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Paul De Grauwe

most other Pacific islands to prospective markets for tourism in Australia and New Zealand. Finally, the relative homogeneity of the population of 215,000 (the third largest in the Pacific) shields the country from both ethnic disruptions and problems associated with crime. Despite its advantages, Vanuatu continues to provide a weak environment for private activity, with poor infrastructure, rapid population growth, and political instability, and this has compounded the difficulties stemming from the still narrow output and export base. Human development indicators