National Trade Data Bank ITEM ID : ST BNOTES BAHAMAS DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - BAHAMAS Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1992 Date of record : 19941018 Keywords 3 : Keywords 3 : | BAHAMAS BAHAMAS BACKGROUND NOTES (APRIL 1990) PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS US DEPARTMENT OF STATE April 1990 The Commonwealth of The Bahamas PROFILE Geography Area: 13,934 sq. km. (5,380 sq. mi.); slightly larger than New Jersey and Connecticut combined. Cities: Capital--Nassau, New Providence. Other cities--Freeport, Grand Bahama Islands. Terrain: Flat. Climate: Tropical. People Nationality: Noun and adjective--Bahamian(s). Population (1989): 243,933. Annual growth rate: 1.8%. Ethnic groups: Black African 85%, European 15%. Religions: Baptist, Anglican, Roman Catholic, Methodist. Languages: English; some Creole among Haitian immigrants. Education: Years compulsory--through age 14. Literacy--93%. Health (1988): Infant mortality rate--21.4/1,000. Life expectancy--men 64 yrs., women 70 yrs. Work force (1988)--124,320: Majority employed in government, hotel and restaurant, and financial sectors. Government Type: Independent commonwealth since July 1973, with executive authority vested in the British monarch. Independence: July 10, 1973. Constitution: July 10, 1973. Branches: Executive--governor general (head of state, representing British monarch), prime minister, cabinet. Legislative--bicameral parliament (16 senators, 49 representatives). Judicial--Privy Council in UK, Supreme Court, Court of Appeals, and magistrate's courts. Political parties: Progressive Liberal Party (PLP), Free National Movement (FNM). Suffrage: Universal over 18; 84,235 registered voters in 1982; about 100,000 in 1987. Central government revenue (1990 est.): $581,500,000. Defense (1990 est.): About 11% of government budget allocated for police and defense force. Flag: Black equilateral triangle on stripes of aquamarine and gold, representing land, sea, and sun. Economy GNP (1988): $1.755 billion. Annual growth rate: 2%. Per capita income (1988): $7,178. Avg. inflation rate (1989): 4.4%. Natural resources: Salt, aragonite, timber. Agriculture (1989)--$34.4 million, exports: Products--vegetables, lobster, fish. Industry: Types--tourism, banking, petroleum, pharmaceuticals, rum. Trade (1988): Nonoil exports--$1 billion: salt, aragonite, timber, beverages, chemicals. Oil exports--$2.3 billion. Major markets--US, UK, other EC countries, Canada. Imports--$1.6 billion: manufactured goods, oil, chemicals, machinery and transport equipment, food, live animals, beverages, tobacco. Major suppliers--US, UK, other EC countries, Canada. Official exchange rate: 1 Bahamian dollar=US$1. Fiscal year: Calendar year. Membership in International Organizations UN and some of its specialized and related agencies, including the World Meteorological Organization (WMO), World Bank, International Monetary Fund (IMF), International Civil Aviation Organization (ICAO), and World Health Organization (WHO); Inter-American Development Bank (IDB); Caribbean Development Bank (CDB); Pan American Health Organization (PAHO); Organization of American States (OAS); Caribbean Community and Common Market (CARICOM). PEOPLE More than 75% of the population of The Bahamas lives on either New Providence or Grand Bahama. Eighty-five percent of Bahamians are of African descent. Many of their ancestors arrived in The Bahamas when it was a staging area for the slave trade or were brought there by the thousands of British loyalists who fled the American colonies during the Revolutionary War. Education is compulsory between ages 5 and 14. Of the 225 schools, 187 (83%) are fully maintained by the government; the rest are private. In 1985, enrollment for state and private primary, grammar, and secondary schools was 60,744. The College of The Bahamas, established in Nassau in 1974, provides 2- or 3-year programs leading to an associate of arts degree in seven academic divisions. Several college programs are offered in cooperation with the Universities of Miami and of the West Indies. HISTORY Christopher Columbus discovered The Bahamas in 1492, when he first landed in the Western Hemisphere either on Samana Cay or San Salvador Island. Native Lucayan Indians were soon captured by Spanish slave traders. In 1647, the first permanent European settlement in The Bahamas was founded by the Eleutheran Adventurers, a group of English and Bermudan religious refugees who gave Eleuthera Island its name. Governments created by such groups continued until 1717, when the islands became a British crown colony. The first royal governor was Capt. Woodes Rogers, an ex-pirate who brought law and order to The Bahamas in 1718 by expelling the buccaneers who had used the islands as hideouts. During the American Civil War, The Bahamas prospered as a center of Confederate blockade-running. The islands served as a base for American prohibition rumrunners after World War I. World War II Allied flight training and antisubmarine operations in the Caribbean were centered in The Bahamas. Since the war, The Bahamas has become a major tourist and banking center. Bahamians achieved self-government through a series of constitutional and political steps, culminating in independence on July 10, 1973. GOVERNMENT AND POLITICAL CONDITIONS The Bahamas is an independent member of the Commonwealth and a multiparty parliamentary democracy with regular elections. As a Commonwealth country, its political and legal traditions are similar to those of the United Kingdom. The British monarch is still recognized as the head of state, and an appointed governor general is the Queen's representative in The Bahamas. Laws under the 1973 Bahamian constitution are enacted by a bicameral parliament. The House of Assembly consists of 49 members elected from each constituency for 5-year terms. As under the British system, elections may be called at any time. The House performs all major legislative functions. The leader of the majority party serves as prime minister and head of government. The Cabinet, composed of the prime minister and at least nine other ministers of executive departments, is answerable to the House. The Senate is an appointive body with limited functions. It comprises 16 members appointed by the governor general, 9 on the advice of the prime minister, 4 at the recommendation of the leader of the opposition in the House, and 3 with the advice of the prime minister after consultations with the opposition leader. The Progressive Liberal Party (PLP), headed by Prime Minister Sir Lynden O. Pindling, controls The Bahamas' politically stable government. The PLP won 31 of the 49 parliamentary seats in the June 1987 general election. The PLP was formed in 1953 by blacks discontented with the policies of a group of white businessmen, the "Bay Street Boys," who had controlled the political and economic life of The Bahamas for decades. The PLP first came to power in 1967. The "Bay Street Boys" have been replaced by the "Sunshine Group," although the latter are not as prominent in the political arena. The Free National Movement (FNM) was created in 1971 by a coalition of the former members of the defunct, white-dominated United Bahamian Party and PLP dissidents. The FNM has 16 seats in the House of Assembly and is recognized officially as the opposition party. In December 1976, the parliamentary faction of the FNM officially established a separate party, the Bahamian Democratic Party (BDP). It won six seats in the 1977 elections but is now defunct. The only other party in The Bahamas is the left-of-center Vanguard Party, which carries no weight in Bahamian politics and has no representatives in parliament. The chief justice of the Supreme Court is appointed by the governor general on the advice of the prime minister and the leader of the opposition. Other justices are appointed by the governor general with the advice of a judicial commission. The Family Islands (all those other than New Providence) are administered internally by local commissioners appointed by the government and supervised from Nassau. Principal Government Officials Acting Governor General--Sir Henry M. Taylor Prime Minister and Minister of Finance--Sir Lynden O. Pindling Deputy Prime Minister and Minister of Tourism--Clement T. Maynard Minister of Foreign Affairs-- E. Charles Carter Minister of Employment and Immigration--Alfred T. Maycock Minister of National Security and Minister of Education--Paul L. Adderley Attorney General--Sean G.A. McWeeney Minister of Works and Utilities--Darrell E. Rolle Minister of Health--Norman R. Gay Minister of Transport, Minister of Civil Aviation, and Minister of Local Government--Philip M. Bethel Minister of Consumer Affairs--Bernard Nottage Minister of Agriculture, Trade and Industry--Perry Christie Minister of Youth, Sports, and Community Affairs--Peter J. Bethel Minister of Housing and National Insurance--George W. Mackey Ambassador to the United States and Organization of American States (OAS)--Margaret McDonald Ambassador to the United Nations--James Multrie Consul General, Miami--Winston Munnings The Bahamas maintains an embassy in the United States at 600 New Hampshire Avenue NW., Washington, D.C. 20037 (tel. 202-338-3940) and a consulate in the Ingraham Building, 25 SE 2d Avenue, Miami, FL 33131 (tel. 305-373-6295/96). ECONOMY Tourism is the mainstay of the economy, accounting for an estimated 50% of the gross national product (GNP) and employing about half of the work force. In 1988, tourism earnings totaled $1.14 billion. About 80% of the tourists are American. The number of cruise ship passengers is increasing; however, with lodging and food provided on board, impact on the Bahamian economy is limited. The main tourism centers are New Providence (Nassau and Paradise Island) and Grand Bahama (Freeport), both of which have several luxury hotels. Carnival Cruise Lines recently invested $200 million dollars in a 1,550-room hotel, convention center, and casino in Nassau. This expanded facility was completed in December 1989 and provides over 3,000 jobs. The government also promotes tourism growth in the Family Islands. Finance is the economy's second most important sector. Of the 387 banks and trust companies licensed in The Bahamas, most are primarily involved in managing assets for individuals and offshore companies and trusts. The Bahamas' status as a tax haven and its system of banking regulations that guarantee secrecy of financial transactions have led to its growth as an international banking center. On January 15, 1990, a new International Business Companies Act became effective, simplifying the requirements and reducing the cost of forming an offshore company in The Bahamas. The Bahamas hopes to compete with other offshore financial centers for international business incorporations. Industrial firms find that their location in The Bahamas provides access to both the US-Canadian market under terms of the Caribbean Basin Initiative and to the European Community under the Lome Convention. The industrial sector is led by four major firms. The pharmaceutical firm Syntex has a major facility in Freeport, which will undergo a $70 million expansion in 1990 involving computer-assisted manufacturing. The BORCO oil facility, also in Freeport, is a transshipment facility for oil in the region. Commonwealth Brewery in Nassau is a joint venture between Heineken and Bahamian partners and produces Heineken, Guiness, and Bahamian Kalik beer. Bacardi distills rum in Nassau for shipment to the US and European markets. Other industries include sun-dried sea salt in Inagua, a wet dock facility in Freeport for repair of cruise ships, and aragonite, a type of limestone with several industrial uses which is extracted from the sea floor at Ocean Cay. The government has been attempting to diversify the economy and attract new industries but with little success. The Industries Encouragement Act offers manufacturers relief from import duties and taxes. Tourism, however, remains the major industry, and The Bahamas is affected by the cyclical influences of the US economy. The United States, from which most food and manufactured goods are imported, is The Bahamas' most important trading partner. Principal Bahamian exports to the United States are pharmaceuticals (hormones), petroleum products, rum, crawfish, and salt. Developing industries include fish farming, citrus growing, and tropical fruits. The Bahamas benefits from being below the frost belt and having no agricultural pests not already present in Florida, permitting certification of fruit exports to the US market. FOREIGN RELATIONS Foreign affairs are handled by the Ministry of Foreign Affairs. The Commonwealth of The Bahamas became a member of the United Nations in 1973 and the Organization of American States in 1982. The Bahamas has a high commissioner in London and an ambassador in Ottawa. US-BAHAMIAN RELATIONS The United States historically has had close economic and trade relations with The Bahamas. The two countries cooperate on meteorology, civil aviation, maritime safety, law enforcement, and agricultural matters. Ethnic and cultural ties, especially in education and sports, are especially strong. The US Navy and Air Force operate facilities for underwater research, missile tracking, and aids to navigation on Andros and Grand Bahama. The US preclearance facilities (US Customs, Immigration, and Agriculture) for travelers to the United States operate at the international airports in Nassau and Freeport. Principal US Officials Ambassador--Jacob Chic Hecht Deputy Chief of Mission--Martin L. Cheshes Chief, Political/Economic/Commercial Section--Bruce Thomas Consul--Curtis Stewart Naval Liaison Officer--Cmdr. Glen Eckley Administrative Officer--Jacquelyn Briggs Public Affairs Officer (USIS)--Mary Reeber Drug Enforcement Administration--John Pulley Coast Guard Liaison--LtC. James Meisner The US Embassy is located in the Mosmar Building, Queen Street, Nassau (tel. 809-322-1181; telex 20-138); the postal address is P.O. Box N-8197, Nassau.