Page 10 - IB Mar 2020

Vanuatu Vanuatu

Political rally in Vanuatu. Photo: Harrision Selman

NEW VANUATU GOVERNMENT TO

STRUGGLE WITH ECONOMY

By Harrison Selman to achieve the VT57 billion.”
The Vanuatu National Investment Promotion Authority
Vanuatu’s citizenship scheme has been the focus of political (VIPA) says there were greater numbers of foreign investors
campaigns as the country goes to the polls this month. One of into Vanuatu in 2019 compared to the previous nine years,
Vanuatu’s biggest revenue sources, sales of Vanuatu passports however the economy is obviously depressed in terms of the
through various ‘citizenship by investment’ programs number of businesses that are closing up since end of 2019
reportedly sky-rocketed in 2019. and candidates and businesses have called on the national
Many candidates are campaigning against the schemes, government to do more to support the business sector.
but the biggest challenge for the incoming government will The government’s policy framework plan for achieving a
be how to restore Vanuatu’s economy to meet the country’s stable, sustainable and prosperous Vanuatu within 15 years
development needs if it must stop the easy revenue made is dubbed the National Sustainable Development Plan (NSDP)
through passport sales. 2030.
While Vanuatu looks forward to celebrating 40 years of It will be interesting to see how the next government and
Independence on July 30, concerns over national identity and especially the political parties in power align their policies
sovereignty remain vast and significant for most voters who and vision based on the NSDP and how their policies will carry
were due to cast their votes March 19. forward the peoples plan 2030.
Many political candidates who were part of the incumbent Meanwhile the campaign period was marred by uncertainty
Charlot Salwai-led coalition government have been party caused by legal action. On the eve of election day, Vanuatu’s
to the various Citizenship Schemes, although their position incumbent Prime Minister Charlot Salwai, agriculture minister
during the current election campaign suggests otherwise. Matai Seremaiah, former parliamentary speaker Simeon Seule
Ralph Regenvanu a political candidate for the Port Vila and parliamentarians Jerome Ludvaune and Tomker Netvunei
constituency said more than 4000 passports have been sold learnt their names could remain on ballot papers.
since the program was introduced in 2014 and around VT13 They face charges of bribery and perjury. Fijian lawyer
billion (US$108 million) was raised and used to clear and Filimoni Vosarogo was given leave to represent them, and on
settle accumulated debts owned by the government over the March 17 the court ruled they could stand, adjourning the
years. matter to May.
The Vanuatu Government has announced a budget of Vt57 Coronoavirus conditions permitting, Vanuatu is scheduled
billion (US474 million) this year. Already a former veteran to host the Pacific Islands Forum in August, where climate
politician and former Minister of Finance, Wellie Jimmy change measures, regional economic conditions and West
Tapangararua fears this is unachievable. Papua–given a critical mass of support for pro-independence
“The government is giving us a false impression to think the activists in Vanuatu—are certain to feature.
government will generate this money so service delivery will Meanwhile the Electoral Commission has welcomed
be improved. international and local observers prior to election. The Pacific
“But it will be interesting to see the actual spending of the Islands Forum mission is led by Pita Vuki, who was also part of
government last year and where will the increase come from the Forum’s previous mission to Vanuatu and said: “I observed

10 Islands Business ,March 2020