Vanuatu’s major

economic reforms

Vanuatu is to embark on a major economic reform programme aimed to boost its financial, eco nomic and administrative performances and reduce costs crippling its develop

ment, Prime Minister Serge Vohor announced in February.

Vohor told a press conference here that Vanuatu would be assisted through the review programme by the Manila-based Asian Development Bank (ADB) in the form of experts.

“In many critical ways, our country is now at a crossroads. In recent years, our population has grown faster (2.8 per cent) a year than our economy. We need sus tainable growth that respects our aspira tions, environment and culture and restores stability, confidence and efficien cy,” Vohor said.

Vohor appointed a task force consist ing of six ministers and a “national level task team”, which includes 10 senior gov ernment officials, to engage in consulta tions with community representatives (such as non-government organisations, leaders, churches, chambers of com merce) in preparation for a national sum mit to be held “sometime in mid-June”.

“It’s all about helping Vanuatu improve its policies. If, down the line,-a soft loan is needed, ADB will consider that,” Muhammed Tusneem, ADB’s regional representative at the Port Vila based South Pacific Mission, said.

“The current size of the public sector, its efficiency, profitability, the ideal num ber of ministers in the government, right sizing - these are the issues that will be analysed,” he said, adding ADB’s assis tance effort in that review would span over a three-year period “in close consul tation” with other other aid donors to

“minimise duplication”.

“We would then come up with a pack age aimed at implementing the recom mended reforms,” Tusneem said, without quoting any figure.

ADB has earmarked some SUS6OO,OOO for the project over the next

12 months.

By Patrick Decloitre