Global Study On Child Poverty And Disparities (PDF) - Social Policy ...

100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Figure 1.8: Monthly per capita household
expenditure, 2006
Total Expenditure
Total Less Food And Transport
Torba Sanma Tafea Malampa Total Rural Penama Shefa Luganville Total Port
Urban Vila
Source: Based on data from ADB, UNDP and GOV 2006;
VNSO.
Figure 1.10: Trends in price indices, 2005 to 2010
(2005 = 1)
1.35
1.3
1.25
1.2
1.15
1.1
1.05
1
2005
2006
Source: VNSO, 2010
All Food Transport
2007
2008
2009
2010
45%
40%
35%
30%
25%
20%
15%
10%
5%
0
Another way of looking at this is to consider the
share of total cash expenditures on food and
transport. Figure 1.9 shows that urban households
in Vanuatu allocate more than 35 per cent of
their total expenditures to these two categories,
compared with less than 25 per cent in most rural
provinces.
Figure 1.9: Food and transport share of total
expenditures by location, 2006 (%)
Food
Transport
Malampa Penama Torba Total Rural Sanma Tafea Shefa Luganville Total Port
Urban Vila
Source: Based on data from ADB, UNDP and GOV 2006;
VNSO
The relatively high share of total expenditure
dedicated to cash expenditures on food and
transport in urban areas in Vanuatu is likely to
be a significant concern, given trends in inflation
since the 2006. HIES. Figure 1.10 shows trends
in the overall Consumer Price Index and the price
indices for food and transport, with March 2005
set as the base. It is apparent that since 2006
food prices have increased at a much faster rate
than prices generally, and the same has been true
for transport prices since 2008. As a result, the
increase in food prices over this period has been
nearly 50 per cent higher than the increase in the
Consumer Price Index. This is likely to have had
the largest impact on urban households, who are
much more reliant on market purchases.
Macroeconomic strategies and
resource allocation
The Government of Vanuatu’s 2009 strategy
document Planning Long, Acting Short outlines
the most recent policy priorities and strategies,
which include macroeconomic and governance
priorities as well as strategies focusing on
employment, education and health. In terms of
macroeconomic policy, the Government’s priority
is to achieve responsible macroeconomic and
fiscal management, including implementing the
New Development Budget by 2010 to better align
resources with priorities, strengthening the legal
regime governing the appropriation and use of
public funds, and maintaining payroll costs at a
manageable level. 10
Together with Planning Long, Acting Short,
the priorities and action agenda (PAA) An
Educated, Healthy and Wealthy Vanuatu 2006-
2015 (Government of Vanuatu 2006a) sets the
government’s 10-year policy priorities. The initial
PAA was formulated in 2003 with five priority
areas, and was later expanded to cover seven
priorities: (1) private sector development and
employment creation; (2) macroeconomic stability
and equitable growth; (3) good governance
and public sector reform; (4) primary sector
development (natural resources and the
environment); (5) improved provision of basic
services, especially in rural areas; (6) education
and human resources development; and
(7) economic infrastructure and support. This
policy also emphasizes expanding economic
opportunities and economic infrastructure.
Overall, the main policy strategy in Vanuatu
is focused on increasing private investment
10 In 2006, wages and salaries absorbed more than 50 per cent of total government expenditures,
the highest level in the Pacific (Amosa, Narayan, Naz and Pandaram 2009). In the key
service delivery areas of health and education, these proportions are even higher.
26