Vanuatu’s Citizenship by Investment

Vanuatu has gained attention recently due to its citizenship by investment programme. This scheme allows wealthy individuals to acquire Vanuatu citizenship by making a substantial financial contribution. The country is made up of 83 volcanic islands and has a unique history and culture.

Geography and Demographics

Vanuatu consists of 83 islands, of which only 65 are inhabited. It is located in the South Pacific, east of Australia and north of New Zealand. The total land area is 12,199 square kilometres. The largest island, Espiritu Santo, accounts for about 32% of Vanuatu’s land. The capital, Port Vila, is located on the island of Efate and has a population of approximately 49,034. Vanuatu’s population was recorded at 300,019 in the 2020 census, less than urban centres like Noida, India.

Volcanic Activity

Vanuatu is known for its active volcanoes, presenting both opportunities and dangers. The Yasur volcano on Tanna Island is one of the most accessible active volcanoes globally. The region experienced one of the largest eruptions in the last 10,000 years around 1,450 CE, leading to geological changes and a period of global cooling.

Culture and Language

The population of Vanuatu is predominantly Christian, with over 93% identifying as such. The largest denomination is Protestant, particularly the Presbyterian Church. The national language is Bislama, while English and French are also official languages. The population is mostly homogenous, with 99% being Ni-Vanuatu, a Melanesian ethnic group.

Colonial History

Vanuatu was originally inhabited by the Lapita culture around 3,000 years ago. European contact began in the 17th century with explorers like Pedro Fernandes de Queirós and James Cook. By the early 20th century, France and the UK established a joint administration known as the Anglo-French Condominium, which lasted until independence in 1980 when Vanuatu was officially named.

Economy and Citizenship Sales

Vanuatu’s economy relies heavily on subsistence agriculture, with coconut and kava as major crops. Tourism also plays a role, particularly with attractions like the wreck of the SS President Coolidge. A portion of Vanuatu’s revenue, up to 30%, comes from selling citizenship through its investment programme. The cost ranges from $135,500 to $155,500, making it one of the most popular schemes globally. The country has become a tax haven due to its lack of personal income tax and other taxes.

Questions for UPSC:

1. Critically examine the impact of colonialism on Vanuatu’s cultural identity.
2. Discuss the significance of volcanic activity in shaping Vanuatu’s geography and economy.
3. What are the implications of citizenship by investment programmes for small island nations? Explain.
4. What role does agriculture play in the economies of Pacific Island nations? Discuss with suitable examples.

Answer Hints:

1. Critically examine the impact of colonialism on Vanuatu’s cultural identity.

1. Colonialism introduced European languages (English, French) and religions (Christianity), altering traditional practices.
2. The Anglo-French Condominium created a unique governance system, blending British and French influences.
3. Indigenous cultures faced erosion as colonial powers imposed their values and systems.
4. Post-independence, Vanuatu has worked to revive and promote its native customs and languages.
5. Colonial history has left a legacy of both division and unity among different ethnic groups in Vanuatu.

2. Discuss the significance of volcanic activity in shaping Vanuatu’s geography and economy.

1. Vanuatu’s geography is defined by its volcanic islands, influencing settlement patterns and land use.
2. Volcanic eruptions have historically caused major geological changes, affecting biodiversity and land fertility.
3. Active volcanoes, like Yasur, attract tourism, contributing to the economy through eco-tourism.
4. Volcanic soil enhances agricultural productivity, supporting subsistence farming practices.
5. However, volcanic hazards pose risks to infrastructure and livelihoods, necessitating disaster preparedness.

3. What are the implications of citizenship by investment programmes for small island nations? Explain.

1. Citizenship by investment can provide financial resources for small island nations, boosting their economies.
2. Such programmes may lead to a surge in foreign investment and development opportunities.
3. However, they can also raise concerns about national identity and the dilution of local cultures.
4. Potential risks include dependency on foreign capital and the threat of money laundering or corruption.
5. Balancing economic benefits with social and cultural integrity is crucial for sustainable development.

4. What role does agriculture play in the economies of Pacific Island nations? Discuss with suitable examples.

1. Agriculture is the backbone of many Pacific Island economies, providing livelihoods for a majority of the population.
2. Crops like coconut and kava are not only staples but also export products, as seen in Vanuatu.
3. Subsistence farming helps maintain food security and cultural practices among indigenous communities.
4. Tourism often intertwines with agriculture, as local products are marketed to visitors, enhancing economic prospects.
5. Climate change poses challenges to agriculture, necessitating adaptation strategies to ensure sustainability.