Chapter 15 Did Overseas Development Assistance Improve Developmental Goals and Climate Resilience in Fiji?

This chapter seeks to assess if there is any evidence that overseas development assistance (ODA), through its influence upon the climate-resilient grants and development grants, has impacted Fiji's developmental goals and climate resilience as a Small Island Development State (SIDS). To broaden the framework, it develops and applies two indicators of development and climate resilience for Fiji and seeks to establish – from the time series analysis – if these indicators bear a long-term and equilibrium relationship with the ODA for Fiji. By exploiting a suitable data set, it brings three important insights into the literature on climate shocks from global warming for SIDS. There are three critical elements found from the study: first, ODA did not play any role in reducing underdevelopment (DVIT) in Fiji. Secondly, ODA played an important role in increasing sustainability, or resilience, in Fiji: an increase in ODA by 1% increased sustainability, or resilience measured by the sustainability index SUS, by 0.24% at 1% level of significance. Finally, it is noted that oil price hikes compromised Fiji's resilience or sustainability. In the short-run, both ODA and OILP compromised the sustainability of Fiji.