OFFICIAL NAME:
Commonwealth of The Bahamas

Geography
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.
Climate: Semitropical.

People
Nationality: Noun and adjective--Bahamian(s).
Population (2002): 310,000.
Annual growth rate (2002): 0.77%.
Ethnic groups: African 85%, European 12%, Asian and Hispanic 3%.
Religions: Baptist predominant (32%), Roman Catholic, Anglican, Evangelical Protestants, Methodist, Church of God.
Language: English; some Creole among Haitian groups.
Education: Years compulsory--through age 16. Attendance--95%. Literacy--93%.
Health (2001): Infant mortality rate--17.0/1,000. Life expectancy--71.9 years.
Work force (2000): 157,640; majority employed in the tourism, government, and financial services sectors.

Government
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.
Political parties: Free National Movement (FNM), Progressive Liberal Party (PLP), Coalition for Democratic Reform (CDR).
Suffrage (2000): Universal over 18; 140,000 registered voters.

Economy
GDP (2002): $5.2 billion.
Growth rate (2002): 0.1%.
Per capita GDP (2002): $17,000.
Natural resources: Salt, aragonite, timber.
Agriculture and fisheries (2000; 3% of GDP): Products--vegetables, lobster, fish.
Tourism (2000): 60% of GDP.
Banking (2002): 15% of GDP.
Manufacturing (2000; 3% of GDP): Products--pharmaceuticals, rum.
Trade (2000): Exports ($766.1 million)--salt, aragonite, chemicals, lobster, fruits, vegetables. Major markets--U.S. (50%), U.K., other EU countries, Canada. Imports

($2.28 billion)--foodstuffs and manufactured goods; vehicles and
automobile parts; hotel, restaurant, and medical supplies; computers
and electronics. Major suppliers--U.S. (70%), U.K., other EU countries, Canada.
Note:
Bahamas' export statistics do not include oil transshipments or the
large transactions from the PFC Bahamas (formerly Syntex)
pharmaceutical plant located in the Freeport free trade zone. 

PEOPLE 
Eighty-five
percent of the Bahamian population is of African heritage. About
two-thirds of the population reside on New Providence Island (the
location of Nassau). Many ancestors arrived in the Bahama Islands 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.

School attendance 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 and private primary and
secondary schools amounts to more than 66,000 students. 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. 

HISTORY
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.

The first Royal Governor, a former
pirate named Woodes Rogers, brought law and order to The Bahamas in
1718 when he expelled the buccaneers who had used the islands as
hideouts. During the American Civil War, The Bahamas prospered as a
center of Confederate blockade-running. After World War I, the islands
served as a base for American rumrunners. During World War II, the
Allies centered their flight training and anti-submarine operations for
the Caribbean in The Bahamas. Since then, The Bahamas has developed
into a major tourist and financial services center.

Bahamians achieved
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.

GOVERNMENT 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.

The 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.

The 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.

For 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.

A 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, which won
29 of the 40 seats in the House of Assembly. The FNM now holds seven
seats, while independents hold four seats.

Principal Government Officials
Governor General--Dame Ivy Dumont
Prime Minister--Perry Christie, M.P.
Deputy Prime Minister, and Minister of National Security--Cynthia Pratt
Minister of Foreign Affairs and Public Services--Fred Mitchell
Ambassador to the United States and to the OAS--Joshua Sears
Ambassador to the United Nations--Paulette Bethel
Consul General, Miami--Alma Adams
Consul General, New York--Eldred Bethel

The Bahamas 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 767 Third Ave., 9th Floor, New York, NY 10017 (tel:
212-421-6925/27), and in Miami at Suite 818, Ingraham Building, 25 SE
Second Ave., Miami, FL 33131 (tel: 305-373-6295/96).

ECONOMY 
The
Bahamas is largely an import service economy; its economy is almost
entirely dependent on tourism and financial services to generate
foreign exchange earnings. Tourism alone provides an estimated 60% of
the gross domestic product (GDP) and employs about half the Bahamian
work force. In 2002, more than 4 million tourists visited The Bahamas,
83% of them 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 principal focus of the Ingraham
administration was economic development and job creation. Many of the
Ingraham government's policies were aimed at improving the image of The
Bahamas and making it an attractive place for foreigners to invest. The
PLP government has continued moves to attract investment. Considerable
progress has been made in rebuilding the infrastructure, revitalizing
the tourism industry, and attracting new investment to The Bahamas. A
good start has been made to mitigate crime and provide for social
needs. The Bahamian economy, due to its heavy dependence on U.S.
tourism, is deeply affected by U.S. economic performance.

Economic challenges facing the
Bahamas are to privatize The Bahamas' costly, inefficient national
corporations, provide job retraining for hundreds of workers who will
be affected by the change, and to continue creating jobs for new
entries in the employment market. Privatization of government assets
has lagged; for example, the expected selloff of Batelco has
experienced repeated delays. Currently, Bahamians do not pay income or
sales taxes. Most government revenue is derived from high tariffs and
import fees. A major challenge for Bahamians will be to prepare for
hemispheric free trade. 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). The
advantages may be hard for the government to sell since The Bahamas
exports so little.

A major contribution to the recent
growth in the overall Bahamian economy is Sun International's Atlantis
Resort and Casino, which took over the former Paradise Island Resort
and has provided a much needed boost to the economy. In a 2003
agreement, the Kerzner Group agreed to a $600-million expansion of the
Atlantis resort complex that is expected to add 3,000 new jobs and $4.4
billion to the Bahamian economy in the coming years. In addition, the
Bahamian Government sold offshore exploration licenses to Kerr-McGee
Group to search for oil. 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, and
Canada. The primary purpose of the trips was to restore the reputation
of The Bahamas in these markets. 

Financial 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 2002, the government had licensed 301 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. Since enactment of new
regulations, many of the IBCs have closed shop in The Bahamas. As a
result, the number of IBCs declined to 45,000 in 2002.
However, overall employment in the banking industry increased from
4,181 persons in 1999 to 4,586 persons in 2001. 

Agriculture and fisheries
industry together account for 5% 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. 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.

The 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 with other Caribbean states.

The Bahamas has a few
notable industrial firms: the Freeport pharmaceutical firm, PFC Bahamas
(formerly Syntex), which recently streamlined its production and was
purchased by the Swiss pharmaceutical firm Roche; 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.

The Hawksbill 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.

Business Environment
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.

The 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 two daily
newspapers, three weeklies, and several 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 European channels.

Areas of Opportunity
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. With approximately 85% of the population of primarily
African descent, there is a large and growing market in the Bahamas for
"ethnic" personal care products. Merchants in southern Florida have
found it profitable to advertise in Bahamian publications. Most imports
in this sector are subject to high but nondiscriminatory tariffs.

FOREIGN RELATIONS 
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 in 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, although not with resident
ambassadors. A repatriation agreement was signed with Cuba in 1996, and
there are commercial and cultural contacts between the two countries.
The Commonwealth of The Bahamas became a member of the United Nations
in 1973 and the Organization of American States in 1982.

The Bahamas 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.

U.S.-BAHAMIAN RELATIONS 
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
7,000 American residents. In addition, there are about 110 U.S.-related
businesses in The Bahamas and, in 2002, some 83% of the 4 million
tourists visiting the country were American.

As 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 Bahamas hosts U.S.
preclearance facilities (Department of Homeland
Security's Immigration and Customs Enforcement; and Agriculture)
for travelers to the United States at international airports in Nassau
and Freeport.

Principal U.S. Officials
Ambassador--John D. Rood
Deputy Chief of Mission--Robert Witajewski
Management Officer--Kay Crawford
Consul--Abdelnour Zaiback
Political-Economic Section Chief--Michael Taylor
Public Affairs Officer--Michael Taylor 

The U.S. 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.

Other Contact Information
U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution, NW
Washington, DC 20230
Tel: 202-482-0704; 800-USA-TRADE
Fax: 202-482-0464

Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: 202-466-7464
Fax: 202-822-0075

TRAVEL AND BUSINESS INFORMATION
The
U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also are
available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad, are
on the Internet and hard copies can be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning
Americans traveling abroad may be obtained from the Office of Overseas
Citizens Services at (202) 647-5225. For after-hours emergencies,
Sundays and holidays, call 202-647-4000.

The National Passport Information Center
(NPIC) is the U.S. Department of State's single, centralized public
contact center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.

Travelers can check the latest health
information with the U.S. Centers for Disease Control and Prevention in
Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web
site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations or
requirements, and advice on food and drinking water safety for regions
and countries. A booklet entitled Health Information for International
Travel (HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa
requirements, currency and customs regulations, legal holidays, and
other items of interest to travelers also may be obtained before your
departure from a country's embassy and/or consulates in the U.S. (for
this country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register their travel via the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


Tags: bahamas,


See Other Bahamas Articles...