Economy Survival of Small Island Countries- myassignmenthelp.com

Question: Why might the Fijian economy and other small island economies be described as fragile? Answer: A number of factors describe a countrys economy. These factors must always come to play for an economy to grow or decline. It is important to note that a weak economy creates all manner of problems in the management of the country. Some of the causes of the decline in economic growth are pointed out in this case study. The Fijian government has faced a number of political problems that have brought instability in businesses. Political instability is one thing that causes a serious threat to the survival of businesses in the country (Dobni, Dobni Luffman, 2010). This is because, for any country that relies on imports, would suffer since there would be no imports into the country (Chisnall, 2012). As noted in the case, the Fijian government has had several coups developing into serious authoritarian leadership. This kind of leadership in itself is a threat to an economy. The fact that the leadership of the country is seen to be involved in executions and pushing people to exiles, proves that even the local businesses growth would suffer serious threat causing a bungled economy (Cadogan, 2015). Another problem that may come together with such authoritarian leadership is the ethnic violence and unrest. In countries where there are few ethnic groups, for example, two tribes, it is likely that one group may turn fight the other. If this takes place, many businesses will suffer and consequently, the countrys economy will go down. Small island economies can easily collapse because they usually depend on other countries for their better part of survival. These countries rely mostly on the imports from other countries. Therefore, if at some point they are politically unstable, those countries that do business with them will fear and turn away from them. Similarly, these countries also gain from international support and with any kind of unrest; they may withdraw their supports and consequently affect the countrys economy. References Cadogan, J. (2015). Effects of politics in economy. Los Angeles [u.a.]: Sage. Chisnall, P. (2012). Economic growth and challenges: Systematic presentations. Long Range Planning, 13(1), 99. https://dx.doi.org/10.1016/0024-6301 (80)90070-9 Dobni, B., Dobni, D., Luffman, G. (2010). Behavioural approaches to business reporting and political atmoshere. Ethical Intelligence Planning, 19(6), 400-408. https://dx.doi.org/10.1108/02634500110405405