Note: The Bahamas
of The Bahamas
Area: 13,939 sq. km. (5,382 sq. mi.); slightly larger than Connecticut and
Rhode Island combined.
Cities: Capital--Nassau, New Providence. Second-largest
city--Freeport, Grand Bahama.
Terrain: Low and flat.
Noun and adjective--Bahamian(s).
Population (2004): 318,000.
growth rate (2004): 1.4%.
Ethnic groups: African 85%, European 12%, Asian
and Hispanic 3%.
Religions: Baptist (32%), Roman Catholic, Anglican, Evangelical
Protestants, Methodist, Church of God, Rastafarian, Traditional African.
English (official); Creole.
Education (2003): Years compulsory--through
age 16. Attendance--92%. Literacy--95.5%.
Health (2005): Infant
mortality rate--19.0/1,000. Life expectancy--70.5 years.
force (2004): 176,330; majority employed in the tourism, government, and financial
Type: Constitutional parliamentary democracy.
Independence: July 10, 1973.
Branches: Executive--British monarch (nominal head of state), governor
general (representative of the British monarch), prime minister (head of government),
and cabinet. Legislative--bicameral Parliament (40-member elected House
of Assembly, 16-member appointed Senate). Judicial--Privy Council in
U.K., Court of Appeal, Supreme Court, and magistrates' courts.
Free National Movement (FNM), Progressive Liberal Party (PLP), Coalition for Democratic
Suffrage (2002): Universal over 18; 144,758 registered voters.
GDP (2004): $5.7 billion.
rate (2004): 3%.
Per capita GDP (2004): $17,883.
Natural resources: Salt,
Tourism (2004): 40% of GDP.
Government spending (2004):
20% of GDP.
Financial services (2004): 15% of GDP.
Construction (2004; 10%
of GDP): Products--largely tourism related.
8% of GDP): Products--pharmaceuticals, rum.
Agriculture and fisheries
(2004; 3% of GDP): Products--fruits, vegetables, lobster, fish.
(2004): Exports ($469.3 million)--salt, aragonite, chemicals, fishing,
fruits, vegetables, beverages. Markets by main destination--U.S. (77.5%),
E.U. (17.8%), Canada (1.6%), Mexico (0.4%). Imports ($1.82 billion)--foodstuffs
and manufactured goods; vehicles and automobile parts; hotel, restaurant, and
medical supplies; computers and electronics. Suppliers by main origin--U.S.
(83.3%), Venezuela (5.5%), Netherlands Antilles (2.6%), E.U. (2.1%), Japan (1.2%).
percent of the Bahamian population is of African heritage. About two-thirds of
the population resides on New Providence Island (the location of Nassau). Many
ancestors arrived in the Bahamas when the islands served as a staging area for
the slave trade in the early 1800s. Others accompanied thousands of British loyalists
who fled the American colonies during the Revolutionary War.
form the largest immigrant community in The Bahamas. 30,000 - 50,000 are estimated
to be resident legally or illegally, concentrated on New Providence, Abaco and
is compulsory between the ages of 5 and 16. The government fully operates 158
of the 210 primary and secondary schools in The Bahamas. The other 52 schools
are privately operated. Enrollment for state primary and secondary schools is
50,332, with more than 16,000 students attending private schools. The College
of The Bahamas, established in Nassau in 1974, provides programs leading to bachelors
and associates degrees. Several non-Bahamian colleges also offer higher education
programs in The Bahamas.
In 1492, Christopher Columbus made his first landfall in the Western Hemisphere
in The Bahamas. Spanish slave traders later captured native Lucayan Indians to
work in gold mines in Hispaniola, and within 25 years, all Lucayans perished.
In 1647, a group of English and Bermudan religious refugees, the Eleutheran Adventurers,
founded the first permanent European settlement in The Bahamas and gave Eleuthera
Island its name. Similar groups of settlers formed governments in The Bahamas
until the islands became a British Crown Colony in 1717.
late 1600s to the early 1700s were the golden age for pirates and privateers.
Many famous pirates--including Sir Francis Drake and Blackbeard--used the islands
of The Bahamas as a base. The numerous islands and islets with their complex shoals
and channels provided excellent hiding places for the plundering ships near well-traveled
shipping lanes. The first Royal Governor, a former pirate named Woodes Rogers,
brought law and order to The Bahamas in 1718 when he expelled the buccaneers.
During the American Revolution, American
colonists loyal to the British flag settled in The Bahamas. These Loyalists and
new settlers from Britain brought Colonial building skills and agricultural expertise.
Until 1834, when Britain abolished slavery, they also brought slaves, importing
the ancestors of many modern Bahamians from Western Africa.
to the U.S. continued to provide opportunity for illegal shipping activity. In
the course of the American Civil War, The Bahamas prospered as a center of Confederate
blockade-running. During Prohibition, the islands served as a base for American
rumrunners. Today, the Bahamas is a major transshipment point for narcotics on
the way to the U.S.
self-government through a series of constitutional and political steps, attaining
internal self-government in 1964 and full independence within the Commonwealth
on July 10, 1973. Since independence, The Bahamas has continued to develop into
a major tourist and financial services center.
AND POLITICAL CONDITIONS
The Bahamas is an independent member of the Commonwealth
of Nations. It is a parliamentary democracy with regular elections. As a Commonwealth
country, its political and legal traditions closely follow those of the United
Kingdom. The Bahamas recognizes the British monarch as its formal head of state,
while an appointed Governor General serves as the Queen's representative in The
Bahamas. A bicameral legislature enacts laws under the 1973 constitution.
House of Assembly consists of 40 members, elected from individual constituencies
for 5-year terms. As under the Westminster system, the government may dissolve
the Parliament and call elections at any time. The House of Assembly performs
all major legislative functions. The leader of the majority party serves as prime
minister and head of government. The Cabinet consists of at least nine members,
including the prime minister and ministers of executive departments. They answer
politically to the House of Assembly.
Senate consists of 16 members appointed by the Governor General, including nine
on the advice of the prime minister, four on the advice of the Leader of the Opposition,
and three on the advice of the prime minister after consultation with the Leader
of the Opposition.
The Governor General
appoints the Chief Justice of the Supreme Court on the advice of the prime minister
and the Leader of the Opposition. The Governor General appoints the other justices
with the advice of a judicial commission. The Privy Council of the United Kingdom
serves as the highest appellate court.
government districts elect councils for town planning, business licenses, traffic
issues and maintaining government buildings. In some large districts, lower level
town councils also have minor responsibilities.
decades, the white-dominated United Bahamian Party (UBP) ruled The Bahamas, then
a dependency of the United Kingdom, while a group of influential white merchants,
known as the "Bay Street Boys," dominated the local economy. In 1953, Bahamians
dissatisfied with UBP rule formed the opposition Progressive Liberal Party (PLP).
Under the leadership of Lynden Pindling, the PLP won control of the government
in 1967 and led The Bahamas to full independence in 1973.
coalition of PLP dissidents and former UBP members formed the Free National Movement
(FNM) in 1971. Former PLP cabinet minister and member of Parliament Hubert Ingraham
became leader of the FNM in 1990, upon the death of Sir Cecil Wallace-Whitfield.
Under the leadership of Ingraham, the FNM won control of the government from the
PLP in the August 1992 general elections. The FNM won again in March 1997. In
the general elections held in May 2002 the FNM was turned out of power by the
PLP, led by Perry Christie, which won 29 of the 40 seats in the House of Assembly.
The next elections must be held by May 2007.
Governor General--Arthur Dion Hanna, Sr.
Deputy Prime Minister and Minister of National Security--Cynthia
Minister of Foreign Affairs and the Public Service--Fred Mitchell
to the United States and to the OAS-- Vacant (Charge d'Affaires - Eugene F. Torchon-Newry)
to the United Nations--Dr. Paulette Bethel
Consul General, Miami--Alma Adams
General, New York--Eldred Bethel
maintains an embassy in the United States at 2220 Massachusetts Ave., NW, Washington,
DC 20008 (tel: 202-319-2660) and Consulates General in New York at 231 East 46th
Street, New York, NY 10017 (tel: 212-421-6420), and in Miami at Suite 818, Ingraham
Building, 25 SE Second Ave., Miami, FL 33131 (tel: 305-373-6295).
The Bahamas is driven by tourism and financial services. Tourism provides
an estimated 40% of the gross domestic product (GDP), with an additional 10% of
GDP resulting from tourist-driven construction. Tourism employs about half the
Bahamian work force. In 2005, more than 5 million tourists visited The Bahamas,
87% from the United States. There are about 110 U.S.-affiliated businesses operating
in The Bahamas, and most are associated with tourism and banking. With few domestic
resources and little industry, The Bahamas imports nearly all its food and manufactured
goods from the United States. American goods and services tend to be favored by
Bahamians due to cultural similarities and heavy exposure to American advertising.
The Bahamian economy, due to its heavy dependence on U.S. tourism and trade, is
deeply affected by U.S. economic performance.
economic struggles in 2001-02 fueled by a drop in tourism after September 11,
2001, the current government has presided over a period of economic recovery and
an upturn in large-scale private sector investments in tourism, which will boost
construction and provide long-term employment. Future goals include developing
tourism properties on the Family Islands, expanding of ship-repair facilities
and encouraging film production facilities on Grand Bahama Island.
challenges facing the Bahamas include meeting continued employment demands, jumpstarting
a lagging privatization process, and monitoring increasing levels of government
debt. Another major challenge for Bahamians will be to prepare for hemispheric
free trade. Currently, Bahamians do not pay income or sales taxes. Most government
revenue is derived from high tariffs and import fees. Reduction of trade barriers
will probably require some form of taxation to replace revenues when the country
becomes a part of the Free Trade Area of the Americas (FTAA). As evident by domestic
opposition to the Caribbean Single Market Economy (CSME), the advantages of free
trade may be hard for the government to sell.
major hotel projects promise to increase economic growth and create short- and
long-term employment. The Atlantis Resort and Casino on Paradise Island is in
the third phase of a billion-dollar expansion expected to create 3,000 new jobs.
A second hotel resort development project costing nearly $2 billion is planned
for the Cable Beach area of Nassau. The Baha Mar Company has negotiated purchase
of three major hotels and a development site, including the last assets of the
state-owned Hotel Corporation. As a condition of these large-scale investments,
the government promises to expand Nassau International Airport and turn over management
to private operators. The Bahamian Government also has adopted a proactive approach
to courting foreign investors and has conducted major investment missions to the
Far East, Europe, Latin America, India and Canada. The government continues to
pay particular attention to China, making multiple trips to China to encourage
tourism and investment. For their part, the Chinese are funding the construction
of a new $30 million sports stadium in New Providence.
services constitute the second-most important sector of the Bahamian economy,
accounting for up to 15% of GDP, due to the country's status as a tax haven and
offshore banking center. As of 2005, the government had licensed 262 banks and
trust companies in The Bahamas. The Bahamas promulgated the International Business
Companies (IBC) Act in January 1990 to enhance the country's status as a leading
financial center. The act served to simplify and reduce the cost of incorporating
offshore companies in The Bahamas. Within 9 years, more than 84,000 IBC-type companies
had been established. In February 1991, the government also legalized the establishment
of Asset Protection Trusts in The Bahamas. In 2000, in response to multilateral
organizations' concerns, the government passed a legislative package of stronger
measures to better regulate the financial sector and prevent money laundering
in the country's banking sector, including creation of a Financial Intelligence
Unit and enforcement of "know-your-customer" rules. Some of these measures have
been challenged in Bahamian courts, and the number of offshore banks registered
in the Bahamas has declined substantially since 2002. As many as half of the IBCs
have also closed shop. As a result, the government is considering additional legislation
to keep the industry competitive while complying with international standards,
including possible reform of the regulatory structure.
and fisheries together account for 3% of GDP. The Bahamas exports lobster and
some fish but does not raise these items commercially. There is no large-scale
agriculture, and most agricultural products are consumed domestically. Following
an outbreak of citrus canker on Abaco in 2005, The Bahamas lost a main agricultural
export, and the Ministry of Agriculture banned the export of plant materials from
Abaco. The Bahamas imports more than $250 million in foodstuffs per year, representing
about 80% of its food consumption. The government aims to expand food production
to reduce imports and generate foreign exchange. It actively seeks foreign investment
aimed at increasing agricultural exports, particularly specialty food items. The
government officially lists beef and pork production and processing, fruits and
nuts, dairy production, winter vegetables, and mariculture (shrimp farming) as
the areas in which it wishes to encourage foreign investment.
Bahamian Government maintains the value of the Bahamian dollar on a par with the
U.S. dollar. The Bahamas is a beneficiary of the U.S.-Caribbean Basin Trade Partnership
Act (CBTPA), Canada's CARIBCAN program, and the European Union's Lome IV Agreement.
Although The Bahamas participates in the political aspects of the Caribbean Community
(CARICOM), it has not entered into joint economic initiatives, like the CSME,
with other Caribbean states.
has a few notable industrial firms: the Freeport pharmaceutical firm, PFC Bahamas
(formerly Syntex); the BORCO oil facility, also in Freeport, which transships
oil in the region; the Commonwealth Brewery in Nassau, which produces Heineken,
Guinness, and Kalik beers; and Bacardi Corp., which distills rum in Nassau for
shipment to U.S. and European markets. Other industries include sun-dried sea
salt in Great Inagua, a wet dock facility in Freeport for repair of cruise ships,
and mining of aragonite--a type of limestone with several industrial uses--from
the sea floor at Ocean Cay.
Creek Agreement established a duty-free zone in Freeport, The Bahamas' second-largest
city, with a nearby industrial park to encourage foreign industrial investment.
The Hong Kong-based firm Hutchison Whampoa has opened a container port in Freeport.
The Bahamian Parliament approved legislation in 1993 that extended most Freeport
tax and duty exemptions through 2054.
The Bahamas offers attractive features to the potential
investor: a stable democratic environment, relief from personal and corporate
income taxes, timely repatriation of corporate profits, proximity to the United
States with extensive air and telecommunications links, and a good pool of skilled
professional workers. The Government of The Bahamas welcomes foreign investment
in tourism and banking and has declared an interest in agricultural and industrial
investments to generate local employment, particularly in white-collar or skilled
jobs. Despite its interest in foreign investment to diversify the economy, the
Bahamian Government responds to local concerns about foreign competition and tends
to protect Bahamian business and labor interests. As a result of domestic resistance
to foreign investment and high labor costs, growth can stagnate in sectors which
the government wishes to diversify.
country's infrastructure is best developed in the principal cities of Nassau and
Freeport, where there are relatively good paved roads and international airports.
Electricity is generally reliable, although many businesses have their own backup
generators. In Nassau, there are three daily newspapers, several weeklies, and
international newspapers available for sale. There also are six radio stations.
Both Nassau and Freeport have a television station. Cable TV and satellite also
are available locally and provide most American programs with some Canadian and
The best U.S. export opportunities remain in the traditional
areas of foodstuffs and manufactured goods: vehicles and automobile parts; hotel,
restaurant, and medical supplies; and computers and electronics. Bahamian tastes
in consumer products roughly parallel those in the United States. Merchants in
southern Florida have found it profitable to advertise in Bahamian publications.
Most imports are subject to high but nondiscriminatory tariffs.
The Bahamas has strong bilateral relationships with the United
States and the United Kingdom, represented by an ambassador in Washington and
High Commissioner in London. The Bahamas also associates closely with other nations
of the Caribbean Community (CARICOM). The Bahamas has an ambassador to Haiti and
works closely with the United States and CARICOM on political and migration issues
related to Haiti. The Bahamas has diplomatic relations with Cuba, including embassies
in each other’s capitals. A repatriation agreement was signed with Cuba in 1996,
and there are commercial and cultural contacts between the two countries. The
Bahamas also enjoys a strengthening relationship with China. The Commonwealth
of The Bahamas became a member of the United Nations in 1973 and the Organization
of American States in 1982.
holds membership in a number of international organizations: the UN and some specialized
and related agencies, including Food and Agriculture Organization (FAO), International
Civil Aviation Organization (ICAO), and the International Labor Organization (ILO);
International Monetary Fund (IMF); International Telecommunication Union (ITU);
World Bank; World Meteorological Organization (WMO); World Health Organization
(WHO); OAS and related agencies, including Inter-American Development Bank (IDB),
Caribbean Development Bank (CDB), and Pan-American Health Organization (PAHO);
the Caribbean Community (CARICOM), excluding its Common Market; the International
Criminal Police Organization (INTERPOL); Universal Postal Union (UPU); International
Maritime Organization (IMO); World Intellectual Property Organization (WIPO);
and obtained observer status in the World Trade Organization (WTO) in 2001.
The United States historically has had close economic and commercial
relations with The Bahamas. The countries share ethnic and cultural ties, especially
in education, and The Bahamas is home to approximately 30,000 American residents.
In addition, there are about 110 U.S.-related businesses in The Bahamas and, in
2005, 87% of the 5 million tourists visiting the country were American.
a neighbor, The Bahamas and its political stability are especially important to
the United States. The U.S. and the Bahamian Government have worked together on
reducing crime and reforming the judiciary. With the closest island only 45 miles
from the coast of Florida, The Bahamas often is used as a gateway for drugs and
illegal aliens bound for the United States. The United States and The Bahamas
cooperate closely to handle these threats. U.S. assistance and resources have
been essential to Bahamian efforts to mitigate the persistent flow of illegal
narcotics and migrants through the archipelago. The United States and The Bahamas
also actively cooperate on law enforcement, civil aviation, marine research, meteorology,
and agricultural issues. The U.S. Navy operates an underwater research facility
on Andros Island.
The Department of
Homeland Security’s Bureau of Customs and Border Protection maintains "preclearance"
facilities at the airports in Nassau and Freeport. Travelers to the U.S. are interviewed
and inspected before departure, allowing faster connection times in the U.S.
Ambassador--John D. Rood
Chief of Mission--Brent Hardt
Management Officer--David Elmo
Political-Economic Section Chief--Daniel O’Connor
Embassy is located at 42 Queen Street, Nassau (tel. 242-322-1181; telex 20-138);
the local postal address is P.O. Box N-8197, Nassau, The Bahamas.
U.S. Department of Commerce
Office of Latin America and the Caribbean
14th and Constitution,
Washington, DC 20230
Tel: 202-482-0704; 800-USA-TRADE
Caribbean/Latin American Action
N Street, NW, Suite 310
Washington, DC 20036
AND BUSINESS INFORMATION
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Consular Information Sheets exist for all countries and include information
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