Capital: Suva
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Introduction Fiji is one of the most developed of the independent countries of the Pacific. Due to its geographical location and the quality of its infrastructure, it plays the role of administrative centre for the region, hosting the headquarters of several regional organisations such as the Forum Secretariat and the University of the South Pacific. Maintaining political stability amid competing ethnic and social agendas is a key challenge for a democratic Fiji. Since independence in 1970 the nation has been subject to coups in 1987, 2000 and again in 2006.
Issues
History The Fijian islands were settled by two waves of migrants. Polynesians from South East Asia made up the first wave around 3,500 years ago while the second wave of Melanesian migrants came 2,500 years ago. Tribal chiefs controlled the islands until 1874 when they ceded their control to Great Britain. The British introduced a system of administration to protect the indigenous Fijian and ownership of land, which prevented indigenous Fijians from working on the European-owned sugar cane plantations. Instead, labourers from India were brought in to work on the plantations and by the end of the 20th century the growing Indo-Fijian population became a source of tension with the Indigenous Fijians. After Fiji gained independence on October 10, 1970, a new constitution was drawn that entrenched racial separation by providing separate electoral rolls for each ethnic group. Political parties were essentially organised along racial lines. In April 1987 a new coalition government with a multi-racial cabinet was elected but four weeks later a coup was staged and the 1970 constitution was suspended. A second coup took place in September 1987. In 1997, a new constitution was approved. Its purpose was to secure the interests of indigenous Fijians without discriminating against the Indo-Fijians. The first election under that constitution was held in May 1999, and the Labour Party won. The party's leader, Mahendra Chaudhry, was appointed prime minister - the first Indo-Fijian to occupy the position. In May 2000 Mr Chaudhry and his cabinet were taken hostage for 56 days by a group of disgruntled indigenous Fijians led by failed local businessman George Speight, who called for a new constitution to give indigenous Fijians political supremacy. In light of growing international and domestic pressure, Speight and his men were arrested. Speight pleaded guilty to treason and was sentenced to death, but the sentence was commuted to life imprisonment. An election was called in August 2001 after the Fiji High Court and Court of Appeal ruled that the 1997 constitution was the supreme law of the land. The SDL, the party of the interim prime minister Laisenia Qarase, won the biggest number of seats and formed government. The Fijian Labour Party (FLP) won 28 seats but was excluded from power. The FLP challenged its exclusion, saying it was unconstitutional. The High Court and Court of Appeal upheld the FLP's position but a power sharing agreement could not be reached by the two parties, and in November 2004 Mr Chaudhry announced his party would assume the role of official Opposition. Laisenia Qarase's SDL government was returned to office with a narrow majority after elections in May 2006. He appointed several members of the Fiji Labor Party to cabinet, under a requirement of Fiji's constitution in which the make-up of the cabinet is to be directly proportionate to the share of votes. Fiji's military staged the country's fourth coup on December 5, 2006. The head of the military, Commodore Frank Bainimarama, claimed Mr Qarase's government was corrupt. In the lead up to the takeover, Commodore Bainimarama gave the prime minister a series of ultimatums to clean up the government or be ousted from power. The government agreed to some of the military chief's demands, including suspending three pieces of legislation. However, the military chief said the concessions did not go far enough. Government Fiji had been operating as a parliamentary democracy until a military coup on December 5, 2006 ousted the democratically-elected government of the prime minister, Laisenia Qarase. The military chief, Commodore Frank Bainimarama, dissolved parliament and declared himself president. He then handed the presidency back to Ratu Josefa Illoilo in early January 2007. Commodore Bainimarama then appointed himself interim prime minister, while continuing to lead the military. The interim government formed by Commodore Bainimarama is set to remain in power until elections are held. Fiji's Great Council of Chiefs - the country's highest assembly of traditional chiefs - has given its support to the caretaker government after previously condemning the military takeover. Economy Sugar is still Fiji's largest industry. Sugar cane is grown on small farms leased by predominantly Indo-Fijians from indigenous Fijian landowners. The industry has been in decline in recent years and that is expected to continue. The European Union buys Fijian sugar at heavily subsidised prices, but under a World Trade Organisation stipulation, it will not be allowed to do that after 2008. Tourism is another big source of revenue and contributes about 20 per cent GDP. However, the May 2000 coup had a negative effect on tourist numbers. The garment trade was established in the late 1980s to take advantage of a preferential trade agreement between Australia and Fiji. Up until 2000, the industry grew by 10 per cent a year. But because of political instability and a drop in demand, the industry is now in decline. Gold production is a small but important sector of Fiji's economy. However, mining output has declined in recent years, reflecting a fall in gold production. Remittances from Fijians living in other countries have quadrupled since 1994 and are now Fiji's fourth largest source of foreign exchange. |
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