of four coups, weak leadership, the politicisation of the service itself, a massive exodus abroad of skills, competencies and institutional memory, and various other constraints have taken their toll. Pressures for Public Sector Reform (PSR) are emanating from the economic and fiscal performance of the nation, the need to build a service culture that is committed to provide effective and efficient service to the public, the need to modernise work systems, external pressures from international development partners and donor funding communities, and a vocal private sector and civil society. The core paradigm for reforms has been that the quality of governance affects people‘s lives. In other words, where the Public Sector through its institutional structure offers inefficient, ineffective and poor quality programmes, support for national development is likely to be constrained, possibly compromised or even undermined. The World Bank concluded recently that PSR has ‗great potential to reduce poverty‘ and that ‗good 21 government institutions are associated with higher income growth, national wealth, and social achievements‘. The current consensus is thus that PSR matters a great deal for national development, and in at least two ways: first, it will lead to better delivery of the basic public services that affect the living standards of the poor; and second, it will create a climate conducive to private sector development. Civil Service Reform The Civil Service Reform (CSR) Programme commenced in 1994 and was aimed at improving efficiency, productivity, accountability and transparency in the civil service. The three key components of the CSR program are in the areas of: (i) Human Resources Management; (ii) Productivity Management; and (iii) Organizational Management. Major milestones achieved include the restructuring of the Public Service Commission (PSC) in 1997 and 1998; the enactment of the Public Service Act and subsidiary regulations; the development of the Senior Executive Services (SES) Programme; the contracting of Chief Executive Officers (which was later terminated in early 2007); the introduction of three-year industrial relations agreements; the development of the Performance Management System; and the development and implementation of the Service Excellence Awards Framework. Current reform initiatives being undertaken include the review of the government machinery, restructuring/reorganization of government agencies, right sizing, reduction in the retirement age, development of a Human Resource Information System, review and implementation of the Service Excellence Award Framework and business process re- engineering. Other initiatives include the review of disciplinary procedures to speed up the process and the proposed setting up of a Government Information and Referral Centre to become the focal point for information and referral to all other Ministries/Departments. The main priorities with regards to CSR are restructuring, modernising human resource management and remuneration, rebuilding the capacity of the Public Service, and E- government. The restructure of the Public Service, which necessitates the functional reviews of all agencies, is vital to remove duplication and enable human resources and structures to be aligned to serving the public better. Leadership development will also be enhanced to rebuild a committed, visionary, highly competent and more accountable leadership group. Public service leaders will need to play an important role in efforts to rebuild professionalism within the service. Contracting-out opportunities will be further explored as a means of cutting costs. Remuneration systems also need to be modernized, based on demonstrated productivity increases, to reward competent and committed individuals, while at the same time penalizing non-performers. Contract employment arrangements for all members of the SES would be pursued to be completed by the end of 2009. 22 The capacity of the Public Service needs to be rebuilt to a new service-orientated, more accountable and ethical culture in the Public Service. Focus should be placed on human resource planning to meet the Public Service‘s future needs and succession planning by selecting, managing and fast-tracking the careers of promising graduates and middle- level staff. Selected e-government opportunities will continue to be identified and pursued to improve service delivery and internal management in Government Ministries. Public Enterprise Reform The Public Enterprise Reform (PER) policy was first introduced in 1993 as part of an economic reform package. The reform program focused on ensuring that public enterprises provide the maximum benefit to taxpayers through improved management of the enterprises. It was hoped that many of the loss-making enterprises when re-organized and commercially focused would be in a position to provide the Government with a higher return on public investment. The goals of the PER program are to ensure public entities: (i) become more efficient, productive, accountable and better organized; (ii) provide optimum return on investment; and (iii) to establish an appropriate legal framework for each re-organized enterprise. The Public Enterprise Act (1996) provides a comprehensive legal framework for implementing the reform program. Its coverage extends to all Public Sector commercial activities, including those of fully owned companies, statutory authorities and government departments. There are currently 11 Government Commercial Companies GCCs) (including a subsidiary) and 4 Commercial Statutory Authorities (CSAs) under the public enterprises portfolio. GCCs have the sole objective of being profitable while the CSAs in addition to having commercial objectives also have non commercial objectives which can be regulatory or technical in nature, under the line Ministry legislations. In addition, the Ministry also monitors 2 majority owned GCCs, namely the Pacific Fishing Company Limited (PAFCO) and Fiji Hardwood Corporation Limited. Financial performance indicators show that State owned enterprises have performed quite poorly in the last ten years. Returns on Shareholder‘s Funds of existing public enterprises have continued to be about 3% in aggregate. Few public enterprises are able to finance their investments from internally generated funds and the modest target of a 10% return on assets is rarely achieved, overall returns are some 3% and well below the opportunity cost of capital. The government has capital equivalent to 30% of GDP tied up in largely unprofitable public enterprises. In 10 years they have returned only a total of $14m to government through dividends. In part, the variability in performance can be attributed to the political agenda of past governments who had varied perceptions of reforms that led to several ―start stop approaches‖ in the reform process. Other factors include the provision of social service obligations which are not fully paid for, absence of commercial oriented culture and attitudes in the reorganised entities and management not having full commercial 23 autonomy in running the operations. Good corporate governance and management requires the separation and clarification of the powers and responsibilities of ownership, governance and management in public enterprises. Political involvement in the running of enterprises should be limited to priority policy directions that are required to be published. Efforts will be made to reform existing Public Enterprises to ensure their improved performance in readiness for privatization. Public Enterprises involved in food production will be supported to improve our national food security. The reform process under the Public Enterprises Act is in itself a lengthy procedure resulting in planned reform timelines having had to be revised regularly. The Department of Public Enterprise has revised the procedures with the intention to speed up the process so that planned returns are realised early. Apart from the 17 entities under the PE portfolio, work is in progress to reorganise, corporatise and privatise a host of other entities. A set of priorities have been established for the accelerated programme with an indicative work plan up to 2011 which includes:  re-organisation of: (i) Department of Quarantine; (ii) Ministry of Agriculture; (iii) Fiji Islands Maritime Safety Authority; (iv) Management of Government Quarters; (v) Fiji Film and TV Unit; (vi) Coconut Industry Development Authority;  corporatisation of: (i) Department of Water and Sewerage; (ii) Mechanical Engineering and Electrical Sections of the Public Works Department; (iii) Department of Government Supplies; (iv) Department of National Roads; (v) Trade and Manufacturing Accounts (TMA); and  divestment/privatisation of: (i) Food Processors Ltd; (ii) Fiji Tannery; (iii) Ports Terminal Ltd; (iv) Fiji Hardwoods Corporation Ltd; (v) Batiri; (vi) Fiji Ships and Heavy Industries Ltd; (vii) Rewa Rice Ltd; (viii) Government Printing. This can be considered an ambitious, stretch target which recognises the scale of the challenge. But it is achievable. And the greater the extent to which it is achieved the greater the benefits which will be gained for Government and for national economic development. The Public Private Partnerships (PPP) Act 2006 establishes a range of legal options for ownership and operation of entities which fall between full public or private ownership. PPPs are arrangements which, irrespective of the corporate or legal form, bring together State assets or expertise and private sector assets or expertise to provide infrastructure or services at competitive prices. It has the potential to increase the overall efficiency of public infrastructure and service provision whilst reducing demands on Government resources, thus allowing it to concentrate public funds on provision of those goods and services which cannot generate adequate financial returns but do create the social and economic outcomes which Government seeks. 24 Financial Management Reform The Financial Management Reform (FMR) programme which re-commenced in 2001 is geared towards enabling Government to better implement its policies, and deliver public goods and services more efficiently and effectively. The reforms provide the institutional framework for more accountability and transparency, and better management in the use of public resources. It is intended to strengthen and modernize the management of government finances to: (i) better align government policy priorities with budget resources; (ii) adopt a performance focus; (iii) provide more effective control over public spending; and (iv) strengthening accountability and transparency in financial management. The FMR has four key components; namely the (1) Financial Legislation and FMR Policies; (2) the development and implementation of the Financial Management Information System (FMIS); (3) the introduction of Performance Budgeting; and (4) Change Management. The new Financial Management Act and its associated policies and regulations have been in place since January 2004. A progressive approach is being adopted in devolving financial authorities and incentives to Permanent Secretaries, in line with their ability to manage their financial allocations. The automated processes brought about through the FMIS have brought about changes to accounting procedures and processes, resulting in the review of the Finance Instructions. The FMIS implementation was completed in October 2007 with all ministries and departments now ―live‖ with the FMIS. Functional and technical support continues to be provided to all agencies to ensure that all FMIS processes are fully complied with. Ongoing FMIS training is provided for all users, particularly the special user groups such as accounting heads and super-users which focuses on their different areas of responsibilities. The FMIS post implementation activities will mainly focus on agencies retraining, system support, monitoring, development of further system reports and capacity building. Ongoing training and capacity building program continues across government. In addition, Performance Budgeting is being gradually implemented across government, with agencies reporting on the implementation results of one or two budget funded programmes. Over the years, this reporting will gradually extend to cover more programmes as expertise and skills in the area is built up. The implementation of the new FMIS provides opportunities now to ensure better reporting and monitoring of government expenditure and to enhance accurate expenditure management; to improve financial management capacity across all Ministries and agencies; to introduce further improvements to performance measurement of the outputs of each Ministry or agency; and to ensure greater involvement in, and accountability for, financial management by senior managers. More action is needed to better link the budget, financial management, corporate planning and planning reforms to give effect to 25 the Government‘s priorities under the Peoples Charter; to achieve the Government‘s policy objectives; to support the overall Public Sector Reform; and to further improve on the outputs to be delivered by each Government Ministry or agency. Reform Challenges The PSR Programme is aimed at ultimately improving service delivery and the efficiency and effectiveness of the public service. However, challenges abound. The public sector needs a new vision to challenge and inspire its performance. The new vision for rebuilding Fiji‘s Public Sector for the 21st Century should be enunciated in the twelve points highlighted in the SNE, which amongst other things promotes a new workplace culture, a commitment to delivering excellent service to the public, making effective and efficient use of resources. It also emphasizes adopting a leadership style that is inclusive, visionary, professional and empowering. The management of the reform process needs to be improved and strengthened. Proper coordination is required so that reform efforts are balanced and appropriately sequenced. A related concern is that public service unions seem to have developed a lasting antagonistic relationship over PSR issues and have quite effectively undermined much needed changes in the Public Sector from time to time. Another issue that needs to be addressed relates to the unsatisfactory manner in which the relationship between the Government and the Public Sector has developed. Some of this role confusion has happened because of lack of clarity and political involvement which undermines morale and professionalism. It is essential that the independence and professionalism of the Public Sector be restored. A clear demarcation between political roles and Public Sector roles is needed. This demarcation requires that the Minister‘s policy-making and strategic management roles are defined by law, with the Public Sector responsible for delivering outputs and outcomes in accordance with Government priorities. Legal provision should also be made for removal of political involvement in day-to-day management of the Public Sector, and a prohibition placed on interference in merit based selection.

2.1.7 Indigenous Institutions The Fijian Administration is charged under the Fijian Affairs Act to be responsible for the good governance and well being of the indigenous people. Good governance in relation to indigenous Fijian administration is concerned with the application of principles such as accountability, rule of law, transparency, equity, consensus orientation, participation, effectiveness and efficiency and responsiveness. A number of institutions were established to support the advancement of the interests of indigenous Fijians. Its structure and systems were been designed for this purpose. However, questions have been raised about whether they are adequate to meet the 26 concerns, needs and aspirations of all indigenous Fijians, including those residing in urban areas and who have adopted an urban lifestyle. These institutions include: the (i) Bose Levu Vakaturaga (BLV) (Great Council of Chiefs); (ii) Fijian Affairs Board (FAB); (iii) Native Land Trust Board; (iv) Ministry of Indigenous Affairs; (v) Ministry of Provincial Development; (vi) Provincial Councils; and (vii) business development initiatives such as Yasana Holdings, Vanua Development Corporation, the Fijian Trust Fund and Fijian Holdings Limited. Numerous reviews of the Fijian Administration were commissioned by past governments to examine ways in which the performance of these institutions can be improved. One such review included the PricewaterhouseCoopers Review in 2000. The recommendations of this review were not accepted by the Great Council of Chiefs and as such were not implemented by Government. A study commissioned by the FAB in 2005 made substantial recommendations on the institutional strengthening of the Board and the Provincial Councils. These recommendations were endorsed by Government in 2005 but implementation was staggered because of the prohibitive cost of the exercise. Questions were also raised on the effectiveness of the proposed recommendations to address the concerns, needs and aspirations of all indigenous Fijians. The Interim Government commissioned the Independent Investigation of Institutions Fijian (IIIF) in early 2007 to review the roles and to recommend reforms in the Native Land Trust Board, Fijian Affairs Board, Provincial Councils, and business development initiatives such as Yasana Holdings. The report by the IIIF has been adopted by the Fijian Affairs Board. The Board has further examined the report to determine recommendations that are to be implemented, delayed or eliminated. In addition, the Interim Government appointed a six member taskforce in 2008 to review the role of the Great Council of Chiefs (GCC) in its traditional and national role. The review made recommendations to changes to the membership structure of the Council and the direction it should take in its traditional and national roles. This was facilitated through changes to appropriate legislations. A review of the 2005 restructure proposals for the FAB and the Provincial Councils was also undertaken in 2008 and there are new recommendations adopted from the report for implementation. Funding constraints has delayed the implementation of new proposals. The Ministry of Indigenous Affairs has also put in place a 3 year phased implementation plan for its re-organization which has been approved and endorsed by the Public Service Commission. 27 Challenges/Constraints Most reviews undertaken on Indigenous Institutions suggest significant problems of underperformance. In a number of institutions there has been low observance of financial protocols and low participation by stakeholders. Accountability and transparency have been noticeably lacking across institutions. At Provincial Council level, the style of operation is top down rather than truly participative. Tikinas have lacked autonomy in decision-making at grassroot level. The Ministry of Indigenous Affairs recognizes the need for change but is caught between two mindsets that it must deal with in the indigenous population. Due to the lack of practice in good governance, in particular transparency and accountability, as well as a traditional culture of silence, it is not clear what impact some of the indigenous Fijian institutions are having on the indigenous population. The benefits received from these institutions are at times perceived to be unfairly or unevenly distributed. There are many who express suspicion that in the past, in some indigenous Fijian institutions, large amounts of money have been lost, either through mismanagement, corruption, waste or channelling to a small number of elite beneficiaries. The suspicions are further fuelled by the lack of proper audited accounts - in some cases for more than 10 years. While some indigenous owned companies such as Fijian Holdings Ltd and Yasana Holdings Ltd are prosperous, questions remain as to the degree to which this wealth trickles down to ordinary Fijians. The indigenous Fijian Administration‘s operating principles are drawn from colonial times. Then the institutions were concerned with regulation and control of natives in a society that was used to taking direction rather than making decisions that involved business judgments. This has far too often created a state of learned powerlessness and dependency rather than assisting social and economic advancement. This operating paradigm has also created a lack of initiative and drive. Leadership values and capacity are also acknowledged to be part of the problem. Leadership values have tended to favour supporting self-interest and the interests of elites rather than advancing the common interests of local communities. They have also favoured autocracy over more participative decision-making. Some of the other traditional values do not sit well with modern market values. The competitive and work ethics of capitalism also challenge those with laid back attitudes to life. There is also a lack of capacity and understanding of the values of business cultures. Arising from such changes in capacity and culture will come business opportunities. The dual system of indigenous Fijian Administration is no longer justified. The creation of a more integrated organisational structure for indigenous Fijian Administration is warranted rather than continuing with dual bodies, with integrated roles and functions to be identified in relation to advancing the well-being of the indigenous Fijian people and their good governance. 28 Strategic Priorities The adoption of an integrated organizational structure would enable the combining of the best of traditional culture with the modern values needed to promote economic and social advancement and good governance. The new institutional framework should be democratic, inclusive, participative, and entrepreneurial in outlook and dedicated to the practice of good governance. The operating paradigm within which these institutions operate needs to change so that it is more concerned with building local capacity, promoting empowerment and encouraging at least the more enterprising indigenous people to start taking steps towards a more entrepreneurial culture. Giving greater attention to good governance issues should be a top priority in respect of all institutions that are part of the indigenous Fijian administration. This should include amongst other issues; the adherence to a framework for good corporate governance, including a code of conduct and customised guidelines for Provincial Councils; strategic planning involving the setting of published performance targets; participative dialogue processes with stakeholders; adoption of more participative and responsive business practices involving regular consultation with clients on their expectations and on what the institutions have in fact achieved; proper auditing of accounts; proper management of, and accounting for, expenditure; and appointment of staff on merit with a focus given to development of sound human resource management practices. Some role changes are also needed which includes developing a new Vision and related policy development; leadership in winning the support of the indigenous people for the new Vision; operationalising the new Vision, including through a good governance framework; capacity building and the development of entrepreneurial practices.

2.1.8 Leadership Good leadership and good governance are inter-related; good governance cannot be achieved without good leadership. Addressing the issue of leadership is therefore of great importance to the future of the country. Leadership does not only occur at the State or national level. While Fiji needs good leaders at national level to guide and steer, leadership also occurs in the villages, in towns and cities, in the family, in the private sector, civil society and in churches. The lives of ordinary people are most affected by leadership at this level. Effective leadership is therefore needed in a variety of contexts. Various types of leadership interact in Fiji‘s society. On one hand, there are those who lead by virtue of their birthright: while on the other hand, there are democratically-elected leaders who hold office by virtue of election by popular vote. Both sources of leadership are required, although the basis of their legitimacy differs, as does the scope of their responsibilities. 29 At all levels, the type of leadership in Fiji is seen as a contributing factor to many of the country‘s deep rooted problems. Leadership at the national level has always been a subject of debate even during periods of stable Government. One point of view is that the style of political leadership in Fiji has, and continues to be, dominated by ethnic issues solely focused on protecting the interests of one‘s own ethnic community. This style of leadership has contributed to a failure to act in the best interests of the whole nation. The country has experienced four coups in a period of 20 years, which resulted in a decline in economic performance. Significant human capital is leaving the country, and much land remains under-utilised. The country‘s multi-racial population has maintained a certain association for 150 years, but it is one in which neither side feels completely understood or valued by the other, and few leaders at national level have attempted to bring the races together in more than a perfunctory, politically expedient manner. Most educational services, professional associations, and even sporting bodies, are formed along broadly racial lines. Fiji is a country divided ethnically, religiously, politically, educationally, socially, and economically. The failure of transactional leadership in Fiji has also meant that successive regimes have not addressed the fact that more than 60 percent of Fiji‘s people, of whatever race, are living close to, or below the poverty line. This is a major concern because there are enough resources in the country for everyone. However, in governance terms, there is a problem with resource allocation. Fiji has large human resources and physical resources, yet leaders have failed to use them effectively. Leaders also face a number of contradictions between the changing expectations of their responding to the demands of urbanisation and commerce and to the pressures to transform Fiji into a modern state. These pressures, which include issues like globalisation and modernisation, have conflicted with a desire to maintain important aspects of traditional culture. Fiji needs leaders who demonstrate the following leadership qualities: being trustworthy, just, honest, accountable, selfless, competent, open and transparent, and unite groups and communities. They must be better educated and aware of the effect of globalisation and modernisation. A leader must also be visionary as they set the direction taken by a country, community, organisation or group. Leaders must also have the moral courage to make tough decisions in the national interest. The need for Fiji‘s leaders to display selflessness is a major challenge – that is, to lead for the common good and not through self-interest. While the issue cannot be readily resolved there are measures proposed to ensure that those who come forward to serve as leaders are not coming forward for purely personal motives and gains. More direct action is needed to ensure Fiji‘s leaders display those qualities. The ideal is to have leadership that values sustainable democracy, accountability, and other principles 30 of good governance; that society as a whole appreciates and has shared understanding of what is good leadership and expects its adoption by those who enter public life and assume public leadership responsibilities. Generally, there is a need for clear governance processes, and effective governance institutions, which involve both the State and its citizens. Greater importance must be placed on having a governance system based on finding selfless leaders. The public has a role to play too, through being more vocal about their expectations, and their views on how leaders are performing. It is necessary to adopt leadership patterns and behaviours more conducive to reaching the country‘s shared goals. Elements of this include civic education and improved performance appraisal systems for public leaders, systems that are able to reward purposeful leadership and inhibit negative practices through adoption of more effective codes and laws. Leaders in Fiji need to employ a more transformational style of leadership that emphasises inclusiveness and seeks improvements in the economic and social circumstances of all citizens. This type of leadership is the best way forward for Fiji. Acknowledging the role of different types of leaders in Fiji, including women, youth, politicians, religious and traditional leaders, and the need for increased dialogue, is also relevant. Specific actions to be taken to encourage good and effective leadership include: (i) the enactment of a Code of Conduct with appropriate enforcement measures, which also covers local government office holders; (ii) the development of a new leadership model more suited to Fiji‘s emerging development ethos; (iii)leadership training and education at all levels; and (iv) at the national level, putting in place greater incentives to attract capable leaders. 31

2.2 Policy Objectives, Strategies and Key Performance Indicators

2.2.1 Electoral & Ancillary Reforms Goal: An electoral system that allows for free and fair general elections and ensures appropriate representation in Parliament and Government Policy Objectives Strategies Key Performance Indicators Free and fair general  To establish a new legal  Adoption of a new elections and framework that provides for: electoral system appropriate a. a new electoral system  A credible national voter representation in that does not discriminate list with biometric data Parliament and against voters or completed for the next Cabinet. candidates on the general election. grounds of race or  Establishment of key gender; positions within the b. a voting age of 18 years; Elections Office to c. a 5-year term for enable effective Parliament; performance of functions d. the formation of Cabinet by 2011. based on Westminster  General elections under principles of the new system by parliamentary September 2014. democracy; and  Reduction in the number e. appropriate limitations on of invalid votes from an the size of Cabinet. average of 10% to below  To review the need for a 5% for all future general bicameral Parliament, the elections. functions of the Senate and  Public disclosure on appropriate size of the House reconciliation of ballot of Representatives. papers printed and used  To build the capacity of in general elections. electoral administration  Public disclosure on bodies. campaign financing and  Adopt stronger electoral funding of political administrative and regulatory parties. measures as regards the  Full compliance with the implementation of key IDEA Five Criteria for recommendations of the Ethical Electoral 2001 and 2006 International Administration. Observer Missions and SNE Report. 32

2.2.2 National Security Goal: Maintaining national security, peace and stability Policy Objectives Strategies Key performance Indicators Improved  Formal establishment of a  Legal framework coordination to National Security Council. establishing new national meet national  Ratify remaining UN security framework by security Counter Terrorism 2012. requirements Conventions and implement  Coordination of all national all conventions. security matters through  Strengthening of networking newly established National between border and security Security Council by 2012. agencies, including a review  Complete review of of current airport and seaport operational machinery for security arrangements. border control systems by  Policy advice on law 2010. enforcement issues as  Operational framework for regards strengthening key investigating all terrorist point management and activities within Fiji in legislation in relation to: place by 2014, including a. Complete establishment of National implementation of Anti- Intelligence Agency by Money Laundering and 2010. Mutual Legal Assistance  90% success rate for (MLA) legislation; and investigating and b. Review MLA treaties. prosecuting money-  Adoption of appropriate laundering cases. counter-terrorism laws.  Increase detection rate for  Strengthen coordination and intended unlawful entry by effective use of financial data 15% annually from 2010 to to secure prosecutions. 2014.  Strengthen capacity and  15% annual increase in capability to enforce and number of illegal prosecute for people- immigrants removed from trafficking. Fiji from 2010 to 2014.  Develop and maintain  Review of Disaster effective disaster Management Act and communications and early National Plan completed in warning systems. 2011 and implemented by  Improve coordination for 2012. emergency responses to  At least 4 natural disaster natural disasters. training programmes carried out at all levels each year from 2010 – 2014. 33 Goal: Maintaining national security, peace and stability Policy Objectives Strategies Key performance Indicators Redefining the role  Adopt a new legal  Constitutional framework of the military framework clarifying the setting out the role of the relationship between the RFMF by 2012. military and civilian  Human security framework Governments. for the RFMF adopted by  Formulate and implement a 2011. human security framework  Annual increase in for the RFMF. minority composition  Improve the racial balance of within the RFMF from the RFMF. 2010 to 2014. Ending the cycle of  Implementation of Principles  Likelihood of coups coups 1, 3 and 7 of the 14 Key substantially reduced – as Principles for Ending the per desired and targeted Coup Culture as set out in outcomes set out above. the Peoples Charter.

2.2.3 Law and Justice Goal: Maintaining law and order and upholding the rule of law effectively and efficiently Policy Objectives Strategies Key Performance Indicators Improved response to  Review and reform  Reduction in complaints and law and order issues. disciplinary processes for disciplinary offences against the Police Force and Prisons disciplined service officers Service. by 50%.  Carry out survey to  Police Force and Prisons determine the true nature Service yearly expenditure and extent of crime in Fiji. remain within budgetary  Improve the reporting of allocations. crime.  Maintain a detection rate of  Reduce serious crimes at least 70% per year. annually.  Reduction in overall offence  Improve responses to crimes rate by 20% per year. against women and children  70% reduction in serious – upgrading of facilities to crime and road fatalities. deal with these crimes.  Reduction in crimes against  Increase in crime prevention women and children by 20% measures – formulation of a per year. community policing  Reduction in prisons framework. breakouts by 50%.  Establishment of a National  Reduce recidivism by 50%. Crime Prevention Board.  Annual increase in non-  Establishment of rapid custodial sentences and 34 Goal: Maintaining law and order and upholding the rule of law effectively and efficiently Policy Objectives Strategies Key Performance Indicators response units across Fiji. community-at-work orders.  Prison service and facilities to meet international standards by 2020.  Improve programme for rehabilitation of offenders Effective operation of  Greater administrative and  Implementation of the the courts financial autonomy for Beattie recommendations to judiciary. provide greater independence  Improving accountability to the judiciary. for judicial officers.  Adoption and effective  More efficient disposal of enforcement of conduct cases by the courts. standards for all judicial officers.  Adoption of case management procedures for the Magistrates Court to improve efficiency.  Full implementation of the recommendations of the Connors Report to improve the Magistrates Court. Improved access to  Complete the revision of  Revised laws available justice and legal Fiji‘s laws and make them through the Internet by 2010 services readily available. and hard copies published by  Law Reform Commission to 2014. be responsible for the  Revision of laws undertaken revision of laws. annually from 2015.  Extend the work programme  Complaints against legal for the Law Reform practitioners reduced by Commission to cover more 50%. issues of national  Legal Aid services provided importance. in all Magistrates Court  Improve accountability for locations throughout the legal practitioners. country by 2014.  Legal Aid services extended  Achievement of targeted to all major centres outcomes to improve the throughout the country. services of all legal  Increase public awareness of registries. basic legal rights.  Upgrading of legal registry facilities to improve services. 35

2.2.4 Enhancing the Accountability Framework Goal: Productive and transparent democratic and accountability institutions Policy Objectives Strategies Key Performance Indicators An entrenched culture  Teaching good governance  Increased public awareness of democratic good in schools through of principles of good governance incorporation into civic governance and raising education curriculum. expectations of  Development and performance by public broadcasting of officials. programmes on good  Appropriate number of governance through the programmes to be carried public broadcaster. out annually will be  Increased support for civil identified after formulation society involved in of strategies. promoting and advocating  Adoption of Anti- good governance. Discrimination law by  Improve cooperation with 2012. international and regional agencies on good governance projects.  Adoption of 2008 CERD Recommendations for compliance with the Convention for the Elimination of All Forms of Racial Discrimination. Enhanced public sector  Carry out capacity building  Public sector mal- accountability and for accountability and administration reduced by participation in democratic institutions like 10% annually. governance FICAC, OAG, Judiciary and  Audit queries reduced by Elections Office. 10% annually.  Adopt Freedom of  FOI law by 2010. Information law. Implementation of FOI  Adopt a Code of Conduct processes – greater public law to enforce conduct access to Government standards for holders of high documents and information – public office. targeted outcomes to be set  Adopt measures to improve when FOI is implemented. parliamentary oversight  Code of Conduct law by immediately following the 2010 – targeted outcomes to next general election. be set when Code of Conduct is implemented.  Stronger parliamentary committee scrutiny of public 36 Goal: Productive and transparent democratic and accountability institutions Policy Objectives Strategies Key Performance Indicators administration – targeted outcomes to be set when Parliament resumes operations in 2014. A free and responsible  Review and reform media  Effective protection of media media that contributes industry legislation to freedom and enforcement of to good governance provide for regulation of conduct standards for media licensing, foreign ownership organisations and journalists. and independent  Free and accountable media enforcement of professional – efficient resolution of standards of the media. media complaints – targeted  Consolidate and up-date outcomes to be set following laws that give effect to implementation of reforms. constitutional limitations on freedom of the press.  Encourage the recruitment of qualified journalists and an increase in training through existing programs. An effective anti-  Basic legal framework for  FICAC re-established as an corruption framework the existence of an anti- independent constitutional corruption agency set out office with authority to under the Constitution. investigate and prosecute  Set up processes to enable cases of corruption. full compliance with the  Full implementation the United Nations Conventions recommendations of made by Convention Against UNCAC Observation Team Corruption 2003. to enable compliance with  A well resourced UNCAC. Independent Commission  Fiji‘s ranking under Against Corruption Transparency International‘s (FICAC). Corruption Perception Index,  To increase public covering 159 countries, awareness and education improved from the present programmes of dangers of rank of 55. corruption and existence of  Conviction rates of at least anti-corruption measures. 90% per year for all corruption cases. 37

2.2.5 Public Sector Reform Goal: Improved public sector efficiency, effectiveness and service delivery Objectives Strategies KPI Improve  Public service restructuring  Cost of the public service performance and  Functional review of reduced by 30% by 2011 efficiency (cost ministries to determine the (10% annually from 2009- effectiveness) of the most appropriate and 2011) Public Service suitable structure  Number of civil servants  Develop a sequenced PSR reduced to 20,000 by 2011 programme for 2010-2014  Guideline for the  Strengthen accountability for establishment of Ministries / performance Departments  Develop leadership capacity  PSR Programme developed by in the Public Service end 2009  Promote innovation and best  Institutional monitoring and management practices in evaluation frameworks service delivery developed  Improve policy development  Leadership Development and capacity and process Training Plan by end 2010  Increased training and  Service wide capacity building implementation of the Service programmes Excellence Framework  Development and  National HRMD Plan implementation of a National developed by December 2009 Human Resource  Introduction of Service Management & Charters in each agency by Development Plan end 2010  Explore and develop a  Reorganization of public performance based pay and sector training based on reward systems Capacity Needs Assessment  Promote public awareness of and addressing specific and benefits of reform position related skills development. Accelerate the public  Regular reviews and  Simplified public enterprise enterprise reform improvements to PER restructuring process by June programme and processes 2009 improve profitability  Divest public entities  3-5 public entities sold into and accountability of  Outsource government private ownership by 2012 Public Enterprises activities  3-5 government activities to  Develop a contracting out be outsourced by end 2010 framework  Framework developed by end  Corporatisation of key 2009 problem areas of water  Water services corporatised by 38 Goal: Improved public sector efficiency, effectiveness and service delivery Objectives Strategies KPI and roads end 2010  Introduce specially  Roads corporatised by end negotiated profit/return 2011 targets for public enterprises  Improved returns and profit  Reward incentives to be generated from each enterprise based on achievement of  Individual profit/return targets specially negotiated targets set by March of each year  Develop a National Code of  Code developed by September Corporate Governance 2009  Training and capacity building programmes for employees of public enterprises  3-5 enterprises to be further  Further reform of existing reformed annually public enterprises to improve efficiency and profitability  10% growth in  Improvement in synergies of production/processing of local public enterprises in produce agricultural production/processing to ensure food security Improve public  Strengthen expenditure  Improved whole of financial control and enhance budget government financial controls management discipline. and reporting by 2012 practices  Improve revenue  Reduced revenue arrears management and explore  Revenue retention activated revenue retention by when feasible agencies  Resources allocated to priority  Strategic resource allocation sectors in line with policy priorities  Gradual introduction of  Improve cash planning and performance budgeting management  Strengthen financial  Introduce strategic budget accountability clause in PS‘s management practices annual contracts  Strengthen accountability of Chief Accounting Officers 39

2.2.6 Indigenous Institutions Goal: Well governed indigenous institutions for improving the well being and governance of the indigenous people Policy Objectives Strategies Key Performance Indicators Develop a well  Develop a roadmap that  Roadmap developed by 2009 coordinated and properly sequences effective change proposed changes to program Indigenous Institutions and Administration More accountable and  Creation of a more  Integrated organizational transparent indigenous integrated organizational structure in place by 2010 institutions structure for Fijian administration  Vision adopted by end 2010  Develop a common vision  Good governance framework to be a guiding principle for encompassing ethics, the Indigenous Institutions accountability mechanism, disciplinary procedures etc.  Development and developed by end of 2009 and implementation of a good implemented thereafter governance framework covering financial  All outstanding accounts of management, Indigenous Institutions are accountability, audited by Dec 2010 transparency and  Performance standards management systems and incorporated by end 2010 practices  Reporting mechanism  Develop performance developed by end 2009 standards relating to social, cultural, spiritual and economic advancement to be employed by each indigenous Institution  Develop a reporting mechanism to Parliament, Province, Tikina and Village Councils Improve performance  Develop a code of conduct  Code of conduct developed of Fijian and customized guidelines by 2009 Administration at for council bodies Provincial, Tikina and  Capacity building and Village levels training programs covering  Training conducted for 3 leadership, management, Provinces by end 2009 and ethics, accountability, cover remaining provinces by 40 professionalism etc to be end 2011 conducted for different levels of administrators Empowerment of  Undertake social audit of  Social audit conducted Indigenous Fijians to life at village level, upon fully utilize their which to base training and resources for their capacity building programs economic and social advancement  Continuous training and  Training programmes capacity building to develop implemented business and entrepreneurial skills and corporate governance  Increase in number of viable  Increased involvement of businesses registered under the Indigenous population in the IFBC business and commercial ventures

2.2.7 Leadership Goal: Effective, enlightened and accountable leadership Policy Strategies Key Performance Indicators Objectives Rebuilding a  Develop new models  Develop Leadership Models committed, of political, public and visionary, traditional leadership  Continuous public awareness highly  Training programmes developed by June competent and  Public 2009 and implemented by September 2009 more Awareness/Civic accountable education programme leadership on leadership qualities group  Develop and implement a Public Sector Leadership Development Programme to be mandatory for the varied levels of senior executives in the Civil Service (US04 & above) 41 Greater  Drafting of Code of  Draft Bill by end 2009 Accountability Conduct Bill for Holders of  Legal provision to define clear demarcation High Public  Strengthen the of roles by end 2009 Office independence and neutrality of PSC and the Public Service  Removal of political involvement on Public Service appointments 42 CHAPTER 3 Chapter 3 Economic Development

3.1 Macroeconomic Performance

3.1.1 International Economy The world economy performed relatively well between 2001 and 2007 with Figure 3.1: World GDP 2001-2011 exceptional performance from emerging (Constant Prices - PPP Adjusted) markets such as Russia, China and India. 6 In 2008, a number of challenges emerged Percentage Change 4 for the global economy as it started slowing down. The world economy fell 2 into a recession in 2009 as problems from the United States sub-prime mortgage 0 market spilled into other credit markets. -2 At the same time prices of food and oil Source: World Economic Outlook Database April 2009 surged adding to inflationary pressures worldwide creating severe hardships for many low- income countries. World growth since 2001 and forecasts by IMF until 2011 are reflected in Figure 3.1. Global growth prospects continue to remain weak, despite wide range of policy actions taken by governments. Our major trading partner economies, except China and India are expected to also contract in 2009 as a result of the financial crisis with global contraction forecasted at 1.4 percent. In 2010 economies are expected to record marginal growth with continued recovery thereafter. Prices have somewhat declined as a result of global slowdown being experienced. Commodity prices remain weak; however, crude oil prices are making gains as demand recovers.

3.1.2 Regional Economy The GDP performance of major island Figure 3.2: Major Regional Economies 2001-2011 economies has generally been positive (Constant Prices) since 2001. Fiji‘s economic performance 15 between 2001 and 2006 was relatively Fiji 10 stable although it performed only better Percentage Change Samoa than Vanuatu and Papua New Guinea. 5 Papua New The Solomon Islands, in particular, has Guinea Tonga 0 reported exceptional growth since 2003 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Vanuatu and is expected to manage the effects of -5 Solomon the global downturn with relative ease. Islands -10 Source: World Economic Outlook Database October 2009 The downturn in regional economies from 2009 onwards (Figure 3.2) resulting from the global financial and economic crisis is likely to be more severe than anticipated as demand for Pacific export commodities, tourism arrivals and remittances decline. 43 The recessionary effects in island Figure 3.3: Australia and NZ GDP 2001-2011 economies are more pronounced given the (Constant Prices) slowdown in Australia and New Zealand. 6 Australia New Zealand 5 These economies are the largest sources of 4 Percentage Change visitors for Pacific tourism. The actual 3 2 and forecast economic growth rates of 1 Australia and New Zealand for the period 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -1 2001 to 2011 are shown in Figure 3.3. -2 -3 The risks of slowdown in tourism and Source: World Economic Outlook Database October 2009 lower than expected prices of commodities for the island economies are expected to remain in the medium term.

3.1.3 Domestic Economy Fiji‘s economic growth performance has remained relatively weak since 2001 Figure 3.4: Domestic GDP 2001-2011 averaging only 1.7 percent growth until (Constant Prices) 2008 (Figure 3.4). The sluggish growth in 6.00 recent years has largely been a result of 4.00 Percentage Change declining contributions from sugar and garment industries. These declining 2.00 contributions have not been offset by 0.00 modest growth in other sectors such as tourism, bottling water and biscuit -2.00 manufacturing in recent years. Fiji -4.00 Sources: Fiji Islands Bureau of Statistics and Macro Policy Committee economy has continued to contract since 2007 with a 2.5 percent contraction expected in 2009. The economy is expected to recover from 2010. Historically, Fiji enjoyed preferential market access to the EU for sugar and the US for garments. However, with progressive decline and elimination of these preferences, the performances of sugar and garment industries have declined resulting in lower GDP growth rates. Since 1990 Fiji has looked outward for an export led growth strategy; however, economic growth rates have on average been lower than the preceding period. Since 2007, government has made efforts to implement institutional reforms to facilitate sustained economic growth. Setbacks to such efforts have been a result of natural disasters and global economic slowdown. The socio-economic progress of the nation is dependent on how the domestic and external challenges are managed in partnership with the private sector. Government‘s focus in economic development will encompass: 1. Enhancing development cooperation throughout the government machinery; 2. Emphasizing rural development to prevent excessive rural-urban shift of the workforce; 3. Maintaining macroeconomic stability; 4. Implementing the National Export Strategy; 5. Supporting the agricultural sector; 6. Reforming the sugar industry; 7. Developing and strengthening the Financial Sector; 44 8. Facilitating domestic investment; 9. Encouraging foreign investment; and 10. Making available unused but productive land of all classes while ensuring that returns to landowners are market based.

3.1.4 Private Consumption Private consumption has been steadily Figure 3.5: Private Consumption increasing since 2001. Figure 3.5 shows 3,500,000 the level of private consumption for the 3,000,000 period 2001-2011. The estimates, 2,500,000 reported for 2006-2011 period have been 2,000,000 based on actual and forecasted VAT 1,500,000 1,000,000 collections. 500,000 - There is concerted effort from government to encourage consumption of locally grown and manufactured products Sources: Fiji Islands Bureau of Statistics and Ministry of National Planning to provide development opportunities for local farmers and industries. The recent devaluation of the Fiji dollar with a view to discourage imports is also expected to raise consumption of domestically grown and manufactured products.

3.1.5 Inflation Inflation has been relatively stable apart from fuel price related increases in 2003 Figure 3.6: Consumer Prices 2001-2009 and compounded food and fuel price 10.0% increase in 2008 (See Figure 3.6). The Percentage Change 8.0% Reserve Bank of Fiji through its prudent monetary policy measures continues to 6.0% maintain inflation at low levels for 4.0% pressure emanating from the domestic 2.0% front. Low trading partner inflation as 0.0% well as softer international commodity prices has also helped in keeping Fiji‘s overall inflation low. The global Source: Fiji Islands Bureau of Statistics economic slowdown in late 2008 and 2009 has led to fall in prices in general. In 2009, the May inflation rate was at 0.8 percent. The rate rose to 6.3 percent in October, reflecting the effect of the 20 percent devaluation of the Fiji dollar. In the coming months, prices are expected to rise and the year end inflation rate is projeved at 9.5 percent before moderating to 2.0 percent at the end of 2010.

3.1.6 Investment Capital accumulation through the investment process is a vital ingredient for economic growth. In the period 2001 to 2005 total investment averaged over 18 percent of GDP (see Figure 3.7). This increasing trend is likely to continue with recent increases in investments by Government and public enterprises such as the Fiji Electricity Authority and the Housing Authority. Public sector investments of this nature are crucial for the proper functioning of the 45 market system to supply social and economic infrastructure to facilitate and implement private investment plans. The Government‘s capital expenditure is Figure 3.7: Investment 2001-2005 expected to be in excess of $300m from 1000 2009 onwards which will provide further 900 impetus for growth and development. 800 700 Private sector investment, which has F$ Millions 600 500 Private Sector greater impacts on job creation and 400 growth than public sector investment 300 Public Enterprises 200 increased steadily from 2001 to 2005. 100 Government Greater infrastructural support from 0 Government and restructuring of the 2001 2002 2003 2004 2005 public sector, which essentially transfers Source: Fiji Islands Bureau of Statistics assets and business opportunities to private sector, will also induce higher levels of private investment. Private investment levels are functions of savings and in recent years real interest rates on savings have been negative. Savings levels are expected to increase with recent monetary policy requirement that interest rate spreads be reduced to 4%. Should inflation remain low positive real interest rates would encourage greater savings behavior.

3.1.7 Interest Rates Interest rate spreads have historically Figure 3.8: Commercial Bank Interest Rates been more than four percent in our Figure 3.8: Commercial Bank Interest Rates 2001 - Aug 2009 domestic market while trends from 2001 -Nov 2008 10 10.00 trading partner economies indicate that 9.00 Average banks generally have spreads of 2 percent 8.008 Interest Rates

7.00 Lending Rates Average or even less. In only 2006 did interest 6.006 Lending

5.00 Rates I n t e r e st Rat e s rate spreads reduce significantly but 4.004 Time Deposit Time Rates increased again thereafter. In April 2009, 3.00 2 Deposit

2.00 Rates the RBF took measures to control the 1.00 0 lending rates of banks and other financial 0.00 2001 2002 2004 2006 2008 2003 2005 2007 institutions to assist the business sector N ov Source: Fiji Islands Bureauof Statistics have a more conducive and stable interest Source: Reserve Bank of Fiji Quarterly rate environment. The weighted average interest rates of the banks are to be at their December 2008 level by the end of July 2009. The interest rate spread is to be four percent by the end of 2009. Liquidity in the financial system reached critical levels in late March 2009; however, measures taken thereafter led to improvements to sustainable levels. Although interest rate spreads have been regulated to be no more than four percent before the end of 2009, the regulated spread is still much higher than international trends. Given the fallout in the global financial market it has become apparent that earlier citations by commercial banks that Fiji represented a risky financial market are irrelevant. All bank lending are backed up with sufficient collateral and the riskiness depends on the banks own lending procedures. 46 Apart from interest rates, the banks also need to establish Local Advisory Boards – who will advise the banks on matters of national interest. Banks are also expected to have a complaints process in place which will be monitored by the Reserve Bank. All increases in fees and charges will need to be fully justified. Banks also need to establish microfinance units in their branches. The banks and financial institutions‘ operations are expected to align to national objectives and in the current environment to assist in the recovery process.

3.1.8 Government Revenue and Expenditure Government revenue has been steadily increasing since 2001, in line with economic activity and revenue policies. However, significant revenue losses were incurred as a result of concessions granted by government, generally to large businesses. Concessions and corporate taxes are being reviewed to ensure equity among all enterprises operating in Fiji. This will improve compliance and reduce Figure 3.9: Government Revenue & Expenditure procedures and costs associated with the Figure 3.9: Government Revenue & Expenditure 2001-2011 establishment, application and assessment 2,000.0 2,000.0 2001-2011 of concessions. Figure 3.9, shows the 1,800.0 Revenue 1,600.0 increases in government revenue against 1,500.0 1,400.0 Millions actual and budget expenditure mix. There 1,200.0 M illions 1,000.0 1,000.0 is however, a slowdown noted since 2007 800.0 Operating Expenditure 500.0 Capital Expenditure as a result of reduced economic activity. 600.0 400.0- Capital Expenditure 200.0 Revenue There has been a significant change to 2001 2002 2003 2004 2005 2006 2007 2008 2009 - 2010e 2011e government expenditure composition in the last few years. There is marked Source:Governmentof Fiji Budget Estimates slowdown in operating expenditure over the 2007-2009 period with further reductions anticipated in future. This is offset by a greater emphasis on capital construction, particularly infrastructural development. Although 2010- 2011 capital budgets are yet to be finalized, it is expected to be similar, if not more, in value to the 2009 capital budget as the importance to increase the capital base for sustainable economic growth is now being realized. The aging infrastructure has strong cost implications on the forecast budget surpluses of 2010 and 2011.

3.1.9 Debt Position Between 2001 and 2006 government debt Figure 3.10: Government Debt Position 2000-2008 as a percent of GDP rose by 4.6 Figure 3.10: Government Debt Position 2001-2008 3500 60.00% percentage points with nominal value 3500 3000 54% 50.00% increase of $1.21 billion. This represents 3000 52% P e r ce n t o f G D P 2500 2500 50% 40.00% an annual increase in debt stock by $200 illio n s F$M F$ 2000 2000 48% Millions million. Debt as a percentage of GDP 1500 1500 30.00% 46% declined over 2007-2008. Further 1000 1000 20.00% 44% Percent of GDP borrowings are intended in 2009 and 500 500 42% 10.00% 0 40% beyond to complete the government‘s 0 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 intended infrastructure development Total Debt Debt to GDP Percent program. Government borrowings will Total Debt Debt to GDP Percent only be targeted at investment projects so Source:Source: Government Budget of Fiji - Budget Supplement Supplements various years that developments are able to contribute to 47 sustained economic growth upon completion. The international borrowing commitments are expected to increase as a result of our devalued currency but the increases will be sustained through effective financial management.

3.1.10 Trade Domestic exports have been declining for most years since 2001. Further decline is Figure 3.11: Trade and Trade Deficit 2001-2011 Deficit expected in 2009 with some recovery in 4000.0 2500.0 Imports 3500.0Figure 3.11: Trade and Trade Deficit 2001-2011 Exports (millions) d Ex p oand Imports the following years as a result of the Exports 2000.0 devaluation of the Fiji dollar. The 4000 3000.0 2500 Deficit (millions) decline in exports is largely underpinned 3500 2500.0 1500.0 I m p o r t s an r t s (m illio n s) Deficit 2000 by reduced sugar and garment 3000 2000.0 2500 1500.0 Imports 1000.0 1500 D e ficit (m illio n s) production. Sugar production is affected 2000 1000.0 by inherent industry problems 1500 Exports 500.01000 500.0 compounded with declining preferential 1000 0.0 0.0 500 prices from the EU. Garment 500 production, on the other hand, has 0 0 Source: Fiji Islands Bureau of Statistics and Macro Policy Committee 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 contracted as a result of declining preferences under SPARTECA Source: Fiji Islands Bureauof Statistics and Macro Policy Committee arrangement and the inability of our domestic producers to compete with Asian exporters, such as China. The depressed global conditions have translated into reduced demand for our ground water, fish and mahogany. Significant efforts would be required in the implementation of the National Export Strategy to induce growth in domestic exports. Imports have been rising continuously except in 2007, which coincided with significant economic decline. The increased importation has been attributed to growing demand from the tourism industry as well as rising food and fuel prices. Our exports have been around $1 billion; however, imports in recent years have exceeded $3 billion implying trade deficits in excess of $2 billion (see Figure 3.11). It is envisaged that the devaluation of the Fiji dollar will result in a shift of demand from imports to local produce and manufactured goods.

3.1.11 Foreign Reserves and the Exchange Rate Foreign reserves are necessary for Fiji‘s transactions with the rest of the world. Figure 3.12: Foreign Reserves (2000 - October 2009) Figure 3.12: Foreign Reserves 2001 - 2009 (May) The value of foreign reserves is a net 1400 1200 77 result of foreign demand for our products 1200 1000 66 and domestic demand for imported 55 Months 1000 800 Millions $FF$ products. Exchange rates are established 4 millions 800 4 Months of Cover 600 3 accordingly taking into account our 600 400 3 2 ability to accept all offers of our 200 400 12 currency at the set rate. Except for 2003- 200 01 2004 and 2007, reserve levels have been 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 declining on an annual basis since 2001. The growing trend in imports is causing Reserve Level Months of Cover Source: Reserve Bank of Fiji Sources: Fiji Islands Bureau of Statistics and Reserve Bank of Fiji 48 depletion in our reserve levels. Devaluation of 20 percent, undertaken in April 2009, resulted in improvements in reserve levels. Foreign reserves prior to devaluation were sufficient to cover only 1.3 months of imports. As a result of adjustments in the value of our currency, import levels in the following months declined as higher prices translated into the domestic market and export levels will improve as a result of improved competitiveness of Figure 3.13: Real and Nominal Exchange Rates 2001 - April 2009 our domestic exports. 120.00 100.00 The foreign reserves were at $1030 80.00 million at the end of October 2009. Since Index 60.00 the devaluation in mid April devaluation, 40.00 the trend has been rising steadily. 20.00 0.00 The Fiji dollar is pegged to a basket of NEER currencies (Australian dollar, New REER Zealand dollar, US Dollar, Japanese Yen and Euro). The weights of the basket are based on Fiji‘s exposure to trade and tourism with these countries. The Nominal Effective Exchange Rate (NEER) index has remained fairly stable since 2001 but indicating relative appreciation in value of currency until 2007. The April 2009 index indicates a post devaluation adjustment to the 2008 indices. The decline in indices is not as substantial as the percentage devaluation as a result of currency appreciation in the early months of the year.

3.2 Sectoral Developments

3.2.1 Macroeconomic Management Macro-economic management in the short term is focused on achieving financial stability and securing government finances. Key macroeconomic indicators are discussed in Section 3.1. The major challenges for the medium term are to maintain prudent monetary and fiscal management in order to protect exchange reserves, continue with low inflation, and ensure sustainable fiscal deficit and debt levels. The medium-term approach by Government recognizes the importance of consolidating fiscal policy, increasing export earnings and minimizing imports to reduce the widening trade deficit.

3.2.2 Tourism Tourism in Fiji is a myriad of partnerships between a diverse range of private sector businesses, the communities and government. It has grown steadily over the past few years, it has recovered from a significant decline following the 2000 coup with growth in visitor numbers and economic contribution and strong investment in infrastructure. However, the tourism industry has had to face a number of challenges since 2006 to remain globally competitive. These include the advent of the Hotel Turnover Tax in 2006, loss of price competitiveness, global financial crisis and adverse publicity in the major source markets. Against this backdrop, the tourism sector recorded the highest number of visitor arrivals of 585,031 visitors in 2008, an increase of 6.6% compared to 2006 visitor arrivals. The 49 increased numbers were primarily driven by lucrative packages offered by the industry, with prices reduced by as much as 40%. The strong performance is expected to continue into 2009 with Fiji Visitors Bureau projecting 600,000 visitor arrivals. However, the destruction caused by the floods in early 2009 severely affected arrivals for the 1st quarter with FVB revising the visitor arrivals to 540,000. The 2007 census recorded that 21,460 people or 2.6% of the total population are working in the tourism industry. The industry contributes around 18.4 % of GDP, with $741.7 million earnings in 2006 having estimated tax revenue to government of $140million. The Tourism Development Plan 2007-2016 was prepared on the basis of two phases: a recovery period in 2007-2009 in which visitor numbers will recover to at least 550,000 annually. Development of Eco-Tourism will be targeted through various programs and initiatives within Government. The recent devaluation of the Fiji Dollar is anticipated to derive more positive economic benefits to the tourism industry. As a result of the devaluation, Fiji holidays will become relatively cheaper and therefore more competitive against similar destinations. The devaluation however, may also have an adverse impact in driving up the cost of food and beverages at hotels, which according to international standards are already highly priced. This presents an opportunity for the local agriculture sector if they can overcome the constraints of inconsistent supply and maintain product quality and standard. The Ministry of Agriculture has been working hard to strengthen this linkage between the tourism industry and the agriculture sector. Development Constraints and Challenges The development constraints and challenges include:  Major and on-going Brand Fiji marketing campaign;  Global financial crisis;  HINI turning into a pandemic;  Major growth in key source markets and at least two new source markets;  Attractive investment incentives and proactive approval process;  Supporting infrastructure and domestic (air, land and sea) transport linkages;  Constant supply of trained staff;  Additional capacity on existing airline routes and new routes established; and  Negative travel advisories from key source markets such as Australia and New Zealand.

3.2.3 Manufacturing and Commerce Manufacturing is a major sector, contributing 13% of GDP in 2008. The sector includes manufacture of textiles, garments, footwear, sugar, beverages and tobacco, food items, wood and metal-based products. A decline in the manufacturing industry is expected due to the global financial crisis and subdued domestic demand and in the export markets. 50 The devastation caused by the flash floods in January 2009 has exacerbated the projected slowdown in the industry creating pessimism in the outlook for trade. However, the dollar devaluation presents opportunities for our export sector as exports will be competitive and cheaper in the global marketplace. This will depend on the developments in the global market and the competitiveness of Fiji‘s products. The limited investment and technological innovation has constrained the labour absorption capacity of the manufacturing sector. This lack of capacity has increased poverty and unemployment, especially in urban areas. Two persistent factors, the transition away from high-cost industries that are heavily dependent on imports and the impact of globalization on domestic industries that is unable to compete with imported substitutes, have contributed to the limited growth of domestic production and employment. The effective implementation of the National Export Strategy using the opportunities available from currency devaluation will assist in export growth. Incentives are available to domestic producers in manufacturing and agriculture to exploit opportunities provided by the numerous bilateral and multilateral trade agreements. Development Constraints and Challenges The manufacturing sector has a lot of growth potential. However, these are constrained by the following:  delayed reforms of the sugar industry;  the inability to find a resolute way forward for the mahogany industry;  the continuous shrinking of markets for Fiji‘s textile, clothing and footwear industry;  the weak linkages existing between the natural resource sectors and the manufacturing sector;  time taken to register business is very long due to outdated regulations and legislation; and  lack of market support for agro-based products.

3.2.4 Information and Telecommunications Information Of crucial importance to Government is maximum public awareness of Government‘s plans, programmes and policies. This awareness is deemed vital as it contributes to an informed public and ultimately impacts positively on social and economic development of the country. To this effect, the media plays a vital role in economic development and national unity through its influence. It is in recognition of this fact, that the media is being co-opted as a development partner. Telecommunications The greater use of Information and Communications Technology (ICT) is essential for social and economic development in Fiji. The contribution of the communication sector to GDP was 3.4 percent in 2008, an improvement from the 0.2 percent decline noted in 2007. The growth of the sector is expected to remain around 3.5 percent in 2010. The developments in communications sector is characterised by the increased usage of cellular phones. This has been facilitated by the commencement of operations by Digicel (Fiji) Ltd and INKK Mobile (Fiji) Ltd. 51 Access to traditional ICTs such as radio and television is high. Over 90% of households are estimated to have a radio and over half the population has access to television. Internet use is increasing and people are also becoming more exposed to ICTs through their mobile phones and use of text messages. Electronic transactions in Fiji have also become widespread, spearheaded by the banks. ICTs have the potential not only to create new jobs through call centres and other related activities, but also to empower rural dwellers with information and provide low-cost tele- services. The adoption of ICT is also the key to improving productivity, especially in the public sector. Government intends to deliver as many online services as possible and make greater use of ICT in order to improve internal processes. The current initiative of Government to develop the ICT sector further and the institution of the e-Commerce Bill will ensure that the interests of suppliers and buyers engaged in transactions over the internet are adequately protected. E-community learning centres are being established in rural areas to enable communities to access information, public services, and business products and services on the internet. Recently, an agreement has been reached between Amalgamated Telecom Holdings (ATH) and Government for new competitors in the telecommunications sector. As a result, VoiceNetIP (Fiji) Limited has been given the VOIP licence with the intention to bring maximum benefits and savings to businesses and individuals. The IT Advisory Council (ITAC), set up in 2001 includes representatives of key Government ministries, the academic community and the private sector. The ITAC has drafted an ICT Policy with the vision ―to harness Fiji‘s ideal geographic location, competent workforce and world-class information technology infrastructure to promote Fiji‘s international competitiveness and create a dynamic, vibrant and well-connected e-society‖. A review of frequency transmission has been undertaken by the Communications Department with a view to allocate bands and frequencies such that it allows greater transmission activity. Development Constraints and Challenges Information  Strengthening long-term partnership with the media industry  Improving the quality of reporting  Adherence to media ethics and professional standards  Expanded coverage of government activities through the mainstream media Telecommunications  High cost of telecommunications and associated activities  Monopolistic framework for telecommunications  Lack of awareness about the benefits of ICT 52

3.2.5 Micro, Small and Medium Enterprises The development of Micro, Small and Medium Enterprises (MSMEs) is crucial to national development especially in improving the quality of life of the people endowed with low capital. Substantial untapped opportunities remain for the sector to expand and grow, particularly in rural areas where natural resources remain under-utilized. The Government has identified MSMEs as a priority area for making development more balanced and broad based. Through the Small and Micro Enterprise Act of 2002, the National Center for Small and Medium Enterprise Development (NCSMED) is the primary vehicle through which Government policies and strategies for MSMEs are implemented. Among other responsibilities, NCSMED is tasked to provide training in entrepreneurship and management, business advisory services, support the private sector in developing MSMEs, provide loans and grants to MSMEs, and develop new business opportunities through pilot projects. The Microfinance Unit of NCSMED has formed partnerships with various financial institutions for the delivery of microfinance services. This includes 3 microfinance institutions and 6 microfinance service providers and together they cover 13 major areas in Fiji, in which 382 communities/settlements have access to the service. At the end of June 2009, the microfinance program had more than 22,229 savings clients with savings totalling $988,802. The Business Incubation Centres (BICs) provide office space for small businesses, support services such as training, business counselling, networking and specialist advice. BICs have been set up in Ra and Suva. The challenge for the MSME sector is to create a facilitative environment where educated young people, as a first option, choose to operate a micro enterprise and engage in self- employment than relying on formal sector employment. This requires greater institutional support and access to financial services. Development Constraints and Challenges The development of MSMEs is constrained by the following:  Under developed financial sector to offer the range of services suitable for MSMEs;  Lack of sufficient support services such as business mentoring;  Poor financial management skills of MSME operators;  Lack of knowledge about the existence of MSME service providers; and  Lack of statistics on the MSME sector.

3.2.6 International Relations and External Trade Fiji‘s relationships with the international community has been challenging given our relative smallness and isolation from major economies. The relationships have been further constrained as a result of the recent political developments, particularly with neighbouring nations like Australia, New Zealand and Samoa and traditional development partners like the United States of America (USA), the United Kingdom (UK) and the European Union (EU). Strategic engagement with the international communities and traditional development partners under the principles of internationalism and sovereign dignity remains critical. A new legal order exists with a clear framework for change and achieving parliamentary 53 democracy by September 2014 has been presented. It presents a clear foreign policy framework focused on enhancing global integration and international relations with the objective of regaining Fiji‘s rightful place in the regional and international family of nations. The immediate challenge is to regain lost credibility and focus on restoring its traditional relationships by advocating Fiji‘s interests in regional and international institutions such as Pacific Islands Forum (PIF) States, the Commonwealth, the Africa, Caribbean & Pacific (ACP) Group, the EU, and the United Nations (UN). Global economic conditions and the erosion of the preferences and other constraints for trade and market access restrictions due to non-tariff barriers applied by many countries have been key challenges in the areas of trade and investments. Adverse advisories and travel bans on those assisting with rebuilding Fiji have also had very negative implications. Trade agreements will be treated with caution to consider first the increasing costs of participation that at times supersedes the potential benefits. However, limited negotiating capacity will be efficiently and effectively invested in areas where there are market access and strategic economic gains to be made. The costs of participation are a result of multiple rules, obligations, technical standards and requirements for market entry. Despite these, trade will be facilitated through quarantine protocols and customs, ports and immigration agencies will be strengthened. Understanding of our development and trade partners are sought and government will continue to focus on restoring relationships with the global family through participation in the international fora, respecting the provisions of international treaties and fostering mutually beneficial bilateral and multilateral trade and diplomatic relationships . There is need for Fiji to strengthen Aid for Trade relationships and secure development assistance through the bilateral and multilateral arrangements. Fiji‘s foreign missions and trade offices will need to play more proactive roles in securing trade development assistance and at the same time tapping into supply of labour from Fiji for work overseas. Development Constraints and Challenges  Inadequate border control  Global economic conditions  Lack of experienced personnel and resources in trade negotiations  Slowness in adapting to changes in trading environment  Constrained relationships with trading and development partners  Lack of capacity in border and trade facilitation agencies

3.2.7 Employment and the Labour Market Around 130,000 people, or 40 percent of the labour force, is estimated to be in paid or formal sector employment. With increased investments and future growth in the ICT and audio visual industries, employment is expected to increase in the medium term. Government still remains the largest employer with some 27,000 employees, accounting for a large proportion of total paid employment. There are signs of skill shortages in both the public and private sectors. However, unemployment in urban areas was estimated at 13.8 percent in 2007 with 54 an overall national rate of 11.9 percent (ILO5 Definition6), according to the 2007 Census of Population and Housing. The challenge is to ensure that economic growth is sufficient to absorb the estimated 16,000 people that enter the labour force each year. With the current relatively low economic growth, the formal sector is unable to create sufficient jobs. Many are left to make their own opportunities in the rural economy and in micro, small and medium enterprises. Government‘s Integrated Human Resource Development Programme for Employment Promotion (IHRDPEP) and NCSMED are spearheading efforts to support employment creation in both the informal and formal sectors. The implementation of 55 years retirement age in the public service also has employment implications as the retirees need to be replaced by new graduates to ensure consistent public service delivery. Government is also facilitating faster approval of work permits in sectors facing skill shortages. The closing date of civil service vacancies is reduced from 21 days to 14 days to allow faster processing of employment opportunities within the public sector. Employment placement centres, where job seekers have access to information on available positions and to job-interview training, are to be incorporated into the National Youth Option Centres. Government‘s Internet-based placement service, CareerNET and the expansion of the Computerised Human Resources Information System (CHRIS) will also assist in job creation. The development of a comprehensive accreditation system of qualifications by the Training and Productivity Authority of Fiji (TPAF) will facilitate improvements in the labour market. The Government is working on a performance and productivity based wage-setting framework. The process will induce higher real incomes and economic growth as productivity improvement necessitates investment in modern machinery and improved work methods. The Labour Market Reform brought about by the Employment Relations Promulgation of 2007 will restore confidence, stability and growth in the labour market and contribute to creation of a business environment conducive to private sector investment. This will induce greater employment opportunities. The employment reforms promote the role of women in development and employment of school leavers. Additionally, the reforms will help improve maternal health of working mothers, reduce child mortality through enhanced maternity protection and promote education of children through its child protection policy. The establishment of the National Employment Centre (NEC) as a ―one stop shop‖ will provide employment services for the unemployed and school leavers, both locally and in overseas markets. The NEC will act as the national umbrella framework for all employment creation initiatives for the unemployed who will be issued with national employment identification cards. The NEC will actively engage Fiji‘s unemployed in meaningful activities through cost- effective facilitation, coordination and monitoring of all current activities including the creation of a new Volunteer Scheme and a Foreign Employment Service. 5 ILO Definition – Includes those that are seeking employment and those are available but not seeking employment; ICLS Definition – includes only those that are actively looking for employment 6 International Classification of Labour Force Statistics (ICLS) definition based urban unemployment rate = 10.5 percent and overall rate = 8.6 percent 55 Development Constraints and Challenges  Successful implementation of performance based pay system  Training and retention of individuals in areas of skills shortage.

3.2.8 Land Resources Development and Management Land is a scarce resource in Fiji and access to land is a prerequisite for any development. With the current supply of land there is a need to ensure proper management and planning of land use to ensure efficient utilization. Competing land uses such as infrastructure development, housing, town and country planning and agriculture all require land both in the mid term and long term for expansion purposes. Proper land use management and planning is important in trying to mitigate against any impact that may be directly related to improper land-use or unsustainable development. The adoption of an integrated land and water resource management plan is important given the increase in use of agricultural land beyond its capability, intensive cultivation of steeper lands, rapid and escalating tourism development along the coastal zone and coastal floodplain and the loss of good quality agricultural land to other uses. These factors all collectively threaten the sustainable use of Fiji‘s land and water resources. The review of the Land Conservation Act is to ensure that the focus and scope of the legislation covers the sustainable use and conservation of both land and water resources. The review also ensures the Land Conservation Board is provided with the appropriate legislation, resources and the political will to fulfill its regulatory role in enforcing proper land use practices. The review mandates the Land and Water Resource Management Board to develop a national land and water resource plan of which it will provide the basis for the piloting of the Nadi Water Catchments project. It will also harness the need for a firm policy commitment from Fiji Sugar Corporation, NLTB, the Sugar Research Institute, and the Ministry of Agriculture that their field officers will incorporate a Sustainable Land and Water Management message into their extension and advisory services. To promote resource conservation the existing legislations will be provided with provisions to be applied immediately and comprehensively to control the removal of sand, gravel, rocks and boulders from the bed and banks of rivers and streams. These will mean that any new development will be subject to the requirements of the Land Improvement Act and the Environment Management Act to ensure sustainable management of these resources. With such plan in place, land will be allocated according to its highest and most suitable use. To support economic development government intends to create large scale commercial agricultural subdivisions to improve land utilization and increase productivity of the agriculture sector. The intention is to identify available arable land and venture into large scale commercial agriculture farming. These developments will be pursued in partnership with landowners, private sector/exporters and the NLTB. Land reform will also be undertaken to ensure that land is made available for economic and social purposes. Creating a market for leased land is part of the land reform options which is focused on ensuring better returns to landowners. To effect such a transformation, it is essential that efficient mechanisms are created to ensure land is made available to potential users who are willing to pay for its use at a rate set by the market and not by any administered 56 or legislated rate. In trying to make land available for government development use and in facilitating investment, options such as the purchase of ancestral land, land buy-back schemes and the reversion of schedule A and schedule B land under NLTB will be pursued to ensure that these land is available to government and that it generates a good return on investment both for land owners and NLTB. Consulation on the establishment of mechanisms such as Landuse Advisory Boards, National Land Register and a National Landuse Development Plan will be pursued to assist with overall planning and better decision making on the utilization of land. Development Constraints and Challenges Enforcement of the land use policy has not been effective given the lack of understanding and coordination between key stakeholders on the importance of conservation. The lack of adherence to the Environment Management Act and the absence of a statutory authority is a draw back in the implementation of proper land use and the enforcement of proper land management. The promulgation of the Land Conservation Act is expected to provide some authority for the implementation of the land use policy. This will ensure that land user and developers will adhere to the requirements of the Act and at the same time exercise greater precaution on land degradation activities. There is a need to review various legislation that deal with the administration and development of land in order to ensure land availability and to facilitate access for potential landusers.

3.2.9 Sugar The Sugar Industry is in crisis. The full 36% reduction in preferential prices in the EU market will take effect from 1st October 2009. The EU has indicated that funding under the Accompanying Measures Programme for 2009 has been cancelled. Funding for 2010 and beyond remains uncertain. Domestically, there continues to be ominous signs of an industry on the brink of collapse with lone fertilizer supplier South Pacific Fig 1: Cane and Sugar Production Trends: 1975-2007 Fertilizers Ltd being granted a 4500 12 4000 Government subsidy of $9.8 million to 10 3500 purchase raw materials to supply the 3000 8 Tons ('000) industry needs for the 2009 season, low TCTS 2500 sugarcane production over the past two 6 2000 seasons averaging 2.4million tons, a far 1500 4 cry from the 4.2million tons that the 1000 industry reforms are supposed to yield, a 500 272 396 341 408 454 341 289 268 2 7 high TCTS ratio of 10-12, and continued 0 0 reliance of the miller (FSC) on 1975 1980 1985 1990 1995 2000 2005 2007 Government guarantees to enable it to Sugar production (E) Cane crushed meet its working capital requirements. Ton Cane to Ton of Sugar Ratio (TCTS) Government recently renewed its 7 Ratio showing how many tons of cane required to produce a ton of sugar 57 guarantee to FSC in May 2009 for another year, on this occasion increasing it from $25million to $70million. There is no doubt that the sugar industry has been an important lifeline to Fiji‘s economy: contributing on average some 7 percent of GDP, generating on average 30 percent of total domestic exports and providing direct and indirect employment to around 51,000 people, consisting of approximately 18,000 growers, 3,000 FSC employees and 17,000 cutters and drivers. It is estimated that about 200,000 people are either directly or indirectly dependent on the industry for their survival. However, it is important to also note that throughout its existence, the industry has been sustained by preferential access to the UK market, assured since 1975 under the Sugar Protocol, and sympathetic government subsidies. With such a legacy, it is no surprise that efforts to reform the industry into a competitive player in the global sugar market, is proving a challenge. Data over the last 30 years show a general trend of declining production, more profound from the mid-1990s. The decline in output of both cane crushed and the resultant sugar content (particularly the latter) has been much more rapid than that of either the area planted under cane or the number of growers. This reflects a particularly sharp deterioration in productivity at the field level, both in terms of cane yield per hectare and in cane quality. This is best illustrated by the ratio of a ton of cane needed to produce a ton of sugar (TCTS) which was in the range of 7.9 to 9.8 from 1975 to 1990, and increasing to the range of 9.1 to 11.1 from 1990 to the present. This means that the industry today needs on average at least 15.2 percent more cane to produce a ton of sugar compared to 30 years ago. This translates into increased cost for both the grower and the miller. The decline in sugar output has been attributed to the movement of people off farms, the lower fertility of land due to unsustainable use and the ongoing use of low sugar content varieties of cane. Sugar production declined in 2008 to around 208,727 tons, 13% below the 2007 level, from 2.32 million tons of cane. This represents a TCTS ratio of 11.15 which is high and inefficient. A desirable TCTS ratio for the industry would be around 8.0. The outlook for 2009 is not positive largely attributed to the devastation of the January 2009 floods. Sugar production forecasts for 2009 and 2010 currently stand at 208,000 tons and 257,000 tons respectively. Total sugar exports for 2009 are projected to decline to $176.5m from $248.2m recorded for 2008. Projections for 2010 and 2011 currently stand at $162.2m and $175.6m respectively. Government has set-up a Task Force comprising of all the stakeholders as its first step towards expediting the Sugar Industry Reforms. The objective of the Task Force in revitalizing the Sugar Industry was to formulate and implement an agreed Sugar Industry Plan to provide a way forward for the Industry. The plan identifies the real solutions in helping the farmers, addressing the pressing issues of land, fertilizer, cane production and productivity, harvesting and transportation as well as identifying other farm based activities to supplement cane incomes. The plan also encourages FSC to be an efficient miller to enhance the quality and quantity of sugar production and supplemental income through diversification projects. A draft Industry Plan has been produced and agreed to in principle by the Industry. 58 With the uncertainty surrounding the support from the EU under the Accompanying Measures Programme, it falls on Government and the Industry to finance the reforms outlined in the Industry Plan. Government is committed to ensure that the chosen path of reforms is successfully carried out. While programmes targeted at addressing milling inefficiencies through equipment upgrading and replacement are at an advanced stage, initiatives to improve farm productivity and transporting efficiency are lagging behind. This is a concern given that improving farm productivity is crucial to the survival of the industry, as it prepares for exposure to more competition in the world market. This is the real challenge of globalised trade. The launching of a new cane variety in August 2009 by the Sugar Research Institute is a welcome development. The Ministry of Sugar in conjunction with the Ministry of Primary Industries are also focused on enhancing diversification projects to ensure a broader income base for cane farmers through import substitution and export promotions programme. There is a growing lack of confidence amongst farmers within the cane belt to plant cane. This has seen a mass exodus of people from the cane farming belts to the towns and cities in search of a more secure income, education, and livelihood. This presents a major challenge for the Industry, with an ageing population left to tend the farms. The solution to this is to make sugarcane farming attractive again. In an attempt to break the heavy institutional set-up of the Sugar Industry, Government has carried out major reforms which had seen the dissolution of the Sugar Commission of Fiji and the winding up of the Fiji Sugar Marketing Company Limited. The responsibilities of the latter has been taken over by FSC. The Sugar Cane Growers Council has also been dissolved to ensure that cane farmers are not burdened with additional expenses in the form of contributions in times of falling sugar cane income levels. As a short term measure to address the loss of land under sugar, Government set up the Committee on Better Utilization of Land, which negotiated with landowners on expiring leases, and through a government subsidy, topped up land rentals received by landowners to 10% of UCV. To date, out of the 5,464 expired leases, CBUL has successfully negotiated the renewal of 4,139 leases. The subsidy scheme is a 5 year initiative and farmers are expected to bear the full cost from 2015 onwards. The initiative, however, is a short term solution while Government progresses to implement reforms in the administration of land in Fiji. Accountability and confidence needs to be cultivated with the industry being more incentive driven. In this regard, it is of critical importance to introduce a payment system for cane based on the sugar content of the cane. There should now be a shift in efforts – at all levels in the industry – towards maximizing sugar production and not cane production. Development Constraints and Challenges Development constraints and challenges include:  Industry viability depends upon the commercial values in all aspects of operation, from farming and harvesting, to transportation and milling;  Effectiveness of the extension services, research and development work of the Sugar Research Institute and FSC;  Effectiveness of recapitalisation program; 59  Loss of experienced farmers;  Renewal of productive land leases; and  Support provided by the EU and confirmation of funding.

3.2.10 Non-Sugar Agriculture and Livestock The agriculture sector, during the last decade grew at an average rate of 0.13% and the average growth attained is a direct result of low investment in the sector. Projections for 2009-2011 indicate a period of slow growth in the sector. The non-sugar agriculture sector is still predominantly subsistence and on average contributes 7.8 % of GDP, accounting for around 3.8 percent of domestic exports. Food imports in 2008 constituted 14.4% of our total imports, which is of particular concern. The non-sugar crops constitutes of traditional food crops (taro, cassava, yams, sweet potato, and kava), tropical fruits (pineapple, pawpaw and mango), vegetables, pulses, ginger, tobacco, rice, spices, cocoa, and coconut products. The livestock industry includes beef, dairy, pork, poultry meat, eggs, sheep, goat and bee products. Major contributors to exports are fruits (pawpaw) and vegetables, including taro. A small but growing volume of certified organic products, including coconut and fruit products and nutriceuticals are exported. However, growth in the sector has been volatile. Food security is a priority given Fiji‘s vulnerability to natural disasters and its susceptibility to the global food crisis. The FAO‘s Food Import Capability Index (FICI) provides an indicator of a country‘s level of food security vulnerability. An FICI ratio of above 0.5 is considered vulnerable, with Fiji having a decade average of 0.17, issues such overliance on imported food itmes, change in consumer preferences and changes in community lifestyle is certainly like increase our vulnerability in the near furture. External shocks such as the impact of currency devaluation on our purchasing power and the erosion of trade preferences with the European Union is also likely to affect our demand for alternative livelihoods. Growth in the importation of agricultural produce (live animal, animal products and crops) by hotels and resorts due to the inability of domestic farmers to provide consistent supply of quality agricultural products is contributing to the rising import bill. To penetrate this segment, emphasis will be on putting in place proper programmes and infrastructure to support the production capacity of local farmers and improving the quality and standards of agricultural produce. In addition partnership with private sector involved in the supply and value chain will be harnessed through provision of appropriate incentives and support. The implementation of the National Export Strategy (NES) provides the platform for supporting local industry organization on infrastructure development, enhancing market access opportunities for exports and the penetration of emerging export markets. Synergies will be considered between NES and other rural development oriented programmes such as Export Promotion Programme (EPP), Import Substitution Programme (ISP), Sigatoka Valley Development Programme, Rural and Outer Island Development Programme (ROI) and the Northern Development Programme (NDP) to ensure greater cohesion and effective implementation of the Demand Driven Approach (DDA). The Demand Driven Approach both for export and import substitution commodities involves commercialization and strengthening industry organizations and agri-business networks, promotion of young farmer training, recognition of industry priorities by Government and the provision of support to medium sized entrepreneurs and exporters with existing market protocols. 60 The Import Substitution and the Export Promotion Programme is focused on improving the quantity and quality of commodities both for domestic consumption and exports. An integral part is focused on reviving both the crops and livestock component of the agriculture sector with special focus on import substitution commodities. The reviving of the livestock industry is targeted at the breeding of genetically superior livestock, provision of training on pasture feed management, good animal health practices and improve farm management techniques. Investment in the industry is targeted at the dairy and beef components of the industry. The introduction of subsidies for the farm gate price for milk is to boost local supply of milk and also to encourage farmers to supply milk to Rewa Cooperative Dairy Company (RCDC). Bilateral Quarantine Agreements (BQAs) continue to boost exports significantly. Export market access for agricultural products cannot be obtained without a BQA. BQA for other potential export commodities are being pursued, however investment in research and equipment needs to be prioritised. Market access already secured under BQAs are for pawpaw, eggplant, chilli, herbs, pineapple, breadfruit, and mango to New Zealand; kava to Vanuatu; watermelon, yams, and vanilla to Tonga; coffee and copra to Papua New Guinea; and pawpaw to Australia. Farming techniques and post harvest handling need to be improved to address the issues of quantity, quality and consistency of supply. Potentials in rural and outer islands still remain largely untapped. Production in these areas remains largely subsistence due to lack of infrastructure, adequate transport services, long distances to markets and the non-availability of incentives in the agriculture sector to induce greater agricultural production. The Agricultural Marketing Authority provides some form of market access but its coverage and its ability to absorb supply from remote farmers is limited. Fiji‘s agricultural sector has enormous development potential given the availability of productive land and natural resources. The way forward for the sector is dependent on harmonizing all rural development initiatives to ensure equitable distribution of resources to less developed areas and the opening up of possibilities for commercial agriculture in remote rural areas. Development Constraint and Challenges  Lack of investment in agricultural research especially product development  Development of market access, BQAs and commodity protocols  Agricultural infrastructure and equipment are inadequate to deal with demand  Reinvestment needed from producers  Improved extension services  Capacity building for farmers  Awareness on proper farming techniques, soil suitability and conservation, post harvest handling, market access and financing  Establishment of Export Insurance Facility

3.2.11 Forestry The forest sector on average accounts for 1.2% of GDP and 4.1% of export earnings. Fiji has a total forest cover of 1,054,419 ha, covering 58% of the total land area. This consists of 899,229ha of native forest, 116,488ha of plantation forest (52,419ha of hardwood plantations 61 and 64,068ha of softwood plantations) and 38,742ha of mangrove forest. The native forest consists of 5,738ha of nature reserves, 16,109ha of forest reserves, and 1,300ha of recreational parks. The performance of the sector in the past few years has been poor due to the complex institutional environment in which the sector operates, exacerbated by low log production, poor performance of public companies involved in the sector such as FHCL and Fiji Pine Limited(FPL), and the delays in getting Wairiki port into operation. The sector declined by 1.6% in 2007, 3.4% in 2008 and projected to continue to fall sharply in 2009 by 9.1% mainly due to woodchips exports, which, based on current orders, is projected to fall by 43.8%. However, a recovery of 4.3% and 0.9% is currently projected for 2010 and 2011 respectively, as Government puts in place measures to address the current institutional constraints. Fiji is a producer and exporter of woodchips, sawn timber and plywood/veneer. Forestry exports have increased in the past few years with export earnings up by 27% in 2007 to $47.7m and 24.3% in 2008 to $59.3m. These increases were largely driven by earnings from export of woodchips which doubled in 2007 from $13.4m in 2006 to $27.1m in 2007 and later to $27.6m in 2008. A decline of export earnings by 15% is projected for 2009 due the depressed demand in the global economy. Nevertheless, a recovery in export earnings of 8% and 4% is projected for 2010 and 2011 respectively. The National Forest Inventory, the formalization of the Fiji Forest Policy Statement and the National Forest Program provides the framework for the sustainable management of Fiji‘s forest resources. These tools represent a paradigm shift in the management focus away from timber production towards conservation and sustainable management. With emphasis on sustainable forest management, increased landowner aspirations, expansion in nature reserves, afforestation, climate change adaptation and globalization, there is more awareness on the social functions provided by forests to improve water source quality, improve agricultural land and reduce vulnerability to natural disasters especially flood mitigation. Total wood production in Fiji is presently approaching 500,000m3 annually with 100,000m3 from native forests, 100,000m3 from mahogany plantations, and 300,000 m3 from pine plantations. Fiji has a total of 41,000ha of mahogany stocking, which is one of the largest mature mahogany resources in the world. However, the full benefits of this resource have not been realized due to stakeholder conflicts creating uncertainties. In order to set a clear direction for the industry, Cabinet agreed in June 2008 to transfer the ownership of the mahogany plantations to the indigenous landowners through the Fiji Mahogany Trust (FHT), with the role of Fiji Hardwood Corporation Ltd (FHCL) redirected to one of forest manager. There is potential for large denuded forest grasslands to be converted into forest plantations of sandalwood (Santalum yasi) and teak (Tectona grandis) plantations. Reforestation could result in the employment of skilled and unskilled people who have been displaced from the sugar industry. The harvesting of the high value mahogany resource, technology, trade standards and forest certification are prominent in the National Forest Policy Statements. On the prospects of resource utilization and business development, there is potential for development of Wood Energy Industries, Furniture Manufacturing, Coco wood Industry and Carbon Trading. Other potential business opportunities that are being pursued include the supply of fuel wood for the production of power from biomass. FPL has commenced a 100-hectare trial on pine resin tapping and the viability of such an operations is be evaluated to ensure the current log supply market is not affected. 62 The Forestry Department is also collaborating with NGOs, regional organisations, and the Department of Environment through a four year GEF funded project of US$3.7 million on the conservation of Sovi Basin, located in Naitasiri and Namosi provinces. Landowners of Sovi Basin are getting an annual proceed of around $200,000 of which about half are paid directly as lease and compensation on foregone timber royalties. Development Constraints and Challenges Development constraints and challenges include:  Absence of comprehensive regional and national land use plans;  Limited protection and enforcement for conservation especially in native forests;  Inadequate knowledge of forest resources;  Inadequate research efforts;  Poor fire protection capabilities and procedures;  Institutional weaknesses and difficult bureaucratic processes;  Outdated forestry legislation;  Absence of detailed forest management and harvesting plans;  Constrained value adding capacity;  Market access and niche marketing; and  Forest certification and trade standards

3.2.12 Fisheries Resources The fisheries sector accounts on average for 2.7% of GDP and 9.7% of domestic export earnings. Fish production in Fiji is estimated at around 22,000mt with an average fish production in the last 10 years of 24,000mt. Tuna contributes 67% of total production in the industrial fisheries sector whilst artisanal fisheries contributes 28% and aquaculture contributes 5% of production.Industrial fisheries contributes 84% of total export earning while artisanal fisheries contributes 16% of export earnings. The sector declined sharply by 15.9% in 2007 on the back of soaring industry costs, driven largely by the rise in fuel costs. While there was a slight recovery of 4.5% in 2008, the outlook for 2009 is a decline of 3.4% as the impact of the global recession takes hold, affecting mainly the Japanese sashimi market. The devaluation of the Fiji dollar may boost exports and support growth, but is also expected to adversely affect industry operating costs. A recovery of 4.1% is currently projected for 2010 followed by a decline of 6.7% in 2011. The decline in 2011 is expected to be caused by a more pronounced el nino impact. The management of offshore fisheries has been an area of concern, not only nationally, but regionally and globally, particularly in the wake of an invasion of State subsidized Asian fleets. While total catch has increased in the past 2 years from 12,417mt in 2007 to 13,330mt in 2008, catch in domestic waters is declining. This prompted a reduction in licences issued for vessels in the Fiji EEZ from 100 in 2003 to 45 in 2008. There are currently 40 licensed vessels operating in 2009 from a licensing cap of 60. Most of the fish catch is now coming from high seas and neighboring countries. Resource management, therefore, becomes critical and mechanisms such as the Tuna Management and Development Plan need to be followed and enforced at the national level. Fiji has an expanded value adding industry for tuna, which includes frozen sashimi grade, yellow fin loins, loining and carbon monoxide treated yellow fin for the US market, fish smoking for the niche Japanese market and small scale value adding for the local and export markets. Sustainable development in the fisheries sector will require strengthened policy, 63 institutional and regulatory frameworks which are developed with stakeholder participation. The revision of the Fisheries Act is planned for 2009 with assistance from the Forum Fisheries Agency. In June 2008, Fiji was removed from the list of countries allowed to export fish products to the EU market because of a failure to put in place a competent authority to ensure compliance to the EU fish export standards requirements. This has resulted in the loss of around $5million in value of fish exported to the EU annually. Fish exports to the EU are directed to the UK, France, Netherlands, Italy and Germany and compose mainly of fresh/frozen tuna fillets and loins. The EU has since provided technical assistance to Fiji to allow the competent authority to comply with EU requirements. It is estimated that it will take at most 2 years before access to the EU market is opened again for fish products from Fiji. The fishing industry has expanded in recent years to include other fisheries such as aquarium trade, live rock, and live coral. There is an expansion of demand for marine products supported by health oriented consumers as well as for management and conservation as in marine parks and marine protected areas (MPA). Development of other areas such as seaweed farming, aquaculture and recreational fishery for both food security and income generation is also being encouraged. Aquaculture programmes have not progressed well despite large investment from Government and donors. Total aquaculture production is estimated at 500 mt/20,000pcs valued at about $12 million on the back of the strong results from the pearl industry. Principal types of aquaculture initiatives consisted of eight (8) aquaculture species, namely, Tilapia, Carps, Brackish water shrimps, Prawns, Fancy Carps, Gold Fish, Pearl Oysters and Seaweed. While the objectives were to improve the nutritional status of rural populations, generate supplementary income and diversify activities, create opportunities to stem the flow of migration from rural to urban areas, the strategy was also designed to enhance production for import substitution (prawns, mussels, oysters, fish), and the re-seeding and stocking of our fisheries water ways. However, more research is needed to improve the quality of fries (babies) and feed which are key obstacles to commercialization. The current average yield of 1.2mt of fish per hectare needs to be increased to 26mt in order to sustain a viable industry. Seaweed farming engages the family, community, Government and the private sector, and offers an alternative livelihood to isolated rural areas, especially in maritime zones where shipping services is irregular and unreliable. In Ono-i-Lau, this commodity has provided employment, raised the standard of living and contributed to the drift to urban areas. There are 198 active farmers producing an average of 60mt of dried seaweed per year around Fiji. The demand by the current market for Fiji seaweed is 2,000mt per month with projected export earnings of $36 million per year. The pearl industry is another potential growth industry with Government working in partnership with the private sector. This partnership has supported the operation of 11 pearl farms which have produced an average of 50,000 pieces over the past 2 years valued at around $1.6million. The industry is worth $7.5 million and government is aiming at increasing the value to $50 million by 2015. However, increased technical capacity is needed to develop the industry. The main constraints preventing sustainable commercial development of this sector are the lack of technical expertise, lack of appropriate technology and infrastructure, lack of ability to access appropriate markets and capital, reduction of fishing products, unfavorable investment climate, declining fisheries resources, transport difficulties and export standards compliance. 64 Development Constraints and Challenges Development challenges and constraints include:  Legislative and structural reforms;  Institutional approach to fisheries management;  Management of fish stocks;  Overfishing, illegal and unregulated fishing;  Suitable port facilities and distribution system;  Constrained value adding capacity;  Market access and niche marketing; and  Fisheries certification and trade standards.

3.2.13 Mineral and Groundwater The mining and quarrying sector on average accounts for 1.5% of GDP, generates on average 8.5% of total domestic exports and at its peak supported a workforce of over 1,700 personnel as well as 350 directly related contractors. The Vatukoula mine shut down in 2006 because of rising operational costs and low output which severely affected the viability of its operations. After placing the mine up for sale, an Australian company, Westech Gold purchased EGM‘s operations and tenements in Fiji. Production in 2007 was a mere 932 ounces. In 2008, a UK- based company, River Diamonds, acquired the Vatukoula operation from Westech. With Vatukoula mine under new management, mining operations gained some momentum with gold production increasing to 22,496 ounces. For 2009 gold production is expected to increase to 36,000 ounces, an estimated increase of 60% from 2008. With the increase in interest shown by investors and number of forecasted mining activities, the sector is expected to further grow by 38.9% in 2010 and 20% in 2011 respectively. Fiji has good prospects with regard to epithermal gold (associated with volcanic centres), porphyry copper-gold (Namosi), and smaller base-metal deposits (Udu, Wainivesi). Mining and exploration in Fiji has been dominated by gold production from Vatukoula mine however the existence of several mining prospects such as Tuvatu (gold mine), Wainivesi (copper mine), Mount Kasi (gold mine) Namosi (copper mine) and other solid mineral deposits could mean more revenue, foreign exchange, and employment from this sector than from Vatukoula alone. The potential of Fiji‘s mining industry is enormous given the number of exploration licences issued and the various types of activities undertaken by each sectors. From 2007 to 2008, a total of 16 exploration licences were issued, with an additional 2 licences issued in 2009. The conversion of these exploration licences to mining leases provides the impetus for growth and development of the mining industry as a whole. The groundwater sector consists of development and production of ‗mineral‘ or bottled water. Export receipts from bottled water plants at Yaqara and in Nadi areas have been experiencing exponential growth since its inception. Overall growth for the industry is forecasted to increase as robust growth for Natural Waters of Viti Limited (‗Fiji Water‘) is expected to continue given its reputation in the US market. There is currently no legislation governing water resources in Fiji. However, the new mining legislation to be promulgated would legislate the access, use and management of groundwater resources, until a separate legislation is formulated. Given the need to have an effective regime for managing water resources, the National Water Committee has been meeting to develop a water policy. Final consultations are planned for October 2009 before a Water Policy is considered by Cabinet. 65 Recent studies have indicated that Fiji has a huge potential in geothermal energy. However, this has yet to be firmly established. In 2008 exploration was carried out in Labasa by the Asia Pacific Resources Ltd, an Australian company. However, more exploration is needed to ascertain the viability of the resource. In addition to geothermal energy, offshore mining has attracted a lot of interest by prospective investors. Government has, therefore, seen the need to put in place a legislative framework for offshore mining, given that this is a totally new area for the Fiji mining industry. Offshore exploration and mining in Fiji has, therefore, been placed under moratorium until the Offshore Mineral Policy is approved by Cabinet. A workshop on Offshore Mineral Exploration and Mining in Fiji with all stakeholders has been planned before the Policy is considered by Cabinet in October 2009. There has been a lot of focus on mining operations with little attention paid to the potential economic activity generated through exploration. In order to tap into this segment, the current fiscal regime needs to be reviewed to be sufficiently attractive for small exploration companies. In order to develop new mines, an effective exploration industry is required. Exploration is a high risk capital business and investors enter with the aim of reaping high rewards. Some key issues to consider when forming a tax package for minerals include the high capital (and debt) intensiveness of mining ventures, the cyclical nature of metal markets, and the long and costly period of pre-operational expenditures on exploration and feasibility studies. Development Constraints and Challenges Being a high risk industry, attracting investors to this sector does not necessarily require political stability, as proven by countries like Papua New Guinea and those in Sub-Saharan Africa. A facilitative Government process, transparency in legislation and policies, security of tenure, a competitive tax regime and robust legislation are deemed more important criteria for attracting mineral investors. Inadequate technical capacity and under-resourcing of the Mineral Resources Department (MRD) is a major constraint for the industry. The shortage of technical experts such as geologists, compromises the Department‘s ability to scrutinize submissions from the industry or add value to activities in the sector. Security of land tenure is a critical issue for mineral sector investors. Without transparent and adequate compensatory policies, landowner grievances can become a significant impediment to long-term mine operations. A conducive and sound regulatory environment is needed to support development in the sector. There needs to be urgency placed on the promulgation of the new Mineral (Exploration and Exploitation) Decree, as well as the legislation governing groundwater. There remains no legislation or policy framework that addresses the extraction, use and management of groundwater in Fiji. The same applies also to the use of surface water for commercial purposes. The Rivers and Streams Act and the Irrigation Act fall far short of an appropriate regulatory framework for addressing rights/access to water and its different uses based on the principles of sustainable development. 66

3.2.14 Financial Services Financial services are essential in creating an environment conducive to promote the growth of savings and channel these savings from those who save to those who take risk and invest in business activities which yield social and economic returns to the economy. Hence well managed financial services contribute to the strategic priorities of maintaining macroeconomic stability, restructuring to promote competition and efficiency, raising export earnings and raising investment levels for jobs and sustainable economic growth. Resilient and well-regulated financial systems are essential for macroeconomic and financial stability in a world of increased capital flows. The implementation of the recommendations of the Commission of Inquiry into Financial Services (COIFS), IMF/ World Bank Financial Sector Assessment Programme (2007 FSAP), Export Finance Facility (EFF), the superannuation sector study and the introduction of the Fiji Real Time Gross Settlement (RTGS), FIJICLEAR are key strategies aimed at achieving a vibrant and efficient financial sector. Development also requires the extension of formal retail banking services to rural areas and outer islands so that those residing there are better able to establish and expand businesses and meet social needs. This will build upon present development of micro finance - including savings and credit unions and the Micro Finance Unit - and increased access to rural commercial banks through the establishment of specialized micro-finance operation. In addition, the RBF has established a specialized Group to assist and strengthen micro- financing initiatives in Fiji. Moreover, such developments may bring out more success to the economic and social activities in the rural areas, if promotion of accessibility is continued along with transparency planning, co-ordination and consultation between Government agencies so that rural ‗unbanked‘ areas to be also part of the new modern banking system that is available in the urban areas. The financial system needs to be supervised. Proper legislation and regulations need to be in place. Review of the appropriate legislations including the RBF legislations and the Banking and Insurance legislation coupled with increased data coverage will reflect performance and standards of the financial sector. There needs to be proper supervision of financial institutions that are not licensed by the Reserve Bank eg. credit unions, money lenders, etc.In addition, the RBF will spearhead all new rural banking initiatives that are in line with the Banking Act (1995) definition to increase the coverage of basic banking in rural as well as that considered ‗urban‘, but which do not have access at present.. For the development of the capital markets, appropriate incentives will be considered for companies to list on the stock exchange. Development Constraints and Challenges There have been significant improvements in the financial services sector, however, much is yet to be accomplished to address the constraints and challenges to make the sector efficient and manageable/transparent. Such measures include:  improved efficiency in resource allocation and institutional arrangement for processes of financial intermediation;  on-going alignment of domestic prudential regulation to latest international sound and best practices; 67  enhanced stability and soundness of the financial system to include prudential supervision arrangements particularly for deposit- taking institutions like credit unions;  consistent use of relevant indicators such as Financial Soundness Indicators (FSI) and stress testing, to assist in the assessment of strengths and vulnerabilities of financial systems and also serve as critical inputs for policy formulation;  ensure that developments in the financial markets support the ongoing developments of the real sector;  extending financial services to those living in rural areas and outer islands and the importance of this to poverty reduction; and  pursuing supervisory arrangements for capital markets.

3.2.15 Transport Transport plays an critical role in our economy contributing around 10.2% of GDP in the last three years, (2007-2009). It also employs considerable amount of people in both formal and informal sectors with the latter most vibrant in the land transport industry. It also links key social and economic sectors of the economy including resources based industries, education and health. The sector‘s contribution to GDP is expected to expand to 20% by 2014 once the impact on the economy of the support from EXIM Bank China and EXIM Bank Malaysia comes through. In the next five years, government will pursue vigorously its transport financing with the private sector especially in the area of land transport. In the next year or so, government will be engaging the private sector to go into financing rehabilitation works for existing roads. Asian Development Bank (ADB) is also assisting government in the establishment of the multi sector regulator to be adopted soon aimed at promoting competition and minimizing externalities. Land Transport A number of externally financed projects are expected to begin next year such as upgrading of the Buca Bay Road and Nabouwalu/Dreketi road in Vanua Levu and the Sawani/Serea Road, Valley Road, and Moto road in Viti Levu. The upgrading of these roads is expected to provide critical market links for farmers and buyers and substantially reduce costs. Government has also recognized the momentous task of maintaining existing sealed roads (1,617km). The 1997 Lee report recommended at least $50million to be available to maintain road annually based on 865km sealed roads at that time. To this end, government has promulgated the road user levy in January 2009 to at least collect $14million annually for this purpose alone. LTA has already put in-place two weighbridges to minimize the effect of vehicle overloading. Road safety needs to be relooked at to better address its financing needs. Avoiding the dreadful effects of pollution from vehicles also remains to be dealt with. The FRUP III project is expected to be completed by early 2012 after the award of the remaining two contracts to Naim Cendera (Malaysia) and Fairdeal Earthmoving Limited with the estimated cost of the contracts put at $59.6million. 68 Sea Transport The shipping freight rates and the domestic franchise scheme have been under review lately shipping services on both economical and uneconomical routes can best be addressed. Government also constructs and maintains new and existing jetties to take heed of the demand from those living in the outer islands. In 2009, it will complete the construction of the new jetty for Kadavu whilst the Rabi jetty will be completed in 2010. Expansion of international cargo shipping services is largely determined by the export-import market and the current trend will be economically viable once it is reversed. Air Transport Air Pacific is expected to commence flights to Hong Kong in December 2009 with the new air services agreement (ASA) signed with China in early 2009. A similar ASA has been signed with Continental Micronesia to service routes between Guam/Nadi/Honolulu soon. In mid-2009, AFL started works on upgrading Rotuma airport to bring it up to international standards. Estimated cost of this upgrading work is $17million. Development Constraints and Challengers The development constraints and challenges include:  encouraging training for more engineers, transport economists, surveyors, etc.‘;  strengthening and establishment of relevant legislation to support regulatory roles in industries like roads, shipping, aviation, etc;  provision of more resources to address safety standards;  taking advantage of the free air space provisions under ICAO;  providing conducive environment to encourage private sector participation;  government commitment to ensure establishment of relevant institutional reforms; and  government holistic economic policy of co-existing activities integrated with transport development.

3.2.16 Energy The provision of a regular energy supply is critical to the functioning of any economy. Availability, reliability and cost of appropriate forms of energy are necessary as a basis for viable investments needed to attract private productive investments to create employment, alleviate poverty and increase exports. Fiji, like any other country in the region, is heavily dependent on imported fuel to meet a major component of its energy demand. As such, Fiji is vulnerable to the continuous fluctuation of world crude oil prices. For the past few years, demand in Fiji has increased from around $400 million in 2004 to $1.25 billion in 2008. 69 The development and approval in 2006 of the National Energy Policy(NEP) by Cabinet has provided a common framework for both the public and private sector to work towards the optimum utilisation of energy resources for the overall growth and development of the economy. The policy focuses on four key strategic areas that include; i)National Energy Planning, ii)Energy Security, iii)Power Sector and iv)Renewable Energy Development. With challenges confronting the sector, summarily the approach intends to strengthen our supply sources and simultaneously manage our demand for energy. With the above, Government further plans to develop an energy legislation based on the NEP. Around 66.8% of the country‘s electricity requirements are met from renewable energy sources which include; 62.1% hydro, 0.6% wind and other renewable resource 4.1% biomass. This is provided largely through the FEA‘s grid network on the two main islands and Ovalau. Imported petroleum for diesel back-up generators, meets the remaining balance of 33.2 %. The Department of Energy (DoE) has also installed about 600 diesel based systems in various rural communities. The amount of electricity generated and sold by FEA reflects the level of economic activity in the country. Currently, the contribution of the electricity sector to GDP is about 3.6%. This is projected to increase as a result of greater access to electricity in rural areas under the Government‘s Rural Electrification Programme which, apart from the extension of the grid networks and diesel schemes, also encourages the utilization of solar home systems in rural communities. Major changes have taken place within the FEA, following its internal restructuring to improve the efficiency and effectiveness of its operations. Government is reviewing the regulatory role of FEA with the intention of removing this role from FEA, which will enable the company to concentrate on its core business and largely promote a competitive environment for the sector. FEA plans to invest $350m up to 2012 in parallel with some $150 million of private investment in IPP and PPP arrangements. FEA hopes that all these additional national investments in renewable energy sources (hydro, geothermal, wind, biomass and municipal waste) will assist in the accomplishment of its goal of 90% renewable energy by 2011. In addition to the above, Government continues to support FEA‘s proposed new energy developments, such as the Nadarivatu Hydro project. In terms of final energy consumption, the Transport sector has continually consumed a little over 40% of the total energy supplied. This is followed by the Commercial sector, Industrial and Domestic sector. Some of the important measures that have been identified to address the situation are outlined; i) addressing consumption of our transport sector through the development and use of bio-fuels locally and other legislative measures; ii) diversifying the current energy mix through the use of LPG in the industrial, transport and domestic sectors; and iii) improving the efficiency of energy use in all sectors of our economy. Development Constraints and Challenges The development constraints and challenges include:  Continuous fluctuation and the high price of oil that increases domestic costs and the fuel import bill; 70  Regulatory arrangements in the electricity industry;  Lack of a regular energy sector information database;  Weaknesses in the delivery mechanisms under the current Rural Electrification Policy; and  Development of Renewable Energy Projects.

3.2.17 Water and Sewerage The consistent supply of clean, safe piped water and efficient sewerage services are crucial for both rural and urban sectors in inducing greater economic activity and commercial developments. Fiji has an abundance of water resources, however, there are persistent problems of supply of piped water. Approximately 75 percent of Fiji‘s population has access to piped water while the proportion of population having access to sewerage facilities is about 25 percent. Government recognizes the importance of water and sewerage services in the socio-economic development of the country. As such, in the next five years, Government will ensure that inhabitants of some of Fiji‘s most densely populated areas have access to regular and safe piped water and an environment friendly sewerage system. The Suva/Nausori Regional Water Supply and Sewerage Scheme are currently undergoing upgrading and augmentation works to improve the level of service to consumers in terms of reliability, quality and quantity. There are altogether 25 packages under this project of which 8 have been completed. Sewerage rehabilitation and augmentation works have also begun on the Kinoya Sewerage Treatment Plant, Tacirua Sewer extension, Samabula North Sewer and the Suva Point Sewerage. In the Western division, the Nadi/Lautoka regional water supply scheme involves the upgrading of the raw water supply capacity pipeline from the Vaturu Dam to Nagado Water Treatment Plant to allow for better transfer of water to Lautoka. The progress on the Natadola Water project has seen the completion of the pipeline between Sigatoka and the Voua Reservoir near the Fijian Resort. Further developments are envisaged on the pipeline from Voua Reservoir to Natadola and construction of the Natadola reservoir and pump stations. Government will continue to pursue reform programmes in the Water and Sewerage Department. The development of a water management policy will safeguard the proper management of Fiji's fresh waters and the marine environment as well. New legislation and regulation will ensure an appropriate framework for sustainable exploitation and environmental protection of fresh water rivers and ground water aquifers. Development Constraints and Challenges The development constraints and challenges include:  financing infrastructure upgrading, low level of cost recovery and lack of professional and technical staff;  aging of existing infrastructure;  low levels of cost recovery;  increased demand for infrastructure from the growing tourism industry, business centres and industrial estates; 71  creation of new water and sewerage company; and  acceptance by consumers of the need to adopt a user pay concept.

3.3 Policy Objectives, Strategies and Key Performance Indicators

3.3.1 Macroeconomic Management Goal: Maintaining macro-economic stability to facilitate social and economic development Policy Strategies Key Performance Indicators Objectives The nation  Low and stable levels of inflation  Inflation is to be kept around enjoys macro- are assured through use of fiscal 3% percent over a 5-year economic policy to manage budget deficits period. stability and and monetary and interest rate  Annual growth rate to policy to pro-actively manage continually improve from the growth on inflation. forecast of -0.3% for 2009 which to build  Promote growth consistent with  Reserves level to continually improved criteria of the UNDP Human Life improve from the 1.8 months standards of Quality Index. of import cover in April living and 2009. quality of life.  To maintain confidence in Fiji‘s  Interest rates on deposits are currency and capacity to meet at least positive in real terms. international financial obligations  Inflation and foreign reserve through: maintenance of a stable targets (above) are met and foreign exchange rate regime; a interest rate spreads reduced. reasonable level of reserves; pro-  Debts to be reduced from 49 active use of monetary policy and a % of GDP to less than 40% progressive review of exchange of GDP by 2012. controls with further relaxation in annual budgets.  Transparent, market based interest  Revenue to be not less than rates maintained at levels consistent 27% of GDP in each year of with low inflation and a the plan period. comfortable level of foreign  Annual investment increased reserves. to 25% of GDP with 15%  To maintain a sustainable ratio of private sector investment in debt to GDP by restricting spending 2010. to levels consistent with debt  Top corporate and income targets. tax rates no more than 30%. 72 Goal: Maintaining macro-economic stability to facilitate social and economic development Policy Strategies Key Performance Indicators Objectives  Government revenue regime is used  Tax collected within 3 to promote economic growth months of the due date to be through appropriate levels of not less than 95% of the tax taxation, a broader tax base, due. reduced distortions, increased  Government deficit to be 3.0 compliance and development of the % of GDP for 2009 and user pay principle. lower thereafter.  To reduce government spending as  Capital to operating a proportion of GDP through tight expenditure mix of 20:80 for control of Ministerial expenditure 2009 and to be 25:75 by within budget provisions and 2010. through improved cost recovery  Maintenance expenditure to measures. be not less than 7.5% of total  Priority allocation of resources to expenditure. focus on core activities of government in infrastructure, health and education and increasing the proportion of capital expenditure in the budget.

3.3.2 Tourism Goal: A sustainable, growing and globally competitive industry Policy Strategies Key Performance Indicators Objectives Fiji benefits  Additional rooms are constructed  Target 14,361 rooms by from a to maintain a balance between 2014 sustainable supply and demand.  10% annual growth rate in increase in  New markets are developed and Tourism GDP economic the required physical and contribution and institutional infrastructure  10% annual growth rate in retention of the established. tourism investment tourist dollar  Promote high growth niche  Target 4,600 additional jobs from an markets for specialized tourism. created by 2014. environmentally  Cruise ship and yachting tourism  Target 925,000 visitors by and socially promoted, using improved outer sustainable and 2014 island jetties and navigational aids. equitable  Average tourist spend  Promote human resources increase by 10% per year tourism sector. development and introduce  Average length of stay accreditation schemes for quality increases to 8 nights by of services, training and 2016. productivity.  Average occupancy rate  Increase institutional capacity and maintained at 65% 73 Goal: A sustainable, growing and globally competitive industry Policy Strategies Key Performance Indicators Objectives resources of tourism facilitating  At least 15% of FVB‘s agencies, including a sustainable marketing budget dedicated funding formula for FVB. to promotion of the  Increase local supply of quality Northern Division agriculture, seafood and organic produce for hotels and restaurants.  On-going review of the tourism investment regime.  Broaden the benefits of tourism to other regions.  E-Fiji online dynamic packaging sales system established for all tourism businesses.  Develop new direct links by air with countries such as to Europe and China via Korea, Hong Kong, Singapore, India and North and South America.  Review performance of domestic air services with view to benchmarking against international performance standards for safety and reliability, booking systems, handling of schedule changes, fit out of planes, luggage and freight handling.  Establish an effective gateway to the North, looking at expanding the capacity of Savusavu to cater for DASH 8 aircrafts and Labasa to allow for night operations for DASH 8 aircrafts. Resource  Promote licensed and accredited  5% growth in businesses owners benefit tourism development on native (51% or more ownership) from greater lands with equity participation by owned by resource owners participation in resource owners. established and licensed per  Develop resource owner capacity year. the tourism to develop and participate in  At least 50 per cent of industry. sustainable tourism industry and nature-based and tourism related activities. community-based tourism  Support training of resource operations meet or exceed owners to participate in tourism recommended best practice development guidelines and standards by  Development of natural and 2012. cultural attractions including  At least 4 new natural and 74 Goal: A sustainable, growing and globally competitive industry Policy Strategies Key Performance Indicators Objectives scenic views, foot treks etc cultural attractions developed by 2014. Sustainable  Promotion and development of  Development of eco- Eco-Tourism Eco-Tourism facilities tourism standards by 2010 Development  Access to land sites for Eco-  5 percent annual growth in Tourism Development Eco-tourism

3.3.3 Manufacturing and Commerce Goal: Sustainable and globally competitive manufacturing and commerce industries Policy Strategies Key Performance Objectives Indicators Fiji  Development of competitive, high value-  Annual foreign direct supported by added manufacturing industries, including investment to be 6% of a diversified agro-based and niche products. GDP in 2011. and  Annual review of tariff barriers.  Annual value of expanded  Enforcement of international standards, domestic private manufacturin weights and measures, and quality control on investment to be 9% of g and domestic producers and importers. GDP. commercial  Enforcement of anti-dumping legislation and  Annual exports of sector. ensure imported goods meet Fiji standards, goods and services including labels and packaging. increase as % of  Implement electronic commerce policy and GDP.(to be consistent legislation. with 105 quoted below  National programme improving in Improved Business competitiveness through the National Regulatory Productivity Charter. Environment).  Fiji to improve on the World Bank Doing Business rankings. Communities  Increase effectiveness of monitoring,  Consumer complaints should enforcement and service delivery by PIB, solved through benefit from Fair Trading Department, and Commerce mediation increased enhanced Commission. from 15% (201/1305) consumer  Consumer Council to promote consumer in 2005 to 30%. protection awareness and education. and  Improve Government and Donor support to awareness. the Consumer Council by 10% per year from the present funding of $569,170 and to enforce weights and measures standards. Diversifying  Effective implementation of the National  Annual exports of 75 Goal: Sustainable and globally competitive manufacturing and commerce industries Policy Strategies Key Performance Objectives Indicators Exports Base Export Strategy (NES) to broaden the goods and services to country‘s export base. be not less than 65%  Mainstream the National Export Strategy in of GDP. Government‘s developmental agenda. Improved  Fast tracking the implementation of the  Annual value of Business recommendations of the ADB study on ― An domestic private Regulatory Analysis of the Legal Framework for Private investment to be 10% Environment Sector Development‖. of GDP (consistent  Harmonize current Investment Approvals with 9% quoted Process (IAP) reforms with the above study. above).  Review/amend legislations relating to business establishment and Investment.  Development of a national strategy for Micro, Small and Medium Enterprises.

3.3.4 Information and Telecommunications Goal: Universal access to information and competitive telecommunication services Policy Objectives Strategies Key Performance Indicators Responsible media.  Media Promulgation  Increased coverage of Greater coverage given  Strategic partnerships with Government activities by media to media to ensure unfettered  Greater public Government dissemination of Government awareness of programmes information Government  Reduce telecom rates in the programmes and broad- People and businesses short term by promoting more based appreciation of enjoy improved ICT discussions between potential Government services in terms of investors in ICT services and  Reduction in telephone coverage, quality and providers of charges by at least 25% price. telecommunication services. by 2011.  Increased coverage of  Telephone lines and telecommunication services cellular subscribers to be especially to rural areas by not less than 25% in continuing to provide rural areas and 75% in telecommunication access to urban areas (MDG). unconnected villages.  Increase number of rural  Develop Fiji as an attractive tele-centres from 5 to 25 info-communications hub in by 2011. the region.  Increase bandwidth to  A well informed citizenship. all service providers to  Ensure the regulatory and legal be not less than 1000 framework functions. Mbytes by 2011. 76 Goal: Universal access to information and competitive telecommunication services Policy Objectives Strategies Key Performance Indicators  Align broadcast and media  Increase number of free- training to industry standards. to-air TV broadcast  Establish an appropriate providers by additional framework and promote e- 2 by 2011. commerce development.  License additional 1  Introduce e-government in cellular mobile order to raise efficiency of operators. service delivery.  Provide appropriate support for provision of ICT infrastructure.  Operation of new regulator .  Grant of at least another two free to air television broadcast licence  Allocation of communication bandwidths to allow more transmissions 77

3.3.5 Micro, Small and Medium Enterprises Goal: Creating sustainable livelihoods through enterprise development Policy Strategies Key Performance Indicators Objectives Communities  Encourage excellence through annual  At least 100 new MSMEs improve their awards for individual and group MSME registered in MSME livelihoods excellence. database each year. through micro,  Improve business support services and  Loans and savings clients infrastructure by: of MFIs increased from the small, and  reviewing MSME laws and current 22,000 to 30,000 by medium regulations; 2014. enterprise  extending micro finance facilities to  Business Incubation development. all provinces; Centres support  providing incentives for large firms to development of 200 new develop MSME suppliers; and enterprises during the plan  developing marketing for MSMEs period. through research conducted regularly  Commercial bank lending on new markets and opportunities. to small businesses  Establish a system to register MSMEs and increases annually. set up database, with view to move it on- line (e-Gov) as an advertising site for MSMEs in Fiji, exhibiting their range of services.  Promote MSME capacity building in partnership with NGOs at Provincial and District level.  Develop a National MSME Strategy  Develop a nationwide program to improve financial literacy and awareness, particularly with schools and in the rural areas.  Establish a venture capital scheme to assist MSMEs.  Creation of effective working partnerships  New inter-government and networks to promote integrated employment initiatives and employment solutions at national and local private sector partnerships levels. established  Development of new Local Economic  300 New Livelihoods Development (LED) strategies and Created community based employment models for  Empowering local Fiji. communities and institutions to address unemployment. 78

3.3.6 International Relations and External Trade Goal: Global integration for promoting political and socio-economic advancement Policy Strategies Key Performance Indicators Objectives Communities  Implementation of the National Export  Exports of goods and should Strategy, coordinated under the Ministry of services to be increased benefit from Commerce and Industry, to be implemented from 58% of GDP in 2005 Fiji‘s as a Strategic Priority. to at least 65% of GDP.  Diversify export markets, particularly in the  Agreements in place with diplomatic Asia-Pacific region, in partnership with key developed partners on and private sector. temporary employment of economic  Improve investment and trade facilitation and Fiji nationals as skilled relations. negotiation capacity. and/or seasonal workers.  Enhance existing bilateral, regional and multilateral relations.  With the private sector and concerned agencies, develop a temporary employment strategy and establish agreements with regional countries, Gulf States, US and EU to facilitate training and employment of skilled and seasonal workers to be employed in those countries.  Develop and implement Medium Term plan/targets for free trade agreements.  Strengthen trade facilitation in areas of quarantine protocols, customs, ports and immigration.  Advocate Fiji‘s interest and profile in regional and international institutions.  Adhere to international declarations, agreements, conventions and treaties and align domestic policies to them.  Recruit personnel with expertise in trade negotiations and investment.  Develop a South Pacific Policy Statement on regional resource pooling, governance and security.  Secure visa free entry for Fiji citizens to foreign countries and establish and update registry for all countries granting visa free entry by 2010.  Establish and maintain a website to provide accurate and timely information on Fiji. Cordial  Bi-lateral discussions.  Agreement in place with bilateral and  Convening of National Elections. Australia and NZ on multi-lateral  Alignment of Development Plans to MDGs, temporary employment 79 relationships WSSD commitments, Mauritius Strategy and schemes by 2010. Enhanced other global commitments.  Monthly Reports on global  Bilateral discussion with Australia and NZ Campaigning on Fiji‘s trading (and Forum Island Countries) on temporary position opportunities worker scheme.  Increased inflow of aid Diligent and  Develop TOR for Review of Foreign Trade  Donor Roundtable Meeting influential Missions. in 2010 foreign trade  Formalization of diplomatic training  Diplomatic training office and programme. programme in selected missions. academic institution by 2009

3.3.7 Employment and the Labour Market Goal: Fullest and most productive utilization of our human resources Policy Objectives Strategies Key Performance Indicators Employees work in a  Creating new employment  Unemployment reduced from safe, healthy, decent, opportunities and self- 8.6% in the 2007 Census to conducive and employment for people by less than 4.2% by 2012. sustainable work establishing appropriate legal  Increasing people in paid environment where and operational framework and employment from 299,000 by more people can to include the annual review of 3% per year or the rate of GDP secure incomes from all employment incentive growth, whichever is higher. employment in the schemes and programmes.  Increase intake at tertiary and formal and informal  The implementation of the vocational institutions to meet sectors and acquire ERP and its subsequent skills needed. technical skills and legislation that includes the  Increase the number of people productivity levels establishment of Productivity entering apprenticeships from needed for higher Committees consistent with the 100 to 350 annually. incomes and 2005 Productivity Charter  Each year, 10 organisations to economic  Improved functioning of the attain compliance with the development. labour market and to facilitate productivity clause of the ERP, Labour Mobility through the once enacted. establishment of a Policy and  The proportion of the Legal framework. economically active rural  Harmonise existing training population in full time paid and education system. work increased from 49% in  In cases of market failures, the 2007 Census to not less than recruitment of expatriate 60%. workers where there are  Increased compliance of the appropriate shortages. HASAWA.  All expatriates to have a local  Not less than 10 public entities understudy. sold into private ownership by  Speed up the reform agenda in 2010. the Public Enterprise Reform.  Proportion of employed people  Achieve full and productive living below $1 (PPP) per day employment and decent work reduced. 80 Goal: Fullest and most productive utilization of our human resources Policy Objectives Strategies Key Performance Indicators for all, including women and  Proportion of own account and young people. contributing family workers in  Effective and efficient total employment increased. resolution of employment  3% productivity growth by grievances, disputes and other 2012 labour related matters through  Conduct at least 20 LMCCC the Mediation Unit, and Productivity structured Employment Relations training per annum Tribunal and the Employment commencing in 2010 for both Relations Court. private and public sector  Establishment of Labour organizations. Management Consultation and Cooperation Committees (LMCCC) for employers employing more than 20 workers.  Development of systems and processes in compliance with ISO 9000 within the Civil Service and the private sector organizations. 81

3.3.8 Land Resources Development and Management Goal: Effective management of land resources whilst ensuring sustainable development Policy Objectives Key Performance Strategies Indicators Resource owners and land  Establishment of a Committee  Promulgate a new users securing long term to provide advice on land land tenure system incomes from availability options. which allows environmentally sustainable  Set up Committee to initiate equitable returns to land development and work on Land Reforms. owners and users management.  Strengthen institutional through an effective capacity and adequately market for land use resource the Land Resource rights by 2011. Planning and Development  Establishment of a Unit and the Land National Land Conservation Board to enforce Register by 2012. land use policies.  Four divisional land  Complete review of the Land use plans in place Conservation Act. by 2014.  Strengthen resource management and awareness on appropriate land use and watershed management practices from the community level.  Strengthen FLIS setup with view to establishing a national land register.  Encourage partnerships between NLTB, Landowners and Government to encourage better utilization of land under reserve.  Develop National Landuse Plans for various divisions, and provinces. 82

3.3.9 Sugar Goal: A revitalized sugar industry Policy Objectives Strategies Key Performance Indicators To re-structure the  Implementation of the sugar  Yield per ha increased from sugar industry into a industry reform plan, 61mt/ha to 70mt/ha by 2012. commercially viable including the National  TCTS ratio improved from and sustainable Adaptation Strategy. 11 TCTS to 8 TCTS by industry.  Encourage dialogue and 2012. consultation to ensure land  Extraction rate of sucrose availability for the industry. increased from an average of  Promote milling efficiency 72% to 85% by 2012. and cane quality payment  Reduce milling costs from system. $280/mt raw sugar to  Improve efficiency and $200/mt raw sugar by 2012. productivity of cane  Reduce cost of production production in farms through per ton cane from $35 to $20 improved extension and by 2012. research services.  Cane quality payment system  Review the cane adopted by all mills by 2014. transportation system and  Sale of up to 137GWh of harvesting with the objective electricity to the national grid of making it more cost by 2014. effective, efficient and  FSC share price increased practical. towards $1per share from  Increased range of crops current $0.30per share. produced (including  Returns per farm labour day aquaculture) in the cane belt. to remain at least at the  Design and implement sugar present levels. product diversification such  Monitor school enrolment in as co-generation and ethanol cane belt areas. production.  Implement measures to address the social impact of the industry restructure.  Review of Master Award 83

3.3.10 Non-Sugar Agriculture and Livestock Goal: Sustainable community livelihoods through food security and competitive exports Key Performance Policy Objectives Strategies Indicators Fiji is served by a  Establish commodity protocols with  Increase thriving agriculture existing and new markets (China, agriculture sector‘s sector that sustains Australia, NZ, EU, US, Japan) and contribution to Fiji‘s food security promote formation of industry GDP from 12% to and sets a strong councils to spearhead/ coordinate 15%. platform for commodity development.  Value of annual commercial  Strengthen demand driven research non-sugar agricultural and expansion in partnership with the agriculture exports development. private sector. increased to  Identify mechanisms to improve $100m by 2014. accessibility of farmers to credit  Value of fruits and facilities. vegetables imports  Build capacity at community level for reduced from commercial agriculture. More around $150m coordination required among various annually to $80m programs implemented by different by 2014. ministries.  Increase lending to  Improve linkage with local tourism agriculture sector industry. Assessments to be by commercial undertaken on industry needs and banks to 1% of awareness, training and support total loan portfolio provided to farmers to meet these by 2014 from standards. current level of  Review all existing BQAs and around 0.6%. commodity protocols. Assessment to  Agricultural be undertaken on market needs and Census completed current level of supply. This by 2010 information is to be widely  Maintain Food disseminated to farmers. Import Capability  Improve training services. Review and Index at 0.17 or better coordinate training programs in better. various ministries. Make training more farmer friendly, more accessible, and affordable.  Conduct household, village, settlement food security awareness and support.  Promote standards for all commodities and food stuff sold locally. 84

3.3.11 Forestry Goal: Sustainable development and management of forest resources Policy Objective Strategies Key Performance Indicators Conservation and  Institute forest sector  Adoption of revised management of forest and reform through legislation to support the biological resources enhancement of national Fiji Forest Policy capacity to manage and Statement 2007 and develop the sector National Forest Program.  Promote ecosystem by 2010. stability through  Restructure of the conservation of forest Department of Forest, FPL biodiversity, water and FHCL by 2010. catchments and soil  2 forest native reserves fertility. identified and gazetted by  Promote sustainable 2014. supply of forest products  Increase forest area by 2% and services by annually. maintaining large  Establishment of 5 permanent forest area. conservation area and  Building partnership in protected forest areas by forest plantation 2012. development.  Enhance engagement of landowners and communities in sustainable forest management plans.  Determination of annual allowable cut. Forest resource utilization  Evaluation of yield and  Increase export volume for optimum economic quality of forest and value by 5% by 2011. benefits products.  Increase efficiency in  Development of timber production by 5% standards and guidelines. from 2010.  Undertake research  Adoption of Fiji Forest focused on timber Certification in 2010. utilization and product  Establishment of development to Competent Authority to diversify the export base. Support Forest  Promote resource certification. Certification utilization efficiency in of Pine and Mahogany primary and secondary Plantations by 2010. processing.  Determine value of carbon  Diversification into credits from forest. wood energy production  Increase employment in and pine resin tapping the sector by 1% annually by Fiji Pine Limited. from 2011. 85 Goal: Sustainable development and management of forest resources  Increase resource owners participation and business ownership by 5% by 2012.  Develop a non-wood product industry to generate at least $5 million by 2012.

3.3.12 Fisheries Resources Goal: Pursuing growth and ensuring food security through sustainable fisheries resource management Policy Objective Strategies Key Performance Indicators Ensure food security  Review of policy,  Adoption of revised through sustainable legislation and institutional legislation, policy and fisheries resource arrangement. management plans by management 2010.  Promote ecosystem approach to coastal  Restructure of the fisheries and aquaculture Department of development. Fisheries by 2010.  Review of the Total  110 MPA identified Allowable Catch (TAC). and gazetted by 2014.  Build capacity at  Complete Marine community level to manage Inventory Survey of its resources. 410 Customary Fishing Areas by  Enhance resource 2012. assessment and management of inshore and  Increased freshwater inland fisheries. fish and prawn production by 5%  Strengthen food security respectively by 2012. through freshwater aquaculture.  Maintain and control healthy oceanic fisheries. Fisheries resource  Evaluation of fisheries  Increase export utilization for optimum resources. volume and value by economic benefits 5% by 2011.  Development of trade standards and guidelines.  Full compliance to the EU fish export  Undertake research focused standard in 2010. on product development to 86 Goal: Pursuing growth and ensuring food security through sustainable fisheries resource management Policy Objective Strategies Key Performance Indicators diversify the export base.  Increase catch and  Build local industry income of small scale capacity on HACCP and fishermen by 2% CITES requirements. annually by 2010.  Support local industry to  Increase employment meet compliance standards in the sector by 1% for re-entry into EU annually by 2011. market.  Increase resource  Encourage public and owners participation private sector partnership and business in industry development. ownership by 5% by 2012.  Improve linkages with tourism industry and local  Increase income by market. 5% from existing commodities.  Support existing income generating commodities: (seaweed, aquarium , tilapia, prawn, pearl). 87

3.3.13 Mineral and Groundwater Goal: Pursuing growth through sustainable mineral and groundwater resource management Key Performance Policy Objectives Strategies Indicators Sustainable  Strengthen resource management  Sector contribution to development and by proactive enforcement of GDP restored to 1.1% management of provisions of the Environment by 2012. mineral and Management Act and other  Promulgate revised groundwater legislations. Mining Act in 2010 resources to ensure  Implement Vatukoula  Annual exploration long term economic Rehabilitation Program expenditure doubled to benefits for all.  Complete the process of reviewing $12 million by 2010. the Mining Act to promulgation.  Increaes gold exports  Capacity building within the to at least $77m Department of Mineral Resources. annually by 2012.  Review fiscal regime for mining  1 new mining sector to be regionally operation developed competitive. by 2014.  Build local capacity and  Formulate a Long institutional support for the Term Strategy or exploration and development of ‗Road Map‘ for the other segments such as offshore Mining sector by 2010 mineral, gas, geothermal energy,  Target $100m in marble quarrying etc. bottled water exports  Publish EIA Reports of all mining by 2012. operations be made on quarterly  Groundwater basis, including costs of contribution to GDP exploration by Tenants. be increased to 2% per  The establishment of a Mineral 3 years. Resources Authority to be mandated by legislation.  The adoption of a National Policy Framework in the use of Best Practices to act as guidelines for planning, research and decision making for all engaged in the Mining Sector. This will create better working relationship and increased understanding between landowners, developers and government.  Put in place appropriate policy and legislative support for the management and utilization of water resources, including groundwater. 88

3.3.14 Financial Services Goal: An effective, competitive and stable financial system Policy Strategies Key Performance Indicators Objectives People and  To review, evaluate, implement  Improvement in the accessibility organizations and monitor appropriate by micro, small and medium in Fiji have recommendations of the COIFS enterprises to loanable funds for access to report, the 2007 FSAP, EFF economic purposes. appropriate review, Action plan for  Encourage promotion of access to modes of Insurance and Guarantee basic banking services for rural transparent, Schemes, FNPF studies and areas and the reduction in sound and restructure of Fiji‘s unbanked areas by 2011. secure superannuation sector, FDB  Establish an indicator, which financial and review recommendations and the allows the Government to both banking Rural banking survey measure and monitor this facilities. recommendations. accessibility on an on-going basis.  Promote development of formal  More use of export finance financial institutions in all rural through awareness and promotion and outer island areas. by commercial banks  Develop, promote and monitor  Increased awareness of financial instruments which Suspicious Transactions provide cost effective export Reporting (STR) and issues finance to remove financial relating to money laundering and constraints on exports. financing of terrorism throughout  Increase the usage of all sectors of the economy. FIJICLEAR.  Ensure that all major players  Enhance safety and protection of (FNPF, Government, FIRCA, etc) financial institutions and use FIJICLEAR financial services from their use  Formalise and finalise all and abuse by criminals for reporting lines of STRs by 2009. money laundering, corruption,  Achieve full compliance of the fraud and other serious crimes. requirements of the Financial  Promote and protect customer Transactions Reporting (FTR) interests in financial services Act.  Review legislations and  Ensure that financial institutions regulatory procedures, including under the FTR Act put in place micro-finance regulations and appropriate know-your-customer legislation on RBF, Banking, rules and procedures and develop Insurance, and Superannuation. and employ due diligence  Enhanced monitoring of bank policies. fees and charges.  Banks to fully justify fees and  Collect and analyse data from charges and inform RBF and to credit unions, micro finance have complaint process in place operators and similar sources. and monitored by RBF.  Provide legal backing to Fiji  Total equity market capitalization Accounting Standards and Fiji of listed entities increased to Standards on Auditing. 100% of GDP by 2010. 89 Goal: An effective, competitive and stable financial system Policy Strategies Key Performance Indicators Objectives  Establish an active capital  Value of shares traded on the market of international standard stock exchange annually and encourage debt and equity increased to 2% of market products to list on the stock capitalisation by 2010. exchange.  The completion of the sector  Adopt international best regulator survey by 2009 and the insurance and funds management identification /initial plans practices. towards implementation by 2010.  Enhance the public debt  Review the relevant legislations management system. by 2009 and to be in place by  Broaden the range of instruments 2010. in consultation between  RBF to continuously develop Government and RBF. policies and guidelines for the  A survey to be undertaken in financial sector that are in line identifying/establishing an with international and best appropriate financial services practices. regulator.  Have a superranuation legistation in place by 2010. Widening  Increase rural and outer island  To explore avenues to capture coverage of households with savings in remittances within the capital financial institutions and banks from 30% markets. services to 50% and with borrowings  Develop a National Strategy for from 6% to 25% by 2012. the development of micro, small and medium enterprises.  Setting up of incubator programme for MSMEs‘.  Strengthen the central bank‘s monitoring and supervisory role.  Develop/establish an information sharing network system amongst entities in the financial services sector. Adequate  The detection of suspicious  RBF‘s Finacial System prudential transactions increased from 300 Development and Compliance supervision to 500 by 2011. Group to collect and disseminate  Increase rural and outer island data on fees and charges, households with savings in complaints, etc. Establish a institutions and banks from 30% Financial Services Ombudsman. to 50% and with borrowings  Examine whether there are from 6% to 25% by 2012. adequate mechanisms for protecting consumers and addressing consumer complaints.  Establish a Financial Services Commission to look at customers‘ grievances, manage a 90 Goal: An effective, competitive and stable financial system Policy Strategies Key Performance Indicators Objectives comprehensive program of consumers‘ awareness and education and provide. information and guidance on financial institutions.  Review financial services transaction framework to encourage lending to sole traders and small proprietorships  Ensure that the financial system is operating under a sound and stable environment with appropriate levels of funds management and improved disclosures of financial statements.  RBF‘s role in monitoring and supervising the financial services system must be increased to contain or mitigate exposure to economic or financial shocks. Deepening  Development of the Capital  Establish a Capital Markets financial Markets which includes market Master Plan; markets infrastructure and  Review of legislations impacting microstructure; policy the financial markets; frameworks and enabling  Enhance the value proposition for legislation; training and Fijian issuers; development for intermediaries;  Improve the role of the capital awareness and education market in meeting investors programs for investors and preferences; businesses by 2009.  Develop internationally competitive market institutions  Development of capital market and intermediaries; regulatory aspects which include  Ensure the effectiveness of licensing market players; regulation within the changing protecting investors through market environment; prudential supervision; ensuring  Formulate a comprehensive compliance with relevant laws vision and programme for the and rules by market players; development of Fiji‘s capital regulating & supervising the market; Stock Exchange; and promoting  Formulate a framework for the Good Governance by 2015. orderly and effective sequencing of deregulation and liberalization;  Do a roadshow and invite players and in Singapore, Malaysia to open  Identify and map the direction for financial institutions in Fiji. 91 Goal: An effective, competitive and stable financial system Policy Strategies Key Performance Indicators Objectives the strategic positioning of Fiji‘s capital market both domestically and externally. Management  Using private fund managers to  Split up the management of the of invest FNPF funds, FNPF‘s investment portfolio. superannuation demonopolize the industry with  Deregulation of the funds superannuation remaining superannuation industry mandatory, and demonopolizing (demonopolisation of FNPF). the industry with superannuation  Improve the financial literacy of optional for each citizen by its members. 2015.  Government to issue a yearly  Individual participation in the program indicating when it will market is negligible To promote issue bonds and Treasury Bills in wider participation, share the market, in order for the market investment scheme of the FNPF and investors to be ready and be extended to Government and prepared for the issuance of these Government guaranteed bonds papers. by 2015.  Government to consider issuing bonds only earmarked for small investors by 2011.  All offshore investments strengthened. 92

3.3.15 Transport Goal: An integrated transport system that is efficient, safe and environmentally sustainable Policy Strategies Key Performance Objectives Indicators Multi-modal:  Review Government Subsidies on Transport.  At least one  Attract potential investors to provide alternative transport PPP To ensure modes of transportation through PPP project valued at access to safe, framework. over $100 million efficient,  To promote the use of public transport. by 2014. affordable and  Introduction of effective measures to reduce the  Reduction in environ- number of road deaths, mishaps at sea and air annual fatalities mentally crashes through enabling legal frameworks. on all forms of sustainable  LTA, FIMSA and CAAFI incorporate stringent transport by at transportation safety and security measures. least 20% from services.  To continue investment in the construction, the present 90. maintenance and upgrading of the national transport network supported by enabling legislation and regulation enforced.  Ensure access to all forms of transport.  Promote the use of fuel efficient vehicles.  Undertake a wider study on the transportation system in the Suva-Nausori corridor, including study of intermodal and peak hour variability, and make and implement appropriate decisions on the recommendations. Land  Protect investment in the national land transport  Not less than Transport: network through effective controls on vehicle 125km of national overloading and adequate maintenance. roads resealed and To enhance  Reform and consolidate the land transport 40km livelihood by sector. rehabilitated each reducing cost  Reform the Government Quarry. year. of transport of  Acquisition of plants and heavy machinery.  Annual CO2 people and  Continue the revision of traffic management emissions per goods. schemes. capita reduced  Control the importation ages of second hand from 1.6mt to vehicles. 1.0mt.  Introduce alternative fuel powered vehicles.  Average vehicle  Review the Land Transport structure and emission levels funding mechanisms for implementation. reduced from  Improve vehicle operating costs by investing in 40,000 ppm to more maintenance. 20,000 ppm.  Consolidation of the Traffic Act (Cap 176)  Reduce vehicle emission opacity  Review of the Land Transport Act, 1998 and from 70% to 35%. subsidiary regulations.  Reduce road  Merger of LTA & Dept of National Roads death toll from (PWD) 120 to 50 pa.  Protect investment in the national land transport 93 Goal: An integrated transport system that is efficient, safe and environmentally sustainable Policy Strategies Key Performance Objectives Indicators network through effective controls on vehicle overloading and adequate maintenance  Reform & consolidate the Land Transport Sector  Self-funding mechanism develop for LTA, DNR, NRSC, Police Traffic & Municipalities.  Implementation and monitoring of user-pay principles  Improve the traffic management schemes and reduce traffic congestion at main trunk routes  Review current LTA traffic infringement fines and penalties.  Control the importation of second-hand vehicles  Introduction of alternative powered vehicles  Review the Land Transport structure & funding mechanisms for implementation  Improve vehicle operating costs by investing in more road maintenance Marine  Improve efficiency at ports and provide  Annual tonnage Transport: competitive international port charges, of international including for cruise ships. cargo handled in Communities  More frequent services to Maritime Provinces. Fiji ports and the country  Develop and upgrade seaways and main rivers. increased from enjoy better  Ensure a high level of safety and security in sea 3.3 million access to transport and prevent marine pollution. revenue tons in passenger and  Provide economical, safe, adequate and efficient 2005 to 5 million cargo shipping facilities for the transport of goods and people by 2011. services. to facilitate trade, transshipment and other  Minimum of 2 related functions. trips per month on  Ensure optimal location, updated design and each outer island construction of existing and new jetties. route.  Commence implementation of Rokobili Port.  Fiji maintains its  Review of the Shipping Franchise – ROI. White List Status.  Review of Fiji Shipping Corporation Ltd – ROI.  Main Ports  Re-organisation of FIMSA & review of the maintain ISPS Marine Act, 1986 and subsidiary regulations. Code status.  Develop a user pay concept for all possible  Integrated income generating capacity for the service provincial provided and to review the current charges on development services rendered.  Traveling public  Facilitate the training program for the satisfied with apprenticeship scheme for the 20 intakes for government 2009 and ongoing apprentices. shipping services.  Draft and promulgate a Marine (Aids to  Smooth Navigation) Regulation operations of the shipping fleet. 94 Goal: An integrated transport system that is efficient, safe and environmentally sustainable Policy Strategies Key Performance Objectives Indicators  Provision of adequate maritime infrastructure  Qualified people such as Aids to Navigation (AtoNs), Mooring in the ship Buoys, Beacons, etc. building industry.  Identification and development of new &  Improved and shorter sea routes. safer shipping.  Replacement and maintenance of lighthouses  Global integration and beacons. & international  Update registry and improved database & relations archival records  The Maritime &  Update registry and improved database & Port Sector and archival records the Marine  Provision of Safety standards, risk analysis, environment are monitoring, enforcement, communication and safe, secure and operational capabilities necessary to ensure the clean for all its safe, secure and effective operation of the users. maritime safety system and the protection of the  Procedure marine environment. familiarity  Cruise Ship and Yachting Tourism promoted,  A comprehensive using improved outer island infrastructure and information Aids to Navigation – ROI. management  Introduction of effective methods to reduce system supporting number of accidents and incidents at sea through the enhanced education including enabling legal framework scope of FIMSA.  FIMSA to enforce stringent safety and security  Maintenance of measures in accordance with the ISPS Code international  Improve efficiency at ports and provide standards. competitive international port charges including  Maintenance of cruise ships international  Provision of up-to-date, timely and accurate maritime Hydrographic publications necessary for safe and standards. efficient navigation for navigable waters of Fiji  Improved in the most cost-effective and efficient manner. hydrographic services Air Transport:  Continued improvements in airport infrastructure  3 or more airlines and facilities, including capacity extension at with unsubsidised, To promote Nausori to accommodate 737-800, widening at scheduled domestic development of Savusavu, and upgrading at Rotuma to facilitate flights. tourism and as port of entry.  Passenger seat km exports to  Design a model that will take care or manage on domestic flights expand non-core activities of CAAFI restored to 1999 industries  Increased number of passenger seats per annum. levels of 110 relying on air  Improved runway capacity to meet additional million by 2010 freight. cargo requirements. and increased to  Utilization of additional air traffic rights under not less than 150 existing ASAs by 2009. million by 2011  Restructure and reform the aviation industry in from 73.1 million 95 Goal: An integrated transport system that is efficient, safe and environmentally sustainable Policy Strategies Key Performance Objectives Indicators line with international standards by 2009. in 2005.  Airstrips to be compliant with ICAO  International international standards. airfreight capacity  A new international airport in Vanua Levu to be increased from 700 evaluated and considered by 2010. million tonne/km  Review the role of Air Pacific in the in 2005 to not less development of the tourism and export sector than 1,000 million  Encourage domestic and regional aviation tonne/km by 2010. competition to benefit Fiji‘s travelling public, tourism and export sector.

3.3.16 Energy Goal: A resource efficient, cost effective and environmentally sustainable energy sector Policy Strategies Key Performance Objectives Indicators The  Enact/enforce appropriate legislation  GDP per kg oil community has to improve sustainable energy use, equivalent, at constant increased including the National Energy Policy 1995 prices, increased secure access (NEP) and Renewable Energy Based from $5 in 2004 to $8 by to affordable Rural Electrification Act (to be 2010. and reliable remove).  90% national energy  Develop and implement a national electrification coverage supplies. electrification master plan covering by 2012 with urban both grid and stand–alone systems increased from 95% to with appropriate resources. 98%and rural areas from  A specific Power Development Plan 70% to 85%. is put in place for Vanua Levu.  Household power outages  Monitor customer satisfaction on on Grid Lines are each national grid power availability and not more than 5 minutes other appropriate aspects of service by 2012. delivery.  IPP to produce between  Formation of an appropriate 200 - 250 GWh of energy independent regulatory agency and per year by 2012 review the Electricity Act.  Greater collaboration within the industry and with other sectors and strengthen private sector involvement in all forms of energy, including review of tariffs, cost recovery and competition in energy 96 Goal: A resource efficient, cost effective and environmentally sustainable energy sector Policy Strategies Key Performance Objectives Indicators production.  Encourage competition in the generation of energy. Strengthen the  Establish a reliable energy  An up-to-date and reliable capacity for information system for end use energy statistics and a energy decision making at all levels. user friendly information planning and  To put in place appropriate system by 2010. information institutional structure.  Appropriate staffing management  Strengthen coordination and structure adopted by 2010 for energy consultation with key stakeholders  A vibrant network with sector and the external environment on energy institutions locally energy development (issues with and internationally. regards to Climate Change, CDM,  Secure additional and new Renewable Energy Technology funding sources with Transfer etc.) donor agencies. Enhance  Assess Fiji‘s energy security  Report on Fiji‘s Energy energy security situation to guide future policy Security Situation to be through greater decisions. completed in 2010; and participation  Reduce inefficient use of energy recommendations and through research, demonstration, adopted. collaboration energy audits, regulation, building  Improvement in the within the codes, and create a robust market for national electricity mix industry. energy efficient appliances. from 40/60 renewables to  Mandate the adoption of Minimum fossil fuel to 90/10 for the Energy Performance Standards and grid and from 5/95 to Labelling for refrigerators and 55/45 for off grid energy freezers in Fiji. by 2012  Promote measures to reduce fossil  10% reduction (after fuel consumption, including in the growth adjustment) in the transport sector, and encourage national electricity grid alternative fuels for the power and consumption by 2014 transport sectors.  All freezers and 97 Goal: A resource efficient, cost effective and environmentally sustainable energy sector Policy Strategies Key Performance Objectives Indicators  Assess and promote development of refrigerators sold in Fiji local renewable energy resource comply to the relevant potential in Fiji. adopted standards by 2010.  Energy Efficiency and Conservation Measures incorporated in the local building codes by 2011.  20% of fuel for transport is met through bio-fuel (E5 & B10), LPG and other renewable sources by 2012  30 biogas plants installed in rural areas every year.

3.3.17 Water and Sewerage Goal: Access to safe drinking water and a sanitary waste disposal system Policy Objectives Strategies Key Performance Indicators The community is  Expand rural water supply  90% of the urban served by access to schemes and extend and upgrade population and 75% of reliable and adequate major urban and regional water the rural population supplies of safe water in schemes to include rural areas as have access to safe both urban and rural outlined in their respective master water supply by 2012 centres and to sanitary plans.  Increase in the annual and environmentally  Expansion of the sewer number of water safe sewerage waste reticulation network and connections to new systems and treatment sewerage treatment facilities and customers from facilities promote the need for care of the approximately 3,000 to environment 3,500.  Private sector participation in the  Increase in the urban provision of capital works of population with water and sewerage services sewerage connection to increased through outsourcing or not less than 35% by management contracts and 2012 reorganisation of Water and  Level of unaccounted Sewerage Department as a Fiji for water reduced from Water Authority, supported by approximately 30% to review of tariffs and to improve 25% by 2012. efficiency and effectiveness. 98 Goal: Access to safe drinking water and a sanitary waste disposal system Policy Objectives Strategies Key Performance Indicators  Identify 30 possible water and sewerage projects and prepare cost estimates and tender documents for implementation under contract; and promote aggressive leakage reduction programmes by setting targets for volumetric savings per month. 99 CHAPTER 4 Chapter 4 Socio-Cultural Development

4.1 Review of Social Development

4.1.1 Human Development Index and Millennium Development Goals One of the key purposes of good governance is the creation of a society free from poverty where all have equal access to their basic needs and social justice is assured. The challenge is not only to reform the economy in order to boost economic growth but also to empower the people as a means of revitalizing their livelihoods. This calls for a human rights approach to development planning that places people at the centre of development efforts. The added value provided by this approach is that the norms and values enshrined in it have the potential to empower the poor. This is important, because it is now widely recognized that effective poverty reduction is not possible without empowering its people. Most of the social indicators have worsened in Fiji over the past decades. These indicators include the Human Development Index (HDI) and the Millennium Development Goals (MDGs) - the proportion of the people living in poverty, maternal and child mortality rates, and primary school enrolments. The HDI is a widely accepted measure of a country‘s progress in attaining satisfactory levels of education, health and income. Fiji‘s ranking was 42nd in 1975 but dropped to 61st in 1997. Its position further eroded in the late 1990s. Based on the 2007/08 UNDP Human Development Index, Fiji currently is placed 92nd out of 177. Samoa and Tonga — which had rankings similar to those of Fiji in the 1970s — have performed much better than Fiji in recent years, with rankings of 77th and 55th in 2007/08 respectively. The MDGs and their associated targets and indicators, which were endorsed by 189 countries including Fiji at the 2000 Millennium Summit, provide a recognised set of indicators that can be used to judge the key elements of social progress. 23 of the 58 MDG indicators are included as Key Performance Indicators in the relevant chapters and links to MDG indicators are stated. The revised monitoring framework for MDGs is attached as Appendix 2.

4.1.2 Global Partnership for Development The purpose of any aid programme is to contribute to the improvements in the lives of the poor in the community. The aid effectiveness agenda, enshrined in the Paris Declaration of Aid Effectiveness (2005) and more recently through the Accra Agenda for Action (AAA) (2008), aims to improve the quality of delivery, management and use of official development assistance (ODA) in order to maximize its development impacts. 100 The Paris Declaration on Aid Effectiveness represents a significant step towards formalizing and focusing international efforts to improve the effectiveness of aid and its contribution to development. Given the strong support of the above by Pacific Island Member Countries and Development Partners, the Pacific Islands Forum Secretariat (PIFS) was directed to develop a set of Pacific Principles for Aid Effectiveness. In April, 2008 Pacific Island Countries participated in a Regional Workshop in Nadi to consider progress in the implementation of the Pacific Aid Effectiveness Principles and in preparation for the Accra High Level Forum on Aid Effectiveness. Relating to the above, the Fiji Government recognizes the need for Global Partnership for Development, specifically relating to Goal 8 of the Millennium Development Goal. The Roadmap aligns donor programmes to its development initiatives. The Roadmap acknowledges the need for strengthening donor coordination and ensures its commitment to increase the effectiveness of aid through adhering to the principles of the Paris Declaration. Development assistance to Fiji is important and development partners continue to work with Government to improve the livelihoods of people in Fiji. However, aid donor grants are not large and represented around 1.3 % of Fiji‘s GDP in 2003. Donor grants fell in 2000, as most development assistance was withdrawn following the May 2000 crisis. Donor funds increased in 2001 and were restored to more normal levels in 2002. Estimates for 2004 and 2005 show that donor grants were more than doubled compared to 2002 as the Australian programme expanded and the EU programme was re- established. Loan finance is also available through the Asian Development Bank. Donor programmes are well-aligned to the areas covered by the MDG‘s. In the Education Sector, the Fiji Education Sector Programme (FESP) continues to assist the Ministry of Education with the provision of improved infrastructure and upgraded facilities. The total 5-6 year programme with a Non-State Actor component has been funded via a $45million grant from the European Union. Likewise, assistance to the Ministry of Education in terms of capacity support, relevant training and upgrade of tertiary qualifications will likely be the focus in the next 5 years for the second phase of the AusAID funded Fiji Education Sector Programme. Scholarships from NZAID and AusAID will continue to provide the thrust for higher learning for those seeking further education. The construction of the Japanese Government funded ICT Centre at the University of the South Pacific will see a state of the art learning environment conducive to delivering better ICT outcomes for not only Fiji citizens but the Pacific populace that study there as well. In the Health Sector, a second phase of the AusAID funded Fiji Health Sector Improvement Programme is envisaged to commence in 2010, possibly for the duration of another 5 or so years. This initiative will likely focus on strengthening the capacity of the Ministry of Health to provide an even more efficient and effective standard of service delivery to the citizens of Fiji. The NZAID Medical Treatment Scheme will continue to 101 complement Government‘s own efforts to provide medical treatment abroad. The interventions of WHO and UNFPA in areas dealing with support for training, population- related initiatives, preventative programs and general health assistance should continue in the near future. Development Constraints and Challenges Whilst the level of Government-Donor engagement is relatively significant during the review period, the lack of proper framework to guide this engagement was an issue of concern. Donor coordination and enhanced partnership needs to be strengthened. To this end Government aims to improve its coordinating mechanisms, using proper guidelines and procedures whereby government and donors will work together to ensure that Government‘s priorities are addressed for sustainable development. Government is committed to increase the effectiveness of aid through adhering to the principles of the Paris Declaration and the Pacific Principles.

4.1.3 National Identity and Social Cohesion Fiji is a multi-racial, multi-cultural and pluralistic country with a multiplicity of languages, religions and ways of living. However, the country is a fragmented society because there is no unity amongst the two major ethnic group. Previous attempts were made to address racial differences and disunity by successive governments, NGOs and Civil Societies, but did not come to fruition. There is an absence of a National Identity. At present the citizens of Fiji identify themselves more strongly with their religions, ethnicity and by their various community or province than by nationality. Most of the i-Taukei lived in villages, grouped into districts and provinces and they had aligned themselves with Christianity because it brought civilisation into the country and was the first western religion to arrive in Fiji through the missionaries whereas Fijian Indians are mostly associated with Hinduism and Islam; and Fijian Chinese with Buddhism. Within each of the ethnic or religious groups, there exist various other sub- divisions, such as tikinas or districts, which embrace many villages. Districts have similarities and differences in terms of dialects, religious beliefs and culture. Different religions have different denominations, sects and sub religious groups. We as people of this country lack understanding and appreciation of each others socio-cultural uniqueness. This contributed to religious intolerance and religious sacrilege because people do not appreciate and respect others faiths and beliefs. These differences were usually taken by many of our political leaders to gain political mileage. During the past thirty eight years, political leadership played a key role in dividing rather than uniting our people. The division was derived from the colonial system of leadership of divide and rule. Our leaders have failed to unite our various communities in a form that truly reflects our diversity. Weak and poor leadership contributed to the building of a fractured and fragmented society. Leadership in the past had intentionally kept the people of Fiji apart, and had 102 used the race card for their survival. If Fiji‘s leaders and its people do not work together or join hands to define what we have in common and what we want to achieve together in the future we will never achieve the peaceful and prosperous society which we all aspire to. Development Constraints and Challenges The lack of social cohesion has contributed to exclusiveness and lower economic growth. One of the main challenges we face is how to unite people who comprise several ethnic communities with diverse social, economic and cultural backgrounds. It is this diversity which requires a symbol that is acceptable for the whole population, as a basis for the development of national identity and creates firm allegiance. This allegiance can be constructed, made concrete, communicated and maintained over time. The process to negotiate a national identity is a continuous process which demands inclusiveness and the fair representation of people and cultures. The end results ought to be a shared conviction that people are socialized into believing its essence, resulting in its internalization. A process needs to be designed and facilitated that can include the participation of all communities and leaders need to be focused on our nation rather than their sectional interests. We need to build Fiji into a non-racial, culturally-vibrant and united, well- governed, truly democratic nation that seeks progress, and prosperity through merit-based equality of opportunity, justice and peace. Establishing a national identity through a common name is of utmost importance with education, religion, and culture having important roles to play in our peaceful co-existence, social cohesion and nation building.

4.1.4 Poverty Reduction The growing incidence and the dynamics of poverty in Fiji have stratified and polarized Fijian society between the haves and the have-nots and between the educated and the uneducated. Poor parents beget poor children, creating a kind of dynasty of the poor. The resulting tensions and social conflicts have eroded the fabric that held the Fijian society together. Poverty reduction is the most difficult challenge facing Fiji and its people and the greatest obstacle to the pursuit of sustainable socio-economic growth. Reducing poverty has been a core policy objective of successive Governments for many years and has been regularly articulated in development plans and strategies and annual budgets. Poverty reduction is a core objective of all development partners and the first MDG concerns the eradication of extreme poverty and hunger. On the basis of the 2002/03 Household Income Expenditure Survey (HIES) results, 34.4% of the population lived below the Basic Needs Poverty Line (BNPL), indicating a 5% increase from the 1990-91 HIES. Most of those in poverty are people living in rural areas, particularly those from the Fiji Indian community. The poverty gap is estimated to have been $2,616.64 per year for an average household. The gap is the difference 103 between the national poverty line (estimated at $8062.6 in 2002), and the average income of a poor household ($5,445.96 per year). This indicates the depth of poverty. Fiji remains a society with deep income inequalities. The 2002-03 HIES shows that the poorest 20% of households received 5.9% of the national income while the top 20% of households received 47.9% of the national income. Results of the 2008-09 HIES will be available by the end of 2009. Further, the estimated basic needs poverty line (BNPL) per household per week increased from $28.45 in 1977 to $83 in 1990 and to $132 in 2002. Statistics collected from various HIES indicate the existence of high levels of poverty in Fiji although the non- availability of consistent data on poverty has resulted in various viewpoints on the actual levels of poverty in Fiji. There is clear evidence of a worsening of the poverty situation (35% by 2002) and there has been no evidence of any significant improvement in more recent years. Poverty has many dimensions, one of which is the extent to which people have sufficient food. In the MDGs, this issue is measured by the prevalence of under-weight children, and the proportion of the population who are receiving less than the minimum level of dietary intake. The most recent national figures were collected by the 2004 Fiji National Food and Nutrition Survey. The survey found a low incidence of child malnutrition. At a national level, the incidence of under-weight children less than 5 years of age in Fiji was 15% in 1980, 10.5% in 1993, and 7% in 2004. Coordination and monitoring of all poverty targeted programmes is essential. The Poverty Monitoring Unit needs to be strengthened to implement the National Integrated Poverty Eradication Programme Framework. Government remains committed to funding ongoing poverty targeted programmes such as assistance for housing and squatter upgrading, microfinance, education assistance and family assistance. This is evident in the increase of the minimum monthly Family Assistance allowance of $30 to $60. Rural livelihood development projects, including the Rural and Outer Island Development Project and the Northern Development Programme will supplement existing government initiatives towards poverty alleviation. Mainstreaming issues facing people living with disabilities is a great challenge but also a crucial component of poverty reduction. Through the Department of Social Welfare and the Fiji National Council for Disabled Persons, the Government adopted the Fiji National Disability Policy in November 2008. Identified outputs of the policy will enable the advancement of programmes, development of strategies and identification of activities to improve and progress the status and well being of people living with disabilities. The first ever national count of people living with disabilities has been completed and more than 10,000 have been recorded to live with some form of disability, mental, physical or both. The results of the count will enable the development of focused programmes and targeted interventionto be designed to reduce the vulnerability of people with disabilities. 104 Development Constraints and Challenges National income redistribution is the main cause of poverty in Fiji. Low economic growth is compounded by the instability of land tenure, which affects a range of activities in the economy. The key issues inhibiting poverty reduction include; a lack of political commitment; political instability (weak governance); lack of access to economic assets, markets and social services; ineffective coordination, implementation, and monitoring; lack of participation by all stakeholders vis-à-vis Government, the private sector and civil society; absence of sustainability mechanisms in programmes and projects; and lack of involvement of beneficiaries in project design, implementation, monitoring, and evaluation. The creation of more sustainable, secure employment opportunities with better wages is the long-term mechanism for moving people out of poverty. However, at current levels of economic growth, there are restricted job opportunities and inadequate support for the poor to enable them to take greater advantage of existing opportunities. There is a need to provide an enabling environment and stimulate the active participation of the private sector, civil society organizations, communities, and development partners generating income earning opportunities. Widening income inequality is increasing poverty in Fiji. Economic growth has tended to benefit those already better off, further worsening the rural- urban disparity. Fiscal policies over the past decades have not addressed income redistribution. An emerging challenge is the weakening of the traditional family support system, resulting in more people seeking welfare assistance, particularly the elderly. There is a need to empower all citizens through education. There are a large number of students dropping out early from school. With limited skills and knowledge to improve their livelihoods, early school leavers make up a large number of the unemployed and subsequently contribute to the rising tide of crime and violence. There are acute shortages of infrastructure and facilities at all levels. The education system emphasizes theoretical knowledge at the expense of technical, vocational, and entrepreneurial education. School curriculum need urgent review to make them relevant and practice oriented. There is a need to provide unhindered access to compulsory universal basic education to all citizens as a bridge to the future socioeconomic transformation and establish and maintain enhanced quality and standards through relevant, competency-based curriculum and effective quality control at all levels. One of the major drawbacks in monitoring poverty in Fiji has been the lack of appropriate, comprehensive and timely data and analysis on which to assess the actual level of poverty. Welfare services for the very poor or destitute are provided by several government agencies as well as by NGOs, but there are very few well-coordinated reporting systems. 105 The area of disability has, over the years, endured considerable development constraints like financial assistance, human resources, technology and infrastructure and the lack of data and statistical information on all areas and forms of disability. Continuous challenges faced by people with disabilities and organisations include the mainstreaming of disability issues in all programs of Government and civil society organisations; strong collaboration between all partners on service delivery and program implementation; advocacy and awareness of concerns for the rights of people with disability; and the limited ambit of laws and regulations governing the area of disability.

4.1.5 Housing and Urban Development Fiji‘s housing crisis is real and pervasive. An indicator of this is that there are currently about 200 squatter/informal settlements comprising of about 100,000 people in the country. The majority of these people constitute the bulk of the 387,000 people earning less than $7,000 per year. Approximately 50,000 low to moderate income households currently need decent, safe, affordable housing. In seeking to meet these need, the production of mixed-income housing development that provides for broad income diversity in neighborhoods is deemed a desirable social and economic goal, however the form the actual design and implementation of this option takes is crucial. The continuous growth of urbanization in the Fiji economy and population indicate that strong demand for housing will continue. The provisional 2007 population census results show an increase in urban household by 18.4% with approximately 61,300 total increase in population. 51% of the population is urban and that the urban growth rate is 1.7% compared with the national growth rate of 0.7%. Approximately 90% of the increased population (55,266) is in the Western and Central Division. The Suva and Nausori Urban and Peri Urban area alone has an increase in population of approximately 32,300. This poses significant challenges in terms of planning, delivery and community development. The housing needs of the majority of people in Fiji are met by the private sector, however with the expiry of land leases there is increasing number of people seeking housing. This is evident with the growing number of informal settlements and the growth of private rented housing sector. The level of private provision depends of course on significant Government support through:  Capital investment in infrastructure;  Planning and regulatory regimes which facilitate the efficient operation of the market; and  Support to households under the fiscal and income support regimes. Enhancing the local government framework remains a key strategy for addressing housing, squatter settlement and other urban development needs. There is a need to create a more amiable relationship between national and local government authorities to allow for more effective national development programmes to be carried out in towns and cities. The completion of an independent review of the local government framework will 106 provide the Government with options on how to improve the delivery of municipal services and accountability of local government authorities, which are currently under the control of Administrators appointed by Government. Development Constraints and Challenges There are two important issues that need to be addressed for Fiji‘s housing sector. Firstly, that the key instruments to address the challenges for the future are in the areas of ―planning, urban design, infrastructural investment, land management and public service delivery‖. Secondly, that a greater quantity of housing must not be at the expense of quality development. The plan to encourage the use of land to improve rural situations eg through providing incentives for rural living to reduce urban migration is a necessary complementary initiative. Resource constraints has contributed to Governments being unable to provide enough land for people to prosper, build and own houses and ultimately form sustainable communities. Sustainable housing programs should go hand in hand with income generating opportunities and accessibility to amenities. Currently, Fiji does not have an employment strategy. Having an employment creation strategy, together with the availability of more land, could help in resolving both the unemployment situation in rural areas and urban migration. Key agencies involved with the management, acquisition and utilization of land in Fiji eg Lands Department and the NLTB need to rationalize and formulate a transparent, consistent process for acquiring land for housing development. Most of the informal settlers live on ‗vakavanua’8 land, given to them some 30 to 50 years ago to settle. There is a need for Native Land to be allowed the opportunity to be developed in a manner that would be beneficial for all stakeholders especially landowners. The lack of development capital has been identified as a major constraint. To acquire quick returns, some landowners have resorted to issuing ‗vakavanua’ leases all around Fiji. There is a need for a more integrated, coordinated and holistic approach in the development of policy and the implementation of stakeholder programmes for housing in Fiji. This should include periodical review and ongoing dialogue among stakeholders on their perspectives on housing issues in Fiji and would necessarily include information sharing and partnerships in the delivery of low cost housing programmes. Because the actions and authorities of multiple government and semi-government departments and agencies explicitly and implicitly affect housing, inter-agency communication and the sharing of resources would facilitate for delivering more affordable, accessible housing. It is important to encourage a multicultural and pluralistic society: multiculturalism is a part of sustainable communities. Any housing development initiatives should look at allocating spaces for places of worship as well as recreation.. 8 ‗Vakavanua settlements‘ are informal settlements acquired through customary arrangement with the land owners and there is no legal basis for ownership or lease. 107

4.1.6 Social Justice Social justice is a fundamental aspect of the common good. It broadly consists of two elements: justice and charity. The goal of social justice is to ensure equality of dignity, especially those who, through no fault of their own, are disadvantaged and destitute. It is also to ensure that everyone has the basic right to a dignified life, enjoys equality of citizenship, and that no one lacks the basic necessities of life. The 1997 Constitution provided the legal justification and framework for the enactment of the Social Justice Act 2001 and implementation of Affirmative Action Programmes in the areas of: (a) education and training; (b) land and housing; and (c) participation in commerce and in all levels and branches of service of the State. The social justice clauses under the 1997 Constitution will be retained under Fiji‘s new Constitution with further restrictions placed on when AAP can be utilized by future Governments that is consistent with the principle of equal opportunity before affirmative action and affirmative action only when there is a genuine need for it. Since the implementation of AAP under the Social Justice Act in 2001, Government has allocated almost $300 million for the various groups targeted in the 29 programmes. Each programme has specific goals and target beneficiaries, means of assistance, performance indicators and criteria for selecting members of the target group. The criteria for selection include race, gender, economic status, disability and physical location. Of these programmes, 17 benefit all communities, 10 benefit Fijians and Rotumans as a target group and 2 are specifically for Indians and minority communities. The broad issue for Fiji is the articulation of an acceptable legal, social and moral framework that is based on the pursuit of ―equal dignity‖ and which will guide the development and governance of Fiji in the future. Development Constraints and Challenges To be just in designing and implementing the Social Justice Act and the AAPs, it is important that reliable, highly accurate and updated information on poverty and disadvantaged communities is readily available. There is a need to design AAPs that are effective, transparent and meet the needs of the genuinely disadvantaged communities. To measure the successes or failures of the AAPs, indicators are needed for the four broad programme categories. Qualitative indicators would be much more helpful to gauge the progress achieved in these categories. It is difficult to conduct monitoring assessments if the specific indicators and objectives of the programmes are not tied to the broad categories under which each of them fall. Each programme has its own specific objectives and indicators for measuring its successes or failures, although most of them have no historical content to indicate where a certain programme started, its achievements so far, and suggestions for a review of the indicators. 108 There is a need for an improved financial monitoring and tracking system that would allow for proper accounting of funds and be subject to audit by the Office of the Auditor General. It is not clear from the 2002-03, 2004 and 2005 annual reports how the funds had been spent, who were the recipients, and whether or not the funds were utilized for the purposes for which they were disbursed. Without a good financial monitoring and tracking system, which should be an integral part of the overall monitoring structure, programme funds would be open to abuse and misappropriation.

4.1.7 Education and Training Elementary, Primary and Secondary Education Access to basic education is a right of all Fijians. Education, up till secondary level, is well established in Fiji with ownership and management of schools being in partnership between State and community. 98 percent of schools are managed by civil society and non-government organizations while government provides teachers and sets curriculum. The role of education in building unity has been comprehensively discussed in the Fiji Education Commission (FIEC) report of 2000. Some of the recommendations have been implementedin the education system and some incorporated in Fiji‘s National Curriculum Framework. Fiji is on target with MDG 2 ―to achieve universal primary education‖. Fiji has attained near universal primary education, but primary school enrolment and net enrolment rates have decreased since 2000. There is concern about the growing number of drop-outs from primary school. The percentage of pupils starting Class 1 who reach Class 5 has increased from 88% in 2002 and 93% in 2006. Class 5 survival ratios stood at 95.2%, indicating that more effort needs to be made to keep students at primary school. The 2004/2005 Employment and Unemployment Survey revealed that 90% of the persons aged 5 to 14 were attending school, with the proportion a slightly higher 92% for Indo- Fijians compared to 89% for Fijians. Some 10% of this age group were not attending school with 8% for the Indo-Fijians and 11% i-Taukei. The gap widened at higher educational level, where 31% i-Taukei, 24% of Indo-Fijians and 15% for Rotumans of the 15-19 age group were found to be not at school, however an average of some 73% were at school. Though some parents cannot afford school costs, particularly in rural areas, these dropouts are of concern given the need to maximize the education potential of the workforce. The large number of students dropping out early from school is a critical problem since it is one of the major contributing factors to the growing incidence of poverty. In turn, poverty impacts so adversely on the socio-economic development of this country. With limited skills and knowledge to improve their livelihoods, early school leavers make up a large number of the unemployed and subsequently they contribute disproportionately to the rising tide of crime and violence occurring in most urban centres. 109 There is a need to conduct community workshops on parental education to change the community‘s perceptions about education, improve parents‘ participation and support, reduce the ‗dropout‘ rate and improve students‘ academic achievements. The establishment of a collaborative model of education in villages and communities is an essential element of this initiative and make available community scholarship funds through better utilization of resources. Tertiary Education Under the Roadmap the government recognizes the critical importance of tertiary institutions for developing high-quality human resources, especially in an increasingly technology-driven world economy. The government also recognizes the challenges facing these institutions, challenges that include inadequate funding and facilities, curriculum that are inadequate to meet the challenges of nation building, inadequate and inappropriate staffing (especially among the lecturers). Development Constraints and Challenges Although the country has achieved near universal primary education, the dropout rate at primary level will continue to be an area of concern, particularly for Fijian students. A high dropout rate, as already stated is also apparent from Form 6 to Form 7. Many students face difficulty in affording education. Ethnic differences are still a concern in terms of examination performance. Indigenous Fijian students lag behind other ethnic groups in major external examinations. Similar gaps are also evident between rural and urban schools. Priority spending in education is a major factor that could contribute to the differential in performance. The 2002/03 HIES showed that Indo-Fijian families spent some 116% more on average per child than Fijian families. Access to secondary education is increasing with net enrolments standing at 71% in 2000. Enrolments have been higher for girls (74%). There is concern however, that secondary students have difficulty in getting jobs. The 2002/03 HIES showed that most of the unemployed population (77.2%) had secondary education. The education system will need to consolidate efforts to build and support social cohesion in schools. More emphasis has been placed on examinable subjects, sports and other extra-curricular activities. A deeper understanding and acceptance of cultures and inbuilt values is critical to having and practicing an internalized sense of national identity, therefore more support is required to strengthen and embed values teaching in all schools in Fiji

4.1.8 Health Health continues to be a growing and increasingly complex field of competing priorities from all perspectives - from the individuals to governments, businesses, health 110 professionals and the health services system. A healthy and productive population is a key for sustainable economic development. Despite consuming a major portion of governments budget (>3% of GDP and 9% of total budget), health care funding continues to be lower as compared to other countries in the region while Fiji‘s population tends to be increasing every year. Fiji‘s progress towards Millennium Development Goals (MDGs) such as reduction in child mortality, maternal mortality and HIV/AIDS, have not been achieving the impacts on the health of citizens which Government intends. Fiji‘s life expectancy for males and females is on a declining path (2007 population census). The performance against the three health MDGs is disappointing as compared to baseline data of 1990 and 2015 target. The current statistics show a slow progress in improving the infant and maternal mortality rates, immunization coverage and the prevalence of HIV/AIDS. The progress towards MDGs suggests that the substantial and increased input of resources by Government is not achieving the impacts on the health of citizens which Government intends. Increasing annual budget allocations in itself is healthy and positive but if it is still below a critical level of less than 5% of GDP (Fiji averages less than 3%), then may be it is not sufficient to adequately fund important interventions that would specifically address the MDG targets. In addition to the continuing incidence of communicable diseases, there is an increasing prevalence of Non Communicable Diseases (NCDs) such as diabetes and hypertension, due to lifestyle changes, poor diet, smoking, changing patterns of physical activity , continuing mulnutrition problems, particularly in school children and women. On disease conditions and status, NCD continues to be the major cause of morbidity and mortality. Controlling diabetes and cardiovascular disease remains a priority focus of the Ministry of Health (MOH). With the re-emergence of infectious diseases such as typhoid, which were thought to have been controlled, an extra burden will now be placed on the already incapacitated health system. This is termed the double burden of disease, where high rates of infectious disease and NCD co-exist. The ability of government to increase its health sector allocations is limited by slowed national economic growth, by a history of significant under-funding and by periodic austerity measures related to political events. To increase revenues from the population of service users would represent a policy change to public sector provision and could, if not done well, have significant population health status ramifications. The introduction of realistic user-charges could result in much of the population‘s inability to pay, a consequent reduced access to services and worsening health status indicators. The potential for the general population to pay health insurance premiums is similarly limited, although some employers provide health insurance schemes on a co-payment basis with their staff. Improving public provision of information on the performance of the health system (such as waiting times for elective surgery, drug stock-outs, and selected morbidity and mortality indicators) will enhance advocacy, accountability and decision making in the 111 health sector. This has been lacking in Fiji‘s health sector with resource allocation being based on conventional budgeting system. Currently, systems for collecting and publicly reporting such information are lacking. It is important to establish a means of data collection methods that allows timely reporting of service activity for use to provide information to source/fund national projects and to optimize individual patient care. Poor allocation of resources is now leading Fiji‘s health sector into a debilitated state with increasing cost pressure leading to long term sustainability of its financing system. There is a need to reallocate resources in response to areas with greatest burden to the economy and the only possible way is for the need to have evidence to support effective decision making. As such, the importance of National Health Accounts (NHAs) is increasingly becoming important in management of resources and review of health policies. Development Constraints and Challenges Development constraints and challenges include:  to improve efficiency and effectiveness of the use of resources in health service delivery;  to respond to the increasing numbers of HIV/AIDS and STI cases;  to reverse the deteriorating rates of child mortality, infant mortality and maternal mortality;  to reduce the incidence of Non-Communicable and life-style diseases;  the emigration of skilled health care professionals;  limited capacity for policy analysis and research;  improving physical and financial access to good-quality health services in depressed domestic and global economy;  the increasing demand and cost for health care;  the need to improve stewardship over policy formulation, health legislation, regulation, resource mobilization, coordination, monitoring, and evaluation;  the need to strengthen the national health system and improve its management;  the need to improve the availability and management of health resources (financial, human, infrastructure, and so forth);  reducing the disease burden attributable to priority diseases and health problems, including hiv/aids, and reproductive health–related illnesses;  increasing consumers‘ awareness of their health status and poor lifestyle; and  to foster effective collaboration and partnership with all health actors, NGOs and CSOs.

4.1.9 Gender Equality and Women in Development The target for MDG 3 is to eliminate gender disparity in primary and secondary education preferably by 2005 and to all levels of education no later by 2015. School enrolment data published annually by the Ministry of Education and enrolment data provided by tertiary education institutes provide figures for the ratio of girls to boys. In 112 Fiji, the sex ratio for primary in 2007 (0.92) is closely balanced and the enrolment figures reflect the overall population ratio (0.96) released by FIBOS in the 2007 Census. At secondary and tertiary education the ratio of girls to boys has reversed; 1.06 and 1.08 respectively. The gaps between girls and boys begin to widen with girls outnumbering boys as education level increases. These differences in ratio do not continue in the employment world. Women‘s composition in the labour force has dropped from 40% in the 1996 Census to 31% in the 2004/05 EUS. Although women are 31% of those the FIBOS describes as ―economically active‖, 54% of all working females are unpaid household workers. The 2004/05 EUS revealed that the number of females who were self employed increased from 13% in 1996 to 25% in 2005. Governments over the years have failed to commit to creating an enabling environment, to enable women to participate fully in the socio- economic development of the country. Table 4.1: Comparison of men and women employed in the Economy Activity Female Male All % Female % of Fem % of Male A Wages 39263 106835 146098 27 18 47 B Salary 18303 30581 48884 37 8 13 C Employer 617 2647 3263 19 0 1 D Self Employed 23105 68713 91818 25 10 30 E Family Worker 19486 18470 37957 51 9 8 F Community Worker 1730 505 2235 77 1 0 G Household Worker 120855 1642 122497 99 54 1 Gender Neutral 223359 229393 452752 49 100 100 Economically Active Females are a half (49%) of all the ―workers‖ in society but under-represented in the workforce (table 4.1). Except for the lowly paid Family and Community Workers, females in income-earning categories are now all much lower than that for Males: Wage Earners (18% v 47%), Salary Earners (8% v 13%) and Self-Employed (10% v 30%). However, looking at females by age group 53% between 20 to 29 years of age are Salary Earners and 29% are Wage Earners (much better than the older groups). They have moved out of Self-Employed and Family Workers (table 4.2). However, there is a need to focus attention for participation of women in older age groups Table 4.2: Females as Percentage of Age Group Activity 20-29 30-39 40-54 Over54 % Female A Wages 29 27 27 19 27 B Salary 53 36 26 36 37 C Employer 55 16 22 10 19 D Self Employed 17 24 29 27 25 E Family Worker 39 69 73 43 51 F Community Worker 91 76 84 66 77 All 32 31 32 30 31 113 Wages and Salary 34 30 27 24 30 Although recent indicators show little difference in the educational levels and achievements of men and women, and despite Government's commitments to gender equality, occupational discrimination and gender segregation are strong and persistent. As compared to 1982 Economically Active Females increased by 55% between 1982 (20%) and 2004 (31%), compared to 35% increase for Males, although this proportion is still considered low. While the number of households increased by more than a third, total number doing full-time household work and female household workers declined by 5%. There is a little change in males becoming household workers. Females should be encouraged to become part of the ―Economically Active‖ persons in Fiji, moving out of full-time household work into income earning work for the household. Studies from the 2004/05 EUS indicate that female representation in senior management and professional occupations has increased. For instance, female technicians and associate professionals increased from 28% in 1996 to 33% in 2005. However, few women own businesses, because the inheritance laws practised by both major ethnic groups in Fiji usually exclude women from inheriting land or other fixed assets. Women predominate among workers in the shrinking manufacturing sector. Labour costs in Fiji are interestingly competitive, but imported raw materials added to the cost of production, makes the country's products less competitive without subsidies or special terms for market entry. Women process workers cannot sustain their livelihood with low wages. Women's higher risk of poverty and destitution is associated with labor force discrimination, increasing divorce and separation rates and problems in collecting maintenance payments from a departed spouse. Women constitute the majority of beneficiaries under the Social Welfare Department's Family Assistance Scheme. Female unemployment increased slightly from 7.8% in 1996 to 8.7% in 2005, perhaps as a result of loss of jobs in the garment and other industries. Economically Active Females work some 14 hours more per week, or 31% more on average than Economically Active Males in all categories. This is a gender gap that must be addressed if females are to have the opportunity to develop themselves professionally, and enjoy leisure as men do. This requires Men- all categories- to do their fair share of household work. These facts indicate the need for effective social safety nets for the unemployed particularly, training and investment to promote alternative livelihoods for women displaced from the manufacturing sector. New models are necessary to provide women with micro finance for self employment. 114 In accordance with MDG 5 for improved maternal health it is important that Government reviews its efforts to promote rural family programme. The fertility rate of 4:4 among rural Fijian women suggests the need for renewed efforts. In 2004 for the first time, more women among new cases were confirmed HIV positive than men. Experts consider that Fiji may be moving towards an AIDS epidemic. A strong emphasis on gender issues is needed to reduce HIV transmission, in keeping with MDG 6. Development Constraints and Challenges Development constraints and challenges include:  implementation and monitoring of sectoral programmes, government policies and administrative practices and procedures have incorporated gender perspectives;  implementation and monitoring of the EEO policy in all workplaces, presence of occupational discrimination and gender segregation in labor markets;  monitoring the compliance of laws and administrative practices and procedures to CEDAW Articles;  maintaining effective social safety nets for the employed in particular training and investment to promote alternative livelihoods for women displaced from the manufacturing sector;  promoting rural women's advancement in economic activities without destroying sustainability of women's fisheries and, therefore, household food security;  continuing social impact analysis of trade agreements on impact on women's health of imported, low quality foods;  increasing incidence of domestic violence;  decreasing fertility of women especially rural Fijian women;  spreading of HIV/AIDS as an epidemic; and  collection and analysis of gender-sensitive data.

4.1.10 Children and Youth Fiji‘s future prosperity depends on nurturing and developing children who are well prepared to take their place in tomorrow‘s society. The Plan‘s strategy, therefore, seeks to implement basic education requirements to increase school enrolment and provide better schools and better-trained teachers. However, there are many factors, apart from education, that affect the development of a child and include issues such as unemployment, financial constraints, family problems, teenage pregnancy and sexual and reproductive health, child labour and prostitution. Programmes to support children and youth directly support the Strategic Priorities of implementing affirmative action, reducing crime and alleviating poverty. In the long term, the development of children and youths as good citizens for Fiji‘s future is the cornerstone of national development and supports all the priorities. 115 Joblessness has resulted in the rising incidence of social ills amongst young people. Policies will target youth empowerment and development in order to reverse the negative consequences associated with the past pattern of development. There has been some improvements in the management of child abuse, but there is still urgent need for legal reform to impose severer penalties on offenders, to make the collection of evidence easier, offer additional protection to the survivor of abuse through the legislative process, provide specialized counseling services to children and their families, and to organize community awareness programmes to help change attitudes and stigma associated with child abuse. The Ministry of Social Welfare, Women & Poverty Alleviation has developed, along with six other ministries/departments the Resources and Results-based Framework (RRF) 2008-2012 which has identified three major outcomes in child protection. Out of the RRF, the Fiji 2009 Annual Work Plan (AWP) for Child Protection based on the 2008 AWP was signed by the National Coordinating Committee on Children (NCCC) in April 2009. The 2009 AWP outlines activities that will be undertaken by the Government of Fiji, with support from UNICEF, in progressing towards the achievements of the expected outputs/outcomes (results) as stated in the Resource and Results-based Framework (RRF). The NCCC was established following Fiji‘s ratification of the United Nations Convention of the Rights of the Child (CRC) in August 1993. The NCCC , a Cabinet sub- Committee has members which includes the Permanent Secretaries for: Ministry of Social Welfare, Women & Poverty Alleviation; Ministry of Justice, Electoral Reform & Anti Corruption; Ministry for Education, National Heritage, Culture & Arts, Youth & Sports; Ministry of Indigenous Affairs; Ministry for Defense, National Security, Disaster Management & Immigration; and Ministry for Provincial Development & Multi Ethnic Affairs, and NGOs that provide services that target children.. The National Youth Service Scheme (NYSS) was implemented in 2008 with a budget allocation of $1 million. The NYSS targets clients of around 2000 individuals per annum and in 2008, a total of 5955 clients were registered, an indication of the high demand for youth employment opportunities. A total of 563 employments were created from 120 employer‘s nation wide as work attachment, volunteers and full time paid employees. For 2009, a total of 1000 clients have been enrolled. Development Constraints and Challenges Development constraints and challenges include:  discrimination of children with disabilities;  insufficient funding for all the implementing agencies and development projects;  coordination of implementation of programmes across sectors;  achieving the identified outputs of the Annual Work Programme for Child Protection; 116  establishing a monitoring and evaluation process of the Resource and Results- based Framework to progressively examine the status of Children‘s Welfare; and  prioritizing legislative review and reform for the care and protection of children.

4.1.11 Sports Development Sport contributes to the overall development of a country and it is a worthwhile investment strategy in improving the socio-economic benefit to any nation. It promotes nation building and community development by bonding people to work together. It moulds better citizens through the inculcation of values such as tolerance, goodwill, understanding, teamwork and promotes active and healthy lifestyles. A nation‘s investments in sports will give rise to benefits in:  promotion of national identity and national pride;  community development and integration;  crime prevention;  good health and healthy lifestyles;  higher domestic productivity and greater national productivity;  higher education; and  economic benefits. Sport, therefore, plays a very powerful role in our society and individual lives. As such, it is important that the people of Fiji, supported by Government, strive to identify and develop strategies and policies which will encourage and sustain for its long term growth. Sports can create viable employment opportunities and generate internal revenue through many aspects of the sports industry if it is systematically allowed to develop properly. It provides attractive platforms to major local and international companies to sponsor their products and services. Incentives need to be provided to the private sector to encourage them to sponsor sporting organisations‘ programmes and activities. Advertising, radio and television rights, product endorsements and promotions, sports tourism and remittances are some areas that can be the initial targets of sports development before progressing into clothing, footwear and other accessories manufacturing. Very few sports in Fiji have achieved such progress in past few years while the majority of them are actually struggling to survive and progress. The only major setback for most of the 40 sports organizations is the lack of financial resources that they need to facilitate their development programmes. Most sports need Development Officers to administer the sports and initiate development programmes as these are still been looked after by volunteers who have fulltime work and only attend to their sports tasks in their spare time. Getting the sporting organizations to be operating professionally and effectively will boost their chances of securing sponsorships which should enable them to move into the next level of development. There is also the need to put in place proper talent identification networks at the grass root levels for all sports and a well structured institution to nurture and systematically develop the athletes/players to reach maximum potentials. 117 The current development programmes looked after by the Government through the Department of Youth and Sports are:  disbursement of four sports grants to National Sports Organisations;  disbursement of special funding for regional and international competitions;  rural sports field development;  sports outreach programme; and  basic sports gear assistance programme. Development Constraints and Challenges Some constraints that hinder the development of sports are:  lack of standard sports grounds and other basic facilities in rural areas;  low sports funding and the need to entice more business sponsorships for sports;  involvement of volunteers in sports administrations and the need to have paid development officers;  establishment of a high level sports institution to further develop new talents systematically;  development of international standard sports grounds to accommodate international competitions like Super 14 Rugby or FIFA soccer matches;  proper structured sports syllables in tertiary institutions to include sports specific subjects like sports marketing, sports administration, sports management, sports psychology, sports science, sports medicine, etc; and  the need for a sports regulatory body to regulate and control all matters relating to sports.

4.1.12 Environmental Sustainability ―Ensuring environmental sustainability‖ is the seventh MDG, which provides a framework for integrating the principles of Sustainable Development into national policies, with the focus on ensuring availability of safe drinking water, improving sanitation, and reducing other social ills such as poverty and unemployment. The Environmental Management Act (EMA) 2005 provides the legislative framework for the sustainable development of land and water resource management. However, there have been a number of constraints in implementing the EMA such as inadequate resourcing of the Department of Environment, outdated subsequent legislations and regulations, the absence of accredited laboratories, and poor coordination among agencies. Achieving sustainable development, while overcoming environmental challenges such as deforestation, land degradation, logging of watersheds, over-exploitation of terrestrial and aquatic biological resources, improper waste management and pollution control, impact 118 of climate change, and the attitude of people in terms of the unsustainable use of their resources, is a central challenge of this plan. The improper disposal and treatment of solid waste is one of the gravest environmental problems faced in Fiji. The problem is most acute in fast growing urban centres and other highly populated areas and is beginning to be a major concern for the tourism industry. This concern led to the organization of annual Clean Up Fiji Campaigns, which has run for 13years and is well supported by the business community. The generation of waste for disposal has been steadily increasing and is likely to continue to increase with the growth of urban centers and an increasing middle class population which is driving the rise in demand for imported goods. The composition of waste has also changed and now non-biodegradables account for a greater proportion of waste. Waste on land are catered for by rubbish dumps, with the first landfill established in Naboro in 2003/2004 to cater for waste from Navua, Lami and the greater Suva areas. The Naboro Landfill was designed to offer 40-50years of clean, safe and sanitary waste disposal and all waste coming into this site was to be assessed for its suitability for disposal, and special treatment administered to it wherever necessary. The operation of the facility was also designed to allow for revenue generation to assist in the running of the landfill. Approximately 60,000 tons of waste is dumped at the landfill annually. Implementation of the National Solid Waste Management Strategy 2008– 2010, launched in June 2008, needs to be prioritized. A key component of the Strategy is a public awareness campaign and creating partnerships amongst all stakeholders including municipal councils, the business sector and the community at large. Fiji‘s economy and its people, like other small island states, are also susceptible to the impacts of climate change. Since ratifying the UN Framework Convention on Climate Change (UNFCCC), policies adopted by Government in successive Development Plans have recognized the critical importance of managing the environment and natural resources, to ensure social and economic prosperity in the present and for the future. The implementation of these policies, however, has not been adequately supported with the required budget. As a developing nation with scarce resources and competing priorities and obligations, the Government has preferred to rely predominantly on foreign aid and assistance to finance ‗environment‘ projects. Climate change is beginning to have substantial and widespread impacts on Fiji, affecting sectors as varied as health, coastal infrastructure, water resources, agriculture, forestry and fisheries. As a predominantly agricultural based economy, the impact is being felt more by the rural populace who depend on the agriculture sector for their livelihood. The increasing incidence and intensity of droughts, cyclones and flooding is taking its toll on the economy and the lives of ordinary citizens. The sea-level rise is leading to coastal erosion. With the majority of villages and settlements in Viti Levu located along the coast, there is a noticeable infiltration of the sea into the village compound during high tide. The increase in the frequency and 119 intensity of tropical cyclones over the past decade is fueling coastal inundation and erosion. Intensive urban development along the coast, as well as deforestation of catchments has also contributed to exposing large coastal areas to flooding and erosion. Continuous coastal erosion is also taking its toll on inshore fisheries on which the villages rely for food. The drop in the size of the catch is attributed to the build up in sedimentation. Coastal populations and their assets are exposed to higher vulnerability to extreme events such as storm surges, tsunamis, and high tides. The erosion of coastal areas is also now slowly leading to the movement of villages away from low lying areas. The most recent flooding occurred in late December 2008 and early January 2009. Experts conceded that these floods were the worst in Fiji‘s recorded history with 11 lives lost, and a conservative estimate of F$76million9 worth of damages to public assets and agriculture. Damage to crops and loss of livestock from the recent flooding in late December 2008/early January 2009 was estimated at F$40million. Around half of these losses are attributed to the sugar industry, the backbone of the agriculture sector and the economy. The aftermath of floods increases the risks of exposure to water borne diseases, leptospirosis, and contamination of water sources. The floods directly affected about 150,000 people, almost a fifth of Fiji‘s population. While tropical cyclones are expected at this period, what has been noted is the increasing intensity of these natural hazards, particularly over the past decade. To manage the impacts on the community, more concerted effort is being put into improving land use practices through a National Rural Land Use Policy, improving management of watersheds, and mainstreaming the CHARM10 concept into development planning. A critical tool in the fight against Climate Change is the Kyoto Protocol. The Kyoto Protocol is an international agreement linked to the UNFCCC. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European Community for reducing greenhouse gas emissions. These amounts to an average of 5% against 1990 levels over the five-year period 2008-2012. The major distinction between the Protocol and the UNFCCC is that while the Convention encouraged industrialized countries to stabilize GHG emissions, the Protocol commits them to do so. One of the 3 mechanisms open to industrialized countries to meet their commitments under the Protocol is called Clean Development Mechanism (CDM). The CDM, defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission- limitation commitment under the Kyoto Protocol to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. 9 Losses to private businesses and emergency relief and ration costs are not included in the $76m. 10 Comprehensive Hazard And Risk Management 120 A CDM project activity might involve, for example, a rural electrification project using solar panels or the installation of more energy-efficient boilers. The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction or limitation targets. Fiji has so far registered two CDM projects through the FEA – the Wainikasou and Vaturu Hydropower Plants. More technical work is required to identify other opportunities, particularly in the area of renewable energy. Development Constraints and Challenges Development constraints and challenges include:  adequate resourcing of Department of Environment to carry out mandated functions under the EMA;  lack of capacity among Government agencies to enforce relevant legislations such as the Land Conservation and Improvement Act, National Code of Logging Practice, etc;  addressing ‗environment‘ issues along sectoral lines is difficult and conflicts sometimes arise as ministries get protective when they perceive other agencies encroaching on areas they consider their sole jurisdiction;  lack of coordination between agencies and the current situation where the Department of Environment is reliant on other agencies to implement mitigation and adaptation measures. The Department can provide advice on mitigation and adaptation measures but has no authority to dictate what is to be implemented;  lack of capacity within Government (including the Department of Environment) to fully appreciate the fundamental issues of climate change and their widespread impacts across the whole economy;  lack of capacity also constrains the ability of Government to draw out relevant statistics and data to fully understand the evolution of Fiji‘s climate and biodiversity. This lack of capacity translates into a lack of confidence by Government to commit resources for such research work given the uncertainty on the applicability and usage of the research data and outcome. Hence, the reliance on foreign aid to fund such projects;  lack of information, education and awareness on impacts of climate change in rural and outer islands – for instance the ordinary villager is not aware that changes affecting his everyday living (such as fishing, tending his crops etc) are a result of the impact of activities of industrialized countries on the global climate; and  poor and sluggish economic performance over the past decade, coupled with political turmoil and uncertainty means a lot more emphasis is placed on economic recovery and very little attention is paid to environmental concerns.

4.1.13 Culture and Heritage Fiji is a multi-racial, multi-cultural country with a multiplicity of languages, religions and ways of living and the recognition and acceptance of these cultures create harmony and unity amongst all races. Culture refers to the diverse manifestation of human intellectual 121 and artistic creativity that is both culture and heritage and is the living form of cultural expression. Integral to the development of the nation is the conservation, development and promotion of the indigenous identity. There has been growing concern from Government regarding cultural revitalization. This is reflected through continued government support towards cultural heritage activities such as heritage site management, artistic promotion activities, developing creative industries, preservation and protection of artifacts and archaeological documentation, safeguarding and promotion of language. Historic conservation and cultural activities maintain the distinct character of communities. Cultural and natural heritage sites and traditional arts should be conserved and protected. Tourism, as the fastest growing industry in the world, relies to a large extent on cultural heritage for its sustainability. Due emphasis should be placed towards the listing of Fiji‘s cultural and natural heritage sites in the world heritage listing and the establishment of proper heritage management system and the necessary infrastructure to ensure benefits flow to the local economy and the sustainability of tourism based activities. Culture has the potential to address the problems of unemployment, poverty and crime, faced by our youth today. The challenge is to develop and engage in both formal education curricula and non-formal activities for young people to provide a catalyst and an opportunity for this in instilling a sense of values and cultural identity. The association between gender, culture and environment needs consideration. The challenge is to develop an agenda that recognizes women as significant actors in development and as bearers and signifiers of their living cultural heritage who conserve and manage the biological diversity of the landscape. Development Constraints and Challenges Development constraints and challenges include:  strengthened partnership with resource owners;  financial support; and HRD support for the sector; and  unsustainable tourism, mining, and forestry developments.

4.1.14 Disaster Risk Reduction and Disaster Management Fiji is located in one of the most vulnerable and highly at risk location to disasters in the world. About one or two cyclones hits the country every year and floods and flash floods because of climate change has become a common occurrence. Over the last decade, damage caused by tropical cyclones alone has been estimated at more than $500 million and more than 100 lives have been lost. Tropical Cyclone Ami, which struck the Northern and Eastern Divisions in 2003, caused social and economic losses of more than $100 million, whilst the floods in April 2004 caused damages estimated at more than $30 million. A risk management approach underpins Government efforts in disaster risk reduction, with a strong emphasis on greater community resilience and self-reliance. The integration 122 of risk management into the development planning decision-making and budgetary processes using the Comprehensive Hazard and Risk Management (CHARM) approach will make a significant contribution towards disaster and risk reduction. Essentially this will place strong emphasis in the analysis and evaluation of hazards, vulnerabilities and elements at risk and ensuring that adequate measures are taken to lessen the risks and the vulnerabilities in all these development processes. However, the heavy dependence on Government handouts after recent disasters, coupled with high rehabilitation costs, has disrupted planned capital expenditure programmes. To address this problem, Government established a National Disaster Relief and Rehabilitation Fund, with a $2.6 million budget in 2004. The 2007 revised budget increased this provision to $8 million. A National Disaster Committee was established in the Prime Minister‘s Office, to oversee the new National Disaster Relief and Rehabilitation Fund and to assist the NDMO to deal with disasters. The reviews of the Natural Disaster Management Act 1998 and the 1995 National Disaster Management Plan have been completed and the recommended changes are in draft awaiting the Attorney General Office‘s sanction and Cabinet approval. The principal recommendations are to include human caused hazards including technological hazards in the Act and Plan and to institute qualitative improvements in legislation, regulations, organization, operating procedures, training and readiness. The reviews stressed that an effective crisis and emergency management system under national leadership is essential. The system would adequately facilitate all aspects of Disaster Management which has both Disaster Risk Reduction and Disaster Management. The focus on community capacity building is promoting self reliance, reducing dependency and to achieving community resilience and sustainable development. Work has commenced on the development of a National Action Plan to adopt the Regional Framework. Partnership with SOPAC under EU funding resulted in the development of the Navua Flood Early Warning System which has been operational since October 2007. Similar work is scheduled for Nadi and Ba rivers under French funding and the upgrading of the Rewa river system. An additional 9 HF Radios were purchased through AusAID funding and were installed between 2007 and early 2008. The radios would enhance communication and operational capacity of Emergency Operational Centres and management of overall disaster management operations. Development Constraints and Challenges There is a need to fast track development of Response Plans and Early Warning Systems for floods, earthquakes and tsunamis, at all levels in order to provide the people with reasonable safety measures to be able to deal with these events confidently and to facilitate a more responsive and timely Government intervention. The development of an all hazard, integrated, people focused early warning system. 123 Mainstreaming disaster risk reduction into other sectoral development plans, policies and programmes is crucial for sustainable development and community resilience. The Fiji Red Cross works closely with the divisional commissioners and provincial administrators/district officers and provides invaluable support during emergency relief operations. There is a need to continue to strengthen relationships with Disaster Management partners, including the Red Cross, civil society, as well as the FRANZ group, the EU, ADB, World Bank, UNDP, NZAID, AusAID and SOPAC. We need to actively engage the community in all aspects of disaster risk management.

4.1.15 Rural and Outer Island Development The rural areas of Viti Levu, and outer islands, including Vanua Levu, have remained relatively undeveloped with poor livelihood opportunities due to isolation and lack of access to services and markets. Their relative isolation excludes them from the mainstream of Fiji‘s economic and social development, resulting in large movements of people, especially those entering the economically active years, seeking opportunities in urban areas. The proportion of the population living in rural areas has been decreasing from 62% in 1986, to 53% in 1996, to 49%, according to the 2007 Census Report. Urban development measures are necessary to relieve the problems created by the mass relocation of people to the urban centers such as squatter settlements, but the underlying problem is the uneven distribution of opportunities between the rural and urban areas. This requires a holistic approach through the provision of basic infrastructure, improve mobility and market access through regular and reliable shipping services, and complementary livelihood activities. Government infrastructure spending on the transport sector has traditionally been focused on land transport, with only about 1.4% spent annually on sea and shipping related activities. Expenditure on shipping is limited to maintenance with most of this small budget shared between Suva, Lautoka, Savusavu and Levuka – the international ports of entry – rather than to develop inter-island shipping. The outer islands do not have substantial markets on their own, the main market for most products being Suva or Viti Levu. However the only means to access this market is by sea, leading to un-satisfied demands and needs for better shipping services and maritime infrastructure. A review of the Shipping Franchise Scheme is planned with Government keen to improve services to the outer islands, in particular, finding a workable solution to service ‗uneconomical‘ routes. Massive infrastructure work is planned for Vanua Levu, such as the upgrading of Savusavu port and upgrading of major connecting highways. To complement these commitments, Government has declared Vanua Levu, Rotuma, Kadavu, Taveuni, Lomaiviti, Kioa, Rabi and Lau as tax free regions effective from 1st January 2009. The incentives for companies that set up in these regions have been offered to encourage 124 investment, support development, create employment and improve livelihood opportunities in the Northern Division and Maritime areas. With the aim of improving the delivery of services to rural areas, a new streamlined divisional development structure, involving the establishment of Divisional Development Boards (DDB), will also being put in place. The new structure should enable better coordination of Government‘s development programmes and improve implementation of projects in the various divisions. The DDBs will be at the forefront of revitalizing economic activity in the rural and outer islands and facilitate the coordination of development efforts of Government at the divisional level. The livelihood activities currently funded by Government through the annual budget, such as the Northern Division Programme (NDP), would reap greater rewards through such a holistic approach. Since its launch in November 2007 to the end of 2008, the NDP project office received a total of 1322 applications, valued at over $5.1million. At the end of 2008, 996 applications had been processed with the remaining 326 being processed in the first quarter of 2009. From the 996 applications processed, 916 have been assessed and approved for grants to the value of $2.34million. However, only 361 (or 39.4%) received funding in 2008 valued at $1.08million. The majority of these recipients, 226 (or 63%), sought counterpart funding (or debt equity) from FDB, 51 (or 14%) from Micro Finance Co-op Labasa, 35 (or 10%) from Micro Finance Labasa, 15 (or 4%) from Commercial Banks, and 34 (or 9%) from Sugar Cane Growers Fund. These other lenders disbursed approximately $1.125million. In 2008 the majority of these projects (82%) were classified as micro projects, with annual turnover less that $30,000. Agriculture projects, particularly dalo and yaqona farming, were the main recipients of the equity grants. Other projects include the purchase of bullocks (working animals) for cane farmers, outboard engines and fiberglass boats for fishermen, and breeding animals for livestock farmers (piggery, poultry, goats, beef). Development Constraints and Challenges The major development challenges for rural development are:  lack of basic infrastructure such as roads, ports and jetties, access to electricity and telecommunication, reliable water supply;  lack of mobility and access to markets due to irregular shipping services;  lack of coordination of development initiatives of Government and donors;  lack of participation of community in identifying and prioritizing development needs; and  reduction in the economically active population present in rural areas and outer islands. 125

4.2 Policy Objectives, Strategies and Key Performance Indicators

4.2.1 Building National Identity and Social Cohesion Goal: A peaceful, non-racial, inclusive and united society Policy Objectives Strategies Key Performance Indicators A common National  A new Constitution with  Adoption of a common name Fijian Identity for all Fiji citizens Fiji as the name of the by 2014. nation  Public awareness and consultations to promote national identity.  National anthem and flag  National anthem and flag raising raising ceremony to be ceremony on a weekly basis in observed in schools and schools by 2009 important national/state functions. Communities to live  Fiji Day celebrations to  Fiji Day celebrations annually. together to promote social promote national cohesion and unity identity/unity.  CHRTJ established by 2010.  Establish a Commission of Healing and Reconciliation, Truth  Anti-Discrimination Act by 2013. and Justice (CHRTJ)  Racial and inappropriate  Encourage mixed categorization records removed from schools. government records by 2010.  Promulgate an Anti- Discrimination Act.  Eliminate racial and inappropriate categorization and profiling in government records and registers. Strengthen the role of  Include the teaching of  Two vernacular languages taught by education, religion, culture the two main vernacular 2013. and sports in promoting languages in education national unity curriculum  Multi-cultural education in Fiji  Encourage and promote National Curriculum Framework. religious freedom and understanding in schools and society 126  Equipping the media, and sports organizations to promote national identity/unity  Education curriculum to include moral, values education, multi-culture, and comparative religious studies

4.2.2 Poverty Alleviation Goal: Poverty reduced to a negligible level Policy Objectives Strategies Key Performance Indicators All categories of  Reach consensus on the definition of  Proportion of population the poor are able to the poor and their needs and ensure below the HIES defined meet their basic the compilation and timely analysis basic needs poverty line needs. of statistics on poverty, including reduced from 35% to less HIES and to be conducted on a five- than 15% by 2020 yearly basis.  Poverty gap ratio reduced  Focused surveys and research should from $2,600 to $2,000 be conducted at micro level (MDG) (households) to show the impact on  Percentage share of the poor of any structural consumption held by poorest adjustments, so that remedial actions 20% increased from 7% to can be identified and implemented. 10% (MDG).  Review and develop poverty targeted  Not less than 1,500 policies and implement appropriate recipients of family programmes in housing, national assistance graduate from insurance and social security and assistance programmes National Integrated Poverty through income generating Eradication Framework. projects.  Empower communities through  A phased implementation of liberation education programmes for a national minimum wage self-sufficiency, self-reliance and self rate from 2009 -2011 with esteem. full implementation in 2012.  Introduce a national minimum wage  Reduction in number of and at the same time enhance elderly in State care from 98 national productivity. to 60.  Establish community mechanisms for  Number of projects feedback on public services. supporting young people  Disseminate information to the increased from 180 – 250 nation about anti-poverty annually 127 Goal: Poverty reduced to a negligible level Policy Objectives Strategies Key Performance Indicators programmes.  Increase the number of  Formalize and strengthen people in paid employment Government and civil society from close to 0.3 million by partnership in alleviating poverty, 3% per year or the rate of including traditional support GDP growth, whichever the mechanisms for the disadvantaged highest. and support to the elderly through  Increase immunization CSO. coverage to 100 percent by  Enable policies, strategies and 2010. programmes for people living with  Increase the percentage of disabilities through partnerships with the population with access Government and civil society. to safe drinking water to at  Strengthen government‘s pro poor least 75 percent by 2011. legislation, policies and programmes  Access to education for all to target citizens through children by 2011 municipalities, provincial councils,  Establish partnership and advisory councils in both rural agreement with NGOs and and urban areas. CSOs by 2010  Establish financial inclusion programmes for the poor  Strengthen institutions and programmes that support children of the poorest of the poor  Ensure affirmative action programmes are needs-based and to align them to a shared social justice preamble.

4.2.3 Housing and Urban Development Goal: Access to adequate, quality and affordable accommodation for all citizens Policy Objectives Strategies Key Performance Indicators To facilitate for  Facilitate the strengthening of  Approximately 100 accessible, decent the social housing programmes families/annum to benefit from and affordable of various implementing the current social housing housing for all agencies eg Rotahomes and programmes of various citizens with a Habitat for Humanity. stakeholders from 2010 particular focus on  Assist Government‘s onwards. low income groups implementing agencies i.e. PRB,  Production of approximately and the poor. HART and HA towards the 500-750 land lots or housing effective execution of their units /annum from 2010 social obligations and onwards for middle to low 128 Goal: Access to adequate, quality and affordable accommodation for all citizens Policy Objectives Strategies Key Performance Indicators responsibilities. income earners.  Facilitate for accessible and  Minimum of 500 full affordable mortgage financing completed services and for both rural and urban surveyed lots to facilitate communities. mortagaged financing.  Completion of the Ministry‘s  Undertake a minimum of 3 Squatter Settlement Upgrading upgrading projects and at least and Resettlement Programme one fully completed project per towards the regularization of annum. existing squatter settlements and  At least 3 percent of rental resettlement where necessary. tenants rental accommodation  Facilitate the graduation of to graduate to home ownership clients from transitional housing annum. eg rental accommodation  Encourage and undertake at towards home ownership. least 3 projects under PPP per  Strengthen and facilitate a more annum. consultative approach and  Improve urban planning and relationship with existing management through the stakeholders for increased implementation of the public, private and community identified urban land market, partnerships in the delivery of urban housing policies and low cost housing. urban infrastructure  Implementation of Urban Policy development policies and the 7 Action Plan (UPAP) and Urban identifies cross cutting issues Growth Management Plan of the UPAP. An efficient, effective (UGMP).  Implementation of Institutional and sustainable urban  Responsive institutional and Regulatory frameworks of sector. regulatory and policy UPAP and revised legal frameworks for management of framework in place to improve urban development. the performance of munipals  Legislative reviews and councils, Department of Town preparation and enforcement of & Country Planning and line relevant regulations Ministry to facilitate urban  Expanded capacity of local and development and to enhance central government in meeting economic, social and mandates and stakeholder needs. environmental activities.  Local authority accounts on  Capacity building measures accruals basis and in line with UPAP implemented for Fiji accounting standards. effective and efficient  Implementation of Public Private delievery of service and Partnership policy at local development approval government level.  Effective, efficient and transparent financial system for local government 129 Goal: Access to adequate, quality and affordable accommodation for all citizens Policy Objectives Strategies Key Performance Indicators performance.  Establish Urban Governance Index by 2009 and monitor improved local government performance thereafter.  Facititate for local and government statutory organizations to assume responsibility for providing low-cost housing.

4.2.4 Social Justice Goal: Equal opportunities for all Policy Strategies Key Performance Indicators Objectives All ethnic  Improve education and training for  Pass rates in FSLC improved groups enjoy an all ethnic groups and build capacity from 68% to 80% and in FSFE improved for all leaders. from 77% to 85% by 2012. quality of life  Mid-term review to improve the  Recovery in student loan and standard of effectiveness of the Social Justice and scheme increased from 1.5% to living. Affirmative Action programme. 50%.  Harmonization of existing  A draft social justice preamble legislations, including the Finance statement for a revised Act by Act, with the Social Justice Act. 2010 People with  Improve the provision of and policies  Enrolment in regular and disabilities for education and vocational training special schools increased from enjoy greater services which meet the needs of 1,068 in 2004 to 2,000 in 2011. access to an people with disabilities.  Trained special education inclusive,  Implement the National 5 Year Plan teachers with diploma barrier free and of Action on Disabilities. increased from 9 to 20 by rights based  Provision of incentives to employers 2011. society. to employ people with disabilities.  Increased number of persons  A policy for persons with disabilities with disabilities in paid developed and implemented, employment from 50 to 100. including regulations to require  National disability census and appropriate access to all public report to be completed by buildings and places. 2010.  Enabling policies, strategies and Empowerment programmes for people living with and disabilities through partnerships with development of Government and civil society. 130 Goal: Equal opportunities for all Policy Strategies Key Performance Indicators Objectives Vulnerable  Inclusive education services and Groups programmes for all special needs children in schools, homes, communities and hospitals.  More people with disabilities are able to access decent work.  Promoting the rights of women and children with disabilities.  Strengthen social security programmes for people with disabilities.

4.2.5 Education and Training Goal: Educating the nation for peace and prosperity Policy Objectives Strategies Key Performance Indicators Making Fiji a  Establish a modular  Net enrolment rate for secondary Knowledge- based system of education schools rise from 79% to 90% by society  Abolishment of 2012 external examinations  Progression rate in secondary  Establish a coherent schools increase from 67% to 80% national tertiary of the cohort in class 1 by 2012. education system  FILNA implemented in all primary  Curriculum framework schools by 2010 developed to enhance  Proportion of students who complete spiritual, intellectual, 6 years of education increase from social and physical 76% to 95% by 2012 development and  Proportion of pupils who start class strengthen instruction 1 who reach class 5 to be not less in Fijian and Hindi as than 95% (MDG) well as English.  All schools to emphasise study of  Improvement in the various languages by 2012 numbers and quality of  Disparities in the FSLC pass rate are competent and at least reduced from 24% to 15% motivated teachers and between rural and urban students reduction of the pupil: and from 2% to 1% between male teacher ratios. and female students by 2012  Increased use of  Disparities in the FSFE pass rate are standards improvement at least reduced from 24% to 15% measurement in between rural and urban students schools. and 2% to 1% between male and 131 Goal: Educating the nation for peace and prosperity Policy Objectives Strategies Key Performance Indicators  Enhanced rural female students by 2012 education programme  Proportion of students successfully by establishing completing TVET courses not less appropriate than 90% to meet current and future infrastructure, building demand standards, review of  All schools to hold a flag ceremony school performance and at least once a week piloting distance  Differential Resourcing Policy on education programme. grants and staff distribution  Strengthened implemented by 2009 partnership between  Preschool enrolment in rural schools government, increases by 10% each year from communities, donors, 16% in 2006 municipal councils,  Compulsory teaching and learning school management of Fijian language and culture in all committees, developers schools by 2012 and parents.  All school names denoting racial  Strengthen and affiliation removed by 2012 expanded Technical  Proportion of teachers undergo in- and Vocational service teacher training increased by Educational and 10% annually Training (TVET).  All teachers serving in schools in  Effective and efficient Fiji registered by December 2009 allocation of subsidies  Commencement of the Higher to tertiary institutions. Education promulgation  Conduct tracer study to implementation finalized by know the fate of school December 2009 leavers as school- dropouts and qualified graduates in the labour market or in the tertiary institution.  Review the Affirmative Action policies.  Community awareness campaigns on the importance of education in economic development.  Better training in financial management, record keeping and monitoring. 132

4.2.6 Health Goal: Quality, affordable and efficient health services for all Policy Objectives Strategies Key Performance Indicators Communities are  Strengthen and  Child mortality rate reduced from 26 to 20 provided with implement integrated per 1000 live births by 2015(MDG). adequate primary programme on  Percentage of one year old immunized and preventive maternal and child against measles increased from 68% to health services, health, Expanded 95%. thereby protecting, Programme on  Reduce prevalence of underweight children promoting and Immunization, under five years of age by 50% (MDG) supporting their Integrated well being. Management of Childhood Illnesses and Reproductive Health  .Implement the safe  Maternal mortality ratio reduced from 50 to motherhood 20 per 100,000 live births by 2015 (MDG) programme.  Antenatal care coverage (at least one visit and at least four visits) (MDG)  Achieve universal  Reduce Adolescent birth rate (MDG) access to  Contraceptive prevalence rate amongst reproductive health population of child bearing age increased and strengthen from 46% to 56% by 2015 (MDG). reproductive  Unmet need for family planning reduced programme. from 50% to 40% (MDG)  Achieve universal  HIV/AIDS prevalence among 15-24 year access to treatment old pregnant women reduced from 0.04 to for HIV/AIDS for all 0.03 (MDG) those who need it  Proportion of population with advanced HIV infection with access to antiretroviral drugs (MDG)  Implement the STI/HIV/AIDS Strategic Plan 2010- 2012.  Implement the Non  Prevalence of diabetes reduced from 16% to Communicable 14%. 133 Diseases Strategic  Prevalence of key risk factors such as Plan 2005-2008. obesity, smoking, physical inactivity reduced and increase in consumprtion of fruits and vegetables  Maintain appropriate  Increased Fiji resident medical graduates levels of health care from FSMed from 40 to 50 per year. professionals and  Increased nursing graduates from 130 to ensure high standards 200 per year of health care.  Increase nurse practitioner graduates per year  Increase nurse midwives graduates per year  Incraese post basic public health nurse graduates per year  Establishment of fully fledged cardiac open heart services by 2014  Establishment of comprehensive oncology services by 2014  Establishment of comprehensive kidney services by 2014  Increase annual budgetary allocation to the health sector by 0.5% of the GDP annually  Establishing a Health Care Financing Unit within MoH  Annual production of National HealthAccounts Communities have  Balanced mix of  Participation of private and health care access to effective, public and private providers increased from 2 to 10. efficient and quality financing for priority clinical health care health programs. and rehabilitation services  Doctors per 100,000 population increased  Identify and from 36 to 42. appropriately equip  Nurse to patient ratio and nurse to the health centers in population ratio increased Fiji that are in dire  Increased specialist nursing establishment need for more  Elimination of stock outs of drugs from resources present 100 items per month. particularly, additional medical expertise and drugs 134  Improved level of  Doctors per 100,000 population increased equity, efficiency and from 36 to 42 effectiveness of  Elimination of stock outs of drugs from health services. present 100 items per month  Average length of stay for in-patient treatment reduced from 5 to 3 days.  Outsourcing non technical activities such as laundry, kitchen, housekeeping and security by end of 2010.  Financial resources  Outsourcing non technical activities such as shifted towards cost- laundry, kitchen, housekeeping and security effective health by end of 2010. programmes.   Implementation of a  Health expenditure increased from the Social Health current 2.92% to at least 5% of GDP by Insurance Scheme 2013   New fees and charges  Health expenditure increased from the incorporated in the current 2.92% to at least 5% of GDP by revised Hospital and 2013 Dispensary Act  Establish a Health  Hospital Boards established by 2010 Policy Commission

4.2.7 Gender Equality and Women Development Goal: Achievement of gender equality and empowerment of women Policy Objective Strategies Key Performance Indicator Achievement of  Laws in relation to UN  Share of women in wage Gender Equality and CEDAW (articles 1-13) employment in the non- Empowerment of reviewed, implemented and agricultural sector increased Women through full monitored; gender from 35.9% to 37.9% by 2011 participation in mainstreaming institutions (MDG). business and decision- strengthened; a National  Combined primary and making process Women‘s Plan of Action secondary girls: boys ratio of 1:1 through entrepreneurial implemented, Domestic (MDG). support in non-formal Violence Bill enacted,  The proportion of female school and formal sector and awareness training on the principals, vice and assistant decision making Family Law Act, and ensure principals to be not less than processes. appropriate sentencing 25% by 2011. 135 Goal: Achievement of gender equality and empowerment of women Policy Objective Strategies Key Performance Indicator penalties, including  The proportion of female CEOs counseling, for violent in Government to be at least crimes, against women and 20% by 2011. children.  At least one woman in each  Increase ability of women Government board, committee, and their access to income tribunal, council, and generating activities commission. including SME.  Proportion of seats held by Development (WOSED to be women in national parliament reviewed), targeted and municipal elections to be not programmes for women in less than 20% (MDG). agriculture reform and equal  Number of women supported by training opportunities at all micro-finance increased from levels in Government. 5,100 in 2006 to not less than  Empower women, 19,500 by 2010. particularly rural women,  Cases of domestic violence through training on recorded by police to be leadership, awareness of monitored and analyzed. human and indigenous rights  Availability of Sex- issues, health and quality of Disaggregated data. life through Partnership,  Maintain the 50% parity of Networking and young females Coordination with women  Full female parity (50%) in the groups and increased top three occupation group in collaboration and partnership older age group with NGOs.  Percentage of Females who are  Mainstream gender considered ―Economically perspectives in all ministries Active‖ to rise from the 31% in Strategic plans, Corporate 2004-05 to 37.9% by 2011 plans and Business plans.  Household work for  Strengthen women‘s groups economically active females to increase awareness in the reduced from 14 hours per week role that women play in to less than 5 hours by 2011. societies.  Improve average paid work for  conduct gender sensitization Economically Active women as workshops at national and compared to men from17% to district (including village) less than 10% by 2011 level   mobilizing and networking with more men and young boys organizations to work as gender advocates  increased partnerships with women‘s groups at 136 Goal: Achievement of gender equality and empowerment of women Policy Objective Strategies Key Performance Indicator community level, non government organisations and civil society organisations to conduct empowerment programmes for women  increased partnerships with research institutions such as the academia to provide evidence based research and results to make informed policy decisions  support local and regional organizations in engaging with women‘s rights CSO‘s and indigenous women‘s groups to advocate and advance gender equality initiatives  adoption of a central data & information management information system to reflect gender statistics and indicators disaggregated by ethnicity, age, disability, and employment status and other relevant status. 137

4.2.8 Children and Youth Goal: Protection and development of children and youth Policy Objective Strategies Key Performance Indicators Children and young  Review, implement and  Offences against children to be people enjoy monitor legislation with recorded monitored and analyzed. greater protection the principles and  Young people benefiting from and development. provisions of the Placement Services Work Experience Convention on the Rights Programmes increased from 100 to of the Child (CRC) and 120 annually. other relevant international  Teenage pregnancy reduced from instruments. 16% to 8% by 2011  Promotion of children and  Number of SME projects supporting youth issues and their young people increased from 180 to increased participation in 250 per year. decision-making processes,  Compulsory two weeks ―Skills for at all levels. Life Training‖ where youths are  Promote a protective introduced into a ―seeds of success environment for children training package‖ along with current and combat all forms of issues (such as drugs, crime, child abuse and HIV/AIDS, volunteer services) pornography in partnership affecting youth development with community and faith followed by a 4 weeks ―Specific based organizations and Skills Training‖ where youths NGOs. undertake training in their  Ensure greater occupational area of interest. understanding of parenting  The NYSS targets 1,500 youth clients skills and strengthen in 2010. family counseling services  The National Volunteer Service to for children and youth on target 1,000 clients in 2011. sexual, drug and substance  higher proportion of children placed abuse, suicide and in kinship and foster care compared infanticide, reproductive to institutional placement health education and  10 villages/settlements per province family life issues. have incorporated child protection in  Increase number of youths their development plans trained for livelihood  All residential homes for children are activities and lifelong skills certified and have achieved 90% and values to be compliance of the minimum responsible citizens. standards  Support the establishment  A higher proportion of offenders are of small & micro- diverted into community based enterprise projects for rehabilitation programmes youth in rural and urban centers.  Re-structure all youth 138 Goal: Protection and development of children and youth Policy Objective Strategies Key Performance Indicators development programmes towards a more client oriented and market driven approach.  Encourage National Volunteer Services in all Govt. Ministries, & Statutory Bodies.  Strengthen policy formulation, programme implementation and monitoring.

4.2.9 Sports Development Goal: Promoting sports for healthy lifestyles, employment opportunities, peace, unity and harmony Policy Strategies Key Performance Indicators Objectives People enjoy  Increase in participation of  Increase in corporate sponsorship healthier citizens in ―Sports for All‖ from $2.6 million to $3.5 million per lifestyles and activities and integrate them year. improved in the workplace.  Increase in gold medals from 25 to 35 sporting skills and  Support the development of in the Pacific and Mini South Pacific knowledge. sports facilities, programmes Games. and involvement of the  At least 3 medals won at each private sector in sports. Commonwealth Games .  Measures to be designed and  Each year, at least one age group in a implemented to promote team sport to qualify for World minor sports and develop Championships. professional players.  Increase in number of athletes and  To facilitate employment players contracted to overseas clubs opportunities through sports. from 70 to 200.  Increased number of  Establishment of a Sports qualified sports scientists and Commission focusing on regulatory administrators and improved aspects for national sporting bodies. coordination between sports agencies, continuing implementation of the National Sports policy.  Increase in the number of 139 Goal: Promoting sports for healthy lifestyles, employment opportunities, peace, unity and harmony Policy Strategies Key Performance Indicators Objectives national age group teams (U13, U17, U19 and U23) and competition for various sports.  Review Government tax incentives on sports sponsorship for national sporting federations.  Administration of sports grants to National Sporting Organizations.  Rural playing fields development.  Implementation of sports outreach program.  Establish regulatory body for amateur sports

4.2.10 Environmental Sustainability Goal: Sustainable management and utilization of Fiji‘s natural resources Policy Objectives Strategies Key Performance Indicators Fiji‘s environment  Promote awareness of  Waste disposal increased to 100,000 is protected from environmental management tonnes per year from 2010 and unsustainable at all levels and mobilize maintained. degradation and communities to manage  100% of facilities comply with EMA continues to their own environment as a requirements by 2010. provide for our priority over outside  All new developments to conduct EIA current and future intervention by State and and establish monitoring benchmarks needs Non-State actors. consistent with the EMA from 2010.  Review and strengthen  Total cessation of non-quarantine pre- legislation which includes shipment application for methyl environmental management bromide and chlorofluoro-carbons provisions (e.g. Forest Act, (CFCs) by 2010. Public Health Act, and  5 new CDM projects registered by Litter Decree) and 2012. coordinate implementation  Dept. of Environment operating as a in the framework of the Statutory Authority by 2012. EMA.  Enforce the EMA giving 140 Goal: Sustainable management and utilization of Fiji‘s natural resources Policy Objectives Strategies Key Performance Indicators priority to early full enforcement of provisions for EIA and Waste Management and Pollution Control.  Continue the implementation of the Biodiversity Strategy and Action Plan and Endangered and Protected Species Act and the ODS Act 1998.  Increase awareness of Climate Change and its impact  Explore potential areas where Fiji can take advantage of Carbon Trading Facility provided under the Kyoto Protocol.  Re-organization of Dept. of Environment into a Statutory Authority

4.2.11 Culture and Heritage Goal: Protection and promotopn of our culture and heritage for current and future generations Policy Strategies Key Performance Indicators Objectives Each  Protect, preserve and manage  At least 2 heritage sites community Fiji‘s cultural and natural heritage included in the World Heritage enjoys  Assist the agencies in the listing. increased implementation of their  At least 80% of resource experience and development policies and owners meet standard for best benefits of its strengthen co-ordination of their practices in the marketing of own culture and work. cultural resources. heritage and  Develop and strengthen Fiji Arts  At least 20 new heritage sites appreciation of Council, Fiji Museum, Fiji Art included as visitor attractions. those of fellow Gallery, and National Trust of Fiji  At least 20 new archaeological communities in to increase their effectiveness. sites surveyed annually. Fiji.  Develop strategies to preserve, promote and increase awareness of culture for posterity. 141 Goal: Protection and promotopn of our culture and heritage for current and future generations Policy Strategies Key Performance Indicators Objectives  Establish partnerships and links of professional cultural heritage institutions locally and overseas to support technical training on heritage management and preservation.  Promote conservation and cultural resource development that emphasizes partnership with local resource owners & local institutions.  Fully capitalize the Fiji Heritage Foundation as a sustainable and innovative funding mechanism for cultural heritage projects.  Develop a cultural heritage and arts curricula for primary and secondary schools for inclusion into the formal education curricula.

4.2.12 Disaster Risk Reduction and Disaster Management Goal: Building national resilience to disasters and adapting to climate change Policy Strategies Key Performance Indicators Objectives Communitie  Identify and implement effective  Government responds to disaster s are better risk reduction projects. situation within the first 24 hours. protected  Improve community response  Casualties reduced from 30 per year from the capacity in dealing with disasters to none. risks of and risks with effective, integrated  Everybody to receive timely disasters and people-focused early warning warning and are systems on all hazards.  One third of all villages and better able  Enhance analysis and evaluation of settlements in Fiji have disaster to cope with hazards, vulnerabilities and risks. plans and committees in 2010 their  Promote and strengthen food  Models of best practice developed consequenc security programme to enhance and adopted to support disaster risk es. community based disaster reduction reduction initiatives.  Cost for disaster emergency relief 142  Strengthen organizational, food ration reduced by 20% by institutional, policy and decision 2012 making frameworks.  Enhance knowledge, information, public awareness and education.  Strengthen effective planning, response and recovery.  Ensure availability of adequate necessary germplasm to support recovery.

4.2.13 Rural and Outer Islands Development Goal: Promoting equal opportunities and access to basic services, livelihoods and markets Policy Objectives Strategies Key Performance Indicators Rural and outer island  Extend FEA power  Family Assistance Scheme communities to meet connectivity across beneficiaries in Eastern and their basic needs, Vanua Levu. Northern Divisions reduced improve living standards  Strengthen interagency by 1500 from current level and quality of life coordination to facilitate of over 7600 by 2014. towards self-sufficiency. implementation of major  Endorsement of all four road infrastructure Divisional Development programs earmarked for Plans by Cabinet by 2011. Vanua Levu such as those under Chinese loan, and Savusavu port.  Awareness programmes to educate rural population on Government assistance and their civic responsibilities.  Undertake capacity building in divisional offices to better serve population.  Develop divisional development plans in consultation with divisional stakeholders, including community.  Improve provision of basic services to the rural areas (health, education, 143 Goal: Promoting equal opportunities and access to basic services, livelihoods and markets Policy Objectives Strategies Key Performance Indicators agriculture extension) Rural and outer island  Community capacity  Minimum of 2 trips per dwellers enjoy building programmes at month on each of nine increased access to grassroots levels in franchised outer island markets and collaboration with NGOs. shipping routes. government services to  Support development of  1500 newly registered tax ensure income and food MSME. payers on Vanua Levu security.  Inter island shipping annually. routes reviewed as well  2000 newly registered as improvement in inter FNPF members on Vanua island maritime Levu annually. infrastructure.  At least 5 companies  Increased access to established under tax free formal financial services zone initiative in Vanua for savings and credit, Levu by 2014. including rural banking, microfinance and savings and credit unions.  Increased market access and connectivity by upgrading infrastructure and the provision of basic services and amenities. 144 CHAPTER 5 Chapter 5 Implementation and Monitoring Mechanism It is recognized that the successful implementation of the Roadmap to Democratic and Sustainable Socio Economic Development (RDSSED) will require effective leadership, coordination, commitment, the necessary resources and continuous capacity building. Therefore, it is imperative that the necessary institutional arrangement is in place to ensure effective implementation of the Roadmap.

5.1 The Implementation Framework All stakeholders and implementing agencies including Ministries and Departments will ensure that all key initiatives and major outputs are achieved within the timeframe. The framework to ensure a systematic and coherent approach to implementation is illustrated in Figure 5.1 and will consist of the following phases: (i) Roadmap - based on the Strategic Framework for Change which will outline the outputs and respective strategies and programmes to achieve the outcomes in the Strategic Framework. (ii) Action Plans - based on the Roadmap, ministries and departments will develop Action Plans which will be basis for the formulation of their Annual Corporate Plans. (iii) Nationwide Effort - all stakeholders including ministries and departments must contribute positively to the implementation programme. (v) Implementation and Monitoring - a monitoring and reporting framework will be developed to ensure systemic and effective implementation. Figure 5.1: The Implementation Framework Strategic Framework July 09 Roadmap Aug 09 Annual Action Plans Sept 09 Corporate Plans Implementation & Oct 09 Monitoring Framework 145

5.2 The Monitoring Mechanism The monitoring mechanism will involve the National Peoples Charter Council (NPCC), eleven sub-committees, a secretariat, Ministries and Departments, private sector and civil society. The entities involved in the mechanism and their reporting relationship is illustrated in Figure 5.2.

5.2.1 Composition and Functions of the NPCC The members of the NPCC will be inclusive and representative of the people of Fiji. Therefore, members shall be drawn from the Government of the day, members of Parliament, recognised private sector organisations, the Great Council of Chiefs, Non Government Organisations, religious organisations, provincial councils, advisory councils and other community-based organisations. Whereas the implementation and monitoring mechanisms of successive previous Governments have focused largely on passively reviewing implementation performance, this will need adjustment and updating as circumstances change over time. In light of this necessity and the need for greater public inclusiveness, dialogue and participation, the NPCC, shall be actively engaged in performing the role of facilitator, setting and shaping the ongoing agenda for change. The NPCC will monitor the Roadmap outputs and their respective Key Performance Indicators (KPIs), as contained in the attached Implementation and Monitoring Matrix. The NPCC, and sub-committees will not limit themselves to assessing progress against the KPIs: an important function of the sub-committees will be to assess the continuing relevance of outcomes and KPIs and the quality of information they are providing so that the adequacy of all KPIs is kept under review. The functions of the NPCC, shall include:  monitor Roadmap implementation focusing on the outputs and key performance indicators;  provide forums for consultation and dialogue for consensus building on national development issues;  carry out civic education on governance issues, national identity and other issues considered relevant and important;  evaluate and review performance of implementing agencies;  review of the Roadmap when necessary for the purpose of updating and adjustment; and  provide policy advice and support to the Prime Minister and Cabinet on issues pertaining to the Roadmap. 146 Figure 5.2 Monitoring Framework for the Roadmap PARLIAMENT NATIONAL PEOPLES CHARTER COUNCIL Sub-Com Sub-Com Sub-Com Sub-Com Sub-Com Sub-Com Sub-Com Sub- Sub-Com Sub-Com Sub-Com Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5 Pillar 6 Pillar 7 Com Pillar 9 Pillar 10 Pillar 11 Pillar 8 Government Ministries and Departments Civil Society Organisations Private Sector Organisations 147 Sub-Committees To support the work of the NPCC, eleven sub committees will be established to coordinate the work relevant to their respective sectors based on their Terms-of-Reference. The sub-committees will comprise representatives from Government, the private sector and civil society. To facilitate implementation, the sub-committees will meet on a quarterly basis during the year. The sub-committees will:  set a broad agenda for the four meetings in the year in consultation with the Secretariat;  with the assistance of the Secretariat, hold meetings in accordance with the forward programme. The objective of the meetings will be to monitor progress made in the achievement of KPIs, identify constraints and corrective actions; and  provide an oral report and recommendations to meetings of the NPCC. Secretariat A Secretariat will be established under the Ministry of National Planning to support the NPCC in its functions. The secretariat needs to be professional and have a strong technical background to better support the NPCC. In light of the broad range and complexity of issues involved, the Secretariat must be adequately equipped with resources and expertise. The Secretariat will:  determine, with the sub-committees‘ Chair, which Ministries and Departments, private sector and civil society sections have responsibilities relevant to the work of the sub-committees;  determine from the Implementation and Monitoring Framework and annual corporate plans of relevant Ministries and Departments what progress should be expected, and what information available, in the forthcoming financial year; also assist the Chair to set a forward agenda;  communicate the forward agenda to all members and Permanent Secretaries of relevant Ministries and Departments, private sector and civil society;  maintain contact with relevant Ministries and Departments to determine the range of performance information available;  set up an information and cooperation network with relevant Ministries and Departments, the private sector and civil society so that they can actively support the Secretariat role;  set dates for meetings and inform members of sub-committees; ensure as far as possible that information relevant to the discussion is circulated beforehand; and where final published information is not available, obtain estimates or provisional data; and  record the discussions to form a basis for the Chair‘s oral report to the NPCC. Permanent Secretaries of Ministries and Departments Permanent Secretaries will contribute to the implementation and monitoring of the Roadmap to Democratic and Sustainable Socio Economic Development (RDSSED) by:  ensuring that there are direct links between their annual corporate plans, RDSSED and budget bids. Performance indicators and milestones in annual corporate plans should be realistic and 148 achievable within the resources of the Ministry or Department with appropriate collaboration from other parts of Government, and capable of being achieved within the year covered by the Plan;  aligning their personal performance agreements to the outputs and coordination requirements identified in the RDSSED and the annual corporate plans; and  personally attending meetings of the sub-committees to which their Ministry or Department is relevant, and taking a personal interest in the quality and timeliness of the information being provided by their Ministry or Department to the sub-committees. Cabinet Cabinet will play an active leadership role in the implementation and monitoring and will:  discuss on a regular basis progress reports on Roadmap implementation;  on the advice of NPCC, and in consultation with the President‘s Office, effect reviews when necessary to the Roadmap; and  through the Ministers ensure full and effective implementation of the Roadmap.

5.2.2 Management Information System The effectiveness of monitoring and evaluation systems is dependent on the establishment of a well- developed management information system. The availability of timely and quality data is essential to ensure informed decisions are undertaken. The Fiji Islands Bureau of Statistics, as the national statistical agency, is mandated to ‗collect, compile, abstract, analyse and publish statistical information relating to the commercial, industrial, agricultural, social, economic and general activities and conditions of the people of Fiji in a timely and coherent manner.‘ An Information System will be established and maintained so that the implementation of reforms can be tracked and timely corrective actions taken. The Information System will include agreed baselines, time-bound indicators, and specific benchmarks to measure and monitor progress. It will permit timely analysis and prompt publication of the results from and effects of the RDSSED initiatives. 149 APPENDICES

Appendix 1 Macroeconomic Data and Projections Table 1: Gross Domestic Product by Sector ($000), 2001 - 2011 ACTIVITY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture, Forestry, Fishing & Subsistence 434,063 454,481 434,940 457,419 461,276 458,803 432,787 432,042 428,560 446,353 457,895 Agriculture 329,213 343,848 335,113 342,374 342,350 345,127 332,269 329,714 331,623 373,345 361,331 Crops 186,309 197,761 188,352 193,091 192,644 190,561 178,131 174225 176066 188977 202945 Sugarcane 121853 124721 121070 122331 114813 121,157 94431 82155 82155 90370 99408 Other Crops 64456 73040 67282 70760 77831 69,404 83700 92070 93911 98607 103537 Livestock Products 15822 17872 18770 20510 20511 23,917 24175 25142 24891 25388 26658 Subsistence 119329 119624 120176 121059 121499 122,181 122770 123384 123877 124497 125119 Public Sector 7753 8591 7815 7714 7696 8,468 7193 6963 6789 6538 6609 Fishing 70,162 77,546 61,878 76,984 82,570 78,988 66,396 69,368 66,982 69,723 65,040 Fishing 42356 49804 33465 48356 53844 50,155 37270 40065 37661 40298 35462 Subsistence 27278 27345 27471 27673 27774 27,930 28065 28205 28318 28460 28602 Public Sector 528 397 942 955 952 903 1061 1097 1003 966 976 Forestry 34,688 33,087 37,949 38,061 36,356 34,688 34,122 32,961 29,955 31,230 31,524 Forestry 17532 15912 20736 20700 18936 17,175 16520 15198 12159 13375 13575 Subsistence 16461 16501 16578 16699 16760 16,854 16936 17021 17089 17174 17260 Public Sector 695 674 635 662 660 659 666 742 707 681 688 Mining and Quarrying 41,566 40,081 37,833 43,384 30,045 15,092 312.0 7,530.8 12,051.6 16,738.5 20,086.2 Manufacturing 449,852 453,488 448,857 506,482 428,293 440,027 440,993 423,509 414,955 428,877 439,014 Sugar 60483 61849 60093 60679 56972 60,094 46826 40739 40739 44812 49294 Beverage and Tobacco 46804 52579 61734 71082 91340 102,655 121971 121483 119053 121435 123863 Other Food Industries 30844 34184 35690 38080 36869 38,080 36247 36972 37711 395597 41577 Non Food Industries 299809 292661 278821 323785 229918 225,633 222,114 210204 203058 208351 209305 Clothing and Footwear 178054 156349 139280 173582 78256 56,661 59551 47641 40495 37660 36907 Other Non Food Industries 121755 136312 139541 150203 151662 168,973 162563 162563 162563 170691 172398 Informal Sector 11912 12215 12519 12856 13194 13,565 13835 14112 14394 14682 14975 Electricity & Water 100,150 104,429 108,696 112,905 114,385 122,073 122,564 118,661 120,314 123,087 125,934 Electricity 94027 98158 102149 104739 106000 111,111 111,461 107003 108073 110234 112439 Water 6123 6271 6547 8166 8385 10,962 11,103 11658 12241 12853 13496 Building & Construction 116,491 126,221 134,873 140,693 177,533 191,740 152,334 152566 153148 153382 153617 Private Sector 26539 27175 36683 47645 89941 105,294 77517 77517 73641 73641 73641 Public Sector 41024 50005 50502 45022 39453 40,336 28,482 28482 32754 32754 32754 Own Account & Self Employment 48928 49041 47688 48026 48139 46,110 46335 46567 46753 46987 47222 Wholesale & Reatil Trade, Hotels & Restaurants 465,157 465,964 476,946 537,605 532,244 556,559 528,799 544,775 531,260 542,437 554,006 Wholesale & Retail Trade 342,188 332,016 338,314 376,278 354,750 379,199 364,909 372207 365258 369036 372855 Wholesale & Retail Trade 330717 320643 326648 364320 342889 367,273 352788 359844 352647 356173 359735 Informal Sector 11471 11373 11666 11958 11861 11,926 12,121 12363 12611 12863 13120 Hotels & Restaurants 122,969 133,948 138,632 161,327 177,494 177,360 163,890 172568 166002 173401 181151 Hotels & Restaurants 98092 108437 112486 134477 149939 149,030 134996 143096 135941 142738 149875 Informal Sector 24877 25511 26146 26850 27555 28,330 28894 29472 30061 30663 31276 Transport & Communication 357,551 387,990 401,055 394,313 422,277 408,328 391,838 406,546 410,756 418,555 431,355 Transport 249,567 274,984 283,983 289,987 315,164 305,853 296,571 309,374 309,697 315,475 326,213 151 Land Transport 36862 37736 38785 39943 41273 42,684 43566 4437 45326 46233 47157 Water Transport 30608 33335 35149 35948 42748 39,739 40104 40906 41724 42559 43410 Air Transport 52862 65871 74064 78525 78187 79,125 77574 83780 79591 79591 81979 Services allied to Transport 108158 116427 113833 112822 129610 120,302 110846 115280 117585 121113 127169 Informal Sector 21077 21615 22152 22749 23346 24,003 24481 24971 25470 25979 26499 Communication 107984 113006 117072 104326 107113 102,475 95,267 97,172 101,059 103,080 105,142 Finance,Insurance,Real Estate & Business Services 373,913 367,174 323,429 336,374 369,984 428,122 420,595 425,629 417,874 423,763 431,316 Finance 110,139 101,688 79,567 85,059 104,387 130,390 120,041 117751 105516 103593 103022 Monatary Institution 84,542 78,869 67,942 66,281 80,496 93,993 89,501 99876 87641 85372 84443 Private Sector 53179 57185 49890 48041 60748 78,984 67790 74908 72661 73387 74855 Public Sector 31363 21684 18052 18240 19748 15,009 21711 24968 14981 11984 9588 Other Financial Institution 25,597 22,819 11,625 18,778 23,891 36,397 30,540 17875 17875 18221 18580 Private Sector 3666 3666 2095 1571 4189 17,281 16758 4190 4190 4399 4619 Public Sector 21931 19153 9530 17207 19702 19,116 13782 13686 13686 13822 13961 Insurance 91,526 99,511 74,818 77,317 81,334 81,328 79,641 81219 83162 85153 87194 Private Sector 42941 44081 48453 49467 52514 51,211 48395 49363 50350 51357 52384 Public Sector 48585 55430 26365 27850 28820 30,117 31246 31856 32812 33796 34810 Real Estate & Business Services 172,248 165,975 169,044 173,998 184,263 216,404 220,913 226660 229196 235017 241100 Formal Sector 51533 44962 47472 51533 61352 92,803 96716 101842 103879 109073 114526 Owner Occupied Dwellings 120715 121013 121572 122465 122911 123,601 124197 124818 125317 125944 126574 Community, Social and Personal Services 467,737 483,555 518,645 515,089 547,318 591,776 509,311 492,679 493,710 479,942 464,671 Personal & Household Services 59,268 60,904 62,359 63,868 65,387 67,001 68,251 69262 70293 71344 72417 Formal Sector 15760 16287 16632 16909 17195 17,453 17717 17717 17717 17717 17717 Informal Sector 43508 44617 45727 46959 48192 49,548 50534 51545 52576 53627 54700 Social & Related Community Services 408469 422651 456286 451221 481931 524,775 441,060 423,418 423,418 408,598 392,254 less imputed bank service charges 117887 108841 85164 91043 111730 139,563 128,486 126,034 112,939 110,881 110,269 Grand Total 2,688,595 2,774,544 2,800,111 2,953,223 2,971,624 3,072,957 2,871,047 2,877,904 2,869,689 2,922,254 2967626 152 Table 2: Gross Domestic Product by Sector – Growth Rates 2001- 2011 ACTIVITY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture,Forestry, Fishing & Subsistence -5.7 4.7 -4.3 5.2 0.8 -0.5 -5.7 -0.2 -0.8 4.2 2.6 Agriculture -3.5 4.4 -2.5 2.2 0.0 0.8 -3.7 -0.8 0.6 4.2 4.6 Crops -6.5 6.1 -4.8 2.5 -0.2 -1.1 -6.5 -2.2 1.1 7.3 7.4 Sugarcane -7.5 2.4 -2.9 1.0 -6.1 5.5 -22.1 -13.0 0.0 10.0 10.0 Other Crops -4.6 13.3 -7.9 5.2 10 -10.8 20.6 10.0 2.0 5.0 5.0 Livestock Products -1.3 13.0 5.0 9.3 0.0 16.6 1.1 4.0 -1.0 2.0 5.0 Subsistence 0.2 0.2 0.5 0.7 0.4 0.6 0.5 0.5 0.4 0.5 0.5 Public Sector 13.8 10.8 -9 -1.3 -0.2 10 -15.1 -3.2 -2.5 -3.7 1.1 Fishing -17.0 10.5 -20.2 24.4 7.3 -4.3 -15.9 4.5 -3.4 4.1 -6.7 Fishing -24.8 17.6 -32.8 44.5 11.4 -6.9 -25.7 7.5 -6.0 7.0 -12.0 Subsistence 0.2 0.2 0.6 0.6 0.6 0.6 0.5 0.5 0.4 0.5 0.5 Public Sector -46.7 -24.8 137.3 1.4 -0.3 -5.2 17.5 3.4 -8.6 -3.7 1.1 Forestry 0.4 -4.6 14.7 0.3 -4.5 -4.6 -1.6 -3.4 -9.1 4.3 0.9 Forestry 0.0 -9.2 30.3 -0.2 -8.5 -9.3 -3.8 -8.0 -20.0 10.0 1.5 Subsistence 0.2 0.2 0.6 0.6 0.6 0.6 0.5 0.5 0.4 0.5 0.5 Public Sector 16.2 -3.0 -5.8 4.2 -0.3 -0.1 1.1 11.4 -4.7 -3.7 1.1 Mining and Quarrying 1.8 -3.6 -5.6 14.7 -30.7 -49.8 -97.9 2313.7 60.0 38.9 20.0 Manufacturing 12.4 0.8 -1.0 12.8 -15.4 2.7 0.2 -4.0 -2.0 3.4 2.4 Sugar -7.7 2.3 -2.8 1.0 -6.1 5.5 -22.1 -13.0 0.0 10.0 10.0 Beverage and Tobacco 29.3 12.3 17.4 15.1 28.5 12.4 18.8 -0.4 -2.0 2.0 2.0 Other Food Industries 9.5 10.8 4.4 6.7 -3.2 3.3 -4.8 2.0 2.0 5.0 5.0 Non Food Industries 15.8 -2.4 -4.7 16.1 -29.0 -1.9 -1.6 -5.4 -3.4 2.6 0.5 Clothing and Footwear 27.5 -12.2 -10.9 24.6 -54.9 -27.6 5.1 -20.0 -15.0 -7.0 -2.0 Other Non Food Industries 2.1 12.0 2.4 7.6 1 11.4 -3.8 0.0 0.0 5.0 1.0 Informal Sector 3.2 2.5 2.5 2.7 2.6 2.8 2.0 2.0 2.0 2.0 2.0 Electricity & Water 6.6 4.3 4.1 3.9 1.3 6.7 0.4 -3.2 1.4 2.3 2.3 Electricity 6.7 4.4 4.1 2.5 1.2 4.8 0.3 -4.0 1.0 2.0 2.0 Water 5.0 2.4 4.4 24.7 2.7 30.7 1.3 5.0 5.0 5.0 5.0 Building & Construction -6.9 8.4 6.9 4.3 26.2 8.0 -20.6 0.2 0.4 0.2 0.2 Private Sector -29.1 2.4 35.0 29.9 88.8 17.1 -26.4 0.0 -5.0 0.0 0.0 Public Sector 5.5 21.9 1.0 -10.9 -12.4 2.2 -29.4 0.0 15.0 0.0 0.0 Own Account & Self Employment 0.2 0.2 -2.8 0.7 0.2 -4.2 0.5 0.5 0.4 0.5 0.5 Wholesale & Reatil Trade, Hotels & Restaurants 8.1 0.2 2.4 12.7 -1.0 4.6 -5.0 3.0 -2.5 2.1 2.1 Wholesale & Retail Trade 8.0 -3.0 1.9 11.2 -5.7 6.9 -3.8 2.0 -1.9 1.0 1.0 Wholesale & Retail Trade 8.1 -3.0 1.9 11.5 -5.9 7.1 -3.9 2.0 -2.0 1.0 1.0 Informal Sector 3.2 -0.9 2.6 2.5 -0.8 0.5 1.6 2.0 2.0 2.0 2.0 Hotels & Restaurants 8.4 8.9 3.5 16.4 10.0 -0.1 -7.6 5.3 -3.8 4.5 4.5 Hotels & Restaurants 9.8 10.5 3.7 19.6 11.5 -0.6 -9.4 6.0 -5.0 5.0 5.0 Informal Sector 3.2 2.5 2.5 2.7 2.6 2.8 2.0 2.0 2.0 2.0 2.0 Transport & Communication -2.4 8.5 3.4 -1.7 7.1 -3.3 -4.0 3.8 1.0 1.9 3.1 Transport -0.1 10.2 3.3 2.1 8.7 -3.0 -3.0 4.3 0.1 1.9 3.4 Land Transport 1.9 2.4 2.8 3 3.3 3.4 2.1 2.0 2.0 2.0 2.0 Water Transport -6.0 8.9 5.4 2.3 18.9 -7.0 0.9 2.0 2.0 2.0 2.0 Air Transport 3.5 24.6 12.4 6 -0.4 1.2 -2 8.0 -5.0 0.0 3.0 Services allied to Transport -1.4 7.6 -2.2 -0.9 14.9 -7.2 -7.9 4.0 2.0 3.0 5.0 Informal Sector 3.2 2.6 2.5 2.7 2.6 2.8 2.0 2.0 2.0 2.0 2.0 Communication -7.4 4.7 3.6 -10.9 2.7 -4.3 -7.0 2.0 4.0 2.0 2.0 Finance,Insurance,Real Estate & Business Services 3.6 -1.8 -11.9 4.0 10.0 15.7 -1.8 1.2 -1.8 1.4 1.8 Finance 19.2 -7.7 -21.8 6.9 22.7 24.9 -7.9 -1.9 -10.4 -1.8 -0.6 Monatary Institution 7.3 -6.7 -13.9 -2.4 21.4 16.8 -4.8 11.6 -12.2 -2.6 -1.1 Private Sector -0.1 7.5 -12.8 -3.7 26.5 30.0 -14.2 10.5 -3.0 1.0 2.0 Public Sector 22.8 -30.9 -16.7 1.0 8.3 -24.0 44.7 15.0 -40.0 -20.0 -20.0 Other Financial Institution 87.3 -10.9 -49.1 61.5 27.2 52.3 -16.1 -41.5 0.0 1.9 2.0 153 Private Sector 0.0 0.0 -42.9 -25.0 166.6 312.5 -3.0 -75.0 0.0 5.0 5.0 Public Sector 119.3 -12.7 -50.2 80.6 14.5 -3.0 -27.9 -0.7 0.0 1.0 1.0 Insurance 36.4 8.7 -24.8 3.3 5.2 0.0 -2.1 2.0 2.4 2.4 2.4 Private Sector 2.8 2.7 9.9 2.1 6.2 -2.5 -5.5 2.0 2.0 2.0 2.0 Public Sector 91.9 14.1 -52.4 5.6 3.5 4.5 3.7 2.0 3.0 3.0 3.0 Real Estate & Business Services -14.5 -3.6 1.8 2.9 5.9 17.4 2.1 2.6 1.1 2.5 2.6 Formal Sector -36.4 -12.8 5.6 8.6 19.1 51.3 4.2 5.3 2.0 5.0 5.0 Owner Occupied Dwellings 0.2 0.2 0.5 0.7 0.4 0.6 0.5 0.5 0.4 0.5 0.5 Community, Social and Personal Services 2.2 3.4 7.3 -0.7 6.3 8.1 -13.9 -3.3 0.2 -2.8 -3.2 Personal & Household Services 2.5 2.8 2.4 2.4 2.4 2.5 1.9 1.5 1.5 1.5 1.5 Formal Sector 0.6 3.3 2.1 1.7 1.7 1.5 1.5 0.0 0.0 0.0 0.0 Informal Sector 3.2 2.5 2.5 2.7 2.6 2.8 2.0 2.0 2.0 2.0 2.0 Social & Related Community Services 2.1 3.5 8.0 -1.1 6.8 8.9 -16 -4.0 0.0 -3.5 -4.0 less imputed bank service charges 19.2 -7.7 -21.8 6.9 22.7 24.9 -7.9 -1.9 -10.4 -1.8 -0.6 Grand Total 1.9 3.2 0.9 5.5 0.6 3.4 -6.6 0.2 -0.3 1.8 1.6 154 Table 3: Gross Domestic Product Shares by Sector (%) 2001- 2011 Activity 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Agriculture,Forestry, Fishing & Subsistence 16.1 16.4 15.5 15.5 15.5 14.9 15.1 15.0 14.9 15.3 15.4 Agriculture 12.2 12.4 12.0 11.6 11.5 11.2 11.5 11.5 11.6 11.8 12.2 Crops 6.9 7.1 6.7 6.5 6.5 6.2 6.2 6.1 6.1 6.5 6.8 Sugarcane 4.5 4.5 4.3 4.1 3.9 3.9 3.3 2.9 2.9 3.1 3.3 Other Crops 2.4 2.6 2.4 2.4 2.6 2.3 2.9 3.2 3.3 3.4 3.5 Livestock Products 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.9 0.9 0.9 0.9 Subsistence 4.4 4.3 4.3 4.1 4.1 4.0 4.3 4.3 4.3 4.3 4.2 Public Sector 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 Fishing 2.6 2.8 2.2 2.6 2.8 2.6 2.3 2.4 2.3 2.4 2.2 Fishing 1.6 1.8 1.2 1.6 1.8 1.6 1.3 1.4 1.3 1.4 1.2 Subsistence 1.0 1.0 1.0 0.9 0.9 0.9 1.0 1.0 0.6 1.0 1.0 Public Sector 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Forestry 1.3 1.2 1.4 1.3 1.2 1.1 1.2 1.1 1.0 1.0 1.0 Forestry 0.7 0.6 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.4 0.4 Subsistence 0.6 0.6 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.6 Public Sector 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Mining and Quarrying 1.5 1.4 1.4 1.5 1.0 0.5 0.0 0.3 0.4 0.6 0.7 Manufacturing 16.7 16.3 16.0 17.2 14.4 14.3 15.4 14.7 14.3 14.6 14.8 Sugar 2.2 2.2 2.1 2.1 1.9 2.0 1.6 1.4 1.4 1.5 1.7 Beverage and Tobacco 1.7 1.9 2.2 2.4 3.1 3.3 4.2 4.2 4.3 4.3 4.3 Other Food Industries 1.1 1.2 1.3 1.3 1.2 1.2 1.3 1.3 1.3 1.3 1.4 Non Food Industries 11.2 10.5 10.0 11.0 7.7 7.3 7.7 7.3 6.8 6.9 6.9 Clothing and Footwear 6.6 5.6 5.0 5.9 2.6 1.8 2.1 1.7 1.4 1.4 1.2 Other Non Food Industries 4.5 4.9 5.0 5.1 5.1 5.5 5.7 5.6 5.4 5.6 5.6 Informal Sector 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 Electricity & Water 3.7 3.8 3.9 3.8 3.8 4.0 4.3 4.1 4.3 4.3 4.3 Electricity 3.5 3.5 3.6 3.5 3.6 3.6 3.9 3.7 3.8 3.8 3.8 Water 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.5 Building & Construction 4.3 4.5 4.8 4.8 6.0 6.2 5.3 5.3 5.4 5.3 5.2 Private Sector 1.0 1.0 1.3 1.6 3.0 3.4 2.7 2.7 2.6 2.5 2.5 Public Sector 1.5 1.8 1.8 1.5 1.3 1.3 1.0 1.0 1.1 1.1 1.1 Own Account & Self Employment 1.8 1.8 1.7 1.6 1.6 1.5 1.6 1.6 1.6 1.6 1.6 Wholesale & Reatil Trade, Hotels & Restaurants 17.3 16.8 17.0 18.2 17.9 18.1 18.4 18.9 18.5 18.5 18.7 Wholesale & Retail Trade 12.7 12.0 12.1 12.7 11.9 12.3 12.7 12.9 12.8 12.7 12.8 Wholesale & Retail Trade 12.3 11.6 11.7 12.3 11.5 12.0 12.3 12.5 12.4 12.3 12.3 Informal Sector 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 Hotels & Restaurants 4.6 4.8 5.0 5.5 6.0 5.8 5.7 6.0 5.7 5.8 6.0 Hotels & Restaurants 3.6 3.9 4.0 4.6 5.0 4.8 4.7 5.0 4.6 4.8 4.9 Informal Sector 0.9 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.1 1.1 1.1 Transport & Communication 13.3 14.0 14.3 13.4 14.2 13.3 13.6 14.1 13.9 14.0 14.0 Transport 9.3 9.9 10.1 9.8 10.6 10.0 10.3 10.8 10.7 10.6 10.6 Land Transport 1.4 1.4 1.4 1.4 1.4 1.4 1.5 1.5 1.6 1.6 1.6 Water Transport 1.1 1.2 1.3 1.2 1.4 1.3 1.4 1.4 1.5 1.5 1.5 Air Transport 2.0 2.4 2.6 2.7 2.6 2.6 2.7 2.9 2.6 2.6 2.6 Services allied to Transport 4.0 4.2 4.1 3.8 4.4 3.9 3.9 4.0 4.1 4.1 4.0 Informal Sector 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 Communication 4.0 4.1 4.2 3.5 3.6 3.3 3.3 3.4 3.2 3.3 3.4 Finance,Insurance,Real Estate & Business Services 13.9 13.2 11.6 11.4 12.5 13.9 14.6 14.8 14.9 14.8 14.8 Finance 4.1 3.7 2.8 2.9 3.5 4.2 4.2 4.1 3.9 3.8 3.7 Monatary Institution 3.1 2.8 2.4 2.2 2.7 3.1 3.1 3.5 3.3 3.1 3.1 Private Sector 2.0 2.1 1.8 1.6 2.0 2.6 2.4 2.6 2.8 2.7 2.7 Public Sector 1.2 0.8 0.6 0.6 0.7 0.5 0.8 0.9 0.5 0.4 0.3 Other Financial Institution 1.0 0.8 0.4 0.6 0.8 1.2 1.1 0.6 0.6 0.6 0.6 Private Sector 0.1 0.1 0.1 0.1 0.1 0.6 0.6 0.1 0.1 0.2 0.2 Public Sector 0.8 0.7 0.3 0.6 0.7 0.6 0.5 0.5 0.5 0.5 0.5 Insurance 3.4 3.6 2.7 2.6 2.7 2.6 2.8 2.8 2.9 2.9 3.0 Private Sector 1.6 1.6 1.7 1.7 1.8 1.7 1.7 1.7 1.8 1.8 1.8 Public Sector 1.8 2.0 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 1.2 Real Estate & Business Services 6.4 6.0 6.0 5.9 6.2 7.0 7.7 7.9 8.0 8.1 8.2 Formal Sector 1.9 1.6 1.7 1.7 2.1 3.0 3.4 3.5 3.6 3.8 3.9 155 Owner Occupied Dwellings 4.5 4.4 4.3 4.1 4.1 4.0 4.3 4.3 4.4 4.3 4.3 Community, Social and Personal Services 17.4 17.4 18.5 17.4 18.4 19.3 17.7 17.1 17.3 16.5 15.7 Personal & Household Services 2.2 2.2 2.2 2.2 2.2 2.2 2.4 2.4 2.5 2.5 2.5 Formal Sector 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 Informal Sector 1.6 1.6 1.6 1.6 1.6 1.6 1.8 1.8 1.8 1.8 1.9 Social & Related Community Services 15.2 15.2 16.3 15.3 16.2 17.1 15.4 14.7 14.8 14.0 13.2 less imputed bank service charges 4.4 3.9 3.0 3.1 3.8 4.5 4.5 4.4 4.0 3.8 3.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Table 4: Exports by Major Commodities ($ million) 2001- 2011 COMMODITIES 2001 2002 2003 2004 2005 2006 2007 2008 2009 (f) 2010(f) 2011 (f) Sugar 225.2 234.4 225.7 209.2 223.7 215.1 185 248.2 176.5 162.2 175.6 Molasses 12.3 12.4 6.9 9.7 9.9 19.2 10.4 13.6 12.8 12.5 13.4 Gold 85.4 67.8 76.5 88.5 59.3 43.1 2.6 26.7 59.5 83.5 102.3 Timber, Cork & Wood Manufacturers 39.6 38.9 30.8 42.0 45.1 37.6 47.7 59.3 50.4 54.4 56.6 Fish 93.0 78.4 79.4 81.4 82.9 97.9 101.3 134.2 128.8 135.3 135.3 Fruits & Vegetables 19.2 17.9 23.9 31.0 29.0 32.8 35.5 33.2 34.2 35.9 37.7 o/w Dalo 10.3 11.1 14.9 18.7 19.0 20.9 23.6 22.2 22.2 23.3 24.4 Copra 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Yaqona 5.0 1.7 1.6 2.2 2.6 3.7 4.2 4.8 4.8 5 5.0 Coconut Oil 3.1 5.9 4.9 3.6 3.5 2.1 4.4 8.2 11 13.1 14.5 Textiles, Yarn &Made up Article 16.9 8.3 6.6 6.3 13.1 9.8 9.6 7.8 6.9 6.7 6.7 Garments 305.2 222.9 243.2 226.4 120.4 94.9 97.1 100.1 90 88.2 88.2 Footwear 22.0 20.7 20.2 19.2 8.5 4.2 2.9 2.1 1.9 1.9 1.9 Mineral Water 24.5 28.8 45.6 52.3 67.9 86.9 105.4 109.9 95 96.9 96.8 Other Domestic Export 139.6 136.0 193.0 178.9 181.9 187.0 222.7 234.9 246.7 259 272 Re- Exports 230.6 258.1 310.9 254.8 345 367.3 381.0 488.2 374.1 413.6 399.2 Total 1221.6 1132.2 1269.2 1205.6 1192.6 1201.5 1209.8 1471.2 1292.6 1368.2 1405.2 156 Table 5: Exports by Major Commodities - Growth Rates (%) 2001-2011 COMMODITIES 2001 2002 2003 2004 2005 2006 2007 2008 2009 (f) 2010(f) 2011 (f) Sugar -5.0 4.1 -3.7 -7.3 6.9 -3.8 -14 34.2 -28.9 -8.1 8.2 Molasses 29.1 0.4 -44.2 39.5 2.8 93.5 -45.7 30.5 -5.7 -2.3 7.1 Gold 22.4 -20.5 12.7 15.7 -32.9 -27.3 -94 927.8 122.7 40.4 22.5 Timber, Cork & Wood Manufacturers -8.9 -1.7 -20.7 36.3 7.2 -16.6 26.9 24.3 15.0 8.0 4.0 Fish 7.8 -15.7 1.3 2.6 1.8 3.4 15.1 32.4 -4.0 5.0 0.0 Fruits & Vegetables 0.4 -7.7 33.6 30.1 -6.7 13.2 8.3 -6.6 3.0 5.0 5.0 o/w Dalo -16.6 7.6 35.2 25.1 1.7 10.1 12.7 -6 0.0 5.0 5.0 Copra 0 0 Yaqona -13.1 -65.3 -9.4 40.8 15.8 43.9 14.3 13.1 0.0 5.0 1.0 Coconut Oil -32.1 140.6 -16 -27.6 -2.2 -38.6 105.8 85.7 34.0 19.8 10.7 Textiles, Yarn &Made up Article -45 -50.6 -21 -4.8 107.9 -22.9 -4.7 -19.3 -11.4 -2.0 0.0 Garments -5.3 -27 9.1 -6.9 -46.8 -21.1 2.3 3.1 -10.2 -2.0 0.0 Footwear -6.3 -5.9 -2.6 -4.6 -55.7 -51.3 -30.2 -28 -7.4 -2.0 0.0 Mineral Water 146.9 17.4 58.4 14.7 29.7 28 21.3 4.3 -13.8 2.0 2.0 Other Domestic Export 3.5 -2.6 42 -7.3 1.7 2.6 19.3 5.5 5.0 5.0 5.0 Re- Exports 45.2 11.9 20.5 -18 35.4 6.5 3.7 28.1 -23.4 10.5 -3.5 Total 5.8 -7.3 12.1 -5 -1.1 0.8 0.7 21.6 -12.1 5.9 2.8 Table 6: Imports By Major Commodities ($million), 2001 - 2011 ECONOMIC CATEGORY 2001 2002 2003 2004 2005 2006 2007 2008 2009 (F) 2010 (F) 2011(f) Food 313.1 314.8 335.2 351.6 355.5 386.0 394.3 520 502.1 536.2 527.1 Beverage & Tobacco 14.8 16.3 17.5 20.4 21.7 22.7 21.6 21.7 21.8 21.8 21.8 Crude Materials 13.7 13.8 16.3 20.2 21.7 32.1 24.5 31 29.4 30.3 31.2 Mineral Fuels 443.5 435.4 463.0 587.0 784.0 1021.5 958.2 1222.1 930.5 1023.6 1074.6 Oil & Fats 16.1 15.4 20.9 15.8 18.1 17.5 24.8 37.0 26.0 27.3 28.7 Chemicals 144.8 147.5 162.8 196.5 206.2 224.1 218.5 274.5 262.1 269.9 278 Manufactured Goods 423.1 384.9 445.5 486.2 452.2 464.1 422.5 460.8 439.5 440.6 447.3 Machinery & Transport Equipment 420.5 429.1 579.4 559.1 591.1 688 568.8 726.5 679 726.6 725.7 Miscellaneous Manufactured Goods 217.9 206.2 236.7 253.5 264 258.3 246 278.6 269.9 274.8 281.7 Other Commodities 9.5 6.6 7.4 11.3 8.3 10 10.9 29.2 11.7 11.8 11.9 Total 2017.0 1790.0 2284.7 2501.6 2722.8 3124.3 2890.1 3601.4 3172.1 3362.8 3428.3 157 Table 7: Imports by Major Comodities- Growth Rates(%) 2001-2011 2010 ECONOMIC CATEGORY 2001 2002 2003 2004 2005 2006 2007 2008 2009 (F) (F) 2011(f) Food 39.1 0.5 6.5 4.9 1.1 8.6 2.2 31.9 -3.4 6.8 -1.7 Beverage & Tobacco 42.3 10.1 7.4 16.6 6.5 4.4 -4.8 0.5 0.5 0.0 0.0 Crude Materials -13.8 0.7 18.1 23.9 7.3 48.1 -23.7 26.5 -5.3 3.0 3.0 Mineral Fuels 33.4 -1.8 6.3 26.8 33.6 30.3 -6.2 27.5 -23.9 10.0 5.0 Oil & Fats 15.8 -4.3 35.7 -24.4 14.7 -3.5 41.7 49.2 -29.7 5.0 5.0 Chemicals 23 1.9 10.4 20.7 4.9 8.7 -2.5 25.6 -4.5 3.0 3.0 Manufactured Goods -14 -9 15.7 9.1 -7 2.6 -9 9.1 -4.6 0.3 1.5 Machinery & Transport Equipment 15.7 2 35 -3.5 5.7 16.4 -17.3 27.7 -6.5 7.0 -0.1 Miscellaneous Manufactured Goods -10.8 -5.4 14.8 7.1 4.1 -2.1 -4.8 13.3 -3.1 1.7 2.6 Other Commodities 35.7 -30.5 12.1 52.7 -26.5 20.5 9.0 167.9 -60 1.0 1.0 Total 10.7 -2.3 16 9.5 8.8 14.7 -7.5 24.6 -11.9 6.0 1.9 Table 9: Real GDP Growth Rates, Foreign Reserves, Interest Rates, and Government Revenue, Expenditures and Debt 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Real GDP Growth % 1.9 3.2 0.9 5.5 0.6 3.4 -6.6 0.2 -0.7 2.0 1.6 Inflation % 4.3 0.8 4.2 3.3 2.7 3.1 4.3 6.6 9.5 2 2.5 Reserves: months of cover 846.0 902 .1 943.6 786.2 549.1 515.4 804.6 558.7 720.0(July) - goods & services - goods Interest Rates % 7.96 - Lending Rate 8.19 7.89 7.39 7.03 6.63 7.9 8.46 7.72 (June) 0.76 - Savings Deposit Rate 0.78 0.57 0.45 0.36 0.40 0.84 0.64 0.64 (June) - Time Deposit Rate 2.43 2.17 1.70 1.77 2.03 9.05 4.45 3.00 4.94(June) - RBF Note Rate 1.25 1.25 1.19 1.75 2.25 4.25 4.25 - - - Minimum Lending Rate 1.75 1.75 1.75 2.25 2.75 5.25 9.25 6.00 3.00(June) Revenue % of GDP 25.0 25.0 25.0 24.0 25.0 25.0 27.0 24.4 25.5 25.4 25.8 Expenditure % of GDP 30.0 31.0 30.0 28.0 29.0 38.0 29.027.7 25.9 28.7 24.7 23.2 Operating/Capital Ratio 81/19 79/21 80/20 83/17 83/17 85/15 86/14 82/18 80/20 86/14 87/13 Net budget deficit %(actual) -6.0 -6.0 -6.0 -3.0 -3.0 -3.0 -2.0 -2.0 Net deficit % (planned) 5.0 -6.0 -4.0 -3.0 -3.0 -4.0 -2.0 -2.0 - 3.0 - 2.0 -1.0 Debt as a % of GDP 45.0 47.0 49.0 48.0 49.0 52.2 50.3 47.9 48 47 46 158 Table 10: Actual and Budgeted Expenditure (VAT inclusive), 2001-2011 Year Budget ($000) Revised ($000) Actual ($000) 2001 1,096,847.50 1,134,051.00 1,132,872.2 2002 1,255,497.20 1,273,251.00 1,260,961.7 2003 1,294,995.50 1,325,166.10 1,322,211.1 2004 1,313,300.40 1,364,178.00 1,322,568.2 2005 1,424,484.20 1,434,526.20 1,390,436.2 2006 1,548,662.90 1,548,662.90 1,558,510.0 2007 1,710,842.60 1,572,369.90 1,504,071.7 2008 1,527,907.00 1,527,907.00 2009 1,715,225.40 2010 1,548,612.60 2011 1,523,731.60 Table 11: Government Expenditure on Key Priorities, 2001-2011 Infrastructure Health Education Year $M % of Total $M % of Total $M % of Total 2001 147.01 13% 107.9 10% 203.25 18% 2002 196.09 16% 124.2 10% 224.13 18% 2003 198.41 15% 129.86 10% 243.33 18% 2004 185.24 14% 125.84 10% 267.85 20% 2005 183.66 13% 126.59 9% 279.49 19% 2006 209.28 14% 131.31 9% 277.36 18% 2007 185.35 12% 174.71 12% 311.82 21% 2008 244.08 166.55 304.94 2009 301.73 179.51 278.41 2010 205.09 179.70 279.17 2011 201.43 179.01 279.17 Table 12: Direct and Indirect Tax Concessions, 2001- 2011 2002 2003 2004 2005 2006 2007 2008 Total Direct Tax Concession 93.1 33.6 36.1 54.4 61.7 27.3 28.4 Total Indirect Tax Concession 92 133.4 110.7 112.8 110 96.2 153.4 Total Concessions 185.1 167 146.8 167.2 171.7 123.5 181.8 Total Concessions as % of GDP 4.6 3.8 3.1 3.4 3.1 2.3 3.1 GDP at Market Price ($M) 4026.4 4382.7 4719.5 4969.7 5455.7 5263.6 5895.9 159 Table 13: Gross Domestic Product at Constant 1995 Prices, 2001-2011 GDP at Constant prices, 2001-2011 Year GDP @ constant 1995 prices ($000) Growth Rates% 2001 2,688,595 1.9 2002 2,774,544 3.2 2003 2,800,111 0.9 2004 2,953,223 5.5 2005 2,971,624 0.6 2006 3,072,959 3.4 2007 2,871,047 -6.6 2008 2,877,904 0.2 2009 2,869,689 -0.3 2010 2,922,254 1.8 2011 2,967,626 1.6 Table 14 Gross Domestic Product at Current Factor Cost, 2001-2011 GDP at Current Factor Cost, 2001-2011 Year GDP -@current factor cost($000) Growth Rates% 2001 3293817 5.0 2002 3480687 5.7 2003 3688992 6.0 2004 3982232 7.9 2005 4212025 5.8 2006 4629140 9.9 2007 4555356 -1.6 2008 4940874 8.5 2009 5011089 1.4 2010 5258062 4.9 2011 5501138 4.6 Table 15 Gross Domestic Product at Current Prices, 2001-2011 GDP at Current market prices , 2001-2011 Year GDP- market price ($000) Growth rates % 2001 3777204 5.4 2002 4026442 6.6 2003 4382661 8.8 2004 4719513 7.7 2005 4969692 5.3 2006 5455711 9.8 2007 5263607 -3.5 2008 5895945 8.5 2009 5979733 1.4 2010 6274445 4.9 2011 6564508 4.6 160

Appendix 2 Millennium Development Goals (MDGs) Goals and Targets* Indicators for monitoring progress** (from the Millennium Declaration) Goal 1: Eradicate extreme poverty and hunger Target 1: Halve, between 1990 and 2015, the proportion of 1. Proportion of population below $1 (PPP) per day11 people whose income is less than one dollar a day 2. Poverty gap ratio 3. Share of poorest quintile in national consumption Achieve full and productive employment and decent work for Growth rate of GDP per person employed all, including women and young people Employment-to-population ratio Proportion of employed people living below $1 (PPP) per day Proportion of own account and contributing family workers in total employment Target 2: Halve, between 1990 and 2015, the proportion of 4. Prevalence of underweight children under-five years of age people who suffer from hunger 5. Proportion of population below minimum level of dietary energy consumption Goal 2: Achieve universal primary education Target 3: Ensure that, by 2015, children everywhere, boys and 6. Net enrolment ratio in primary education girls alike, will be able to complete a full course of primary 7. Proportion of pupils starting grade 1 who reach last grade of schooling primary** 8. Literacy rate of 15-24 year-olds, women and men** Goal 3: Promote gender equality and empower women Target 4: Eliminate gender disparity in primary and secondary 9. Ratios of girls to boys in primary, secondary and tertiary education, preferably by 2005, and in all levels of education no education later than 2015 10. (dropped)12 11. Share of women in wage employment in the non-agricultural sector 12. Proportion of seats held by women in national parliament Goal 4: Reduce child mortality Target 5: Reduce by two-thirds, between 1990 and 2015, the 13. Under-five mortality rate under-five mortality rate 14. Infant mortality rate 15. Proportion of 1 year-old children immunised against measles Goal 5: Improve maternal health Target 6: Reduce by three-quarters, between 1990 and 2015, 16. Maternal mortality ratio the maternal mortality ratio 17. Proportion of births attended by skilled health personnel 19c. Contraceptive prevalence rate13 Achieve, by 2015, universal access to reproductive health Adolescent birth rate Antenatal care coverage (at least one visit and at least four visits) Unmet need for family planning Goal 6: Combat HIV/AIDS, malaria and other diseases Target 7: Have halted by 2015 and begun to reverse the spread 18. HIV prevalence among population aged 15-24 years of HIV/AIDS 19a. Condom use at last high-risk sex 19b. Proportion of population aged 15-24 years with comprehensive correct knowledge of HIV/AIDS 20. Ratio of school attendance of orphans to school attendance of non-orphans aged 10-14 years 11 For monitoring country poverty trends, indicators based on national poverty lines should be used, where available. 12 Previously: “Ratio of literate women to men, 15-24 years old”. 13 Moved from Goal 6. 161 Goals and Targets* Indicators for monitoring progress** (from the Millennium Declaration) Achieve, by 2010, universal access to treatment for HIV/AIDS Proportion of population with advanced HIV infection with access for all those who need it to antiretroviral drugs Target 8: Have halted by 2015 and begun to reverse the 21. Incidence** and death rates associated with malaria incidence of malaria and other major diseases 22. Proportion of children under 5 sleeping under insecticide-treated bednets and Proportion of children under 5 with fever who are treated with appropriate anti-malarial drugs** 23. Incidence**, prevalence and death rates associated with tuberculosis 24. Proportion of tuberculosis cases detected and cured under directly observed treatment short course Goal 7: Ensure environmental sustainability Target 9: Integrate the principles of sustainable development 25. Proportion of land area covered by forest into country policies and programmes and reverse the loss of 27. (dropped)14 environmental resources 28. CO2 emissions, total, per capita and per $1 GDP (PPP), and consumption of ozone-depleting substances** 29. (dropped)15 Proportion of fish stocks within safe biological limits Proportion of total water resources used Reduce biodiversity loss, achieving, by 2010, a significant 26. Proportion of terrestrial and marine areas protected** reduction in the rate of loss Proportion of species threatened with extinction Target 10: Halve, by 2015, the proportion of people without 30. Proportion of population using an improved drinking water sustainable access to safe drinking water and basic sanitation source** 31. Proportion of population using an improved sanitation facility** Target 11: By 2020, to have achieved a significant improvement 32. Proportion of urban population living in slums16** in the lives of at least 100 million slum dwellers Goal 8: Develop a global partnership for development Target 12: Develop further an open, rule-based, predictable, Some of the indicators listed below are monitored separately for the non-discriminatory trading and financial system least developed countries (LDCs), Africa, landlocked developing countries and small island developing States. Includes a commitment to good governance, development and Official development assistance (ODA) poverty reduction – both nationally and internationally 33. Net ODA, total and to the least developed countries, as percentage of OECD/DAC donors’ gross national income Target 13: Address the special needs of the least developed 34. Proportion of total bilateral, sector-allocable ODA of OECD/DAC countries donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation) Includes: tariff and quota free access for the least developed 35. Proportion of bilateral official development assistance of countries' exports; enhanced programme of debt relief for OECD/DAC donors that is untied heavily indebted poor countries (HIPC) and cancellation of 36. ODA received in landlocked developing countries as a official bilateral debt; and more generous ODA for countries proportion of their gross national incomes committed to poverty reduction 37. ODA received in small island developing States as a proportion of their gross national incomes Market access Target 14: Address the special needs of landlocked developing 14 Previously: “Energy use (kg oil equivalent) per $1 GDP (PPP)”. 15 Previously: “Proportion of population using solid fuels”. 16 The actual proportion of people living in slums is measured by a proxy, represented by the urban population living in households with at least one of the four characteristics: (a) lack of access to improved water supply; (b) lack of access to improved sanitation; (c) overcrowding (3 or more persons per room); and (d) dwellings made of non-durable material. 162 Goals and Targets* Indicators for monitoring progress** (from the Millennium Declaration) countries and small island developing States (through the 38. Proportion of total developed country imports (by value and Programme of Action for the Sustainable Development of Small excluding arms) from developing countries and least developed Island Developing States and the outcome of the twenty- countries, admitted free of duty second special session of the General Assembly) 39. Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries Target 15: Deal comprehensively with the debt problems of 40. Agricultural support estimate for OECD countries as a developing countries through national and international percentage of their gross domestic product measures in order to make debt sustainable in the long term 41. Proportion of ODA provided to help build trade capacity Debt sustainability 42. Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) 43. Debt relief committed under HIPC and MDRI** Initiatives 44. Debt service as a percentage of exports of goods and services Target 16: replaced by new target in Goal 1 45. (Replaced by new indicators in Goal 1)17 Target 17: In cooperation with pharmaceutical companies, 46. Proportion of population with access to affordable essential provide access to affordable essential drugs in developing drugs on a sustainable basis countries arget 18: In cooperation with the private sector, make available 47a. Telephone lines per 100 population ** the benefits of new technologies, especially information and 47b. Cellular subscribers per 100 population** communications 48. Internet users per 100 population** * The numbering of the targets and indicators will be undertaken through the inter-agency process of the Inter-agency and Expert Group on MDG Indicators. ** The language has been modified for technical reasons, so that the data can be more clearly reflected. 17 Previously: “Unemployment rate of young people aged 15-24 years, each sex and total”. 163