AusAID-Fiji Partnership

Labeled a lower middle-income country by the World Bank, one-third of Fiji’s population lives in poverty. The situation is aggravated in the rural areas, which account for nearly one-half (49 percent) of the country’s population. Fiji’s efforts to meet its Millennium Development Goals have been disrupted by successive military coups. The most recent, in 2006, resulted in the abolition of the rule of law and Fiji’s suspension from the Commonwealth and Pacific Islands Forum. Since then, Fiji has experienced a major decline in levels of foreign direct investment. The interim government’s announcement to postpone elections until 2014 has further undermined business confidence; gross domestic product has dropped by 10 percent to the lowest level since independence in 1970. The quality of essential social and education services has deteriorated dramatically. Statistics show a marked increase in elementary school drop-out rates and maternal deaths. A lack of employment opportunities and Fiji’s geographic position, which makes it highly susceptible to the effects of natural disasters, pose additional challenges. The Australian Agency for International Development has a long presence in Fiji and supports the country’s return to democracy. Following the 2006 coup, Australian aid was rerouted to mitigate the effects of the global financial crisis and military rule. The terms that govern development cooperation activities and coordination with public authorities are defined in a pre-coup memorandum of understanding. The majority of Australian aid is channeled through local and international civil society organizations, the private sector and communities themselves to maximize the impact on the lives of the Fijian population. Funding levels Australia is Fiji’s largest bilateral donor. From 2005-2012, Australian assistance to Fiji totaled 413,617,500 Australian dollars ($430,013,000). The latest AusAID 2012-2014 Fiji Country Strategy identifies Fiji as a priority country in the region due to long-standing bilateral ties and its vital position as a hub for regional institutions, education and commerce in the Asia-Pacific. For the fiscal year 2012-13, total Australian official development assistance to Fiji amounts to AU$55.6 million. Of this total, AusAID manages AU$27 million through its bilateral program and AU$26.2 million through its regional and global initiatives in the Pacific region. The remaining AU$2.5 million is administered through other government departments. For 2013-14, AU$36 million has been allocated for bilateral ODA; the remaining AU$19 million will be channeled through regional programs. As the primary donor agency in Fiji, AusAID also serves as coordinator for other donors and a contact point for the relevant government departments. To increase the sustainability of its development initiatives, AusAID works at multiple levels and in close partnership with the Asian Development Bank, the European Union, the government of New Zealand, Pacific regional organizations, the United Nations and the World Bank. Funding priorities (2012-14) The 2012-14 Strategy for Fiji classifies development aid in five strategic priority areas: (1) promoting opportunities for all, (2) saving lives, (3) sustainable economic development, (4) effective governance, and (5) humanitarian and disaster response. Some of Australia’s key initiatives in Fiji are: - Fiji Health Sector Support Program (2011-15), which details plans to improve access to and quality of primary health services, and combat the rise in cases of diabetes and hypertension and bolster high quality research. - Access to Quality Education (2011-15), which aims to expand access to, and quality of educational institutions, particularly for the most disadvantaged living in rural and peri-urban communities. - Market Development Facility and the Fiji Community Development Program (2012–2014), which seeks to strengthen the role of the private sector as an engine of growth for sustainable pro-poor and gender-sensitive market development. Devex analysis AusAID is dedicated to support the people of Fiji on their road to economic development. Fiji’s status as a priority country is emphasized by the decision to double funding, despite the Australian Foreign Minister’s announcement earlier this year to defer the Gillard government’s promise to increase aid spending to 0.5 percent of Australia’s GDP. However, Australia’s commitment is tied to the long-term prospect of Fiji’s return to democracy. Criticism has been raised domestically over the risk of ODA indirectly bolstering the Fijian interim government’s repressive policies. There is also concern over the lack of public involvement in the consultation process over Fiji’s new constitution, which began in early August and is set to end in mid-October. AusAID’s future engagement in the country is likely to be contingent upon political reforms. Contact: AusAID Fijic/o Australian High Commission 37 Princes Road Tamavua Suva Fiji Islands. P.O. Box 214 Suva, Fiji Islands Tel.: (679) 338-2211 Email: public-affairs-suva@dfat.gov.au