Repurposing agricultural support policies for shared prosperity in rural Fiji

Notwithstanding the increasing place of tourism exports, the rural sector and its agricultural production remain important contributors to Fiji & apos;s economy. But their contribution is compromised by policies and institutions that distort the farm sector & apos;s resource use, with too many resources employed by sugar and livestock producers at the expense of other farmers and producers of non-farm products. Subsidies to the sugar industry could be used instead to boost investment in rural public goods such as infrastructure and agricultural research. That would benefit a much larger proportion of rural people, many of whom are below the poverty line. So too would a lowering of tariffs on imports of meat and milk products. And by thereby lowering food prices in urban areas, such re-purposing of support would benefit their poorest households most. It would also lower the prices of high-protein livestock products and nutrient-rich fruits and vegetables, which could well improve nutrition and health.

Automated summary

Despite the growing importance of tourism exports, agriculture in the rural sector plays a significant role in Fiji's economy. However, policies and institutions favoring sugar and livestock producers have led to an unequal allocation of resources, disadvantaging other farmers and non-farm product producers. Redirecting subsidies towards rural public goods and lowering tariffs on meat and milk imports can benefit a larger proportion of rural people, especially those living in poverty, while improving nutrition and health.