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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)
Capital City - Port Vila, Efate
Languages - Bislama, English and French. There are also approximately 115 ‘mother tongues’ in common use
Currency - Vanuatu Vatu (VT)
Exchange Rate - NZ$1 = Vt 72.0816 (Feb 2008)
Inflation 2.8% (June 2007)
Political system - Unitary Republic based on Westminster Parliamentary model
National government - 8 Party Coalition led by National United Party (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 - 6 July 2004 (legislature); 16 August 2004 (president)
Next election due - September 2008 (legislature); August 2009 (presidential)
Head of State - President 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 Ham Lini (NUP)
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)
GDP Vt 40,178 m (2005)
GDP per capita Vt 180,170 (2006)
Real GDP Growth (annual % change) 5.5% (2004); 6.8.% (2005); 5.5% (2006); predicted 5% (2007)
Exports (fob ) Vt 4,079m (2006)
Imports (cif) Vt 17,744m (2006)
Main exports (fob, 2006, Vt million) -
Kava 698;
Beef 332;
Copra 324;
Timber 306;
Cocoa 277
Main countries of destination (2006) EU 44.9%, Australia 12.1%, Japan 6.8%, New Caledonia 4.6%, Other Melanesia 8.3%, ‘Others’ 29.8%
Principal Imports (cif 2006, Vt Million) -
Machinery & transport equipment 4,565;
Food & live animals 3,233;
Basic manufactures 2,856;
Misc manufactured goods 2,118;
Mineral fuels 2,098
Main countries of origin (2006) Australia (40%), New Zealand (18%), Fiji (9%), Singapore (4%), ‘Others’ (20%)
Trade Deficit (2006)
Vt13,665m
Consumer Price Inflation (2006)
2.8% (avg)
Total external debt (2005)
9,012 million Vatu
Trade break down - Services are thought to account for approximately 70% GDP, Agriculture 20%, and Industry 10%
NZ Exports (fob) - NZ$23.03 million (for year ended June 2007)
Main Exports to Vanuatu - Pharmaceutical products, iron and steel products, mineral fuels, wood, refrigerators
NZ Imports (cif) - NZ$0.582 million (for year ended June 2007)
Main Imports from Vanuatu - Cooking oils, hides and skins, fruit and vegetable products, aircraft parts
Artefacts and human remains at least 4,000 years old have recently been unearthed in Vanuatu on Efate, near Vila. These were the Lapita people who were the first inhabitants of the archipelago. Polynesian voyagers from the east later returned and settled parts of the group. The first European to reach Vanuatu was Portuguese explorer Pedro Fernandez de Quiros who sailed through the islands in 1606. Thinking he had found the Australian Continent, he named them Tierra Australia d’Espiritu Santo. Spanish, Portuguese and French explorers followed, including Louis Antoine de Bougainville, who referred to them 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 became the nation’s first Prime Minister. The struggle for independence by the leaders of the 60s and 70s is a factor in Vanuatu’s world view and foreign policy.
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The last 15 years have been marked by political instability and fragmentation of the old parties. The most recent elections were held in July 2004. A series of reshuffles from the end of 2003 were not sufficient to stave off the end of former Prime Minister Edward Natapei’s three years at the helm, brought about mainly by the deepening division within his own Vanua’aku Pati. A coalition led by Serge Vohor (as PM) gained power. It was bolstered by support from Ham Lini’s National United Party, but remained unstable because of political infighting among MPs dissatisfied with the positions they had been allocated. Seven parties were represented in the Cabinet. The new government was strongly nationalistic and was concerned at Vanuatu’s apparent dependence on Australia and New Zealand, and was sensitive about the role of expatriate advisors. Against the wishes of his Ministers, Vohor sought to switch recognition from China to Taiwan. Vohor lost a vote of no confidence in December 2004, and then-Deputy Prime Minister, Ham Lini, became Prime Minister. PM Lini formed a coalition of 11 parties, with 9 represented in cabinet. Over the past two years the Lini-led government has enjoyed a good degree of stability and has undone some of the more deleterious features of the Vohor government. Most Opposition attempts to unseat Lini by depositing motions of no-confidence have received little support – although mid-2007 saw Lini agreeing to a major reshuffle of ministerial portfolios in order to maintain stability of the Government. PM Lini currently leads a 8 party coalition.
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 copra, kava, timber, beef and cocoa. The tourism industry has picked up in the last year 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.
Vanuatu’s economy is showing encouraging signs of growth after more than a decade of stagnation. Sustained strong growth has been driven by foreign investment in services, tourism and land development - attracted by Vanuatu’s relative political stability and successful institutional reforms. Remittances flowing from Vanuatu's involvement in the RSE scheme are likely to have a significant impact on the economy. For 2005, the IMF reported an increase in Vanuatu’s real GDP to 6.8%, and 2006 GDP growth was over 5%. Inflation remains low at around 2.8% of GDP.
Despite a strengthening economy, economic growth is failing to keep up with the rapid population growth which is estimated to be increasing by 2.6% per year, thus leading to a declining per capita GDP and increasing unemployment, especially around Vila and Luganville.
The Government has been pursuing 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 promotes economic growth oriented on the private sector. The outcome of the CRP has been patchy and donors such as Australia, New Zealand and the European Union are supporting ongoing work in governance and economic development.
The Millennium Challenge Corporation Board (MCC), a US Government organisation, has approved a five-year US$65.69m Compact with Vanuatu including up to 11 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. Two New Zealand companies were short listed for the construction contract. the three to. However, construction has been held up due to a significant shortfall between available funds and projected costs to complete the 11 projects.
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 is part of the Pacific Island Countries Trade Agreement (PICTA) and the Melanesian Spearhead Group (MSG).
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 strong supporter of the Melanesian Spearhead Group (MSG), whose aims include establishing a Melanesian free trade area. Vanuatu takes a close interest in the West Papua issue. top of page
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). Defence links were strengthened by joint participation in the Bougainville Peace Monitoring Group and peacekeeping in East Timor. Vanuatu also contributes to the Regional Assistance Mission in the Solomon Islands (RAMSI). In 2006, 15 New Zealand Defence Force 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.
The number of New Zealanders travelling to Vanuatu is growing. New Zealand is the second largest source of visitors; in 2004 comprising 15.3% of the market (Australia comprised 58.5%). 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.top of page
NZAID works with Vanuatu in the areas of strengthening governance (law and order/community safety, public service delivery capacities, civil participation and representation); education (basic education as well as tertiary scholarships); and building prospects for sustainable economic growth particularly in rural areas. In the next five-year period the focus will shift from central to provincial levels, to improve the lives of rural dwellers who represent over 80% of Vanuatu’s total population.
The overall size of the programme stood at NZ$6.4 million in the 2004/05 financial year. This was raised to $7.5 million in 2005/06, $11.5 million in 2006/07, and increased to $15 million in 2007/08. The projected level for 2009/10 is $20 million subject to absorptive capacity. Vanuatu also benefits from various multilateral and regional NZAID programmes, including the regional law and justice capacity building programme, regional good governance programme, and through NZAID's support to regional agencies (e.g. Secretariat of the Pacific Community, South Pacific Regional Environment Programme, and South Pacific Applied Geoscience Programme).
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 Independence in 1980. A resident New Zealand High Commission was established in 1987 in Port Vila, with accreditation prior to that coming from Honiara. In 2006 the High Commission, including the NZAID offices, shifted locations and was upgraded. The Minister of Foreign Affairs, Rt Hon Winston Peters, also led a delegation of 55 Non-Government Organisation representatives, business people, MPs, media representatives and officials to Vanuatu to promote bilateral linkages between the two countries. 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 5 Pacific kick-start states for the Recognised Seasonal Employer (RSE) scheme. This scheme opens the door to 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. The RSE scheme will add 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 this scheme will take several years to assess fully.top of page
The Safetravel website provides a travel advisory for travellers to Vanuatu [external link].