The executive consists of a Council of Ministers headed by the Prime Minister who is elected by Parliament from among its members. The President is elected by Parliament and the National Council of Chiefs for a period of five years. The Central government consists of ten ministries with 40 departments. Local Councils have also been set up in various areas of the country. The Supreme Court of Vanuatu has jurisdiction to determine all matters.
Commercial law is based on English law.
The country has a dualistic economy, with a large smallholder subsistence agricultural sector and a small monetised sector. The monetised sector is based on established plantations, ranches and associated trading, manufacturing, banking and shipping services, as well as the country's tourist industry. In Vanuatu, copra is the most important cash economic activity in the rural sector. At present, about 69,000 hectares of land are under coconut plantation, producing 50,000 tons of copra a year. Nearly all domestic exports are primary goods, the principal ones being coconut products, beef, cocoa, coffee and timber.