Vanuatu Vanuatu Background The British and French, who settled the New Hebrides in the 19th century, agreed in 1906 to an Anglo-French Condominium, which administered the islands until independence in 1980. Vanuatu Economy The economy is based primarily on subsistence or small-scale agriculture, which provides a living for 65% of the population. Fishing, offshore financial services, and tourism, with about 50,000 visitors in 1997, are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. A severe earthquake in November 1999 followed by a tsunami, caused extensive damage to the northern island of Pentecote and left thousands homeless. Another powerful earthquake in January 2002 caused extensive damage in the capital, Port-Vila, and surrounding areas, and also was followed by a tsunami. GDP growth rose less than 3% on average in the 1990s. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002 the government stepped up efforts to boost tourism. Australia and New Zealand are the main suppliers of foreign aid. Vanuatu Location Oceania, group of islands in the South Pacific Ocean, about three-quarters of the way from Hawaii to Australia Vanuatu Flag two equal horizontal bands of red (top) and green with a black isosceles triangle (based on the hoist side) all separated by a black-edged yellow stripe in the shape of a horizontal Y (the two points of the Y face the hoist side and enclose the triangle); centered in the triangle is a boar's tusk encircling two crossed namele leaves, all in yellow
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