A WIDENING economic divide between Fiji’s two major ethnic communities could fuel social discontent and deepen ethnic tensions, according to a major electoral review report led by former Chief Justice Daniel Fatiaki.
The 232-page report, An Electoral System for the People, From the People, identifies significant differences in poverty, household income, family size and economic participation between iTaukei and Indo-Fijian households.
The report, produced by a commission appointed in 2025, estimates that 36 per cent of iTaukei are now living in poverty, compared with 20 per cent of Indo-Fijians – a reversal of the situation recorded about two decades ago.
“Some thirty years ago, in 2002-03, Indo-Fijians had a slightly higher incidence of poverty (36%) than iTaukei (35%),” the report states.
It attributes the reversal partly to the migration of Indo-Fijians from rural areas to urban centres following the expiry of leases on sugar cane farms.
The review also highlights what it describes as the historically limited participation of iTaukei in Fiji’s formal commercial economy.
It estimates that iTaukei ownership of commercial enterprises remains below 10 per cent, although it acknowledges significant gains in household income over the past three decades.
Household survey data cited in the report shows the iTaukei share of total household income increased from 45 per cent in 1991 to 53.3 per cent in 2019-20.
However, the report says larger household sizes continue to affect living standards. In 2019-20, iTaukei households had an average of 1.67 children aged between zero and 14, compared with 0.73 among Indo-Fijian households.
The review estimates the resulting per-capita income gap at about $2000.
In one of its strongest conclusions, the report links lower iTaukei per-capita income to larger family sizes, stating that “iTaukei are materially poorer because of their decisions to have larger families”.
The report also examines ethnic representation in senior occupations, finding iTaukei accounted for about 48 per cent of legislators, senior officials, managers, professionals and technical workers, compared with 45 per cent for Indo-Fijians.
But it warns that this remains disproportionately low given the iTaukei share of the national population.
The review cautions that persistent economic inequality could have political consequences, particularly where poverty and unemployment intersect with ethnic grievances.
It warns that such disparities could provide “fertile ground” for ethno-nationalist sentiment, drawing parallels with the unrest surrounding the 1987 and 2000 coups.
The report has since been superseded by a Constitution Review Report – compiled by a seven member commission appointed in March to review the 2013 Constitution – that was considered by Cabinet last week and is expected to be presented to Parliament soon.
