POLS 1503 Learning Journal Unit 8

After reading through the unit’s materials, consider your own country. Explain how country
debt and aid impact a society’s overall well-being. Describe your own observations of the
widening gap between the rich and the poor.
The journal entry should be about a page in length. If applicable, be sure to cite any resources
you use to support your learning journal.

Impact of Fiji’s Debt and Aid on Society

Throughout history since independence, Fiji's debt has continually increased as

governments have continuously run deficits. It is likely that Fiji will remain indebted for a
long while. Fiji's national debt in 2021 was approximately 3.53 billion U.S. dollars
(O’Neill, 2022). The rising level of debt inhibits a nation's ability to grow economically in
the long term. The high debt load is part of the reason Fiji's growth has been slow and
development progress has been delayed. High public debt may negatively impact
capital stock accumulation as well as economic growth through higher long-term
interest rates, high unfavorable taxes, inflation, and fiscal policy constraints. This may
prove to be harmful to economic activity as well as a source of greater instability.

Fiji must prepare for economic survival independently because we don't know for
certain that growth and recovery projections from the World Bank, IMF, or ADB are
reliable. The fact that an institution like the IMF or ADB continues funding (or promises
to do so) is no guarantee of performance or sustainability. Such external funding may
not even be helpful in case domestic production cannot be sustained.

My observations of the widening gap between the rich and the poor in Fiji: Increasing
the supply of skilled labor and reducing income inequality due to differences in
education, minimum wage legislation, and subsidization of products, are just some of
the government initiatives to reduce the economic inequality faced in Fiji. However, the
main cause behind rising income gaps in Fiji is greater inequality in wages and salaries
since higher-skilled workers have benefited more from technological advancements
than lower-skilled workers. Furthermore, industrialization has also contributed to
widening the gap between the rich and the poor due to the division of labor and capital.
This has resulted in a higher disparity of income and wealth with those owning capital,
raising excessive profits from their business activities. Other factors that impact
economic inequality in Fiji include taxes, gender, culture, racism, technological changes,
and education.
The increase in income gap between the rich and the poor continues to widen. In Fiji,
the traditional tribal structure is still preserved where the land is controlled by tribal
chiefs who acquire most of the economic benefit. Even with the apparent rate of poverty
and inequality and the concerns raised, many politicians and diplomats deny the
problem and downplay its importance.
Reference
O’Neill, A. (2022, June 16). National debt of Fiji. Statista. Retrieved from
https://www.statista.com/statistics/531576/national-debt-of-fiji/

Thank you, Professor Kessler. This was an interesting course for me personally,
learning a long side my peers have helped me grasp so much about the world and
globalization in these 8 weeks that has opened my eyes to a lot of things happening
around the world.

Grade 10.00 / 10.00
Hello, Titilia.
This is a great journal! Your observation on the Fiji’s debt, poverty and income inequality
has the merit of large credibility for such demonstrative arguments and illustrations
from which your conclusion is stated. You correctly answered all the questions of the
topic; analysis and writing methods requirements are also met.
I appreciate the fact you are able to construct a thesis with robust reasoning on these
global problems of poverty and income inequality which can be more an inequality in
opportunity than in global wealth distribution.
Please receive all my wishes for your academic and professional career. 
Grade 10.00 / 10.00