Country profile: Vanuatu

Vanuatu - a string of more than 80 islands once known as the New Hebrides - achieved independence from France and Britain in 1980.

Most of the islands are inhabited; some have active volcanoes.

Vanuatu is mountainous and much of it is covered with tropical rainforests. Like most of the area, it is prone to earthquakes and tidal waves. Most of the people live in rural areas and practice subsistence agriculture.

Overview

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Vanuatu has been spared the unrest which has befallen neighbouring countries such as the Solomon Islands and Fiji, although the largest island, Espiritu Santo, experienced a brief insurrection in 1980.

Forests cover much of the island chain

Local traditions are strong. Women, for example, generally have lower social standing than men and have fewer educational opportunities.

The economy has been unable to grow fast enough to meet the needs of Vanuatu's expanding population.

The main sources of revenue are agriculture and eco-tourism. Both depend on the weather, and when, as in 1999, cyclones and persistent rain hit Vanuatu, both suffer.

Tax revenue is derived from import duties, and neither personal income nor company profits are taxed.

Vanuatu tightened up its tax and regulatory systems after the Organisation for Economic Cooperation and Development warned that it could face sanctions if lax taxation regimes were exploited by criminals for money-laundering.

Australia, a key donor, has pushed for good governance and economic reform in the islands.

Facts

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Full name: Republic of Vanuatu
Population: 232,000 (UN, 2008)
Capital: Port-Vila
Area: 12,190 sq km (4,707 sq miles)
Major languages: Bislama, French, English
Major religion: Christianity
Life expectancy: 68 years (men), 72 years (women) (UN)
Monetary unit: 1 vatu = 100 centimes
Main exports: Copra, timber, beef, cocoa
GNI per capita: US $1,840 (World Bank, 2007)
Internet domain: .vu
International dialling code: +678

Leaders

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President: Kalkot Mataskelekele

One of Vanuatu's first graduate lawyers, Mr Mataskelekele was elected president of the republic in August 2004, three months after its former head of state was removed from office when it emerged he had a criminal record.

Prime minister: Edward Natapei

Edward Natapei came into office at the head of a new coalition government, after his Vanuaaku Pati emerged as the largest force in parliament following elections in September 2008.

Born in 1954, Edward Natapei was prime minister once before, between 2001 and 2004.

The current governing alliance also includes the second largest party in parliament, the National United Party of Mr Natapei's predecessor, Ham Lini, who is now deputy PM.

The new prime minister has pledged to continue the reforms and policies of Mr Lini's government, and says transparency, good governance and fighting corruption will be among the main priorities.