Structural Adjustment in Fiji under the Interim Government, 1987-1992

Abstract

This article critically assesses the success of market-led structural adjustment in Fiji. After reviewing the rationale behind structural adjustment programs it examines the economic policies of Fiji’s Interim Government between 1987 and 1992, demonstrating that such policies were both consistent with structural adjustment and represented confirmation of a change in economic policy. The economic performance of Fiji under structural adjustment is examined. However, in delving behind the data the article uncovers both supply and demand constraints that together suggest an inability to resolve major structural issues facing the economy. As a consequence, the capacity of the economy to respond to the changed framework of incentives brought about by structural adjustment is inhibited. Market-led structural adjustment has not acted to remove key limitations to economic growth in Fiji.