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National Trade Data Bank
ITEM ID     : ST BNOTES BELIZE
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - BELIZE

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | BELIZE

US DEPARTMENT OF STATE
BACKGROUND NOTES:  BELIZE

OFFICIAL NAME:  BELIZE

PROFILE

Geography
Area:  22,963 sq. km. (8,866 sq. mi.); slightly larger than
Massachusetts.  Cities:  Capital-Belmopan (pop. 4,500).  Other
city-Belize City (60,000).  Towns-Dangriga, Orange Walk, Corozal,
Punta Gorda, San Ignacio, and Santa Elena.  Terrain:  Flat and
swampy coastline, low mountains in interior.  Climate:  Hot and
humid.


People
Nationality:  Noun and adjective-Belizean(s).  Population (1988 est.):
203,000.  Annual growth rate: About 8% (due to high immigration
rate).
Ethnic groups:  Creole, African, mestizo, Amerindian.  Religions:
Roman Catholic, Anglican, Methodist, other Protestant, Muslim, and
Buddhist.  Languages:  English (official), Spanish, Mayan.
Education:  Years compulsory-9.  Attendance-55%.  Literacy-more
than 80%.  Health (1988):  Infant mortality rate-56/1,000.  Life
expectancy-60 years.  Work  force (58,000):  Agriculture-30%.
Industry and commerce-27%.  Services-25%.  Government-16%.
Other-2%.


Government
Type: Parliamentary.  Independence: September 21, 1981.
Constitution: September 21, 1981.

Branches: Executive-British monarch (head of state), represented by
a governor general; prime minister (head of government, 5-year
term).  Legislative-bicameral National Assembly.  Judicial-Supreme
Court, Court of Appeal, district magistrates.

Subdivisions:  6 districts
Political parties:  People's United Party (PUP), United Democratic
Party (UDP).  Suffrage:  Universal adult.

Central government budget (1989-90):  $71.8 million current
expenditures, $45.2 million capital accounts.

Defense (1989 est.):  2% GDP.

Flag:  Blue field with red stripes at top and bottom.  Centered in the
blue field is the national coat of arms consisting of two workers and
symbols of agriculture, industry, and maritime trade on a white
circular background.


Economy
GDP (1988 est. current prices): $247 million.  Annual growth rate
(1988): 7.6%.  Per capita income: $1,220.  Avg. inflation rate (1988):
5%.

Natural resources:  Arable land, timber, seafood.

Agriculture (19% of GDP):  Products-sugar, citrus fruits and juices,
bananas, mangoes, papayas, honey, corn, beans, rice, cattle, and
winter vegetables.

Industry (15% of GDP):  Types-clothing, beverages.

Tourism (1988, 11% of GDP):  Visitor arrivals 132,000.

Trade (1989 est.):  Exports-$100 million; sugar, clothing, citrus
concentrate, lobster, fish, and bananas.  Major markets-US, UK,
CARICOM.  Imports-$148.5 million: food, consumer goods, building
materials, vehicles, machinery, petroleum products.  Major
suppliers-US, Mexico, UK.

Official exchange rate:  The Belize dollar is tied to the US dollar at a
fixed rate of Belize $2=US$1.

Economic aid received (grant and concessional loan):  US aid (FY
1988)-$8.4 million.  Aid from other countries and international
agencies (1989)-$15.8 million.


Membership in International Organizations
UN and some of its specialized and related agencies, including the
World Bank and the International Monetary Fund (IMF); Caribbean
Community (CARICOM); Caribbean Development Bank (CDB);
International Development Agency (IDA); International Finance
Corporation (IFC); Commonwealth; Nonaligned Movement.  Will join
the OAS in 1990.


PEOPLE
Belize is the most sparsely populated nation in Central America.
Slightly more than half of the people live in six urban areas, primarily
along the coast.  About one-fourth live in Belize City, the former
capital and principal port.  Population has increased dramatically in
the last few years from the inflow of Central American
refugees-estimated at up to 30,000 in 1988-mostly from El Salvador
and Guatemala, more than balancing the heavy emigration of the
Creole population to North America.
Most Belizeans are of multiracial descent.  About 40%-45% are of
African ancestry.  More than 25% of the population is of mixed local
Indian and European descent (mestizo).  Another one-fifth is
composed of Carib, Mayan, or other Amerindian ethnic groups.  The
remainder, about 10%, includes Europeans, East Indians, Chinese,
and Lebanese.

English, the official language, is spoken by virtually all except the
most recently arrived refugees.  Spanish is the native tongue of
about 50% of the people and is spoken as a second language by
another 20%.  The various Indian groups still speak their original
languages, and an English Creole dialect, similar to the Creole
dialects of the English-speaking Caribbean islands, is spoken by
many.  The rate of functional literacy is more than 80%.  About half
the people are Roman Catholic; the Anglican Church and Protestant
Christian groups account for most of the other half.  Mennonite
settlers number about 3,000.


HISTORY
The Mayan civilization spread into the area of Belize between 1500
BC and AD 300 and flourished until about AD 1000.  Several major
archeological sites, notably Caracol, Lamanai, Labaantun, Altun Ha,
and Xunantunich, reflect the advanced civilization and much denser
population of that period.  European contact began in 1502 when
Columbus sailed along the coast.  The first recorded European
settlement was begun by shipwrecked English seamen in 1638.
Over the next 150 years, more English settlements were established.
This period was also marked by piracy, indiscriminate logging, and
sporadic attacks by Indians and neighboring Spanish settlements.

Great Britain first sent an official representative to the area in the late
18th century, but Belize was not formally termed the "Colony of
British Honduras" until 1840.  It became a crown colony in 1862.
Subsequently, several constitutional changes were enacted to
expand representative government.  Full internal self-government
under a ministerial system was granted in January 1964.  The official
name of the territory was changed from British Honduras to Belize
in June 1973, and full independence was granted on September 21,
1981.


GOVERNMENT AND POLITICAL CONDITIONS
Belize is a parliamentary democracy on the Westminster model and
is a member of the Commonwealth.  Queen Elizabeth II is head of
state and is represented in the country by Governor General Dame
Dr. Minita E. Gordon, a Belizean.  The primary executive organ of
government is the cabinet, led by a prime minister (head of
government).  Cabinet ministers are members of the majority political
party in parliament and usually hold elected seats in the National
Assembly concurrently with their cabinet positions.

The National Assembly consists of a House of Representatives and
a Senate.  The 28 members of the House are popularly elected to a
maximum 5-year term.  Of the Senate's eight members, five are
selected by the prime minister, two by the leader of the opposition,
and one by the governor general.

The Belize government is controlled by the People's United Party
(PUP), which won 15 of the 28 seats in the House of Representatives
on September 4, 1989.  The United Democratic Party (UDP) won the
other 13 seats.  The UDP had governed Belize from December 1984
until September 1989.  Before 1984, the PUP had dominated the
electoral scene for over 30 years.  Prime Minister George Price was
Premier from 1961 until the granting of independence in 1981 when
he became Prime Minister, a post he held until the 1984 election and
regained in 1989.

Members of the independent judiciary are appointed.  The judicial
system includes local magistrates, the Supreme Court, and the Court
of Appeal.  Cases may, under certain circumstances, be appealed to
the Privy Council in London.  The country is divided into six districts:
Corozal, Orange Walk, Cayo, Belize, Stann Creek, and Toledo.


Principal Government Officials
Head of State-Queen Elizabeth II
Governor General-Dame Dr. Minita E. Gordon
Prime Minister, Minister of Finance, Minister of Home Affairs and
Defence, and Minister of Commerce-George C. Price
Deputy Prime Minister and Minister of Industry, Natural Resources
and
      Forestry-Florencio Marin
Chief Justice-T. S. Cotran
Speaker of the House-Robert Clifton Swift
President of the Senate-Jane Usher
Minister of Foreign Affairs, Minister of Economic Development, and
Minister of Education-Said Musa
Minister of Energy, Transportation and Communications -Carlos Diaz
Minister of Agriculture and Fisheries-Michael Espat
Minister of Social Services and Community Development- Remijio
Montejo
Minister of Housing and Cooperatives-Valdemar Castillo
Attorney General and Minister of Tourism and Environment- Glenn
Godfrey
Minister of Health and Minister of Urban Development-Dr. Theodore
Aranda
Minister of Works-Leopoldo Briceno
Minister of Labor and Local Government-Samuel Waight
Ambassador to the United States-Edward Laing
Ambassador to the United Nations-Lindbergh Rogers
Belize maintains an embassy in the United States at 3400
International Drive NW, #2J, Washington, DC 20008 (tel.
202-363-4505).


ECONOMY
Forestry was the only economic activity of any consequence in Belize
until well into the 20th century when the supply of accessible timber
began to dwindle.  Sugar then became the principal export, but
recently has been augmented by expanded production of citrus,
bananas, seafood, and apparel, as well as a booming tourism
industry.  The country's major natural resource is about 809,000
hectares of arable land, only a small fraction of which is under
cultivation.  To curb land speculation, the government enacted
legislation in 1973 that requires non-Belizeans to complete a
development plan on land they purchase before obtaining title to
plots of more than 10 acres of rural land or more than one-half acre
of urban land.

Domestic industry is limited, constrained by relatively high-cost labor
and energy and a small domestic market.  Belize is a member of the
Caribbean Community (CARICOM), which provides assured access
to a large market for potential grain and livestock surpluses.  Belize
hopes that it will help stimulate the growth of commercial agriculture,
although Belizean trade with the rest of the Caribbean is limited
compared to that with the United States and Europe.  The country
is a beneficiary of the Caribbean Basin Initiative (CBI). The CBI is a
US Government program to stimulate investment in Caribbean
nations by providing duty-free access to the US market for most
Caribbean products.  Significant US private investments have been
made in Belize in citrus and shrimp farms under CBI.  US trade
preferences allowing for duty-free re-import of finished apparel cut
from US textiles have recently doubled the apparel industry to 22%
of merchandise exports.  European Community and UK preferences
have been vital for the expansion and prosperity of the sugar and
banana industries.

Belize's well-established policy of encouraging new foreign
investment has been an important factor attracting capital for these
ventures.  Promising opportunities for growth and investment in
Belize include citrus, bananas, beef, winter fruits and vegetables,
aquaculture, tourism, forest products, and apparel.

A combination of natural factors-climate, the longest barrier reef in
the Western Hemisphere, numerous islands, excellent fishing, safe
waters for boating, jungle wildlife, and Mayan ruins-support a thriving
tourist industry.  Development costs are high, but the government of
Belize has designated tourism as its second development priority
after agriculture.  Visitors totaled 132,000 in 1988, and the tourist
industry is worth $47 million per year.  The 1989 Tourism Sector
Policy/Strategy Statement reserves the lower end of tourism
development for Belizeans but welcomes foreign investor interest in
larger projects.

Economic performance is fragile, and although outstanding growth
has been achieved in recent years, the achievements are vulnerable
to world commodity price fluctuations and continuation of trade
preferences.  Economic growth is constrained by a number of
factors, including the lack of infrastructure.  No roads exist to service
large tracts of potentially arable land and timber.  Some roads,
including sections of major highways, are subject to damage or
closure during the rainy season.  Electric service is costly at $.205
per kilowatt hour and unavailable in many rural areas.  Inadequate
roads and ports limit external marketing.  Expansion of port handling
facilities is underway in Belize City, and a new deep water port is
being dredged in Big Creek to complement facilities in Belize City
and Commerce Bight.  Barges and lighters are used for sugar,
bananas, and other shipments.

Several areas are being improved through the efforts of the
government of Belize, US assistance projects, and other donors.
The US Agency for International Development (USAID), the European
Community, and the United Kingdom have projects to upgrade the
quality of the Belizean road system.  Steel and concrete bridges are
being constructed to ensure year-round passage to remote portions
of the country.  Rural electrification is moving forward, and urban
electric power is becoming more dependable.  The USAID program
is designed to enable Belize to plan the best use of its resources in
agriculture, forestry (including tropical forestry and biodiversity
protection), and tourism development.  It includes technical
assistance and training in these areas to help the government of
Belize plan agriculture and tourism growth in a rational and
ecologically sound manner.  Under aid agreements with the United
Kingdom and the Caribbean Development Bank, the international
airport terminal is being replaced and the runway lengthened.  A new
water and sewer system is almost completed in Belize City with the
help of the Canadian International Development Agency, and
construction plans have been announced for a new 100-bed hospital
for Belize City with the assistance of the European Community.  A
Ramada Inn hotel is under construction in Belize City with significant
financing from the US Overseas Private Investment Corporation
(OPIC).

The government recognizes the need to develop the country and has
budgeted $45.2 million in fiscal year 1989-90 for capital expenditure.
Much of the government's operating expenses are derived from
customs duties and taxes, but most of the capital expenses are met
through foreign assistance.

Belize has consistently run a substantial trade deficit, reaching $48.4
million in 1988.  The deficit is financed primarily by foreign aid,
foreign investment, and remittances from Belizeans working in the
United States.  Merchandise imports in 1988 totaled $148.5 million,
while exports were only $100.1 million.  In 1988, the United States
accounted for 52% of Belize's imports and 47% of exports.  Other
major trading partners are the European Community (17.5% of
imports, of which the United Kingdom accounts for 8.2%), and
Mexico (8.8% of imports).


FOREIGN RELATIONS
Belize's principal external concern has been the dispute involving the
Guatemalan claim to Belizean territory and unwillingness to recognize
Belizean independence.  This dispute originated in imperial Spain's
claim to all "New World" territories west of Portuguese colonization
on the bulge of South America.  Nineteenth century efforts to resolve
the problems led to later differences over interpretation and
implementation of an 1859 treaty intended to establish the
boundaries between Guatemala and British Honduras.  Guatemala
holds that the 1859 treaty is void because the British failed to comply
with all of its economic assistance clauses.  Neither Spain nor
Guatemala ever exercised effective sovereignty over the area.

Negotiations proceeded for many years, including one period in
which the US Government sought unsuccessfully to mediate a
solution.  A 1981 trilateral "Heads of Agreement"-Belize, Guatemala,
and the United Kingdom-was never implemented due to
disagreements.  Thus, Belize became independent on September 21,
1981, with the territorial dispute unresolved.  Significant negotiations
between Belize and Guatemala, with the United Kingdom as an
observer, resumed in 1988.  To date, however, differences have not
been resolved sufficiently to lead to a treaty.

In order to strengthen its potential for economic and political
development, Belize has sought to build closer ties with the
Spanish-speaking countries of Central America to complement its
historical ties to the English-speaking Caribbean states.  Belize is a
member of CARICOM.  In 1990, it will be eligible to join the
Organization of American States (OAS)-due to changes in the OAS
charter-and intends to do so as soon as possible.  Heretofore,
Guatemalan objections have kept Belize out of the OAS and some
other regional bodies.


US-BELIZEAN RELATIONS
The United States and Belize traditionally have had close and cordial
relations since they were established in the 1930s.  The United
States is Belize's principal trading partner and major source of
investment funds and is also home to the largest Belizean community
outside Belize (an estimated 35,000 Belizeans live in the United
States).  Because Belize's economic growth and accompanying
democratic political stability are important US objectives in an often
troubled region, Belize benefits from the Central American and
Caribbean Basin Initiatives.  Through an active USAID program, the
United States is now the largest provider of economic assistance to
Belize.  The Peace Corps has more than 100 volunteers in country.
American investment and tourism are growing rapidly.  Excellent air
and shipping links to the United States facilitate trade and travel.
The US Government cooperates with the government of Belize
against illicit narcotics.  In Punta Gorda, Voice of America operates
a medium-wave radio relay station which broadcasts to Honduras,
Guatemala, and El Salvador.


DEFENSE
The Belize Defence Force (BDF), established in January 1973,
consists of an infantry force of regulars and reservists along with
small air and maritime wings.  A British Loan Service Officer now
commands the BDF but will be replaced by a Belizean officer in
1990.  A British military garrison of 1,800 troops remains in Belize
under an external defense agreement concluded with the United
Kingdom at the time of independence.  The BDF receives military
training assistance from the United States and the United Kingdom.
The United States established a military assistance office in Belize in
1983 and, in addition to training, has provided some grant funds for
the purchase of materiel, primarily transport, communications, and
individual equipment.


Principal US Officials
Ambassador-designate-Eugene L. Scassa
Deputy Chief of Mission-Joseph Hayes
AID Director-Mosina Jordan
Economic/Commercial Officer-Katherine Christensen
Political Officer-Alexander Featherstone
Consul-Rudolph Boone
Administrative Officer-Charles Grover
Defense Attache-LtC. Randall Parish, Jr.

Chief, Military Liaison Office-Maj. Jerry Croghan
Peace Corps Director-Gary Arnold
Voice of America Manager-Fred Haney

The US Embassy is located in Belize City at the corner of Gabourel
Lane and Hutson Streets.  The mailing address is PO Box 286, Belize
City, Belize, Central America.  Telephone [phone] from the
United States, or 77161 locally.  FAX to Embassy 011-501-2-30802
(24-hour coverage).

TRAVEL NOTES
Customs and immigration:  Passports are required of US citizens
wishing to enter Belize.  Travelers arriving by car may be required to
post a customs bond equivalent to the import duty value of the car,
but this requirement can be waived upon proof of visitor status.
Travelers must demonstrate that they have sufficient funds for a visit
($30 per person per day) and onward travel.  The government
enforces a strict policy of refusing admittance to those whom an
immigration officer suspects of drug use.


Health:  Medicines and care for ordinary needs are available in Belize
City and the larger district towns.  Tapwater is sometimes
contaminated.  Food served in local restaurants is generally safe.


Telecommunications:  Local and international telephone, telegraph,
and telefax service is available in Belize.  Belize time is the same as
US Central Standard or Mountain Daylight time.


Transportation:  Belize is served by one US and two Central
American airlines with connections to Central America and the United
States (New Orleans, Miami, and Houston).  Buses, taxis, light
aircraft, and boats provide internal transportation.  Buses and taxis
are available in Belize City, and shopping areas are close to hotels.


Local holidays:  Businesses and shops may be closed on the
following holidays:

New Year's Day   Jan. 1
Baron Bliss Day   Mar. 9
Good Friday   date varies
Holy Saturday   date varies
Easter Monday   date varies
Labor Day   May 1
Commonwealth Day   May 24
National Day   Sept. 10
Independence Day   Sept. 21
Pan American Day   Oct. 13
Garifuna Day   Nov. 19
Christmas Day   Dec. 25
Boxing Day   Dec. 26

Published by the United States Department of State --  Bureau of
Public Affairs  -- Office of  Public Communication -- Washington, DC
-- May 1990 -- Editor:  Marilyn J. Bremner.

Department of State Publication 8332 -- 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.