international trade and prospects for development of Vanuatu

What are the barriers to international trade for your country? 

Vanuatu suffers from being located in a remote region of the world, and this isolation hinders the country's ability to greatly expand trade due to the expense of transportation overseas. Many of the islands in the nation also suffer from minimal development and isolation. The country is prone to damage from natural disasters which likely staves off certain development. 

What strategy(ies) has your country implemented to overcome these barriers?  What strategy(ies) would you argue would be helpful?  Why? 

Vanuatu has set up favorable tax structures as well as creating a supportive environment in order to increase overseas investment into the country. The country has created and joined many trade organizations to overcome its isolated location as well as foster trade relationships in the international community. The country's high turnover in leadership positions needs to end in order to create a more stable government. This would provide a clear image to and increase confidence in overseas investors and governments that Vanuatu is ready and able to take steps towards implementing policy without worry that any progress will be halted due to sudden government changes. The government can initiate greater infrastructure investment or subsidize the cost of trade in order to create more favorable transit pricing when doing business from Vanuatu. The country can also invest in greater natural disaster proof industries and infrastructure in order to minimize impact from these events. 

What is your country's history of dealings with the IMF and/or World Bank?  How have these dealings been helpful and/or not helpful?  Explain.

Vanuatu is a member of both the IMF and World Bank, taking aid from these international organizations. The IMF just concluded a mission in 2018 to the country to help with the recovery and economic sustainability efforts after a cyclone in 2015. The IMF achieved its goals within the country for GDP growth and infrastructure and industry recovery. (IMF Staff Concludes) The World Bank is also helping the country, maintaining the Vanuatu Aviation Investment Project with almost $60 million in funding to develop, train, and maintain the operational oversight of international travel as well as developing infrastructure. (Projects: Vanuatu)

Work Cited

Jamie Tahana. "Vanuatu's government faces one of its toughest tests yet." Radio New Zealand. 10 Nov. 2018. Web. 12 Feb. 2019. <https://www.radionz.co.nz/international/pacific-news/375617/vanuatu-s-government-faces-one-of-its-toughest-tests-yet>

N.a. "Australia - Oceania :: Vanuatu — The World Factbook - Central Intelligence Agency." Cia.gov. 31 Jan. 2019. Web. 12 Feb. 2019. <https://www.cia.gov/library/publications/the-world-factbook/geos/nh.html>

N.a. "IMF Staff Concludes 2018 Article IV Mission to Vanuatu." IMF. 7 Feb. 2018. Web. 21 Feb. 2019. <https://www.imf.org/en/News/Articles/2018/02/07/pr1839-imf-staff-concludes-2018-article-iv-mission-to-vanuatu>

U.S. Department of State. "Vanuatu." U.S. Department of State. n.d. Web. 21 Feb. 2019. <http://www.state.gov/r/pa/ei/bgn/2815.htm>

Vanuatu IPA. "Infrastructure - Vanuatu IPA." Vanuatu IPA. n.d. Web. 12 Feb. 2019. <http://www.investvanuatu.org/wp/industries/infrastructure/>

N.a. "Projects : Vanuatu Aviation Investment Project | The World Bank." Projects.worldbank.org. n.d. Web. 21 Feb. 2019. <http://projects.worldbank.org/P154149?lang=en>