Demographics

According to the last national census in 1999, the population of Vanuatu was 186 678; the 2008 mid-year estimated population is 233 000. Vanuatu has a young population, with nearly 50% below 15 years of age. Life expectancy at birth is 67 for males and 70 for females and 3% of the population is over 65 years of age. The median age is 19.4 years, with a dependency ratio of 80.

The 2008 estimated crude birth rate is 31.1 per 1000 population and the crude death rate is 5.5. The infant mortality rate was 30 per 1000 live births in 2006. The annual growth rate is 2.6% a year and the population is expected to double by 2030.

The urban population was estimated to make up 23% of the total population by 2005 and urban migration is very severe, particularly from rural islands to Port Vila and other main cities, as people seek employment or education. Most of the population are employed in subsistence agriculture the rest being in government posts, service industries and light industry.

Political situation

Vanuatu has a republican political system, currently headed by a President who has primarily ceremonial powers and who is elected for a five-year term by a two-thirds majority in the Electoral College, consisting of Members of Parliament and the presidents of Regional Councils. The Prime Minister, who is the head of the Government, is elected by a majority vote by a three-fourths quorum of Parliament. The Prime Minister appoints the Council of Ministers, whose number may not exceed one-fourth of parliamentary representatives. The Prime Minister and the Council of Ministers constitute the Executive Government. The Parliament has 52 members who are elected every four years by popular vote. The legal system of the country is based on British common law.

Vanuatu has had a relatively prolonged period of political stability. The current Government is a coalition, formed on 23 July 2004, comprising the National United Party (NUP) with Prime Minister Ham Lini Vanuaroroa and Minister of Health Morking Stevens Iatika; the People’s Progressive Party (PPP); the Melanesian Progressive Party (MPP); the Vanua’aku Party (VP); the Vanuatu Republican Party (VRP) and the Green Alliance (GA). The next election is due in September 2008.

Socioeconomic situation

The economy is based primarily on subsistence or small-scale agriculture, which provides a living for 65% of the population. Fishing, offshore financial services and tourism are other mainstays of the economy. A small light industry sector caters to the local market. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters and the long distances from main markets.

The average gross domestic product (GDP) growth rate has been about 3% over the last decade. As part of plans to improve the economic status of the country, the Government has introduced a priority action agenda: a long-term investment plan to expand the economy and improve the living standards of the people of Vanuatu. The agenda relies mainly on foreign aid for investment, with Australia, China, the European Union, Japan, Malaysia and New Zealand being the main donors.

The traditional economic staples, such as copra and kava, are not likely to sustain economic growth into the future. The Government currently subsidizes copra and demand is not increasing to meet production. Kava (Rhizoma Piperis Methystici) has been subjected to investigations into its possible detrimental effect on health, specifically liver toxicity. Cocoa could be an important export if sufficient quantities could be produced. The economy is moving towards complete dependence on the tourism industry, which will not be sustainable for economic development. Very few new jobs are created annually in all sectors of the economy, especially for returned trainees and graduates.

Vulnerabilities and hazards

Vanuatu is highly vulnerable to natural disasters as the country is in an earthquake zone. Volcanic eruptions, earthquakes, tsunamis and cyclones are the main culprits damaging the country. Most of the islands of Vanuatu are mountainous and of volcanic origin and have tropical or subtropical climates. There are several active volcanoes in Vanuatu, including several under water. Volcanic activity is common, with the ever-present danger of a major eruption.

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