On the eve of independence in 1980, Jimmy Stevens' Nagriamel movement, in alliance with private French interests and backed by American libertarians hoping to establish a tax-free haven, declared the island of Espiritu Santo independent of the new government. Following independence, Vanuatu requested assistance from Papua New Guinea, whose forces restored order on Santo. From then until 1991, the Vanua'aku Pati and its predominantly English-speaking leadership controlled the Vanuatu Government, and Walter Lini became widely considered as the nation's founding father.

In December 1991, and following a split in the Vanua'aku Pati, Maxime Carlot Korman, leader of the Francophone Union of Moderate Parties (UMP), was elected Vanuatu's first Francophone prime minister. He formed a coalition government with Walter Lini's breakaway VP faction, now named the National United Party (NUP). From 1995-2004 government leadership changed frequently thanks to unstable coalitions within the Parliament and within the major parties.

The president dissolved Parliament in May 2004 to forestall a vote of no confidence and called a special election that resulted in losses for most major parties. UMPís leader, Serge Vohor, returned as Prime Minister at the head of an unwieldy coalition government. Following controversy over Vohor's attempt to extend diplomatic relations to Taiwan, he was ousted by a vote of no confidence in December 2004 and replaced by Ham Lini, brother of Walter Lini. The new coalition includes ten parties and features the former opposition leader, Sato Kilman, as Deputy Prime Minister/Foreign Minister.