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Monday, November 30, 2015
Transcript of Monday, November 30, 2015
How it affects
Human Development Index
Nato and Russia Relations
Pushed to the East and Isolation
Partnership with Asian and Pacific Countires
Friday, December 4, 2015
Vol XCIII, No. 311
Main Economic Indicators
Russia: Data begins after collapse of the Soviet Union
Confidential under the USSR
GDP per Capita
Russian's enjoy a higher standard of living: income is about 3x that of Fiji
Country of more than 300 islands
Depends a lot on for wealth
e.g. soft-coral diving, zip-lining and rock climbing
sugar, clothing, copra, gold, silver, lumber, small cottage industries
pop. concentrated on two islands: Viti Levu and Vanua Levu
GDP: 4.030 billion USD (2014)
per Capita (PPP) 4900 USD
Pop: 886500 (2014)
Relation to national poverty levels: 35.2% as of 2008
Population conc. in urban centers
pop: 143 million
What industries will they be focused more on?
Main Economic Indicators
In 40 years how will the population pyramid look like?
What will the government need to consider?
With coastal populations what is a large industry?
Is it stable?
Cyclones, flood, earthquakes, tsunamis
competitive industries: oil and gas, mining, processing precious stones and metals, aircraft building, aerospace production, weapons and military machinery manufacture, electric engineering, pulp-and-paper production, automotive industry, transport, road and agriculture machinery production, light and foodstuffs industries.
Given the multiplier effect what happened to these industries?
What does the RF have to worry about now? 30-40 years from now?
FDI: $272.1 million
Inflation (CPI): 2.9%
GDP (PPP): $4.5 Billion
$5085 per capita
Fiji would fit 936x into Russia
GDP (PPP): $2.6 trillion
$17,884 per capita
Unemployment: 5.8 %
Inflation (CPI):6.8% (2015)
FDI Inflow:$79.3 billion
Strong correlation between and HDI
Income per capita
What does HDI consist of?
Life expectancy, average years of schooling (25+), school enrollment
Rule by Military Strongman: Commodore Frank Bainimarama (autocratic. large government spending undermining monetary stability and fiscal policy. Why?)
Ethnic tensions and Religious (Christian, Hindu and Muslim Indo-Fijans)
2006 Sanctions due to Bainimarama's coup: hurt fishing, agriculture and fishing industries (EU)
2009 suspended from Commonwealth of Nations
2012 Australia and New Zealand restored economic ties
reform in industrial sector has done little to boost growth
illegally annexed Crimea
support of separatists has target sanctions (US and EU)
Econ dependent on gas exports
bid to join Org. Econ. Co-Op and Dev postponed
Rule of Law
since 2006 mil. gov. neutralized political opponents & crippled democratic institutions
8% of land is freehold; rest can only be leased
property rights are uncertain
rampart corruption; small elite control of nation assets
corroded state institutions
rule of law is not uniform (Russian outlook as guidelines...Pirate Code anyone?)
Judiciary vulnerable to political pressure
Property rights protection is weak
Incorporating business now less time consuming
other req. incr. ost of running business
minimum capital req. eliminated
gov. maintains price control on various goods and continues to subsidize electricity
Heavy bureaucratic obstacles
inconsistent enforcement of regs. suppress private sector
complete licesing takes 200 days
many state-owned companies
Average tariff: 5.0 %
some gov. ownership in the banking sector
central bank as market regulator
Average tariff: 9.9%
most land owned by gov.
commercial banks well developed and stable
capital market underdeveloped
18 companies listed in stock exchange as of 2014
Imports: $2.88 Billion
Exports: $1.26 Billion
Russian Ruble strongly correlated w/ price of oil
Russian's feel their currency is "undervalued"--sell foreign currency to defend value
(67.5 Rub per $1)
sanctions, failure to meet external debt
Citizens of the high-inflation country--need more units of their currency to buy things at home.
sell abroad, they demand more of their domestic currency,--pushes up the cost of their exports
Overvalued--going towards Devaluation
Consumers--import binge during devaluation
2.13 Fiji Dollars = $1
Value of their dollar tied to USD, Euro, Japanese yen, Australian and New Zealand dollar
foreign reserves to drop
reduction in remittances, exports and tourism
What's a drawback to overvaluing your currency?
What are the benefits to either over/undervaluing?
Masking unemployment w/ Soviet Era Tactics
pressure not to reduce headcount
difficult to fire people
Employers would rather cut hours, salaries, and work unpaid holidays,
part-time jobs, and part-time pay jobs.
Mr Konrote--Minister for employment and productivity
"we lack an entrepreneurial culture and tradition."
convince rural youth and school leavers
entrepreneurial proj. in agriculture sector
Fiji Times Online