HISTORY OF VANUATU

Multiple waves of colonizers, each speaking a distinct language, migrated to the New Hebrides in the millennia preceding European exploration in the 18th century. This settlement pattern accounts for the complex linguistic diversity found on the archipelago to this day. The British and French, who settled the New Hebrides in the 19th century, agreed in 1906 to an Anglo-French Condominium, which administered the islands until independence in 1980, when the new name of Vanuatu was adopted.

GOVERNMENT

The politics of Vanuatu take place within the framework of a constitutional democracy. The constitution provides for a representative parliamentary system. The head of the Republic is an elected President, but the Prime Minister of Vanuatu is the head of government. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The Judiciary is independent of the executive and the legislature.

Vanuatu has a multi-party system of government. Government and society in Vanuatu tend to divide along linguistic — French and English — lines.

ECONOMY

Primarily based on small-scale agriculture, which provides a living for about two-thirds of thepopulation. Fishing, offshore financial services, and tourism, with nearly 197,000 visitors in 2008, are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits which creates the need for a bio-fuel product. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002, the government stepped up efforts to boost tourism through improved air connections, resort development, and cruise ship facilities. Agriculture, is a second target for growth. Australia and New Zealand are the main suppliers of tourists and foreign aid. Government depends on foreign grants and loans to balance its budget. GDP growth is expected at 0.2% per annum until 2014.

gdp

30%

VANUATU COCONUT INDUSTRY

There have been some development in the last few years that provide renewed optimism for the future of Vanuatu coconut industry. These are; • The reopening of the Santo oil mill under professional and experienced Ni Vanuatu management, which has reintroduced competition into the marketing system. Issues of long term ownership of the mill and capital investment still need to be resolved.

There has been structural change in the world market for coconut oil driven by the diversion of other edible oils (particularly palm oil) away from their traditional uses to the rapidly expending bio-fuel market. This diversion of supply has increased the demand for coconut oil. The result has been the doubling of global coconut oil prices over the last two years.

A combination of strong world demand for coconut oil and increased domestic competition for copra supplies has seen the local copra prices reach its highest level in more than a decade.
The medium to long term price prospect for coconut oil are now seen as favourable. In the past, peaks of copra prices were the result of short term supply factors such as a cyclone in the Philippines. On this occasion, the increased in price is driven by a longer term structural increase in the demand for coconut oil.
There has been a positive response from copra farmers to the more favourable price environment, with copra production in 2007 and 2008 expected to reach 40,000 tonnes, the highest level in a decade.

CONTACT COPSL

Phone:+(678) 37 678

Fax:+(678) 37 688

Email:admin@copsl.com.au

PO Box 240,

Luganville, Espiritu Santo Vanuatu