Figure 2. Relationship between the ICT Price Basket Values and GNI per Capita 40 Swaziland vanuatu Cuba 30 Timor Leste Bangladesh 20 10 Namibia R2 = 0.8424 India Sri Lanka 0 Source: ITU. Includes all countries with a maximum IPB value of 40 and maximum GNI per capita of 20,000. Ukraine 0 5,000 10,000 15,000 20,000 GNI per capita, USD, 2010 severe storms, as well as earthquakes, tsunamis and volcanic activity due to the country‘s geography and proximity to the Pacific “Ring of Fire”. In 2012, a report commissioned by the United Nations University ranked Vanuatu the most at risk country in the World to natural disasters.21 In terms of user-related challenges, the primary challenge is a limited buying power of residents, arising from high costs of ICTs coupled with low incomes. This seriously impacts affordability of ICT services and products. Further to the affordability-related concerns above, the extent of the challenge In terms of user-related challenges, the primary challenge is a limited buying power of residents, arising from high costs of ICTs coupled with low incomes. This seriously impacts affordability of ICT services and products.” is demonstrated by a fact that in 2012 the ITU ranked22 Vanuatu 143 out of 161 countries in terms of ICT prices. Moreover, as demonstrated in the figure below, ICT prices in Vanuatu seem to be much higher than the average for countries with similar incomes (measured as Gross National Income (GNI) per capita). Gross Domestic Product per capita in Vanuatu (adjusted for the purchasing power parity; current international US$) in 2010 was US$4449.7323. Furthermore, Vanuatu has dramatic rural-urban income inequalities—over 80% of the population depends on agriculture for their livelihood, yet the rural sector contributes only 21 Submission to the National ICT Policy from the National Disaster Management Office and Vanuatu Meteorology and Geo-Hazards Department, 15 May 2013. 20 22 International Telecommunication Union (ITU) (2012). Measuring the Information Society 2012. 23 World Bank (2012). World Development Indicators. National Information and Communication Technology Policy