The decollectivizing impacts of Fiji's post-1990 economic reforms upon its labour market institutions have aggravated its economic vulnerabilities. Accelerated internationalization of its economy has meant that the market coordinating capabilities of labour market institutions have been eroded. Weakened labour market institutions have harmed state capacity to deal with social exclusion and economic marginalization. It has also inhibited its ability to direct small- to medium-scale enterprises towards competitive growth.
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