8% of Gross Domestic Product. 15.9% of the people live in poverty (on less than US$1.25 a day), and further 22% are estimated to be vulnerable to experiencing poverty (i.e., from food or fuel price increases), as they are close to the poverty threshold24. Development of digital skills will likely be constrained by the lack of basic literacy and skills. As per the World Bank data, 82% of adults in Vanuatu are Figure 3. Vicious Circle—Challenges related to Content and Applications No users No incentive to produce content No incentives to connect No content literate25. Local studies, however, present an even more pessimistic picture. A recent survey suggested that the literacy rate in Shefa province was only 27.6% of the population26. Data from the Ministry of Education indicates very high rates of “critical underachievement” in basic literacy and numeracy—namely 59% in Anglophone and 65% in Francophone literacy, and 66% in Anglophone and 61% in Francophone numeracy27. A similarly bleak picture is presented by school enrolment rates—gross secondary school enrolment currently stands at 54.69%28. In encouraging the development of content and applications, a vicious circle 24 Government of Vanuatu (2012). Vanuatu Education Sector Public Expenditure Review. Report. 25 Literacy Rate, Adult Total (% of people ages 15 and above), 2009. World Bank (2012). World Development Indicators. 26 ‘Survey shows only 27.6% literacy in Shefa population’. Vanuatu Daily Post. September 21, 2012. 27 Vanuatu Ministry of Education (2012). Education For All. 28 School enrolment, Secondary (% gross), 2010. World Bank (2012). World Development Indicators. Current Situation and Challenges 21