Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0007.TXT

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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. [phone]) and
a consulate in the Ingraham Building, 25 SE 2d Avenue, Miami, FL 33131
(tel. [phone]).

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. [phone]; telex
20-138); the postal address is P.O. Box N-8197, Nassau.