The Director General of the Office of the Prime Minister of Vanuatu, Jean Sese, speaks at the government funding commitment ceremony for Vanuatu Radio. Vanuatu Radio is jointly funded by NZAID, AusAID and the Vanuatu Government.
May 2008

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Vanuatu

2009/2010 Allocation | $18.0 million

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Snapshot

Vanuatu comprises of four main islands and 80 smaller islands. More than 80 different indigenous languages are spoken, a factor underlying the complex social and political fabric of the country. The three official languages are Bislama, English and French.

The population of approximately 220,000 is growing at the rate of 2.7 percent annually. 40 percent of the population is under the age of 15 and nearly 80 percent live in rural areas, mainly supported by subsistence-based agriculture. An estimated 40 percent live below the US$1 per day poverty line. Unemployment is especially high amongst youth.

Poor infrastructure and shipping services limit access to markets and services. This, along with weak local government, means that a majority of Vanuatu citizens cannot access health and education services or earn a reliable income. Urban drift contributes to the expansion of informal settlements where basic amenities are lacking. Crime rates and fears of personal safety are of increasing concern. Land disputes are a significant social and economic issue. Vanuatu is also highly vulnerable to natural disasters.

In recent years economic growth has been mainly derived from tourism, real estate sales and construction, whereas the agriculture sector and rural economic development are thought to have barely kept up with population growth. Vanuatu’s participation in the Recognised Seasonal Employer (RSE) scheme is expected to generate substantial remittances. 1707 ni-Vanuatu workers came to New Zealand in the first year of this scheme, and RSE is expected to become Vanuatu’s second largest source of foreign exchange (after tourism). Research suggests that RSE is benefiting poor households.

NZAID priorities

NZAID and the Vanuatu Government have identified the following as priority areas in the Vanuatu Country Strategy 2006-2010:

education
governance
economic development.

NZAID on the ground

Education

NZAID’s focus is to increase access to, and quality of, basic education, especially at primary school level. NZAID has led the donor community’s support for Vanuatu’s move towards a Sector Wide Approach (SWAp) in Education. The aim is for all donors to align funding with the Government of Vanuatu’s own national education plan, and channel resources through government systems rather than running separate projects. The education SWAp will support improved resource planning and capacity building, and donor funds will be reflected in national budget allocations and auditing processes.

NZAID’s support so far has included establishment of the Education Partners’ Group, which has a Code of Conduct signed by donors to show their commitment to improved donor coordination, alignment and harmonisation. NZAID support has also enabled the establishment of a comprehensive education database (Vanuatu Education Management and Information System) to support evidence-based policy development and planning. NZAID and AusAID have conducted joint missions to assess the institutional and financial management capacity of the Ministry in order to better build its capacity toward a full future SWAp.

During 2008/09 NZAID and AusAID channelled up to $10m for priorities identified by the Ministry of Education, while also assisting the Vanuatu Government prepare for a SWAp in 2010. Schools are receiving teaching materials and stationery, teachers are being supported, and refurbishment of classrooms is underway.

To assist Vanuatu in meeting its human resource needs, each year NZAID provides Vanuatu with up to 25 tertiary scholarships for study in Pacific institutions and five awards for study in New Zealand. The scholarships programme is supplemented by a Short-Term Award Scheme to cater for professional training or attachment to a New Zealand organisation to gain hands-on experience.

Governance

Social and economic pressures threaten personal safety and national stability, which makes good governance a priority for NZAID. A key focus is supporting Vanuatu in enhancing law and order. The Vanuatu Department of Correctional Services continues to benefit from prison and probationary service advice from the New Zealand Department of Corrections. The advisors mentor and train Vanuatu counterparts as part of an institutional strengthening programme. In 2009 the construction of a new Port Vila prison will replace the old, unsecure and cramped facility.

Vanuatu has struggled to fill judicial vacancies and this has resulted in a large backlog of cases. The secondment of a New Zealand judge to the Vanuatu Supreme Court helps to ensure fair and timely administration of justice.

A new strategy sets out NZAID’s approach for working with local civil society organisations (CSO). A priority is building the capacity of umbrella groups to develop and increase their membership. Support for current partners such as Wan Smolbag and Sanma Counselling Centre remain important in ensuring participation of rural communities, youth and women. Support for CSOs also helps address human rights and promote greater accountability and transparency by leaders.

NZAID also supports Vanuatu’s plans for de-centralisation to improve services to outer islands, strengthening the work of the Customary Lands Tribunal in resolving land disputes, and improving access to clean water and water resources management.

Economic development

A priority for both NZAID and the Government of Vanuatu is to see increased and steady growth in the productive sector, especially to create livelihood opportunities for outer island communities. NZAID is intensively coordinating with AusAID and the European Commission to better support the goals of the Ministry of Agriculture, Quarantine, Forestry and Fisheries. NZAID’s support for the Farmers’ Support Association and the Vanuatu Rural Development Training Centre’s Association increases access to farming innovations and vocational training by rural communities, especially women and youth.

During 2008/09, NZAID supported the Vanuatu Chamber of Commerce and Industry focussing on marketing and trade promotion, as well as promotion of ‘noble varietals’ of kava and staple root crops.

Vanuatu’s current transport infrastructure and services are major constraints to economic development. Since most islands do not have developed roads, Vanuatu relies greatly on shipping services to affordably transport goods and people. An NZAID commissioned study on inter-island shipping services was submitted for consideration by the Vanuatu Government in September 2008, and NZAID looks forward to working together with the Government to improve shipping services. In addition, NZAID has committed to supporting road construction in Santo.

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