Driven mainly by foreign investment inthe areas of tourism, financial services and landdevelopment, it is expatriates who are primarily reaping thegains of business development. This lack of inclusivedevelopment is becoming an alarming source of growingeconomic inequalities, dispossession and potentiallydisruptive social trends. Yet, ni-Vanuatu are not inherentlyopposed to community-sensitive' development that cangenerate employment opportunities and income sources for thepopulation. While economic growth is clearly desirable, anurgent policy imperative exists to ensure that Ni-Vanuatubecome equal participants in these developments and thesubsequent benefits. This briefing note focuses specificallyon some of the challenging effects of foreign investment onthe dynamics of land use and ownership in Vanuatu. Conflictsabout land are potentially explosive and recent historicalevents in Fiji, Solomon Islands and Papua New Guinea haveshown the urgency of designing effective long-term policyresponses to these sensitive issues.