The Republic of Vanuatu is a parliamentary democracy whose President, as head of state, is elected for a 5-year term by an electoral college made up of the members of Parliament and the chairpersons of 6 provincial governments. The 52 members of Parliament are elected on the basis of universal suffrage every 4 years. Parliament then elects the Prime Minister. The Council of Chiefs advises on matters of custom and tradition. The 2004 elections were deemed free and fair and resulted in the formation of an 8-party coalition government.

In late 2004, the Prime Minister was dismissed by Parliament and replaced by a representative from the National United Party. Women's participation in economic and political life is limited. There are 2 women in Parliament and 1 in the Cabinet. 2 non-Melanesian are in Parliament, and 1 is in the Cabinet. The judiciary is independent in law and generally also in practice.

Discrimination is prohibited on the basis of race, place of origin, religious or traditional beliefs, political opinion, language or sex, but reports cite discrimination against women.

Government corruption is reported as a problem. Political interference is said to limit the effectiveness of the civil service.

Freedom of speech and of the press are guaranteed in law and in practice. Opposition parliamentarians have access to government-owned media. Foreign news and information is provided by satellite television. Internet access is not restricted. Access to government information is not provided in law, but the government usually responds to requests for information.

Reports do not cite trafficking in persons as being a problem.
Homosexuality is legal in Vanuatu.

Education is not compulsory. Only 35% of children continue their education beyond primary school, largely because of a shortage of schools and teachers for older children. Boys receive more education than girls. Some 50% of the population is functionally illiterate. Children are protected within the extended family, and almost no homeless or abandoned children are reported. Grants are provided by the government for church-operated schools, whose teachers' salaries are also paid by government. These benefits are available only for Christian schools. Religious education classes are provided in government schools by representatives of churches, but again only for Christian denominations. Parents can have their children excused from such classes.

A 3-year programme begins at age 3. The Gross Enrolment Ratio (GER) is 52%.

Primary school is available for ages 6 to 12. The Net Enrolment Rate (NER) is 94% (48% female). 11% of students repeat grades. There are 1,947 ECE teachers (54% female). The pupil/teacher ratio (PTR) is 20 : 1.

Secondary education begins at age 12 and lasts 7 years. 23% of students in secondary education study in technical vocational programmes. The NER is 39% (42% of boys, 36% of girls). There are 883 secondary teachers (36% female). The PTR is 14 : 1 in secondary school.

995 students (36%F) study in tertiary institutions for a GER of 52%. At the same time, 149 Vanuatan students are studying abroad, mainly in Papua New Guinea (68), New Zealand (50), France (11), the UK (7) and the USA (5).

Government policy does not address persons with disabilities, and there are no special programmes to assist them. Care is provided by extended families and by NGOs. Few jobs are available for persons with disabilities.

The law does not provide for the granting of asylum or refugee status in accordance with the 1951 UN Convention Relating to the Status of Refugees or its 1967 Protocol. The government has not established a system for providing protection to refugees. The government has no association with the UNHCR, since very few people have requested refugee status in the past.

The population is largely Melanesian, with small minorities of Chinese, Fijians, Vietnamese, Tongans and Europeans. The land belongs to indigenous tribes and cannot be sold, though it can be leased to non-Melanesians. Reports do not cite ethnic discrimination in education or in other state services.

Reports do not cite violations of academic freedom, but a move toward managing the university on the models of management applied in Australia and New Zealand is causing concern for academics in the University of the South Pacific. The University is funded by the 12 member countries, but the bulk of its funding comes from the Fiji government, with donations from Australia and New Zealand.

Women have equal rights in law, but the traditional culture is patriarchal and fosters discrimination against women. The practice of bride-price payment perpetuates women's status as property. Women cannot own land. The legal age for marriage is 21, though with parental permission boys may marry as young as 18 and girls as young as 16. In rural areas some children marry at even younger ages.

Domestic violence is common, and no laws deal specifically with the issue. Violence and sexual harassment against women are said occur unreported. Police are reluctant to intervene in domestic matters.

Children under age 12 cannot work outside family-owned agriculture, and many children assist their parents in subsistence farming. Children aged 12 to 18 can be employed in restricted occupational categories under special conditions; for example, their employment is not allowed in the shipping industry or at night. The child labour laws are enforced.

Workers have the right to form and join trade unions independent of government. Unions are members of the Vanuatu Council of Trade Unions. The majority of the population works in subsistence agriculture and fishing, where union activity is limited. Collective bargaining is allowed, and unions negotiate wages and conditions of work with employers. The right to strike is recognised.

Forced labour is illegal and not reported to occur. A legislated minimum wage was set at US$179 (20,000 vatu) a month, which does not provide a decent standard of living for a worker and family. Most families supplement their income through subsistence farming.

In 2006 the Cabinet approved the decision of a tribunal to increase public sector salaries, with backdating to 1 January 2006, which implied a lump-sum payment. In late 2006 the Cabinet decided that the salary increase would become effective from July 2006 and would not be backdated as previously announced. The government denied a request by the National Workers Union for a permit to demonstrate against the firing of 26 Air Vanuatu employees. The government cited concern that there might be a disturbance of the peace before local elections.