Wednesday, February 24, 2010

Proof Of the Empty Kitty in Fiji - $Billion IMF Loan

Sai's Comments:

  • One wonders how long will the quest to emasculate the Fiji public service with all the ill timed and enforced reforms before it all comes down in ruins! Bainimarama's "big bang" approach to the reform is bound to enrage, alienate and discourage those who are tasked with implementing them.
  • The key to such reforms is to ensure those who will implement it (public service) have a personal/professional stake in its success such that you're able to then reflect this in the incentive and performance management systems. Instead what you have in Fiji is a "threat disincentive" when you have such reforms shoved down the throats of civil servants. In consequence, they will put up resistance, either covert and overt as in the current intimidating climate in Fiji.
  • Reforms of the size and scope attempted by the current illegal regime are also best undertaken during upward trends in the economic cycle in order to mitigate adverse downstream social impacts. Such impacts cannot be forever ignored nor downplayed as they will feed into other channels in the economy and eventually society. You may well have them covered through dictatorial decrees for a time but they simply materialize in other sinister forms.
  • I have argued before that best performing economies, such as in Scandinavia, carry out reforms in a collaborative manner among key stakeholders who realise they all have a stake in its success. While these nations had tended to benefit from being largely consociational democracies, they nevertheless actively strive to have a negotiated approach to economic and social reform agenda. They also do a good job looking after those least able to care for themselves.
  • There is no reason why Fiji can't emulate such an approach. What is needed is a government that is mandated with the authority and blessings of its people through fair and free elections. Sadly for Fiji that is what we severely lack right now and who knows for how long.
  • From all indications, Bainimarama and his treasonous bunch appear to be settling in to a long and luxuriating munch into the State's coffers at the expense of the unfortunate people of Fiji.

Proof Of the Empty Kitty - No Money; Paisa Nahi Hai; Sa Sega Nai Lavo - 24 February 2010

Fiji TV's leading news item for the 6 o'clock news last night was of Fiji's "kerekere" or loan request to the International Monetary Fund, for the sum of $1 billion in which to "meet balance of payments and pay for reforms".

According to Pita Wise, the Permanent Secretary for National Planning and a Bainimarama stooge pushing their treasonous Charter agenda:

(@ 1:58 mark):
"At this time if you look at our balance of payment errrrrrr our foreign reserve is over, about, over a billion dollar -- that is over 3 and a half months imports but we, you know we errrrrr, you know as we gone through the crisis -- we just gone through the financial and economic crisis worldwide, so we just think government wants to make sure that urrrrr that the environment and that it protects its errrrrrrrr, you know its errrrrrr, its uh, its uh position in terms of balance of payment and debt and all those uhh arrangements eh?"
Wise then goes on to make the case for the additional funds required for government reforms:
(@ 2:40 mark:)
"If you're going to reduce the civil service -- I'm just using an example -- if we're going to reduce the civil service, there will be some cost to it so this fund, this standby arrangement errrrrrrr facility will provide the government those types of resources to be able to undertake those reforms".
(@ 3:06 mark):
"The challenge for us is the conditions to these facilities eh? that i said we must undertake uhh certain actions like uhhh reform, like what government is doing now, undertaking a public service uhhhh reform, the privatisation of uhhhh, of government entities to make them more, uhhhhm, more profitable -- so there's always a cost to these. So these kind of facilities will provide the support to allow you to undertake these reform programmes. "

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