IMF, the Fiji Economy, and Other Stories

Brief Shorts 25.2. 10 

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 Accolades. "The best blogger on Fiji matter is Crosbie Walsh’s".  The blog entered the stratosphere yesterday by passing the 50,000 visitor mark. Click on the Flag feature to see daily totals.

Fourfourpointfive continues its credibility slide.  For several months after it was launched in April last year, the "moderate" anti-government blog was an important source of information on Fiji. Now a pale shadow of its former self, it merely pastes items copied from other sources. In uncritically copying Suliasi Daunitutu's response to Bainimarama's "toilet paper" remarks on his 600,000 petition, it does itself a further disservice because, in the absence of comment -- or reference to others who have questioned Daunitutu's petition "methodology" and the numbers claimed -- publishing the story can only mean the blog has accepted the petition on face value, just as RadioNZ foolishly did before dropping "petition" in favour of  "letters."

Radio Fiji's photo. I find it strange that the RadioFiji web page invariably chooses a photo of PM Bainimarama in military uniform, just like the overseas media that seeks to stress his military role. Bainimaramana  said the lifting of sanctions was the main issue discussed between Ratu Inoke Kubuabola and Murray McCully when they met last week, "Ratu Inoke was doing the talking on Fiji’s behalf." Good. One spokesman. One voice.

The ANZ's Chief Economic Asia Pacific  said Fiji has to look for a long term solution for economic recovery.

IMF Commends and Recommends

The International Monetary Fund is urging Fiji to take more decisive actions to restore macro-economic stability because the economic situation is challenging and downside risks remain high.

On the negative side:

• increased budget pressures, inflation, high level of debt 

On the positive side:

• "commendable efforts" to restrain current spending
• Devaluation has helped reverse the sharp decline in foreign exchange reserves
• The tight monetary policy has helped immediate economic stability.

Recommendations:

• Faster pace of changes
• Further decisive actions on macroeconomic stability and structural reforms to lift growth and ensure debt sustainability over the medium term
• Infrastructure rebuilding needs to be offset by expenditure measures, including civil service reform
• Revenue strengthened by rationalizing tax incentives, improving tax administration and raising excise taxes. 

The Directors urged adherence to the target of reducing central government debt to 45 percent of GDP by 2014.  Fiji this month applied for a $1b loan from the IMF.