Page 28 - IB Dec 2020

Fiji

Narube with the owners of the 5-Star Nawi Island resort being With market vendors at the Savusavu market
constructed on the Savusavu marina.
UNITY FIJI’S NARUBE PERSISTS

By Joe Yaya imports for their daily living.
“I stood my ground despite the fact other international bod-
Fiji’s next national election may be some time off, but po- ies were calling for devaluation as a way to boost economic
litical leaders of all persuasions have been meeting constitu- activity.”
ents across the country in recent months. Joe Yaya caught A month after the 1997 Constitution was abolished, Narube
up with Unity Fiji leader, Savenaca Narube in Fiji’s north was sacked from the RBF since his appointment was sanc-
recently. tioned by that Constitution.
Unity Fiji leader, Savenaca Narube believes an alternative The same week he left, the RBF devalued the currency by
leadership is what the people of Fiji are calling for, and more 20%.
urgently, what the country needs at this time. Fiji’s national debt currently stands at over 80% of GDP, with
“You may have a good party, the best lineup in Fiji, but if the government budget delivered in August projecting a net
you have a leader that doesn’t have the capacity to lead the deficit of F$2 billion (US$0.97b), total revenue of F$1.7 billion
country, then what’s that?” (US$.82b) and total expenditure of F$3.7 billion(US$1.79b).
Narube unsuccessfully took Unity Fiji to the polls for the Narube predicts the government will borrow another F$2
first time in 2018, following a long and distinguished career billion in the 2021 financial year because of revenue short-
with the Ministry of Finance and Reserve Bank that abruptly falls.
ended in 2009. While moving up the hierarchy in the bank, The Unity Fiji leader contends that the major limitation of
Narube undertook attachments with the World Bank in Wash- the current government is that it lacks anyone with adequate
ington DC. He also spent a few years at the IMF, and today financial knowledge and experience to manage government’s
consults for the Asian Development Bank. coffers.
Four days before the May 2000 coup, he was appointed “You cannot politicise money for too long. You’ll hit the cliff
governor of the RBF. The upheavals of 2000 tested Narube’s and that’s exactly where we are going.
ability and competence to handle the country’s finances dur- “So we need a good person with skills and experience in this
ing those tumultuous times. area.”
“I’m happy to say looking back that the measures imple- He says more troubling is the fact government is not creat-
mented both on the public financial side and the foreign ing the environment for private sector to flourish.
reserves side were quite successful.” “You cannot build an economy on government expenses. To
When Bainimarama executed his military coup in Decem- a certain extent you can build infrastructure, but you must
ber 2006, the economy was again in jeopardy. A three-year build growth through the private sector.
standoff between the ousted Prime Minister, Laisenia Qarase “And the climate for private sector growth in Fiji is not very
and Bainimarama took a toll on the economy, with investor conducive.”
confidence reaching rock bottom. Narube is accusing the government of being selective about
Narube says that period saw him face a dilemma. who they favor in the private sector, naming the Grace Road
The coup-makers wanted him to announce things were nor- Food Company as a classic example. The Korean company set
malising in Fiji and the economy was back on track. up operations in Fiji in 2014 and in 2017, was awarded the
“I couldn’t say that otherwise I would have been lying.” Prime Minister’s Primary Industry Business Excellence Award.
Narube says they also instructed him to devalue the cur- Today, Grace Road is operating more than 60 companies in
rency. The Fiji dollar had already been devalued twice by a Fiji promoting 12 different brands.
total of 32% since the country’s first coup in 1987. “While Fiji should welcome all foreign investment, we must
Narube says he advised against devaluation, pleading it ensure that they do not encroach into sectors that are ear-
would only increase the cost of living with no real gains in marked for locals. These areas are clearly demarcated in the
output. Foreign Investment Policy. Grace Road has clearly encroached
At the time the world was still reeling from the effects of into these areas, seemingly with full Government backing.
the housing bubble in the US. The Fijian economy was down, This has taken away jobs from our youths and makes it very
uncertainty was up, and people were paying a high price on Continued on page 30

28 Islands Business, December 2020