The Interim Military Government ( IMG) has put in place immediate short and
medium term measures to cope with the bleak future Fiji faces because of international
sanctions while the hostages continue to be held at Parliament.
The RFMF says in the short term to protect foreign exchange reserves there
will be tighter control over capital, credit ceilings and interest rates, as
well as tough government policies to reduce spending to essentials in order
to stabilize the budget.
In the medium term, it says it will increase the budget for marketing tourism and will communicate directly with major investors. The IMG will also consider major investment projects for improving the tourism infrastructure.
Meanwhile the Interim Military government also said the Fiji Visitors Bureau
and the Fiji Islands Trade and Investment Bureau (FTIB) will play a large role
in maintaining investment initiatives, projects in progress, and
rescue the tourism industry from further deterioration.
These measure were consider by the Macro-Finance Management Unit today at a
meeting with Commodore Frank Bainimarama. A number of bleak prediction were
made if trade sanctions are imposed because of the ongoing crisis.
* Trade embargoes would cause the GDP to fall by 13%, meaning a loss of over
$400 million to the economy.
* If there was a sugar harvest boycott, that figure would soar to a 22% drop
in the GDP, which would increase the deceit another $200 million
* Government revenue will fall by $200 million resulting in huge spending cuts,
job losses, and a drop in services to the public.
* Exports would to suffer a 22% fall and imports a 20% drop.
* Import prices would rise driving inflation up by at least 5%
* Unemployment would increase by 6% or some 7000 people losing their jobs.
That unemployment figure would soar to 20% if the boycott hits the garment industry,
the largest employer in the country, making matters even worse.
Commodore Bainimarama appeals to the public for a concerted national effort
by all of to stop further deterioration of the economy and divisions in society.
This text may have been edited to protect the writer.
This site is best viewed using Netscape 4.0 or higher.
Any problems or kind suggestions, please email: webmaster@lookinglassdesign.com
last revision June 9, 2000