I. Identification

In the spring of 2000, a coup was staged in the Pacific island nation of Fiji. The complex and emotional political events that led up to this show of force are derived from an ethnic clash between native Fijians and the descendants of indentured slaves from India who were brought to the islands by the British over 100 years ago. But this sometimes violent battle for power was not the first sign of struggle in the island paradise and the clash of cultures extends well beyond the capital city of Suva. It is on the country's profitable sugar plantations that things have gotten more personal. At the time of the coup, the Indo-Fijian farmers were being evicted from their plantations as Fijian landowners chose not to renew the leases that had been drawn up by the British some thirty years ago. Sugar cane is Fiji's leading export and the government and the people rest their hopes on its performance. Fijians want their land back with the hope of prosperity that only Indian families have seen of late. Unfortunately, preferential pricing schemes in overseas markets are being called into question and trade sanctions in response to the coup threaten to derail their efforts. Where are the lines drawn between native rights and rights of immigrant populations to pursue equality and prosperity? Are the sugar plantations a microcosm of what is to come in the government? Is this agricultural resource being used as a pawn in the greater development of the country? Can the Fijian sugar industry face the tough international battles to come if society remains so divided?

2. Description

Fiji's introduction to the global community was marred with violence, fear and a clash of cultures. The small island nation was first sighted in 1643 on the trade routes of the South Pacific and in the 18th century it would receive such infamous visitors as Captain James Cook, who discovered the Hawaiian islands, and Captain Bligh of the Mutiny. The visiting European sailors did not view the Fijians as the "noble savages" they encountered elsewhere, but rather were frightened by reports of cannibalism and the ritual killing of the elderly and the dead. Racism and fear even drove one explorer, D'Urville in 1838, to burn Fijian villages to the ground.(Cameron)

It was in light of this history of violent confrontation with outsiders that the British arrived in 1874 to annex the islands as a colony of the British crown. When the British came to colonize Fiji in the late 19th century they of course saw potential for economic profit. Sugar cane is native to this region and the colonizers decided to start plantations. While sugarcane would have been part of the native Fijian diet, it is doubtful that the Fijians had been cultivating sugar in large quantities prior to this. The first British governor of Fiji, Sir Arthur Hamilton Gordon, arranged to bring indentured servants to the islands from Britain's largest colony, India, to work on the sugar plantations of the newly established British Colonial Sugar Company. British rule was viewed as "benevolent apartheid." The traditional chiefs were recognized and used to govern through a "divide and rule policy." The chiefs became bureacrats for the British civil service and the newly arrived Indians were kept separate from the Fijians.

Indentured servants arrived from India to work the plantations, and from those initial migrations a sizeable community of Indo-Fijians grew and prospered. The sugar industry grew as well and servants were brought in to work not only for the British but also an Australian company, Colonial Sugar Refining. Indians suffered inhumane treatment and referred to their lives as "narak" - hell. In 1920 their contracts of indenture began to expire. Since for many their lives had been established in Fiji and because they lacked the means to return to India, they stayed and many became farmers and canegrowers themselves. For some when their sentence of servitude was over they moved to the cities becoming merchants and businessmen. Indians were granted enfranchisement in 1929 and by 1946 were counted as the majority population. (Today Indo-Fijians represent roughly 45% of the population.) The first Indian political party, the Federation Party, was established in 1960 thus beginning a very active involvement in politics by Indo-Fijians.(Lal)

During this time the majority of Fijians were still living in rural villages. It was not until independence came to Fiji in the 1970's that natives began to move to the capital and city centers in any large numbers looking for opportunity. When they arrive they found a way of life and a system of business already well established by the Indian populations. Rather than integrating, each population kept to themselves. The new government went so far as to establish a separate civilian government for the native Fijians based around traditional leaders and village norms. Tensions began to mount as Indo-Fijians played a greater role in Parliament and were heading successful business ventures.

Photo Courtesy of Matthew and Miho Blumkin

At the same time, the ground work for future tensions was beginning laid in the rural areas. Before the British left they had established that all lands were to be held by native Fijians based on ancestral family claims. Land sales were halted. Instead the local owners were free to lease their lands to whomever they chose. Many did just this, leasing their lands to Indians who wanted to run sugar plantations. The plantations remained successful, and sugar continues to be the nation's leading export. Recent counts estimate the number of Indo-Fijian farmers to have been 26,000 prior to 2000, most of whom hold small farms of between 5 and 20 acres. The cane is then sold to the state owned milling company, Fiji Sugar Corporation, for crushing and export. This sugar represents a third of Fiji's domestic exports ("Fijian Economy...").

In 1987, tensions between the two ethnic groups finally erupted on the public stage. Fiji gained the dubious honor of the first Pacific island nation to stage a coup attempt. The military overthrew a new coalition government built with the support of trade unions, cane farmers and Indian bussinessmen and professionals. It was successful and three years later the Constitution was rewritten to exclude Indians from politics. Eighty thousand Indians left the islands taking their money with them. Since then the cycle of ethnic oppression has continued back and forth.

In 1997, a new constitution was adopted giving greater rights to Indo-Fijians including the opportunity to hold office. A year later Mahendra Chaudhry, an Indo-Fijian, was elected Prime Minister with the backing of a coalition government on a platform of economic reform. The previous year's drought had crippled the sugar industry and Chaudhry blamed the country's hard times on economic mismanagement by the previous adminstration. 1999 turned out to be a bumper crop year and saw an increase in other economic sectors most notably tourism ("The Trouble Ahead").

It was that man, Mahendra Chaudry, who was forced out of office and held prisoner in a coup staged on May 19, 2000, by George Speight. Speight is a local businessman who at the time was facing currency fraud charges. He held several dozen hostages, including Chaudhry, in the capital city of Suva for over two months. He had broad support from the native Fijians as he promised a new constitution to keep Indians out of any elected office and even disenfranchise them completely("Fiji's Terrorists"). Speight also forced the resignation of the President, Ratu Sir Kamisese Mara. In doing so he lost the endorsement of the Fijian Great Council of Chiefs who wield considerable political influence amongst the populace. Then the military began to turn on Speight. He turned to the chiefs for any last shred of support they might give. But the chiefs divided along geographic lines, East vs. West, as to whom should assume control of the government ("Tropical Heat").

By July, the Chiefs had thrown their support to the military. The head of the Fijian armed forces, Commodore Frank Bainamara declared marshal law in early June mostly in response to the increasing acts of violence occurring throughout the country. Native Fijians and supporters of Speight had been taking advantage of this time to act out their frustrations on Indo-Fijian families. One online news source (LaborNet) reported stories of "gangs rampaging through isolated Indian sugar farming communities threatening families, stealing goods, raping women and committing arson." When Bainamara took action, Speight claimed the military had "hijacked his coup." The Fijian military is to be taken seriously. They are a well established, well trained force that has contributed significant numbers to the recent United Nations peacekeeping missions around the world. During the hostage crisis, in addition to standing watch around the capital buildings, they restored order in the countryside and brought an end to the looting and violence ("Whose Coup?").

At this point, the Chiefs threw their support to the military and Speight began releasing hostages. Speight was arrested at the end of July and an interim government was established with Fijian Laisenia Qarase as Prime Minister. Qarase promised a government of "moderation, inclusion and compassion" but said that indigenous Fijians would be given a "special place in [the] society" ("Restoring Calm").

Part of the impetus for this unrest is the changing of the guard on the sugar plantations. Last year saw hundreds of the Indo-Fijian farmers colonial-era land-leases expire. Most Indian families were evicted, their leases not renewed. Many native Fijians landowners are saying they will not sign new leases with Indians, they want to run the plantations themselves. The interim government that was eventually given control instituted a reparation policy whereby evicted farmers were paid approximately US$12,300 (AUS$22,000). As of January 2001, 136 farmers had taken advantage of the program. It is not clear whether or not this will continue but the Indian population is not taking any chances. Months of violent confrontation and uncertainty has left the Indians homeless and contemplating emigration. They have left the plantations and many have left the country. There is a worry that there will be another brain drain as there was after the 1987 coup. Work on the plantations halted and it looked as if the year's crops were in jeopardy.

It is an auspicious time for Indians to abandon the plantations. Already on a downward slope, the past year has brought on more challenges for this struggling economy. In addition, the civil unrest distracted from the harvest and the crushing mills reported very low turnouts. One mill manager said that at the end of the year there was still 210,000 tons of cane left unharvested in the fields. But turning a profit on these lands will be just as difficult for the Fijians as maintaining a stable political structure. Not only did the violence around the island result in slowdowns on the plantations, but hydroelectric plants on highlandrivers were shut down in protest, foreign owned mines were closed for fear of violence, and plans for new tourist resorts drawing on foreign investment capital were shelved. The Australian government and for a time the New Zealand government placed trade restrictions on Fiji until it reinstated the rule of law and ended discriminatory policies. In fact for a time, foreign governments were bypassing Mr. Speight and negotiating with Bainamara. It was when Bainamara was told that the European Union countries would end their preferential subsidies on sugar that he ended talks with Speight("Fijian Economy...").

As the year came to a close the situation had barely stabilized. The military backed government left in power was still walking on shaky ground trying to determine its own legitimacy. Nevertheless, sugar exports finished the year rather high even though virtually every other source of revenue for the country was down significantly. Trying to maintain its position in the region and on the international scene, Fiji is doing its best in the many regional trade, environment, political and socio-cultural organizations to which it belongs. Possible one of the most significant times it will speak its voice this year is at the upcoming round of the Lomé Convention which is the trade agreement between the European Union and Africa, the Caribbean and the Pacific which ensures that Fijian sugar is subsidized at a higher price in the EU markets. Fiji is even attempting to host this Convention which may decide whether or not the sugar plantations are a spoil of the ongoing ethnic battles.

3. Related Cases

The following are links to other cases in the Trade and Environment Database (TED) that are related either by the nature of their environmental conflict or by geographical location to this one. Some have been chosen because they concern other environmetal challenges being faced in the Asia/Pacific region. Others may be of interest to readers who are concerned with the role of culture in trade and environment or with role of agriculture and food production in disputes between clashing ethnic groups.

• SAIPAN Non-resident Workers in Saipan
  
• NAURU Phosphate Mining in Nauru
  
• SOLOMON Solomon Island Deforestation
  
• PAPUA Mining in Papua New Guinea
  
• MALAYTIN Tin Mining in Malaysia
  
• PHILSUG Philippine Sugar and Environment
  
• LUCKY Lucky Dragon Radiation
  
• CHIAPAS Chiapas Uprising and Trade
  
• JOHNS Johnston Atoll Chemical Waste

Erica Blodgett
American University, School of International Service, April 2001

II. Legal Clusters

This is a discussion of the legalities and policy concerning the internal struggle for ownership of the sugar plantations. International trade relations and policies are addressed in the Trade Clusters.

5. Discourse and Status: DISagree and INPROGress

As of March 2001, Fiji still had an uncertain future. An interim government of native Fijians was in power in Suva and after heated discussion of revisiting the constitution, the Fiji High Court of Appeals upheld the legality of the 1997 Constitution which grants Indo-Fijians the right to hold office. With that Mahendra Chaudhry declared that he was still the rightful and lawful Prime Minister. Factions exist on both sides whether to maintain Indo-Fijian equality or promote native rule (FijiLive).

6. Forum and Scope: National Government forum and UNILATeral and BILATeral scope

Obviously this is an issue to be worked out between the peoples of Fiji. This will include discussion of upholding the Agricultural Landlord and Tenant Act which reserves land ownership for native Fijians. Any land reform will have to go through the Native Lands Trust Board. On the other hand, foreign governments like Australia, New Zealand and India have weighed in with an opinion concerning the treatment of the Indo-Fijians, and in the case of the former two even implemented punitive policies in the form of trade sanctions against Fiji while the rebels held the capital. As Australia is the regional power as well as a major aid donor and trading partner to Fiji the scope is expanded to take into account the opinions of other countries and their power in Fijian decision making. Australia gives roughly US$13 million in social and humanitarian aid per year to Fiji as well as military assistance. During the crisis, Australia's top diplomat in Fiji, High Commissioner Susan Boyd, said "any wholesale sanctions would have a very serious effect on Fiji's economy" ("Fijian Economy...").

7. Decision Breadth: Ultimately, only 1 sovereign nation - Fiji - has the final authority in the internal aspect of the case.

8. Legal Standing: LAW

III. Geographic Clusters

a. Geographic Domain: Asia

b. Geographic Site: Australia

The Fijian Islands are part of what is geographically referred to as Oceania. They lie south of the Equator and east of Australia in the Pacific Ocean. However, these and other Pacific Island nations are often incorporated into East Asia in matters of politics and economics.

c. Geographic Impact: Fiji

10. Sub-National Factors: YES

The Fijian sugar industry is over 100 years old. Historically the majority of exports have gone to Europe. British colonists turned the local sugar cane into a profitable plantation crop and imported indentured Indian slaves to work the fields. When colonial rule ended in the 1970s the British left a system whereby native Fijian retained all land rights, but Indians, who had been running plantations for generations, were awarded 30 year land leases.

The Fiji Islands Statistics Bureau does have a few numbers disaggregated by ethnicity. In the 1996 census 50.8% of the population was Fijian and 43.7% was Indian. Indians have a lower birth, death, and infant mortality rate than Fijians, but the life expectancies are virtually the same. That is where the disaggregation stops. No mention of differences in GDP, poverty levels, employment patterns or labor force participation by sector.

If the Indo-Fijians are scared out the country like they were after the 1987 coup it could be devastating to the economy. The other point that does emerge repeatedly in the literature is that the Indian populations have maintained a strong, traditional Indian culture having built Hindu temples and retaining their language. Certainly the native Fijians wonder what people will imagine when they think of Fiji. At the heart of the struggle will be who controls the money and that is why it has begun on the sugar plantations. It may not be kind-hearted or morally upright to evict the Indian families but the Fijians are legally in the right according to the lease agreements.

11. Type of Habitat: Tropical Rain Forest

Fiji is made up of dozens of mountainous, volcanic islands surrounded by coral reefs and covering 18,270 square kilometers of land with a total of 1,129 kilometers of coastline. This is a warm, wet climate with very little seasonal temperature change.

IV. Trade Clusters

This section explores the added challenges that the Fijian sugar industry is facing on the world market even as the wo ethnic groups struggle for control of the plantations. Whoever harvests the sugar holds the purse strings to Fiji's economic development.

12. Type of Measure: SUBSIDY

13. Direct v. Indirect Impacts: INDirect

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: YES, Sugar

b. Indirectly Related to Product: NO

c. Not Related to Product: NO

d. Related to Process: YES

Sugar plantations must be carved out of topography of the islands which are small to begin with. The World Resources Institute reports there are currently 72 threatened plant species in Fiji. No correlation is made to plantations but habitat loss will begin to be a problem if land is not protected.

15. Trade Product Identification: Raw, crushed sugar cane

16. Economic Data

Over the last twenty years Fiji's economy has begun to transform. In the early 1990s, Fiji went through a program of structural adjustment to boost development. They devalued their currency, lowered industry protections and began to diversify beyond sugar in clothing and tourism. According to the World Bank Data Profile for 1999, exports accounted for 70.6% of GDP. Agriculture accounts for 18.9%. Trade was measured as 30% of GDP. Until just a few years ago sugar was at the top of all those lists, then the much famed El Niño droughts and La Nina floods wreaked havoc on crops. 1999 sugar exports earned just US$60 million down from US$154 million just ten years earlier. Agriculture has become the economy's slowest growing sector while industry begins to take off especially garment manufacturing. Still, it is estimated that over 26,000 households earn their livelihood from sugar, mostly Indian leasees who work small 5-20 acre farms.

In August 2000, after the coup, the Fiji Reserve Bank predicted a 15% shrink in the economy for the coming year. Six thousand people had lost their jobs. Tourism rates were at a mere 20% occupancy rate and government revenue was short of its target ("Coup Affects Hitting Economy").

17. Impact of Trade Restriction:

At the multilateral level Fiji is having to face the prospect of losing its most favorable trading agreement due to so-called unfair subsidy practices. The European Union imports 70% of Fijian sugar exports. Historically it has done so through the Lomé Convention and Sugar Protocol which paid African-Caribbean-Pacific countries 2-3 times the competitive international rate. Unfortunately this agreement is not compliant with World Trade Organization agricultural guidelines and may have to end soon. The EU is currently applying for a waiver to preserve their ACP relationships. This combined with the number of new plantation owners and the possible labor flight could prove traumatic to next year's production.

Finally, the civil war itself has brought on bilateral repercussions for trade. While much of the world has remained unaware of the troubles in this small island nation, their largest trading partners, and Oceania's regional leaders, Australia and New Zealand, have taken notice. When Speight was still holding hostages in the capital last July these two countries imposed sanctions on all import and export goods to the country. Australia is also Fiji's largest bilateral aid donor and they suspended many aid programs until the violence had stopped and some form of government was restored. These actions may not have had a huge impact on the sugar industry but they were felt throughout the country's growing manufacturing sector. Also during the coup, Australian and New Zealand trade unions banned loading and unloading of cargoes to and from Fiji until the hostages were released. Five thousand workers were laid off for a time in the Fijian garment factories(Australian Department of Foreign Affairs and Trade).

18. Industry Sector: FOOD

19. Exporters and Importers

Case Exporter: Fiji
Case Importer: European Union

The following data was obtained from the United States Department of Agriculture commodity reports for the sugar industry for 2000. It does not reflect a difference in cane versus beet sugar.

Leading Exporters	Quantity (in 1,000 metric tons)	Leading Importers	Quantity (in 1,000 metric tons)
1. Brazil	6,200	1. Russian Federation	3,820
2. European Union	5,150	2. European Union	1,835
3. Thailand	3,800	3. United States	1,624
4. Cuba	3,500	4. Indonesia	1,600
5. Australia	3,349	5. Japan	1,600
6. South Africa	1,450	6. Republic of Korea	1,460
7. Guatemala	1,140	7. Malaysia	1,310
8. Colombia	950	8. Iran	1,300
9. Mauritius	650	9. Canada	1,170
10. Mexico	540	10. China	1,000
World Total	32,822	World Total	33,243

V. Environment Clusters

20. Environmental Problem Type: HABITat Loss, RIGHTS

The many mountainous, volcanic islands that make up the Republic of Fiji cover only 18,720 square kilometers and have 1,129 kilometers of coastline. That is quite close quarters for the 796,000 people who call Fiji home. While 60% of the population is still rural, the urban population has been steadily rising for the last 40 years. In the rural areas 20% of people are living in poverty according World Bank standards. The 1999 GDP per capita was $2,210 and most people were getting their basic needs met. Virtually everyone has access to clean water and sanitation and in 1995 99.9% of children were enrolled in primary school. This case is about what is being done with the land and by whom. Total cropland is 260,000 hectares, a number that has shown a 25% increase in the last ten years. Food production has increased 43.8% and the most prolific animal seems to be the chicken. Being an island nation, there must be some mention of the ocean resources. The marine fish catch has increased 9.3% in ten years and fresh water aquaculture has skyrocketed with a 2,233% increase! Meanwhile, they have 717,060 hectares of marine area under protection. The protected land area is only 19 hectares and plant and bird species are becoming threatened.

21. Name, Type, and Diversity of Species

22. Resource Impact and Effect: LOW and PRODUCT

23. Urgency and Lifetime: LOW and 100s of Years

24. Substitutes: LIKE PRODUCTS

VI. Other Factors

25. Culture: YES

Photo courtesy of The Peace Gallery

The Indo-Fijian population today is the descendants of those early indentured slaves but they have an established community in the islands. Hindi is accepted as one of the languages of the countries. They have built Hindu temples and live together in Indian neighborhoods. But that is one of the problems. The British began this process of separation of the two races and it has never stopped. That is why the native Fijian's are so hostile toward the Indians. They see them as an attack on their culture and the survival of the Fijian people.

Among Speight's promises, besides the disenfranchisement of the Indo-Fijian's, were the declaration that Fiji was a Christian country, but at the same time the end of democracy inFIji. He claimed that democracy was not a traditional form of government for Fiji. Christianity of course only dates back to the arrival of the traders and missionaries in the 19th century. But today many native Fijians are Christian. By making this declaration Speight draws one more line in the sand between the Indo-Fijians and the native Fijians.

26. Trans-Boundary Issues: NO

27. Rights: YES

The following is a fictitious comparison of two Fijian families - one native, one Indo-Fijian. The author intends no disrespect or implication of any similarity to actual people. The purpose is to illustrate the real life implications for individuals who have in the past or hope int he future to make thier living on the sugar plantations.

For one family it is time to leave. They brought in their last crop of sugar in December and their landlord brought them an eviction notice. "They gave you my land for 30 years, Indian," he said to them. "Now I am going to take it back and it will belong to Fiji again." That's right, thirty years the farmer had thought. The original lease had not even been in his name. It was given to his father, but when he died it was passed down. His grandfather had run the plantation for thirty years before that after his great-grandfather had come from India on the British ship to try and make some money to send home to his mother. Great-grandfather never went back to India. He had married and had a family here. They were Fijian, it was the only home he had ever known. And now he has to find a new home for his family. They would probably move to the capital, Suva, and hopefully he and his wife could find work. They said there were already so many Indians living there that he would feel at home. But what would he do - he only knows sugar. Sure farming had brought him more money than most of the natives over the years but how long would it last if he couldn't find a job. Others he had heard were going to leave and go to India, just like the tens of thousands who had left after the coup in 1987. What a far away place in sounded like. He had seen pictures but certainly never been there. One time he had been able to travel to Australia for a sugar growers convention, but he couldn't see much in just one week. Just getting from the family from his island to the capital was going to cost him more money than he cared to think about. But maybe he should leave. Even though Indians are half of the population, things have just been getting too dangerous. Soon they may try and make him leave.

Another family is coming home. For thirty years he has grown into a man watching outsiders make money off the land of his ancestors. Rent hardly made up for it when he saw how much the Indian made selling sugar. He didn't want to be cruel but his people had not asked them to come here. They had tried to stand up to the British and the British had just walked around them. Maybe now it was time to take back their islands. They know this land. They know what is best for it and how to get what they need from it. They will protect it - and they will protect their culture. He also meant to put a stop to his children learning Hindi. It was bad enough that there were no Fijian books at their school, but at least if they know English will be able to do better in the world. What good will the language of those Indians do? He wished they would all just go back where they came from. People keep telling him how hard farming ten acres of sugar cane will be. He laughs and thinks it can't be any harder than filling potholes on the government roads in the blazing equatorial heat. And now his wife won't be bent over a sewing machine in a factory anymore. Sure that had been good money when the business was growing, but city life had not been good for him. It was better out here where he could hunt and fish. It was good there was plenty to eat in the forest so even if those crazy people are right about the price of sugar going down, his family won't starve. But the government wouldn't let that happen. They'll just tell the people from Europe how it has to be.

28. Relevant Literature

For the most recent information on this case visit The Pacific Islands Report, an online database of newspaper, radio and television reports updated daily from regional news organizations and provided by the Pacific Islands Development Program.

Australian Department of Foreign Affairs and Trade, http://www.dfat.gov.au/geo/fiji/fiji_brief.html

Cameron, Ian. Lost Paradise: The Exploitation of the Pacific. Salem House: Massachusetts, 1987.

 "Coup Effects Hitting Economy." Radio Australia. 4 August 2000. Accessed through Pacific Islands Report.

Economist Intelligence Unit. "Country Report/Profile Pacific Islands." Economist Intelligence Unit: London, New York, Hong Kong, 1999

"Fijian Economy is held Hostage by Crisis." Los Angeles Times. 10 June 2000.

Fiji Government Online,http://www.fiji.gov.fj

Fiji Online, http://fiji-online.com/fj

 FijiLive. Reported by Pacific Islands Report. 1 March 2001.

"Fiji's Terrorists." The Economist 3 June 2000.

Labor Net. http://www.labor.net.au/news/310.htm

Lal, Victor. Fiji: Coups in the Paradise. Zed Books, Ltd: London, 1990.

"The Trouble Ahead." The Economist. 3 June 2000.

 "Restoring Calm in Fiji." New Straight Times. 29 July 2000.

"Tropical Heat." The Economist 17. June 2000

"Whose Coup?" The Economist. 10 June 2000.

The author would appreciate constructive comments or questions concerning this case. Messages can be directed to: erica_blodgett@yahoo.com

1/2001