Vanuatu

The purpose of this Country Strategy Paper (CSP) is to provide a framework for EC co-operation with Vanuatu under the Cotonou Agreement. The framework is based on global objectives of EC-ACP co-operation, Vanuatu’s own development policy, an analysis of the political and economic situation in the country, and an assessment of the past co-operation programmes of the EC and other donors. It concludes with the proposed EC response strategy of the 10th EDF and a National Indicative Programme (NIP).

Vanuatu is a Western South Pacific Island nation constituted of approximately 80 islands of volcanic origin of a combined area of 12,189 km2. Its population is 209,920 (2006). GDP per capita is € 1,291 (2006 estimate). Politically the Republic of Vanuatu is a parliamentary democracy.

Under the 10th EDF there will be one main focal sector, identified as “support to Economic Growth and the creation of employment, including Human Resources Development (vocational training and capacity building)”.

Activities are foreseen to take place in the fields of (i) institutional support, (ii) fostering economically sound and sustainable users-based management systems of natural resources, (iii) emphasizing the development of rural areas through the extension of public services, the improvement of basic infrastructures, (iv) matching Human Resources Development (HRD) and market’s demand through appropriate demand-driven and tailor-made training and skills programmes and (v) trade facilitation (in areas not covered in the regional cooperation).

The other main component of the NIP will be the use of General Budget Support.

The 10th EDF foresees indicative base allocations of € 21.6 million of programmable funds (A-envelope) and € 1.6 million for unforeseen needs (B-envelope). It is foreseen that about 45% of the A-envelope (€ 10 million) would be used to support economic growth and HRD development, about 40% (€ 8.6 million) to macro-economic support and the remaining 15% (€ 3 million) for support to non-focal areas, including support to initiatives of non-state actors and a capacity building and support to the National Authorising Officer (including a technical cooperation facility). All programmes will aim at fostering a coherent approach to effective aid coordination and to contribute to the successful implementation of the government’s development strategy.