Neoliberal Globalisation, “Exotic” Agro‐exports, and Local Change in the Pacific Islands: A Study of the Fijian Kava Sector

Abstract

The economically vulnerable and geographically isolated states and territories of the Pacific Islands find themselves increasingly powerless to resist the recent accelerated diffusion of globalisation and the economic options that this entails. Neoliberal policy has arrived in the ocean region later than elsewhere in the tropical world and in the developing world in general. However, it now almost exclusively frames regional and state policy agendas, and is profoundly restructuring economies and societies across the region. Agriculture, by far the leading economic sector in Pacific Island countries, has been targeted specifically for reform. The cultivation of non‐traditional agricultural exports has formed the centrepiece of the evolving strategy. As well as “staple” exports such as sugar, copra, and taro going to non‐traditional markets, “exotic” niche products are being developed for export to high income markets in Europe, Asia and North America. A major example of such a product is kava – a “traditional” crop used in the preparation of a ceremonial and/or social drink. Psycho‐ and physiological properties have been identified in the plant by the pharmaceutical industry that is marketing a range of kava products. Produced widely across the Pacific, Fiji is the major export source. This paper traces the evolution of globalisation in the Pacific Islands, placing the current wave of neoliberalism in its historical context. It goes on to outline the evolution of the Fijian kava export sector, and investigates some of the local socio‐economic impacts of recent market growth. Given the evidence presented in this study, the paper asks if the power relations evolving under contemporary neoliberal globalisation are likely to be any different from those that existed during colonial globalisation.

Kava—the Unfolding Story: Report on a Work-in-Progress

“…The herb is also prepared as an emulsion (also traditionally prepared without heating) in coconut milk (Johnson, 1999). The efficiency of extraction of the active constituents, which is measured by kavalactone extraction into water, varies considerably (Murray, 2000) but is higher from fresh material than from the dried plant. Kava consumed in Vanuatu is reputed to be the strongest anywhere in the South Pacific.…”

“…In 1998, it was among the top-selling herbs in the United States, with a turnover of $8 million, representing a growth rate of 473% . It is possible that the current hepatotoxity problems are, to some extent, a consequence of poor quality control caused by a rapid and extraordinary increase in the size of the market (Murray, 2000).…”

‘The Taste of Paradise’: Selling Fiji and FIJI Water

“…Global market access has thus tended to be effectively subsidised (as in the case of garments and sugar from Fiji) or has taken the form of very small niches (such as ylang-ylang from the Comoros). However, the former is at risk from movements towards global free trade whereas successful niches are often replicated elsewhere, as has been the case with Pacific kava exports, mainly from Fiji (Murray, 2000), or experience excessive domestic competition. Despite such constraints, in the past decade one very successful niche export has been developed in Fiji -bottled mineral water.…”

Neoliberalism, Corporations, and Power: Enron in India

“…In Zimbabwe, the textile, clothing, and footwear industries virtually collapsed following the adoption of the World Bank's recommendations vis-à-vis economic liberalization and structural adjustment (Carmody 1998), and the urban poor have been badly affected by the retreat of the state from welfare subsidies, resulting in sharp increases in food prices (Drakakis-Smith 1994). Similarly, neoliberalism has had negative impacts, ranging from environmental degradation to growth of political authoritarianism in Cambodia (Springer 2009), southern Mexico (Klepeis and Vance 2003), island countries in the Pacific (Murray 2000), Nigeria (Lado 2000), South Africa (Lado 2000;Peet 2002), Ghana (Logan and Mengisteab 1993), and Somalia (Samatar 1993). Geographers, however, have severely neglected the unfolding and impact of neoliberalism in India.…”