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Antigua & Barbuda
Area: 442 sq km (Antigua 281 sq km; Barbuda 161 sq km)
Population: 69,000 (Census 2006 Estimates) including about 1,200 Montserratians living in Antigua. Barbuda's population of 1,400 live mostly in or near the town of Codrington. Population growth rate: 0.74% (2006 estimate).
Capital City: St John's City, with an estimated population (2001) of 24,000. This is the main commercial centre of Antigua and has the largest harbour, capable of berthing five ships, and sometimes more.
People: Most Antiguans are of African lineage, descendants of slaves brought to the island centuries ago to labour in the sugarcane fields. About 10 per cent of the population consists of Hispanic immigrants, mainly from the Dominican Republic. Nationals from Jamaica, Dominica and Guyana have also settled on the island.
Languages: English
Religion(s): Predominantly Anglican, but also Moravian, Methodist and Roman Catholic
Currency: East Caribbean Dollar (EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$) £1.00 = 5.31EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$
Political Parties: United Progressive Party (UPP); Antigua Labour Party (ALP); Barbuda People's Movement (BPM)
Government: A constitutional monarchy with Westminster-style Parliament. The bicameral legislature comprises a House of Representatives elected every five years and a Senate of 17 appointed members. The United Progressive Party won elections held on 23 March 2004 by a majority of 12 seats to 4 with one seat (Barbuda) tied.
Head of State: Her Majesty Queen Elizabeth II represented by HE the Governor General, Sir James Carlisle, GCMG, OBE
Prime Minister/Premier: The Hon (Winston) Baldwin Spencer
Foreign Minister: The Hon (Winston) Baldwin Spencer
Membership of international groups/organisations: ACP, Caricom, CDB, Commonwealth, ECLAC, FAO, G77, IBRD, ICAO, ICFTU, ICRM, IFAD, IFC, IFRCS, ILO, IMG, IMO, Intelsat (nonsignatory user), Interpol, IOC, ITU, NAM (observer), OAS OECS, OPANAL, UN UNCTAD, UNESCO, UPU, WCL, WFTU, WHO, WMO, WTO. Antigua will assume Chairmanship of the G77 in 2008.
GEOGRAPHYThe State comprises Antigua, the largest of the Leeward Islands, its sister island of Barbuda (30 miles away) and uninhabited Redonda. These islands are situated between the Caribbean Sea and the Atlantic Ocean, east-southeast of Puerto Rico. There are a total of 153 kms of coastline. Antigua is mainly coral-based, but is of volcanic origin in the south. Barbuda is a flat coral island. The climate is tropical, with little variation between the seasons. Antigua and Barbuda lies within the hurricane belt.
HISTORYThe first settlements on Antigua date from about 2400 BC, and were composed of the Siboney (an Arawak word meaning ‘stone-people'), peripatetic Meso-Indians whose shell and stone tools have been found at dozens of sites around the island. Antigua was later settled by the pastoral, agricultural Arawaks (35-1100 AD), who were then displaced by the Caribs, an aggressive people who ranged all over the Caribbean. The earliest European contact with the island was made by Christopher Columbus during his second Caribbean voyage (1493), who sighted the island in passing and named it after Santa Maria la Antigua, the miracle-working saint of Seville. European settlement, however, did not occur for over a century, largely because of Antigua's dearth of fresh water and abundance of determined Carib resistance. Finally, in 1632, a group of Englishmen from St. Kitts established a successful settlement. Sir Christopher Codrington arrived in Antigua in 1684. He had come to Antigua to find out if the island would support the sort of large-scale sugar cultivation that already flourished elsewhere in the Caribbean. His initial efforts proved to be quite successful, and over the next fifty years sugar cultivation on Antigua exploded. By the middle of the 18th century there were more than 150 cane-processing windmills on the island, each the focal point of a sizeable plantation.
By the end of the eighteenth century Antigua had become an important strategic port as well as a commercial colony. Known as the ‘gateway to the Caribbean', it was situated in a position that offered control over the major sailing routes to and from the region's rich island colonies. Horatio Nelson arrived in 1784 at the head of the Squadron of the Leeward Islands to develop the British naval facilities at English Harbour and to enforce stringent commercial shipping laws. It was during King William IV's reign, in 1834, that Britain abolished slavery in its empire. Antigua instituted immediate full emancipation rather than a four-year ‘apprenticeship' as in the other British Caribbean colonies. Emancipation actually improved the island's economy, but the sugar industry of the British islands was already beginning to wane. Until the development of tourism in the past few decades, Antiguans struggled for prosperity. The rise of a strong labour movement in the 1940s, under the leadership of V.C. Bird, provided the impetus for independence. In 1967, with Barbuda and the tiny island of Redonda as dependencies, Antigua became an associated state of the Commonwealth, and in 1981 it gained independence as a unitary state, despite a strong campaign for separate independence by the inhabitants of Barbuda.
POLITICSRecent Political DevelopmentsThe United Progressive Party (UPP) won elections held on 23 May 2004. Their leader, Baldwin Spencer, was subsequently sworn in as Prime Minister taking over from Lester Bird who had succeeded his father Vere Bird Senior as Prime Minister at the 1994 election. This was an historic victory. Bird’s Antigua Labour Party (ALP) had been in power since before independence in 1981. This momentous change for Antigua and Barbuda took place peacefully and in the best traditions of western democracy. Since assuming power the UPP Government has embarked on a programme of good governance passing legislation such as the Freedom of Information Act, Prevention of Corruption Act and Integrity in Public Life Act. On coming into the office the new government’s major challenge was economic reform and tackling the high debt accumulated by the previous administration.
Barbuda has its own nine member Council headed by its Chairman, Mr Randolf Beazer. The Council has responsibility for electricity, water and education. The island’s main foreign exchange earner is tourism with a small number of small, luxurious hotels. With limited infrastructure the island is developed with due regard to the environment. The famous frigate bird sanctuary is managed with the utmost care. Some years ago there was talk of secession from Antigua but this is no longer an issue.
ECONOMYBasic Economic FactsGDP: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$818 million (2004 at current market prices)
GDP per head: US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$10,213 (2004)
Annual growth: 5-6% in the medium term
Inflation: Consumer Prices (2004 IMF estimate) 2.0%
Major industries: Tourism, construction, light manufacturing, offshore financial sector
Major Trading Partners: Export partners: OECS – 26%; Barbados - 15%; Guyana – 4%; Trinidad and Tobago – 2%; USA – 0.3%. Import partners: USA – 27%; United Kingdom – 26%; Canada – 4%; OECS – 3%
Agricultural products: Cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugar cane and livestock.
Antigua and Barbuda is an upper middle income country with a small open economy. Social indicators are relatively good. According to 2005 UNDP data, the country stands in the top of the Medium Human Development category. However Antigua and Barbuda’s base is very narrow, depending mostly on tourism for foreign exchange earnings, employment and revenue. Tourism is the major industry with hotels and restaurants employing around 75% of the workforce. But Antigua is a high-cost destination.
Following a slowdown in the global economy and the adverse effects of 11 September, the hotel industry went through a difficult period. Tourist figures have largely recovered. Over the years, the Government has accumulated large fiscal deficits and debt repayment arrears, which have adversely affected the country’s creditworthiness and its ability to access external funding for its Public Sector Investment Programme. National debt levels are just under 120% of GDP.
The new Government that took office in 2004 has already introduced significant reforms, confirming its campaign pledge to return normality to fiscal and debt relations, improve governance and transparency. The 2005 budget included measures to cut the public service salary bill by 20%.
The Government aims to cut 2,600 jobs from the 13,000 public sector workforce. The progress towards this target is slow and has not yet been achieved. Those affected would be assisted in finding employment in the private sector or establishing their own businesses. The Prime Minister and his Cabinet colleagues took a 10% salary cut from 1 January 2005. Income tax has been reintroduced for people earning more than EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$3,000(US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$1,111) monthly. The tax will start at 10% and rise to 25% at the highest rate. In addition to the introduction of income tax the Government is following a comprehensive fiscal reform programme and VAT at a rate of 15% was introduced on 29 January 2007. Eastern Caribbean Central Bank estimates a growth rate of 12% for Antigua for 2006. The IMF, in contrast, estimates 8%. But both figures represent very strong rates.
Technical assistance has been given by the IMF, CIDA and CARTAC, a Caribbean institution part funded by DFID. The offshore financial services have been encouraged as a means of diversifying the economy. In the absence of any natural disaster, or major external shock, the economy is expected to grow by 5-6% per annum over the medium term.
Agricultural production is mainly directed to the domestic market and is constrained by the limited water supply and labour shortages that reflect the attraction of higher wages in the tourism and construction industries. Small manufacturing outlets produce goods for export including bedding, handicrafts and electronic components.
Antigua and Barbuda appealed to the World Trade Organisation to adjudicate following a ban by the United States on the cross-border supply of gambling and betting services from Antigua and Barbuda. The WTO ruled in Antigua's favour but the US challenged this. Following the US challenge, in a decision of April 2005, the WTO ruled partly in Antigua’s favour. Both sides claimed victory.
The situation is affecting those companies based in Antigua whose main market was the US. Job losses have already occurred in the industry. But private companies are faring better than publicly quoted companies who lost share value following the US legislation. The industry is still active on the island. Meanwhile the WTO has made another ruling, released in March 2007, following a further appeal by Antigua. It is a clear win for Antigua.
UK Development AssistanceDFID are moving away form discrete stand-alone bilateral projects and work closely with large organisations such as the Caribbean Development Bank and the European Commission. DFID has a number of sub-regional and regional initiatives which Antigua and Barbuda benefit from. These include Technical Assistance to the Caribbean Development Bank; technical assistance to the CARICOM Regional Negotiating Machinery; support to CARICOM with implementation of the regional strategic framework on HIV/AIDS; support to the Caribbean Regional Technical Assistance Centre (CARTAC) and to the Caribbean Centre for Development Administration (CARICAD).
DFID gave Antigua and Barbuda a £3 million grant in 1997 to fund development projects for education and health services, in recognition of the strain imposed by the estimated 3,000 Montserratian refugees (now believed to be about 1200). The grant was given on the understanding that Montserratians would have access to health and education on the same basis as nationals. The EU is also funding Technical and Vocational Education Training (TVET).
Trade and Investment with the UKUK/Antigua and Barbuda (£m) 2004UK Exports 11.41
UK Imports 31.63
POPULATIONPopulation growth rate: 0.74%
Birth rate: 19.5 births/1,000
Death rate: 5.99 deaths/1,000
Infant mortality rate: 22.3 deaths/1,000 live births
Life expectancy: 70.74 years (2001 Estimates)
There is one general hospital, Holberton, and a private medical clinic. For serious cases, or where specialist treatment is needed, medical evacuation to Britain or the US is the norm.
HIV/AIDSThe incidence of HIV/AIDS in the Caribbean region is now second only to sub-Sahara Africa.
A UK-CARICOM Forum on Reducing Stigma and Discrimination against people living with HIV and AIDS in the Caribbean was held in St Kitts in November 2004. The Forum was attended by stakeholders from throughout the region.
INTERNATIONAL RELATIONSAntigua and Barbuda's Relations with NeighboursAntigua and Barbuda enjoys close relations with its neighbours. It is an active member of the Organisation of Eastern Caribbean States (OECS), and shares a common currency and common judiciary with the other six full members and two associate members of the Organisation. Antigua and Barbuda is also a member of the Caribbean Community (CARICOM) which has established a single market and aims to also establish a single economy by mid 2007. It co-ordinates its foreign policy with the member states of CARICOM.
Antigua and Barbuda's Relations with the International CommunityAntigua and Barbuda greatly values its membership of the Commonwealth and of the United Nations Organisation. Within the Commonwealth, Antigua and Barbuda advances the agenda of Small States in the international community. Venezuela, China and Cuba have Embassies in Antigua and Barbuda.
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