Book excerpt: Over the last several years, Vanuatu has become one of the fastest growing economies in the Pacific region driven primarily by tourism, construction, and aid inflows. The achievement of strong economic growth has also occurred on the back of improved economic policy, effective fiscal management, and improved environment for private sector development. While recent gains have been impressive, more remains to be done to sustain growth and ensure the benefits are distributed throughout the nation. The Government is now on a sound financial footing and is well placed to address key development issues. The report discusses options for responding to these needs with a view to helping guide public policy formulation in Vanuatu.