Why Fiji is not the “Mauritius” of the Pacific? Lessons for small island nations in the Pacific

Abstract

Purpose

The purpose of this paper is to provide a detailed comparison between Fiji and Mauritius and points out why Fiji which was better than Mauritius in the mid-1980s has fallen behind.

Design/methodology/approach

The paper uses recent literature on why countries fail economically and qualitative analysis and statistical evidence where necessary to compare the two countries.

Findings

During the first decade of independence, Fiji's economy grew at a rate of more than 5 per cent per annum. However, its economic prosperity was disrupted by the military coup in 1987. As a small island nation, Fiji's economic progress has been dismal and this can largely be attributed to the political instability created by the coups. Small island states like Mauritius has had uninterrupted growth rates in the same period and as a result has delivered significant improvement in the quality of life of its people.

Research limitations/implications

Fiji could not become the Mauritius of the Pacific and points due to the lack of political stability and inclusive economic and political institutions.

Social implications

Fiji could improve the quality of life of its people if it addresses the institutional constraint and it can learn from Mauritius.

Originality/value

Comparing Fiji, a small island nation like Mauritius and pointing out clear lessons not only for Fiji but also other small island nations in the Pacific.

Citation

Chand Prasad, B. (2014), "Why Fiji is not the “Mauritius” of the Pacific? Lessons for small island nations in the Pacific", International Journal of Social Economics, Vol. 41 No. 6, pp. 467-481. https://doi.org/10.1108/IJSE-11-2012-0221