The recent economic crisis caused by COVID-19 and natural disasters have highlighted economic vulnerabilities and developed the need to strengthen Vanuatu’s economic resilience and recovery through building a resilient infrastructure. An improved transport infrastructure for all is a clear objective of the country's National Sustainable Development Plan (NSDP).

High quality infrastructure is essential for Vanuatu's development as it can enhance logistical chains, delivery of services and access to markets, reducing the cost of doing business and improving productivity and economic growth. By creating more job opportunities, investments in SDG target 9.1 can directly contribute to poverty reduction. Trade offs related to clean water and sanitation and the environment would need to be carefully managed. Striking a balance between economic growth, infrastructure development and environmental and social well-being is critical to ensure that progress in one area does not come at the expense of another.

Vanuatu had three ‘Category 5’ cyclones in the last three years. Only in 2023, the country was hit by ‘Category 4’ cyclones twice, which affected approximately 66 percent of the total population. These natural disasters have increased deprivations by disrupting health care and education services and severely damaging infrastructure. Livelihoods have also been deeply affected as 67% of workers (25,933 people) are in the informal economy. Based on the 2023 Post Disaster Needs Assessment (PDNA)1, total recovery needs are estimated VUV 91.5 billion – mostly for transportation, housing, employment and livelihoods.​

As highlighted in its NSDP, the Government of Vanuatu aims to focus on climate and disaster resilience, with priorities such as the development of a disaster financing strategy. Boosting investments related to SDG target 11.5, such as disaster risk reduction (e.g., early warning systems and contingency plans for farmers and fishers), can directly contribute to climate resilience by reducing vulnerabilities and adapting to changing environmental conditions. It can also help to reduce poverty and hunger and to improve economic stability by preventing disruptions to businesses, tourism and other economic activities.​

1 PDNA- Vanuatu Tropical Cyclones Judy and Kevin, 2023.​

Effective institutions are essential for upholding the rule of law, providing legal protection to citizens and businesses, and for maintaining social order, cohesion and coordinating disaster response efforts. Improving governance mechanisms, eradicating corruption and enhancing the accountability of public officials are among the main objectives of Vanuatu’s NSDP. The Government Machinery Review and the Decentralization Implementation are two flagship programmes for institutional strength/transparency.

Beyond contributing to peace, justice and stability, effective institutions have significant multiplier effects across a vast range of development outcomes as they create an enabling environment for economic growth and poverty reduction by delivering quality public services, promoting fair business practices and protecting property rights.