Friday, July 01, 2005
Vanuatu. A Private Sector Assessment. Issues, Challenges and Policy Options
By: The Enterprise Research Institute
For: the Asian Development Bank Under: RETA 6037: Private Sector Development Strategy for the Pacific, 2003
References to the islands of the Pacific usually conjure up images of deep blue seas, sandy beaches lined with waving palm fronds, and natives in grass skirts – a picture evocative of paradise where one can languish in the beauty of pristine, unspoiled nature, away from the stresses of modern urban society. Unfortunately, this image of the slumberous South Seas, if it ever were true, is disappearing. Behind the façade of serenity, are societies – small island nations – struggling to find their place in a growing and globalizing world. The islands of the Pacific are a conglomerate of fledgling nations most so small that they have been described as “the confetti of the Commonwealth.” Statehood for many is less than thirty years. Before they have had time to find their feet they have been forced to confront global forces even as they attempt to establish the basic building blocks of a sovereign state. This harsh reality is often in sharp conflict with the traditional values and cultural norms that define the Pacific way of life. As a result, especially in the more culturally diverse Melanesian societies, internal conflict has recently become more prevalent. Much of this conflict is generated by competition for scarce resources, lack of employment opportunities, and poor governance. It is within this context that Vanuatu, and more importantly for this report, the Vanuatu private sector has developed. The first part of the report is devoted to a broad overview of the Vanuatu economy. It then goes on to discuss the major issues that face the private sector and the issues that determine the cost of doing business in Vanuatu and concludes with recommendations that would improve the business environment in the country.
For: the Asian Development Bank Under: RETA 6037: Private Sector Development Strategy for the Pacific, 2003
References to the islands of the Pacific usually conjure up images of deep blue seas, sandy beaches lined with waving palm fronds, and natives in grass skirts – a picture evocative of paradise where one can languish in the beauty of pristine, unspoiled nature, away from the stresses of modern urban society. Unfortunately, this image of the slumberous South Seas, if it ever were true, is disappearing. Behind the façade of serenity, are societies – small island nations – struggling to find their place in a growing and globalizing world. The islands of the Pacific are a conglomerate of fledgling nations most so small that they have been described as “the confetti of the Commonwealth.” Statehood for many is less than thirty years. Before they have had time to find their feet they have been forced to confront global forces even as they attempt to establish the basic building blocks of a sovereign state. This harsh reality is often in sharp conflict with the traditional values and cultural norms that define the Pacific way of life. As a result, especially in the more culturally diverse Melanesian societies, internal conflict has recently become more prevalent. Much of this conflict is generated by competition for scarce resources, lack of employment opportunities, and poor governance. It is within this context that Vanuatu, and more importantly for this report, the Vanuatu private sector has developed. The first part of the report is devoted to a broad overview of the Vanuatu economy. It then goes on to discuss the major issues that face the private sector and the issues that determine the cost of doing business in Vanuatu and concludes with recommendations that would improve the business environment in the country.