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A market hall in Port Vila
Financial services are an important part of the economy. Vanuatu is a tax haven that until 2008 did not release account information to other governments or law-enforcement agencies. International pressure, mainly from Australia, influenced the Vanuatu government to begin adhering to international norms to improve transparency. In Vanuatu, there is no income taxwithholding taxcapital gains taxinheritance tax, or exchange control. Many international ship-management companies choose to flag their ships under the Vanuatu flag, because of the tax benefits and favorable labor laws (Vanuatu is a full member of the International Maritime Organization and applies its international conventions). Vanuatu is recognized as a “flag of convenience” country. Several file-sharing groups, such as the providers of the KaZaA network of Sharman Networks and the developers of WinMX, have chosen to incorporate in Vanuatu to avoid regulation and legal challenges. In response to foreign concerns the government has promised to tighten regulation of its offshore financial center. Vanuatu receives foreign aid mainly from Australia and New Zealand.

 

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Commercial agriculture, North Efate
Raising cattle leads to beef production for export. One estimate in 2007 for the total value of cattle heads sold was 135 million vatu; cattle were first introduced into the area from Australia by British planter James Paddon. On average, each household has 5 pigs and 16 chickens, and while cattle are the “most important livestock”, pigs and chickens are important for subsistence agriculture as well as playing a significant role in ceremonies and customs (especially pigs). There are 30 commercial farms (sole proprietorships (37%), partnerships (23%), corporations (17%)), with revenues of 533 million vatu and expenses of 329 million vatu in 2007.

The economy grew about 6% in the early 2000s. This is higher than in the 1990s, when GDP rose less than 3%, on average.

Transportation:

Vanuatu‘s undeveloped road system, with fewer than 100 miles of paved roads, consists mostly of dirt tracks suitable only for four-wheel-drive vehicles. Every island has one or two short airstrips where Vanair’s Twin Otter planes land two or three times weekly. In addition, every island has a small port or wharf where small cargo ships and boats regularly dock.

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An inter-island ferry
After arrival on an island, transportation is usually via pickup truck, foot, or small boat. Bicycles are becoming popular in Vanuatu. Port Vila and Luganville have numerous taxis and mass-transit vans. There are no railways in Vanuatu, although there was a small rail line on Efate during the colonial era.

Vanuatu’s main harbors are ForariPort-Vila, Santo (Espiritu Santo).

Vanuatu’s main airport is Bauerfield International Airport in Port Vila.

Flag of Vanuatu:

The flag of Vanuatu was adopted on 18 February 1980.

In 1977 a flag of almost the same colors and symbolism as the future national flag was designed by local artist Kalontas Malon and adopted by the Vanua’aku Pati. When the party led the New Hebrides to independence as Vanuatu in 1980, the colors of the party flag (red, green, black and yellow) were chosen to be the basis for the national flag on Independence Day, 30 July 1980. A parliamentary committee chose the final design based on submissions from local artists.

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