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Sweet land or Sweat land: Two proposals for facilitating access to land and adjustment to eroding EU sugar preferences in Fiji

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  • Satish Chand

Abstract

The resolution of problems with lease renewals in Fiji, particularly in the sugarcane districts, has ramifications for private investment and growth in the entire economy. The impending withdrawal of subsidies to sugar as world trade is liberalised has increased the urgency of finding solutions to these problems. This paper draws on game theory to characterise the problems facing the Fiji sugar industry. The incentives for land and ethnic politics are identified. Separate proposals are put forward to facilitate secure access to land and to minimise adjustment costs from the erosion of preferences under the Sugar Protocol. The rationalisation forced upon the sugar industry, if managed well, could induce land reforms that could improve the investment climate and the prospects for growth, whilst minimising pains of adjustment.

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File URL: https://crawford.anu.edu.au/degrees/idec/working_papers/IDEC04-6.pdf
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Bibliographic Info

Paper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec04-6.

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Length: 29 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:idc:wpaper:idec04-6

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  1. Vousden, Neil, 1993. "Variable Specific Factors and the "X-Efficiency Cost" of Protection," Review of International Economics, Wiley Blackwell, vol. 1(3), pages 234-42, October.
  2. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
  3. Chand, Satish, 1999. "Trade Liberalization and Productivity Growth: Time-Series Evidence from Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 28-36, March.
  4. Horstmann, Ignatius J. & Markusen, James R., 1986. "Up the average cost curve: Inefficient entry and the new protectionism," Journal of International Economics, Elsevier, vol. 20(3-4), pages 225-247, May.
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