Facilitating adjustment to the sugar woes in Fiji

Satish Chand

    Research output: Contribution to journalArticle

    Abstract

    The resolution of problems with lease renewals in Fiji, particularly in the sugarcane districts, has ramifications for private investment and growth in the entire economy. The impending withdrawal of subsidies to sugar as world trade is liberalised has increased the urgency of finding solutions to these problems. This paper draws on game theory to characterise the problems facing the Fiji sugar industry. The incentives for land and ethnic politics are identified. Separate proposals are put forward to facilitate secure access to land and to minimise adjustment costs from the erosion of preferences under the Sugar Protocol. The rationalisation forced upon the sugar industry if managed well, could induce land reforms that could improve the investment climate and the prospects for growth, whilst minimising pains of adjustment.
    Original languageEnglish
    Pages (from-to)87-103
    JournalPacific Economic Bulletin
    Volume20
    Issue number2
    Publication statusPublished - 2005

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