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Any re-engagement between Fiji and the Asian Development Bank before Fiji returns to democratic rule may only be possible if Fiji was faced with an ‘economic disaster’, said Keith Leonard, regional director at ADB’s Fiji-based South Pacific Subregional office.
Leonard told Fiji Live that Fiji still could not access financing from ADB for new development projects as the ADB had suspended lending operations to Fiji following the 2006 coup, although it still finances two major projects that were in place before that as well as continue dialogue with the Fiji government on political matters.
“The situation with Fiji is under constant review,” he said.
“We have five criteria that management would take into account to determine whether to engage, re-engage or not. Three of those have been met and two - the approach of other regional countries and the approach of other international organizations - have not yet been sufficiently met.
"But as I said, this is constantly under review and I think, if the situation in Fiji deteriorates markedly, then that increases the need and increases I think the likelihood that development partners collectively would want to assist to prevent major economic downturn."
When asked what would constitute a “major economic downturn” for Fiji, Leonard replied:
“I can’t give you an answer to that offhand. But we look at the Balance of Payment, fiscal deficit, growth forecast, some of the drivers of the economy here - what’s happening to tourism, mineral water exports, gold, remittances, so you know, taking into account a whole range of things.
“So when you come to a conclusion that there’s a serious economic problem, then I think all development partners will have to make a decision on whether to act to help the country avert economic disaster. Because this would eventually have severe social consequences on people as it is about their jobs and well-being.”
Leonard said Fiji had, under consideration with the ADB, a number of projects before the 2006 coup and they would await the re-engagement of the bank with Fiji.
“From memory, there were about five or six projects, in various stages, either somewhere reasonably advanced in their preparation, others were just ideas. So, in total they added up to about US$350 million over a three to four year period,” he said.
