Comments

Peter, thank you for your insightful and well-structured article addressing Vanuatu’s emerging economic challenges. You effectively highlighted critical areas of concern, particularly the decline in VAT revenue, the collapse of the Citizenship by Investment Program, and the pressing need to expand productive capacity. Your emphasis on the need for drastic action and structural reforms, such as expanding the country’s long-term growth capacity, resonates strongly given the current state of Vanuatu's economy. The call for better public sector investment and more targeted spending is indeed timely, as these areas have long been underperforming. Beyond the measures you have proposed, digitization and technology offer a range of benefits that can address some of Vanuatu's critical challenges and offer transformative opportunities which Vanuatu can pioneer. I understand technology is not the only measure, but I would like to elaborate on this since it is an important one given the insufficient investment in this area. Implementing e-government solutions would streamline bureaucratic processes, reduce inefficiencies, and foster a more business-friendly environment—particularly valuable given the chronic vacancies in our public sector. As a small island nation with a limited talent pool, the more we can automate the better. Just as technology can streamline governance, it also holds vast potential to revolutionize key industries like tourism and agriculture. Leveraging digital platforms and AI-driven marketing can attract global audiences and improve customer service, while digital solutions in agriculture can increase productivity and expand access to new markets. In addition to boosting productivity in tourism and agriculture, technology can also enhance financial inclusion. Affordable mobile banking and digital payment systems could enhance financial inclusion, empowering microenterprises, especially in rural areas, to grow and thrive. And on the topic of microenterprises, we seem to have faltered. Microenterprises in Vanuatu can play a crucial role in the local economy, particularly in rural areas where formal employment opportunities are limited. With many of the area councils now starting to build critical infrastructure, including connectivity, technology can enable microenterprises improve access to finance, market access, build skills and capacity (think Youtube), participate in developing new and innovative business models, etc. Finally, beyond economic productivity, tech-driven innovations can also play a critical role in addressing climate challenges and could also strengthen Vanuatu’s climate resilience. Digital tools for environmental monitoring, renewable energy management, and disaster preparedness would not only protect the country from the looming climate crisis but also open access to global climate financing. Additionally, promoting innovation hubs and tech clusters can position Vanuatu as a leader in sustainable development, driving growth through homegrown solutions and international collaboration. Together with structural reforms, technology along with quality education and a healthy population could be the key to unlocking long-term resilience and prosperity for our country. Lauro Vives Managing Partner Pacific Development Consulting Ltd. Port Vila, Vanuatu

DISP funds are being budgeted for each District populationf or the benefit of elected members to use according to their own wisdom.

All great comments in isolataion BUT the fact is that the country, without realising it is moving to a state of over regulation in commercial matters. VIPA is where the "P" stands for prevention to start up new businesses. Instead of promotion. VFSC now requires unnecessary documents to create a a new company, etc. Opening a bank account requires FIU and multiple pages of documentaation Most countries that are progressive have few restrictions on new businesses. Vanuatu has gone the other way.

They can join at a later date.

clarify weather it is allowed under PEV for any dependents who are less 18 years join his or parents at a later date or is it compulsory that they travel at the same time

Thank you, James, for sharing part of your study.

I’m interested in studying economics.

I am also doing my own research focus on seasonal workers in Korea. Quite interesting.

Thanks Wenny. Agree with what you say about institutions, particularly healthcare and education. The ideas I raised were all simply short-term ones, but in the long-term, fixing education outweighs absolutely everything else. The only thing I'd pick up on is copra. It is a lot of work for not much money, and exports are way down (just 195m to June, compared to VUV 1,811m in 2017 at its peak. The CRB and low prices have been devastating for this. I don't think copra can therefore be really seen as a primary economic pillar any more.

The best analysis of the Forum that I've seen for a while. Honest and realistic for moving forward.

Solid reflections on a period of pacific regionalism that tested its resolve and the political will of its members. You are absolutely right about "taking critiques on the chin, and yet you go to work wanting to do more" - malo lava!

Hi Peter, thanks for the great article. We (Vanuatu) need to move faster if we truly believe we can cut out the mindless and repetitive paperwork and the associated costs that grind this country to a halt in virtually every department. The time for studies and surveys is over and it is time for change or get left behind. We should embrace the Nomad workspace culture, not only does this bring foreign investment and spending into the country, it also highlights the great opportunities here in Vanuatu for tourism and lifestyle. To entice people to visit here and create opportunities for working abroad we should consider some of the work visas and minimal or zero tax obligations that many European countries have implemented to encourage foreign income and spending which in many cases would outweigh taxable income. There have been some previous articles on the various categories of VIPA and how they discourage this type of travelling entrepreneur or business person and the current system and mindset is likely to drive many who have chosen to live and work here to look for greener pastures. I know a few...