The Fiji government’s 2008 ‘budget for hope’ rests on some
fundamental assumptions: political stability, the recovery of key
sectors of the economy from the effects of the 2006 coup, as well
as the recovery of the tourism industry, an industry which in the
past has been resilient to coups. With 34 per cent of the population
already living below the poverty line, low economic growth could
push significantly more people into poverty. If the increases in
global food and fuel prices persist, creating even more difficulties
for the poor, the prospect of social instability could heighten. In the
absence of the expected recovery of these key sectors and the loss of
skilled workers, achieving economic and social recovery will require
political consensus to resolve the political impasse that has gripped
the country. The Interim Government also needs to revisit its fiscal
austerity package.