International Monetary Fund. Asia and Pacific Dept
Four years after Cyclone Pam struck Vanuatu causing extensive damages, reconstruction is near completion with full recovery in sight. The authorities are now focused on implementing their broader development plans that were slowed by the rebuilding process, which will require fiscal discipline and reforms to maintain debt sustainability. The authorities should continue their constructive engagement with development partners for technical assistance, capacity development, and concessional and grant-based funding. In parallel continuing to reform and strengthen the governance of institutions and removing vulnerabilities to corruption will be important.
This Selected Issues paper focuses on the reasons for the historically weak performance of Vanuatu. Among the key factors, growth has been hindered by substantial barriers to private sector development. Impediments include political uncertainty, high costs of doing business, poor and costly infrastructure, incomplete secured transactions framework, and weak land and property rights. Although these problems are not uncommon in the Pacific island region, Vanuatu’s progress in these structural reforms has been particularly slow, deterring foreign investment and reducing external competitiveness.
This Selected Issues paper analyzes fiscal management and strategy for growth for Vanuatu. It presents an overview of recent fiscal policy and outcomes. The main structural changes in the financial sector since independence in 1980 are discussed. The paper highlights some key features common to most Pacific Island countries’ financial systems. It concludes that despite the recovery from the 1998 financial crisis, the financial system needs further reforms to promote private sector-led development in the medium term.
This paper summarizes the Detailed Assessment of Observance of Standards and Codes in the financial sector of Vanuatu in the context of the offshore financial center program. It assesses the supervision and regulation of the financial sector compliance with the Basel Core Principles for Effective Banking Supervision and the International Association of Insurance Supervisors Core Principles using the Core Principles Methodology. It also assesses the elements of legal and institutional antimoney laundering and of combating the financing of terrorism.
This report assesses Vanuatu's regulatory and supervisory arrangements for the financial sector complied with internationally accepted standards and measures of good practice. It assesses all the main domestic and offshore sectors, as well as the prudential aspects of measures to combat money laundering. It also provides recommended action plans to improve compliance of the Basel Core Principles, cross-sectoral issues, and assessment of the insurance, trust company, and company service provider sectors.
This Selected Issues paper and Statistical Appendix summarizes the factors explaining Vanuatu’s recent growth performance, which has weakened since the mid-1990s. The paper highlights that Vanuatu’s annual rate of growth averaged ¾ percent during 1997–2001, compared with 4¾ percent during 1992–1996. The paper compares Vanuatu’s external competitiveness with several other small island economies in the South Pacific region. The paper describes the development and structure of Vanuatu’s offshore financial center, examines its macroeconomic impact, and highlights some key recent developments. It also provides a preliminary assessment of the prospects for the sector.
International Monetary Fund. Secretary's Department
The speeches made by officials attending the IMF–World Bank Annual Meetings are published in this volume, along with the press communiqués issued by the International Monetary and Financial Committee and the Development Committee at the conclusion of the meetings.