Belize |
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Last reviewed: 10 August 2009 |
DP: US $2.82 billion (2008 est.)
GGDP per head: US$3,611 (2003) US$3,620 (2005) US $6,136 (2008)
Annual growth: 3.8% (2008)
Inflation: 3.1% (2004) 3.7% (2005) 6.4% (2008)
Major industries: sugar, citrus concentrates, bananas, marine products, garments, tourism, oil (discovered in 2006).
Major trading partners: USA, EU, Mexico, Central America, CARICOM (Caribbean Community).
Exchange rate: BZ$3.2 to £1 approx.
The small, essentially private enterprise economy is based primarily on agriculture, including agro-based industry (sugar refining and citrus processing), forestry and fishing. Sugar, the chief crop, accounts for nearly half of exports, while the banana industry is the country's largest employer. The production of oranges, which accounts for the largest acreage cultivated, grew strongly in 2007. Tourism, construction and marine products are assuming greater importance and tourism is now the largest foreign currency earner, having overtaken agriculture. Protecting the natural and historical environment will be critical to the sustainability of Belize’s tourism industry. Figures of overnight visitors have risen steadily over the past five years, whilst cruise ship passenger numbers have declined steadily since 2004.
There has been exploration for oil in Belize for over 50 years but it is only now that technology makes its extraction viable, this received a boost with oil discoveries in 2006. A small oil field containing 10 million barrels of sweet crude oil is currently in production and exploration continues in other areas of the country.
Despite steady GDP growth over the last couple of years the policy environment tightened somewhat in an effort to reduce pressure on the international reserves. This growth has been hindered by the recent economic climate, with real GDP predicted to contract in 2009 before beginning a weak recovery in 2010. Real GDP contracted by 2.2% in the first quarter of 2009 as a result of both domestic and external factors. Growth was led by services with tourism playing a key role in the expansion of distributive trade, transport & communications as well as the continued growth in hotel and restaurant activity. Activity in fisheries also heightened as a result of developments in shrimp and Tilapia farming. The Government's fiscal and monetary policies have been tightened over the last few years in an attempt to slow consumption and improve the external current account position, which was becoming critical. In July 2006 the government announced that they would not be able to meet debt payments to external creditors and sought to reschedule the countries external debt of nearly US$1 Billion. The negotiation of a new “Superbond” was successfully completed in February 2007 extending the life of the debt by 22 years to 2029 and with easier payment terms in the earlier years.
Consumer price inflation has risen to around 6.4% after dipping to 2.3% in 2007, adding to inflationary pressures was the introduction of the General Sales Tax in 2006, high fuel prices at the pump and hikes in electricity rates. The export sector is performing reasonably well with the advent of crude oil exports and higher earnings from citrus products, sugar and aquaculture. However Hurricane Dean, which hit northern Belize in 2007 decimated a large part of the papaya crop and impacted on Sugar production. Despite the global recession both import and export values in 2008 continue to be strong. In December 2007 the CARIFORUM countries signed an Economic Partnership Agreement with the EU, this was partly to replace the agreements on Sugars and banana exports which had been banned by the WTO. The impact of this agreement, which is much broader in scope, has yet to be seen but should be come more evident over time. The current synchronised global slowdown, particularly in the US, EU and Japan will likely slow economic growth.
300-600 - Belize forms part of the Mayan Empire.
1638 – First record of British settlement in Belize.
1670 – Treaty of Madrid. Spain acknowledges Britain's title to Jamaica and other de facto possessions 'in the West Indies, or any part of America'.
1763 – Treaty of Paris. Spain concedes to Britain the right to cut logwood in the Bay of Honduras but retains claim of sovereignty over Belize.
1786 - Convention of London. Spain extends the area of Britain's logwood concession and Britain gives up her claim to the Mosquito Coast (in what is now Nicaragua).
1798 - Battle of St George's Caye. Decisive naval victory by British settlers against Spain. This was the last time that Spain attempted to gain control of Belize.
1859 – Anglo-Guatemalan Treaty concluded and ratified. Guatemala agrees to existing boundary with British Honduras as Belize was then called.
1862 – The settlement was given colonial status as British Honduras, with a Lieutenant-Governor under the Governor of Jamaica.
1871 – The Crown Colony System of Government was introduced.
1884 - The link with Jamaica was broken and the title of Lieutenant Governor was changed, with a Governor being appointed.
1919 - Beginning of the black independence movement.
1940 – Guatemala declares 1859 Treaty to be invalid.
1954 – George Price elected First Minister of British Honduras.
1964 – Belize became an internally self-governing British colony.
1960s-1970s – numerous attempts were made to resolve the territorial dispute with Guatemala through negotiations.
1973 – British Honduras reverted to the name of Belize.
1975 onwards - successive UN Resolutions endorsed Belize's right to self-determination, independence and territorial integrity.
1981 – On 11 March, Britain, Guatemala and Belize released a Heads of Government Agreement aimed at bringing about a peaceful resolution to the dispute.
1981 - On 21 September, Belize became an independent member of the British Commonwealth recognising HM Queen Elizabeth II as the Head of State.
1984 - The centre-right United Democratic Party (UDP), led by Manuel Esquivel, defeated the centre-left People's United Party (PUP) in elections in December.
1991 – Guatemala recognises the right of the Belizean people to self-determination.
1998 – The PUP led by Said Musa achieves a landslide victory at the August general election, taking 26 out of 29 seats in the National Assembly.
2003 – PUP-led Said Musa wins a second term, taking 22 of 29 seats in the National Assembly in the March general election.
2008 - The UDP win 26 of 31 seats in the National Assembly as the PUP are voted out in the February general election. Dean Barrow becomes the first Black Prime Minister of Belize
2008 – Foreign Ministers of Belize and Guatemala sign the Special Ministerial Agreement as a first step to referring the border dispute to the ICJ
Belize (formerly British Honduras) is the only Commonwealth country in Central America. As a British Dependent Territory, Belize enjoyed internal self-government, with some responsibility for external affairs from 1964 until full independence in 1981. Over 300 years of history shared with Britain bequeathed her the English language, a Westminster-style parliamentary democracy, as well many other state institutions similar to the UK's own.
When Guatemala became independent in 1821, it claimed it had inherited the previous Spanish claim to the Southern part of Belize. Belize became self-governing in 1964. From 1975 successive UN resolutions endorsed Belize's right to self-determination, independence and territorial integrity. In 1981 Belize became an independent state recognised by all nations except Guatemala. As relations improved, Guatemala recognised Belize as a sovereign and independent state in September 1991, though maintaining a territorial claim on Belize.
Since 2000, Belize and Guatemala have held a series of meetings under the auspices of the Organisation of American States (OAS) in an attempt to resolve the territorial dispute through peaceful negotiation. On 8 November 2000, Belize and Guatemala signed an Agreement on Confidence Building Measures (CBM's) which provided a framework for managing disagreements and preventing incidents in the Adjacency Zone (Buffer Zone extending 1km east and west of the border line).
Two OAS-sponsored facilitators, one each appointed by Belize and Guatemala, presented comprehensive recommendations to the Governments of Belize and Guatemala on 16 September 2002, proposing how the dispute could be settled and calling for referendums within 60 days of an agreement being signed. Both governments made the proposals public on 17 September. Although the Belize Government publicly supported the recommendations, the Guatemalan Government felt it could not.
Since then, the Governments of Belize and Guatemala have been working with the OAS to secure an agreement to extend the CBM's as well as a process for maintaining the OAS facilitators' recommendations. Both governments signed an agreement at the OAS Headquarters in Washington on 7 February 2003 covering these two issues. In late August 2003 Guatemala officially notified the OAS it could not accept the recommendations as they stood, citing constitutional difficulties. In the meantime, the OAS established a 'Group of Friends' to encourage Belize and Guatemala to resolve their dispute. The UK agreed to become a member of the 'Group of Friends' on 1 September 2003.
In September 2005 Belize and Guatemala signed a Framework for Negotiation and Confidence Building Measures agreement. The Framework for Negotiation agreed that both sides, with OAS facilitation, would meet every 45 days and look to resolve the issues subject to dispute whilst the Confidence Building Measures aimed to build confidence between both sides, particularly in the Adjacency Zone created in 2002. In November 2007 the Secretary General of the OAS determined that it was not possible to agree on any of the issues and he recommended that the differendum be submitted to independent arbitration. In December 2008 , under the auspices of the OAS, the Foreign Ministers for Belize and Guatemala signed a Special Agreement publicly setting out their intention to take the case to the International Court of Justice (ICJ) for international arbitration. The Special Agreement also set out the rules of engagement for the ICJ case and the question to be asked at the national referendums (which are required in both countries before the case can be referred to the ICJ). The UK supports this route as a means to find a long term and sustainable resolution to the differendum.
FCO Minister’s comments on signing of the Special Agreement
Belize is a member of the Commonwealth, UN and OAS. It has strong ties with English-speaking Caribbean states through its membership of CARICOM and has sought to strengthen ties with its neighbours in Central America through its membership of SICA.
As a Commonwealth Realm, Belize shares the same language as the UK and its political institutions are rooted in UK practice. Legal, education and health systems are established along British lines and there is a similar tradition of non-governmental organisations and respect for human rights. Aid, commercial and defence relations with the UK are also strong.
The UK supports Belize's pro-poor policies aimed at improving the quality of life for its people, and bringing about a sustainable environment. The UK continues to support Belize's sovereignty and territorial integrity and its efforts to find a peaceful resolution to its territorial dispute with Guatemala.
The Foreign & Commonwealth Office/Department for International Development/Ministry of Defence are jointly funding a number of projects aimed at reducing the potential for conflict along the Belize/Guatemala border. The UK has spent over £3.5m over since 2003 and will continue to work with the Organisation of American States (OAS) to ensure that our projects complement the OAS process aimed at facilitating a peaceful border settlement between Belize and Guatemala.
Identified as a small-scale drugs producer and involved in both the illegal drugs trade and money-laundering, the Belize government is working with both the US and the UK to combat these issues.
July 2008: Foreign Minister Wilfred Elrington visits UK for UK Caribbean Forum
November 2005: Said Musa, then Prime Minister, as part of the Caribbean Heads of Government delegation meeting the British Prime Minister.
December 2003: Said Musa, then Prime Minister, as part of the Caribbean Heads of Government delegation meeting the British Prime Minister.
June 2000: Said Musa, then Prime Minister, as a Guest of Government.
April 2008: Meg Munn, then FCO Minister for Latin America
January 2004: Bill Rammell, then FCO Minister for Latin America.
May 2002: Dr Denis MacShane, then FCO Minister for Latin America.
March 2002: HRH The Duke of York
April 2001: HRH The Princess Royal
July 2000: John Battle, then FCO Minister.
January 2000: Peter Kilfoyle, then Minister at the Ministry of Defence
February 1994 HM The Queen and the Duke of Edinburgh
Belize is about the size of Wales. Much of the country is unpopulated forest area. It lies off the Caribbean coast of Central America, bordering Mexico and Guatemala. It has a well-preserved environment and the world's fifth longest barrier reef and the longest coral reef in the Western Hemisphere (184 miles long) running along the offshore islands (or Cayes).
The economy of Belize was traditionally based on forestry, mainly the export of logs, wood and mahogany. The economy is now based on agriculture and non-traditional export sectors such as marine products and tourism.
UK exports to Belize in 2008 totalled £7.9m and UK imports from Belize for the same period was £36.2m. [Statistical Institute of Belize]. Key exports include food and beverages, machinery and transport equipment and chemicals. Imports from Belize are chiefly vegetables, fruits and sugar. Major UK investors in Belize are Fyffes, Booker Tate, Kier Caribbean and Halcrow.
UK Trade & Investment Country Profile: Belize
In Belize, future DFID efforts will be focused at a strategic level on promoting greater cohesion, policy dialogue and further sustainable progress in those areas covered by the Commonwealth Debt Initiative (CDI) criteria, namely progress on addressing poverty, governance and economic management. DFID will also continue to support Belizean development efforts through regional approaches and institutions.
The EU gives aid to Belize through the Cotonou Agreement which replaced the Lome Convention in 2003. Belize has been allocated €11.8 million from the European Development Fund for 2008-2013, focussing largely on rural development. During the period 2006-2010 Belize, as a Sugar Protocol Country, is expected to receive a total of €48.2 million from the EU in order to help improve the efficiency of cane production, processing and economic diversification. From 1999-2008 Belize has received a further €27.7 million to help modernise its banana production industry.
In the first post-independence elections in 1984, the centre-right United Democratic Party (UDP), led by Manuel Esquivel, defeated the centre-left People's United Party (PUP), which under George Price had dominated national politics for nearly 30 years. Price was returned to power at the 1989 elections, but lost again in 1993 to the UDP. At the 1998 general election the PUP, led by Said Musa, achieved a landslide victory. The new government's agenda was strongly pro-poor and expansionary.
At the 2003 general election, the incumbent PUP government was re-elected for a second consecutive term.It was a second landslide victory for the PUP, winning 22 of the seats in the House of Representatives compared to the UDP's 7, and 53% of the popular vote compared to the UDP's 45%. It was also historic: this was the first time a government had been re-elected since independence in 1981.
The economy of Belize was traditionally based on forestry, mainly the export of logs, wood and mahogany. The economy is now based on agriculture and non-traditional export sectors such as marine products and tourism.
UK exports to Belize in 2008 totalled £7.9m and UK imports from Belize for the same period was £36.2m. [Statistical Institute of Belize]. Key exports include food and beverages, machinery and transport equipment and chemicals. Imports from Belize are chiefly vegetables, fruits and sugar. Major UK investors in Belize are Fyffes, Booker Tate, Kier Caribbean and Halcrow.
Belize has ratified the following international human rights treaties:
International Covenant on Civil and Political Rights; International Convention on the Elimination of all forms of Racial Discrimination; Convention on the Rights of the Child; Convention on the Elimination of all forms of Discrimination Against Women; Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment; Belize is also a Party to the American Convention on Human Rights and has accepted the jurisdiction of the Inter-American Court of Human Rights based in San José.
In May 2009, Belize’s human rights record was reviewed under the Human Rights Council’s Universal Periodic Review mechanism. The Government of Belize adopted 36 recommendations of what to focus on during the next four years. The report of the working group for Belize’s review, and other related documents can be viewed here on the UPR website.
The UK has supported a campaign to promote women's human rights in Belize and helped to set up the National Aids Commission in Belize, which HRH The Princess Royal opened in April 2001. We continue to lobby Belize for abolition of the death penalty. Belize has had a moratorium in place since 1985. We have also supported the creation of a Human Rights Centre in Belize. The UK actively participated in the review of Belize’s human rights situation at the Human Rights Council in May 2009.
The Belize Government generally has a good human rights record. There have been some alleged cases of excessive use of force including murder, arbitrary arrest and detention by the police, but these are the exception. Prison conditions are poor, though improving under the private not-for-profit management of the KOLBE Foundation. There are some concerns regarding the rights of children and women, despite national education and awareness campaigns.