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Government Openness Vanuatu has an elected parliament that then selects a prime minister and cabinet ministers. This is not an area that we are going to dwell on because it changes over time. The consistent problems that have been suffered by the government relate to a lack of a plan and a strategic vision. Most members of parliament seek office because it is one of the best paying jobs in the country. They are not overly motivated to change things and their constituents do not pressure them to make changes. The country has 2 independent newspapers that do a reasonable job at uncovering corruption. There was a recent incident where a newspaper publisher was deported without notice after printing allegations against the government of the day. He was quickly back in the country and his residency reinstated by the courts but it did cause concern. There have been numerous examples of corruption within government in Vanuatu's short history and most have only come to light after a government change. A recent former Prime Minister was found guilty of trying to illegally endorse 30 million US dollars worth of government backed loan guarantees to a known international con artist and he was sentenced to 3 years in jail. The President of Vanuatu then pardoned him after 3 months and he is now running for Parliament again. The forgiving nature of the Melanesian people is attractive but outsiders sometimes think it goes too far. Corruption within the government often takes the form of inaction. An investor that requires government approval will find that the approval just never comes with no reason given. Another form of corruption is the enforcement of phantom laws. Officers of government departments often create new interpretations of the Vanuatu law and then try to enforce them. Examples include creating new fees without legal due process or trying to charge for licenses that are not required. There is no place established where a non-citizen can take a complaint against the government except the court system. The courts do seem to be open and honest and this seems to be the key factor that keeps the country and government functioning. The law of Vanuatu is published on the internet in a basic form by the University of the South Pacific. It is the only place it is available to the general public. Other critical information for the public like duty rates and license fees are not published and very difficult for a foreign investor to acquire in advance of committing funds. This "knowledge is power" approach to dissemination of information by the government creates a great deal of mistrust between them and the business community. |
| Level Playing Field | Economic Climate |
| Availability and Skill of Workforce | Tax Structure |
| Transportation | Infrastructure |
| Location | Lifestyle |
| Openness of Government | Additional Information Sources |
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