the basic policy commitments made at that time have been undermined in importantrespects. Perhaps the main underlying reasons for this loss <strong>of</strong> direction were –the ambiguity surrounding the legal powers <strong>and</strong> responsibilities <strong>of</strong> thecustom owners <strong>of</strong> l<strong>and</strong>, <strong>and</strong>uncertainty over the Government’s role in relation to l<strong>and</strong> dealings.In a country where, by the Constitution, the full l<strong>and</strong> ownership <strong>of</strong> the customowners was entrenched, <strong>and</strong> dealings in l<strong>and</strong> are carried out directly betweencustom owners <strong>and</strong> outsiders, failure to address this ambiguity <strong>and</strong> uncertaintymade custom owners very vulnerable to exploitation. Where the Government isgiven a role in l<strong>and</strong> dealings (eg, the Minister’s power <strong>of</strong> approving negotiators, <strong>and</strong>the dealings which eventuate from direct negotiations), the powers have frequentlybeen abused. These policy weaknesses must be addressed, <strong>and</strong> fortunately the<strong>L<strong>and</strong></strong> Summit resolutions go a long way in clarifying these basic matters.2.3. <strong>Legislation</strong>In the absence <strong>of</strong> policy clarification <strong>of</strong> the above basic matters, it follows that thel<strong>and</strong> legislation is deficient in important respects. Many new l<strong>and</strong> laws have beenpassed by the Parliament since independence, but much <strong>of</strong> the current legislationwas designed to h<strong>and</strong>le the conversion <strong>of</strong> pre-independence titles to the new postindependenceregime, yet it remains the basic legal framework for the country’s l<strong>and</strong>system to the present day. Where there have been legislative “innovations”, onewas aimed at converting urban l<strong>and</strong> to individual freehold ownership (against thespirit, <strong>and</strong> probably the letter, <strong>of</strong> the Constitution), <strong>and</strong> another was the introduction<strong>of</strong> a strata titles regime – a law whose defects have allowed a spate <strong>of</strong> “un<strong>of</strong>ficial”subdivisions.2.4. <strong>L<strong>and</strong></strong> administrationThe Department <strong>of</strong> <strong>L<strong>and</strong></strong>s, Surveys <strong>and</strong> Records has grown to provide a range <strong>of</strong>l<strong>and</strong> services, some common-place (eg, surveys) but others more particular to<strong>Vanuatu</strong>, <strong>and</strong> more dem<strong>and</strong>ing. The latter include advising the Minister in theexercise <strong>of</strong> powers to approve negotiators <strong>and</strong> the l<strong>and</strong> dealings which eventuatefrom negotiations (advice which the Minister is not obliged to accept), involvement insettling l<strong>and</strong> disputes, <strong>and</strong> l<strong>and</strong> use planning (the latter powers being exercised atprovincial level). Officials suffer from the usual problems <strong>of</strong> lack <strong>of</strong> resources tocarry out their functions adequately, but they are also affected by the policy <strong>and</strong>legislative ambiguities <strong>and</strong> uncertainties referred to above. In a proposed l<strong>and</strong>dealing, it is unclear who the <strong>L<strong>and</strong></strong>s Officer is supposed to be acting for – thecustom owners? the other members <strong>of</strong> the l<strong>and</strong>-owning group? the localcommunity? the State? The interests <strong>of</strong> these stakeholders are <strong>of</strong>ten in conflict.The above is only a very brief outline <strong>of</strong> the deficiencies which undermineachievement <strong>of</strong> the three main themes <strong>of</strong> the <strong>L<strong>and</strong></strong> Summit – sustainable l<strong>and</strong>management, fair dealings in l<strong>and</strong>, <strong>and</strong> progress with equity <strong>and</strong> stability. This reportwill provide a more thorough review <strong>of</strong> <strong>Vanuatu</strong>’s current policies, laws <strong>and</strong>administrative systems affecting l<strong>and</strong> ownership, management <strong>and</strong> development.4
2.5. Basic needs<strong>L<strong>and</strong></strong> dealings in <strong>Vanuatu</strong> (negotiations, leases, registrations, sub-divisions, etc)have got out <strong>of</strong> control in recent years, <strong>and</strong> the resolutions <strong>of</strong> the <strong>National</strong> <strong>L<strong>and</strong></strong>Summit require that they be brought back under control. This will mean difficultdecisions, not only because there has probably been a high level <strong>of</strong> non-compliancewith legal requirements, but also because <strong>of</strong> the sheer volume <strong>of</strong> l<strong>and</strong> dealingscoming before <strong>of</strong>ficial bodies for approval. Options which will be considered include:a moratorium on further processing <strong>of</strong> new dealings (a temporarymoratorium is already in place); an inquiry into the legality <strong>of</strong> recent dealings, with a view torecommendations for remedying the situation; more aggressive application <strong>of</strong> the remedies currently available –forfeiture <strong>of</strong> leases, prosecutions for breach <strong>of</strong> public access <strong>and</strong> zoninglaws, etc.; amendments <strong>of</strong> legislation, possibly with retrospective effects; as a last resort, compulsory acquisitions.Each <strong>of</strong> the above options entails a degree <strong>of</strong> risk (including ‘sovereign risk’), whichwill have to be weighed against the benefits <strong>of</strong> regaining control over the nation’sl<strong>and</strong> affairs.2.6. Doing Business in <strong>Vanuatu</strong>In “Doing Business in 2007” 2 , the difficulties faced in undertaking business activitiesin <strong>Vanuatu</strong> are highlighted. Of the data on 175 countries, <strong>Vanuatu</strong> is ranked at 58thin doing business. However in relation to trade, employment <strong>and</strong> l<strong>and</strong> registration<strong>Vanuatu</strong> is ranked in the bottom half <strong>of</strong> all countries. These statistics highlight thatthere are a number <strong>of</strong> areas where <strong>Vanuatu</strong> needs to focus attention if it is toimprove business <strong>and</strong> l<strong>and</strong> administration activities.In relation to registering property it is stated that to register a l<strong>and</strong> parcel (a lease) ittakes on average 188 days which is compared with 31.8 days in OECD countries.The cost in <strong>Vanuatu</strong> to register is approximately 7% <strong>of</strong> the property value which iscompared with 4.3% for OECD countries. These figures reinforce some <strong>of</strong> theconcerns expressed by the <strong>National</strong> <strong>L<strong>and</strong></strong> Summit <strong>and</strong> highlight the importance <strong>of</strong><strong>Vanuatu</strong> commencing action immediately to address a review <strong>of</strong> l<strong>and</strong> relatedlegislation <strong>and</strong> procedures in l<strong>and</strong> administration.3. LAND POLICY AND LEGISLATION3.1. At the time <strong>of</strong> independenceFor present purposes, l<strong>and</strong> policy development in <strong>Vanuatu</strong> can be regarded asbeginning on the eve <strong>of</strong> independence in 1980. Under the previous British-French2 World Bank, Doing Business in 2007 – How to Reform, 2007.5