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Economy of Grenadine Islands

Banana production employs upwards of 60% of the work force and accounts for 50% of merchandise exports in St. Vincent and the Grenadines, with an emphasis on the main island of St. Vincent. Such reliance on one crop has made the economy vulnerable to fluctuations in banana prices and reduced European Union trade preferences. To combat these vulnerabilities, the Government of St. Vincent and the Grenadines is focused on diversifying its economy away from reliance on bananas. Recently, there has been a parallel reduction in licit agriculture and a rise in marijuana cultivation, making St. Vincent and the Grenadines the largest marijuana producer in the Eastern Caribbean.

In contrast to developments on the main island, tourism in the Grenadines has grown to become a very important part of the economy, and the chief earner of foreign exchange for the country as a whole. The Grenadines have become a favorite of high-end tourism and the focus of new development in the country. Super-luxury resorts, yachting tourism, and a commitment by the government to rehabilitate and protect the Tobago Keys as a national park have all contributed to strong tourism returns in the Grenadines.

St. Vincent and the Grenadines' currency is the Eastern Caribbean Dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the EC$, manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB has kept the EC$ pegged at EC$2.7=U.S. $1.

St. Vincent and the Grenadines is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. St. Vincent and the Grenadines also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM) and the CARICOM Single Market and Economy (CSME).

GDP (purchasing power parity, 2009 est.): $1.55 billion.
GDP real growth rate (2009 est.): -6.5%.
Per capita GDP (2009 est.): $18,100.
Inflation (consumer prices, 2007 est.): 6.1%.
Natural resources: Timber.
Agriculture: Mostly bananas.
Industry: Plastic products, food processing, cement, furniture, clothing, starch, and detergents.
Trade (2005): Exports--$40 million (merchandise) and $155 million (commercial services). Major markets--European Union (27.2%), Barbados (12.7%), Trinidad and Tobago (12.3%), Saint Lucia (10.9%), and the United States (9.2%). Imports--$240 million (merchandise) and $74 million (commercial services). Major suppliers--United States (33.3%), Trinidad and Tobago (23.6%), European Union (15.1%), Japan (4.2%), and Barbados (3.9%).
Official exchange rate: EC$2.70 = U.S. $1.

Geography of Grenadine Islands

Location: Caribbean, islands in the Caribbean Sea, north of Trinidad and Tobago Geographic coordinates: 13 15 N, 61 12 W Map references: Central America and the Caribbean Area: total: 389 sq km (Saint Vincent 344 sq km) land: 389 sq km water: 0 sq km Area - comparative: twice the size of Washington, DC Land boundaries: 0 km Coastline: 84 km Maritime claims: contiguous zone: 24 NM continental shelf: 200 NM exclusive economic zone: 200 NM territorial sea: 12 NM Climate: tropical; little seasonal temperature variation; rainy season (May to November) Terrain: volcanic, mountainous Elevation extremes: lowest point: Caribbean Sea 0 m highest point: Soufriere 1,234 m Natural resources: hydropower, cropland Land use: arable land: 10% permanent crops: 18% permanent pastures: 5% forests and woodland: 36% other: 31% (1993 est.) Irrigated land: 10 sq km (1993 est.) Natural hazards: hurricanes; Soufriere volcano on the island of Saint Vincent is a constant threat Environment - current issues: pollution of coastal waters and shorelines from discharges by pleasure yachts and other effluents; in some areas, pollution is severe enough to make swimming prohibitive Environment - international agreements: party to: Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Whaling signed, but not ratified: Climate Change-Kyoto Protocol
Geography - note: the administration of the islands of the Grenadines group is divided between Saint Vincent and the Grenadines and Grenada

Government of Grenadine Islands

St. Vincent and the Grenadines is a parliamentary democracy within the Commonwealth of Nations. Queen Elizabeth II is head of state and is represented on the island by a governor general, an office with mostly ceremonial functions. Control of the government rests with the prime minister and the cabinet.

The parliament is a unicameral body, consisting of 15 elected members and six appointed senators. The governor general appoints senators, four on the advice of the prime minister and two on the advice of the leader of the opposition. The parliamentary term of office is five years, although the prime minister may call elections at any time.

As in other English-speaking Caribbean countries, the judiciary in St. Vincent is rooted in British common law. There are 11 courts in three magisterial districts. The Eastern Caribbean Supreme Court, comprising a High Court and a Court of Appeals, is known in St. Vincent as the St. Vincent and the Grenadines Supreme Court. The court of last resort is the judicial committee of Her Majesty's Privy Council in London.

There is no local government in St. Vincent, and all six parishes are administered by the central government.

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Frederick Ballantyne
Prime Minister--Ralph E. Gonsalves
Minister of Foreign Affairs, Commerce, and Trade--Sir Louis Straker
Ambassador to the United States and the OAS--La Celia Prince
Permanent Representative to the UN--Camillo Gonsalves

St. Vincent and the Grenadines maintains an embassy at 3216 New Mexico Ave., NW, Washington, DC 20016 (tel. 202-364-6730). St. Vincent also has a consul resident in New York.

POLITICAL CONDITIONS
The People's Political Party (PPP), founded in 1952 by Ebenezer Joshua, was the first major political party in St. Vincent. The PPP had its roots in the labor movement and was in the forefront of national policy prior to independence, winning elections from 1957 through 1966. With the development of a more conservative black middle class, however, the party began to lose support steadily, until it collapsed after a rout in the 1979 elections. The party dissolved itself in 1984.

Founded in 1955, the St. Vincent Labour Party (SVLP), under R. Milton Cato, gained the support of the middle class. With a conservative law-and-order message and a pro-Western foreign policy, the SVLP dominated politics from the mid-1960s until the mid-1980s. Following victories in the 1967 and 1974 elections, the SVLP led the island to independence, winning the first post-independence election in 1979. Expecting an easy victory for the SVLP in 1984, Cato called early elections. The results were surprising: with a record 89% voter turnout, James F. Mitchell's New Democratic Party (NDP) won nine seats in the House of Assembly.

Bolstered by a resurgent economy in the mid-1980s, Mitchell led his party to an unprecedented sweep of all 15 House of Assembly seats in the 1989 elections. The opposition emerged from the election weakened and fragmented but was able to win three seats during the February 1994 elections under a "unity" coalition. In 1998, Prime Minister Mitchell and the NDP were returned to power for an unprecedented fourth term but only with a slim margin of 8 seats to 7 seats for the Unity Labour Party (ULP). The NDP was able to accomplish a return to power while receiving a lesser share of the popular vote, approximately 45% to the ULP's 55%. In March 2001, the ULP, led by Ralph Gonsalves, assumed power after winning 12 of the 15 seats in Parliament.

In the December 2005 parliamentary elections, Prime Minister Gonsalves and the ULP retained their 12-3 majority over the NDP.

Type: Parliamentary democracy; independent sovereign state within the Commonwealth.
Independence: October 27, 1979.
Constitution: October 27, 1979.
Branches: Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet. Legislative--unicameral legislature with 15-member elected House of Assembly and six-member appointed Senate. Judicial--district courts, Eastern Caribbean Supreme Court (High Court and Court of Appeals), final appeal to the Privy Council in London.
Subdivisions: Six parishes.
Political parties: Unity Labour Party (ULP, incumbent), New Democratic Party (NDP).
Suffrage: Universal at 18.

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History of Grenadine Islands

Carib Indians aggressively prevented European settlement on St. Vincent until the 18th century. African slaves--whether shipwrecked or escaped from St. Lucia and Grenada and seeking refuge in St. Vincent--intermarried with the Caribs and became known as "black Caribs." Beginning in 1719, French settlers cultivated coffee, tobacco, indigo, cotton, and sugar on plantations worked by African slaves. In 1763, St. Vincent was ceded to Britain. Restored to French rule in 1779, St. Vincent was regained by the British under the Treaty of Versailles in 1783. Conflict between the British and the black Caribs continued until 1796, when General Abercrombie crushed a revolt fomented by the French radical Victor Hugues. More than 5,000 black Caribs were eventually deported to Roatan, an island off the coast of Honduras. Slavery was abolished in 1834; the resulting labor shortages on the plantations attracted Portuguese immigrants in the 1840s and east Indians in the 1860s. Conditions remained harsh for both former slaves and immigrant agricultural workers, as depressed world sugar prices kept the economy stagnant until the turn of the century. From 1763 until independence, St. Vincent passed through various stages of colonial status under the British. A representative assembly was authorized in 1776, Crown Colony government installed in 1877, a legislative council created in 1925, and universal adult suffrage granted in 1951. During this period, the British made several unsuccessful attempts to affiliate St. Vincent with other Windward Islands in order to govern the region through a unified administration. The most notable was the West Indies Federation, which collapsed in 1962. St. Vincent was granted associate statehood status in 1969, giving it complete control over its internal affairs. Following a referendum in 1979, St. Vincent and the Grenadines became the last of the Windward Islands to gain independence. Natural disasters have plagued the country throughout the 20th century. In 1902, the La Soufriere volcano erupted, killing 2,000 people. Much farmland was damaged, and the economy deteriorated. In April 1979, La Soufriere erupted again. Although no one was killed, thousands had to be evacuated, and there was extensive agricultural damage. In 1980 and 1987, hurricanes devastated banana and coconut plantations; 1998 and 1999 also saw very active hurricane seasons, with hurricane Lenny in 1999 causing extensive damage to the west coast of the island.

People of Grenadine Islands

Most Vincentians are the descendants of African slaves brought to the island to work on plantations. There also are a few white descendants of English colonists, as well as some East Indians, Carib Indians, and a sizable minority of mixed race. The country's official language is English, but a French patois may be heard on some of the Grenadine Islands. Nationality: Noun and adjective--Vincentian. Population (July 2009 est.): 104,574. Annual population growth rate (2009 est.): -0.344%. Ethnic groups: African descent (66%), mixed (19%), West Indian (6%), Carib Indian (2%), other (7%). Religions: Anglican (47%), Methodist (28%), Roman Catholic (13%), other Protestant denominations, Seventh-day Adventist, and Hindu. Language: English (official); some French Patois spoken. Education (2004): Adult literacy--88.1%. Health (2006): Infant mortality rate--17/1,000. Life expectancy--men 69 years; women 74 years. Workforce (2006): 57,695. Unemployment (2004): 12%.