A Critical Analysis of Performance of the Fiji Development Bank; 2001-2010

The Fiji Development Bank (FDB), which was established in 1967 as a fully state-owned development bank in Fiji, has been mandated with the functions: To facilitate and stimulate the promotion and development of natural resources, transportation and other industries in Fiji giving special consideration and priority to the economic development of the rural and agricultural sectors. Although FDB is not a supervised entity under the Reserve Bank of Fiji (RBF), it follows certain guidelines issued by RBF. This paper seeks to assess the performance of the FDB during the ten years from 2001 to 2010 by focusing on the strategic, financial and accountability issues. The study findings are that: (i) The strategic direction is weak, not growth oriented rather sustainability-focused; (ii) the objectives announced are not explicitly SMART (specific, measurable, achievable, realistic and time-bound); (iii) financial management is conventional, overly risk-averse and therefore costly; and (iv) standard of financial reporting lacks professionalism. The recommendations are that the FDB should: (i) Formulate more pragmatic strategic plan and intently monitor its implementation using results-driven management tools/technologies and skills/expertise; (ii) introduce a well articulated performance-based rewarding system to promote team effort among staff towards achieving its goals; and (iii) seek professional services to supervise for areas where special expertise are essential