VANUATU

Republic of Vanuatu

[French]République de Vanuatu
[Bislama] Ripablik blong Vanuatu

CAPITAL: Port-Vila

FLAG: Red and green sections are divided horizontally by a gold stripe running within a black border and widening at the hoist into a black triangle on which is a pig's tusk enclosing two crossed yellow mele leaves.

ANTHEM: Yumi, Yumi, Yumi (We, We, We).

MONETARY UNIT: As of 1 January 1981, the vatu (vt) replaced at par value the New Hebridean franc as the national currency. There are coins of 100 vatu and notes of 100, 500, 1,000, and 5,000 vatu. vt1 = $0.00895 (or $1 = vt111.79) as of 2004.

WEIGHTS AND MEASURES: The metric standard is used.

HOLIDAYS: New Year's Day, 1 January; May Day, 1 May; Independence Day, 30 July; Assumption, 15 August; Constitution Day, 5 October; National Unity Day, 29 November; Christmas Day, 25 December; Family Day, 26 December. Movable religious holidays include Good Friday, Easter Monday, and Ascension.

TIME: 11 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Vanuatu, formerly the Anglo-French condominium of the New Hebrides, is an irregular Y-shaped chain of some 80 islands, with a total land area of about 12,200 sq km (4,710 sq mi) and a total coastline of 2,528 km (1,571 mi). Comparatively, the area occupied by Vanuatu is slightly larger than the state of Connecticut. Of the 70 inhabited islands, the largest is Espiritu Santo; the island of Éfaté is the administrative center. The island chain is about 800 km (500 mi) long and lies about 1,000 km (600 mi) w of Fiji and 400 km (250 mi) ne of New Caledonia. Vanuatu and France both claim Matthew and Hunter islands, which lie between Vanuatu and New Caledonia; one of the islands has been occupied by French forces.

Vanuatu's capital city, Port-Vila, is located on the island of Éfaté.

TOPOGRAPHY

The islands are of coral and volcanic origin; there are active volcanoes on several islands, including Ambrym, Lopevi, and Tanna. Most of the islands are forested and mountainous, with narrow coastal strips. The highest peak, Tabwemasana, on Espiritu Santo, rises 1,878 m (6,161 ft) above sea level. The islands are generally well watered. Being formed in a geologically active area, the islands experience occasional earthquakes. Though these are generally minor, a 6.8 magnitude earthquake was recorded at 90 miles (140 km) north of Luganville, Espiritu Santo, on 5 February 2005.

CLIMATE

The tropical oceanic climate is moderated by southeastern trade winds, which blow between the months of May and October. Winds are variable during the remainder of the year, and cyclones may occur. Average midday temperatures in Port-Vila range from 25°c (77°f) in winter to 29°c (84°f) in summer. Humidity averages about 74%, and rainfall on Éfaté is about 230 cm (90 in) a year.

FLORA AND FAUNA

Despite its tropical forests, Vanuatu has a limited number of plant and animal species. There are no indigenous large mammals, poisonous snakes, or spiders. The 19 species of native reptiles include the flowerpot snake, found only on Éfaté. There are 11 species of bat (3 unique to Vanuatu) and 61 species of land and water birds. While the small Polynesian rat is thought to be indigenous, the large species arrived with Europeans, as did domesticated hogs, dogs, and cattle. The wild pig and fowl appear to be indigenous.

The region is rich in sea life, with more than 4,000 species of marine mollusks. Coneshell and stonefish carry poison fatal to humans. The giant East African snail arrived only in the 1970s but already has spread from the Port-Vila region to Luganville.

ENVIRONMENT

Vanuatu's population growth has caused concern for the environment in several areas. Water pollution in urban areas is a problem due to inadequate sanitation systems. A majority of the country's population does not have access to a reliable supply of safe drinking water. The nation's logging industry threatens the forests and contributes to the problem of soil erosion. The reefs on Vanuatu's coasts, which are the home of the country's marine life, are threatened by inappropriate fishing methods and siltation. In 1987, the government formed the National Advisory Committee on the Environment (NACE) to address the nation's developing environmental concerns.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 5 types of mammals, 7 species of birds, 2 types of reptiles, 5 species of fish, and 10 species of plants. The estuarine crocodile, hawksbill turtle, Fiji banded iguana, and insular flying fox are threatened species.

POPULATION

The population of Vanuatu in 2005 was estimated by the United Nations (UN) at 218,000, which placed it at number 172 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 42% of the population under 15 years of age. There were 104 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.6%, a rate the government viewed as too high. A high fertility rate, 4.3 births per woman, contributed to the high rate of population growth. The projected population for the year 2025 was 304,000.

The overall population density was 18 per sq km (46 per sq mi). The population is unevenly distributed, with the vast majority of Vanuatuans living in some 2,000 small villages. The most populous islands are Éfaté, Espiritu Santo, and Malekula.

The UN estimated that 21% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 4.09%. The capital city, Port-Vila, had a population of 34,000 in that year.

Luganville on Espiritu Santo, the only other large town, had a population of 10,738.

MIGRATION

Vanuatu's earliest known settlers probably migrated from the northwestern Pacific about 3,000 years ago. They were followed a thousand years later by migrants from the Solomon Islands. Tradition describes a series of subsequent incursions. In the 19th century, thousands of New Hebrides islanders were recruited as indentured laborers for plantation work in Australia, Fiji, New Caledonia, and Samoa. This migration gradually died down after the establishment of the Anglo-French Condominium, although voluntary emigration to New Caledonia continued until independence. In recent years, adverse economic conditions have encouraged emigration to Fiji, New Zealand, and the United States. The net migration rate in 2005 was estimated as zero migrants per 1,000 population. Worker remittances in 2002 amounted to $31 million. The government views the migration levels as satisfactory.

ETHNIC GROUPS

Approximately 98% of the total population are of Melanesian origin. French constitute about 4% of the population. The remaining 2% is made up of Vietnamese, Chinese, and other Pacific Islanders.

LANGUAGES

More than 100 languages and dialects are spoken in Vanuatu. Melanesian, the principal language, is related to Fijian and New Caledonian speech. Pidgin English, known as Bislama or Bichelama, is recognized by the constitution as the lingua franca, although English and French are also official languages. The national anthem is in Bislama, which is also used in parliamentary debate, with the proceedings reported in English and French as well. Children often speak as many as four languages and every aspect of public life—including education, law, and the media—is complicated by language problems.

RELIGIONS

A majority of the population is considered to be Christian, though many include indigenous customs with their practice. The Anglican, Presbyterian, and Roman Catholic churches first began missionary work in the New Hebrides during the 19th century. More recently, the Seventh-Day Adventists and other nontraditional Protestant groups have been active in mission work. While most of the mission schools have been handed over to the government, missionaries have continued to make important contributions to education and health.

According to the latest estimates, about 48% of the population were Presbyterians, 15% were Roman Catholics, 12% were Anglican, 7.6% followed indigenous beliefs, 6.2% were Seventh-Day Adventist, 3.8% were members of the Church of Christ, and 15.7% were designated as other. Muslims are also active within the country. There are small groups of Jehovah's Witnesses and Mormons. Since 1940, the John Frum Movement (political party and indigenous religion based on a rejection of the white Christian's beliefs but not his goods) has flourished, mainly on Tanna and provides a remarkable example of religious development in a situation of cultural challenge and transition. Membership, however, is only about 5% of the population.

The constitution allows for religious freedom while making a commitment to traditional values of Christian principles. Some subsidies are offered to Christian churches and the government maintains good relations with the Vanuatu Christian Council through the Ministry of Home Affairs.

TRANSPORTATION

During World War II, Vanuatu became an important Allied base, and many roads and airstrips were built by the US forces. In 2002, there were 1,070 km (665 mi) of roads, of which 256 km (159 mi) were paved. In 2003, there were 8,350 passenger cars and 4,450 commercial vehicles registered for use.

There were 30 small usable airfields serving all the main islands in 2004, of which 3 had paved runways as of 2005. The chief airports are Bauerfield, on Éfaté, and Pekoa, on Espiritu Santo; both have been upgraded to handle jet aircraft. Air Vanuatu, the national airline operated by Ansett Airlines of Australia, maintains regular service to Australia; an internal airline, Air Melanesiae, links 22 airfields on various islands. Other external service is provided by Air Pacific, UTA, Polynesian Airlines, Solair, and Air Nauru. Port-Vila and Luganville are the chief seaports. In 2001 (the latest year for which data was available), 97,500 passengers were carried on scheduled domestic and international flights. Small ships provide frequent interisland service. Vanuatu maintains a policy of open registry for merchant ships, allowing foreign ship-owners to avoid the higher costs and regulations of registration under their own flags. As of 2005, there were 52 ships in the Vanuatuan merchant fleet of 1,000 GRT or more, with a total capacity of 1,192,474 GRT.

HISTORY

Although the Portuguese navigator Pedro Fernandes de Queir established a short-lived settlement on Espiritu Santo in 1606, little more is known about the history of the New Hebrides until French and British explorers arrived in the late 18th century. Captain James Cook discovered, named, and charted most of the southern islands in 1774. The next century brought British and French missionaries, planters, and traders, and for many years the islanders suffered from the depredations of the recruiting ships and from other lawless acts by Europeans in the region.

By the Anglo-French Convention of 1887, a joint naval commission was established, with a resident commissioner to protect the lives and interests of the islanders. In 1906 following a London conference, the Anglo-French Condominium was established, largely to settle land claims and to end difficulties caused by lack of clear local jurisdiction. Indigenous political activity developed after World War II, with increasing native concern over land alienation and European dominance.

In 1975 a representative assembly replaced the nominated advisory council under which the New Hebrides had been governed; 29 assembly members were elected by universal suffrage, nine members represented economic interests, and four members represented the traditional chiefs. In 1977 the National Party (Vanuaaku Pati), which held 21 of 42 assembly seats, demanded independence and staged a boycott of the legislature; in response, at a conference in Paris, self-government was agreed on for 1978, to be followed by a 1980 referendum on independence. After considerable difficulty, a constitutional conference in 1979 finally agreed on an independence constitution. In the November 1979 elections for a newly constituted, fully elective assembly, the National Party, led by Father Walter Lini, obtained 26 of the 39 seats.

In May 1980 however, a dissident francophone group, based on Espiritu Santo, attempted to break away and declared an independent government of Vemarana, under Jimmy Stevens and the Nagriamal Party. Attempts made during June to resolve the differences between the new central government and the rebels failed, and UK and French troops were sent to Luganville on 24 July. No shots were fired, but the soldiers remained until Vanuatu's formal declaration of independence on 30 July 1980. They were then replaced at the new government's request by forces from Papua New Guinea, who were assisted by the local police in putting down the rebellion.

Since independence, Vanuatu (Our Land Forever) has followed a nonaligned foreign policy. It became the first South Pacific nation to join the nonaligned movement, and in January 1987 it signed a controversial fishing agreement with the USSR. In May 1987 Vanuatu announced a ban on all military ships and aircraft in a dispute over a proposed Libyan diplomatic mission. The dispute ended with the expulsion of two Libyan diplomats. Relations with the French government remained strained throughout much of the Lini government's rule, though they improved at the end of 1989 with the signing of the Matignon Accord relating to New Caledonia.

In December 1988 President George Ati Sokomanu attempted to dismiss the Lini government by ordering the dissolution of the country's parliament. Sokomanu appointed Barak Sope as prime minister. Lini refused to surrender office and reconvened parliament. Sope and several supporters were arrested and charged with inciting mutiny. Sope was sentenced to six years' imprisonment.

Fr. Lini lost a parliamentary vote of confidence in September 1991 and he was replaced by Donald Kalpokas. In December 1991 the francophone Union of Moderate Parties (UMP), led by Maxime Carlot Korman, won the largest bloc of seats and formed a coalition government with the National United Party (NUP), led by Lini. Strains between the coalition members led to Lini joining the opposition in August 1993, but Carlot Korman's government survived the defection.

Parliamentary elections were again held in 1995, with the UMP winning slightly more seats than the Vanuatu Party (VP), led by Donald Kalpokas. Rialuth Serge Vohor was prime minister from November 1995 until a no-confidence vote in parliament forced his resignation on 7 February 1996. Maxime Carlot Korman was elected prime minister, forming a coalition, and parliament appointed Kalpokas deputy prime minister. The coalition was considered to be weak, however. On 30 September 1996 Korman was ousted by a no-confidence motion. Vohor was reelected as prime minister. The Vohor government repealed the Ombudsman's Act, but President Jean Marie Leye refused to declare this piece of legislation as law. Leye, in the face of dissent and political crises, took action to dissolve parliament. The ruling coalition refused to step down, questioning the constitutional right of Leye to do this. The Court of Appeal ruled in January 1998 that Leye's actions were legal, thus opening the way for a new general election. In the election held 6 March 1998 the VP of Kalpokas improved its earlier performance, but could not claim a majority. Kalpokas rejoined forces with Fr. Lini and the NUP and coalesced with minority party legislators to gain a clear majority. Kalpokas was elected prime minister. Willie Jimmy was named deputy prime minister on 19 October 1998. Kalpokas resigned to avoid a no-confidence vote in late 1999, and Barak Sope of Melanesian Progressive Party (MPP) became prime minister. In 1999, the government introduced a Comprehensive Reform Program, to combat corruption and abuse of power by government officials. It included a revamping of state administration, an increase in private sector development, a reduction in the public service sector, and the enactment of a leadership code of conduct.

At the South Pacific Forum in June 1999 Vanuatu supported a proposed Pacific Free Trade Area (FTA) that would initially include 14 countries in the region. The South Pacific Forum set up the Pacific Kava Council to work at protecting the regional rights to kava and its uses. The kava plant's reputed relaxation properties had attracted the attention of producers of herbal medicines. The establishment of kava plantations in Central America threatened the Pacific Islands' production. Vanuatu joined with other small island developing states (SIDS) through the United Nations SIDSnet, an Internet project linking over 40 island nations worldwide to address issues like the economic hurdles of isolation and small markets. The United Nations Environment Program (UNEP) issued a report assessing the ecological and population threats faced by SIDS, Vanuatu included. The UN's Intergovernmental Panel on Climate Change announced its predictions on the consequences of global warming. Vanuatu was mentioned as already affected by inundation of low-lying areas and coastal regions by rising oceans.

In April 2001, Barak Sope was ousted as prime minister in a vote of no confidence, and Edward Natapei became prime minister. The new government undertook investigations into Sope's business dealings, and in November, Sope was charged with two counts of forgery. He was sentenced to three years' imprisonment but was subsequently pardoned by President Fr. John Bani. Natapei was reelected prime minister in May 2002, after parliamentary elections held on 30 April, in which his Vanua'aku Party took 15 seats and the Union of Moderate Parties took 14 seats.

Presidential and legislative elections were held in 2004. The controversial prime minister Serge Vohor, who took office in July 2004, was ousted following a no-confidence vote that December; Vohor had attempted to switch Vanuatu's diplomatic recognition of China to Taiwan. Ham Lini became prime minister in December 2004. In April and May 2004, Alfred Masing Nalo was elected president, but was later removed from office after the Supreme Court invalidated the result of the election. Kalkot Matas Kelekele was elected president in August 2004. The next presidential election was to be held in 2009, and the next prime minister election was scheduled to take place after the general elections in 2008.

GOVERNMENT

Under the independence constitution adopted in 1979 and effective in 1980, Vanuatu is an independent republic within the Commonwealth of Nations. The head of state is the president (Kalkot Matas Kelekele since August 2004); the head of government is the prime minister (Ham Lini since December 2004). The unicameral legislature consists of 52 members (39 before 1987, and 50 before 1998) elected by universal adult suffrage to four-year terms. The cabinet is responsible to parliament, and the president is chosen by an electoral college for a five-year term. The electoral system includes a degree of proportional representation. A Council of Chiefs chosen by their peers in the chiefs' district councils advises the government on the protection of Vanuatuan languages and culture.

POLITICAL PARTIES

The country saw six political parties be represented in parliament in the April 2002 elections: the Union of Moderate Parties (UMP, Serge Vohor); the National United Party (NUP, led by Father Walter Lini until his death in February 1999; thereafter by Dinh Van Than; leadership in 2005 was in question); the Vanua'aku Party (VP, Edward Natapei); Melanesian Progressive Party (MPP, Barak Sope); the Vanuatu Republic Party (VRP, Maxime Carlot Korman), and the Vanuatu Green Party (VGP, Moana Carcasses). Also represented in Vanuatu are the Jon Frum Movement (Song Keaspai); the Friend Melanesian Party (FMP, Albert Ravutia); and the Tan Union (TU, Vincent Boulekone). In the July 2004 elections, the NUP took 10 seats, UMP took 8, the VP won 8, VRP 4, MPP 3, VGP 3, and other candidates held 16 seats. The next parliamentary elections were to be held in 2008.

LOCAL GOVERNMENT

Vanuatu is divided into six provinces (Malampa, Penama, Sanma, Shefa, Tafea, Torba). There are municipal councils in Port-Vila and Luganville, and community councils elsewhere. Espiritu Santo and Tanna have special regional councils.

JUDICIAL SYSTEM

Despite the great difficulty in unifying laws based on the very different English and French traditions, Vanuatu has sought to establish a single system based on British criminal procedure and the French penal code. The constitution establishes a Supreme Court, with a chief justice and three other judges, as well as an appeals court. Village and island courts have jurisdiction over customary and other matters.

The judiciary is independent of the executive and free from military influence. The constitution guarantees a range of procedural due process protections including the presumption of innocence, fair public trial, habeas corpus, and the prohibition against double jeopardy.

ARMED FORCES

The nation maintains close links with Papua New Guinea, where Vanuatuan cadets train for a mobile defense force under the auspices of the Australian Ministry of Defense, which also helps to train skilled manpower for national development tasks.

INTERNATIONAL COOPERATION

Vanuatu joined the United Nations on 15 September 1981 and participates in ESCAP and several nonregional specialized agencies, such as the FAO, the World Bank, UNESCO, UNIDO, and the WHO. It also belongs to the Asian Development Bank (which opened a regional office in Port-Vila in 1984), the ACP Group, G-77, the Pacific Island Forum, the South Pacific Regional Trade and Economic Cooperation Agreement (Sparteca), the Alliance of Small Island States (AOSIS), and the Commonwealth of Nations. The country holds observer status in the WTO.

Vanuatu has taken an active role in Pacific affairs, campaigning for a nuclear-free zone and advocating independence for New Caledonia. Vanuatu has established diplomatic relations with a number of OECD countries, as well as China, Cuba, Vietnam, and Libya. The country is part of the Nonaligned Movement.

In environmental cooperation, Vanuatu is part of the Convention on Biological Diversity, CITES, the London Convention, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Vanuatu has a mixed traditional and modern economy. Agriculture supports about 65% of the population, but the service industry is playing an increasingly important role in the economy. Tourism has been developed since the 1980s and, together with financial services, has become an important foreign exchange earner. GDP grew by less than 3% a year in the 1990s. For the three years 2000 to 2002, GDP growth averaged 3% and inflation averaged 3%. During this period the islands had to deal with the extensive damage from two severe earthquakes, each followed by sizeable tsunamis: in November, 1999 on the northern island of Pentecote, and in January 2002, centered on the capital and surrounding areas. The absence of personal and corporate income taxes has made Vanuatu an offshore financial center, and the government also earns fees from a "flag of convenience" shipping registry.

The GDP growth rate was 2.8% in 2004, up from 1.6% in 2003; in 2005, the economy was expected to grow by 2.8%. The inflation rate has fluctuated slightly, but at 1.8% in 2004, it did not pose a problem to the economy. Strong economic development is hindered by the geographic isolation of the country, its vulnerability to natural disasters, and its dependency on relatively few export commodities.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Vanuatu's gross domestic product (GDP) was estimated at $580.0 million. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $2,900. The annual growth rate of GDP was estimated at 1.1%. The average inflation rate in 2003 was 3.1%. It was estimated that agriculture accounted for 26% of GDP, industry 12%, and services 62%.

According to the World Bank, in 2001 remittances from citizens working abroad totaled $16 million or about $76 per capita and accounted for approximately 6.8% of GDP.

LABOR

About 80% of the population is engaged in peasant labor either for subsistence or producing cash crops such as copra. As of 2002, there were approximately 25,000 persons participating in the formal economy as wage earners. In 2000 (the latest year for which data was available), agriculture accounted for 65% of the labor force, with industry at 5% and the services sector at 30%. There was no unemployment data available. The wage-labor force is concentrated in Port-Vila and Luganville.

For persons engaged in government enterprises, port work, construction, and certain other jobs, the terms of employment and wages are set by legislation. The nation's first trade unions were formed in 1984. In 2002 there were seven trade unions; the largest two were the Oil and Gas Workers' Union and the Vanuatu Airline Workers' Union. Union membership has fallen from 4,000 in 1994 to less than 1,000 in 2002.

The law prohibits children under 12 from working. Children between 12 and 18 may work under restricted hours and conditions. The Labor Department effectively enforces these laws. In 2002, the minimum wage was $143 per month for all workers. This does not provide an adequate living and most families subsidize this amount with subsistence farming. The law mandates a 44-hour maximum workweek. The Employment Act provides health and safety standards but these are not effectively enforced.

AGRICULTURE

About 9% of the land is cultivated. While most crops, including yams, taro, manioc, sweet potato, and breadfruit, are raised for local consumption, cash crops like copra, cocoa, and coffee have been increasingly important. Production of coconuts totaled 240,000 tons in 2004. Copra exports have been declining as a share of total exports, from 43% in 1995 to 8% in 2002. Vanuatu maintained an agricultural surplus of $2.6 million in 2004, with Bangladesh and Japan as the leading markets.

In 1983, Vanuatu's first agricultural census was taken, with British assistance. A land alienation act passed in 1982 limits land ownership to indigenous owners and their descendants, but expatriates can lease land for up to 75 years.

ANIMAL HUSBANDRY

Hogs and fowl form part of the village economy. Vanuatu is ideal for cattle, and large numbers are raised on plantations; in 2005 there were an estimated 152,000 head of cattle, up from around 124,000 in 1990. The growing meat-packing industry produces frozen, chilled, and tinned beef; production of beef totaled about 3,300 tons (dressed carcass weight) in 2005. The beef industry is centered on the island of Espiritu Santo, where the country's main abattoir is located. Beef is exported primarily to Japan, with a lesser amount going to New Caledonia.

FISHING

Although the South Pacific Fishing Co., a joint Vanuatuan government and Japanese venture, has facilities at Luganville that freeze and export both tuna and bonito to Japan and the United States, the full fishery potential has not been realized. Fishing is focused on domestic consumption; exporting fish requires a government permit. Vanuatu's catch was 31,394 tons in 2003; exports totaled $1.9 million that year.

FORESTRY

About 37% of the total land area is forest or bushland. Total roundwood production in 2004 was 119,000 cu m (4.2 million cu ft), with 76% burned as fuel. Sawnwood production totaled 28,000 cu m (988,000 cu ft) that year, and exports of forest products were valued at $3 million. The government approved the establishment of a large commercial forestry plantation on Espirito Santo in 1987.

MINING

Vanuatu had few known minerals, although gold deposits have been discovered. A small manganese mine on Éfaté ceased exports in 1980.

ENERGY AND POWER

Temporary generators established throughout the islands by the United States during World War II (1939–45) have mostly deteriorated. Total installed capacity was about 12,000 kW in 2002, all of it conventional thermal. Electricity production in 2002 totaled 42 million kWh, all of it from fossil fuels. Consumption of electricity that year was 39 million kWh.

All hydrocarbon needs were met by imports. In 2002, imports and demand for refined petroleum products each averaged 610 barrels per day. There were no imports or consumption of natural gas or coal in 2002.

INDUSTRY

The industrial sector is small: in 1990 it contributed about 12.3% to GDP; in 1996, 13% and in 2001, 11.5%. The leading industries are fish and food freezing, wood processing, and meat canning. The small manufacturing sector, accounting for 5.5% of GDP in 1990 and 5% in 2001, is geared to toward domestic consumption. Indigenous crafts include basketry, canoe building, and pottery. In 1990, National Breweries, a joint venture with Sweden, began producing Tusker beer and Pripps Lager.

In 2003, the main contributor to the GDP was the transport and communications sector (32.4%); agriculture came in second with 19.3%. Manufacturing and construction had the smallest share in the economy, with 3.6% and 2.5% respectively.

SCIENCE AND TECHNOLOGY

There is no advanced technology apart from overseas aid programs.

DOMESTIC TRADE

A large part of the population still relies on barter. In Port-Vila, European businesses dominate commercial life; there are hotels, supermarkets, fashion shops, and patisseries, as well as Australian steak houses and small Chinese restaurants. Some Vanuatuans have entered the cash economy in urban areas. There is a very small light industry section that supplies the local markets. The nation's numerous cooperative societies handle most of the distribution of goods on the islands. A value-added tax applies to most goods and services.

Normal business hours in the capital are 7:30 to 11:30 am and 1:30 to 4:30 pm, Monday through Friday. Banks in Vanuatu are open on weekdays from 8 to 11:30 am and 1:30 to 3 pm.

FOREIGN TRADE

In 2000, exports totaled $23.2 million and imports amounted to $86.7 million. Service receipts have helped offset the traditionally adverse trade balances. A commodities marketing board exports copra and cocoa, and cooperatives play a major role in foreign trade. Most of Vanuatu's export commodities are foodstuffs, including oil seeds, (34%), vegetables (15%), wood (13%), meat (12%), cocoa (4.7%), and fish (1.3%).

In 2004, exports totaled $205 million (FOB—Free on Board), while imports grew to $233 million (CIF—Cost and Freight). Most of the exports went to Thailand (47%), Malaysia (18.4%), Japan (7.5%), Belgium (5.4%), and China (4.9%). Imports included machinery and transport equipment, food and live animals, basic manufactures, and mineral fuels, and primarily came from Taiwan (24%), Australia (16.5%), Japan (11.4%), Singapore (8.5%), New Zealand (7.2%), Fiji (6.3%), and the United States (4.4%).

BALANCE OF PAYMENTS

Continuing trade deficits have been offset by aid from the United Kingdom and France, but this assistance is being steadily reduced.

The US Central Intelligence Agency (CIA) reported that in 2000 the purchasing power parity of Vanuatu's exports was $22.8 million while imports totaled $87.5 million resulting in a trade deficit of $64.7 million.

The International Monetary Fund (IMF) reported that in 2001 Vanuatu had exports of goods totaling $20 million and imports totaling $78 million. The services credit totaled $119 million and debit $73 million.

Exports of goods and services totaled $38 million in 2004, up from $27 million in 2003. Imports grew from $91 million in 2003, to $112 million in 2004. The resource balance was consequently negative, and on a downward path—from -$64 million in 2003 to -$74 million in 2004. A different trend was registered for the current account balance, which improved from -$28 million in 2003, to -$15 million in 2004. Foreign exchange reserves (excluding gold) grew to $62 million in 2004, covering more than six months of imports.

BANKING AND SECURITIES

Vanuatu's banking system includes a Central Bank, local retail banks, and a Development Bank that provides loans for agricultural projects, housing, and industrial development. The country's Financial Centre, a tax haven created by the British in 1971, is the third-largest source of government revenue. Favorable regulatory and tax structures have stimulated foreign interest in Vanuatu as an international financial center; more than 600 offshore companies and banks were registered in Port-Vila in 1985. Local banks require no minimum deposits for vatu accounts and a minimum of us$5,000, or the equivalent in major specified currencies, for foreign currency holdings. Vanuatu has no double taxation agreements with other countries, ensuring maximum confidentiality for international financial transactions. In late 1999, a number of foreign bank-including Deutsche Bank, Banker's Trust, and the Bank of New York-banned trading in us with Vanuatu because of suspected illegal activity being carried on through the Vanuatu financial center. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $55.3 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $245.6 million. The money market rate, the rate at which financial institutions lend to one another in the short term, was 5.5%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 6.5%.

There is no stock exchange.

INSURANCE

Insurance coverage is available through agents of overseas companies, mainly British and French.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2003 Vanuatu's central government took in revenues of approximately $52.6 million and had expenditures of $54.3 million. Revenues minus expenditures totaled approximately -$1.7 million. Total external debt was $83.7 million.

The International Monetary Fund (IMF) reported that in 1997, the most recent year for which it had data, central government revenues were vt6,858 million and expenditures were vt7,023 million. The value of revenues was us$59 million and expenditures us$61 million, based on a official exchange rate for 1997 of us$1 = vt115.87 as reported by the IMF. Government outlays by function were as follows: general public services, 33.8%; public order and safety, 8.4%; economic affairs, 26.3%; housing and community

amenities, 3.7%; health, 9.3%; recreation, culture, and religion, 0.5%; and education, 18.1%.

TAXATION

Vanuatu has no income, corporation, or sales tax. Government revenues are derived from indirect taxes, which include stamp taxes, an excise tax on locally produced alcoholic beverages, a 10% hotel tax, and a rent tax. In 2000 the OECD listed Vanuatu as one of 38 uncooperative tax havens. In 2002, it was one of seven that remained on the list. In May 2003, however, Vanuatu was removed from the blacklist, having promised an OECD representative to make the required reforms.

CUSTOMS AND DUTIES

Vanuatu imposes tariffs on both an ad valorem and specific basis. Tariff rates average 15–20%; however, rates for luxury goods could reach 200%. Printed matter is exempt. A 5% service tax is also charged on all imported goods. Export duties are levied on the country's primary products.

FOREIGN INVESTMENT

The government encourages all forms of foreign investment, especially if there is joint local participation. There are no major foreign ownership restrictions, and duty exemptions are available on application to the Ministry of Finance. In late 1999 Vanuatu's Department of Trade announced that, to be considered, all foreign investment proposals must be accompanied by us$38,000. This action was taken because of the high number of project proposals approved that have not been implemented. According to statistics published by UNCTAD, foreign direct investment (FDI) in Vanuatu was us$30.2 million in 1997, but dropped to us$20.4 million in 1998, and averaged us$20.275 for the three years following (1999 to 2001).

ECONOMIC DEVELOPMENT

The British independence settlement provided grants of £23.4 million to Vanuatu, including £6.4 million in budgetary aid (with additional grants provided annually), £4 million for technical aid, and £13 million for development projects aimed at promoting national economic self-sufficiency. Projects under the five-year development plan for 1982–86 included harbor development, agricultural training, and road improvements. Aid for other infrastructural development is provided by Australia, New Zealand, the UN, and the EU. Government development projects emphasize local participation and preservation of Vanuatu's cultural heritage. In 1995, Vanuatu received us$45.8 million in aid from international sources. In 2000, Vanuatu was listed on the OECD's list of "uncooperative" tax havens. In 2002, it was one of only seven jurisdictions still on the list of not having take corrective action. In May 2003, however, Vanuatu was the first of the seven to be removed from the blacklist having agreed, after discussions with OECD representatives, to institute the necessary reforms. Vanuatu remains one of the top 10 "flags of convenience" registries.

The economy of Vanuatu recovered in 2003 and 2004, and the trend is expected to continue in coming years, although not at exceptional rates. The economic growth will primarily be driven by the beef industry, and by a rising output in the forestry industry.

The tourism industry is also expected to bring increasing foreign exchange in the country, although the country's main airline might be facing problems in the future (due to increasing oil prices).

SOCIAL DEVELOPMENT

The majority of the people cling to traditional village life. The extended family system ensures that no islanders starve, while church missions and the social development section of the Education Ministry concentrate on rural development and youth activities. The government incorporates family planning into its overall maternal and child health program. A provident fund system provides lump-sum benefits for old age, disability, and death. Workers contributed 4% of earnings and employers contribute 6% of payroll. Pensions are provided at the age of 55.

Women are still largely confined to traditional cultural roles, and most marriages include a "bride-price" that encourages men to consider their wives as possessions. Women generally do not own land. Village chiefs usually act to reinforce the subordinate roles of women and are thus viewed as a primary obstacle to female advancement. There are no female leaders in Vanuatu's civic, business, or religious institutions. A disproportionate number of women lost their jobs due to cutbacks in government employment. Violence against women, especially domestic abuse, is common. Most cases of violence against women go unreported because women are afraid of further abuse and do not understand their rights. As of 2004, there were no governmental agencies to support victims of domestic violence.

Human rights are generally well respected in Vanuatu.

HEALTH

Malaria is the most serious of the country's diseases, which also include leprosy, tuberculosis, filariasis, and venereal diseases. Safe water was available to 87% of Vanuatu's population.

Medical care is provided by 94 hospitals, health centers, and clinics administered by the Ministry of Health, assisted by the World Health Organization and a number of voluntary agencies. Local training schemes in basic community nursing are provided by Port-Vila hospitals and local clinics train health and sanitation orderlies. In 2004, there were an estimated 11 physicians and 235 nurses per 100,000 people.

Only 12% of married women were using contraception. In 2005, the infant mortality rate was estimated at 55.16 per 1,000 live births. In the same year the estimated birth rate (24.8 per 1,000 people) far exceeded the general mortality rate (8.3 per 1,000 people). The fertility rate was 3.1 children per woman. Average life expectancy was an estimated 62.85 years in 2004. The immunization rates for children under one were as follows: diphtheria, pertussis, and tetanus, 74%; polio, 74%; measles, 53%; and tuberculosis, 86%.

HOUSING

In urban areas only the emerging middle class can afford government-built housing. Other migrants to the towns buy plots of land and build cheap shacks of corrugated iron and waste materials, principally near Port-Vila and Luganville. The vast majority of villagers still build their own homes from local materials. The majority of dwellings are traditional Melanesian houses with earth or coral floors, no glass windows, and palm, bamboo, or cane walls and roofing. The most widely used exterior construction material was bush. In 1998, 87% of the population had access to safe drinking water. In 2001, there were 89 construction approvals granted for residential housing.

EDUCATION

Primary education is available for almost all children except in a few remote tribal areas. Education is provided in either English or French. Full secondary education is provided by the Anglophone Malapoa College and the French Lycée at Port-Vila; limited secondary education is also available in five English postprimary schools and three French mission schools.

In 2001, about 75% of children between the ages of four and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 94% of age-eligible students. In 2001, secondary school enrollment was about 27% of age-eligible students. It is estimated that about 96.2% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 23:1 in 2003; the ratio for secondary school was about 16:1. In 2003, private schools accounted for about 3.8% of primary school enrollment and 20.6% of secondary enrollment.

For postsecondary education, especially medical and technical training, selected students go principally to Fiji, Australia, and New Zealand. The adult literacy rate for 2004 was estimated at about 74%. As of 2003, public expenditure on education was estimated at 6.3% of GDP, or 28.6% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library is housed in the Vanuatu Cultural Center in Port-Vila. The Port-Vila Public Library, also a part of the Cultural Center, has a fairly well-stocked library of both French and English books and periodicals and houses fine collections of Melanesian art and artifacts, as well as a valuable stamp collection; it is the only public library service in the country. The secondary schools also have libraries, and there is a small library in the parliament building. Éfaté has a small museum displaying South Pacific artifacts and current works of art. The Vanuatu Cultural Center maintains a National Museum. There is a private fine arts museum are located in Port-Vila.

MEDIA

Vanuatu is linked by telegraph and telex to Hong Kong; Paris; Noumea, New Caledonia; and Sydney, Australia. An earth satellite tracking station came into service in 1979. In 2003, there were 6,500 mainline phones and 7,800 mobile phones in use nationwide. Radio Vanuatu (founded 1966) broadcasts daily in English, French, and Bislama. As of 2002, there were four radio stations and one television station, all operated by the state. In 1997 there were 254 radios and 10 television sets per 1,000 population. In 2003, there were 7,500 Internet subscribers served by 512 Internet hosts. The weekly government newspaper, The Vanuatu Weekly, appears in English, French, and Bislama. In 2002, it had a circulation of 1,700. In 2005, there were also four privately owned weekly papers. The constitution provides for free speech and a free press; however, in practice these provisions are not always honored, threatening opposition groups and media representatives with revocations of licenses and permits.

ORGANIZATIONS

There are a great number of European organizations, but the cooperative movement has had the greatest local impact. Cooperative units have organized a training center in Port-Vila for such skills as accounting, management, law, and marketing. Cooperatives receive British aid and government support but remain firmly independent. There is an active Vanuatu Credit Union League offering educational opportunities as well as financial services to members.

National youth organizations include the Vanuatu National Youth Council and the Vanuatu National Union of Students. There are several active sports associations promoting amateur competition for all ages in a variety of pastimes, including cricket, tennis, tae kwon do, and track and field. Many sports clubs are affiliated with the national Olympic Committee. The Vanuatu Association of Women Graduates promotes higher education opportunities for women. There are national chapters of the Red Cross Society, and UNICEF, and Habitat for Humanity.

TOURISM, TRAVEL, AND RECREATION

The most popular recreations in Vanuatu include marine sightseeing, deep-sea fishing, sailing, and beachcombing for shells. Citizens from most nations do not require visas. However, a valid passport and onward/return ticket are necessary. The number of tourist arrivals reached 50,400 in 2003, almost 58% of whom came from Australia. Tourist receipts totaled $71 million the same year. There were 10,793 rooms in hotels and other establishments with 28,235 beds and an occupancy rate of 35%. The average length of stay was nine nights.

The US Department of State estimated the daily cost of staying in Port Vila at $258 in 2005. Other areas ranged from $33 to $166 per day.

FAMOUS VANUATUANS

Father Walter Hayde Lini (1943–99), ordained as an Anglican priest in 1970, served as prime minister in Vanuatu from 1980 to 1991.

DEPENDENCIES

Vanuatu has no territories or colonies.

BIBLIOGRAPHY

Bennett, Michelle. Vanuatu. 4th ed. London, Eng.: Lonely Planet, 2003.

Bolton, Lissant. Unfolding the Moon: Enacting Women's Kastom in Vanuatu. Honolulu: University of Hawaii Press, 2003.

Craig, Robert D. Historical Dictionary of Polynesia. Lanham, Md.: Scarecrow Press, 2002.

Leibo, Steven A. East and Southeast Asia, 2005. 38th ed. Harpers Ferry, W.Va.: Stryker-Post Publications, 2005.

Lindstrom, Lamont. Knowledge and Power in a South Pacific Society. Washington, D.C.: Smithsonian Institution Press, 1990.

VANUATU

Republic of Vanuatu

République de Vanuatu

Ripablik blong Vanuatu

COUNTRY OVERVIEW

LOCATION AND SIZE.

Vanuatu is located in Oceania, about 2,000 kilometers (1,243 miles) to the northeast of Australia, to the south of Solomon Islands, and north of New Caledonia. It consists of a group of more than 80 islands with a land area of 14,760 square kilometers (5,699 square miles) (slightly larger than the state of Connecticut) and a coastline of 2,528 kilometers (1,570 miles).

POPULATION.

The population of Vanuatu was estimated at 199,800 in mid-2000, an increase of 3.4 percent from the 1999 census population of 193,219. In 2000, the birth rate was 36.0 per 1,000 while the death rate stood at 6.2 per 1,000. With a projected annual population growth rate of 3.0 percent between 2000 and 2010, the population is expected to reach 267,600 by 2010 and to double in 23 years.

About 94 percent of the population are Melanesian by origin, made up of about 100 different cultural groups. A further 4 percent is French, and there are small but significant populations of Vietnamese and Chinese.

With a high total fertility rate of 5.3, the population is very young, with about 37 percent under the age of 15 and only about 3 percent over 65 years. This is a result of both the high birth rate and a relatively low life expectancy. The majority of the population is rural, with only 21 percent of the people living in urban areas. However, the urban growth rate is about 50 percent higher than the total growth rate, and this growth is mainly centered on the 2 largest urban centers, Port Vila and Luganville.

OVERVIEW OF ECONOMY

Lying in the Western Pacific Ocean, Vanuatu is made up of a chain of islands with diverse physical characteristics and economic potential. The islands range from small coral atolls to relatively large islands of volcanic origin. Nearly 80 percent of the population of Vanuatu live in villages, so subsistence production of food, housing, and other items is the mainstay of the household economy. Most households also participate in some cash production, mainly of agricultural products such as copra (dried coconut flesh), cocoa, and coffee. Recently, new items that have entered the village cash economy, and which are of relatively high value, are kava and squash.

The formal economy of Vanuatu is based mainly on agricultural products and services. Copra and coconut oil are produced on large-scale plantations as well as in the villages. Coconut plantations often have cattle as well. Other products common to the village economy are also produced in plantations, in particular cocoa and coffee. Fishing supplies the internal market and is also a source of export income.

Vanuatu regularly has a negative balance of trade , and this is balanced by the services sector. Tourism has been growing steadily in recent years, partly because of heavy promotion in nearby countries such as Australia and New Zealand. Another significant source of employment and government revenues is the Offshore Financial Centre (OFC), which provides a tax haven for offshore banks , trust companies, insurance companies, and shipping companies.

International aid accounts for about 35 percent of GDP and development expenditure since independence in 1980 has been mainly financed by aid. Australia is the largest aid donor, followed by Asian Development Bank, France, Japan, and New Zealand.

POLITICS, GOVERNMENT, AND TAXATION

During the colonial period from 1906 to 1980, Vanuatu, then known as the New Hebrides, had the distinction of being ruled by 2 colonial powers, Great Britain and France. This "condominium" arrangement has sometimes been termed "pandemonium" since there were 2 systems of administration, education, and courts. Furthermore, in addition to the 2 colonial languages of English and French, inhabitants spoke one or more of about 100 indigenous languages. For most ni-Vanuatu (people of Vanuatu) the only effective language of communication was, and is, Bislama (a kind of Pidgin which has strong elements of English vocabulary and Melanesian grammar).

After obtaining independence from Great Britain and France in 1980, dual systems continued to operate in some contexts, especially education. Systems of administration, courts, etc. were combined, but still operated in at least 2 languages. The country adopted a republican system, with a president as head of state (elected by an electoral college of parliament and regional council presidents), and a prime minister selected by a parliament of 52 members elected by universal suffrage of all citizens aged 18 and over. A considerable number of political parties have formed and reformed since independence, but in most cases they are based on the colonial language split, either being Anglophone (English-speaking) or Francophone (French-speaking) parties.

The primarily Anglophone Vanua'aku Party, with Father Walter Lini as prime minister, held power from 1980 to 1991, when parliament voted him out in a no-confidence motion. Subsequently, Francophone parties, usually in coalition, have tended to form the governments. In the late 1990s, there was a great deal of political turmoil as governments changed and various political leaders were accused of corruption. In early 2001, Barak Sope, an English speaker, was selected as prime minister of a coalition government. Following much political turmoil in the late 1990s, the English-French divide appeared to be less important, as coalitions were sometimes forged across languages.

Local government is administered by 6 regional councils, and there are municipal councils in the 2 urban areas of Port Vila and Luganville. Authority over matters of tradition is held by malvatumauri (national council of chiefs) who are elected by district councils. These chiefs usually represent land-holding groups. As in many parts of Melanesia, they do not necessarily gain their position by inheritance but rather through skill in achieving economic and political power at the local level.

There is no corporate or personal income tax in Vanuatu. Import taxes accounted for 66 percent of all tax revenues in the country in 1997. There are also export tariffs that account for most of the other tax revenues. Application for membership in the World Trade Organization (WTO) means that in the future, these trade taxes will have to be progressively reduced. This means other types of tax may have to be imposed, according to David Ambrose and Savenaca Siwatibau in the Pacific Economic Bulletin.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Because of the numerous islands in the country, the main internal transport linkages are by sea and air. The islands are served by a number of government and private passenger and cargo ships, although they do not usually run on a schedule and are not much cheaper than flying. International sea linkages are well served by shipping lines from Australia, New Zealand, and Asia. However, because Vanuatu is a flag of convenience registry, there were 78 vessels (some very large) from 15 different countries registered in Vanuatu in 1998. Most of these are not seen in Vanuatu waters.

Internal air services are provided by the government-owned Vanair, which flies to 29 destinations within the country. International air services link neighboring Pacific states including Fiji, New Caledonia, and Solomon Islands and most longer distance air linkages are routed through Brisbane, Australia, and Nadi, Fiji. The national airline Air Vanuatu flies to Sydney, Brisbane, Melbourne, Auckland, and Nadi. Within the country there are 32 airports, 2 of which have paved runways, but nearly all international traffic is channeled through Port Vila.

Electricity is mainly concentrated in the towns and is generated exclusively using imported fuels. Similarly, telephone services are mainly available in towns, and communication with rural areas is generally by 2-way radio or radio bulletins on the government-owned radio station.

ECONOMIC SECTORS

In 1999, agriculture contributed 25.7 percent of Vanuatu's gross domestic product (GDP), while industry made up 14.0 percent and services contributed 60.4 percent of GDP. Some value is attributed to subsistence agriculture in the statistics for agriculture, and other significant contributors are copra production and beef production. Industry is mostly made up of small-scale manufacturing and construction. The large proportion of GDP that derives from services can be attributed to government employment, especially in education, as well as the tourism industry and offshore banking facilities. The only data available about the labor force in Vanuatu are from the 1989 census, and these are quite different from the GDP data (and 10 years older). Since the subsistence sector is such an important element in the economy, it was decided by Vanuatu's statistics department that "labor force" should include all workers, whether they were working for cash or not. Thus, the statistics show that about 75 percent of the labor force in 1989 was in agriculture, and this percentage includes all of those growing their own food for consumption as well as those selling crops and those working for wages on a plantation. Industry accounted for only 1.3 percent of the labor force, and services 23.9 percent; however, nearly all of those in industry and services were in the formal sector. Also, it is likely that these proportions will have increased during the 1990s, even when the subsistence component is included.

AGRICULTURE

The most recent economic data available show that agriculture, forestry and fishing contributed 25.7 percent of Vanuatu's GDP in 1999. Although a further breakdown is not available from that year, data from 1995 shows that subsistence agriculture made up about a third of this sector, forestry and logging another third, and the rest made up of commercial agriculture, particularly copra production and beef production.

According to the Asian Development Bank, agriculture is more important to the Vanuatu economy than it is to any other Pacific economy, since it does not have the mineral and forestry resources of Papua New Guinea or Solomon Islands, the manufacturing base of Fiji, the marine resources of Micronesia, or the remittances of Polynesia. Throughout Vanuatu, subsistence agriculture is the mainstay of the village economy, since 80 percent of the population lives in villages. Food crops produced include taro, yams, kumara (sweet potato), bananas, coconut, and a great range of fruit and vegetables.

The most important agricultural product, in terms of cash production in the villages and in terms of export, is copra. This is the dried flesh of coconuts, produced by individual households and on large-scale plantations. Production of copra is highly variable year to year depending on weather conditions and world prices, although a general downward trend in production is noticeable since the early 1980s. One explanation is that the price in real terms paid to producers has declined over this period.

In recent decades there has been an attempt to diversify the rural economy away from coconuts to a variety of crops. Much effort went into the promotion of cocoa during the 1980s, but this was not very successful. By the late 1990s, cocoa exports were still only a small fraction of the value of exported coconut products. There has also been considerable promotion of coffee, but this too has not been very successful.

After copra, the second most important agricultural product by value is beef. Vanuatu is the only significant beef exporter in the Pacific, and this accounted for about 10 percent of all exports by value in the late 1990s. Cattle are often raised under coconut trees and serve both as a source of income and as a means of keeping plantations clear of weeds. The main export markets for beef have been Japan and the neighboring countries of Melanesia.

Two other crops that have increased in value recently are kava and squash. Kava, which is made into a drink that induces relaxation and mild euphoria, is a traditional crop that has recently been commercialized. The establishment of kava bars in the towns has accelerated since the 1980s, and in the 1990s kava was being exported around the world, where it can often be found in drugstores. The success of Tonga in securing a niche in the Japanese squash market caused other Pacific nations to look at this as a potential new crop. Vanuatu was one of the first to start squash production, but it is too early to determine whether this will be a successful case of agricultural diversification.

Logging in Vanuatu has never been on the scale seen in the neighboring countries of Solomon Islands or Papua New Guinea. Nevertheless, in 1997 and 1998, timber was the second most important export by value, after copra. The logging industry has maintained a relatively small but steady rate of production for many years, and involves both foreign companies and village-based sawmills. A ban on the exports of whole logs was implemented in 1989. Although temporarily lifted in 1993, the ban has been quite successful in adding value to the industry within the country by generating jobs in sawmilling and related activities.

Fish are an important food source in most parts of Vanuatu. However, commercial exploitation of fish is much less than in neighboring countries, considering the large area of ocean within Vanuatu's Exclusive Economic Zone (EEZ). Fishing fleets based in the country in the 1960s and 1970s ceased operations in the 1980s after considerable losses. Thus, fish are not a significant source of export income. Vanuatu does, however, receive some income from royalties paid by offshore fleets fishing within its EEZ, especially Taiwanese and American. The catches of these offshore fleets are landed mainly in Fiji and American Samoa, so relatively little employment is generated within Vanuatu from these activities.

INDUSTRY

In 1999, industry made up 14 percent of GDP. Data from 4 years earlier showed that construction contributed about 48 percent of this sector. This contribution, however, varies considerably from year to year depending on new developments in the tourist sector and in private industry. Manufacturing made up 39 percent of the industry sector, and its contribution has been steady and slowly growing.

There was a manganese mine operating on the island of Efate in the 1960s and 1970s, but currently there is no significant mineral production. Nevertheless, there is much interest in the mineral possibilities of the country, since Vanuatu is similar geologically to Papua New Guinea and Solomon Islands, where gold and other minerals are currently being mined. In the mid-1990s, Australian aid allowed a countrywide survey of mineral potential, and following this, a number of exploration licenses were taken out by private companies.

Manufacturing is a relatively minor industry in Vanuatu, although in the late 1990s it contributed just over 5 percent of GDP. The most important manufacturing enterprises cater for the local market in areas such as food processing (especially meat), wood processing and construction materials. Most of the manufacturing is located in the capital, Port Vila, although small operations such as production of soap from coconut oil take place elsewhere. The growth of tourism has encouraged the production of traditional handicrafts.

SERVICES

The services sector is the largest broad economic sector in the Vanuatu economy, contributing 60.4 percent of GDP in 1999. The makeup of this sector is suggested by data from 1995, which showed that the most important service subsectors, in order, were wholesale and retail trade, government services, transport, storage and communication, finance and insurance, real estate, and hotels and restaurants. Although the last of these subsectors is mostly generated by tourism, a considerable amount of the income generated in other subsectors also relates to tourism. Specific amounts were not available.

The sector that is often thought to have the greater future potential in the Pacific is tourism, and it has been heavily promoted in Vanuatu in recent years. Visitor arrivals have doubled in the 2 decades since independence in 1980, rising from about 25,000 per year at that time to about 50,000 in the late 1990s. Tourism in Vanuatu is still a small industry compared to Fiji, but larger than neighboring Solomon Islands. The majority of tourists (about 60 percent) come from Australia, with smaller numbers from New Zealand and New Caledonia. So far, relatively few have come from the largest potential markets of Japan, North America, and Europe.

Tourism is largely focussed on the capital, Port Vila, on the island of Efate. There are several international standard hotels in Port Vila, but in the rest of the country tourist facilities are rare, despite the great potential of some islands. With over 100 indigenous cultural groups, one of the main attractions of Vanuatu is its cultural diversity, represented in different housing styles, dances, and art-forms, especially carvings. There are also the typical Pacific attractions of beaches, diving and a tropical climate.

The national airline Air Vanuatu links Port Vila to Noumea, Brisbane, Sydney, Auckland, Nadi and Honiara, and other airlines serve the capital as well, including Air Pacific, Aircalin (New Caledonia) and Solomon Airlines.

Vanuatu is one of several tax havens in the South Pacific. The Offshore Financial Centre (OFC) was established in 1971 and has been maintained since independence. This provides a tax haven for offshore banks, trust companies, insurance companies, and shipping companies. It has been estimated that the OFC employs about 400 people. OFC pays registration fees to the government, which contribute about 2.5 percent of the overall gross domestic product, according to Ambrose and Siwatibau. Local banking services are provided by the National Bank of Vanuatu, ANZ (Australia New Zealand) Bank, Bank of Hawaii, and Westpac.

Like many Pacific countries, retail services are somewhat limited. In Port Vila there are medium-sized shops and supermarkets, but in most of the country there are only small shops with a very limited range of goods.

INTERNATIONAL TRADE

Vanuatu has a large imbalance in trade, with imports exceeding exports by 3 or 4 times. This imbalance is made up for by income from tourism, tax haven revenue, and international aid.

Copra has dominated Vanuatu's exports for many years; it made up 45 percent of all exports in the years 1995 to 1998. In those years, beef and timber were almost as equally important as each other, making up about

12 percent each, while cocoa made up about 5 percent of all exports. For copra, timber, and cocoa, the processing countries of these products are significant; the 3 most important export destinations were Japan, Belgium, and Germany. Beef was mostly exported to the nearby countries of New Caledonia, Solomon Islands, and Fiji, and to more distant Japan.

The most important imports into Vanuatu are machines and transport equipment, foodstuffs, basic manufactures, and fuels. Japan is the most important source of imports, accounting for about half of these in value. Australia is the next major source of imports, especially for food and certain types of manufactures, followed by United States, Singapore, and New Zealand.

MONEY

In the period since 1982, the vatu has declined in value against the American dollar by about 40 percent. However, this is not as great a relative decline as experienced in many other Pacific countries. This may be because, despite a negative balance of trade, Vanuatu has a reasonably consistent source of foreign revenue coming from tourism and its tax haven activities. Also, the vatu is pegged against a group of currencies, and although these currencies are secret, it is believed that the most important are the Australian and U.S. dollars, with smaller weight given to the Japanese yen and French franc, according to the Asian Development Bank.

The Reserve Bank of Vanuatu has the usual functions of a central bank, including regulating the money supply, providing economic advice to the government, and general economic monitoring.

POVERTY AND WEALTH

A total of 174 countries are ranked in the United Nations Development Programme's (UNDP) Human Development Report 2000 according to the Human Development Indicator (HDI), which measures a country's state of well-being using income, education, and health measures. The HDI rank for Vanuatu was 118, meaning that it was better off than many African countries, but was the third poorest country in the Pacific. GDP per capita in 1998 was US$1403, nearly twice as much as neighboring Solomon Islands but only about one-twentieth that of the United States.

While there is no adequate information on income distribution, partly because subsistence income is hard to measure, there is evidence that there are varying levels of well-being within the country. Another indicator developed by UNDP is the Human Poverty Index (HPI). It measures conditions for those worst off in a country, such as their health status, education level, access to health services, access to safe water, and malnutrition in children. While to a traveler in Vanuatu there appears to be a kind of "subsistence affluence" in most areas, the HPI suggests that Vanuatu is still a poor country, with the third lowest HPI in the Pacific, at a level similar to that of many of the poorest African countries. For example, illiteracy is estimated at 66 percent, about 23 percent of children under 5 are underweight, and about 20 percent of the population does not have access to adequate health services, according to the UNDP. However, since there is no poverty index in Vanuatu, it is not possible to determine how many people or households can be considered to be poor. The government has many different programs underway to try to overcome some of these problems, and often these are funded by international aid, especially in the areas of education and health.

WORKING CONDITIONS

The situation of the labor force is difficult to determine, due to a lack of recent data. Using Vanuatu's definition of labor force, the bulk of the adult population is said to be in the labor force, with most of these being involved in village agriculture. Most of those working in the wage and salary economy are located in Port Vila or Luganville, the 2 largest urban centers. At the time of the last census, the unemployment rate was calculated to be only 1 percent, although there appeared to be a great deal of underemployment involving people who were working only part time. As in most Pacific island nations, there is no unemployment benefit. The minimum wage was set at 16,000 vatu (US$140) per month in 1995, and this applied to both rural and urban employment. Earlier minimum wage levels had been lower in the rural sector, and it was felt by some that the rural minimum was above market rates and would inhibit job creation, according to the Asian Development Bank.

Workers in the formal sector are represented by at least 16 trade unions, generally organized according to industrial sector, but coordinated by the Vanuatu Council of Trade Unions.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1000 B.C. Evidence of human settlement on many islands.

1606 A.D. First European sighting of Vanuatu by Pedro Fernandez de Quiros, who founded an unsuccessful settlement on Espiritu Santo, the largest island in the Vanuatu group, and claimed the islands for Spain.

1768-89. Various European explorers—most commonly British and French—visit islands and introduce metal tools and weapons and new trade goods.

1825. Sandalwood trade starts, which accelerated trade even though the sandalwood resource was exhausted quickly.

1839. First Christian missionaries land; progress in conversion is slow, and some areas resist Christianity to the present day.

1864-1911. Labor recruitment for plantations in Fiji and Queensland, sometimes called "blackbirding."

1887. Condominium of New Hebrides established by French and British.

1940-41. New Hebrides joins Free French in WWII; Vila and Santo become American bases; Jon Frum movement starts proposing that Americans can deliver followers from missionaries and other Europeans.

1960s. Nagriamel, first political party, forms and demands independence and the return of some land.

1971. Tax haven established.

1980. Vanuatu granted independence; islands of Espiritu Santo and Tanna declare themselves independent under Nagriamel and Jon Frum movements; Britain and France refuse to take military action, so troops from Papua New Guinea defeat rebels and secure country for first prime minister, Walter Lini, leader of the Vanua'aku Party.

1982. Vanuatu declares itself nuclear free.

1991-2001. Series of coalition governments, often involving French-English party coalitions.

FUTURE TRENDS

In the late 1990s, much attention was being paid to the political struggles pitting one party against another. However, the party disputes tended to be based on regional and language interests rather than fundamental differences of opinion on economic policy. There was not much dynamism in the economy, with agricultural production and tourist numbers being relatively stable. In the future, the greatest hope appears to be held for tourism, since the country has many undeveloped possibilities. There is some potential for expansion in other sectors; for example, some localization in the fishing industry is possible, although these possibilities will depend to a great extent on a higher degree of political stability than has been seen recently. In terms of the development of human resources, especially in education and health, there will be an ongoing dependence on international aid.

DEPENDENCIES

Vanuatu has no territories or colonies.

BIBLIOGRAPHY

Ambrose, David, and Savenaca Siwatibau. "Recent Development in Vanuatu." Pacific Economic Bulletin. Vol. 12, No. 1, 1997.

Asian Development Bank. Vanuatu: Economic Performance, Policy and Reform Issues. Manila: Asian Development Bank, 1997.

Economist Intelligence Unit. Country Profile: Vanuatu. London: Economist Intelligence Unit, 2001.

"Key Indicators for Developing Asian and Pacific Countries." Asian Development Bank. <http://www.adb.org/Vanuatu>. Accessed February 2001.

United Nations Development Programme, Pacific Human Development Report 1999: Creating Opportunities. Suva: United Nations Development Programme, 1999.

U.S. Central Intelligence Agency. World Factbook 2000. <http:// www.odci.gov/cia/publications/factbook/index.html>. Accessed August 2001.

—Wardlow Friesen

CAPITAL:

Port Vila.

MONETARY UNIT:

Vatu (VT). There are coins of 1, 2, 5, 10, 20, 50 and 100 vatu and notes of 500, 1,000 and 5,000 vatu. One vatu equals 100 centimes, although there are no centime coins still in circulation.

CHIEF EXPORTS:

Copra, beef, cocoa, coffee, timber, kava, squash.

CHIEF IMPORTS:

Food, machinery and equipment, fuels.

GROSS DOMESTIC PRODUCT:

US$245 million (1999 est.).

BALANCE OF TRADE:

Exports: US$33.8 million (1998 est.). Imports: US$76.2 million (1998 est.).

Vanuatu

PROFILE
GEOGRAPHY
PEOPLE
HISTORY
GOVERNMENT
POLITICAL CONDITIONS
ECONOMY
FOREIGN RELATIONS
U.S.-VANUATU RELATIONS
TRAVEL

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Vanuatu

PROFILE

Geography

Area: Land—12,190 sq. km. (4,707 sq. mi.), 83 Islands. Comparative area—about the size of Connecticut.

Cities: Capital—Port Vila (on the island of Efate), pop. 33,700. Other towns—Luganville (on the island of Espiritu Santo, also known as Santo).

Terrain: Mostly mountains of volcanic origin, narrow coastal plains.

Climate: Tropical.

People

Nationality: Noun and adjective—ni-Vanuatu.

Population: (2006) 221,506.

Annual growth rate: (2005 est.) 2.2%.

Ethnic groups: 94% ni-Vanuatu; 4% European; 2% other Pacific Islanders, Asian.

Religions: Predominantly Christian.

Languages: Bislama (Pidgin), English, French, over 100 tribal languages.

Education: Enrollment in primary is 100% with rapid fall-off to 20% in secondary and upper secondary. Adult literacy rate (2005)—74% of those age 15 and older.

Health: Infant mortality rate (2005)—55.1/1,000. Life expectancy (2005)—62.5 yrs.

Work force: (1999) 134,000. Agriculture—65%. Industry—5%. Service—30%.

Government

Type: Parliamentary democracy.

Independence: July 30, 1980.

Constitution: July 30, 1980.

Government branches: Executive—president (head of state), prime minister (head of government). Legislative—unicameral (52-member parliament). Judicial—Supreme Court.

Political subdivisions: 6 administrative districts.

Political parties: Melanesian Progressive Party (MPP); Union of Moderate Parties (UMP); National United Party (NUP); Vanua’aku Party (VP); Vanuatu Republican Party (VRP); the Confederation of Greens (CG); John Frum group; People's Progressive Party (PPP); National Community Association (NCA).

Suffrage: Universal over 18.

Independence: July 30.

Economy

GDP: (2005) $343.6 million.

Per capita income: (2005) $1,576.

Real growth rate: (2005) 3.1%.

Avg. inflation rate: (2005) 2.6%.

Natural resources: Forests, agricultural land, marine resources.

Agriculture: Products—copra, cocoa, coffee, cattle, timber.

Industry: Types—copra production, beef processing, sawmilling, tourism, financial services.

Trade: (2003) Exports—$135.27 million: coconut oil, copra, kava, beef. Major markets—EU 44.9%, Australia 12.1%, Japan 6.8%, New Caledonia 4.6%. Imports—$181.4 million: machines and transport equipment, food and live animals, basic manufactures, mineral fuels. Major suppliers—Australia 42.5%, New Zealand 13.0%, Fiji 8.6%, Singapore 6.2%.

Exchange rate: (2005 avg.) 109.25 vatu=U.S.$1.

GEOGRAPHY

Vanuatu is a ‘Y’ shaped archipelago of 83 islands. It is located about 1,750 kilometers east of Australia. Fiji lies to the east, New Caledonia to the south, and the Solomon Islands to the northwest, all within the area of the South Pacific called Melanesia.

The two largest islands, Espiritu Santo (or Santo) and Malakula, account for nearly one-half of the total land area. They are volcanic, with sharp mountain peaks, plateaus, and lowlands. The larger islands of the remaining half also are volcanic but are overlaid with limestone formations; the smaller ones are coral and limestone. Volcanic activity is common with an ever-present danger of a major eruption, the last of which occurred in 1945. Rainfall averages about 2,360 millimeters (94 in.) per year but can be as high as 4,000 millimeters (160 in.) in the northern islands.

PEOPLE

The population of Vanuatu is 94% indigenous Melanesian. About 33,700 live in the capital, Port Vila. Another 10,700 live in Luganville (or Santo Town) on Espiritu Santo. The remainder live in rural areas. Approximately 2,000 ni-Vanuatu live and work in New Caledonia. Although local pidgin, called Bislama, is the national language, English and French also are official languages. Indigenous Melanesians speak 105 local languages.

Christianity has had a profound influence on ni-Vanuatu society, and an estimated 90% of the population is affiliated with one of the Christian denominations. The largest denominations are Presbyterian, Roman Catholic, and Anglican. John Frum, a syncretic sect, also is important on Tanna Island.

HISTORY

The prehistory of Vanuatu is obscure; archaeological evidence supports the commonly held theory that peoples speaking Austronesian languages first came to the islands some 4,000 years ago. Pottery fragments have been found dating back to 1300-1100 B.C.

The first island in the Vanuatu group discovered by Europeans was Espir-itu Santo, when in 1606 the Portuguese explorer, Pedro Fernandez De Quiros, spied what he thought was a southern continent. Europeans did not return until 1768, when Louis Antoine de Bougainville rediscovered the islands. In 1774, Captain Cook

named the islands the New Hebrides, a name that lasted until independence.

In 1825, trader Peter Dillon's discovery of sandalwood on the island of Erromango began a rush that ended in 1830 after a clash between immigrant Polynesian workers and indigenous Melanesians. During the 1860s, planters in Australia, Fiji, New Caledonia, and the Samoa Islands, in need of laborers, encouraged a long-term indentured labor trade called “blackbirding.” At the height of the labor trade, more than one-half the adult male population of several of the Islands worked abroad. Fragmentary evidence indicates that the current population of Vanuatu is greatly reduced compared to pre-contact times.

It was at this time that missionaries, both Catholic and Protestant, arrived on the islands. Settlers also came, looking for land on which to establish cotton plantations. When international cotton prices collapsed, they switched to coffee, cocoa, bananas, and, most successfully, coconuts. Initially, British subjects from Australia made up the majority, but the establishment of the Caledonian Company of the New Hebrides in 1882 soon tipped the balance in favor of French subjects. By the turn of the century, the French outnumbered the British two to one.

The jumbling of French and British interests in the islands brought petitions for one or another of the two powers to annex the territory. In 1906, however, France and the United Kingdom agreed to administer the islands jointly. Called the British-French Condominium, it was a unique form of government, with separate governmental systems that came together only in a joint court. Melanesians were barred from acquiring the citizenship of either power.

Challenges to this form of government began in the early 1940s. The arrival of Americans during World War II, with their informal demeanor and relative wealth, was instrumental in the rise of nationalism in the islands. The belief in a mythical messianic figure named John Frum was the basis for an indigenous cargo cult (a movement attempting to obtain industrial goods through magic) promising Melanesian deliverance. Today, John Frum is both a religion and a political party with a member in Parliament.

The first political party was established in the early 1970s and originally was called the New Hebrides National Party. One of the founders was Father Walter Lini, who later became Prime Minister. Renamed the Vanua-aku Pati in 1974, the party pushed for independence; in 1980, the Republic of Vanuatu was created.

GOVERNMENT

The constitution created a republican political system headed by a president who has primarily ceremonial powers and is elected by a two-thirds majority in an electoral college consisting of members of Parliament and the presidents of Regional Councils. The president serves a 5-year term. The president may be removed by the Electoral College for gross misconduct or incapacity. The prime minister, who is the head of government, is elected by a majority vote of a three-fourths quorum of the Parliament. The prime minister in turn appoints the Council of Ministers, whose number may not exceed one-fourth of the number of parliamentary representatives. The prime minister and the Council of Ministers constitute the executive government.

Parliament is a 52-member unicameral house elected by all persons over 18 years old. Parliament normally sits for a 4-year term unless dissolved by majority vote of a three-fourths quorum or a directive from the president on the advice of the prime minister. The national Council of Chiefs, called the Malvatu Mauri and elected by district councils of chiefs, advises the government on all matters concerning ni-Vanuatu culture and language.

The Supreme Court consists of a chief justice and up to three other judges. Two or more members of this court may constitute a Court of Appeal. Magistrate courts handle most routine legal matters. The legal system is based on British law. The constitution also provides for the establishment of village or island courts presided over by chiefs to deal with questions of customary law.

Principal Government Officials

Last Updated: 2/1/2008

President: Kalkot Matas KELEKELE

Prime Minister: Ham LINI

Dep. Prime Min.: Sato KILMAN

Min. of Agriculture, Forestry, & Fisheries: Barak SOPE Ma’au Tamate

Min. of the Comprehensive Reform Program: Isabelle DONALD

Min. of Education: Joseph NATUMAN

Min. of Finance & Economic Development: Moana CARCASSES

Min. of Foreign Affairs: Sato KILMAN

Min. of Health: Morkin Iatika STEVENS

Min. of Internal Affairs: Georges Andre WELLS

Min. of Lands, Geology, & Mines: Willie Jimmy TAPANGARARUA

Min. of Ni-Vanuatu Business Development: Joshua KALSAKAU

Min. of Public Utilities: Edward NATAPEI

Min. of Trade, Commerce, & Industries: James BULE

Min. of Youth & Sports: Arnold PRASAD

Permanent Representative to the UN, New York:

Vanuatu does not have an embassy in Washington. Its mission to the United Nations is located at 866 UN Plaza, 4th Floor, Room 41, First Avenue and 48th Street, New York, NY 10017. Vanuatu Maritime Services, which provides information on ship registration in Vanuatu, is located at 120 Broadway, Suite 1743, New York, NY 10271.

POLITICAL CONDITIONS

Government and society in Vanuatu tend to divide along linguistic—French and English—lines. Historically, English-speaking politicians such as Walter Lini and other leaders of the Vanua’aku Pati favored early independence, whereas French-speaking political leaders favored continuing association with the colonial administrators, particularly France.

On the eve of independence in 1980, Jimmy Stevens’ Nagriamel movement, in alliance with private French interests and backed by American libertarians hoping to establish a tax-free haven, declared the island of Espiritu Santo independent of the new government. Following independence, Vanuatu requested assistance from Papua New Guinea, whose forces restored order on Santo. From then until 1991, the Vanua’aku Pati and its predominantly English-speaking leadership controlled the Vanuatu Government, and Walter Lini became widely considered as the nation's founding father.

In December 1991, and following a split in the Vanua′aku Pati, Maxime Carlot Korman, leader of the Francophone Union of Moderate Parties (UMP), was elected Vanuatu's first Francophone prime minister. He formed a coalition government with Walter Lini's breakaway VP faction, now named the National United Party (NUP). From 1995-2004 government leadership changed frequently due to unstable coalitions within the Parliament and within the major parties.

The president dissolved Parliament in May 2004 to forestall a vote of no confidence and called a special election that resulted in losses for most major parties. UMP's leader, Serge Vohor, returned as Prime Minister at the head of an unwieldy coalition government. Following controversy over Vohor's attempt to extend diplomatic relations to Taiwan, he was ousted by a vote of no confidence in December 2004 and replaced by Ham Lini, brother of Walter Lini. The new coalition includes ten parties and features the former opposition leader, Sato Kilman, as Deputy Prime Minister/ Foreign Minister.

ECONOMY

Vanuatu's economy is primarily agricultural; 80% of the population is engaged in agricultural activities that range from subsistence farming to smallholder farming of coconuts and other cash crops. Copra is by far the most important cash crop (making up more than 35% of the country's exports), followed by timber, beef, and cocoa. Kava root extract exports also have become important. In addition, the government has maintained Vanuatu's preindependence status as a tax haven and international off-shore financial center. About 2,000 registered institutions offer a wide range of offshore banking, investment, legal, accounting, and insurance and trust-company services. Vanuatu also maintains an international shipping register in New York City. In 2002, following increasing international concern over money laundering, Vanuatu increased oversight and reporting requirements for its off-shore sector.

Coconut oil, copra, kava and beef account for more than 75% of Vanuatu's total agricultural exports and agriculture accounts for approximately 20% of GDP. Tourism is Vanuatu's fastest-growing sector, having comprised 40% of GDP in 2000. Industry's portion of GDP declined from 15% to 10% between 1990 and 2000. Government consumption accounted for about 27% of GDP.

Vanuatu is a small country, with only a few commodities, mostly agricultural, produced for export. In 2003, imports exceeded exports by a ratio of nearly 3 to 2. However, this was partially offset by high services income from tourism, keeping the current account balance at $-28.4 million. Vanuatu claims an exclusive economic zone of 680,000 square kilometers and possesses substantial marine resources. Currently, only a limited number of ni-Vanuatu are involved in fishing, while foreign fleets exploit this potential.

In 1997 the government, with the aid of the Asian Development Bank, committed itself to a 3-year comprehensive reform program. During the first year of the program the government adopted a value-added tax, consolidated and reformed government-owned banks, and started a 10% downsizing in the public service. An important part of the reform installed career civil servants as Director Generals in charge of each ministry, helping to ensure continuity of service despite the frequent changes in government.

FOREIGN RELATIONS

Vanuatu maintains relations with more than 65 countries, including Russia, the People's Republic of China, Cuba, and Vietnam. However, only Australia, France, New Zealand, and the People's Republic of China maintain embassies, high commissions, or missions in Port Vila.

The government's main concern has been to bolster the economy. In keeping with its need for financial assistance, Vanuatu has joined the Asian Development Bank, the World Bank, the International Monetary Fund, and the Agence de Cooperation Cul-turelle et Technique.

The government encourages private enterprise, foreign investment, and producer cooperatives. Like other developing countries, Vanuatu is particularly interested in enterprises that add value to local primary products and that provide employment. In less lucrative sectors, the government sets up its own production companies or enters joint ventures with foreign investors.

Since 1980, Australia, the United Kingdom, France, and New Zealand have provided the bulk of Vanuatu's development aid. A number of other countries, including Japan, Canada, Germany, and various multilateral organizations, such as the Economic and Social Council for Asia and the Pacific, the UN Development Program, the Asian Development Bank, the European Economic Community, and the Commonwealth Development Corporation also provide developmental aid. The United States, Canada, Australia, New Zealand, the United Kingdom, and Japan also send volunteers. In March 2006 the United States Millennium Challenge Corporation signed a five-year $65.69 million Compact agreement with Vanuatu. Vanuatu retains strong economic and cultural ties to Australia, New Zealand, and France.

Membership in International Organizations

Vanuatu is a member of the United Nations and its specialized and related agencies, including the World Bank and the International Monetary Fund; Secretariat of the Pacific Community (SPC); Pacific Islands Forum (PIF); Non-Aligned Movement; Commonwealth, Group of 77; and Asian Development Bank (ADB).

U.S.-VANUATU RELATIONS

The United States and Vanuatu established diplomatic relations in 1986. Between 1977 and 1987, Vanuatu received just under $3 million from the U.S. Agency for International Development (USAID), including projects focusing on assisting the transition to indigenous plantation management. In June 1994, the regional USAID office located in Suva, Fiji, was closed due to U.S. Government budgetary cutbacks. The U.S. military retains training links and conducts ad hoc assistance projects in Vanuatu.

In March 2006 the United States Millennium Challenge Corporation signed a five-year $65.69 million Compact agreement with Vanuatu. The Millennium Challenge Program is expected to increase average income per capita by 15% within five years and directly impact the lives of more than 65,000 of the rural poor in Vanuatu.

Vanuatu identified costly and unreliable transportation infrastructure as a major impediment to economic growth. To overcome this constraint, the Compact consists of up to eleven infrastructure projects—including roads, wharfs, an airstrip and warehouses—that will help poor, rural agricultural producers and providers of tourist related goods and services reduce transportation costs and improve access to transportation services. The Compact also includes institutional strengthening efforts and policy reform initiatives in Vanuatu's Public Works Department, including: provision of plant and equipment for maintenance; introduction of service performance contracts; establishment of local community maintenance schemes; and introduction of user fees.

The United States also remains a major financial contributor to international and regional organizations that assist Vanuatu, including the World Bank, UNICEF, WHO, the UN Fund for Population Activities, and the Asian Development Bank.

In 1989, the United States concluded a Peace Corps agreement with Vanuatu. The Peace Corps has met with a warm welcome there and currently has over 80 volunteers in-country. The United States also provides military training assistance.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

PORT MORESBY (E) (Papua New Guinea) Douglas Street, P.O. Box 1492, NCD Port Moresby, 675-321-1455, Fax 675-320-0637, INMARSAT Tel 011-872-1534721, Workweek: 7:45am -4:30pm, Website: http://Portmoresby.usembassy.gov.

TRAVEL

Consular Information Sheet

January 8, 2008

Country Description: Vanuatu consists of more than 80 islands in a Y-shaped archipelago, 1300 miles northeast of Sydney, Australia. It is an independent parliamentary democracy and a member of the British Commonwealth, with a primarily agricultural economy. Tourist facilities are limited outside the capital, Port Vila, which is located on the Island of Efate. The National Tourism Office of Vanuatu can be contacted at PO Box 209, Port Vila, Vanuatu, telephone (678) 22515, 22685, 22813, fax (678) 23889, e-mail: [email protected].

Entry Requirements: A valid passport, and onward/return ticket and proof of sufficient funds are required. Visas are not required for stays up to 30 days. For further information on entry requirements, particularly those planning to enter by a sailing vessel, please contact the Vanuatu Mission to the United Nations at 42 Broadway, Suite 1200-18, New York, NY 10004, tel. (212) 425-9600, fax (212) 425-9652, e-mail: vmsnyc@ attglobal.net.

Travelers who plan to transit or visit Australia must enter with an Australian visa or, if eligible, through Electronic Travel Authority (ETA). The ETA replaces a visa and allows a stay of up to three months. It may be obtained for a small service fee at http://www.eta.immi.gov.au. Airlines and many travel agents in the United States are also able to issue ETA's. Travelers may obtain more information about the ETA and Australian entry requirements from the Australian Embassy at 1601 Massachusetts Ave. NW, Washington, DC 20036, tel. (202) 797-3000, or via the Australian Embassy's web site at http://www.austemb.org.

Safety and Security: Civil disorder is rare; however, U.S. citizens are advised to avoid public demonstrations and/or political rallies if they occur. For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affairs’ web site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, as well as the Worldwide Caution, can be found

Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except for U.S. federal holidays).

Crime: Although violent crime is extremely rare in Vanuatu, burglary reports have been on the rise. Tourists, therefore, should take reasonable precautions to avoid exposing themselves to undue risk. There are higher risks for women of being a victim of sexual assault or harassment in Vanuatu, so it is therefore advisable that women travelers not travel alone.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the U.S. Embassy in Port Moresby. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the U.S. Embassy in Port Moresby for assistance. The Embassy staff can assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney, if needed.

Natural Disasters: Vanuatu is prone to earthquakes, volcanic eruptions, sudden tidal movements, tropical storms, and cyclones. The Pacific cyclone season lasts from November through April. While local media and hotels will convey cyclone alerts issued by local authorities. Detailed weather information is published by Météo-France in New Caledonia at http://www.meteo.nc/, the Fiji Meteorological Service at http://www.meteo.nc/ and the Naval Pacific Meteorology and Oceanography Center at https://metocph.nmci.navy.mil/jtwc.php.

Volcanoes/Earthquakes: Vanuatu has many active volcanoes whose risk levels can change on a daily basis. Travelers to areas where there are volcanoes can contact the Department of Geology and Mines at 22423 to obtain information about the activity of a volcano. Detailed information about earthquakes is available from the National Earthquake Information Center of the United States Geological Survey at http://earthquake.usgs.gov/regional/neic. The country is situated in an active seismic zone and earthquakes are relatively common, sometimes followed by tsunamis.

You should contact the Vanuatu Tourism Office prior to traveling to areas where volcanic activity may occur. If a natural disaster occurs, follow the advice of local authorities. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

Medical Facilities and Health Information: Medical facilities are limited. The nearest reliable medical treatment is in Australia or New Zealand. There are two hyperbaric recompression chambers in Vanuatu; one in Luganville, on Espiritu Santo Island, and the other in Port Vila. Please note, however, that diving-related injuries may require medical evacuation to Australia or New Zealand. There is a paramedic service in Vanuatu called ProMedical, which is manned by Australian and New Zealand personnel. They also handle any medical evacuations. Malaria is prevalent in some areas. Serious injuries requiring hospitalization and/or medical evacuation to the United States or elsewhere can cost thousands of dollars). Doctors and hospitals often expect immediate cash payment for their services.

Pharmacies in Vanuatu are found only in urban centers and at missionary clinics. They are small and may be inadequately stocked. Travelers should bring adequate supplies of their medications for their stay in Vanuatu.

Travelers who anticipate the possible need for medical treatment in Australia should obtain entry permission for Australia in advance. Entry permission for Australian can be granted by the Australian High Commissio in Port Vila, but it may be easier to obtain a visa or ETA prior to leaving the United States.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Vanuatu is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Vehicular traffic in Vanuatu moves on the right. Travel on highways out-side of major towns can be hazardous. Drivers and passengers are advised to wear seatbelts. There is no country-wide road network; roads are generally in poor repair. Vanuatu is a chain of islands and atolls; most long-distance travel is by air or sea. Only the capital city of Port Vila (on Efate Island) and the town of Luganville (on Espiritu Santo Island) have consistently paved roads, which have a maximum speed limit of 50 kilometers per hour. These paved roads can be quite narrow in spots; drivers should take care especially at night or along unfamiliar routes. The roads in all other areas are mostly unpaved or dirt tracks. Drivers on all roads should give way to traffic coming from the right, and to traffic coming from the left at a round-about. Travelers must take care when driving off main roads to avoid trespassing on communal land.

For specific information concerning Vanuatu driving permits, vehicle inspection, road tax and mandatory insurance, please contact the National Tourism Office of Vanuatu or the Vanuatu Mission to the United Nations at [email protected].

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Vanuatu, the U.S. Federal Aviation Administration (FAA) has not assessed Vanuatu's Civil Aviation Authority for compliance with ICAO international aviation safety standards. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Special Circumstances: Vanuatu and Australian customs authorities may enforce strict regulations concerning temporary importation into or export from Vanuatu of items such as firearms, certain prescription drugs, wooden artifacts, exotic animals, food, and sexually explicit material. Other products may be subject to quarantine. It is advisable to contact the Vanuatu Mission to the United Nations at 42 Broadway, Suite 1200 18, New York, NY 10004, tel. (212) 425-9600, fax (212) 425-9652, e-mail: [email protected], and the Australian Embassy for specific information regarding customs requirements.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship is readily available.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Vanuatu's laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession of, use of, or trafficking in illegal drugs in Vanuatu are strict and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: The U.S. Embassy in Papua New Guinea provides primary assistance for U.S. citizens in Vanuatu. The Embassy is located on Douglas Street, adjacent to the Bank of Papua New Guinea, in Port Moresby. Use that address for courier service deliveries. The mailing address is PO Box 1492, Port Moresby, N.C.D. 121, Papua New Guinea; the telephone number is (675) 321-1455; after hours duty officer telephone number is (675) 683-7943; Fax (675) 321-1593. American citizens may submit consular inquiries via e-mail to [email protected]. Other inquires may be e-mailed to our Virtual Embassy Officer (VEO) at [email protected]. For additional information, and to download forms, please refer to our virtual embassy at www.usvpp-vanuatu.org.

Americans living or traveling in Vanuatu are encouraged to register with the U.S. Embassy in Port Moresby through the State Department's travel registration web site, https://travelregistration.state.gov, and to obtain updated information on travel and security within Vanuatu. Americans without Internet access may register directly with the Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency.

International Adoption

September 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Recent U.S. immigrant visa statistics indicate that only one orphan from Vanuatu has received an adoption-based immigrant visa within the past five years.

Adoption Authority: Vanuatu courts oversee the adoption system. The court system may be reached by phone at (678) 22420.

Eligibility Requirements for Adoptive Parents: Prospective adoptive parents must be 18 years of age or older and can be either single or married. Although there are no income requirements, prospective adoptive parents must satisfy the Vanuatu courts that they are financially secure.

Residency Requirements: Although prospective adoptive parents do not need to be permanent residents of Vanuatu, they must remain in Vanuatu for the three-to-four-month period it takes for an adoption to be finalized.

Time Frame: Per above, the estimated time for an adoption to be processed is about 3 to 4 months.

Adoption Agencies and Attorneys: There are no adoption agencies in Vanuatu. However, American prospective adoptive parents may still wish to enlist the services of an American adoption agency to assist them with the overall intercountry adoption process.

Adoption Fees: American prospective adoptive parents should expect to pay less than $100 in Vanuatu government fees related to processing an adoption. It may or may not be necessary for prospective parents to pay additional fees to lawyers, depending on the services rendered.

Adoption Procedures: Applications for adoption are obtained from and must be submitted when completed to the Courthouse in Port Vila (Vanuatu's capital). The mailing address is as follows:

Courthouse in Port Vila, Private Mail Bag 9041, Port Vila, Vanuatu, Telephone—(678) 22420.

Required Documents: When submitted to the Vanuatu court, the adoption dossier must contain:

• A completed adoption application;
• Child's birth certificate;
• Bank statements for the prospective adoptive parents; and
• Prospective adopting parents’ marriage license (or proof of single status).

Vanuatu Mission to the United Nations
42 Broadway,
Suite 1200-18,
New York, NY 10004,
Tel. (212) 425-9600,
Fax (212) 425-9652,
E-mail: [email protected].

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy, Port Moresby, Papua New Guinea
Douglas Street,
P.O. Box 1492,
Port Moresby, N.C.D. 121,
Papua New Guinea
Telephone—(675) 321-1455;
Fax—(675) 321-1593.
E-mail—[email protected].

Additional Information: Specific questions about adoption in Vanuatu or immigrant visas for adopted children from Vanuatu may be addressed to the U.S. Embassy in Papua New Guinea at the address, phone number and e-mail address listed above. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

Vanuatu

Compiled from the October 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Vanuatu

PROFILE

GEOGRAPHY

PEOPLE

HISTORY

GOVERNMENT

POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS

U.S.-VANUATU RELATIONS

TRAVEL

PROFILE

Geography

Area: Land—12, 190 sq. km. (4,707 sq. mi.), over 80 Islands. Comparative area—about the size of Connecticut.

Cities: Capital—Port Vila (on the island of Efate), pop. 33,700. Other towns—Luganville (on the island of Espiritu Santo, also known as Santo).

Terrain: Mostly mountains of volcanic origin, narrow coastal plains.

Climate: Tropical.

People

Nationality: Noun and adjective—ni-Vanuatu.

Population: (2005 est.) 218,000.

Annual growth rate: (2005 est.) 2.2%.

Ethnic groups: 94% ni-Vanuatu; 4% European; 2% other Pacific Islanders, Asian.

Religion: Predominantly Christian.

Languages: Bislama (Pidgin), English, French, over 100 tribal languages.

Education: Enrollment in primary is 100% with rapid fall-off to 20% in secondary and upper secondary. Adult literacy rate (2005)—74% of those age 15 and older.

Health: Infant mortality rate (2005)—55.1/1,000. Life expectancy (2005)—62.5 yrs.

Work force: (1999) 134,000. Agriculture—65%. Industry—5%. Service—30%.

Government

Type: Parliamentary democracy.

Independence: July 30, 1980.

Constitution: July 30, 1980.

Government branches: Executive—president (head of state), prime minister (head of government). Legislative—unicameral (52-member parliament). Judicial—Supreme Court.

Political subdivisions: 6 administrative districts.

Political parties: Melanesian Progressive Party (MPP); Union of Moderate Parties (UMP); National United Party (NUP); Vanua’aku Party (VP); Vanuatu Republican Party (VRP); the Confederation of Greens (CG); John Frum group; People’s Progressive Party (PPP); National Community Association (NCA).

Suffrage: Universal over 18.

Independence Day: July 30.

Economy

GDP: (2005) $343.6 million.

Per capita income: (2005) $1,576.

Real growth rate: (2005) 3.1%.

Inflation rate: (2005) 2.6%.

Natural resources: Forests, agricultural land, marine resources.

Agriculture: Products—copra, cocoa, coffee, cattle, timber.

Industry: Types—copra production, beef processing, sawmilling, tourism, financial services.

Trade: (2003) Exports—$135.27 million: coconut oil, copra, kava, beef. Major markets—EU 44.9%, Australia 12.1%, Japan 6.8%, New Caledonia 4.6%. Imports—$181.4 million: machines and transport equipment, food and live animals, basic manufactures, mineral fuels. Major suppliers—Australia 42.5%, New Zealand 13.0%, Fiji 8.6%, Singapore 6.2%.

Exchange rate: (2005 avg.) 109.25 vatu=U.S.$1.

GEOGRAPHY

Vanuatu is a ‘Y’shaped archipelago of over 80 islands. It is located about 1,750 kilometers east of Australia. Fiji lies to the east, New Caledonia to the south, and the Solomon Islands to the northwest, all within the area of the South Pacific called Melanesia.

The two largest islands, Espiritu Santo (or Santo) and Malakula, account for nearly one-half of the total land area. They are volcanic, with sharp mountain peaks, plateaus, and lowlands. The larger islands of the remaining half also are

volcanic but are overlaid with limestone formations; the smaller ones are coral and limestone. Volcanic activity is common with an ever-present danger of a major eruption, the last of which occurred in 1945. Rainfall averages about 2,360 millimeters (94 in.) per year but can be as high as 4,000 millimeters (160 in.) in the northern islands.

PEOPLE

The population of Vanuatu is 94% indigenous Melanesian. About 33,700 live in the capital, Port Vila. Another 10,700 live in Luganville (or Santo Town) on Espiritu Santo. The remainder live in rural areas. Approximately 2,000 ni-Vanuatu live and work in New Caledonia. Although local pidgin, called Bislama, is the national language, English and French also are official languages. Indigenous Melanesians speak 105 local languages.

Christianity has had a profound influence on ni-Vanuatu society, and an estimated 90% of the population is affiliated with one of the Christian denominations. The largest denominations are Presbyterian, Roman Catholic, and Anglican. John Frum, a syncretic sect, also is important on Tanna Island.

HISTORY

The prehistory of Vanuatu is obscure; archaeological evidence supports the commonly held theory that peoples speaking Austronesian languages first came to the islands some 4,000 years ago. Pottery fragments have been found dating back to 1300-1100 B.C.

The first island in the Vanuatu group discovered by Europeans was Espiritu Santo, when in 1606 the Portuguese explorer, Pedro Fernandez De Quiros, spied what he thought was a southern continent. Europeans did not return until 1768, when Louis Antoine de Bougainville rediscovered the islands. In 1774, Captain Cook named the islands the New Hebrides, a name that lasted until independence.

In 1825, trader Peter Dillon’s discovery of sandalwood on the island of Erromango began a rush that ended in 1830 after a clash between immigrant Polynesian workers and indigenous Melanesians. During the 1860s, planters in Australia, Fiji, New Caledonia, and the Samoa Islands, in need of laborers, encouraged a long-term indentured labor trade called “blackbirding.” At the height of the labor trade, more than one-half the adult male population of several of the Islands worked abroad. Fragmentary evidence indicates that the current population of Vanuatu is greatly reduced compared to pre-contact times.

It was at this time that missionaries, both Catholic and Protestant, arrived on the islands. Settlers also came, looking for land on which to establish cotton plantations. When international cotton prices collapsed, they switched to coffee, cocoa, bananas, and, most successfully, coconuts. Initially, British subjects from Australia made up the majority, but the establishment of the Caledonian Company of the New Hebrides in 1882 soon tipped the balance in favor of French subjects. By the turn of the century, the French outnumbered the British two to one.

The jumbling of French and British interests in the islands brought petitions for one or another of the two powers to annex the territory. In 1906, however, France and the United Kingdom agreed to administer the islands jointly. Called the British-French Condominium, it was a unique form of government, with separate governmental systems that came together only in a joint court. Melanesians were barred from acquiring the citizenship of either power.

Challenges to this form of government began in the early 1940s. The arrival of Americans during World War II, with their informal demeanor and relative wealth, was instrumental in the rise of nationalism in the islands. The belief in a mythical messianic figure named John Frum was the basis for an indigenous cargo cult (a movement attempting to obtain industrial goods through magic) promising Melanesian deliverance. Today, John Frum is both a religion and a political party with a member in Parliament.

The first political party was established in the early 1970s and originally was called the New Hebrides National Party. One of the founders was Father Walter Lini, who later became Prime Minister. Renamed the Vanua’aku Pati in 1974, the party pushed for independence; in 1980, the Republic of Vanuatu was created.

GOVERNMENT

The constitution created a republican political system headed by a president who has primarily ceremonial powers and is elected by a two-thirds majority in an electoral college consisting of members of Parliament and the presidents of Regional Councils. The president serves a 5-year term. The president may be removed by the electoral college for gross misconduct or incapacity.

The prime minister, who is the head of government, is elected by a majority vote of a three-fourths quorum of the Parliament. The prime minister in turn appoints the Council of Ministers, whose number may not exceed one-fourth of the number of parliamentary representatives. The prime minister and the Council of Ministers constitute the executive government.

Parliament is a 52-member unicameral house elected by all persons over 18 years old. Parliament normally sits for a 4-year term unless dissolved by majority vote of a three-fourths quorum or a directive from the president on the advice of the prime minister. The national Council of Chiefs, called the Malvatu Mauri and elected by district councils of chiefs, advises the government on all matters concerning ni-Vanuatu culture and language.

The Supreme Court consists of a chief justice and up to three other judges. Two or more members of this court may constitute a Court of Appeal. Magistrate courts handle most routine legal matters. The legal system is based on British law. The constitution also provides for the establishment of village or island courts presided over by chiefs to deal with questions of customary law.

Principal Government Officials

Last Updated: 8/16/2006

President: Kalkot Matas KELEKELE

Prime Minister: Ham LINI

Dep. Prime Min.: Sato KILMAN

Min. of Agriculture, Forestry, & Fisheries: Barak SOPE Ma’au Tamate

Min. of the Comprehensive Reform Program: Isabelle DONALD

Min. of Education: Joseph NATUMAN

Min. of Finance & Economic Development: Moana CARCASSES

Min. of Foreign Affairs: Sato KILMAN

Min. of Health: Morkin Iatika STEVENS

Min. of Internal Affairs: Georges Andre WELLS

Min. of Lands, Geology, & Mines: Willie Jimmy TAPANGARARUA

Min. of Ni-Vanuatu Business Development: Joshua KALSAKAU

Min. of Public Utilities: Edward NATAPEI

Min. of Trade, Commerce, & Industries: James BULE

Min. of Youth & Sports: Arnold PRASAD

Permanent Representative to the UN, New York:

Vanuatu does not have an embassy in Washington. Its mission to the United Nations is located at 866 UN Plaza, 4th Floor, Room 41, First Avenue and 48th Street, New York, NY 10017. Vanuatu Maritime Services, which provides information on ship registration in Vanuatu, is located at 120 Broadway, Suite 1743, New York, NY 10271.

POLITICAL CONDITIONS

Government and society in Vanuatu tend to divide along linguistic—French and English—lines. Historically, English-speaking politicians such as Walter Lini and other leaders of the Vanua’aku Pati favored early independence, whereas French-speaking political leaders favored continuing association with the colonial administrators, particularly France.

On the eve of independence in 1980, Jimmy Stevens’ Nagriamel movement, in alliance with private French interests and backed by American libertarians hoping to establish a tax-free haven, declared the island of Espiritu Santo independent of the new government. Following independence, Vanuatu requested assistance from Papua New Guinea, whose forces restored order on Santo. From then until 1991, the Vanua’aku Pati and its predominantly English-speaking leadership controlled the Vanuatu Government, and Walter Lini became widely considered as the nation’s founding father.

In December 1991, and following a split in the Vanua’aku Pati, Maxime Carlot Korman, leader of the Franco-phone Union of Moderate Parties (UMP), was elected Vanuatu’s first Francophone prime minister. He formed a coalition government with Walter Lini’s breakaway VP faction, now named the National United Party (NUP). From 1995–2004 government leadership changed frequently thanks to unstable coalitions within the Parliament and within the major parties.

The president dissolved Parliament in May 2004 to forestall a vote of no confidence and called a special election that resulted in losses for most major parties. UMP’s leader, Serge Vohor, returned as Prime Minister at the head of an unwieldy coalition government. Following controversy over Vohor’s attempt to extend diplomatic relations to Taiwan, he was ousted by a vote of no confidence in December 2004 and replaced by Ham Lini, brother of Walter Lini. The new coalition includes ten parties and features the former opposition leader, Sato Kilman, as Deputy Prime Minister/Foreign Minister.

ECONOMY

Vanuatu’s economy is primarily agricultural; 80% of the population is engaged in agricultural activities that range from subsistence farming to smallholder farming of coconuts and other cash crops. Copra is by far the most important cash crop (making up more than 35% of the country’s exports), followed by timber, beef, and cocoa. Kava root extract exports also have become important. In addition, the government has maintained Vanuatu’s preindependence status as a tax haven and international off-shore financial center. About 2,000 registered institutions offer a wide range of offshore banking, investment, legal, accounting, and insurance and trust-company services. Vanuatu also maintains an international shipping register in New York City. In 2002, following increasing international concern over money laundering, Vanuatu increased oversight and reporting requirements for its off-shore sector.

Coconut oil, copra, kava and beef account for more than 75% of Vanuatu’s total agricultural exports and agriculture accounts for approximately 20% of GDP. Tourism is Vanuatu’s fastest-growing sector, having comprised 40% of GDP in 2000. Industry’s portion of GDP declined from 15% to 10% between 1990 and 2000. Government consumption accounted for about 27% of GDP.

Vanuatu is a small country, with only a few commodities, mostly agricultural, produced for export. In 2003, imports exceeded exports by a ratio of nearly 3 to 2. However, this was partially offset by high services income from tourism, keeping the current account balance at $-28.4 million.

Vanuatu claims an exclusive economic zone of 680,000 square kilometers and possesses substantial marine resources. Currently, only a limited number of ni-Vanuatu are involved in fishing, while foreign fleets exploit this potential.

In 1997 the government, with the aid of the Asian Development Bank, committed itself to a 3-year comprehensive reform program. During the first year of the program the government adopted a value-added tax, consolidated and reformed government-owned banks, and started a 10% downsizing in the public service. An important part of the reform installed career civil servants as Director Generals in charge of each ministry, helping to ensure continuity of service despite the frequent changes in government.

FOREIGN RELATIONS

Vanuatu maintains relations with more than 65 countries, including Russia, the People’s Republic of China, Cuba, and Vietnam. However, only Australia, France, New Zealand, and the People’s Republic of China maintain embassies, high commissions, or missions in Port Vila.

The government’s main concern has been to bolster the economy. In keeping with its need for financial assistance, Vanuatu has joined the Asian Development Bank, the World Bank, the International Monetary Fund, and the Agence de Cooperation Culturelle et Technique.

The government encourages private enterprise, foreign investment, and producer cooperatives. Like other developing countries, Vanuatu is particularly interested in enterprises that add value to local primary products and that provide employment. In less lucrative sectors, the government sets up its own production companies or enters joint ventures with foreign investors.

Since 1980, Australia, the United Kingdom, France, and New Zealand have provided the bulk of Vanuatu’s development aid. A number of other countries, including Japan, Canada, Germany, and various multilateral organizations, such as the Economic and Social Council for Asia and the Pacific, the UN Development Program, the Asian Development Bank, the European Economic Community, and the Commonwealth Development Corporation also provide developmental aid. The United States, Canada, Australia, New Zealand, the United Kingdom, and Japan also send volunteers. In March 2006 the United States Millennium Challenge Corporation signed a five-year $65.69 million Compact agreement with Vanuatu.

Vanuatu retains strong economic and cultural ties to Australia, New Zealand, and France.

Membership in International Organizations

Vanuatu is a member of the United Nations and its specialized and related agencies, including the World Bank and the International Monetary Fund; South Pacific Commission; South Pacific Forum; Non-Aligned Movement; Commonwealth, Group of 77; and Asian Development Bank (ADB).

U.S.-VANUATU RELATIONS

The United States and Vanuatu established diplomatic relations in 1986. Between 1977 and 1987, Vanuatu received just under $3 million from the U.S. Agency for International Development (USAID), including projects focusing on assisting the transition to indigenous plantation management. In June 1994, the regional USAID office located in Suva, Fiji, was closed due to U.S. Government budgetary cutbacks. The U.S. military retains training links and conducts ad hoc assistance projects in Vanuatu.

In March 2006 the United States Millennium Challenge Corporation signed a five-year $65.69 million Compact agreement with Vanuatu. The Millennium Challenge Program is expected to increase average income per capita by 15% within five years and directly impact the lives of more than 65,000 of the rural poor in Vanuatu.

Vanuatu identified costly and unreliable transportation infrastructure as a major impediment to economic growth. To overcome this constraint, the Compact consists of up to eleven infrastructure projects—including roads, wharfs, an airstrip and ware-houses—that will help poor, rural agricultural producers and providers of tourist related goods and services reduce transportation costs and improve access to transportation services.

The Compact also includes institutional strengthening efforts and policy reform initiatives in Vanuatu ‘s Public Works Department, including: provision of plant and equipment for maintenance; introduction of service performance contracts; establishment of local community maintenance schemes; and introduction of user fees.

The United States also remains a major financial contributor to international and regional organizations that assist Vanuatu, including the World Bank, UNICEF, WHO, the UN Fund for Population Activities, and the Asian Development Bank.

In 1989, the United States concluded a Peace Corps agreement with Vanuatu. The Peace Corps has met with a warm welcome there and currently has over 80 volunteers in-country. The United States also provides military training assistance to the police force.

Principal U.S. Embassy Officials

PORT MORESBY (E) Address: Douglas Street, P.O. Box 1492, NCD Port Moresby; APO/FPO: APO, AP 96553; Phone: 675-321-1455; Fax: 675-320-0637; INMARSAT Tel: 011-872-1534721; Workweek: 7:45am -4:30pm.

Last Updated: 10/20/2006

TRAVEL

Consular Information Sheet : December 27, 2006

Country Description: Vanuatu consists of 80 islands in a Y-shaped archipelago, 1300 miles northeast of Sydney, Australia. It is an independent parliamentary democracy and a member of the British Commonwealth, with a primarily agricultural economy. Tourist facilities are limited outside the capital, Port Vila, which is located on the Island of Efate. The National Tourism Office of Vanuatu can be contacted at P.O. Box 209, Port Vila, Vanuatu, telephone (678) 22515, 22685, 22813, fax (678) 23889, e-mail: [email protected].

Entry/Exit Requirements: A valid passport, and onward/return ticket and proof of sufficient funds are required. Visas are not required for stays up to 30 days. For further information on entry requirements, particularly those planning to enter by a sailing vessel, please contact the Vanuatu Mission to the United Nations at 42 Broadway, Suite 1200-18, New York, NY 10004, tel. (212) 425-9600, fax (212) 425-9652, e-mail: [email protected]. Travelers who plan to transit or visit Australia are advised to obtain an Electronic Travel Authority (ETA) or visa for Australia before leaving the United States. The ETA is available to eligible U.S. citizens at the time of ticket purchase through travel agents and airlines. More information about the ETA and Australian entry requirements may be obtained from the Australian Embassy at 1601 Massachusetts Ave., N.W., Washington, D.C. 20036, tel. (202) 797-3000, or via the Australian Embassy home page on the Internet at http://www.austemb.org/.

Safety and Security: Civil disorder is rare; however, U.S. citizens are advised to avoid public demonstrations and/or political rallies if they occur. For the latest security information, Americans traveling abroad should regularly monitor the Depart-ment’s Internet website where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Although violent crime is extremely rare in Vanuatu, burglary reports have been on the rise. Tourists, therefore, should take reasonable precautions to avoid exposing themselves to undue risk.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the U.S. Embassy in Port Moresby. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the U.S. Embassy in Port Moresby for assistance. For example, the Embassy staff can assist you to find appropriate medical care, to contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney, if needed.

Medical Facilities and Health Information: Medical facilities are limited. The nearest reliable medical treatment is in Australia or New Zealand. There is a hyperbaric recompression chamber in Luganville, on Espiritu Santo Island; however, diving-related injuries may require medical evacuation to Australia or New Zealand. Malaria is prevalent in some areas. Serious injuries requiring hospitalization and/or medical evacuation to the United States or elsewhere can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for their services. Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Vanuatu is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Vanuatu is a chain of islands and atolls; most long-distance travel is by air or sea. Only the capital city of Port Vila (on Efate Island) and the town of Luganville (on Espiritu Santo Island) have paved roads, which have a speed limit of 50 kilometers per hour. These paved roads can be quite narrow in spots; drivers should take care especially at night or along unfamiliar routes. The roads in all other areas are unpaved or dirt tracks. Drivers on all roads should give way to traffic coming from the right. Travelers must take care when driving off main roads to avoid trespassing on communal land.

For specific information concerning Vanuatu driving permits, vehicle inspection, road tax and mandatory insurance, please contact the National Tourism Office of Vanuatu or the Vanuatu Mission to the United Nations.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Vanuatu, the U.S. Federal Aviation Administration (FAA) has not assessed Vanuatu’s Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA’s Internet website at http://www.faa.gov.

Special Circumstances: Vanuatu customs authorities may enforce strict regulations concerning temporary importation into or export from Vanuatu of items such as firearms, certain prescription drugs, and sexually explicit material. Other products may be subject to quarantine. It is advisable to contact Vanuatu Mission to the United Nations at 42 Broadway, Suite 1200-18, New York, NY 10004, tel. (212) 425-9600, fax (212) 425-9652, e-mail: [email protected], for specific information regarding customs requirements.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship is readily available.

Disaster Preparedness: Vanuatu is prone to earthquakes, volcanic eruptions, sudden tidal movements, tropical storms, and cyclones. The Pacific cyclone season lasts from November through April. While local media and hotels will convey cyclone alerts issued by local authorities, detailed weather information is published by Météo-France in New Caledonia, the Fiji Meteorological Service, and the Naval Pacific Meteorology and Oceanography Centre. In case of a natural disaster, follow the advice of local authorities. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

In mid-May 2006, the dormant volcano on Lopevi Island became active. Since mid-September 2005, Mount Yasur volcano on Tanna Island has shown an increase in volcanic activity. The Manaro volcano on the island of Ambae and the volcanoes on the island of Ambrym have now become less active.

Visitors should contact the Vanuatu Tourism Office prior to traveling to areas where volcanic activity may occur. Detailed information about earthquakes is available from the National Earthquake Information Center of the United States Geological Survey at http://earthquake.usgs.gov/regional/neic/.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Vanuatu’s laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Vanuatu are strict and convicted offenders can expect jail sentences and heavy fines. Engaging in sexual conduct with children or using, or disseminating, child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration and Embassy Location: The U.S. Embassy in Papua New Guinea provides primary assistance for U.S. citizens in Vanuatu. The Embassy is located on Douglas Street, adjacent to the Bank of Papua New Guinea, in Port Moresby. Use that address for courier service deliveries. The mailing address is P.O. Box 1492, Port Moresby, N.C.D. 121, Papua New Guinea; the telephone number is (675) 321-1455; after hours duty officer telephone number is (675) 683-7943; Fax (675) 321-1593. American citizens may submit consular inquiries via e-mail to [email protected]. Other inquires may be e-mailed to http://PortMoresby.USEmbassy.gov. For additional information, and to download forms, please refer to the Virtual Embassy at www.usvpp-vanuatu.org. Americans living or traveling in Vanuatu are encouraged to register with the U.S. Embassy in Port Moresby through the State Department’s travel registration website and to obtain updated information on travel and security within Vanuatu. Americans without Internet access may register directly with the Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. Persons who have previously registered with the Embassy are requested to re-register online to update their records.

International Adoption : September 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Recent U.S. immigrant visa statistics indicate that only one orphan from Vanuatu has received an adoption-based immigrant visa within the past five years.

Adoption Authority: Vanuatu courts oversee the adoption system. The court system may be reached by phone at (678) 22420.

Eligibility Requirements for Adoptive Parents: Prospective adoptive parents must be 18 years of age or older and can be either single or married. Although there are no income requirements, prospective adoptive parents must satisfy the Vanuatu courts that they are financially secure.

Residency Requirements: Although prospective adoptive parents do not need to be permanent residents of Vanuatu, they must remain in Vanuatu for the three-to-four-month period it takes for an adoption to be finalized.

Time Frame: Per above, the estimated time for an adoption to be processed is about 3 to 4 months.

Adoption Agencies and Attorneys: There are no adoption agencies in Vanuatu. However, American prospective adoptive parents may still wish to enlist the services of an American adoption agency to assist them with the overall intercountry adoption process.

Adoption Fees: American prospective adoptive parents should expect to pay less than $100 in Vanuatu government fees related to processing an adoption. It may or may not be necessary for prospective parents to pay additional fees to lawyers, depending on the services rendered.

Adoption Procedures: Applications for adoption are obtained from and must be submitted when completed to the Courthouse in Port Vila (Vanuatu’s capital). The mailing address is as follows:

Courthouse in Port Vila
Private Mail Bag 9041
Port Vila, Vanuatu
Telephone—(678) 22420.

Documentary Requirements: When submitted to the Vanuatu court, the adoption dossier must contain:

• A completed adoption application;
• Child’s birth certificate;
• Bank statements for the prospective adoptive parents; and
• Prospective adopting parents’ marriage license (or proof of single status).

Vanuatu Mission to the United Nations:
42 Broadway
Suite 1200-18
New York, NY 10004
Tel. (212) 425-9600
Fax (212) 425-9652
E-mail: [email protected].

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adopting Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

U.S. Embassy, Port Moresby, Papua New Guinea:
Douglas Street
P.O. Box 1492
Port Moresby, N.C.D. 121
Papua New Guinea
Telephone—(675) 321-1455;
Fax—(675) 321-1593.
E-mail—[email protected].

Additional Information: Specific questions about adoption in Vanuatu or immigrant visas for adopted children from Vanuatu may be addressed to the U.S. Embassy in Papua New Guinea at the address, phone number and e-mail address listed above. General questions regarding intercountry adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

VANUATU

Compiled from the December 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Vanuatu

PROFILE

Geography

Area: Land—12,200 sq. km. (4,707 sq. mi.), includes more than 80 Islands. Comparative area—about the size of Connecticut.

Cities: Capital—Port Vila (on the island of Efate), pop. 30,000. Other towns—Luganville (on the island of Espiritu Santo, also known as Santo).

Terrain: Mostly mountains of volcanic origin, narrow coastal plains.

Climate: Tropical.

People

Nationality: Noun and adjective—ni-Vanuatu.

Population: (2003 est.) 208,000.

Annual growth rate: (2003 est.) 2.7%.

Ethnic groups: 94% ni-Vanuatu; 4% European; 2% other Pacific Islanders, Asian.

Religions: Predominantly Christian.

Languages: Bislama (Pidgin), English, French, over 100 tribal languages.

Education: Enrollment in primary is 100% with rapid fall-off to 20% in secondary and upper secondary. Adult literacy rate (2004)—53% of those age 15 and older.

Health: Infant mortality rate (2004) 56.63/1,000. Life expectancy (2004) 62.1 yrs.

Work force: (1999) 134,000. Agriculture—65%. Industry—5%. Service—30%.

Government

Type: Parliamentary democracy.

Independence: July 30, 1980.

Constitution: July 30, 1980.

Branches: Executive—president (head of state), prime minister (head of government). Legislative—unicameral (52-member parliament). Judicial—Supreme Court.

Administrative subdivisions: 6 administrative districts.

Political parties: Vanua'aku Pati, Union of Moderate Parties, Melanesian Progressive Party, National United Party, People's Democratic Party, John Frum.

Suffrage: Universal over 18.

National holiday: July 30.

Economy

GDP: (2003) $281 million.

Per capita income: (2003) $1,180.

Real growth rate: (2000) 1.6%.

Avg. inflation rate: (2002) 2%.

Natural resources: Forests, agricultural land, marine resources.

Agriculture: Products—copra, cocoa, coffee, cattle, timber.

Industry: Types—copra production, beef processing, sawmilling, tourism, financial services.

Trade: (2003) Exports—$92 million: cocoa, beef and veal, copra, timber, kava, coffee. Major markets—India 31.9%, Thailand 27.5%, South Korea 10.2%, Indonesia 6.1%, Australia 4.6%, Japan 4.1%, Germany 1.4%, United States 1.2%. Imports—$136 million: machines and transport equipment, foodstuffs, fuel, basic manufactures, chemicals, miscellaneous manufactures. Major suppliers—Australia 22.9%, Singapore 12.1%, New Zealand 9.9%, Fiji 7.4%, France 5.8%, India 5.5$%, Japan 3.1%, US 1.1%.

Official exchange rate: (2003 avg.) 122 vatu=U.S.$1.

GEOGRAPHY

Vanuatu is a 'Y' shaped archipelago that comprises 80 islands. It is located 2,172 kilometers (1,303 mi.) northeast of Sydney and 5,750 kilometers (3,450 mi.) southwest of Honolulu. Fiji lies to the east, New Caledonia to the south, and the Solomon Islands to the northwest, all within the area of the South Pacific called Melanesia.

The two largest islands, Espiritu Santo (or Santo) and Malakula, account for nearly one-half of the total land area. They are volcanic, with sharp mountain peaks, plateaus, and lowlands. The last volcanic eruption was in 1945. The larger islands of the remaining half also are volcanic but are overlaid with limestone formations; the smaller ones are coral and limestone. Rainfall averages about 2,360 millimeters (94 in.) per year but can be as high as 4,000 millimeters (160 in.) in the northern islands.

PEOPLE

The population of Vanuatu is 94% indigenous Melanesian. About 30,000 live in the capital, Port Vila. Another 10,700 live in Luganville (or Santo Town) on Espiritu Santo. The remainder live in rural areas. Approximately 2,000 ni-Vanuatu live and work in New Caledonia. Although local pidgin, called Bislama, is the national language, English and French also are official languages. Indigenous Melanesians speak 105 local languages.

Christianity has had a profound influence on ni-Vanuatu society, and an estimated 90% of the population is affiliated with a Christian denomination. The largest denominations are Presbyterian, Roman Catholic, and Anglican. John Frum, a syncretic sect, also is important on Tanna Island.

HISTORY

The prehistory of Vanuatu is obscure; archaeological evidence supports the commonly held theory that peoples speaking Austronesian languages first came to the islands some 4,000 years ago. Pottery fragments have been found dating back to 1300-1100 B.C.

The first island in the Vanuatu group discovered by Europeans was Espiritu Santo, when in 1606 the Portuguese explorer, Pedro Fernandez De Quiros, spied what he thought was a southern continent. Europeans did not return until 1768, when Louis Antoine de Bougainville rediscovered the islands. In 1774, Captain Cook named the islands the New Hebrides, a name that lasted until independence.

In 1825, trader Peter Dillon's discovery of sandalwood on the island of Erromango began a rush that ended in 1830 after a clash between immigrant Polynesian workers and indigenous Melanesians. During the 1860s, planters in Australia, Fiji, New Caledonia, and the Samoa Islands, in need of laborers, encouraged a long-term indentured labor trade called "blackbirding." At the height of the labor trade, more than one-half the adult male population of several of the Islands worked abroad. Fragmentary evidence indicates that the current population of Vanuatu is greatly reduced compared to pre-contact times.

It was at this time that missionaries, both Catholic and Protestant, arrived on the islands. Settlers also came, looking for land on which to establish cotton plantations. When international cotton prices collapsed, they switched to coffee, cocoa, bananas, and, most successfully, coconuts. Initially, British subjects from Australia made up the majority, but the establishment of the Caledonian Company of the New Hebrides in 1882 soon tipped the balance in favor of French subjects. By the turn of the century, the French outnumbered the British two to one.

The jumbling of French and British interests in the islands brought petitions for one or another of the two powers to annex the territory. In 1906, however, France and the United Kingdom agreed to administer the islands jointly. Called the British-French Condominium, it was a unique form of government, with separate governmental systems that came together only in a joint court. Melanesians were barred from acquiring the citizenship of either power.

Challenges to this form of government began in the early 1940s. The arrival of Americans during World War II, with their informal demeanor and relative wealth, was instrumental in the rise of nationalism in the islands. The belief in a mythical messianic figure named John Frum was the basis for an indigenous cargo cult (a movement attempting to obtain industrial goods through magic) promising Melanesian deliverance. Today, John Frum is both a religion and a political party with two members in Parliament.

The first political party was established in the early 1970s and originally was called the New Hebrides National Party. One of the founders was Father Walter Lini, who later became Prime Minister. Renamed the Vanua'aku Pati in 1974, the party pushed for independence; in 1980, the Republic of Vanuatu was created.

GOVERNMENT

The constitution created a republican political system headed by a president who has primarily ceremonial powers and is elected by a two-thirds majority in an electoral college consisting of members of Parliament and the presidents of Regional Councils. The president serves a 5-year term. The president may be removed by the electoral college for gross misconduct or incapacity. The prime minister, who is the head of government, is elected by a majority vote of a three-fourths quorum of the Parliament. The prime minister in turn appoints the Council of Ministers, whose number may not exceed one-fourth of the number of parliamentary representatives. The prime minister and the Council of Ministers constitute the executive government.

Parliament is a 52-member unicameral house elected by all persons over 18 years old. Parliament normally sits for a 4-year term unless dissolved by majority vote of a three-fourths quorum or a directive from the president on the advice of the prime minister. The national Council of Chiefs, called the Malvatu Mauri and elected by district councils of chiefs, advises the government on all matters concerning ni-Vanuatu culture and language.

The Supreme Court consists of a chief justice and up to three other judges. Two or more members of this court may constitute a Court of Appeal. Magistrate courts handle most routine legal matters. The legal system is based on British law. The constitution also provides for the establishment of village or island courts presided over by chiefs to deal with questions of customary law.

Principal Government Officials

Last Updated: 11/29/04

President: Kelekele , Kalkot Matas
Prime Minister: Vohor , Serge
Dep. Prime Min.: Lini , Ham
Min. of Agriculture, Forestry, & Fisheries: Kalsakau , Steven
Min. of the Comprehensive Reform Program: Sope Maautamate , Barak
Min. of Education: Natuman , Joseph
Min. of Finance & Economic Development: Carcasses , Moana
Min. of Foreign Affairs: Marcellino , Pipite
Min. of Health: Song , Keasipal
Min. of Home Affairs: Lini , Ham
Min. of Lands, Geology, & Mines: Salwai , Charlot
Min. of Ni-Vanuatu Business Development: Steven , Morkin
Min. of Public Utilities: Jimmy , Willie
Min. of Trade & Business Development: Bule , James
Min. of Youth & Sports: Tore , Pierre
Permanent Representative to the UN, New York: Carlot , Alfred Rolland

Vanuatu does not have an embassy in Washington. Its mission to the United Nations is located at 866 UN Plaza, 4th Floor, Room 41, First Avenue and 48th Street, New York, NY 10017. Vanuatu Maritime Services, which provides information on ship registration in Vanuatu, is located at 120 Broadway, Suite 1743, New York, NY 10271.

POLITICAL CONDITIONS

Government and society in Vanuatu tend to divide along linguistic—French and English—lines. Historically, English-speaking politicians

such as Walter Lini, Donald Kalpokas, and other leaders of the Vanua'aku Pati favored early independence, whereas French-speaking political leaders favored continuing association with the colonial administrators, particularly France.

On the eve of independence in 1980, Jimmy Stevens' Nagriamel movement, in alliance with private French interests and backed by American libertarians hoping to establish a tax-free haven, declared the island of Espiritu Santo independent of the new government. Following independence, Vanuatu requested assistance from Papua New Guinea, whose forces restored order on Santo. From then until 1991, the Vanua'aku Pati and its predominantly English-speaking leadership controlled the Vanuatu Government.

In December 1991, and following a split in the Vanua'aku Pati, Maxime Carlot Korman, leader of the Franco-phone Union of Moderate Parties (UMP), was elected Vanuatu's first Francophone prime minister. He formed a coalition government with Walter Lini's breakaway VP faction, now named the National United Party (NUP).

Following parliamentary elections on November 30, 1995, Carlot Korman was succeeded by Serge Vohor, a dissident UMP leader. Over the next 2 years, government leadership changed several times thanks to unstable coalitions within the Parliament. In November 1997, the President dissolved Parliament. Following the subsequent election on March 6, 1998, Donald Kalpokas, the leader of the Vanua'aku Pati, was elected Prime Minister. A vote of no confidence in November 1999 brought Barak Sope to the fore as Prime Minister. Yet another vote of no confidence resulted in the selection of Edward Natapei as Prime Minister in March 2001. Edward Natapei returned as Prime Minister in the May 2002 national parliamentary elections.

The president dissolved Parliament in May 2004 to forestall a vote of no confidence and called a special election that resulted in losses for most major parties. Serge Vohor returned as Prime Minister at the head of an unwieldy coalition government. Following controversy over Vohor's attempt to extend diplomatic relations to Taiwan, he was ousted by a vote of no confidence in December 2004 and replaced by Ham Lini. The new coalition includes ten parties and features the former opposition leader, Sato Kilman, as Deputy Prime Minister/Foreign Minister.

ECONOMY

Vanuatu's economy is primarily agricultural; 80% of the population is engaged in agricultural activities that range from subsistence farming to smallholder farming of coconuts and other cash crops. Copra is by far the most important cash crop (making up more than 35% of the country's exports), followed by timber, beef, and cocoa. Kava root extract exports also have become important. In addition, the government has maintained Vanuatu's preindependence status as a tax haven and international off-shore financial center. About 2,000 registered institutions offer a wide range of offshore banking, investment, legal, accounting, and insurance and trust-company services. Vanuatu also maintains an international shipping register in New York City. In 2002, following increasing international concern over the potential for money laundering, Vanuatu increased oversight and reporting requirements for its off-shore sector.

Copra, cocoa, kava and beef account for more than 60% of Vanuatu's total exports by value and agriculture accounts for approximately 20% of GDP. Tourism is Vanuatu's fastestgrowing sector, having comprised 40% of GDP in 2000. Industry's portion of GDP declined from 15% to 10% between 1990 and 2000. Government consumption accounted for about 27% of GDP.

Vanuatu is a small country, with only a few commodities, mostly agricultural, produced for export. In 2000, imports exceeded exports by a ratio of nearly 4 to 1. However, this was offset by high services income from tourism, which kept the current account balance fairly even.

Vanuatu claims an exclusive economic zone of 680,000 square kilometers and possesses substantial marine resources. Currently, only a limited number of ni-Vanuatu are involved in fishing, while foreign fleets exploit this potential.

In 1997 the government, with the aid of the Asian Development Bank, committed itself to a 3-year comprehensive reform program. During the first year of the program the Government has adopted a value-added tax, consolidated and reformed governmentowned banks, and started a 10% downsizing in the public service. The program was derailed when Barak Sope became Prime Minister. Under Prime Minister Edward Natapei, reform programs have slowly been reintroduced.

FOREIGN RELATIONS

Vanuatu maintains relations with more than 65 countries, including Russia, the People's Republic of China, Cuba, and Vietnam. However, only Australia, the United Kingdom, France, New Zealand, and the People's Republic of China maintain embassies, high commissions, or missions in Port Vila.

The government's main concern has been to bolster the economy. In keeping with its need for financial assistance, Vanuatu has joined the Asian Development Bank, the World Bank, the International Monetary Fund, and the Agence de Cooperation Culturelle et Technique.

The government encourages private enterprise, foreign investment, and producer cooperatives. Like other developing countries, Vanuatu is particularly interested in enterprises that add value to local primary products and that provide employment. In less lucrative sectors, the government sets up its own production companies or enters joint ventures with foreign investors.

Since 1980, Australia, the United Kingdom, France, and New Zealand have provided the bulk of Vanuatu's development aid. A number of other countries, including Japan, Canada, Germany, and various multilateral organizations, such as the Economic and Social Council for Asia and the Pacific, the UN Development Program, the Asian Development Bank, the European Economic Community, and the Commonwealth Development Corporation also provide developmental aid. The United States, Canada, Australia, New Zealand, the United Kingdom, and Japan also send volunteers.

Vanuatu retains strong economic and cultural ties to Australia, New Zealand, the United Kingdom, and France. Australia has provided the bulk of Vanuatu's military assistance, training its paramilitary mobile force and also providing patrol boats to patrol Vanuatu's waters.

Membership in International Organizations

Vanuatu is a member of the United Nations and its specialized and related agencies, including the World Bank and the International Monetary Fund; South Pacific Commission; South Pacific Forum; Non-Aligned Movement; Commonwealth, Group of 77; and Asian Development Bank (ADB).

U.S.-VANUATU RELATIONS

The United States and Vanuatu established diplomatic relations in 1986. Between 1977 and 1987, Vanuatu received just under $3 million from the U.S. Agency for International Development (USAID), including projects focusing on assisting the transition to indigenous plantation management. In June 1994, the regional USAID office located in Suva, Fiji, was closed due to U.S. Government budgetary cutbacks. The U.S. military retains training links and conducts ad hoc assistance projects in the island. However, the United States remains a major financial contributor to international and regional organizations that assist Vanuatu, including the World Bank, UNICEF, WHO, the UN Fund for Population Activities, and the Asian Development Bank.

In 1989, the United States concluded a Peace Corps agreement with Vanuatu. The Peace Corps has met with a warm welcome there and currently has about 75 volunteers in-country. The United States also provides military training assistance to the Vanuatu Mobile Force, a paramilitary branch of the Vanuatu police.

Principal U.S. Embassy Officials

PORT MORESBY (E) Address: Douglas Street, P.O. Box 1492, NCD Port Moresby; Phone: 675-321-1455; Fax: 675-320-0637; INMARSAT Tel: 011-872-1534721; Workweek: 7:45am -4:30pm

TRAVEL

Consular Information Sheet

September 14, 2004

Country Description: Vanuatu consists of 80 islands in a Y-shaped archipelago, 1300 miles northeast of Sydney, Australia. It is an independent parliamentary democracy and a member of the British Commonwealth, with a primarily agricultural economy. Tourist facilities are limited outside the capital, Port Vila, which is located on the island of Efate.

Entry/Exit Requirements: A passport and an onward/return ticket are required. Visas are not required for stays up to 30 days. For further information on entry requirements, particularly those planning to enter by sailing vessel, please contact the Vanuatu Mission to the United Nations at 42 Broadway, Suite 1200-18, New York, NY 10004, tel. (212) 425-9600, fax (212) 422-3427. The National Tourism Office of Vanuatu can be contacted at P.O. Box 209, Port Vila, Vanuatu, tel. (678) 22515/22685/22813, fax (678) 23889, e-mail: [email protected].

Travelers who plan to transit or visit Australia are advised to obtain an Electronic Travel Authority (ETA) or visa for Australia before leaving the United States. The ETA is available to eligible U.S. citizens at time of ticket purchase through travel agents and airlines. More information about the ETA and Australian entry requirements may be obtained from the Australian Embassy at 1601 Massachusetts Ave., N.W., Washington, D.C. 20036, tel. (202) 797-3000, or via the Australian Embassy home page on the Internet at http://www.austemb.org.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian if not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Safety and Security: Civil disorder is rare; however, U.S. citizens are advised to avoid public demonstrations and/or political rallies if and when they occur. It is advisable for females to avoid jogging or walking alone in urban or rural areas.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up to date information on security can also be obtained by calling 1-888-407-4747 toll free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Although violent crime is rare in Vanuatu, petty theft does occur. The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy, which is located in Port Moresby, Papua New Guinea. If you are the victim of a crime while in Vanuatu, in addition to reporting to local police, please contact the U.S. Embassy in Port Moresby for assistance. The Embassy staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlet A Safe Trip Abroad for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs home page at http://travel.state.gov.

Medical Facilities: Medical facilities are limited. The nearest reliable medical treatment is in Australia or New Zealand. There is a hyperbaric recompression chamber in Luganville, on Espiritu Santo Island; however, diving-related injuries may require medical evacuation to Australia or New Zealand. Malaria is prevalent in some areas. Serious injuries requiring hospitalization and/or medical evacuation to the United States or elsewhere can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for their services.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas, including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the United States may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, please ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses that you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State, Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Other Health Information: Information on vaccinations and other health precautions may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Vanuatu is provided for general reference only, and it may not be totally accurate in a particular location or circumstance:

Safety of Public Transportation: Good
Urban Road Conditions/Maintenance: Good to Poor
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Not available

Vanuatu is a chain of islands and atolls; most long-distance travel is by air or sea. Only the capital city of Port Vila (on Efate Island) and the town of Luganville (on Espiritu Santo Island) have paved roads, which have a speed limit of 50 kilometers per hour. These paved roads can be quite narrow in spots; drivers should take care, especially at night or along unfamiliar routes. The roads in all other areas are unpaved or dirt tracks. Drivers on all roads should give way to traffic coming from the right. Travelers must take care when driving off main roads to avoid trespassing on communal land.

For additional general information about road safety, including links to foreign government sites, please see the Department of State, Bureau of Consular Affairs, home page at travel.state.gov/travel/abroad_road safety.html. For specific information concerning Vanuatu driving permits, vehicle inspection, road tax and mandatory insurance, please contact the National Tourism Office of Vanuatu or the Vanuatu Mission to the United Nations.

Aviation Safety Oversight: As there is no direct commercial air service by local carriers at present, or economic authority to operate such service, between the United States and Vanuatu, the U.S. Federal Aviation Administration (FAA) has not assessed Vanuatu's Civil Aviation Authority for compliance with international aviation safety standards. For further information, travelers may contact the Department of Transportation within the United States at tel. 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa/index.cfm.

Customs Regulations: Vanuatu customs authorities may enforce strict regulations concerning temporary importation of items such as firearms, sexually explicit material and certain prescription medications. It is advisable to contact the Vanuatu Mission to the United Nations for specific information regarding customs requirements.

In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found here.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Vanuatu laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Vanuatu are strict, and convicted offenders can expect jail sentences and heavy fines.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Disaster Preparedness: Vanuatu is prone to earthquakes, volcanic eruptions, sudden tidal movements, tropical storms and cyclones. The Pacific cyclone season lasts from November through April. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/family/index.html or telephone the Overseas Citizens Services call center at 1-888-407-4747. The OCS call center can answer general inquiries regarding international adoptions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. Federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy and Consulate Locations: There is no U.S. Embassy or diplomatic post in Vanuatu. Americans living or traveling in Vanuatu are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Vanuatu. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

Persons who have previously registered with the U.S. Embassy in Port Moresby are requested to please reregister on line to update your records. The U.S. Embassy is located on Douglas Street, adjacent to the Bank of Papua New Guinea. This address should be used for courier deliveries. The Embassy's mailing address is P.O. Box 1492, Port Moresby, NCD 121, Papua New Guinea. Tel. (675) 321-1455; fax (675) 321-1593; American citizens may submit consular inquiries by e-mail to [email protected].