Over the last two decades the country has been weakened by political instability and an ongoing cycle of coups. There has been rising unemployment, an increasing number of people living in squatter settlements and deepening poverty. High rates of emigration have resulted in a serious loss of valuable skills, experience and expertise. Increased Government dept with higher payments for interest has preempted funds for vitally needed infrastructure. Despite 15 years of Public Sector Reform, any lasting impact on standards of service delivery and public sector performance is hard to discern10. All major sectors of the economy weakened in 2007, after a military coup in December 2006 that led to the installation of an interim administration. Export income and business confidence fell and macroeconomic policies were tightened, resulting in an estimated 3.9% contraction in the economy. Modest growth is expected in 2008 and 200911. The rural areas continue to be the home for about half of Fiji‟s population, though declining. Urbanisation remains the dominant contributing factor to this decline. However, Fiji‟s key exports are rural based, providing the greatest potential for future development and prosperity, particularly in the tourism, agriculture, forestry and fisheries sectors.

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