Vanuatu

The Republic of Vanuatu is an island nation located in the South Pacific Ocean. The archipelago is located some 1,750 km east of Australia, 500 km north-east of New Caledonia, west of Fiji and south of the Solomon Islands.

Economy

Main article: Economy of Vanuatu

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The economy is based primarily on subsistence or small-scale agriculture, which provides a living for 65% of the population. Fishing, offshore financial services, and tourism (with about 50,000 visitors in 1997), are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties and a 12.5 percent Value Added Tax (VAT) on goods and services.

Related Topics:
Subsistence - Agriculture - Fishing - Financial services - Tourism - 1997 - Mineral - Petroleum - Tax

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Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. A severe earthquake in November 1999, followed by a tsunami, caused extensive damage to the northern island of Pentecote, leaving thousands homeless. Another powerful earthquake in January 2002 caused extensive damage in the capital, Port-Vila, and surrounding areas, and also was followed by a tsunami.

Related Topics:
Natural disaster - Earthquake - November - 1999 - Tsunami - Pentecote - January - 2002

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GDP growth rose less than 3% on average in the 1990s. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002, the government stepped up efforts to boost tourism. Australia and New Zealand are the main suppliers of Vanuatu's foreign aid.

Related Topics:
GDP - 1990s - Foreign aid

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Vanuatu is a tax haven that does not release account information to other governments and law enforcement agencies. In Vanuatu, there is no income tax, no withholding tax, no capital gains tax, no inheritance taxes, and no exchange controls. Companies, like Kazaa and WinMX, choose to incorporate in Vanuatu to avoid regulation and legal challenges.

Related Topics:
Tax haven - Income tax - Capital gains tax - Inheritance tax - Kazaa - WinMX

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