Economics of Households in Pacific Island Countries: A Case Study of Vanuatu and Tuvalu

Abstract

The source of livelihood varies amongst the Pacific Island Countries and also within a country; between urban and rural areas. Most Pacific Island Countries (PICs) and their households rely on subsistence activities and agriculture for their livelihood. This research was based on surveys conducted in Piliura and Tassiriki villages in Vanuatu and Vaiaku, Senala and Tumaseu villages in Tuvalu, which involved developing a methodology for household surveys to elucidate issues linked to livelihood. The analysis revealed that the major source of household income in Vanuatu study sites was from the sale of products, while in Funafuti (Tuvalu) households earned the majority of their income from wages/salaries. However, in Tumaseu village (Tuvalu) the households generated their source of income from both wages and sale of products. In all the study sites, food was the major household expense. This study was aimed at allowing researchers and decision makers a better understanding of the economic realities for households in PICs.