Cogito, ergo sum. I think, therefore I am. (René Descartes, mathematician and philosopher,1599-1650)

Monday 23 February 2009

(o) Chaudhry, the FLP, Sugar, the Economy, and the Interim Government.

Rumours circulating during the week, heightened by a meeting with Bainimarama, had Mahendra Chaudhry returning to the Interim Government as Minister of Finance and Sugar, possibly accompanied by other FLP members. This prospect, however, may be judged premature if discussion at the FLP national committee meeting at Nadi are any indication.

The meeting was critical of Government's "commercial" decision to dissolve the Sugar Commission, Sugar Marketing Ltd and the Sugar Research Institute, transferring their responsibilities to the Fiji Sugar Corporation (FSC). Chaudhry thought FSC dominance could marginalise the growers to whom 70% of sugar proceeds belonged, stating that the Sugar Cane Growers Council (SCGC) should play the lead role in marketing sugar. He called on Government to hasten the completion of the sugar industry reform and restructure programme, and to invest heavily in the natural resources sector to boost exports and create much needed employment.

The Party also cautioned Government against letting "vested interests" dictate its economic policies, following comments by Reserve Bank governor Savenaca Narube about rapidly declining foreign reserve levels, falling exports, tight liquidity and escalating interest rates.

Chaudhry compared this situation (brought on, in part, by the RBF's relaxed monetary controls and the consequent outflow of local funds), with "six months ago when foreign reserves stood at $910 million, liquidity was flush, interest rates low, investment levels rising, exports upped 33% compared to 2006 and debt level brought down to 45% of GDP from a high of 53% under the Laisenia Qarase-led government."

Astute politician that he is, Chaudhry may decide to keep his distance from the Interim Government until he is clearer on which way the political cookie will crumble after next month's President's Political Dialogue Forum. But then, being Chaudhry, he may not. Condensed, with added comments, from the Fiji Times.

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