The Bahamas stands out among the Commonwealth Caribbean nations because of its relative wealth and prosperity, political stability, and close proximity to the United States. The Bahamas also bears the distinction of being the first of the Caribbean islands discovered by Columbus in 1492 on his first transatlantic voyage in search of a new route to India. Several islands in the Bahamas have been named as Columbus's first landing site in the Caribbean, but until very recently, Watling Island was the most widely accepted location; in 1926 it was renamed San Salvador, the name bestowed by Columbus himself. In 1986, however, after an extensive five-year investigation, a National Geographic Society team announced that Samana Cay, a small isolated island in the far eastern Bahamas, was the most probable location of Columbus's first landfall.
Upon his arrival, Columbus encountered natives known as Lucayans, related to the Arawak Indians. Within a quarter of a century, however, the Lucayans had been decimated, the result of diseases brought by the Europeans and of having been forced to work in the mines of Hispaniola (the island containing present-day Haiti and the Dominican Republic). For the next century, the Bahamas was a forgotten colony. Attention was focused instead on the mineral wealth of the other Caribbean islands.
The first permanent settlement was not established until 1649, when Puritans from the English colony of Bermuda founded Eleuthera, which in Greek means "place of freedom." The colonists, known as Eleutheran Adventurers, set out to establish a colony where they could practice their religion freely, as in the colonies settled by the Pilgrims in New England. In 1666 other English settlers established a colony on New Providence and founded Charlestown, which was renamed Nassau near the end of the seventeenth century. Throughout the seventeenth century, the islands served as a favorite base for pirates, but after the era of piracy came to a close in 1718, commerce was restored to the settlement.
British loyalists and their slaves arrived from the mainland colonies in the wake of the British defeat in the American Revolution. In the 1780s, the population of New Providence tripled, and the first substantial settlement was made on Great Abaco Island. Cotton plantations were established as the southern life of the North American mainland colonies was reproduced in the Bahamas. However, the Abolition of Slavery Act of 1833 and the termination of post-abolition apprenticeships and indentured servanthood in 1838 marked the end of slavery in the Bahamas. The Bahamian economy prospered during the United States Civil War, as Nassau served as an important base for blockade-running by the Confederate States. The war's end, however, set in motion an economic tailspin that lasted for the next half-century. Little economic development occurred other than in the areas of sponging, pineapple cultivation, and tourism.
The passage of the Volstead Act (Prohibition Act) by the United States in 1919 was a bonanza for the Bahamas. The islands served as a base for United States prohibition runners, and the port of Nassau became congested once again. The introduction of commercial aircraft in the 1930s enabled the Bahamas tourism sector to develop as a mainstay of the nation's economy. The development of tourism helped mitigate the combined impact of the United States repeal of prohibition in 1933 and a marine disease in 1938 that devastated the sponging industry. During World War II, the Bahamas prospered as Britain established two air force bases on the islands; the Royal Air Force set up a bomber base to ferry new airplanes to European combat zones and to operate a training school for flight and antisubmarine operations in the Caribbean.
After World War II, the Bahamas developed economically and politically. The nation began to exploit its tourism sector more fully; by the end of the 1940s, tourism had become the principal business. In the 1960s, the nation also developed into an international finance center because of taxation and foreign capital movement legislation in the United States and Western Europe. In 1987 tourism and banking remained the two most important economic sectors in the Bahamas.
The Bahamas also underwent a major political transformation in the postwar era. The first political parties and trade union federations were founded in the 1950s. In 1964, after more than two centuries of British colonial rule, constitutional changes were negotiated at a conference in London; a new constitution replaced the nation's old representative government with a premier (the preindependence title for prime minister) and a cabinet. In 1967 a bicameral legislature was established, and the first independent government was elected. Full internal self-government was achieved with the signing of the 1969 constitution; and the name of the colony was officially changed to the Commonwealth of the Bahamas. A final constitutional conference was held in 1972, paving the way for national independence. On July 10, 1973, the new independence Constitution was presented to Prime Minister Lynden O. Pindling by Prince Charles on behalf of Queen Elizabeth II; with that, the Bahamas became a sovereign independent nation.
Wednesday, December 19, 2007
Geography
The Bahamas is an archipelago of approximately 700 flat, lowlying islands in the western Atlantic Ocean. It extends from eighty kilometers east of Florida to eighty kilometers northeast of Cuba. In addition to the United States and Cuba, neighbors of the Bahamas include Haiti and the Turks and Caicos Islands; both are located to the southeast of the Bahamas. The Tropic of Cancer runs through the middle of the archipelago, passing across the lower part of Great Exuma Island and the upper part of Long Island. Although the total land area of the archipelago is 13,934 square kilometers, slightly larger than New Jersey and Connecticut combined, the islands are sprawled over an area of approximately 259,000 square kilometers.
The islands are surface projections of two oceanic banks, the Little Bahama Bank and the Great Bahama Bank. The highest point is only sixty-three meters above sea level on Cat Island; the island of New Providence, where the capital city of Nassau is located, reaches a maximum elevation of only thirty-seven meters. The land on the Bahamas has a foundation of fossil coral, but much of the rock is oolitic limestone; the stone is derived from the disintegration of coral reefs and seashells. The land is primarily either rocky or mangrove swamp. Low scrub covers much of the surface area. Timber is found in abundance on four of the northern islands: Grand Bahama, Great Abaco, New Providence, and Andros. On some of the southern islands, low-growing tropical hardwood flourishes. Although some soil is very fertile, it is also very thin. Only a few freshwater lakes and just one river, located on Andros Island, are found in the Bahamas.
The climate of the archipelago is semitropical and has two seasons, summer and winter. During the summer, which extends from May through November, the climate is dominated by warm, moist tropical air masses moving north through the Caribbean. Midsummer temperatures range from 21o C to 34o C with a relative humidity of 60 to 100 percent. In winter months, extending from December through April, the climate is affected by the movement of cold polar masses from North America. Temperatures during the winter months range from 15o C to 24o C.
Yearly rainfall averages 132 centimeters and is usually concentrated in the May-June and September-October periods. Rainfall often occurs in short-lived, fairly intense showers accompanied by strong gusty winds, which are then followed by clear skies.
Winds are predominantly easterly throughout the year but tend to become northeasterly from October to April and southeasterly from May to September. These winds seldom exceed twenty-four kilometers per hour except during hurricane season. Although the hurricane season officially lasts from June to November, most hurricanes in the Bahamas occur between July and October; as of late 1987, the last one to strike was Hurricane David in September 1979. Damage was estimated at US$1.8 million and mainly affected agricultural products. The most intense twentieth-century hurricane to strike the Bahamas was in 1929; winds of up to 225 kilometers per hour were recorded. Many lives were lost, and there was extensive damage to buildings, homes, and boats.
The islands are surface projections of two oceanic banks, the Little Bahama Bank and the Great Bahama Bank. The highest point is only sixty-three meters above sea level on Cat Island; the island of New Providence, where the capital city of Nassau is located, reaches a maximum elevation of only thirty-seven meters. The land on the Bahamas has a foundation of fossil coral, but much of the rock is oolitic limestone; the stone is derived from the disintegration of coral reefs and seashells. The land is primarily either rocky or mangrove swamp. Low scrub covers much of the surface area. Timber is found in abundance on four of the northern islands: Grand Bahama, Great Abaco, New Providence, and Andros. On some of the southern islands, low-growing tropical hardwood flourishes. Although some soil is very fertile, it is also very thin. Only a few freshwater lakes and just one river, located on Andros Island, are found in the Bahamas.
The climate of the archipelago is semitropical and has two seasons, summer and winter. During the summer, which extends from May through November, the climate is dominated by warm, moist tropical air masses moving north through the Caribbean. Midsummer temperatures range from 21o C to 34o C with a relative humidity of 60 to 100 percent. In winter months, extending from December through April, the climate is affected by the movement of cold polar masses from North America. Temperatures during the winter months range from 15o C to 24o C.
Yearly rainfall averages 132 centimeters and is usually concentrated in the May-June and September-October periods. Rainfall often occurs in short-lived, fairly intense showers accompanied by strong gusty winds, which are then followed by clear skies.
Winds are predominantly easterly throughout the year but tend to become northeasterly from October to April and southeasterly from May to September. These winds seldom exceed twenty-four kilometers per hour except during hurricane season. Although the hurricane season officially lasts from June to November, most hurricanes in the Bahamas occur between July and October; as of late 1987, the last one to strike was Hurricane David in September 1979. Damage was estimated at US$1.8 million and mainly affected agricultural products. The most intense twentieth-century hurricane to strike the Bahamas was in 1929; winds of up to 225 kilometers per hour were recorded. Many lives were lost, and there was extensive damage to buildings, homes, and boats.
Population
According to the 1980 census, the Bahamas had a population of 209,505. Unofficial estimates in mid-1986 placed the population at 235,000. Census data indicated that 64.6 percent of the population lived on the main island of New Providence and another 15.8 percent on Grand Bahama. The remaining inhabitants were spread out among the numerous outlying islands known as the Family Islands or Outer Islands. Between 1973 and 1983, the average annual population growth rate in the Bahamas was 2.1 percent; however, this rate masked wide variations across the islands. New Providence and Grand Bahama showed major increases of 32.8 percent and 27.6 percent, respectively; modest increases were also experienced in Great Abaco Island (12.6 percent) and in Eleuthera, Harbour Island, and Spanish Wells as a group (11.6 percent).
Nevertheless, a majority of the islands actually experienced a decline in their populations. Prominent losses were recorded in Acklins Island (34.2 percent), Ragged Island (29.8 percent), and Crooked Island (25 percent). Census figures confirmed not only a sizable interisland migration pattern to New Providence and Grand Bahama but also an intraisland migration from the older city areas to the suburban areas. The latter trend was particularly evident in New Providence.
Ethnically, some 85 percent of the population was black. Most were descendants of slaves imported directly from North Africa or brought by British loyalists who escaped from the North American colonies at the conclusion of the American Revolution. Approximately 15 percent of the population was white, mainly originating from early British and North American settlers, especially from the Carolinas, New York, and Virginia. Included in the 15 percent was a small Greek community, the descendants of Greeks who came to the Bahamas as sponge fishermen.
A growing number of illegal Haitian immigrants were also found in the Bahamas; according to the United States Department of State's Country Reports on Human Rights Practices for 1985, this number was estimated at 20,000 to 40,000. The Haitians primarily filled employment vacancies at the bottom of the Bahamian economy; many were gardeners, domestics, and farm laborers. Although English was the official language of the country, some creole was spoken among these Haitian immigrants. A September 1985 treaty signed between the Bahamas and Haiti legalized the status of undocumented Haitians who had arrived prior to 1981; others were to be repatriated in an orderly and humane manner. In 1986 more than 2,000 were repatriated under the treaty, but the legalization process of Haitians eligible for citizenship had not yet begun.
The Bahamas was predominantly a Christian country. In the late 1980s, the principal denominations were Anglican, Baptist, and Roman Catholic. In addition to the Anglican and Baptist churches, the Protestant presence included Christian Scientist, Church of God, Lutheran, Methodist, Plymouth Brethren, Presbyterian, SeventhDay Adventist, and Jehovah's Witnesses congregations; many of the smaller sects adhered to an evangelical perspective. Small Greek Orthodox and Jewish communities also were present in the Bahamas. Many of the country's independent schools were affiliated with churches and included Anglican, Methodist, and Roman Catholic institutions.
Nevertheless, a majority of the islands actually experienced a decline in their populations. Prominent losses were recorded in Acklins Island (34.2 percent), Ragged Island (29.8 percent), and Crooked Island (25 percent). Census figures confirmed not only a sizable interisland migration pattern to New Providence and Grand Bahama but also an intraisland migration from the older city areas to the suburban areas. The latter trend was particularly evident in New Providence.
Ethnically, some 85 percent of the population was black. Most were descendants of slaves imported directly from North Africa or brought by British loyalists who escaped from the North American colonies at the conclusion of the American Revolution. Approximately 15 percent of the population was white, mainly originating from early British and North American settlers, especially from the Carolinas, New York, and Virginia. Included in the 15 percent was a small Greek community, the descendants of Greeks who came to the Bahamas as sponge fishermen.
A growing number of illegal Haitian immigrants were also found in the Bahamas; according to the United States Department of State's Country Reports on Human Rights Practices for 1985, this number was estimated at 20,000 to 40,000. The Haitians primarily filled employment vacancies at the bottom of the Bahamian economy; many were gardeners, domestics, and farm laborers. Although English was the official language of the country, some creole was spoken among these Haitian immigrants. A September 1985 treaty signed between the Bahamas and Haiti legalized the status of undocumented Haitians who had arrived prior to 1981; others were to be repatriated in an orderly and humane manner. In 1986 more than 2,000 were repatriated under the treaty, but the legalization process of Haitians eligible for citizenship had not yet begun.
The Bahamas was predominantly a Christian country. In the late 1980s, the principal denominations were Anglican, Baptist, and Roman Catholic. In addition to the Anglican and Baptist churches, the Protestant presence included Christian Scientist, Church of God, Lutheran, Methodist, Plymouth Brethren, Presbyterian, SeventhDay Adventist, and Jehovah's Witnesses congregations; many of the smaller sects adhered to an evangelical perspective. Small Greek Orthodox and Jewish communities also were present in the Bahamas. Many of the country's independent schools were affiliated with churches and included Anglican, Methodist, and Roman Catholic institutions.
Education
Education in the Bahamas was mandatory between the ages of five and fourteen. In early 1987, the Ministry of Education was responsible for 226 schools, 83.2 percent of which were run by the government and 16.8 percent of which were independent. New Providence claimed 38 government schools and 13 independent schools; the Family Islands and Grand Bahama had 150 government schools and 25 independent schools. Schools were classified into three major categories: primary schools for children ages five to ten; secondary schools for ages eleven to seventeen; and all-age schools. In general, schools in the Family Islands were for all ages because of long distances to residences; in New Providence and Grand Bahama, students were most often separated by age. In 1985 the Bahamas reported a school population of 60,355, approximately 77 percent of whom attended government-run schools and 23 percent, private schools. Education was free in government schools. Many independent secondary schools were referred to as colleges.
Since the 1960s, the government has made a substantial effort to improve the country's education system. Government expenditures on education rose from 10.7 percent of total government expenditures in 1955 to a high of 25 percent in 1974 but declined to 17.4 percent in 1984. The ratios of students to staff improved steadily from thirty-four to one in 1976 to twenty-one to one in 1983. The literacy rate in 1984 was estimated at 93 percent. Primary-school enrollment increased from 78 percent in 1970 to 99 percent in 1983.
Despite these significant achievements, educational problems remained. The Country Reports on Human Rights Practices for 1985 indicated that there was "a weakening of education in the public school system as a result of shortages of teachers, equipment, and supplies as well as the physical deterioration of many schools." The Ministry of Education itself admitted that the results of national tests taken by students in 1985 demonstrated "serious deficiencies" throughout the education system. In the mid1980s , the government increased emphasis on technical and vocational training.
The College of the Bahamas opened its doors in 1974; the government-owned institution offered a two- or three-year program leading to an associate degree in one of six academic divisions. In the spring of 1986, the college reported an enrollment of 1,834. The college offered programs in conjunction with the University of Miami. In addition, since the 1960s the Bahamas also had been associated directly with the University of the West Indies (UWI), which, with its three campuses in Barbados, Jamaica, and Trinidad and Tobago, served much of the English-speaking Caribbean. The UWI also had a hotel and tourism management program in the Bahamas. In addition to these local and regional colleges, many Bahamians attended institutions of higher learning in the United States, Canada, and Britain.
Since the 1960s, the government has made a substantial effort to improve the country's education system. Government expenditures on education rose from 10.7 percent of total government expenditures in 1955 to a high of 25 percent in 1974 but declined to 17.4 percent in 1984. The ratios of students to staff improved steadily from thirty-four to one in 1976 to twenty-one to one in 1983. The literacy rate in 1984 was estimated at 93 percent. Primary-school enrollment increased from 78 percent in 1970 to 99 percent in 1983.
Despite these significant achievements, educational problems remained. The Country Reports on Human Rights Practices for 1985 indicated that there was "a weakening of education in the public school system as a result of shortages of teachers, equipment, and supplies as well as the physical deterioration of many schools." The Ministry of Education itself admitted that the results of national tests taken by students in 1985 demonstrated "serious deficiencies" throughout the education system. In the mid1980s , the government increased emphasis on technical and vocational training.
The College of the Bahamas opened its doors in 1974; the government-owned institution offered a two- or three-year program leading to an associate degree in one of six academic divisions. In the spring of 1986, the college reported an enrollment of 1,834. The college offered programs in conjunction with the University of Miami. In addition, since the 1960s the Bahamas also had been associated directly with the University of the West Indies (UWI), which, with its three campuses in Barbados, Jamaica, and Trinidad and Tobago, served much of the English-speaking Caribbean. The UWI also had a hotel and tourism management program in the Bahamas. In addition to these local and regional colleges, many Bahamians attended institutions of higher learning in the United States, Canada, and Britain.
Health and Welfare
The Bahamas in general had a healthy population in the mid1980s . Substantial progress had been made in the country's health care over the previous two decades, as indicated by several life expectancy indicators. By 1984 the crude death rate had declined to a low of 5.1 per 1,000 inhabitants, and life expectancy at birth was estimated at 69 years. The infant mortality rate in 1985 was measured at a low 27.5 per 1,000 live births. Specific healthrelated data revealed a 9.5-percent increase in the number of hospital beds from 1974 to 1983; the ratio of population to hospital beds also improved from 260 to 1 to 234 to 1 over the same period. From 1970 to 1983, the ratios of population to doctors and nurses improved from 1,630 to 1 to 1,018 to 1 and from 260 to 1 to 234 to 1, respectively.
The Ministry of Health was responsible for setting national health policies and for implementing health programs. A tiered network of private and public health facilities made up the national health sector; referral linkages existed among the different facilities. The country's three government run hospitals were the Princess Margaret Hospital in Nassau, a 484-bed general hospital; the Sandilands Rehabilitation Centre on New Providence, consisting of a 158-bed geriatric facility and a 259-bed psychiatric facility; and the Rand Memorial Hospital on Grand Bahama, a 74-bed general hospital. In addition, Rassin Hospital, in Nassau, was a privately run general hospital with twenty-six beds. In the Family Islands, primary health care was delivered through a network of public health centers and clinics staffed by physicians, dentists, community nurses, midwives, and health aides. In 1984 the Family Islands' nineteen health districts contained twelve health centers, thirty-four main clinics, and forty-six satellite clinics staffed by nineteen physicians, three dentists, and eighty-three nurses. Patients in the Family Islands requiring additional medical assistance were flown to Princess Margaret Hospital. Most Bahamian doctors and dentists received their degrees from schools in Britain, Canada, or the United States.
In 1982 the major causes of death in the Bahamas were, in descending order of incidence: cancer, heart disease, accidents and violence, bronchitis, emphysema and asthma, cerebrovascular diseases, and diseases originating in the perinatal period. A comprehensive system of inoculation was responsible for the nonoccurrence of many infectious and parasitic diseases, including typhoid, poliomyelitis, diphtheria, pertussis, and tetanus. Some cases of tuberculosis, hepatitis, and malaria were reported among Haitian refugees living in close quarters, but no major outbreaks had occurred in the general population. According to a 1986 World Bank (see Glossary) report, no major malnutrition problems were recorded. The report also indicated that the country had begun to experience diseases normally associated with developed countries, such as diabetes and hypertension. The Ministry of Health reported fifty-six cases of acquired immune deficiency syndrome in 1985 and thirty-four cases in the first half of 1986.
Most of the islands had potable drinking water from underground wells. Access to piped water was highly uneven. Estimates in 1976 indicated that all urban residents, but only 13 percent of the rural population, had access to such a service. New Providence experienced particular difficulty in satisfying its fresh water needs. It supplemented its ten underground well fields with distilled sea water and received fresh water shipped from nearby Andros Island. Nearly 20 percent of New Providence's fresh water in 1983 was barged in from Andros Island. Septic tanks and drainage pits required waste water removal in some lowland areas.
In the late 1980s, the country faced a growing housing shortage. A 1986 World Bank study noted that "new housing production over the past decade has been below required levels, creating a backlog of housing demand, particularly for the lower income groups." The report also noted that considerable rehabilitation on existing dwellings was needed. Forty percent of all housing was in average to poor condition, and two out of three households did not have water piped into the dwelling. The government became increasingly involved in housing via this rehabilitation effort, new construction of urban public housing, private construction incentive grants, and construction loans.
In 1974 the government introduced the country's first national social insurance program; the system provided benefits to qualified contributors for retirement, disability, sickness, maternity, funeral expenses, industrial benefits, and survivor's assistance. Noncontributory assistance was available for old-age pensions, survivor's benefits, and disability. Total contributions rose steadily from a low of US$700,000 in 1975 to an estimated US$11.3 million in 1982. Most of these benefits were paid out for noncontributory old-age pensions.
The Ministry of Health was responsible for setting national health policies and for implementing health programs. A tiered network of private and public health facilities made up the national health sector; referral linkages existed among the different facilities. The country's three government run hospitals were the Princess Margaret Hospital in Nassau, a 484-bed general hospital; the Sandilands Rehabilitation Centre on New Providence, consisting of a 158-bed geriatric facility and a 259-bed psychiatric facility; and the Rand Memorial Hospital on Grand Bahama, a 74-bed general hospital. In addition, Rassin Hospital, in Nassau, was a privately run general hospital with twenty-six beds. In the Family Islands, primary health care was delivered through a network of public health centers and clinics staffed by physicians, dentists, community nurses, midwives, and health aides. In 1984 the Family Islands' nineteen health districts contained twelve health centers, thirty-four main clinics, and forty-six satellite clinics staffed by nineteen physicians, three dentists, and eighty-three nurses. Patients in the Family Islands requiring additional medical assistance were flown to Princess Margaret Hospital. Most Bahamian doctors and dentists received their degrees from schools in Britain, Canada, or the United States.
In 1982 the major causes of death in the Bahamas were, in descending order of incidence: cancer, heart disease, accidents and violence, bronchitis, emphysema and asthma, cerebrovascular diseases, and diseases originating in the perinatal period. A comprehensive system of inoculation was responsible for the nonoccurrence of many infectious and parasitic diseases, including typhoid, poliomyelitis, diphtheria, pertussis, and tetanus. Some cases of tuberculosis, hepatitis, and malaria were reported among Haitian refugees living in close quarters, but no major outbreaks had occurred in the general population. According to a 1986 World Bank (see Glossary) report, no major malnutrition problems were recorded. The report also indicated that the country had begun to experience diseases normally associated with developed countries, such as diabetes and hypertension. The Ministry of Health reported fifty-six cases of acquired immune deficiency syndrome in 1985 and thirty-four cases in the first half of 1986.
Most of the islands had potable drinking water from underground wells. Access to piped water was highly uneven. Estimates in 1976 indicated that all urban residents, but only 13 percent of the rural population, had access to such a service. New Providence experienced particular difficulty in satisfying its fresh water needs. It supplemented its ten underground well fields with distilled sea water and received fresh water shipped from nearby Andros Island. Nearly 20 percent of New Providence's fresh water in 1983 was barged in from Andros Island. Septic tanks and drainage pits required waste water removal in some lowland areas.
In the late 1980s, the country faced a growing housing shortage. A 1986 World Bank study noted that "new housing production over the past decade has been below required levels, creating a backlog of housing demand, particularly for the lower income groups." The report also noted that considerable rehabilitation on existing dwellings was needed. Forty percent of all housing was in average to poor condition, and two out of three households did not have water piped into the dwelling. The government became increasingly involved in housing via this rehabilitation effort, new construction of urban public housing, private construction incentive grants, and construction loans.
In 1974 the government introduced the country's first national social insurance program; the system provided benefits to qualified contributors for retirement, disability, sickness, maternity, funeral expenses, industrial benefits, and survivor's assistance. Noncontributory assistance was available for old-age pensions, survivor's benefits, and disability. Total contributions rose steadily from a low of US$700,000 in 1975 to an estimated US$11.3 million in 1982. Most of these benefits were paid out for noncontributory old-age pensions.
Economy
In the mid-1980s, the Bahamas was classified as an upper middle-income developing country and ranked among the wealthiest nations in the Caribbean region. Tourism was the nation's primary economic activity. In 1986 the World Bank reported that tourism directly and indirectly accounted for approximately 50 percent of employment. Tourism's share of the gross domestic product was estimated at 70 percent by the United States Department of Commerce.
In order to lessen the economy's dependency on tourism, the government has followed a policy of diversification since the 1970s, emphasizing development in the industrial and agricultural sectors. Success, however, has been limited. The nation experienced setbacks in the early 1980s with the closing of steel and cement plants and oil refineries. Because industries locating in the Bahamas tended to be capital intensive, the industrial sector's share of the labor force was estimated at just 6 percent in 1979. Industry's share of GDP was estimated at about 10 percent in the mid-1980s. The agricultural sector (including fishing) also employed only about 6 percent of the labor force in the early 1980s. Despite various programs to boost production, the World Bank estimated that agriculture in the Bahamas accounted for less than 5 percent of GDP in 1986. The nation's banking and finance sector experienced significant growth in the 1970s and 1980s. This sector contributed approximately 7 percent to GDP in the mid-1980s but employed only about 3,000 Bahamians.
The overall performance of the economy during the past several decades has been positive. In the 1960s, the country recorded robust economic growth; growth rates averaged 9 percent annually as direct foreign investment spurred the development of tourism. Economic performance in the 1970s was not as successful. The international economic recession caused a reduction in investment, especially after the 1973 and 1979 oil price shocks. Bahamian independence in 1973 also caused a certain amount of uncertainty, contributing further to reduced foreign investment. Toward the end of the decade, however, economic performance improved, led by growth in tourism; investment soon followed suit, resulting in a boom in the construction sector and an increase in employment levels.
The economy continued to perform well in the early and mid1980s . Real GDP growth in the 1980-84 period averaged 3 percent. The only notable setback occurred in 1981, when recession in the United States resulted in a decline in stopover visitors (hotel occupants rather than cruise ship or day visitors) and the manufacturing sector was hurt by the closing of several plants; real GDP for that year fell by 9 percent. Tourism recovered quickly, however. In 1982 about 1.7 million foreign tourists visited the Bahamas, and by 1986 that figure had grown to 3 million. GDP was US$1.8 billion in 1985, and per capita GDP was estimated at US$7,822.
The nation was not without economic problems. Growth and development were not uniform throughout the country. Most development occurred in New Providence and Grand Bahama, causing significant migration from the Family Islands to these two urban centers. This migration strained the infrastructure and social sectors of New Providence and Grand Bahama. The government also was faced with the heavy burden of spreading facilities and services throughout the Family Islands. A second problem of the Bahamian economy was its dependence on a single sector, tourism; that sector's well-being was in turn affected by the economy in the United States, the source of most tourists. To reduce this dependency, the government actively pursued a policy of diversification. Finally, the country was afflicted with the problem of structural unemployment; in 1986 unemployment levels were estimated in the 17- to 22-percent range. Industrial development tended to be capital intensive because of a high wage structure and a scarcity of technically skilled labor.
In order to lessen the economy's dependency on tourism, the government has followed a policy of diversification since the 1970s, emphasizing development in the industrial and agricultural sectors. Success, however, has been limited. The nation experienced setbacks in the early 1980s with the closing of steel and cement plants and oil refineries. Because industries locating in the Bahamas tended to be capital intensive, the industrial sector's share of the labor force was estimated at just 6 percent in 1979. Industry's share of GDP was estimated at about 10 percent in the mid-1980s. The agricultural sector (including fishing) also employed only about 6 percent of the labor force in the early 1980s. Despite various programs to boost production, the World Bank estimated that agriculture in the Bahamas accounted for less than 5 percent of GDP in 1986. The nation's banking and finance sector experienced significant growth in the 1970s and 1980s. This sector contributed approximately 7 percent to GDP in the mid-1980s but employed only about 3,000 Bahamians.
The overall performance of the economy during the past several decades has been positive. In the 1960s, the country recorded robust economic growth; growth rates averaged 9 percent annually as direct foreign investment spurred the development of tourism. Economic performance in the 1970s was not as successful. The international economic recession caused a reduction in investment, especially after the 1973 and 1979 oil price shocks. Bahamian independence in 1973 also caused a certain amount of uncertainty, contributing further to reduced foreign investment. Toward the end of the decade, however, economic performance improved, led by growth in tourism; investment soon followed suit, resulting in a boom in the construction sector and an increase in employment levels.
The economy continued to perform well in the early and mid1980s . Real GDP growth in the 1980-84 period averaged 3 percent. The only notable setback occurred in 1981, when recession in the United States resulted in a decline in stopover visitors (hotel occupants rather than cruise ship or day visitors) and the manufacturing sector was hurt by the closing of several plants; real GDP for that year fell by 9 percent. Tourism recovered quickly, however. In 1982 about 1.7 million foreign tourists visited the Bahamas, and by 1986 that figure had grown to 3 million. GDP was US$1.8 billion in 1985, and per capita GDP was estimated at US$7,822.
The nation was not without economic problems. Growth and development were not uniform throughout the country. Most development occurred in New Providence and Grand Bahama, causing significant migration from the Family Islands to these two urban centers. This migration strained the infrastructure and social sectors of New Providence and Grand Bahama. The government also was faced with the heavy burden of spreading facilities and services throughout the Family Islands. A second problem of the Bahamian economy was its dependence on a single sector, tourism; that sector's well-being was in turn affected by the economy in the United States, the source of most tourists. To reduce this dependency, the government actively pursued a policy of diversification. Finally, the country was afflicted with the problem of structural unemployment; in 1986 unemployment levels were estimated in the 17- to 22-percent range. Industrial development tended to be capital intensive because of a high wage structure and a scarcity of technically skilled labor.
Tourism
As already indicated, tourism has been the motor of the Bahamian economy for the past several decades; the nation's geography, including its climate, natural beauty, and proximity to the United States, have made it a prime tourist spot. Tourism is the major determinant of the well-being of the Bahamian economy and has maintained steady growth since World War II. The government has successfully implemented policies to increase private confidence and investment in the sector. It has transformed tourism into a year-round industry, overcoming the seasonal fluctuation of demand by aggressively promoting specialized summer tourist attractions. In 1986 the World Bank estimated that the Bahamas accounted for 20 percent of stopover visitors in the Caribbean region as well as having a large share of cruise ship passenger arrivals.
The Bahamas achieved record high levels of foreign visitors in 1985 and 1986 with 2.6 and 3 million visitors, respectively. The statistical breakdown of foreign arrivals in 1985 included 52 percent stopover visitors, 43 percent cruise ship arrivals, and 5 percent day visitors. Total tourist expenditures in 1985 amounted to US$870 million. Most of the expenditures were attributed to stopover visitors, who accounted for 92 percent of the total in 1984; by contrast, cruise ship passengers accounted for just 6.6 percent of total visitor expenditures in that year.
The major tourist centers were New Providence (Nassau, Cable Beach, and Paradise Island) and Grand Bahama (Freeport). Fiftyeight percent of stopover visitors in 1984 went to New Providence, 25 percent to Grand Bahama, and 17 percent to the Family Islands. Most of the tourist growth in the mid-1980s occurred in New Providence. Grand Bahama experienced a steady decline in tourist arrivals, reaching a five-year low in 1984, whereas the Family Islands had a steady flow of tourists. The average length of stay for stopover visitors had declined substantially from 7.14 days in 1980 to 6.46 days in 1984, reflecting the trend toward short package vacations of three to four days.
The government was actively involved in the tourist sector in the mid-1980s. The government-owned Hotel Corporation of the Bahamas, established in 1974, had seven major hotels (four in Nassau and three in Freeport). All were managed by international hotel management companies. The Hotel Corporation also owned a golf course, a marina, and four casinos (two in New Providence and two in Grand Bahama). In 1983 the corporation completed work on a new 700-room hotel at Cable Beach with a convention center and a casino.
The Ministry of Tourism marketed and monitored tourist services; a World Bank study labeled it one of the most effective tourist ministries in the world. In addition to its headquarters in the Bahamas, the ministry also operated offices in nine cities in the United States, three in Canada, and three in Western Europe. Bahamasair, the national airline, provided the only scheduled interisland air service. Competing with several airlines in the North American market, Bahamasair managed to control over 25 percent of North American routes to the Bahamas.
Since its development after World War II, the tourist industry has been dependent on the North American market. In the early 1980s, this dependency increased further. Between 1980 and 1984, Canada's and Western Europe's percentage share of the market decreased. The major factor in the increased United States share of tourist trade was the strong value of the United States dollar, to which the Bahamian dollar was pegged. Bahamian vacations for Canadians and West Europeans became all the more expensive. This dependency on the United States for tourist receipts made the Bahamian economy quite vulnerable to downturns in the United States economy. A 1986 World Bank study indicated the strong relationship between the performance of the tourism sector and the performance of the United States economy. A decline in the strength of the United States dollar has boosted the Canadian and West European share of the market, but continued benefits along these lines depend on the capability of the Ministry of Tourism to tap those markets effectively. To this end, the ministry maintained offices in Canada and Western Europe.
In late 1986, the government's plans for improvements in the tourist sector included programs to improve marketing and infrastructure and to work toward balanced growth of tourism to the Family Islands. A multimillion-dollar marketing campaign was planned, followed by the launching of a national magazine campaign across North America. Major tourist infrastructure programs included improvements to Nassau International Airport and Nassau Harbour and upgrading of docks and airports in key Family Islands. The government also planned to bring more cruise ships to the Family Islands to tap the potential of these underutilized tourist spots.
The Bahamas achieved record high levels of foreign visitors in 1985 and 1986 with 2.6 and 3 million visitors, respectively. The statistical breakdown of foreign arrivals in 1985 included 52 percent stopover visitors, 43 percent cruise ship arrivals, and 5 percent day visitors. Total tourist expenditures in 1985 amounted to US$870 million. Most of the expenditures were attributed to stopover visitors, who accounted for 92 percent of the total in 1984; by contrast, cruise ship passengers accounted for just 6.6 percent of total visitor expenditures in that year.
The major tourist centers were New Providence (Nassau, Cable Beach, and Paradise Island) and Grand Bahama (Freeport). Fiftyeight percent of stopover visitors in 1984 went to New Providence, 25 percent to Grand Bahama, and 17 percent to the Family Islands. Most of the tourist growth in the mid-1980s occurred in New Providence. Grand Bahama experienced a steady decline in tourist arrivals, reaching a five-year low in 1984, whereas the Family Islands had a steady flow of tourists. The average length of stay for stopover visitors had declined substantially from 7.14 days in 1980 to 6.46 days in 1984, reflecting the trend toward short package vacations of three to four days.
The government was actively involved in the tourist sector in the mid-1980s. The government-owned Hotel Corporation of the Bahamas, established in 1974, had seven major hotels (four in Nassau and three in Freeport). All were managed by international hotel management companies. The Hotel Corporation also owned a golf course, a marina, and four casinos (two in New Providence and two in Grand Bahama). In 1983 the corporation completed work on a new 700-room hotel at Cable Beach with a convention center and a casino.
The Ministry of Tourism marketed and monitored tourist services; a World Bank study labeled it one of the most effective tourist ministries in the world. In addition to its headquarters in the Bahamas, the ministry also operated offices in nine cities in the United States, three in Canada, and three in Western Europe. Bahamasair, the national airline, provided the only scheduled interisland air service. Competing with several airlines in the North American market, Bahamasair managed to control over 25 percent of North American routes to the Bahamas.
Since its development after World War II, the tourist industry has been dependent on the North American market. In the early 1980s, this dependency increased further. Between 1980 and 1984, Canada's and Western Europe's percentage share of the market decreased. The major factor in the increased United States share of tourist trade was the strong value of the United States dollar, to which the Bahamian dollar was pegged. Bahamian vacations for Canadians and West Europeans became all the more expensive. This dependency on the United States for tourist receipts made the Bahamian economy quite vulnerable to downturns in the United States economy. A 1986 World Bank study indicated the strong relationship between the performance of the tourism sector and the performance of the United States economy. A decline in the strength of the United States dollar has boosted the Canadian and West European share of the market, but continued benefits along these lines depend on the capability of the Ministry of Tourism to tap those markets effectively. To this end, the ministry maintained offices in Canada and Western Europe.
In late 1986, the government's plans for improvements in the tourist sector included programs to improve marketing and infrastructure and to work toward balanced growth of tourism to the Family Islands. A multimillion-dollar marketing campaign was planned, followed by the launching of a national magazine campaign across North America. Major tourist infrastructure programs included improvements to Nassau International Airport and Nassau Harbour and upgrading of docks and airports in key Family Islands. The government also planned to bring more cruise ships to the Family Islands to tap the potential of these underutilized tourist spots.
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