Regions and Countries

	Table of Contents
p. 9 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Vanuatu : III. Sector Strategies

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A. Agriculture

30. Agriculture is the mainstay of Vanuatu's economy, accounting for 80 percent of its exports and 19 percent of GDP⁶ . A large proportion of marketed agriculture and livestock products are raised by smallholders on land allocated to them by villages, following traditional custom rights and privileges. Forestry is important, particularly on the larger islands. Fisheries sector is underdeveloped. A high 41 percent of the land is recognized as having conditions favorable to agricultural development, yet less than half this area is under any form of cultivation. Major constraints to development include traditional land and marine tenure systems, lack of technical skill capacity, cyclone frequency and the dispersed and isolated location of communities. The agriculture sector is a priority for development under the CRP, with reforms required to improve the living standards of small-holders through improved health and education services, availability of rural credit services, abolition of export taxes, reform of coastal shipping, and strengthened quarantine and inspection services. A technical assistance grant for an Agriculture and Fisheries Review has been provided during 2000 and further opportunities for a follow up TA to prepare sector strategies and for an ensuing loan project are being explored. Reform aimed at eliminating Government involvement in direct commercial activities is of particular importance. ADB support will focus on addressing the infrastructure bottlenecks that prevent productive sector development and providing strategic policy advice aimed at enhancing the productive sectors. Emphasis has been given to assessing options for the effective provision of rural financial services, including through microfinance, with a view to preparing a project for possible ADB funding. In addition, ADB is assisting in undertaking a shipping sector review, as part of the preparation for an outer islands infrastructure development project, to facilitate the transportation of agricultural produces.