This article identifies the rationale and trajectory of finance sector reform as part of the donor-sponsored Comprehensive Reform Program (CRP) in Vanuatu and provides an analysis of the problems associated with the lack of affordable credit for sectors of the population that do not fulfill commercial lending criteria. The article relies on financial hegemony theory in order to explain Vanuatu's role within larger international financial structures and rationale for reform. The discussion shows that foreign banking institutions are not interested in broadening credit access to poorer sections of the population and that high levels of state dependence hinder the development of a sustainable micro-credit sector. However, using Robert Pollin's Exit, Voice and Ownership methodology the article shows that civil society organisations that seek to increase economic democracy and participation, although few in number, are present in Vanuatu and provide a model for best practice in the country.
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