Foreign investment facts

The facts) show 2006 was our best year ever for foreign investment as % of GDP

The Fiji Sun has dared to publish a few selected facts about foreign investment. It fell from US$341 million in 2008 to US$ 164 million in 2009 and then, after some recovery, FDI in 2013 was US$272 million. What the Fiji Sun doesn’t dare say is that 2006 was the highest ever year for foreign investment in Fiji. The Qarase mutli-party government is the only truly representative government we’ve ever had and foreign investors were inspired, thinking this must mean the end of coups. How wrong they were. Since then foreign investment has not only fallen, it’s also been limited mostly to Chinese investment bent on plundering our natural resources. The Fiji Sun quotes some interesting points from a UN Report on foreign investment. It dismisses the sort of sweetheart deals offered by Bainimarama to his Chinese friends and says “What is needed is assurance of stability, enforcement of property rights and contractual obligations and quick legal remedies”.  In other words dictatorship with a stacked court system are the last thing we need.

One Response to “Foreign investment facts”

  1. tota Says:

    The analysis is good but the author used US$ in the analysis to hide the few important points. So let me clarify:

    1. The use of US$ is intentional so as to show the 2006 data looks better. This is given as the F$ was devalued in 2009. If the ratio uses the F$ ratio, it difference isn’t that material;

    2. The use of ratio os GDP means that hides the true picture in value terms. If we use absolute number in F$ terms, it will show fDI actually rose as the GDP in 2012 is more than $1 billion more than in 2006;

    3. The govt was able to achieve a reasonable high level of FDI in 2012, higher in F$ term in fact when international agencies did not support Fiji. Imagine what would happen after elections.

    4. The author must acknowldge that overall investment in 2013 was above the 25% target that was not achieved in 2006.

    5. Finally, the author should acknowledge that confidence by the private sector is mush higher now than in 2006.

    6. The author chooses to ignoe the 2013 data as FDI was even higher.

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