There are several active volcanoes, and the islands are subject to frequent earthquakes. The largest ethnic group is Melanesian. There are small minorities of Europeans, Chinese, and Polynesians. The languages spoken are French, English, and Bislama, a Melanesian pidgin. Agriculture, fishing, and cattle raising are the major occupations.
Chief crops are copra, cocoa, coffee, bananas, yams, taro, and breadfruit.
Large-scale commercial fishing of tuna and bonito is conducted with Japanese and Australian assistance. Some manganese is mined. Manufacturing includes meat packing, fish freezing, and the production of soft drinks and furniture. A lack of direct taxation fostered Vanuatu's development as a financial and banking center. First sighted by a Portuguese navigator in 1606, the islands were named in 1774 by the English explorer James Cook after the Scottish Hebrides Islands.