29 Apr 2009

Fiji economist says methods used by interim govt is destroying economy

10:27 am on 29 April 2009

A Fiji economist says while the military-led government's objectives are good, the methods it is using to achieve them are destroying the economy.

FIji's reserve bank recently devalued the currency in order to stimulate the economy, which will increase the cost of imported goods.

Wadan Narsey, an economics professor at the University of the South Pacific, says based on a rough calculation, in the past three years, Fiji has lost nearly 2 billion US dollars because the economy has not been growing the way it ought to have been growing.

"Nothing to do with whether or not these people can run the economy or not, I mean some of them I'm sure are very capable persons, but the fact of the matter is, as long as you have a situation where a constitution is allegedly abrogated is a very, very clear indication that this is not a constitutional government in place and investors are not going to invest."

Wadan Narsey says he estimates unemployment in Fiji now is somewhere around 35 percent.