Fiji (12/03)For the most current version of this Note, see Background Notes A-Z. PROFILE OFFICIAL NAME: Geography People *The term "Fijian" has exclusively ethnic connotations and should not be used to describe any thing or person not of indigenous Fijian descent. Government Economy GEOGRAPHY Heavy rains--up to 304 cm. (120 in.) annually--fall on the windward (southeastern) side, covering these sections of the islands with dense tropical forest. Lowlands on the western portions of each of the main islands are sheltered by the mountains and have a well-marked dry season favorable to crops such as sugarcane. PEOPLE Indigenous Fijians are a mixture of Polynesian and Melanesian, resulting from the original migrations to the South Pacific many centuries ago. The Indo-Fijian population has grown rapidly from the 60,000 indentured laborers brought from India between 1879 and 1916 to work in the sugarcane fields. Thousands more Indians migrated voluntarily in the 1920s and 1930s and formed the core of Fiji's business class. The native Fijians live throughout the country, while the Indo-Fijians reside primarily near the urban centers and in the cane-producing areas of the two main islands. Nearly all of the indigenous Fijians are Christian; more than three-quarters are Methodist. Approximately 80% of the Indo-Fijians are Hindu, 15% are Muslim, and most of the rest are Sikh, while a few are Christian. Some Indo-Fijians have been displaced by the expiration of land leases in cane-producing areas and have moved into urban centers in pursuit of jobs. Similarly, a number of indigenous Fijians have moved into urban areas, especially Suva, in search of a better life. Meanwhile, the Indo-Fijian population has declined due to emigration and a declining birth rate. Indo-Fijians currently constitute 40% of the total population, down from over 50% in the 1940s. However, Indo-Fijians dominate the professions and commerce. HISTORY The pattern of colonialism in Fiji during the following century was similar to that in many other British possessions: the pacification of the countryside, the spread of plantation agriculture, and the introduction of Indian indentured labor. Many traditional institutions, including the system of communal land ownership, were maintained. Fiji soldiers fought alongside the Allies in the Second World War, gaining a fine reputation in the tough Solomon Islands campaign. The United States and other Allied countries maintained military installations in Fiji during the war, but Fiji itself never came under attack. In April 1970, a constitutional conference in London agreed that Fiji should become a fully sovereign and independent nation within the Commonwealth. Fiji became independent on October 10, 1970. Post-independence politics came to be dominated by the Alliance Party of Ratu Sir Kamisese Mara. The Indian-led opposition won a majority of House seats in 1977, but failed to form a government out of concern that indigenous Fijians would not accept Indo-Fijian leadership. In April 1987, a coalition led by Dr. Timoci Bavadra, an ethnic Fijian supported by the Indo-Fijian community, won the general election and formed Fiji's first majority Indian government, with Dr. Bavadra serving as Prime Minister. Less than a month later, Dr. Bavadra was forcibly removed from power during a military coup led by Lt. Col. Sitiveni Rabuka on May 14, 1987. After a period of deadlocked negotiations, Rabuka staged a second coup on September 25, 1987. The military government revoked the constitution and declared Fiji a republic on October 10. This action, coupled with protests by the Government of India, led to Fiji's expulsion from the Commonwealth of Nations and official nonrecognition of the Rabuka regime from foreign governments, including Australia and New Zealand. On December 6, Rabuka resigned as head of state and Governor General Ratu Sir Penaia Ganilau was appointed the first President of the Fijian Republic. Mara was reappointed Prime Minister, and Rabuka became Minister of Home Affairs. The new government drafted a new Constitution that went into force in July 1990. Under its terms, majorities were reserved for ethnic Fijians in both houses of the legislature. Previously, in 1989, the government had released statistical information showing that for the first time since 1946, ethnic Fijians were a majority of the population. More than 12,000 Indo-Fijians and other minorities had left the country in the 2 years following the 1987 coups. After resigning from the military, Rabuka became prime minister under the new constitution in 1993. Tensions simmered in 1995-96 over the renewal of land leases and political maneuvering surrounding the mandated 7-year review of the 1990 constitution. The Constitutional Review Commission produced a draft constitution that expanded the size of the legislature, lowered the proportion of seats reserved by ethnic group, and reserved the presidency for ethnic Fijians, but opened the position of prime minister to all races. Prime Minister Rabuka and President Mara supported the proposal, while the nationalist indigenous Fijian parties opposed it. The reformed constitution was approved in July 1997. Fiji was readmitted to the Commonwealth in October. The first legislative elections held under the new constitution took place in May 1999. Rabuka's coalition was defeated by the Fiji Labor Party, which formed a coalition, led by Mahendra Chaudhry, with two small Fijian parties. Chaudhry became Fiji's first Indo-Fijian prime minister. One year later, in May 2000, Chaudhry and most other members of parliament were taken hostage in the House of Representatives by gunmen led by ethnic Fijian nationalist George Speight. The standoff dragged on for 8 weeks--during which time Chaudhry was removed from office by the then-president due to his incapacitation. The Republic of Fiji military forces then seized power and brokered a negotiated end to the situation. Speight was later arrested when he violated its terms. In February 2002, Speight was convicted of treason and is currently serving a life sentence. Former banker Laisenia Qarase was named interim prime minister and head of the interim civilian administration by the military and Great Council of Chiefs in July. The Supreme Court reaffirmed the validity of the Constitution and ordered the Chaudhry government returned to power in March 2001, after which the President dissolved the Parliament elected in 2000 and appointed Qarase head of a caretaker government until elections could be held in August. Qarase's newly formed Soqosoqo Duavata ni Lewenivanua (SDL) party won the elections. The SDL declined to include the largely Indo-Fijian Fiji Labor Party (FLP) in the Cabinet on a legal technicality. The 1997 Constitution states that any party receiving 10% or more of the seats in Parliament must be given an opportunity to be represented in the Cabinet in proportion to its numbers in the House of Representatives. Fiji's Supreme Court is expected to rule on the make up of the Cabinet in 2004. GOVERNMENT Fiji maintains an independent judiciary consisting of a Supreme Court, a Court of Appeals, a High Court, and magistrate courts. The judiciary remained independent through the coups and the consequent absence of an elected government. All but one of the five judges on the Supreme Court also is a serving judge in Australia or New Zealand. There are four administrative divisions--central, eastern, northern and western--each under the charge of a commissioner. Ethnic Fijians have their own administration in which councils preside over a hierarchy of provinces, districts, and villages. The councils deal with all matters affecting ethnic Fijians. The Great Council of Chiefs (Bose Levu Vakaturaga) is made up of 55 hereditary chiefs, most of whom are nominated to the Council by their respective provincial councils. It is established under the Fijian Affairs Act and recognized by the constitution. Principal Government Officials Fiji maintains an embassy at Suite 240, 2233 Wisconsin Avenue NW, Washington, DC 20007 (tel: 202-337-8320). POLITICAL CONDITIONS One of the main issues of contention is land tenure. Indigenous Fijian communities very closely identify themselves with their land. In 1909 the land ownership pattern was frozen by the British and further sales prohibited. Today more than 80% of the land is held by indigenous Fijians, under the collective ownership of the traditional Fijian clans. Indo-Fijians produce more than 75% of the sugar crop but, in most cases, must lease the land they work from its ethnic Fijian owners instead of being able to buy it outright. The long-term leases provided for under the 1976 Agricultural Landlord and Tenants Act (ALTA) began to expire in the late 1990s, and some indigenous landowners have declined to renew the leases of their land to others. Many displaced Indo-Fijian farmers are moving to urban centers to look for jobs, and some land is falling out of production. The continued impasse over ALTA is adversely affecting the sugar industry. The Indo-Fijian parties' major voting bloc is made up of sugarcane farmers, and the farmers' main tool of influence has been their ability to galvanize widespread boycotts of the sugar industry, thereby crippling the economy. Prime Minister Qarase and FLP leader (and former Prime Minister) Mahendra Chaudhry have resumed dialogue on critical issues affecting the country, including the ALTA. Mounting pressure from nearly every sector of the community is forcing these leaders to put aside their personal differences and work for the betterment of the country. The next parliamentary elections are not due until 2006, although the government could call a "snap" election before then. ECONOMY Tourism has expanded rapidly since the early 1980s and is the leading economic activity in the islands. Nearly 400,000 people visited Fiji in 2002, excluding cruise ship passengers. About one-third came from Australia, with large contingents also coming from New Zealand, the United States, the United Kingdom, and Japan. More than 58,000 of the tourists were American, a number that has steadily increased since the start of regularly scheduled nonstop air service from Los Angeles. The number of U.S. tourists declined somewhat in the wake of September 11, but Fiji experienced a record number of visitors in February 2002. In 2002, Fiji's gross earnings from tourism were about $330 million, an amount exceeding the revenue from its two largest goods exports (sugar and garments). Gross earnings from tourism continue to be Fiji's major source of foreign currency. Fiji runs a persistently large trade deficit, although its tourism revenue yields a services surplus, which keeps the current account of its balance of payments roughly in balance. Australia accounts for between 35% and 45% of Fiji's trade, with New Zealand, the United States, the United Kingdom, and Japan varying year-by-year between 5% and 15% each. Fiji's two largest exports are sugar and garments, which each accounted for about one-quarter of export revenue in 2002--roughly $130 million each. The potential collapse of Fiji's sugar industry, due to quality concerns, poor administration, and the phasing out of a preferential price agreement with the European Union in 2007, also poses a major threat to Fiji's already uncertain economic well-being. The Fijian garment industry has developed rapidly since the introduction of tax exemptions in 1988. The industry's output has increased nearly ten-fold since that time, but the lower labor costs of Chinese competitors and the softening of a trade preference agreement with Australia have resulted in largescale closures of garment factories in the country. Other important export crops include coconuts and ginger, although production levels of both are declining. Fiji has extensive timber reserves, but forestry has become important as an export trade only since the mid-1980s. Fishing is important as an export sector and for domestic consumption. In the mining and manufacturing sectors, gold and silver are exported. A major expansion of production at the Emperor Mine at Uatakoula is planned for 2004. The most important manufacturing activities are the processing of sugar and fish. Since 2000 the export of still mineral water, mainly to the United States, has expanded rapidly. By mid-2003, it was more than $40 million per year. Since the 1960s, Fiji has had a high rate of emigration, particularly of Indo-Fijians in search of better economic opportunities. This has been particularly true of persons with education and skills. The economic and political uncertainty following the 1987 and 2000 coups added to the outward flow by persons of all ethnic groups. In recent years, indigenous Fijians also have begun to emigrate in large numbers, often to seek employment as home health care workers. Unemployment is high, and wages are very low. Advertised white-collar job openings often attract hundreds of applicants, many of whom are well-qualified. More than 200,000 people, about 25% of the total population, participated in the U.S. 2002 Diversity Visa program, which awards U.S. immigrant visas through a lottery draw system. Other long-term economic problems include low investment rates and uncertain property rights. Investment laws are being reviewed to make them more business-friendly, including a relaxation of work permit requirements. Investor confidence in Fiji dropped significantly due to the recurrence of political instability in 2000. However, in April 2002, Moody's Investor's Service upgraded its Ba2 sovereign rating of Fiji from negative to stable, noting that despite continuing domestic political uncertainties, the country's external financial position had weathered the past 2 year's volatility without significant deterioration. External liquidity remained adequate. FOREIGN RELATIONS Since independence, Fiji has been a leader in the South Pacific region. Fiji is host for the secretariat of the 16 nation-Pacific Islands Forum, as well as a number of other prestigious regional organizations. Fiji hosted the Forum's annual summit in 2002 at which the Nasonini Declaration against terrorism was adopted. In 2002, Fiji also hosted the Africa, Caribbean and Pacific (ACP) Summit with more than 80 countries represented. During the ACP Summit, the Nadi Declaration was adopted regarding economic cooperation with the European Union. In July 2003, Fiji hosted the South Pacific Games, a prestigious event that went far beyond athletics and symbolized the country's return to normalcy. Over the years, other Pacific Island governments have generally been sympathetic to Fiji's internal political problems and have declined to take public positions. Fiji became the 127th member of the United Nations on October 13, 1970, and participates actively in the organization. Fiji's contributions to UN peacekeeping are unique for a nation of its size. It maintains about 550 soldiers overseas in peacekeeping missions, mainly with MFO Sinai in the Middle East and the United Nations in East Timor. Fiji is considering contributing a unit of peacekeeping troops to the U.S.-led effort in post-war Iraq for deployment in late-2003. U.S.-FIJI RELATIONS Principal U.S. Officials The U.S. Embassy in Fiji is located at 31 Loftus Street, Suva; tel: 679-331-4466, fax: 679-330-0081. The mailing address is U.S. Embassy, P.O. Box 218, Suva, Fiji. For the most current version of this Note, see Background Notes A-Z. |