How Does Economic Development Contribute to Poverty

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In late 1980’s Fiji government made a policy switch from inward development strategy to an outward oriented development strategy. a. Discuss the possible reason for the policy switch. b. What changes in the economic policies were made? c. Discuss the likely impact of the policy change. Fiji is one of the developing countries in the South Pacific. The government used an inward development by exporting traditional products. It was found that there is a slow in a development but lately in the 1980’s; the government switches its policy to an outward oriented development strategy in order to tackle the issue of lacking of foreign investment. This is can help the country to develop faster in order to increase revenue on sugar, clothing exports and receiving more tourism ((WTO), 1997). There are various changes in Fiji economy as it can be attain more revenue and however there are some cases that happened to the economy as the government used an outward oriented development strategy the government changes its policy to the economy. The Fiji government made a policy switch because of lack of foreign investment. The main purpose of changing the policy is by imposing some policy that are going to run the economy process faster than before. According to WTO, they mention that “Fiji has tried to diversify away from traditional exports and motivate foreign investment”. This means that Fiji have tries to introduce foreign investment by attempting advance technologies (capital stock), provide education to overseas, increasing export of sugar and many more. So, it is clear that switching to outward oriented development strategies might be help the country developed by only attracting foreign investments. In addition, in the late 1980’s Fiji imposed some policies that can help economy to develop. Importing license requirements have been removed in order to

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