Early ballot counting indicates that his party fell far short of a majority in parliament.

"We should respect the wishes of the people, " Mr Rabuka said. "The people have voted and they have voted for change. They have voted us out, don't deny them what they want."

Democracy

The country's first truly democratic election since the coup 12 years ago began on 8 May and ended last Saturday.

Vote counting so far points to a coalition government led by the opposition Labour Party under Mahendra Chaudhry.

Only 27 of 71 parliamentary seats are finalised, but Mr Rabuka's Fijian Party, the SVT, has won only six and the General Voters party allied with it has won one.

His other coalition partner, the Indian National Federation Party, has won no seats so far.

The race issue

The Labour Party led by Mr Chaudhry has captured 11 seats so far.

This raises the possibility that he could be come the nation's first ethnic Indian prime minister, if the public and other parties can overcome their antipathy to Indian rule.

But many political observers say an Indian-led government under Mr Chaudhry would be a provocation to the Fijians and might be toppled by another 1987-style coup.

A way out for Mr Chaudhry's party could be to appoint the leading Labour Party politician Tupeni Baba, a Fijian, as prime minister.

Of nine other seats decided so far, six have been won by opposition parties.

The verdict on the strongman

Mr Rabuka faced the greatest test of his rule as voters chose whether to democratically endorse his rainbow coalition of native Fijians, Indians and other minorities.

The Indians, descended from indentured labourers brought in by British colonialists in the last century to work the sugar plantations, prospered after several generations and ended up dominating business and commerce.

Mr Rabuka, an army colonel, ousted an elected Indian-dominated government in his 1987 bloodless coup. He was supported by Fijian nationalists until recent years.

In May 1992, after leaving the army, Mr Rabuka became prime minister in an election conducted under a constitution his regime drafted.

It guaranteed ethnic Fijians parliamentary supremacy and reserved the offices of president, prime minister and other key posts for them.

The U-turn

In 1997 though, Mr Rabuka joined with his Indian rivals and helped push through constitutional amendments that restored the political and civil rights of Indians.

Although tens of thousands of Indians have fled Fiji since the 1987 coup, they represent about 44% of the population.

Many Fijians still regard the Indians as a threat.

Correspondents say that besides the question of ethnicity, many voters felt that issues like the stalled economy, high unemployment, rising crime and lay-offs in the civil service were more pressing issues in this election.