Neglected dimensions of development: inequality, conflict and aid

Purpose - As ethnic diversity is regarded as a determinant of growth, this study engages in an analysis of diversity as the forte behind better economic performance and where social stability of a nation is necessary to achieve growth. While these factors alone may not be sufficient to achieve growth and maintain social harmony, domestic institutions and good governance are regarded as vital factors. Design/methodology/approach - Differential performances of diverse ethnic groups are most influential contributions of social capital and its growth impact. In this framework there is a larger role of aid to provide security to a nation to achieve its development objectives. An evaluation of ethnic diversity and land issues in Fiji is undertaken with concerns of a market economy, policies and governance. Findings - An examination of the opposing nature of ethnic diversity and land issues in Fiji provides an insight not only of ethnic conflict, but also of the role of aid to solve conflict. A discussion on ethnicity and being equal in the market relates to the reason for equality before identity. The analysis indicates the role foreign aid can play to achieve stability and avoid ethnic conflict for growth in Fiji. Originality/value - The paper indicates the global issues of inequality and conflict and policy implications for Fiji and the nations facing such problems and aid donors’ role for growth and development.