However, since 1987 racial and political tensions have been a steady source of instability and international isolation.
In 1987 a coup by indigenous Fijians overthrew the elected, Indian-dominated coalition. This triggered a series of adverse events, including the introduction - and subsequent withdrawal - of a constitution enshrining indigenous Fijian political supremacy.
A further coup in 2000, led by businessman George Speight, saw the country's first ethnic Indian prime minister, his cabinet and several MPs held hostage for several weeks.
These events caused great harm to the economy - the tourism industry in particular - and Fiji's international reputation.
Rancour over the 2000 coup persisted, with bitter divisions over plans to grant an amnesty to those behind it. The continuing tensions generated by these disputes culminated in a bloodless military takeover in 2006 - Fiji's fourth coup in 20 years.
In September 2009, Fiji was suspended from the Commonwealth over its lack of progress towards democracy. It was only the second full suspension in the organisation's history.
In 2012 the government agreed to hold free elections in 2014, prompting Fiji's powerful neighbours Australia and New Zealand to restore full diplomatic ties. Following the elections the Commonwealth re-instated Fiji as a member.
Fiji's population, which resides mostly on the two main islands of Viti Levu and Vanua Levu, is divided between indigenous Fijians and Indo-Fijians, the descendents of indentured labourers brought from India.
The two groups were of roughly equal numbers until the mid-2000s, by which time coups and agitation had prompted thousands of Indo-Fijians to flee. Indigenous Fijians now make up small overall majority.
Mixing between the two groups is minimal, and informal segregation runs deep at almost every level of society.
There are also very small non-Indo-Fijian, non-Fijian minority communities, such as Chinese and Rotumans.
Although the former British colony relies heavily on the sugar and tourism industries for its foreign exchange, its economy is diverse. Gold, silver and limestone are mined, and there is a strong services sector and some light manufacturing.
Nonetheless, Fiji has been hampered by persistent trade and budget deficits, making it one of the world's largest per capita recipients of aid.

Mole Valley Council will get Â£21m from the developer Barratt Homes if the proposals go ahead.
Nearly 2,800 people have signed a petition against the sale of the allotments. Campaigners say schools and doctors surgeries are "already full".
Council leader Chris Townsend said the plans would provide more housing and financial support for council services.
There are more than 100 plots at the Barnett Wood Lane allotments.
The authority has said more than 100 allotment holders would get new plots and is suggesting a split site with allotments on both the Leatherhead and Ashtead sides of the M25.
Linda Weller, from the Leatherhead Poors' Allotment Society, who organised the petition, said the council had tried to address most of the issues the society had raised.
"We do still have issues with what we're being offered, " she said.
"We need time to go and assess both sites but we're slightly relieved that we're not going to the awful site that they originally dumped us on."
She said wildlife, including at least one badger sett, would be disturbed.
Allotment holder David Wells said local schools and doctors surgeries were already "rammed full" and that the roads were "a nightmare at the moment".
He added: "As a resident for over 60 years I've looked out at the allotments and now to be faced with 500 houses and the development prior to that, well it's not good news."
The Campaign to Protect Rural England (CPRE) Surrey said it would continue to campaign to protect green belt land and open spaces.
"We are extremely disappointed by Mole Valley Council's determination to dispose of a vital community asset and to allow building on adjacent green belt fields," the spokesman said.
"[The council's] approach to the Barnett Wood Lane site indicates a failure to think strategically about the role of Mole Valley's countryside and green belt.
"It also shows a woeful disregard for the needs of local people."
The 800-plus volcanic and coral islands that make up the Pacific nation of Fiji enjoy a tropical climate and host a significant tourism industry.
[NEXT_CONCEPT]
Five hundred homes could be built on allotments and green belt land next to the Leatherhead bypass in Surrey.