Vanuatu and ADB
In the Spotlight
Digital financial services (DFS) are effective means of enhancing financial inclusion in the Pacific but major challenges, including the establishment of reliable agent networks and the building of sufficient consumer trust still need to be addressed throughout the region.
A new Asian Development Bank report says Pacific economies face lower growth and tighter fiscal conditions this year due to low commodity prices and severe cyclones.
ADB and the Government of Vanuatu have signed a project agreement confirming the Cyclone Pam Road Reconstruction Project.
ADB’s interventions in the Pacific should help countries reduce the high cost of doing business and providing services, develop capacity to manage risks from economic shocks, natural disasters, and climate change, as well as promote the creation of competitive high value-added goods and services.
Vanuatu has posted strong economic performance in recent years, driven primarily by tourism, construction, and aid inflows from development partners. However, key constraints to implementing assistance programs persist. These include the country’s remoteness, small market size, underdeveloped institutions, and limited absorptive capacity. The rural economy is primarily agrarian, with largely subsistence farming, aside from some copra, beef, cocoa, and kava produced for export.
ADB's country operations business plan (COBP), 2016-2018 addresses the development needs of Vanuatu in four core sectors: energy, transport, water and other urban infrastructure and services, and private sector development.
Projects in Vanuatu
0.27(2014) Population in millions
2.6%(2009-2014) Average annual population growth rate
12.7%(2010) Population living below the national poverty line