Vanuatu comprises a chain of approximately 80 islands situated some 2,250 kilometres north-east of Sydney, Australia and 800 kilometres west of Fiji. The country lies between the latitudes of 13° and 21° and climate varies between tropical in the north to sub-tropical in the south. The total land area is approximately 14,700 square kilometres. The capital is Port Vila situated on the island of Efate.

Population

Approximately 175,000. 

Political Structure 

Vanuatu, a Republic, was formerly known as the Anglo-French Condominium of the New Hebrides. The New Hebrides was the world's only condominium and was established in 1906 by agreement between the British and the French (The London Convention of 20 October 1906) which declared the New Hebrides a region of joint interest, after years of competition and rivalry for influence between nationals of the two powers, and others such as Australian and Irish adventurers. Vanuatu, which means "our land" in many Melanesian languages, obtained its independence on 30 July 1980, a constitution was adopted and the Republic of Vanuatu came into effect.

Vanuatu is a parliamentary democracy, the head of state being the President elected by an electoral college. The position is mainly titular and has very few executive powers. The legislature consists of a single chamber, a 46 member parliament for which general elections are held every four years.

Infrastructure and Economy

There are two international airports in Vanuatu, the main one, Bauerfield, being approximately six kilometres from Port Vila. Air Vanuatu, which is owned by the Government offers three direct flights to Sydney and Brisbane, and one to Melbourne, and two to Auckland, New Zealand each week while other airlines provide regular flights to and from Auckland, Brisbane, Fiji, Nauru, New Caledonia and the Solomon Islands. Within Vanuatu, Vanair's inter-island service operates to some 22 destinations. Small charter aircraft are also available. Vanuatu has two deep sea ports (Port Vila and Santo) and a number of wharves located in outer islands.

Regular cargo services from Australia, Europe, New Zealand, United States and Japan are provided by a number of shipping lines.

There are currently over 1400 kilometres of roads within Vanuatu with several hundred more to be completed over the next four years.

The country has a dualistic economy with a large smallholder subsistence agricultural sector and a small monetised sector. The latter is based on established plantations, ranches and associated trading, manufacturing, banking and shipping services as well as the country's tourist industry. Copra is the most important cash economic activity in the rural sector followed by beef, cocoa, timber, coffee and fish.

The development of the offshore financial centre in 1971 added new dimensions to the economy and it now contributes considerably to Government revenue through the payment of annual. Registration fees for all companies, business licence fees, insurance, banking and trust company licence fees, stamp duties and other smaller fees. The offshore financial centre has also brought to the country increased employment opportunities, and an excellent infrastructure of telecommunications, banking, legal, accounting and other financial and commercial services.

Language

The official languages are English, French and Bislama (pidgin). (The language of the finance centre is predominantly English).

Currency

Vanuatu's currency is the Vatu. Its value is directly linked to a basket of currencies the composition of which is not disclosed (US$1.00 equals approximately VT110). 

Exchange Control

There are no exchange controls in Vanuatu. All major currencies can be deposited in Vanuatu and may be repatriated in the same currency or converted freely to most other currencies. 

Type of Law

Vanuatu is a common law jurisdiction. Its Constitution states that, until otherwise provided by Parliament, pre-independence British laws shall continue to the extent that they are not expressly revoked or are incompatible with the independent status of the Republic.