Economy
of
Cayman Islands
Although Caymanians enjoy one of the highest standards of living in the world, about 90% of the islands' food and consumer goods must be imported.
From the earliest settlement of the Cayman Islands, economic activity was hindered by isolation and a limited natural resource base. The harvesting of sea turtles to resupply passing sailing ships was the first major economic activity on the islands, but local stocks were depleted by the 1790s. Agriculture, while sufficient to support the small early settler population, has always been limited by the scarcity of available land.
The advent of modern transportation and telecommunications in the 1950s led to the emergence of what are now considered the Cayman Islands' "twin pillars" of economic development: international finance and tourism. In 2004, there were more than 70,000 companies registered in the Cayman Islands, including 446 banks and trust companies. Forty of the world's largest banks are present in the Cayman Islands. .
It is estimated that financial services represent 40% and tourism between 30-40% of gross domestic product. Unspoiled beaches, duty-free shopping, scuba diving, and deep-sea fishing draw almost a million visitors to the islands each year.
Education is compulsory to the age of 16 and is free to all Caymanian children. Schools follow the British educational system. The Government operates 10 primary, one special education, and two high schools. In addition, there is a university and a law school.
GDP per capita (2007 estimate): U.S. $48,290
GDP (2007 est., purchasing power parity): $2.569 billion.
Growth rate: 2.2%.
Natural resources: Scenic beaches and underwater attractions, favorable climate.
Agriculture: Products--Minor production of vegetables and livestock, turtle farming, aquaculture.
Industry: Types--tourism, banking, insurance, mutual funds, finance, and construction.
Trade: Exports (2007)--$25 million: turtle products, manufactured consumer goods. Major market--United States. Imports (2007)--$1.057 billion: machinery, manufactures, food, fuels, chemicals. Major suppliers--U.S., Jamaica, U.K., Netherlands Antilles, Japan.
Official exchange rate (fixed): CI $0.80=U.S. $1.
Geography
of
Cayman Islands
Location:
Caribbean, island group in Caribbean Sea, nearly one-half of the way from Cuba to Honduras
Map references:
Central America and the Caribbean
Area:
total area: 260 sq km
land area: 260 sq km
comparative area: slightly less than 1.5 times the size of Washington, DC
Land boundaries:
0 km
Coastline:
160 km
Maritime claims:
exclusive fishing zone: 200 nm
territorial sea: 12 nm
International disputes:
none
Climate:
tropical marine; warm, rainy summers (May to October) and cool, relatively dry winters (November to April)
Terrain:
low-lying limestone base surrounded by coral reefs
Natural resources:
fish, climate and beaches that foster tourism
Land use:
arable land: 0%
permanent crops: 0%
meadows and pastures: 8%
forest and woodland: 23%
other: 69%
Irrigated land:
NA sq km
Environment:
current issues: no natural fresh water resources, drinking water supplies must be met by rainwater catchment
natural hazards: hurricanes (July to November)
international agreements: NA
Note:
important location between Cuba and Central America
Government
of
Cayman Islands
The Cayman Islands' physical isolation under early British colonial rule allowed the development of an indigenous set of administrative and legal traditions which were codified into a Constitution in 1959. Although still a British Crown Colony, the islands today are self-governed in nearly all respects. The Constitution, or Cayman Islands Order, that now governs the islands came into effect in 1972 and was amended in 1984.
The Cayman Islands' political system is very stable, bolstered by a tradition of restrained civil governance, sustained economic prosperity, and its relative isolation from foreign policy concerns by virtue of its colonial relationship with the United Kingdom. Public discussion revolves around public sector expenditure and social services, the pace of additional economic development, and the status of the large foreign national community on the islands.
Government Structure
The Cayman Islands form a British Overseas Territory with a large measure of self-government. The present constitution, which came into effect in 1972, provides for a system of government headed by a Governor, a Legislative Assembly, and a Cabinet, which administers the islands. The Governor is recruited from the U.K. Government Service, serves as the British government administrator, and retains responsibility for the civil service, defense, external affairs, and internal security.
The Governor also chairs the Cabinet and appoints to the Cabinet the Chief Secretary, the Attorney General, and the Financial Secretary, while the Legislative Assembly elects the Cabinet's other five members. Unlike other Caribbean Overseas Territories there is no Chief Minister but a Leader of Government Business. The Leader of Government Business is an elected politician, while the Chief Secretary is the most senior civil servant. Currently, the Leader of Government Business is also the Minister of Financial Services, Tourism and Development.
Responsibility for defense and external affairs resides with the United Kingdom; however, the Chief Secretary has the portfolio for external affairs, and the Cayman Government may negotiate certain bilateral matters directly with foreign governments. The elected members of the Executive Council divide the remaining administrative portfolios.
The 18-seat unicameral Legislative Assembly is presided over by an independent speaker. Elections are held at the discretion of the governor at least every 4 years. Members of the assembly may introduce bills, which, if passed, are then approved, returned, or disallowed by the Governor. The U.K. Government also reserves the right to disallow bills approved by the Governor.
The four-tiered judicial system is based on English common law and colonial and local statutes. The Cayman Islands Court of Appeal is the highest court on the islands, but Her Majesty’s Privy Council sitting in London may hear a final appeal.
Political Coalitions
Since 2000, there have been two official political parties: The United Democratic Party (UDP) and the People's Progressive Movement (PPM). While there has been a shift to political parties, many contending for an office still run as independents. In May 2009 elections, the United Democratic Party (UDP) defeated the incumbent People's Progressive Movement, receiving nine of the 15 seats.
Principal Government Officials
Head of State--Queen Elizabeth II
Governor--Stuart Jack, since November 2005
Leader of Government Business--W. McKeeva Bush, since May 2009
The Cayman Islands are represented in the United States by the United Kingdom Embassy at 3100 Massachusetts Avenue, Washington DC 20008; tel: 202-462-1340; fax: 202-898-4255.
The Cayman Islands Department of Tourism, with offices in Miami, New York, Houston, and Chicago, also may provide travel information.
Type: British Overseas Territory.
Constitution: 1972; called the Cayman Islands Order; modified 1994.
Branches: Executive--Governor and Governor-in-Cabinet (representing British monarch), Cabinet. Legislative--unicameral Legislative Assembly (15 elected, three appointed members). Judicial--Summary Court, Grand Court, Cayman Islands Court of Appeal, Her Majesty's Privy Council.
Subdivisions: Eight districts.
Political parties: People's Progressive Movement, United Democratic Party.
Suffrage: Universal at 18.
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History
of
Cayman Islands
The Cayman Islands remained largely uninhabited until the 17th century. A variety of people settled on the islands, including pirates, refugees from the Spanish Inquisition, shipwrecked sailors, deserters from Oliver Cromwell's army in Jamaica, and slaves. The majority of Caymanians are of African and British descent, with considerable interracial mixing.
Great Britain took formal control of the Cayman Islands, along with Jamaica, under the Treaty of Madrid in 1670. Following several unsuccessful attempts, permanent settlement of the islands began in the 1730s. The Cayman Islands historically have been popular as a tax-exempt destination. Legend has it that Caymanians in 1788 rescued the crews of a Jamaican merchant ship convoy which had struck a reef at Gun Bay and that the Caymanians were rewarded with King George III's promise to never again impose any tax.
The Cayman Islands, initially administered as a dependency of Jamaica, became an independent colony in 1959; they now are a self-governing British Overseas Territory.
People
of
Cayman Islands
The majority of Caymanians are of African and British descent, with considerable interracial mixing. The Cayman Islands' annual population growth rate of nearly 5% is largely attributable to immigration--of the 2007 estimated population of 53,886., only 64% were born on the islands. In contrast, few Caymanians emigrate permanently, although historically many left for extended periods to work as seamen and today many leave for education or training unavailable on the islands.
Nationality: Noun and adjective--Caymanian(s).
Population (2007 est.): 53,886.
Annual growth rate (2007 est.): 1.3%.
Ethnic groups: Afro-European 40%, African 20%, European 20%, other 20%.
Religious affiliations: United Church, Anglican, other Protestant, Roman Catholic.
Language: English.
Education: Years compulsory--to age 16. Literacy (age 15 and over)--98%.
Health: Infant mortality rate (2008)--7.1/1,000. Life expectancy--males 77.68 years; females 83 years.
Work force (2007 est.): 36,476.