Cogito, ergo sum. I think, therefore I am. (René Descartes, mathematician and philosopher,1599-1650)

Tuesday 18 August 2009

(o+) Bloggers Make Bad Economic News Good Political News

Click "comments" at the end of this post to see what others think.

To read the anti-Government blogs you'd believe the Fiji economy is in a state of total collapse. Every economic setback in Fiji is applauded in Sydney and Auckland. This is a none-too-subtle way of turning economic news into political news, with Bainimarama "responsible" for the world recession, the decline in tourist numbers, years of neglect and machinery failures at the sugar mills, increased unemployment, rabid inflation, and increases in the cost of living and poverty.

There's no denying Fiji is struggling (what country is not?) or that overseas (and anti-government blogger) reactions to the "political situation" have made things worse, but ...

Come on, bloggers. Let's have some more balanced comments. It's your relatives and friends whose lives you play with, and your country whose future is at stake. Focus positively on the wrongs and shortcomings of the Bainimarama Government by all means, but forget about a return to pre-coup Fiji. Make some realistic suggestions on the "way forward." And drop the occasional compliment about what Bainimarama is trying to achieve -- with no help from Fiji's so-called friends.

Here are some recent economic news items:

We Will Pull Out of Trade Talks: PM

Responding to NZ Foreign Minister McCully's statement that the NZ Government was waiting tosee what Fiji would decide in relation to the talks on PACER-Plus and PICTA (and Australia's statement that PACER Plus negotiations would go ahead without Fiji that would be "briefed later") PM Bainimarama's response was “We will pull out from the talks.”

Fiji maintains its role in PACER-Plus and PICTA - the Pacific Island Countries Trade Agreement - is separate to its Forum status. Bainimarama has said its exclusion from the Forum -- and PACER -- talks "have made it impossible for Fiji to effectively defend the interests of its people under the trade agreements Fiji is a party to."Click here.

EU Regional Trade Package ‘Intact for Fiji’


Fiji’s Foreign Affairs Minister Ratu Inoke Kubuabola says the European Union (EU) has reaffirmed Fiji’s right to benefit from the Regional European Development Fund despite the Pacific Island Forum (PIF) suspending Fiji from all regional trade negotiations. He said the EU in consultations with all parties had facilitated a satisfactory solution to address this “illegal situation” and in doing so had reaffirmed Fiji’s rights as a signatory to the Cotonou Agreement, which entitles Fiji to fully participate in the negotiations between the Pacific states and the European Union. Fiji supports the call by the European Union to resolve differences and problems through dialogue and direct contact between parties involved.” Click here.

IMF May Boost Fiji Reserves by $160m


Reserve Bank of Fiji Governor Sada Reddy announced Fiji may get a special boost of $160 million to its foreign reserves from the International Monetary Fund (IMF). This would push Fiji's reserves (currently $760m and $440m before devaluation) close to $900m by the end of September. Banking system liquidity has risen from $15m in March to $262m. Click here.

Annual Tourism Forum Realities

With tourism receipts down by 20% Government has more than doubled its budget allocation to tourism, and called on the industry to work together to speed recovery. Click here for overall situation; and here for Bainimarama and Reserve Bank comments.

Prices, Inflation High, Exports Down, but Improving


Inflation as a result of the April 2009 devaluation is expected to peak at around 12% next April, with June registering the highest monthly growth in consumer prices in the past 11 years, and expected to moderate to around 2% by the end of 2010.

Cumulative to May 2009, domestic export earnings fell by 16.4 percent led by declines in sugar, mineral water, garments and timber, which the central bank said more than offset increases in earnings for gold, fish, molasses, sweet biscuits and other domestic exports. Click here.

Kerosene, Diesel Prices Drop

Consumers can at least breathe a sigh of relief after the Prices and Incomes Board announced a drop in the price of kerosene to $1.35 per litre (down 8c), motor spirit $2 (down 8c), diesel $1.67 (down 6c) and premix outboard fuel $1.91 (down10c). Click here.


2 comments:

Anonymous said...

Come on, Croz. Now who's being naieve? Have you triangulated the information contained in these news pieces? Do you really consider, in the context of the PER, that anything published in Fijian newspapers, based on press releases by the military regime and its officials is trustworthy?

I sure don't.

Crosbie Walsh said...

The economic news I reported was by no means all "good" news: tourism and exports down, inflation, prices up. The other items (IFM, etc.) will be shown to be correct or incorrect in coming weeks.

My postings aim at overall balance, and in this they differs from the (equally untriangulated) anti-government blogsites that only report "bad" news. Why do you trust one over the other?