Pen picture of Vanuatu by Helen Hughes - a prominent Australian Economist

"Vanuatu, with a population of 200,000, is a medium sized Pacific state that became independent from the British-French Pacific Condominium in 1980. Vanuatu has rich agricultural land, marine resources and many beautiful tourist sites. Like other Pacific islands, it is well located with respect to burgeoning Asian markets. But instead of harnessing its resources to catch up to high living standards, Vanuatu’s per capita income (around $1,500) has barely risen in 25 years. Most of the benefits of high aid flows have been appropriated by a small elite in Port Vila. The elite enjoys the lifestyle of the expatriates who still fill many professional and management positions whereas most ni-Vanuatu are subsistence farmers and urban shanty dwellers."

This picture is from "Annals of Aid: Vanuatu and The United States
Millenium Challenge Corporation by Helen Hughes and Gaurav Sodhi - 5 April 2006 - an issues paper for the Centre for Independent Studies" Complete text available here