Labour migration helps economic growth and development in many countries of the world. The migration-development relationships are, however, critical in small Pacific Island states such as Fiji, where a limited human resource stock exists and the demand for skilled human resources exceeds supply. While the outflow of skilled migrants is seen as conducive to the development of the larger countries of Asia, in smaller states such as Fiji it is regarded mostly as detrimental to sustainable development.

Migration and development relationships can be understood through labour demand and supply relations, demographic changes and remittance-development linkages. The large-scale emigration from Fiji is not only changing Fiji’s population dynamics, it is influencing its political dynamics. Permanent emigration from Fiji has created serious shortages of skilled manpower in the economy. There are ‘some critical areas, such as the medical profession, teaching and other specialized services, where labour shortages were most acute and still exist today’ (Government of Fiji 2002: 42). This has greatly impacted on productivity, thus jeopardising the long-term development process. Due to skilled emigration, the quality of services and the overall human development of the country have been affected to a large extent. This is evidenced in the current UNDP Human Development Report (2005), which shows that Fiji’s Human Development Index rank fell to 92 in 2005 from its previous rank of 66 in 2000. Yet migration also has positive impacts on development, for example, expanding export opportunities for local businesses and increasing traffic for the national airlines. Emigration in Fiji is also seen as a ‘safety valve’ in a situation when the supply of formal jobs has fallen short of the demand of fresh entrants to the labour force.

The growing remittances generated through temporary labour migration from Fiji in recent years might play a significant role in the context of low foreign investment and declining sugar and garment export earnings. Whether remittances are used for ‘consumption or buying houses, or for other investments, they stimulate demand for goods and services in the economy’ and ‘enable a country to pay for imports, repay foreign debt and improve creditworthiness’ (International Organisation of Migration 2005: 269). They also help alleviate poverty. As studies show, personal remittances derived through nurses’ migration from Fiji, for example, have helped family members ‘to pay for general family subsistence, for the welfare of their children and … other traditional obligations in Fiji’ (Rokoduru 2002).