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Official Name - The Republic of Vanuatu
Land Area - 12,190 sq km - four main islands, eighty smaller islands
Population - 223,000 (2006), Citizens are known collectively as ”ni-Vanuatu”
Capital City - Port Vila, Efate
Religion - Predominantly Christian
Languages - Bislama, English and French. There are also approximately 115 ‘mother tongues’ in common use
Currency - Vanuatu Vatu (VT)
Exchange Rate - VUV 61.85 = NZ$1
(Westpac exchange rates NZ, 9 December 2008)
Inflation - 4% (2008)
Political system - Unitary Republic based on Westminster Parliamentary model
National government - 5 party coalition led by Vanua’aku Pati (NUP)
The Executive - Council of Ministers, made up of 13 Members of Parliament (MPs) chosen and headed by the Prime Minister, who is in turn elected by Parliament
National legislature - Unicameral Parliament, 52 members elected for four-year terms; universal franchise containing an element of proportional representation
Last election - 2 September 2008 (legislature); 16 August 2004 (president)
Next election due - 2012 (legislature); August 2009 (presidential)
Head of State - President HE Kalkot Mataskelekele. The President is appointed for a five-year term by an electoral college drawn from MPs and Heads of Local Government
Head of Government - Hon Edward Nipake Natapei (VP)
Main political parties - Union of Moderate Parties (UMP); Vanua’aku Pati (VP); National United Party (NUP); Melanesian Progressive Party (MPP); Vanuatu Republican Party (VRP), the Greens Confederation (GC)
Key Ministers
Deputy Prime Minister and Minister of Justice and Social Welfare
Hon Ham Lini (NUP)
Minister of Infrastructure and Public Utilities
Hon Serge Vohor (UMP)
Minister of Foreign Affairs and External Trade
Hon Bakoa Kaltonga (VP)
Minister of Agriculture, Quarantine, Livestock, Forestry and Fisheries
Hon Havo Molisale (NAGRIAMEL)
Minister of Finance and Economic Management
Hon Sela Molisa (VP)
Minister of Internal Affairs
Hon Patrick Crowby Manarewo (NUP)
Minister of Youth Development, Sports and Training
Hon Moses Kahu (VP)
Minister of Education
Hon Charlot Salwai (UMP)
Minister of Lands, Geology and Mines
Hon Raphael Worwor (UMP)
Minister of Health
Hon Joe Natuman (VP)
Minister of Trade and Commerce
Hon James Bule (NUP)
Minister of Ni Vanuatu Business
Hon Esmon Simon (MPP)
Speaker of Parliament
Hon George Wells (NUP)
Key Opposition MPs
Sato Kilman (PPP), Leader of the Opposition; Maxime Carlot Korman (VRP); Moana Carcasses Kalosil, (GC);
GDP - US$455 million (2007 estimate)
GDP breakdown - Goods 26%, Services 74%
GDP per capita - US$2203 (2007)
Real GDP Growth (annual % change) - 5.5% (2004); 6.8.% (2005); 7.4% (2006); 6.8% (2007); estimate 6.3 (2008)
Exports (fob) - Vt 3.038 million (2008)
Main exports (fob, Vt million) - Coconut oil - 492, Copra - 485, Kava - 442, Timber - 80, Beef - 180, Cocoa - 221
Main countries of destination - EU (28.7%), New Caledonia (16.2%), Other Melanesia (13.3%), New Zealand (7.8%), Japan (5.2%), Australia (3.3%), ‘Others’ (25.4%)
Imports (cif) - Vt 20,578 million (2008)
Principal Imports (cif, Vt Million) - Machinery & transport equipment - 5,070, Mineral fuels - 3,722, Food & live animals - 3,538, Basic manufactures - 3,315, Misc manufactured goods - 1,961
Main countries of origin - Australia (28.6%), New Zealand (18.6%), Singapore (10.8%), Fiji (10.3%), Japan (3.8%), ‘Others’ (27.9%)
Current Account (2008) - Deficit Vt 17,541 million (goods trade only)
Gross external debt (2008) - Vt 7,634 million
NZ Exports (fob) - NZ$42.1 million (2008)
Main Exports to Vanuatu - Medicaments, Oil (not crude), Iron & steel products, Construction machinery, Wood products
NZ Imports (cif) - NZ$2.7 million (2008)
Main Imports from Vanuatu - Flour & meal, Coconut oil, Rawhides, Meat products, Ferrous waste & scrap
Services Trade - Offshore finance services, tourism
Artefacts and human remains of the Lapita people, the first inhabitants of the Vanuatu archipelago, have been unearthed near Port Vila on Efate island and date back at least 4,000 years. Polynesian voyagers from the east later settled parts of the island group. The first European sailed through the area in 1606, followed by Spanish, Portuguese and French explorers, including Louis Antoine de Bougainville who referred to the islands as a “garden of Eden”. In 1774, Captain Cook explored and charted the islands, which he named New Hebrides (after the Scottish islands). There gradually followed a range of missionaries, black-birders, whalers, sandalwood traders and colonists.
Britain and France established a Joint Naval Commission in the New Hebrides in 1887, which gave equal influence to both countries, and in 1906 the territory became the Anglo-French Condominium (also referred to as ‘the Pandemonium’) of the New Hebrides. Following the Second World War concerns over alienation of land and loss of political independence gradually led to calls for independence. By the mid-1970s, Britain and France conceded to constitutional reform, and with Ni-Vanuatu agitating for further rights, they agreed to elections. On 30 July 1980 the New Hebrides gained independence and became the Republic of Vanuatu. Father Walter Lini was the nation’s first Prime Minister. The struggle for independence by the leaders of the 60s and 70s is a factor in Vanuatu’s subsequent world view and foreign policy.
The last two decades have been marked by political instability and fragmentation of the original political parties, first founded on linguistic lines. Successive governments have been characterised by multi-party coalitions preoccupied with political survival rather than strategic policy-making. A core of long-serving politicians, from whom the senior leadership is typically drawn depending on the balance of power, is supplemented by ambitious newcomers and one-term candidates. The political culture generally reflects the Ni-Vanuatu tradition of “big man” patronage. Party infighting often features among MPs dissatisfied with the positions they have been allocated by leaders in return for support. There are frequent Motions of No Confidence, which create an unwanted distraction from government business.
In the period 2003-2004 there were three Prime Ministers in quick succession following a series of reshuffles and the internal disintegration of PM Edward Natapei’s coalition-leading Vanua’aku Pati (VP). The next government led by francophone Serge Vohor was strongly nationalistic and concerned at Vanuatu’s apparent dependence on Australia and New Zealand. Against the wishes of his Ministers, Vohor also sought to switch recognition from China to Taiwan. After only six months in power, that government lost a vote of no confidence and in December 2004 Ham Lini (a younger brother of Fr Walter Lini) became Prime Minister. Subsequently Lini was able to govern for nearly four years, despite frequent challenges to his leadership, a period which provided relative political stability to Vanuatu.
The most recent elections were held in September 2008, with the VP the most successful party and best-placed to lead the formation of a five-party coalition. Edward Natapei became Prime Minister for the second time. By December 2008 his administration had already withstood several Motions of No Confidence. The last of these was withdrawn by the Opposition due to Natapei’s coalition having establishing a more solid support base. Vanuatu politics remains prone to instability due to the fluctuating allegiances of individual MPs.
The majority of Vanuatu’s population is engaged in rural subsistence agriculture. Vanuatu's formal economy is narrowly based on tourism, property investment and agriculture, with the principal exports being coconut oil, copra, kava, timber, beef and cocoa. The tourism industry has picked up since 2006 through improved airline services, although growth has been slow in contrast to some other Pacific Island destinations. World prices for some agricultural products fluctuate, affecting profitability. The services sector also continues to grow well – thought to now account for approximately 80% of government revenue.
In the last five years Vanuatu’s economy has shown encouraging signs of sustained growth, after more than a decade of stagnation. This has been driven by foreign investment in services, tourism and land development - attracted by Vanuatu’s recent relative political stability and successful institutional reforms. Remittances flowing from Vanuatu’s involvement in the Recognised Seasonal Employer (RSE) scheme are likely to have a significant impact on the economy. Real GDP growth from 2004 to June 2008 has been consistently above 5%, reaching a high point of 7.4% in 2006. In 2007-08 inflation rose from a steady low base of around 1.8% to an estimated 4%.
Vanuatu’s rapid population growth, currently estimated to be rising by 2.6% per year, is offset by the strengthening economy which sustains increasing GDP per capita. This overall indicator masks a widening gap in wealth distribution across Vanuatu society. Unemployment is increasing in some communities, especially around the main towns of Port Vila and Luganville.
The Government pursued an Asian Development Bank (ADB)-funded Comprehensive Reform Programme (CRP), aimed at restructuring the economy and government in order to support sustainable growth and deliver improvements to the quality of life for Ni-Vanuatu. This ADB strategy promoted economic growth oriented on the private sector. The outcome of the CRP is judged to have been patchy, and donors such as Australia, New Zealand and the European Union continue to support ongoing work in governance and economic development.
The Millennium Challenge Corporation Board (MCC), a US Government organisation, entered into a five-year US$65.69m Compact with Vanuatu involving eleven infrastructure projects for roads, wharfs, an airstrip and warehouses. The Compact aims to promote economic growth through improving access to transportation services and reducing transportation costs for Ni-Vanuatu. It also aims to bolster the mechanisms in Government to ensure sustainable operation and maintenance of Vanuatu’s entire transport infrastructure network – not only those assets built or rehabilitated with MCC funds. A New Zealand company tendered successfully for all MCC-funded contracts and construction on the first MCC-funded road project started in the second half of 2008. However, due to a number of difficulties with budget estimates, the Compact has had a major shortfall in funding. It was unable to complete the second of the two major road projects, until NZAID committed to provide the remaining funding. The remaining nine of the original eleven agreed projects have been set aside for other donors to assist, with AusAID taking a lead role.
After negotiations with the OECD, Vanuatu has been removed from the OECD list of non-cooperative jurisdictions under the Harmful Tax Initiative. Vanuatu is not a member of the World Trade Organisation, but in 2008 committed to re-starting membership negotiations. Vanuatu is part of the Pacific Island Countries Trade Agreement (PICTA).
Vanuatu joined the Commonwealth and the Pacific Islands Forum (then known as the South Pacific Forum) on independence in 1980. A year later, it joined the United Nations. It is also a member of the World Bank, Asian Development Bank (ADB) and the International Monetary Fund (IMF). As a member of the Africa Caribbean and Pacific (ACP) group, Vanuatu enjoys preferential trade links with the European Union. Vanuatu is a member of the Melanesian Spearhead Group (MSG), whose aims include establishing a Melanesian free trade area. The MSG Secretariat opened in Port Vila in May 2008, and Vanuatu currently holds the chair of this group. Vanuatu takes a close interest in the West Papua issue.
Defence links between New Zealand and Vanuatu were established in 1986 under the NZDF Mutual Assistance Programme. An exchange of letters on defence co-operation was signed in 1991. The New Zealand Defence Adviser, Lt Col Gordon Milward, based in Port Moresby, is accredited to Vanuatu. The RNZAF makes regular fisheries surveillance visits over Vanuatu’s Exclusive Economic Zone (EEZ). In 2006, 15 NZDF personnel, comprising mostly New Zealand Army Engineers, were deployed to Vanuatu to assist in the reconstruction of the Luganville Police Barracks into a new corrections facility. NZDF worked closely with the Vanuatu Police Force and the Vanuatu Mobile Force in completing this NZAID-funded project. Defence links have also been strengthened by joint participation in the Bougainville Peace Monitoring Group and peacekeeping in East Timor. Vanuatu contributes to the Regional Assistance Mission in the Solomon Islands (RAMSI), and will second two police officers to the New Zealand Police contingent in the Bougainville Community Policing Project.
The number of New Zealanders travelling to Vanuatu is growing. New Zealand is the second-largest source of visitors after Australia; just over 13,600 New Zealanders arrived by air during 2007, with further numbers coming through Port Vila on day excursions from the many cruise ships which call.
New Zealand does not have a reciprocal visa waiver agreement with Vanuatu. New Zealand passport holders are granted an initial tourist visa for 30 days on arrival. This may be renewed month by month to a maximum of four months. All foreign visitors are required to hold a valid outward ticket. Applicants’ passports must be valid beyond six months of arrival in Vanuatu. Vanuatu residency may be granted to both investors and workers provided certain conditions are met.
Ni-Vanuatu citizens wishing to visit or transit through New Zealand require visas. Visitors’ visas can be granted to a maximum stay of nine months within any 18-month period.
NZAID works with Vanuatu in the areas of good governance (Corrections Service and Supreme Court, land reform and support for civil society organisations); education (basic education, including institutional strengthening of the Ministry of Education, and tertiary scholarships and vocational training); and economic development (road and sea transport, private sector-led economic growth, agricultural extension, growth of rural productive sector and livelihoods, and delivery of basic public services, particularly water). Efforts are being made to ensure that assistance benefits rural men, women and children, who represent over 80% of Vanuatu’s population.
NZAID’s bilateral funding allocation for Vanuatu is NZ$17 million in 2008/09, with a projected increase to NZ$20 million in 2009/10, subject to absorptive capacity. The 2008/09 Forward Aid Programme allocates 36% to Education, 30% to Economic Development, 39% to Strengthening Governance and 5% to the Small Projects and medical schemes. The Vanuatu Correctional Services project is a major current initiative, with the construction of a new prison in Port Vila and on-going capacity building and institutional strengthening of the fledging Correctional Services Department. Funding for basic education is the second major initiative, with close harmonization with AusAID and an aim to achieve a Sector Wide Approach (SWAp). Sectoral support to the primary sector is also being planned.
Vanuatu also benefits directly from regional NZAID programmes focused on law and justice, good governance, environment, health, education and trade/economy; and through NZAID's support to regional agencies such as the University of the South Pacific, the Secretariat of the Pacific Community, the South Pacific Regional Environment Programme, the Forum Fisheries Agency, and the South Pacific Applied Geoscience Programme. Overall, these non-bilateral sources total NZ$2-3 million per year.
New Zealand’s links with Vanuatu are long-standing, dating back to Bishop Selwyn and the founding of the Melanesian Mission in 1849. Diplomatic relations were established following Vanuatu’s independence in 1980. A resident New Zealand High Commission was established in 1987 in Port Vila, with accreditation prior to that coming from Honiara. Both countries enjoy a regular programme of high-level visits and exchanges, and have been working together to develop a number of bilateral initiatives aimed at strengthening the relationship and supporting Vanuatu’s development goals.
In October 2006 Vanuatu was selected as one of five Pacific “kick-start states” facilitated for the Recognised Seasonal Employer (RSE) scheme. This scheme enables Ni-Vanuatu unskilled and semi-skilled workers to find temporary employment in the horticulture and viticulture sectors in New Zealand. New Zealand employers have shown considerable interest in recruiting temporary labour from Vanuatu, with some 1700 workers travelling to New Zealand in the first season. The RSE scheme adds another strand to the people-to-people links between New Zealand and Vanuatu, as well as providing a financial boost to a number of Ni-Vanuatu families. The full economic impact of remittances flowing from the scheme will take several years to assess fully, but initial trends show that these are likely to exceed any individual goods export by the middle of 2009.
The Safe Travel website provides a travel advisory for travellers to Vanuatu [external link].
