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GEOGRAPHY
Fiji is comprised of a group of volcanic islands in the South Pacific lying about 4,450 km. (2,775 mi.) southwest of Honolulu and 1,770 km. (1,100 mi.) north of New Zealand. Its 322 islands vary dramatically in size. The largest islands are Viti Levu, about the size of the "Big Island" of Hawaii, and where the capital and 70% of the population are located, and Vanua Levu. Just over 100 of the smaller islands are inhabited. The larger islands contain mountains as high as 1,200 meters (4,000 ft.) rising abruptly from the shore.

Heavy rains--up to 304 cm. (120 in.) annually--fall on the windward (southeastern) sides of the islands, covering these sections with dense tropical forest. Lowlands on the western portions of each of the main islands are sheltered by the mountains and have a well-marked dry season favorable to crops such as sugarcane.
 

PEOPLE
Most of Fiji's population lives on Viti Levu's coasts, either in Suva or in smaller urban centers. The interior of Viti Levu is sparsely populated due to its rough terrain.

Indigenous Fijians are a mixture of Polynesian and Melanesian, resulting from the original migrations to the South Pacific many centuries ago. The Indo-Fijian population grew rapidly from the 60,000 indentured laborers brought from India between 1879 and 1916 to work in the sugarcane fields. Thousands more Indians migrated voluntarily in the 1920s and 1930s and formed the core of Fiji's business class. Native Fijians live throughout the country, while Indo-Fijians reside primarily near the urban centers and in the cane-producing areas of the two main islands. Nearly all of indigenous Fijians are Christian; more than three-quarters are Methodist. Approximately 80% of Indo-Fijians are Hindu, 15% are Muslim, and around 6% are Christian.

Some Indo-Fijians have been displaced by the expiration of land leases in cane-producing areas and have moved into urban centers in pursuit of jobs. Similarly, a number of indigenous Fijians have moved into urban areas, especially Suva, in search of a better life. Meanwhile, the Indo-Fijian population has declined due to emigration and a declining birth rate. Indo-Fijians currently constitute 37% of the total population, although they were the largest ethnic group from the 1940s until the late 1980s. Indo-Fijians continue to dominate the professions and commerce, while ethnic Fijians dominate government and the military.

ECONOMY
Fiji is one of the more developed of the Pacific island economies, although it remains a developing country with a large subsistence agriculture sector. In 2010, Fiji's economy grew by 0.1%. For 2011, the government forecasts a 2.7% growth rate. The government’s year-end 2011 inflation forecast is 7.0%.
 

For many years sugar and textile exports drove Fiji's economy. However, neither industry is competing effectively in globalized markets. Fiji's sugar industry suffers from quality concerns, poor administration, and the phasing out of a preferential price agreement with the European Union that led to sugar price reductions of 36%. The European Union promised a large amount of financial aid to assist the ailing sugar industry, but, post-coup, has clarified that the aid will only be forthcoming if Fiji improves its human rights situation and moves quickly toward democracy. In 2010, the Fiji Government began implementing industry reforms, but cane and sugar production levels continue to decline.

In 2005, the textile industry in Fiji markedly declined following the end of the quota system under the Agreement on Textiles and Clothing (ATC) and the full integration of textiles into the World Trade Organization (WTO) General Agreement on Tariffs and Trade. The income from garments plummeted by 47% in 2005 with the end of the ATC quotas. Garments now account for around 9% of Fiji's exports and sugar approximately 20.9%. Other important export crops include coconuts and ginger, although production levels of both are declining. Fiji has extensive mahogany timber reserves, which are being exploited. Fishing is an important export and local food source. During January to September 2010, fish was the leading domestic export. Gold from Fiji’s only gold mine is also an important export industry and is expected to continue its positive performance with rising gold prices.

The most important manufacturing activities are the processing of sugar and fish. From 2000 the export of still mineral water, mainly to the United States, had expanded rapidly before decreasing in 2009. Water exports in the first three quarters of 2010 (January-September) totaled around U.S. $47.98 million (F$87.3 million).

In recent years, growth in Fiji has been largely driven by a strong tourism industry. Tourism has expanded since the early 1980s and is the leading economic activity in the islands. Tourist arrivals grew by 16.3% in 2010. About 45% of Fiji's visitors come from Australia, with large contingents also coming from New Zealand, the United States, the United Kingdom, and the Pacific Islands. In 2010 more than 53,000, or around 8.4%, of the tourists were American. Fiji's gross earnings from tourism from January to November 2010 totaled $399.9 million (F$727.7 million), more than the combined revenues of the country’s top five exports (fish, water, garments, timber, and gold). Gross earnings from tourism continue to be Fiji's major source of foreign currency.

Although tourism revenues yield a services surplus, Fiji runs a persistently large trade and current account deficit. The trade deficit in 2010 was expected to decrease by 15% to $738.9 million (F$1.3 billion) compared with 2009. Australia accounts for between 25% and 35% of Fiji's foods trade, with New Zealand, Singapore, the United States, the United Kingdom, and Japan varying year-by-year between 5% and 20% each. Since the 1960s, Fiji has had a high rate of emigration, particularly of Indo-Fijians in search of better economic opportunities. This has been particularly true of persons with education and skills. The economic and political uncertainties following the coups have added to the outward flow by persons of all ethnic groups. Indigenous Fijians also have begun to emigrate in large numbers, often to seek employment as home health care workers. Remittances from overseas workers, which grew 14% from January to May in 2010 compared with the same period in 2009, are second only to tourism as a source of foreign exchange earnings.

FOREIGN RELATIONS
Fiji has traditionally had close relations with its major trading partners Australia and New Zealand. Currently, a number of countries including Australia, New Zealand, and the United States have placed targeted sanctions on the unconstitutional de facto government. Fiji has pursued closer relations with a number of Asian countries, including the People's Republic of China, Indonesia, and India.

Since independence, Fiji has been a leader in the South Pacific region. Fiji hosts the secretariat of the 16-nation Pacific Islands Forum (PIF), as well as a number of other prestigious regional organizations. However, in May 2009, the PIF suspended Fiji’s membership for failing to declare elections before the deadline set by the organization. Fiji became the 127th member of the United Nations on October 13, 1970, and participates actively in the organization. Fiji's contributions to UN peacekeeping are unique for a nation of its size. It maintains about 600 soldiers and police overseas in UN peacekeeping missions, primarily in Iraq, MFO Sinai in the Middle East, Sudan, and Liberia. Fiji also has a number of private citizens working in Iraq and Kuwait, mostly in security services, and over 1,500 citizens serving in the British Army.