Structural Adjustment in Fiji under the Interim Government, 1987–1992

This article critically assesses the success of market-led structural adjustment in Fiji. After reviewing the rationale behind structural adjustment programs itexamines the economic policies of Fiji’s Interim Government between 1987 and1992, demonstrating that such policies were both consistent with structural adjustment and represented confirmation of a change in economic policy. The eco-nomic performance of Fiji under structural adjustment is examined. However, indelving behind the data the article uncovers both supply and demand constraints that together suggest an inability to resolve major structural issues facing theeconomy. As a consequence, the capacity of the economy to respond to thechanged framework of incentives brought about by structural adjustment is inhibited. Market-led structural adjustment has not acted to remove key limita-tions to economic growth in Fiji. keywords: Fiji, Pacific island countries, structural adjustment, small island economies, trade liberalization, international economics