DOCSLIB.ORG

Fi Public Disclosure Authorized Public Disclosure Authorized

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Fi Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ,~~~~~~~~~~~~~fi 00 oa~~ A WORLD BANK COUNTRY STUDY Enhancing the Role of Government in the Pacific Island Economies The WorldBank Washington,D.C. Copyright © 1998 The International Bank for Reconstruction and Development/THE WORLD BANK 1818H Street, N.W. Washington, D.C. 20433,U.S.A. All rights reserved Manufactured in the United States of America First printing October 1998 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910,222 Rosewood Drive, Danvers, Massachusetts 01923,U.S.A. Map illustration by Karen Siatras, Meadows Design Office Inc., Washington, D.C. (www.mdomedia.com). ISSN: 0253-2123 Libraryof Congress Cataloging-in-Publication Data Enhancing the role of government in the Pacific Island economies. p. cm. - (A World Bank country study) Includes bibliographical references. ISBN 0-8213-4351-3 1. Islands of the Pacific-Economic policy. 2. Islands of the Pacific-Social policy. 3. Government spending policy-Islands of the Pacific. 4. Finance, Public-Islands of the Pacific- Accounting. 5. Total quality management in government-Islands of the Pacific. I. World Bank. II. Series. HC681.E545 1998 338.99-dc2l 98-45139 CIP - 111- CONTENTS Page No. Abstract .................... vi Acknowledgments.................... vii Acronyms and Abbreviations.................... viii CurrencyEquivalents .................... ix Executive Summary.................... xi 1. Overview.............................................................. 1I Introduction............................................................. I EconomicPerformance .............................................................. 1 The East Asian Financial Crisis.......................................... .................... 4 RekindlingGrowth .............................................................. 5 2. The Scope of Government:Focusing on Essential Public Activities............................... 7 Structure and Size of Government.............................................................. 7 RecentPolicy Initiativesto Reformthe Public Sector........................................................ 9 Focusing on Core Functionsof Government............................................................. 11 Stable, Credible,and Non-DistortionaryEconomic Policies ............................................ 12 Law and PropertyRights ............................................................. 14 EnhancingPrivate Sector Growth:A SupportiveRole for Governmentin Key Areas .... 16 ImprovingGovernance: Reducing Administrative Discretion and ImprovingPublic Accountability............................................................. 19 3. Enhancing the Effectiveness of Public Expenditures: Spending Patterns and Policies............................................................................ ..... ................ 23 Balancing the EconomicComposition of Expenditure.23 Public ExpenditureReform: Easier Said than Done.26 ImprovingIntrasectoral Expenditure: Health, Education and Infrastructure.26 Conclusions.32 4. Planning and Budgetingfor More Effective Spending.33 Signpostson the Path to Reform.33 The TraditionalBudget System:The StandardAgainst which ReformsShould be Measured.33 Characteristicsof Well-PerformingBudgets .35 Performance-OrientedBudgeting: Potential for Improvementbut Not a Panacea. 36 ProgramFormats and PerformanceMeasures .36 MakingBudgets in a Medium-TermFramework .37 Broad-Bandingand Decentralizationof SpendingAuthority .37 Strengtheningthe PSIP.38 Directions for BudgetaryReform .39 - iv - Page No. Annex 1: Count ryProfiles ................................................................. 45 Fiji ................................................................. 46 Kiribati................................................................. 50 FederatedStates of Micronesia................................................................. 53 Marshall Islands................................................................. 56 Republicof Palau................................................................. 59 Samoa................................................................. 62 SolomonIslands ................................................................. 66 Tonga................................................................. 70 Vanuatu................................................................. 74 Annex 2: Budgeting in the Pacific Member Countries - From Cash Management to Output Management ................................................................. 77 Annex 3: The Structure and Size of the Public Sector in the PMCs ............................................. 88 Annex 4: Participatory Development: The Challenge of Inclusion .................... ........................103 Annex 5: The State of the Environment in the PMCs ................................................................. 110 Annex 6: Relationship between Foreign Aid and Government Expenditure .............................. IIl Statistical Appendix on Public Finance................................................................. 1113 Bibliography ................................................................. 119 Map: IBRD 29631 -v List of Tables Page No. 1.1 GDP Growth, 1987-97 ................................................ 2 1.2 Marginal Efficiency of Investment ................................................ .4 2.1 As Aid Flows Increase So Does Government Expenditure ................................................ 9 2.2 PMC Government Resources, Expenditure, Deficits and Growth.................................... 12 2.3 Government Overall Balance, Including Grants ................................................ 13 2.4 Public Debt Indicators, 1995-96................................................ 13 3.1 Economic Composition of Government Expenditure in PMCs, 1995 .............................. 24 3.2 Government Current Expenditure on Health, 1990-96................................................ 27 3.3 Government Expenditure on Education, 1990-96................................................ 29 List of Figures 1.1 Average Growth Performance, 1985-1995................................................. 2 1.2 Achieving Sustainable Development ................................................. 6 4.1 State of Reforms in Selected PMCs ................................................ 40 List of Boxes 1.1 Pacific Islands -The Stylized Facts.......................... 3 2.1 Building Capability-Addressing Governance Issues ...................................................... 21 4.1 Strengthening Budgeting through a Medium-Term Expenditure Framework .................. 37 List of Charts Chart 2.1: Government Expenditure in Low and Middle Income Economies .7 Chart 2.2: The Government Wage and Salary Bill in Low and Middle Income Economies .8 Chart 4.1: Aid per Capita in 107 Low and Middle Income Countries .44 - vi - ABSTRACT This report discusses how the Pacific Islands development agenda could be put into practice by improving the effectiveness of government activities in nine Pacific Island countries that are members of the World Bank (PMCs)-Fiji, Kiribati, Federated States of Micronesia, Marshall Islands, Republic of Palau, Samoa, Solomon Islands, Tonga and Vanuatu. The report analyzes the scope of government in the PMCs, their spending patterns and priorities, and the budgetary processes that give rise to spending choices. It is structured along three interlinking themes about enhancing the role of government: (i) to focus on core functions, match government tasks to its capacity, and to improve public sector accountability; (ii) to raise the efficiency of public
Load more

Recommended publications
  • Introduction
    Introduction Brij V. Lal Soldiers rioting on the steps of parliament house in Papua New Guinea; tumultuous politics besetting the presidency in Vanuatu; political assassi­ nations in New Caledonia; confrontation between soldiers and civilians on the troubled island of Bougainville. In other, calmer times, such inci­ dents of terror and violence would have stunned observers of Pacific Island affairs. But in the aftermath of the dramatic events in Fiji, news of upheaval in the islands is increasingly being greeted with a weary sense of deja vu. Such has been their impact that the Fiji coups and the forces they have unleashed are already being seen as marking, for better or worse, a turning point not only in the history ofthat troubled island nation but also in the contemporary politics ofthe Pacific Islands region. The issues and emotions that the Fiji coups have engendered touch on some of the most fundamental issues of our time: the tension between the rights ofindigenous peoples ofthe Pacific Islands and the rights ofthose of more recent immigrant or mixed origins; the role and place of traditional customs and institutions in the fiercely competitive modern political arena; the structure and function of Western-style democratic political processes in ethnically divided or nonegalitarian societies; the use of mili­ tary force to overthrow ideologically unacceptable but constitutionally elected governments. These and similar issues, rekindled by the events in Fiji, will be with us for a long time to come. Unlike any other event in recent Pacific Islands history, the Fiji crisis has generated an unprecedented outpouring of popular and scholarly litera­ ture, as our Book Review and Resources sections amply demonstrate.
    [Show full text]
  • FIJI Building Inclusive Institutions for Sustained Growth COUNTRY DIAGNOSTIC STUDY
    FIJI BUILDING INCLUSIVE InstitUTIONS foR SUstained GROWTH COUNTRY DIAGNOSTIC STUDY ASIAN DEVELOPMENT BANK FIJI BUILDING INCLUSIVE InstitUTIONS foR SUstained GROWTH COUNTRY DIAGNOSTIC STUDY Economic Research and Regional Cooperation Department November 2015 ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2015 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org Some rights reserved. Published in 2015. Printed in the Philippines. ISBN 978-92-9257-099-6 (Print), 978-92-9257-100-9 (e-ISBN) Publication Stock No. RPT157617-2 Cataloging-In-Publication Data Asian Development Bank Fiji: Building inclusive institutions for sustained growth. Mandaluyong City, Philippines: Asian Development Bank, 2015. 1. Economic development. 2. Fiji. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.
    [Show full text]
  • Aviation in the Pacific International Aviation Services Are Crucial to Trade, Growth, and Development in the Pacific Region
    Pacific Studies Series About Oceanic Voyages: Aviation in the Pacific International aviation services are crucial to trade, growth, and development in the Pacific region. Improved access provided by international aviation from every other region in the world to an increasing number of islands is opening new opportunities. Tourism contributes substantially to income and employment in many Pacific countries, usually in areas outside of the main urban centers, and enables air freight services for valuable but perishable commodities that would otherwise not be marketable. Although some features of the Pacific region make provision of international aviation services a challenge, there have also been some notable successes that offer key lessons for future development. Case studies of national aviation sector experience show the value of operating on commercial principles, attracting international and OCEANIC V private-sector capital investment, assigning risk where it can best be managed, and liberalizing market access. Integration of the regional market for transport services, combined with harmonized but less restrictive regulations, would facilitate a greater range of services at more competitive prices. Pacific island country governments have the ability to create effective operating environments. When they do so, experience O shows that operators will respond with efficient service provision. YAGES: About the Asian Development Bank Av ADB aims to improve the welfare of the people in the Asia and Pacific region, IATI particularly the nearly 1.9 billion who live on less than $2 a day. Despite many success stories, the region remains home to two thirds of the world’s poor. ADB is O N IN THE PACIFIC a multilateral development finance institution owned by 67 members, 48 from the region and 19 from other parts of the globe.
    [Show full text]
  • The Case of the Fiji Islands
    University of Missouri, St. Louis IRL @ UMSL Dissertations UMSL Graduate Works 12-13-2011 Explaining Investment Policies in Microstates: The Case of the Fiji Islands Sudarsan Kant University of Missouri-St. Louis Follow this and additional works at: https://irl.umsl.edu/dissertation Part of the Political Science Commons Recommended Citation Kant, Sudarsan, "Explaining Investment Policies in Microstates: The Case of the Fiji Islands" (2011). Dissertations. 395. https://irl.umsl.edu/dissertation/395 This Dissertation is brought to you for free and open access by the UMSL Graduate Works at IRL @ UMSL. It has been accepted for inclusion in Dissertations by an authorized administrator of IRL @ UMSL. For more information, please contact [email protected]. Explaining Investment Policies in Microstates: The Case of the Fiji Islands By Sudarsan Kant A Dissertation Submitted to the Graduate School of the University of Missouri-St. Louis In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy In Political Science November 15, 2011 Advisory Committee Kenneth Thomas, PhD., (Chair) Nancy Kinney, Ph.D. Eduardo Silva, Ph.D. Daniel Hellinger, Ph.D. Abstract . Prevailing theories have failed to take into account the development of policy and institutions in microstates that are engineered to attract investments in areas of comparative advantage as these small islands confront the challenges of globalization and instead have emphasized migration, remittances and foreign aid (MIRAB) as an explanation for the survival of microstates in the global economy. This dissertation challenges the MIRAB model as an adequate explanation of investment strategy in microstates and argues that comparative advantage is a better theory to explain policy behavior of microstates.
    [Show full text]
  • Economy and State in Fiji Before and After the Coups
    Economy and State in Fiji before and after the Coups Bruce Knapman This paper is a rt;:vision and update of an earlier article on the economic consequences ofthe I987 military coups d'etat in Fiji (Knapman I988a). Its purpose is to explain what has happened against a background analysis of postindependence development, and to predict what is likely to happen. It is not prescriptive, but it does comment on the universalist, promarket, antistate analysis and policy recommendations in two recent books on the Fiji economy (Cole and Hughes I988; Kasper, Bennett, and Blandy I988). The conclusion is that Fiji probably faces a future ofeconomic stagnation. DEVELOPMENT ISSUES AND PERFORMANCE I970-1986 In I874, at the beginning of the colonial period, Fiji's largely self-sufficient subsistence economy supported a population of about I40,000 Fijians who tolerated a shaky frontier economy of less than 2000 white settlers and traders. By I970, at the end of the colonial period, Fiji had an export economy supporting a population of 480,000. Of these, 200,000 were indigenous land-owning Fijians, 76 percent ofwhom lived in rural villages and retained a significant commitment to subsistence agriculture and neo­ traditional society. Another 24°,000 were Indians, 6I percent of whom lived in rural areas: they were predominantly Fiji-born (therefore "Indo­ Fijian"), grew the principal export crop (sugarcane) on leased land, and were prominent in small-scale commercial and service enterprises. The remaining, almost entirely urban, population consisted of Europeans and Chinese who dominated the management of largely foreign-owned big business in the manufacturing (mainly sugar milling), banking, trade, and tourism sectors (Knapman I987, I; CES, July I988; Fisk I970, 36-42).
    [Show full text]
  • The Development Impact of Workers' Remittances in Fiji
    Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. The Development Impact of Workers’ Remittances in Fiji A thesis presented in partial fulfilment of the requirements for the degree of Master of Arts At Massey University Palmerston North, New Zealand Nilesh Prakash 2009 i Acknowledgements I would like to express my sincere gratitude to my supervisor, Associate Professor Dr. Rukmani Gounder for her excellent guidance and encouragement throughout my candidature. Her expertise and enthusiasm has been greatly helpful in the completion of this thesis. Many thanks also for her invaluable help in attaining all the datasets used in this study. Special thanks also to Dr. Hattice Ozer-Bali from the Department of Economics and Finance for her advice on econometrics procedures. I extend my sincere gratitude and appreciation to the Government of Fiji, in particular the Ministry of National Planning for providing me an opportunity to undertake postgraduate studies in New Zealand. Special thanks are also due to NZAID for funding my study at Massey University. Particular thanks to Sylvia, Olive and all the staff at the International Student Support for their unconditional support and guidance during my stay in New Zealand. My thanks also go to Mr. Toga Raikoti of the Fiji Islands Bureau of Statistics for providing the household survey data. I acknowledge the support of my family during my study process. They have been my source of strength.
    [Show full text]
  • Gains from Trade Versus Adjustment Costs: the Economic Partnership Agreement and the Pacific Agreement on Closer Economic Relations
    Gains from trade versus adjustment costs: The Economic Partnership Agreement and the Pacific Agreement on Closer Economic Relations by Uwe Kaufmann A thesis submitted in fulfillment of the requirements for the degree of Masters of Commerce School of Economics Faculty of Business and Economics The University of the South Pacific June, 2008 © Uwe Kaufmann 2008 Declaration This thesis contains my own work except where otherwise indicated. Uwe Kaufmann June 2008 ii Acknowledgements I would like to thank my Supervisor, Dean of the Faculty of Business and Economics of the University of the South Pacific, Professor Biman Chand Prasad for his advice, the stimulating discussions, his support and understanding during my studies of the Masters of Commerce program. Thank you also for making my studies at the University of the South Pacific successful. I am further grateful to my advisors Professor Ronald C. Duncan, Professor B. Bhaskara Rao, Dr. Haruo Nakagawa and Rup Singh. Without the encouragement of Professor Ron Duncan, I would have never thought about commencing my studies in the Pacific region. I am very grateful for his support throughout my studies at the University of the South Pacific, his help and introduction to the important areas of research in the Pacific Islands. Professor Duncan made me understand the problems of development economics, the obstacles to sustainable growth of developing countries and pointed out the importance of the aspects of this thesis. Thank you for all the interesting and helpful discussions, your advice and much more! I am very grateful for all your help! Professor Rao was my Professor and supervising Professor in three courses of my postgraduate studies at the University of the South Pacific and helped me in the field of international economics and econometrics and supported me whenever I was in need for clarification or any kind of help (including Sunday afternoons).
    [Show full text]
  • An Assessment of the Impact of Climate Change on Agriculture and Food Security – Vanuatu
    AN ASSESSMENT OF THE IMPACT OF CLIMATE CHANGE ON AGRICULTURE AND FOOD SECURITY – VANUATU AN ASSESSMENT OF THE IMPACT OF CLIMATE CHANGE ON AGRICULTURE AND FOOD SECURITY A CASE STUDY IN VANUATU 25 CLIMATE CHANGE AND FOOD SECURITY IN PACIFIC ISLAND COUNTRIES TABLE OF CONTENTS 27 ~ EXECUTIVE SUMMARY LIST OF TABLES 28 ~ SUMMARY OF RECOMMENDATIONS 45 ~ Table 1: Temperature scenario 29 ~ INTRODUCTION 45 ~ Table 2: Precipitation scenario 30 ~ PHYSICAL AND NATURAL ENVIRONMENT 45 ~ Table 3: Sea-level rise scenario OF VANUATU 54 ~ Table 4: Potential impacts of climate 33 ~ ECONOMY change on agriculture and food security 35 ~ SOCIAL AND CULTURAL SETTING 78 ~ Table 5: A national strategy to mitigate and adapt to climate change 37 ~ THE AGRICULTURE SECTOR IN VANUATU 88 ~ Table 6: Vulnerability assessment of 41 ~ SIGNIFICANCE OF GLOBAL CLIMATE some small islands of Vanuatu to climate CHANGE TO THE PACIFIC ISLAND change and climate variability COUNTRIES 44 ~ CLIMATE CHANGE SCENARIO IN VANUATU LIST OF FIGURES 48 ~ THE LIKELY IMPACTS OF CLIMATE 46 ~ Figure 1: Historical climate trends CHANGE AND CLIMATE VARIABILITY ON Annual mean temperature: AGRICULTURE AND FOOD SECURITY IN Nambatu (Efate) VANUATU 46 ~ Figure 2: Historical climate trends 54 ~ TYPOLOGY OF LIKELY CLIMATE CHANGE Annual mean temperature: IMPACTS ON AGRICULTURE AND FOOD Pekoa (Santo) SECURITY 47 ~ Figure 3: Historical climate trends 55 ~ OTHER FACTORS CONTRIBUTING TO THE Average annual rainfall VULNERABILITY OF AGRICULTURE AND Nambatu (Efate) FOOD SECURITY IN VANUATU 47 ~ Figure 4: Historical
    [Show full text]
  • Effect of Procurement Policy on Aid Inflows in the Pacific: Accounting for Economic Growth and Financial Development in Fiji
    Inzinerine Ekonomika-Engineering Economics, 2017, 28(5), 505–513 Effect of Procurement Policy on aid Inflows in the Pacific: Accounting for Economic Growth and Financial Development in Fiji Ronald Ravinesh Kumar, Arvind Patel, Madhukar Singh University of the South Pacific Laucala Campus, Suva, Fiji Islands E-mail. [email protected]; [email protected]; [email protected] http://dx.doi.org/10.5755/j01.ee.28.5.17292 A detailed public procurement policy in Fiji was just introduced in 2010. However, no study has been done to examine the impact of the policy on the aid inflows. In this study, we examine the short-run and long-run impact of adopting the (new) public procurement policy on the aid inflows from the bilateral donors: Australia, the United Nations (UN), the European Union (EU), Japan, the Republic of Korea, France, and Germany. The autoregressive distributed lag (ARDL) procedure is used to examine co-integration and the subsequent short-run and long-run effects. Additionally, the model incorporates per capita income, financial development, and crisis as a structural dummy; and the presence of threshold effect on aid inflows is examined. The results show that procurement legislation, financial development, per capita income and crisis have a long-run association with aid inflows. The new public procurement legislation has a positive effect on aid inflows from Australia, the EU, Germany, and the total aid. In the short-run, procurement legislation has a positive effect on aid inflows from the Republic of Korea only; and the procurement policy and financial development have a long-run positive effect on aid inflows to Fiji.
    [Show full text]
  • Volume 1 VANUATU Diagnostic Trade Integration Study
    Volume 1 VANUATU Diagnostic Trade Integration Study November 2007 DRAFT R E P O T TABLE OF CONTENTS LIST OF ACRONYMS LIST OF TABLES,BOXES, FIGURES ETC. MAP OF VANUATU FOREWORD EXECUTIVE SUMMARY SUMMARY OF RECOMMENDATIONS DRAFT DTIS ACTION MATRIX SECTION I. CROSS-CUTTING ISSUES CHAPTER 1: MACROECONOMIC ENVIRONMENT 1.1 Introduction 1.2 Background 1.3 Composition of the economy 1.4 Recent economic growth 1.5 Fiscal policy 1.6 Monetary policy 1.7 Inflation 1.8 Impact of aid 1.9 Conclusions CHAPTER 2: BUSINESS ENVIRONMENT AND INVESTMENT POLICY 2.1 Introduction 2.2 Overview of policy 2.3 The business environment 2.4 Investment trends and policy 2.5 Financial services 2.6 Utilities 2.7 Conclusions CHAPTER 3: INSTITUTIONAL FRAMEWORK FOR MAINSTREAMING TRADE 3.1 Introduction 3.2 Mainstreaming trade in Vanuatu 3.3 Gender 3.4 Local government 3.5 The private sector 3.6 Civil society 3.7 Academia 3.8 Conclusions CHAPTER 4: TRADE POLICY 4.1 Introduction 4.2 Trade performance 4.3 The Department of Trade, Industry and Investment 4.4 Trade regime 4.5 Multilateral/ regional trade agreements 4.6 LDC graduation 4.7 Conclusions CHAPTER 5: TRADE FACILITATION 5.1 Introduction 5.2 Roles and responsibilities in trade facilitation 5.3 National and regional approaches 5.4 Sanitary and phyto-sanitary systems 5.5 Transport, storage and wharfage 5.6 Overall conclusions and recommendations CHAPTER 6: TRADE, POVERTY AND HUMAN DEVELOPMENT 6.1 Introduction 6.2 Poverty and human development in Vanuatu 6.3 Human development performance 6.4 The rural economy 6.5 The subsistence effect 6.6 Trade, poverty and human development in the rural economy 6.7 The urban economy 6.8 Conclusions SECTION II.
    [Show full text]
  • 60.7 Vanuatu
    VANUATU anuatu’s economic freedom score is 60.7, making its economy the V 98th freest in the 2020 Index. Its overall score has increased by 4.3 points due to a significant recovery in fiscal health. Vanuatu is ranked 19th among 42 countries in the Asia–Pacific region, and its overall score is approximately equal to the regional average and slightly below the world average. WORLD RANK: REGIONAL RANK: The economy of Vanuatu returned to the ranks of the moderately free this year, but just barely. GDP growth during the past five years has 98 19 been solid. ECONOMIC FREEDOM STATUS: Economic freedom could be improved in Vanuatu if the government MODERATELY FREE took steps to improve the business climate, reform the judicial system, open the financial sector to more competition, and fight corruption more energetically. Frequent changes of allegiance by members of parliament, as well as tight restrictions on when and for how long parliament can sit, continue to have a negative effect on the formulation and implementa- tion of policy. ECONOMIC FREEDOM SCORE ▲ UP 4.3 POINTS 60.7 0 50 60 70 80 100 REGIONAL AVERAGE WORLD (ASIA-PACIFIC REGION) 61.1 61.6 AVERAGE HISTORICAL INDEX SCORE CHANGE (SINCE 2009): +2.3 RECENT FREEDOM TREND QUICK FACTS POPULATION: UNEMPLOYMENT: 69.5 0.3 million 5.4% 67.4 GDP (PPP): INFLATION (CPI): $0.8 billion 2.8% 60.8 60.7 3.2% growth in 2018 5-year compound FDI INFLOW: $38.0 million 56.4 annual growth 2.7% $2,862 per capita PUBLIC DEBT: 50.5% of GDP 2018 data unless otherwise noted.
    [Show full text]
  • Table of Contents
    Table of Contents Page List of Tables ........................................................................................................................... ix List of Figures ......................................................................................................................... xi Abbreviations and Acronyms .................................................................................................. xiii Foreword .................................................................................................................................. xv Acknowledgements ................................................................................................................. xvii Executive Summary ................................................................................................................ xix 1. Study Objectives and Background 1.1 Objectives of the study ............................................................................................. 1 1.2 Background ............................................................................................................... 1 1.2.1 Location ........................................................................................................... 1 1.2.2 Population ........................................................................................................ 1 1.2.3 Climate ............................................................................................................. 3 1.2.4 Soils, vegetation and land use .........................................................................
    [Show full text]