Macroeconomic policy and poverty in Fiji

Abstract

Fiji is generally considered to have a fairly equitable income distribution. Unlike other countries in Asia, Africa and Latin America, poverty is not considered to be a major problem. However, given Fiji?s poor economic performance in the last two decades, this notion of Fiji is increasingly being questioned. This study investigates the relationship between macroeconomic policy and poverty in Fiji, using data from two household income and expenditure surveys (1977 and 1990/91) combined with macroeconomic data. The results suggest that overall, poverty has increased as the government?s macroeconomic policy regime has deteriorated. There has been a differential impact on poverty in that the urban poor have become poorer, while the rural poor are no better off.