Answer to Question #242711 in Microeconomics for Graylin Lapi

Question

As announced in the 2021-2022 National Budget, the Fijian Government is supporting formal and informal sector employees on Viti Levu who are affected by the pandemic through monthly payments of $120 for a period of six months (August 2021 – January 2022). The Fiji Sun dated 23^rd August, 2021 reports “Attorney-General and Minister for Economy yesterday tweeted that: “Days ahead of schedule, we have met the once-in-a-century COVID-19 crisis with one of the largest assistance payouts in history. $72m was paid in unemployment benefits to 200,000 Fijians. In the coming days, we’ll reach 60,000 more bringing the total payout to around $94m.”

As an economist you are trying to assess this COVID-19 benefit scheme. In the essay critically evaluate the above COVID-19 Unemployment Assistance from the Fijian Government.  Follow the rubric below – have an introduction, body and conclusion. 

Answer 1

When Fiji confirmed its first case of COVID-19, there was a surge of panic shopping seen in supermarkets in Suva, Lautoka and Labasa. On March 18, the Reserve Bank of Fiji cut its overnight interest rate (OPR) [a] and predicted that the domestic economy would go into recession after decades of economic growth. GDP is expected to contract sharply in 2020, with the economy expected to contract 21.7% in the same year due to low tourism activity. Annual inflation remained in negative territory in May (-1.7%) and is projected to rise to 1.0% by the end of the year.

In April, the Construction Industry Council announced that they were already experiencing a slump in construction projects due to a lack of raw materials. Aug 2 International Labor Organization An estimated 115,000 Fijian workers have been affected by the COVID-19 pandemic, adding that sectors affected include tourism, retail and manufacturing.

Barter trading has become popular on a Facebook group called “Barter for Better Fiji,” as Fijians prefer cashless trading. [90] U.S. broadcaster CBS has postponed production of the reality show Love Island and The Survivor in Fiji, with Love Island later being relocated to Las Vegas for its second season and 41st season of The Survivor pushed back to 2021.

On October 10, the International Labor Organization and the Asian Development Bank released a report that said the youth unemployment rate will rise to 18 percent. A report released by the Fiji Bureau of Statistics shows that 1,000 people visited Fiji in September 2020, up from 81,354 visitors last September. He also said that more than 500 Fijians have left the country in search of short-term jobs.

On February 5, the FBC reported that at a bus stop, a local Chinese man was publicly criticized by a man claiming that his victim had COVID-19. On March 3, a 24-year-old man lied to a nurse and doctor about COVID-19, adding that he had returned from Japan, in which he did not wear a medical mask. He was detained and investigated, during which the authorities learned that he had not traveled. On October 22, he was sentenced to six months in prison.

Opposition Fijian MP Mitieli Bulanauka mentioned that COVID-19 was spread by evil forces to help China and they are responsible for the crisis we are in, helped by satanic forces. Bulanauka also said the World Health Organization (WHO) has sided with China over the mistreatment of the COVID-19 outbreak. The Chinese Embassy in Fiji condemned Bulanauka's statements, saying he was shocked and disappointed that Bulanauka’s statements were untrue and were taken from fake social media pages.

The Fiji Women's Crisis Center received an increase in domestic violence cases during isolation with a national domestic violence helpline in April received over 500 calls. Also, the Ministry of Women, Children, and Poverty Alleviation has recorded more than 1000 cases of attacks on women. The pandemic has also affected the supply of medicines to the local population. cancer patients, health centers, and hospitals.