The central theme of this paper is that a core – periphery structure which was established in Fiji in colonial times has been maintained in the current independent state. The basic structure has not changed and the nature of the relationships between the capitalist mode of production (as the main component of the core) and the village-based mode of production (as a typical mode of the periphery) are supporting the already polarized economic pattern. The current major mechanisms which operate to maintain the basic structure are the pattern of capital allocation, internal migration, the preservation of the village mode of production, and the monopolistic position of the core. These major mechanisms do not differ significantly from past mechanisms although the specific details may vary somewhat. Changes within the structure may occur through a transformation process, in which some basic modification in the production relations and the production forces of the village mode of production may occur. This is regarded as progress and may improve the position of the periphery in relation to the core but does not cause any change of the basic structure.