Fiji -- Political Analysis Scenario -- Australian

FIJI -- Political Analysis

Scenario -- Australian parent company wishes to set up hotel/resort themed operations in the country of Fiji. Preference is to acquire a hotel/resort already in operation; retain staff; modernize and restructure.

PESTLE analysis -- Political, Economic, Social, Technological, Legal, and Environmental Issues. Political portion: Overview government, issues: globally, nationally, regionally, locally; changes, trends, etc.

The Republic of the Fiji Islands is an island nation in the South Pacific, just northeast of New Zealand. Fiji was a British colony until 1970 after a century of occupation. Because of the abundance of forests, minerals, and fish resources, Fiji is one of the most developed of the islands in the area. Today, the major economic activities for the islands are tourism and sugar exports (Central Intelligence Agency 2010).

Government Type -- Officially a republic; 1997/98 Constitution encourages multiculturalism and makes multiparty governmental system mandatory. Current Chief of State Ratu Nailatikau, Prime Minister under House Arrest. Essentially, democracy has been subsumed in Fiji, although Constitution is still on the books, the actuality of government is a series of local chiefs that control the individual village areas, with the national government controlled by a self-appointed autocrat. This autocrat controls the military, and therefore any serious opposition to the coup (CIA).

Government Stability -- Relatively unstable. Since independence from Britain, there have been four coups in Fiji; two in 1987, one in 2000 and one in 2006. Since 1987, the military has been ruling directly, or heavily involved and influencing the governments since 2007. In October 2009, the new President of FIJI suspended the Constitution, dismissed the Court of Appeals, and "appointed himself as the Head of State of Fiji under a new legal order" (Pretes 2008).

Freedom of Press/Rule of Law/Bureaucracy / Corruption -- All press, publication and law now controlled by ruling party. However, in September 2009, because of rampant corruption, Fiji became the second country to be suspended from the Commonwealth of Nations. The current voting system heavily favors Fijians at the expense of multi-ethnic minorities. In addition, watch groups claim the current dictator responsible for human rights violations (BBC News 2009)

Regulation/De-Regulation -- Constitutionally, business, both foreign and domestic, are not regulated. In reality, the new government controls permits and taxes for 100% of any company operating. Non-Figiian owned businesses are subject to egregious taxes and more bureaucracy (International Finance Corporation 2011).