VANUATU Doing Business Reform Task Force Ministry of Trade, Commerce, Industry, Tourism, Investment and Business Development April 2009

2 Country Context  Vanuatu, as other Pacific countries, faces special challenges  Scale  Limited infrastructure  Distance from markets  Underdeveloped access to credit  Narrowly-based, small economy  A period of sustained macroeconomic stability has provided the opportunity for microeconomic reform. Crisis impacts remain unclear …

3 Regulatory Reform and Investment Policy & Promotion - Areas for reform 1. Assistance to VIPA to strengthen its capacity to promote and facilitate foreign investment 2. Simplification of business start-up and licensing processes 3. Contract enforcement / Alternative dispute resolution 4. Investment incentives and import duty exemptions 5. Labour and residency permits

4 Role of Doing Business Reform Task Force Provide a forum for identifying and assessing critical reform issues to support private sector development Identify and recommend the development and sequencing of related reform measures and programs Carry out policy dialogue on reform issues and initiatives within government, the business community and development partners, and communicate with the general public and media on reform issues and initiatives Monitor progress of reform implementation Report on progress of reform and recommend, where necessary, changes to policy and legislation

5 Task Force membership PUBLIC SECTOR Ministry of Trade Prime Minister’s Office Ministry of Finance & Econ. Management VIPA Dept of Cooperatives and Ni- Vanuatu Business Development VFSC PRIVATE SECTOR & CIVIL SOCIETY Chamber of Commerce and Industry Vanuatu Finance Centre Association Vanuatu Hotel and Resort Association Vanwoods Microfinance Manufacturers Assoc University of South Pacific

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7 Initial focus Strengthen commercial laws and registry services (VFSC) Streamline business start-up processes (VIPA, VFSC, Dept. Customs, VNPF) Enhance investment promotion capability (VIPA) Merge work and residency permit processes (Labor & Immigration) Introduce court-referred mediation (Chief Justice) ADB IFC IFC, PJDP & Federal Court of Australia Separate initiative – closely aligned

8 Some Task Force Processes Meetings are 2 hrs max per month & seek to deal with one substantive issue at a time Agendas/information papers are sent out a week before meetings Minutes are prepared and circulated within a few days of the meeting & decisions/actions are reported on at the next meeting project updates are sent out to members in between meetings to keep them informed on implementation

9 Key Current Challenges Role in timing and sequencing of project component delivery Role in reforms beyond scope of current project Task Force sustainability beyond life of project