The island group of which Vanuatu is a part has been settled since BC 500. Up to and beyond the 13th century AD, it was at the heart of the empire of Tonga. During the 19th century, the islands making up Vanuatu (then called the New Hebrides) were settled by British and French missionaries, planters and traders. The UK and France eventually agreed on a condominium over the two islands. After World War II, a complex power struggle began between the indigenous islanders and the dual colonial interests over the future political and economic course of the islands. The constitutional position was settled
in 1977, at a conference between British, French and New Hebridean representatives in Paris; it was agreed that the islands should become fully independent within three years.
At elections held in November 1979, just a few months before scheduled independence, the
Vanuaaku Pati (VP) under Walter Lini, an Anglican priest, took a majority in the 46-member parliament. The VP won further elections in November 1983 and December 1987. During this period, Lini adopted radical, sometimes adventurous policies, both at home and abroad. Vanuatu is the only Pacific island to join the Non-Aligned Movement. It is also a member of the Melanesian Spearhead Group – together with Papua New Guinea and the Solomon Islands – whose principal aims are to preserve Melanesian cultural traditions and lobby for independence of New Caledonia (Fiji joined the Group in 1996). It was also strongly opposed to French nuclear tests in the Pacific during the mid-1990s. Lini was eventually deposed as VP leader in 1991 and the VP lost office shortly afterwards. Vanuatu’s other main political party, the Union of Moderate Parties (UMP), took office under the leadership of the francophone Maxime Carlot.
Carlot served two terms before the VP recovered power in 1999. Edward Napatei of the VP party won the poll held in 2002. Then, in July 2004, Serge Vohor once again became Prime Minister (for the third time), only to be ousted on a vote of no confidence in December 2004, following a controversial move of Vohor's part to attempt to switch diplomatic recognition from Chinese to Taiwan without even first (reputedly) consulting his ministers. He was quickly replaced by Han Lini, who swiftly revoked the agreements with Taiwan that had been signed. Kalkot Mataskelekele's post as President has been, by comparison, highly stable. However, parties in Vanuatu have been subject to splits and factional disputes and these have dogged Vanuatu’s politics throughout the last decade. (Carlot left the UMP to form his own, relatively unsuccessful outfit, the
Vanuatu Republikan Pati.)
Corruption scandals have also become commonplace, involving leading members of both the VP and UMP. (Ex-VP Prime Minister Barak Sope was jailed in 2002 for three years.) Moreover, after developing an offshore financial services industry, Vanuatu found itself on an international blacklist of countries which had failed to tackle money-laundering. In 2003, it was removed from the list (see
Economy), but the reputation has withheld.
GovernmentThere is a unicameral parliament with 52 members, elected for four years by popular vote and responsible for legislation. Executive power is the responsibility of the Council of Ministers, appointed by the Prime Minister, who is elected by the Parliament. The President, who is Head of State, is elected by an electoral college consisting of the Parliament of the heads of the regional councils.
EconomyAgriculture and fishing occupy 40% of the working population. Fruit and vegetables are grown for domestic consumption while coffee, copra, beef and veal are the main export commodities. The sale of fishing licenses to foreign fleets is another important source of revenue.
There is also a sizeable timber industry, originally encouraged by the government but now strictly regulated in the wake of international pressure. The industrial sector is mostly concerned with food processing and construction. Identified mineral resources, including manganese, gold and copper have yet to be exploited on a commercial scale.
While mineral deposits may be of future value to the Vanuatu economy, the government’s recent efforts to diversify the economy have been focused on the service sector. The most important of these is tourism (backed by the construction of new hotels and airport improvements, allied to a focus on ‘ecotourism’) and ‘offshore’ financial services. Tourism is worth about US$55 million to the economy annually. Visitor numbers have increased significantly over the last 12 months. A ‘flag of convenience’ shipping register was also created.
Despite these efforts, the economy is still vulnerable to its geographical circumstances; a severe earthquake followed by a tsunami in late 1999 caused considerable damage to several islands. Meanwhile, offshore finance has run into trouble. In April 2002, Vanuatu was one of seven countries ‘named and shamed’ by the Organization for Economic Cooperation and Development (OECD) and threatened with sanctions for its failure to take adequate measures against money-laundering. Since then, the Vanuatu authorities have tightened their financial services regulatory regime.
Foreign aid remains essential to sustain the economy. In 2002, Vanuatu signed up to the newly-established regional trade bloc created under the Pacific Island Countries Trade Agreement (PICTA). Australia, New Zealand, Japan, the UK and France are the principal donors.
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