Vanuatu is an archipelago of over 80 islands scattered over 800 kilometres in the Melanesian sub-region of the Pacific. Vanuatu’s exclusive economic zone covers 680 thousand square kilometres and includes substantial marine resources. The islands of Vanuatu are mostly mountainous of volcanic origin, with narrow coastal plains. Though only 2.5% of the land is arable, subsistence agriculture makes up around 65% of the economy. The climate is tropical and experiences trade winds from May to October, moderate rainfall from November to April and, at times, cyclones from December to April. Generally speaking, it is extremely vulnerable to cyclones, as well as volcanic eruptions and earthquakes (Central Intelligence Agency n.d.).
Vanuatu has an estimated 240,000 population as of 2010. Young people under 14 years of age comprise about 38% of total population, while the proportion of people over 65 years of age is less than 4% of total population. The total dependency ratio for people less than 15 and over 65 years of age to those age 15 to 65, is about 72 (UN DESA 2011). The population of males is slightly higher than females at about 51% versus 49%. The estimated population growth between 2005 and 2010 was 2.5% (UN DESA 2011) and about 98% of the population is indigenous Ni-Vanuatu. The official languages are Bislama, English and French. Additionally, over 100 local languages are spoken in Vanuatu, making it one of the most linguistically diverse countries for the size of the population in the world (UNESCO 2008).
Vanuatu is classified as lower-middle income country by the World Bank (World Bank n.d.). The two largest sectors of Vanuatu’s economy are subsistence agriculture, which provides a livelihood for about 65% of the population and accounts for around 25% of the GDP, and services, primarily tourism and off-shore banking, which make up about 66% of the GDP. Vanuatu has a small light industry, which primarily serves the local market. Vanuatu’s exports base is relatively small, mainly consisting of copra, coconut oil, kava, beef, cocoa, timber and shells. Coconut oil, copra, kava and beef comprise about 75% of agricultural exports. However, relying on agriculture is risky since Vanuatu experiences many cyclones and other natural disasters, which can quickly alter agricultural production. Aside from agriculture, Vanuatu possesses significant marine resources within its exclusive economic zone. Vanuatu‘s primary trading partners are Australia, Japan, the European Union, New Caledonia, Fiji and Singapore (UNESCO 2008).
Vanuatu has a democratic parliamentary system modeled after Westminster. The Legislative branch consists of a Parliament of 52 members who are elected through universal suffrage and serve for four years. Parliament is complemented by an Executive branch headed by the Prime Minister, and a president with limited powers who is elected by an electoral college. The Parliament is advised by the Malvatumauri National Council of Chiefs, made up of kastom chiefs, who offer guidance on issues pertaining to kastom, or tradition. The Council’s main role is to make recommendations for the preservation and promotion of Ni-Vanuatu languages and culture however they have no legislative power or control of monetary resources (Government of Vanuatu and UNICEF 2005). Vanuatu has many political parties in part due to having regions controlled by either French or English-speakers. Thus, no one party dominates Parliament and coalition governments find stabilizing in a meaningful way difficult. Additionally, the distance between islands stymies political cohesion. However, Vanuatu has experienced relative political stability since 2004 (UNESCO 2008).
Vanuatu has six provinces, or Local Government Regions (Malampa, Pénama, Sanma, Shéfa, Taféa and Torba), each with a provincial centre. However, the population is spread out unevenly with over 20% living in the two largest cities of Luganville and the capital city: Port Vila. Most people live in small villages and rural communities (UNESCO 2008). Every region is administered by a Local Government Council with a custom chief serving on each (Parliament of Vanuatu 1980). A provincial board in every province oversees the administration of government schools (UNESCO 2008).
Vanuatu faces many challenges to development. Among these are a limited export base, propensity for natural disasters, a rapidly growing population and inadequate infrastructure. Transporting goods between islands is costly and logistically difficult, while inter-island communication and obtaining electricity are not easy. Additionally, sanitation and water supply are inadequate. In light of this situation, providing government services such as health and education between islands is hard to do. Limited access to education has led to a dearth of skilled workers. Furthermore, the environment for private activity is weak. According to the World Bank’s Ease of Doing Business Index, Vanuatu ranked 76th out of 183 countries for 2012, below Tonga, Samoa and the Solomon Islands (World Bank 2011). Political instability, an insecure transaction framework, and weak property and land rights are factors that stymie growth in the private sector (UNESCO 2008).
