Island Voices
Is There A Collective Capitalism?
Development And Governance In Fiji Might Do Well To Set Aside Other People's Models
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Following the coups in the 1980s, well-intentioned attempts were made to encourage development efforts in Fiji but, unfortunately, these often suffered from a lack of cultural fit. The economic model chosen most frequently was based on individual capitalism, as practiced in Britain and America, a model which focuses on principles such as conspicuous consumption, individual initiative and the importance of self over society.
Although this model fit culturally with the expatriate and Indo-Fijian communities, it was not a good fit for indigenous Fijians. Thus, the country was effectively operating under two competing economic models: the collectivist and the individual/capitalist. Most pay and incentive plans used in Fijian companies, for instance, were ill-suited to the needs of Native Fijian employees. A system of rewards that works in the U.S. may not have any appeal for workers in other cultures.
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Fiji is a good example of the importance of critically evaluating the usefulness of imported economic models. One example of an inappropriate model used in Fiji is the downsizing that occurred in the 1990s. This was a common change initiative in America when CEOs there needed to focus on short-term shareholder dividends within a tradition that viewed employees as a budget line item to be controlled—despite the consistent lack of empirical support for the effectiveness of downsizing. Similarly, privatization and corporatization were applied in Fiji in the 1990s with downsizing used as a way of achieving these goals. This may have led to savings in some organizations, but overall expenditures increased in the forms of police and social welfare programs.
Fijian culture, like that of many Pacific peoples, is best suited for a form of collective capitalism, not individual capitalism. This is part of the reason for the failure of Fijians in retail enterprises. If one has a store full of goods on hand, it is hard from a collectivist point of view, to refuse to share those goods with others, even if they do not have the means to pay.
Collectivist capitalism, rather, focuses on such ideals as resource sharing, group responsibility and the importance of society over self. Individual initiative is encouraged only if it does not disrupt the balance and harmony of the group, community, corporation or nation. Outsiders, and even some Fijians, view the traditional village as a liability and have tried to dismantle its operations. From a collectivist point of view, however, the village system provides for many basic human services that the Fijian government would otherwise have to provide. Sometimes governments are not the best deliverers of services and if the village systems stopped functioning, the urban and port areas would be flooded with people living in poverty and substandard housing. No government could fill the breech.
According to Dr. Jerry Glover, an international development consultant, Fiji’s challenges also need to be examined in new ways. Fiji’s current tensions are rooted in the legacy of colonialism. Post-colonial Fijian history can be viewed as a process in which the British-American capitalist, Fijian village and Indian entrepreneurial models have competed for prominence. Unfortunately, Fiji’s past leadership has frequently engaged in a win-lose strategy of favoring the British-American capitalist model and underutilizing the Fijian village model. The clash between economic models has embroiled Fijian government and commerce in a quagmire that has led to a failure to take appropriate action on crucial problems. It is important to recognize that the ethnic tensions so frequently blamed for Fiji’s problems are a resulting symptom, not their underlying cause.
What is needed is a balanced approach to development, a win-win-model in which all stakeholders, including Fijian, Indo-Fijian and others can participate. Imported development models are like quality of life plans developed by owls for reef fish. Economic development should focus on creating wealth, not creating revenue, and with this change in emphasis the economics of development could resonate with Fiji’s cultural values.
