The Perils of Unmanaged Export Growth: The Case of Kava in Fiji

Abstract

Small developing countries are increasingly marginalized in the global system, especially in the context of global trading. There is a fascination for “bigness” and the global system exerts pressure, at times challenging the very existence of smaller countries. However, there are several small island economies that have succeeded in formulating ingenious development policies to overcome their vulnerabilities. Numerous smaller countries have relatively higher GDP per capita or HDI compared to the rest of the world. One way of overcoming problems associated with smallness is to find niche products for a sizeable international market. This article looks into how small-scale informal sector activities in a small island country could prove to be a pacesetter for a niche product in international trade. It explores the extent to which Fiji’s small-scale farmers have contributed to the exports of kava, and discusses its impact on their livelihoods and the challenges for the kava industry. This article also highlights how success could breed failure when growth is unmanaged, quality is not guaranteed, and domestic product regulation inexistent.

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