Financial Crime World

Fiji Faces Financial Sanctions from Major World Powers

A Brief History of the Sanctions

In 2006, a coup d’etat in Fiji led to financial sanctions being imposed by several major countries, including Australia, France, New Zealand, Samoa, and the United States. The sanctions lasted for nearly eight years, until they were lifted after elections were held in 2014.

Who Imposed Sanctions?

  • Australia: One of the first countries to impose sanctions, Australia maintained its restrictions until 2013, when it partially lifted them.
  • New Zealand: New Zealand also imposed a range of sanctions, including travel bans, and fully lifted them in 2014.
  • United States: The United States kept its sanctions in place for the entire duration before finally lifting them after Fiji’s return to democratic rule.

Countries that Opposed Sanctions

  • China: China maintained strong ties with Fiji despite the coup and was vocal in its opposition to the sanctions.
  • India: India also opposed the sanctions and continued to maintain relations with Fiji.
  • Russia: Russia was another country that opposed the sanctions, maintaining a relationship with Fiji throughout.

Public Opinion on Sanctions

  • Australia: A 2010 poll found that:
    • 56% of respondents supported retaining limited travel restrictions against Fiji
    • 24% wanted all sanctions lifted and normal relations restored
    • By 2012, however, a majority of Australians (79%) supported restarting dialogue with Fiji
  • Fijians: A survey conducted by the Lowy Institute found that:
    • 66% of Fijians approved of Prime Minister Commodore Frank Bainimarama
    • 79% disapproved of the country’s suspension from the Pacific Islands Forum and the Commonwealth of Nations

Impact on Fiji’s Economy and International Relations

The sanctions had a significant impact on Fiji’s economy and international relations. Despite some disagreement over the wisdom of the sanctions, it is clear that they:

  • Affected the Economy: The sanctions impacted Fiji’s economy, making it harder for the country to access international markets and funding.
  • Impacted International Relations: The sanctions also strained Fiji’s relationships with other countries, leading to its suspension from several regional organizations.

Conclusion

Fiji’s re-entry into the global community in 2014 marked an important step towards normalization. However, the legacy of those sanctions will likely be felt for years to come.