A VOICE OF REASON The writings of Savenaca Siwatibau Edited by Wadan Lal Narsey School of Economics Faculty of Business and Economics The University of the South Pacific i USP Library Cataloguing-in-Publication Data Siwatibau, Savenaca The writings of Savenaca Siwatibau / Savenaca Siwatibau ; edited by Wadan Lal Narsey. – Suva, Fiji : Faculty of Business and Economics, The University of the South Pacific, 2009. vi, 226 p. ; 21 cm. ISBN 978-982-01-0853-0 1. Siwatibau, Savenaca 2. Oceania – Economic policy 3. Leadership - Oceania 4. Corporate governance - Oceania. 5. Corruption - Oceania I. Narsey, Wadan Lal II. Title DU600.S58 2008 320.99611 Cover design Detlef Blumen Printers Quality Print ii Contents Foreword Tributes 1 Eulogy by Jone Dakuvula 2 “Siwa remembered” by Joni Madraiwiwi 11 “The economists’ economist” by Dr T.K. Jayaraman 14 “Siwatibau: role model and icon” by Dr Wadan Narsey 18 The writings of Savenaca Siwatibau Part 1 Macroeconomic policy and stability 25 Macroeconomic management in small economies of the Pacific 26 Macroeconomic policies under adverse conditions: Fiji in 1987 74 Policy discipline from inside or outside? 86 Politics, macroeconomic policies and development in Vanuatu 95 Part 2 Development Issues 119 Managing subordinates, colleagues and bosses 120 Microenterprises and national policy 128 Mainstreaming youth into development 137 Museums and development 141 E-governance and USP 150 Part 3 Good governance, corruption and leadership 162 The National Bank of Fiji: anatomy of disaster 163 Corruption: an impediment to good governance 179 Guarding against the “get rich operators”: some case studies 188 Good corporate governance: the roles of directors 208 Good leadership: launch of 20 th Century Fiji Book 217 iii Foreword by Professor Wadan Narsey Foreword by the Editor This monograph brings together a collection of the writings of Savenaca Siwatibau (Siwa), as well as four tributes to him at his untimely passing due to cancer. Siwa was an exemplary civil servant who gave decades of dedicated service to the governments and people of Fiji, and the region: as Secretary of Finance in the Fiji Government, Governor of the Reserve Bank of Fiji, Head of the ESCAP office based in Vanuatu, and his last professional contribution, as the Vice Chancellor of the University of the South Pacific. Siwa was profoundly committed to the principles of honesty, integrity, disciplined hard work, strong family life, humility, multi-racialism and unwavering adherence to constitutionality and the rule of law. The first part of this monograph contains four tributes: the eulogy given at Siwa’s funeral in Christchurch by Siwa’s vanua representative Jone Dakuvula; the second is an obituary written by Ratu Joni Madraiwiwi for the University of the South Pacific; the third is an appreciation by monetary economist Dr T.K. Jayaraman who knew Siwa professionally for decades; and the fourth is by economist Wadan Narsey, an old friend of Siwa and his wife Suliana, and a developmental commentator on the political economy of Fiji. These four tributes give multi-faceted perspectives on this great “son of Fiji”. Throughout his working life, Siwa made many contributions, as an economist, a leading technocrat and a widely respected social leader of his time. In the development of any country, it is vital that the people learn from the collective wisdom of its leaders who can genuinely be called icons and role models for our citizens. Especially in these troubled times, Fiji needs all the heroes and heroines it can identify. Fiji has very few such persons whose personal and working lives can stand the historical test of close public iv Foreword by Professor Wadan Narsey scrutiny, both during their lifetimes and after their deaths. Savenaca Siwatibau is one of these rare unblemished icons in the history of Fiji. It was important for this country and the region, therefore, that Siwa’s wisdom, as recorded in his writings and presentations, be brought together in one volume for easy reference by students and development practitioners alike. These writings are presented in three sections: those broadly classified as macroeconomic policy advice to Pacific Island countries; a selection on broad development issues; and lastly, articles focusing on corruption, good governance, and leadership. As an economist, Siwa was a constant and powerful advocate for macro-economic stability and fiscal prudence. He provided very sensible economic advice for governments during times of political crisis. Part 1 of this monograph contains four of his articles which contributed in this area to Fiji and the region. An extremely popular speaker, Siwa was often called upon to speak on a whole range of broad development issues. Part 2 of this monograph contains a selection of his numerous presentations, covering human resource management, the role of micro-enterprises, integrating youth into development, the role of museums in our societies, and the potentially powerful role of E-governance. Siwa was personally disappointed by the 1987 and 2000 coups that have devastated Fiji. He believed that bad governance by ineffective leaders, and corruption amongst civil servants and administrators, lay at the heart of Fiji’s development problems. He felt strongly enough about this issue to ensure that one of USP’s Institutes focused on governance issues. This led to the creation of the Pacific Institute for Advanced Studies in Development and Governance (PIASDG). In the last years of his life, and especially after being appointed Vice Chancellor of The v Foreword by Professor Wadan Narsey University of the South Pacific, Siwa gave dozens of hard- hitting lectures on good governance and corruption. These numerous presentations are represented by the five articles that comprise Part 3 of this monograph. During the 2000 coup, some coup leaders appealed to Siwa to become Interim Prime Minister of Fiji. Astonished that the coup leaders expected him to take part in an illegal treasonous takeover of government, Siwa declined the offer. Readers may wish to surmise what Siwa would have thought of the 2006 military coup, its leaders and supporters, local and from abroad. With some of Siwa’s presentations being recorded only as bullet points, there has been some “editorial filling out” to make for easier reading. Suliana Siwatibau and family also assisted with the proof-reading. I am grateful to the Faculty of Business and Economics and its Dean (Professor Biman Prasad) for funding the cover design, as well as the printing of this monograph. Finally, I thank the USP Vice Chancellor (Professor Rajesh Chandra) and the Governor of the Reserve Bank of Fiji (Mr Savenaca Narube) for agreeing to jointly launch this monograph, extremely appropriate, given Siwa’s professional life. Professor Wadan Lal Narsey (editor) School of Economics Faculty of Business and Economics The University of the South Pacific vi Tributes Tributes Siwatibau with Kevin Barnes (Chairman of the Central Monetary Authority of Fiji which eventually became the Reserve Bank of Fiji) and Ratu Yavala Kubuabola (who followed Siwa as Governor), at the 25 th anniversary of the Reserve Bank of Fiji. 1 Tribute: Eulogy for Savenaca Siwatibau (by Jone Dakuvula) Eulogy for Savenaca Siwatibau Jone Dakuvula 1 Siwa’s origins Savenaca Siwatibau was born in Tukavesi Village on November 4, 1940. His mother was Adi Asenaca Mairara and his father, Isaac Driver, from Nabau, Taveuni. Members of this side of the family are with us today. He was a member of the mataqali Vilaca in the yavusa of Kama in the Vanua of Sovatabua. He was raised in Buca, his mother’s village. Education and Career He attended both Natewa and Buca Primary schools and then Buca Levu Provincial School. From there he went to Queen Victoria School where he became Dux in 1958, his last year there. He then went to Suva Grammar for his pre-University year, before going to Auckland University where he obtained Masters of Science degree in Mathematics and Physics in 1963. Siwa was first employed as a meteorologist in Nadi. He started studying Economics at Victoria University in Wellington while attached to the Meteorology office. He then transferred to the Economic Planning office in Suva. In 1968 he went to Sussex University, from where he graduated with a Master of Arts Degree in Economics. He returned to Fiji and became the first Fijian Director of Economic Planning after Independence. Siwa was appointed Permanent Secretary of Finance in 1972 . He became involved in USP as a Government representative on the University Council. He was then _______________________________________________________ 1 Jone Dakuvula, one of the first graduates of USP, is currently working for the Interim Fiji Government. 2 Tribute: Eulogy for Savenaca Siwatibau (by Jone Dakuvula) appointed Alternate Director to the International Monetary Fund in Washington DC in 1978, for two years. On his return to Fiji, he became the first local General Manager of the Central Monetary Authority, a position which was transformed into the first Governor of the Reserve Bank, in 1982. Soon after the coup of 1987, he left Fiji for a fellowship at the Australian National University for six months. In 1988 he was appointed Head of the Economic and Social Commission to Asia and the Pacific (ESCAP) Pacific Operations Centre in Vanuatu where he worked until 2000. He became Pro- Chancellor of USP in 1998 and then took up the appointment of Vice-Chancellor of USP in 2001. Following a brief struggle with cancer, he passed away on Friday October 3, 2003 at Christchurch Hospital. This is a very brief outline of his career, although he was involved in a whole range of other public responsibilities in Fiji and the Pacific region. His life partner, Suliana (Suli) Kaloumaira Although Siwa and Suliana studied at the same time at Auckland University, they first met at a quiz competition between QVS and Adi Cakobau School (ACS).