Over the last few years, investment in Vanuatu has boomed. It’s been estimated that the amount of cash in the economy is increasing by an astounding 150% per year. Compare that with the period between 1990 and 2004, when economic activity grew more slowly than the population.
But for most of the residents of this so-called paradise, little has changed.
Prices have increased somewhat, but curiously many of the more common expenses have not. Bus fares, for example, have not budged even though fuel prices have soared. Consequently, Vanuatu’s minimum wage has about the same buying power today as it had years ago.
That’s not entirely good news….