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#CARD:Grenada:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES: GRENADA
November 1990
OFFICIAL NAME: GRENADA
PROFILE
Geography
Area: 344 sq. km. (133 sq. mi.): about twice the size of Washington, DC.
Cities: Capital-St. George's (pop. 30,000 est.). Terrain: Volcanic
island with central mountainous rain forest. Climate: Tropical.
People
Nationality: Noun and adjective-Grenadian(s). Population (1989 est.):
98,000; 50% under age 25. Average annual growth rate (1977-88): 0.7%.
Ethnic groups: Mainly black African descent, few East Indian, few
European, trace Arawak/Carib Indian. Religions: Roman Catholic (63%),
Church of England, other Protestant denominations. Languages: English
(official), some vestigial French patois. Education: Years
compulsory-6. Literacy-95% of adult population. Health: Infant
mortality rate-16.7/1,000. Life expectancy-68 yrs. Work force (1986
est.) 35,000: Agriculture-33%. Industry-17%. Other-50%.
Government
Type: Independent state since February 7, 1974; recognizes the British
monarch, Queen Elizabeth II, as head of state. Administered by an
interim government immediately following the ouster of the People's
Revolutionary Government in October 1983, and returned to a
Westminister-style parliamentary system through national elections in
December 1984. Independence: February 7, 1974. Constitution: December
19, 1975.
Branches: Governor general (appointed by and represents British
monarch, head of state). Legislative-Parliament composed of a 15-seat
directly elected House of Representatives, and a 13-seat Senate
appointed by the governor general on the advice of the majority party
and opposition. Executive-the prime minister (head of government,
leader of majority party) and his cabinet direct an apolitical career
civil service in the administration of the government. Judicial-Grenada
Supreme Court, composed of the High Court of Justice and a Court of
Appeals.
Administrative subdivisions: Six parishes and one dependency (Carricou
and Petit Martinique in the Grenadines).
Political parties: National Democratic Congress (NDC), The National
Party (TNP), New National Party (NNP), Grenada United Labor Party
(GULP), Maurice Bishop Patriotic Movement (MBPM), and the New Jewel
Movement (NJM). Suffrage: Universal over 18.
Central government budget (1989): $92.1 million. Recurrent
expenditures-$59.2 million. Capital expenditures-$32.9
million. (Capital expenditures financed largely by foreign assistance.)
National holiday: Independence Day-February 7.
Flag: Red, yellow, and green with a nutmeg left of center.
Economy
GDP (1989 at current factor cost): $140 million. Annual growth rate:
1986, 5.5%; 1988, 5.3%; 1989, 5.6%. Per capita GDP (1989): $1,429.
Inflation rate (1989): 3.7%.
Agriculture (1989, 16.8% of GDP): Products-nutmeg, mace, cocoa, bananas,
fruits, vegetables.
Industry (1989): Types-manufacturing 5%, hotel/restaurant 6%,
construction 10%.
Trade: Exports-$28.1 million (1989): nutmeg, mace, cocoa, bananas,
fruits, vegetables. Major markets (1988)-CARICOM countries 17%, UK 26%,
FRG 14%, Netherlands 24%, US 10%. Imports-$100 million (1989): food,
machinery and transport, manufactured goods, fuel. Major suppliers
(1988)-US 26%, CARICOM 21%, UK 16%, Japan 6%.
Official exchange rate: Eastern Caribbean dollar (EC)$2.7=US$1. Standard
bank (buying) rate: EC$2.7=US$1.
Fiscal year: Calendar year.
Membership in International Organizations
UN and some of its specialized and related agencies, including the
World Bank, International Monetary Fund (IMF), UNESCO, International
Fund for Agricultural Development (IFAD), International Labor
Organization (ILO), Universal Postal Union (UPU), World Health
Organization (WHO); International Fisheries Service; Nonaligned
Movement, Organization of American States (OAS); Caribbean Community and
Caribbean Common Market (CARICOM); Organization of Eastern Caribbean
States (OECS); Latin American Economic System (SELA).
PEOPLE
Most of Grenada's population is of African descent; there is little
trace of the early Arawak and Carib Indians. A few East Indians and a
small community of the descendants of early European settlers reside in
Grenada. Total population in 1986 was estimated at 92,500, reflecting
an annual increase of about 0.7% over the past decade. About 50% of
Grenada's population are under the age of 25. English is the official
language; only a few people still speak a French patois. A more
significant reminder of Grenada's historical link with France is the
strength of the Roman Catholic Church, to which 63% of Grenadians
belong. The Church of England is the largest Protestant denomination.
HISTORY
Columbus discovered Grenada in 1498 during his third voyage to the New
World. He named the island "Concepcion." The origin of the name
"Grenada" is obscure. Legend has it that the Spanish renamed the island
for the city of Grenada. By the beginning of the 18th century, the name
"Grenada" was in common use.
When discovered, Grenada was inhabited by Carib Indians who had driven
the more peaceful Arawaks from the island. Partly because of the
Caribs, Grenada remained uncolonized for more than 100 years after its
discovery; British efforts to settle the island were unsuccessful. In
1650, a French company founded by Cardinal Richelieu purchased Grenada
from the British and established a small settlement. After several
skirmishes with the Caribs, the French brought in reinforcements from
Martinique and slaughtered the entire Indian population.
The island remained under French control until captured by the British
a century later during the Seven Year's War. Grenada was formally ceded
to Great Britain in 1763 by the Treaty of Paris. Although the French
regained control in 1779, the island was restored to Great Britain in
1783 by the Treaty of Versailles.
During the 18th century, Grenada's economy underwent an important
transition. Like the rest of the West Indies, it was originally settled
to cultivate sugar, which was grown on estates using slave labor.
However, natural disasters paved the way for the introduction of other
crops. A plague of ants, followed by a hurricane, virtually destroyed
the sugar industry. In 1782, Sir Joseph Banks, the botanical adviser to
King George III, introduced nutmeg to Grenada. The island's soil was
ideal for growing the spice, and, because Grenada was a closer source of
spices for Europe than the Dutch East Indies, the island assumed a new
importance to European traders. The collapse of the sugar estates and
the introduction of nutmeg and cocoa encouraged the development of
smaller land holdings. The island developed a landowning yeoman farmer
class; slavery was outlawed in 1833.
In 1833, Grenada was made part of the British Windward Islands
Administration. The governor of the Windward Islands administered the
island for the rest of the colonial period. In 1958, the Windward
Islands Administration was dissolved, and Grenada joined the Federation
of the West Indies. After the federation collapsed in 1962, the British
government attempted to form a small federation out of their remaining
dependencies in the eastern Caribbean.
Following the failure of this second effort, the British and the
islands developed the concept of associated statehood. Under the
Associated Statehood Act of 1967, six British dependencies in the
eastern Caribbean (Grenada, St. Vincent, St. Lucia, Dominica, Antigua,
and St. Kitts-Nevis-Anguilla) were granted full autonomy over their
internal affairs. Great Britain retained responsibility for their
defense and external affairs. Grenada became an associated state on
March 3, 1967, but sought full independence, which the British
government granted on February 7, 1974.
After obtaining independence, Grenada adopted a modified Westminster
parliamentary system based on the British model, with a governor general
appointed by and representing the British monarch (head of state) and a
prime minister who is both leader of the majority party and the head of
government. Sir Eric Gairy was Grenada's first prime minister.
On March 13, 1979, the New Joint Endeavor for Welfare, Education, and
Liberation (New Jewel) Movement ousted Gairy in a nearly bloodless coup
and established a People's Revolutionary Government (PRG), headed by
Maurice Bishop, who became prime minister. His Marxist-Leninist
government moved to establish close ties to Cuba, the Soviet Union, and
other communist bloc countries.
In October 1983, a power struggle within the government resulted in the
arrest and subsequent execution of Prime Minister Bishop and several
members of his cabinet by elements of the People's Revolutionary Army.
Following a breakdown in civil order, a multilateral, joint US-Caribbean
force landed in Grenada on October 25 in response to an appeal from the
governor general and to a request for assistance from the Organization
of Eastern Caribbean States. US citizens were evacuated, order was
restored, and US forces withdrew. An advisory council, named by the
governor general, administered the country until general elections were
held in December 1984. The New National Party (NNP), led by Herbert
Blaize, won a strong parliamentary majority and formed Grenada's first
democratic government since 1979.
GOVERNMENT AND POLITICAL CONDITIONS
Grenada is governed under a parliamentary system inherited from the
British (see PROFILE). Grenada's constitution was suspended in 1979 by
the PRG but restored after the October 1983 intervention by the United
States and Caribbean countries. The NNP won 14 out of 15 seats in free
and fair elections in 1984. It continued in power until 1989, but with
a reduced majority because of the defections in 1986 of two of its
parliamentary members and the April 13, 1987, resignations of three
additional parliamentary members (including two cabinet ministers).
These five parliament members formed the National Democratic Congress
(NDC) and became the official opposition.
In August 1989, Prime Minister Blaize broke with the NNP to form a new
party, The National Party (TNP), from the ranks of the NNP. The split
in the NNP resulted in the formation of a minority government with the
TNP controlling only six seats in the parliament. Shortly thereafter,
the prime minister suspended the parliament pending constitutionally
scheduled elections held March 13, 1990. Prime Minister Blaize died in
December 1989 and was succeeded as prime minister by Ben Jones until
after the elections. The NDC emerged from the March elections as the
strongest party, winning 7 of the 15 available seats. The governor
general appointed Nicholas Brathwaite, who successfully forged a
majority coalition giving the NDC 10 seats, as the new prime minister.
The opposition consists of three members of the Grenada United Labor
Party (GULP) and two members of the NNP, two TNP members and one GULP
member having joined the NDC in the government.
In 1985, the parliament restored the 1974 independence constitution and
legitimized the court system inherited from its predecessors, who had
ruled by decree. Political and civil rights are fully guaranteed by the
government. Political parties range from the moderate TNP, NNP, and NDC
to the Marxist Maurice Bishop Patriotic Movement (MBPM) (organized by
the pro-Bishop survivors of the October 19, 1983, anti-Bishop coup), the
New Jewel Movement (NJM), and the populist GULP of former prime minister
Gairy. The MBPM and the NJM are not represented in the parliament.
Principal Government Officials Nicholas Brathwaite-Prime Minister and
Minister of External Affairs, National Security, Home Affairs, Carriacou
and Petit Martinique Affairs. Ambassador to the United States-Denneth
Modeste
Grenada maintains an embassy in the United States at 1701 New Hampshire
Avenue, NW, Washington, DC 20009 (tel. 202-265-2561).
ECONOMY
The Grenadian economy grew by 5.6% in 1989, following an annual growth
rate of 5.3% in 1988. This rate is expected to remain constant in 1990
as the tourism and construction sectors continue their strong
performance. The agriculture sector is expected to rebound modestly
from its poor showing in 1989 as well. The gross domestic product (GDP)
at current factor cost in 1989 was $140 million, and per capita income
was $1,429.
Exports decreased from $32.9 million in 1988 to $28.1 million in 1989,
a decrease of 14.7%. Domestic exports in 1988 totaled $28.4 million,
while re-exports amounted to $4.5 million. Ninety percent of domestic
exports involved agricultural commodities, the value of which fell
slightly from 1988 to 1989 as production of some of the major export
commoditites declined. Total imports were $99.6 million in 1989, an
increase of $7 million over 1988 (or 7.6%).
Although declining in importance, agriculture remains the single most
important sector of the economy. In 1989, it accounted for 16.8% of
GDP, 85% of domestic exports, and one-third of the work force.
Agriculture is expected to grow by more than 3% in 1990. Other
significant growth sectors in 1989 were construction and manufacturing
with growth rates of 15% and 12%, respectively. The manufacturing
sector is small, accounting for 5.5% of GDP in 1989. It is expected to
grow by 10% in 1990, stimulated by several new assembly industries. The
construction industry, which began to expand in 1984 mainly as a result
of externally financed infrastructure and other public works projects,
was helped further in 1989 by growth in housing. Growth in construction
continued through 1989 and is expected to reach a rate of 10% in 1990.
Tourism is an important source of foreign exchange but modest in its
overall contribution to GDP. The number of tourist arrivals decreased
by 4.2% to 192,172 in 1989 as a result of a sharp decrease in cruise
ship arrivals. However, the number of stayover visitors increased by
11% to 66,596. Expenditure by tourists in 1988 was estimated at about
$45.6 million. The initiation of daily American Airlines flights
between Puerto Rico and Grenada in June 1990 should help to speed
development of the tourism sector.
Grenada has benefitted from the Caribbean Basin Initiative through the
establishment of a number of "twin plants" in the export processing
zone. Granada also has ratified a bilateral investment treaty and a tax
information exchange agreement with the United States.
DEFENSE
Security in Grenada is maintained by the 650 members of the Royal
Grenada Police Force (RGPF), which includes an 80-man paramilitary
Special Services Unit (SSU) and a 30-man coast guard unit. The US Army
and the US Coast Guard provide periodic training for the SSU and the
coast guard.
FOREIGN RELATIONS
The United States, Venezuela, and Taiwan have embassies in Grenada.
The government of the United Kingdom is represented by a resident
commissioner (as opposed to the governor general, who represents the
British monarch). Grenada has been recognized by most members of the
United Nations and maintains diplomatic missions in the United Kingdom,
the United States, Venezuela, and Canada.
Grenada is a member of the Caribbean Development Bank, the Caribbean
Common Market (CARICOM), the Organization of Eastern Caribbean States
(OECS), and the British Commonwealth. It joined the United Nations in
1974, and the World Bank, the International Monetary Fund, and the
Organization of American States in 1975.
US-GRENADIAN RELATIONS
The US government established an embassy in Grenada on November 1,
1983. The US Agency for International Development (USAID) has played a
major role in Grenada's development since then, providing more than $120
million in economic assistance. There are about 30 Peace Corps
volunteers in Grenada; they teach remedial reading. Some US military
training is given to Grenadian security and defense forces.
Principal US Officials
Charge d'Affaires-designate-Russell Surber
Economic Officer-William H. Memler
Administrative Officer-Edmee Pastore
Political Officer-Mary Ann Wright
Consular-Charles Jones
Peace Corps-Carol Cook
The US embassy is located at Point Salinas, Grenada. The mailing
address is P.O. Box 54, St. George's, Grenada, West Indies.
TRAVEL NOTES:
Climate: The climate is tropical and, although uncomfortably humid at
times, is not unhealthful. A mild, dry season lasts from January to
May, with night temperatures dropping to 16 C-18 C (60 F-65 F). During
the rest of the year, there are frequent rain showers. The temperature
rises to 32 C (90 F), and the humidity is high night and day. Rainfall
varies from 152 centimeters (60 in.) per year in the coastal districts
to 381-508 centimeters (150-200 in.) in the mountains. The Grenadines
islands tend to be drier than Grenada. Carriacou, for example, has an
average rainfall of about 127 centimeters (50 in.) a year.
Entry requirements: Proof of citizenship with photo ID is required by
US citizens, but a visa is not necessary for a stay of less than 3
months. No immunizations are required.
Currency: Grenada belongs to the Eastern Caribbean Currency Authority
and uses the EC dollar. Barclay's Bank International and the Bank of
Nova Scotia have branch offices in St. George's.
Transportation: Point Salines International Airport is served several
times daily by Leeward Islands Air Transport (LIAT) from Barbados,
Trinidad, and St. Vincent. British West Indian Airways (BWIA) also
provides regular service from Trinidad, New York, and Miami as well as
weekly service from New York. American Airlines has begun daily service
from Puerto Rico. British Airways has one flight weekly from London.
Published by the United States Department of State --Bureau of Public
Affair --Office of Public Communication -- Washington, DC --
November 1990 -- Editor: Marilyn J. Bremner
Department of State Publication 8822 -- Background Notes Series --
This material is in the public domain and may be reprinted without
permission; citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office, Washington,
DC 20402.(###)
#ENDCARD