Vanuatu & Development

Identifying the Economic/Development Situation in Vanuatu »
Nicholas Burnham

Vanuatu & Development
Porta Villa
GDP Per Capita(PPP): $4600
Main Exports:
copra (made from coconuts), kava (ancient crop for beverages), beef, cocoa, and timber
9% of possible land used for agriculture (also very sustainable)
no environmental rehabilitation costs for quarrys
Main Industries: 
agriculture, tourism, financial services,
cattle raising

Government: Parliamentary Democracy
Has joined the Asian Development Bank, the World Bank, the International Monetary Fund, the Agence de Coopération Culturelle et Technique, la Francophonie and the Commonwealth of Nations

83 Islands
65 Inhabited
245,000 People
1.4% population growth
Language:
More than 100 local languages 72.6%
English 1.9%
French 1.4%
(Governed in French & English)
75% literacy

Obstacles to development:
Limited government reach (language barrier)
Nation of Islands, little land capital used 
little human capital 
Transportation Issues, poor Infrastructure 
European ban on Kava
Potential:
6.6% real GDP growth last year
New industry opening up: Manganese
An english/french speaking populace could be more easily governed  
Agriculture produced could increase 7 fold in the next 50 years with the right governance

EDUCATION INITIATIVE
Bad governance solved through public language schooling
A well managed english/french speaking populace becomes more productive & more open to the global economy
Building public language schools: (10 Basic Language Schools) $500,000

MICRO CREDIT LOAN
More State-owned Magnanese mines could be dug in order to produce more government revenue (to help with governance)
Manganese Prices have doubled in the last year according to metalprices.com
Mining Support from Australian Mainland: (2 Open Pit Mines) $8.5 Million

MICRO CREDIT LOAN
Loans for agricultural businesses to expand their land capital will aid growth, provide jobs for the unemployed (1.7%) realizing a their potential to supply a great deal of basic foodstuffs to South Pacific Island nations
Loan for new farming equipment and to buy land: $350,000

Total Loan: $8.75 Million



Egypt, Rwanda & Palestine have all experienced education initiative success stories in 2009

53 schools tested & improved quality in Egypt

Memorandums of understanding made between government and internet providers for schools in Palestine

MSPE training provided for teachers in Rwanda


Exponential growth in credit group membership for microcredit loan schemes in Bangladesh accompany GDP growth

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