Vanuatu Trends, Institutions, and Government

Vanuatu Trend Data The few statistics signify though that Vanuatu's GDP appears to be on an upward trend possibly signifying greater development and growth of the country's economy. The Vanuatu GDP has maintained a growing growth rate after a decline in 2009 and 2015. The GINI index data point from 2010 of 37.6 signifies a greater equality of wealth distribution and the Human Development Index of .603 is continuing to increase. This low inequality and growing development and GDP shows that the country is improving economically with the people of country gaining from this growth. N.a. "GINI index (World Bank estimate) | Data." Data.worldbank.org. n.d. Web. 8 Feb. 2019. <https://data.worldbank.org/indicator/SI.POV.GINI?end=2010&locations=VU&start=2010&view=bar> N.a. "GDP growth (annual %) | Data." Data.worldbank.org. n.d. Web. 8 Feb. 2019.

N.a. "| Human Development Reports." Hdr.undp.org. n.d. Web. 8 Feb. 2019.

N.a. "GDP (current US$) | Data." Data.worldbank.org. n.d. Web. 11 Feb. 2019.

Vanuatu Government and Political Stability

Vanuatu is a parliamentary republic that consists of a central government for the nation with a president, prime minister, and parliament and traditional leadership roles such as regional chiefs. The presidents holds a mostly honorary role, elected by the Parliament and Regional Councils to serve a five year term. Parliament consists of 52 members serving four year terms and elected through elections across the nation with proportional representation. The Prime Minister is elected by Parliament and is able to select members for their cabinet from within the Parliament.

The nation has many political parties that often split or change sides which has caused constant changes in leadership and instability in the government. Due to these changes of branching and new party majorities, there has been high turnover for the Prime Minister with recurring votes of no confidence shaking this leadership position.

Vanuatu Institution Strength

• ​​the banking system
• the legal system
• the education system
• infrastructure
• international relationships.
• market instituions

Vanuatu maintains a central bank and currency—the Vanuatu Vatu. Locally, it is allowed for people to use goods or alternate currency as exchange such as the livatu, equivalent to a fully carved boar tusk. There is presence of overseas banking in the country due to the nations laxer tax regulations (being previously known as a tax haven), providing accounts for international companies, especially from Australia and New Zealand.

Vanuatu's legal system consists of supreme court and court of appeals and lower courts. Magistrate rule on most legal procedures and island courts are placed in villages and run by the chief to act on questions regarding customary law. These courts are built upon a mix of British Common and French Civil Law.

The country has a multiple universities within the country, and spends 5.5% of the GDP towards education. The population has a 85.2% literacy rate being slightly higher for men than women. The education system still needs development as the average years of schooling for boys and girls is 10.9 years.

Vanuatu has developed and maintained domestic infrastructure, hindered towards further development by lack of access to markets. Port Villa and other major cities maintain paved, tar roadways, ports, and other necessary infrastructure. Though 80% of the country is only developed for the domestic trade that takes place with little access to the greater world.

Vanuatu has joined many international organizations, especially those involving the asia-pacific region and islands. Australia, New Zealand, China, and other countries in the region have formed close ties with the country becoming valuable trading partners and receiving aid packages.

Vanuatu Trends, Institutions, and Government

The overall uncertain trend of the GDP and slow growing HDI of Vanuatu can be attributed to its lacking infrastructure and literacy and education rates hindering fast growth within country. The political instability from constant leadership turnover likely contributes towards the slow growth as the implementation of new policy and changes slows. The occasional sudden drops in GDP growth could be due to this political instability or to the fragility of the Vanuatu economy as it the country is highly susceptible to natural disasters and global trends. The revenue gained from overseas banking, agricultural, and commodity exports are at risk due to the changing global demand for these products as well as international pressure to close loopholes and benefits. Vanuatu's government is being pushed towards greater stability which will move the country towards promoting greater infrastructure investment across the country and continued growth among the GDP and HDI.

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. "| Human Development Reports." Hdr.undp.org. 8 Feb. 2019. Web. 12 Feb. 2019. <http://hdr.undp.org/en/countries/profiles/VUT#>

N.a. "OEC - Vanuatu (VUT) Exports, Imports, and Trade Partners." Atlas.media.mit.edu. n.d. Web. 12 Feb. 2019. <https://atlas.media.mit.edu/en/profile/country/vut/>

N.a. "Reserve Bank of Vanuatu." Rbv.gov.vu. n.d. Web. 12 Feb. 2019. <http://www.rbv.gov.vu/>

N.a. "Vanuatu : Constitution and politics | The Commonwealth." Thecommonwealth.org. n.d. Web. 11 Feb. 2019. <http://thecommonwealth.org/our-member-countries/vanuatu/constitution-politics>

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