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Economy of Grenada

The economy of Grenada, based primarily upon services (tourism and education) and agricultural production (nutmeg and cocoa), was brought to a near standstill by Hurricane Ivan on September 7, 2004. Thirty-seven people were killed by the hurricane, and approximately 8,000-10,000 left homeless. Hurricane Ivan damaged or destroyed 90% of the buildings on the island, including some tourist facilities. Hurricane Emily swept over the island 10 months later, wreaking further havoc. Overall damage totaled as much as 2.5 times annual GDP. Reconstruction proceeded quickly, with the United States as the leading donor, with an emergency program of about $45 million aimed at repairing and rebuilding schools, health clinics, community centers, and housing; training several thousand Grenadians in construction and other fields; providing grants to private businesses to speed their recovery; and providing a variety of aid to help Grenada diversify its agriculture and tourism sectors. Despite initial high unemployment in the tourist and other sectors, urban Grenadians benefited post-hurricane from job opportunities in the construction sector. Agricultural workers did not fare as well. Hurricane Ivan destroyed or significantly damaged a large percentage of Grenada's tree crops, and Hurricane Emily further damaged the sector. The hurricanes exacerbated an ongoing exodus out of the rural areas to the country's cities and towns as young Grenadians increasingly chose not to farm. Complete recovery will take years. Most hotels, restaurants, and other businesses reopened by 2007. In anticipation of the April 2007 Cricket World Cup matches held on the island, many Grenadians renewed their focus on the rebuilding process. Predictions for an increase in tourism were realized in part, although Grenada lags behind its neighbors in marketing the island abroad, particularly in the largely untapped U.S. market. St. George's University, a large American medical and veterinary school with about 3,700 graduate and undergraduate students, is in full operation. Grenada is a member of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues a common currency for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries. Grenada is also a member of the Caribbean Community and Common Market (CARICOM). Most goods can be imported into Grenada under open general license, but some goods require specific licenses. Goods that are produced in the Eastern Caribbean receive additional protection; in May 1991, the CARICOM common external tariff (CET) was implemented. The CET aims to facilitate economic growth through intra-regional trade by offering duty-free trade among CARICOM members and duties on goods imported from outside CARICOM. In the spring of 2008, due to dramatic increases in the costs of food and fuel, the government removed the CET from some essential items, including baby formula, yeast, and baking powder. The country suffered greatly from the global economic downturn, which reduced tourism arrivals. Although the country replanted many nutmeg trees, the lag between planting and bearing fruit has left Grenada with fewer resources than hoped. The government reintroduced the value added tax in 2010. Economy (U.S. $) GDP (2009, current dollars): $626.6 million. GDP growth rate (2009): -6.8%. Per capita GDP (2009, current dollars): $6,028. Inflation (2009): -2.4%. Agriculture: Nutmeg, cocoa, bananas, other fruits, vegetables, mace, and fish. Services: Tourism and education. Construction: Housing development and tourism renovations. Trade (2009): Exports --$29 million (merchandise) and $139 million (commercial services). Major markets-- Dominica (16.4%), United States (16.3%), European Union (16.1%), Saint Lucia (11.2%), and Barbados (9.2%). Imports --$282 million (merchandise) and $86 million (commercial services). Major suppliers --United States (30.9%), Trinidad and Tobago (24.9%), European Union (10.7%), Venezuela (7%), and Japan (3.6%). Official exchange rate: EC$2.70 = U.S. $1. Total debt outstanding and disbursed (2009): $519 million.

Geography of Grenada

Grenada is located in the Caribbean. The island is of volcanic origin and is divided by a central mountain range. It is the most southerly of the Windward Islands. Agriculture is based on nutmeg, cocoa, sugar cane and bananas. Tropical rainforests, gorges and the stunning beauty of dormant volcanoes make this a fascinating and diverse landscape with some of the finest beaches in the world. Carriacou and some of the other small islands of the Grenadines are also part of Grenada. Official Name: Grenada Area: 344 sq. km. (133 sq. mi.); about twice the size of Washington, DC. Cities: Capital--St. George's (est. pop. 33,734). Terrain: Volcanic island with mountainous rainforest. Climate: Tropical.

Government of Grenada

Grenada is governed under a parliamentary system based on the British model; it has a governor general, a prime minister and a cabinet, and a bicameral parliament with an elected House of Representatives and an appointed Senate. Grenada's constitution provides citizens with the right to change their government peacefully. Citizens exercise this right through periodic free and fair elections held on the basis of universal suffrage. The political parties in Grenada are the governing left-of-center National Democratic Congress (NDC), which incorporated former members and associates of the New Jewel Movement (NJM); the moderate New National Party (NNP); the People's Labor Movement (PLM), which is a combination of members of the original NDC and the Maurice Bishop Patriotic Movement (MBPM); and the Grenada United Labor Party (GULP). The National Party (TNP) and MBPM no longer exist. The Good Old Democracy Party (GOD) has only one adherent but contests all elections. In February 2007, the Privy Council in London handed down its verdict on the appeal of the group that was convicted of murdering Prime Minister Bishop and members of his cabinet in 1983. The "Group of 14" were originally condemned to death, but the sentence was commuted to life in prison. The three triggermen, sentenced to 30 years in prison as they were following orders, were released in December 2006 after serving two-thirds of their original sentence, as per local law. The remainder of the group argued that the original trial was unjust and appealed to the Privy Council to overturn the verdict and sentence. The Privy Council decision, however, only vacated the sentence, on the grounds that the original death sentence was inappropriate. It upheld the convictions of multiple homicides, stripping the group of its political prisoner status. On resentencing, the Grenada Supreme Court overturned the life sentences. Three of the 13 remaining after the resentencing were released from prison in 2007, with the final group of 10 released in the summer of 2009. The 800 members of the Royal Grenada Police Force (RGPF), which includes an 80-member paramilitary special services unit (SSU) and a 30-member coast guard, maintain security in Grenada. The U.S. provides periodic training and material support for the SSU, the coast guard, and other units of the police as needed. The Departments of State and Treasury provide support to the Financial Investigative Unit (FIU) within the Ministry of National Security. Principal Government Officials Head of State--Queen Elizabeth II Governor General--Carlyle Arnold Glean Prime Minister--Tillman Thomas Minister of Foreign Affairs--Peter David Ambassador to the United States and OAS--Gillian Bristol Ambassador to the United Nations--Dessima Williams Grenada maintains an embassy in the United States at 1701 New Hampshire Avenue, NW, Washington, DC 20009 (tel: 202-265-2561). Government Type: Constitutional monarchy with Westminster-style Parliament. Independence: February 7, 1974. Constitution: December 19, 1975. Branches: Executive -- governor general (appointed by and represents British monarch, head of state); prime minister (head of government, leader of majority party) and Cabinet direct an apolitical career civil service in the administration of the government. Legislative -- Parliament composed of 15 directly elected members in the House of Representatives and a 13-seat Senate appointed by the governor general on the advice of the majority party and opposition. Judicial -- magistrate's courts, Eastern Caribbean Supreme Court (high court and court of appeals), final appeal to privy council in London. Subdivisions: Six parishes and one dependency (Carriacou and Petit Martinique). Major political parties: New National Party (NNP), incumbent; National Democratic Congress (NDC); Grenada United Labor Party (GULP). Suffrage: Universal at 18

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History of Grenada

Before the arrival of Europeans, Grenada was inhabited by Carib Indians who had driven the more peaceful Arawaks from the island. Columbus landed on Grenada in 1498 during his third voyage to the new world. He named the island "Concepcion." The origin of the name "Grenada" is obscure, but it is likely that Spanish sailors renamed the island for the city of Granada. By the beginning of the 18th century, the name "Grenada," or "la Grenade" in French, was in common use. Partly because of the Caribs, Grenada remained un-colonized for more than 100 years after its discovery; early English efforts to settle the island were unsuccessful. In 1650, a French company founded by Cardinal Richelieu purchased Grenada from the English and established a small settlement. After several skirmishes with the Caribs, the French brought in reinforcements from Martinique and defeated the Caribs. The island remained under French control until its capture by the British in 1762, during the Seven Years' War. Grenada was formally ceded to Great Britain in 1763 by the Treaty of Paris. Although the French regained control in 1779, the island was restored to Britain in 1783 by the Treaty of Versailles. Although Britain was hard pressed to overcome a pro-French revolt in 1795 Grenada remained British for the remainder of the colonial period. During the 18th century, Grenada's economy underwent an important transition. Like much of the rest of the West Indies it was originally settled to cultivate sugar which was grown on estates using slave labor. But natural disasters paved the way for the introduction of other crops. In 1782, Sir Joseph Banks, the botanical adviser to King George III, introduced nutmeg to Grenada. The island's soil was ideal for growing the spice and because Grenada was a closer source of spices for Europe than the Dutch East Indies the island assumed a new importance to European traders. The collapse of the sugar estates and the introduction of nutmeg and cocoa encouraged the development of smaller land holdings, and the island developed a land-owning yeoman farmer class. Slavery was outlawed in 1834. In 1833, Grenada became part of the British Windward Islands Administration. The governor of the Windward Islands administered the island for the rest of the colonial period. In 1958, the Windward Islands Administration was dissolved, and Grenada joined the Federation of the West Indies. After that federation collapsed in 1962, the British Government tried to form a small federation out of its remaining dependencies in the Eastern Caribbean. Following the failure of this second effort, the British and the islands developed the concept of associated statehood. Under the Associated Statehood Act of 1967 Grenada was granted full autonomy over its internal affairs in March 1967. Full independence was granted on February 7, 1974. After obtaining independence, Grenada adopted a modified Westminster parliamentary system based on the British model with a governor general appointed by and representing the British monarch (head of state) and a prime minister who is both leader of the majority party and the head of government. Sir Eric Gairy was Grenada's first prime minister. On March 13, 1979, the new joint endeavor for welfare, education, and liberation (New Jewel) movement ousted Gairy in a nearly bloodless coup and established a people's revolutionary government (PRG), headed by Maurice Bishop who became prime minister. His Marxist-Leninist government established close ties with Cuba, the Soviet Union, and other communist bloc countries. In October 1983, a power struggle within the government resulted in the arrest and execution of Bishop and several members of his cabinet and the killing of dozens of his supporters by elements of the People's Revolutionary Army (PRA). A U.S.-Caribbean force landed on Grenada on October 25, 1983, in response to an appeal from the Governor General and to a request for assistance from the Organization of Eastern Caribbean States. U.S. citizens were evacuated, and order was restored. An advisory council named by the Governor General administered the country until general elections were held in December 1984. The New National Party (NNP) led by Herbert Blaize won 14 out of 15 seats in free and fair elections and formed a democratic government. Grenada's constitution had been suspended in 1979 by the PRG, but it was restored after the 1984 elections. The NNP continued in power until 1989 but with a reduced majority. Five NNP parliamentary members, including two cabinet ministers, left the party in 1986-87 and formed the National Democratic Congress (NDC) which became the official opposition. In August 1989, Prime Minister Blaize broke with the NNP to form another new party, The National Party (TNP), from the ranks of the NNP. This split in the NNP resulted in the formation of a minority government until constitutionally scheduled elections in March 1990. Prime Minister Blaize died in December 1989 and was succeeded as prime minister by Ben Jones until after the elections. The NDC emerged from the 1990 elections as the strongest party, winning seven of the 15 available seats. Nicholas Brathwaite added two TNP members and one member of the Grenada United Labor Party (GULP) to create a 10-seat majority coalition. The governor general appointed him to be prime minister. In parliamentary elections on June 20, 1995, the NNP won eight seats and formed a government headed by Dr. Keith Mitchell. The NNP maintained and affirmed its hold on power when it took all 15 parliamentary seats in the January 1999 elections. General elections were held in November 2003; the NNP won 8 of the 15 seats, holding on to power with a much-reduced majority. The National Democratic Congress (NDC) led by Tillman Thomas won 7 seats and is now the official opposition.

People of Grenada

About 89% of Grenada's population is of African descent. An additional 8.2% are of mixed East Indian, African, and/or Caucasian ancestry, reflecting Grenada's history of African slaves, East Indian indentured servants, and European settlers. An additional 2% of the population considers itself East Indian, which includes some descendents of the indentured servants brought to Grenada from 1857 to the 1890s, as well as immigrants arriving from Trinidad and Tobago, Guyana, and Indians since the 1970s. A small community (less than 1% of the population) of the descendants of early European settlers resides in Grenada. About 60% of Grenada's population is under the age of 25. English is the official language; few people still speak French patois, though there has been a recent resurgence of interest in re-learning the language. A wide range of Christian denominations are present in Grenada, as well as growing number of other religions. Nationality: Noun and adjective-- Grenadian(s). Population (2009): 103,930. Annual population growth rate (2009): 0.4%. Ethnic groups: African descent (89%), some South Asians (East Indians) and Europeans, trace Arawak/Carib Indian. Religions: Roman Catholic, various Protestant denominations, Islam, Rastafarianism. Languages: English (official). Education: Years compulsory --10 grades or age 16. Literacy --96% of adult population. Health (2008): Infant mortality rate-- 13/1,000. Life expectancy --men 74 years; women 77 years. Work force (2008): 47,581. Unemployment (2008): 24.9%.