Economic Cost of Human Capital Loss from Fiji: Implications for Sustainable Development1

Small island nations in the South Pacific are facing a serious problem of loss of human capital. The loss of skilled and qualified personnel from the small pool is causing a major setback in terms of providing the technical expertise to forge ahead with reform programs that these economies are undertaking. Fiji's policymakers are increasingly confronting this issue, because the nation has experienced a massive outflow of skilled labor following the political instability in 1987. While there is an outflow of skilled labor, the country is also losing a large amount of financial capital. The extent of the outflow has yet to be measured due to lack of a methodology. This study advances a methodology to measure the loss to the economy arising out of human capital loss in a small island economy.