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South America and South Atlantic Islands

Falkland Islands (British Overseas Territory)

 Flag of Falkland Islands


Last reviewed: 26 June 2009

Country information

ECONOMY

Basic Economic Facts

GDP: £75 million (FIG estimate 2006)
GDP per head: £25,380 (FIG estimate 2006)
Major Industries: Fisheries, Tourism, Agriculture
Exchange rate: UK£1 = FI£1

Since 1982 the economy of the Islands has grown rapidly. Initially this was as aresult of UK development aid, but by 1992 the Islands were self-sufficient in alll areas except defence.

The Falkland Islands Government’s stated aim is to ensure a diverse and sustainable economy for the future. The latest Island Plan (2008 – 2012) is available at their website. It outlines their vision for improved financial management, quality of life and communications while ensuring a sustainable economy.


Major Industries

In 1987 the Falklands Islands Government started licensing all fishing within 150 nautical miles of the Falklands, extending the limit to 200 nautical miles in 1990. These license fees now generate over £20 million per annum and make up roughly half of the government's revenue.

The role of tourism in the Islands' economy is also increasing. Tourist numbers continue to grow, with many attracted by the diverse wildlife. Besides the tourists who fly in to stay on the Islands, the number of cruise ship passengers making the day trips to Stanley and the surrounding countryside has grown significantly. Between October 2007 and April 2008 over 62,000 cruise ship passengers were cleared to land.

Agriculture, the chief industry for most of the last century, remains an important part of the Islands' economy. Though its performance in recent years has been poor, it remains one of the largest sectors for employment outside of the public sector. The government has recently encouraged the modernisation of this sector, for example setting up a modern abattoir designed to meet EU standards and strongly supporting organic farming.

Social Services

Medical treatment is provided free for both Islanders and residents, with a good level of general health care.  There is only one hospital in Stanley, but it is modern and has a full complement of medical, dental and nursing staff.  However, given the size of the population its medical facilities are understandably limited.  Therefore in cases of critical illness, or where specialist medical knowledge is not available on Island, the Falkland Islands Government can provide for patients to be medically evacuated by air to Chile or the UK.
 
Social care needs are also provided free by the Falkland Islands Government.  These include caring for the elderly (including the provision of some sheltered housing), looking after those with physical disabilities or long-term mental health problems, as well as providing child care services.  

Education is free and compulsory for all children between the ages of 5 and 16. The Islands’ schools are well equipped and follow the English curriculum.  The Falkland Islands Government also provides funds or grants for students who are able and willing to study beyond the age of 16 to do so abroad.  Most of these students choose to study in the UK.  In 2006, roughly 25% of the Islanders had tertiary qualifications.  

Energy

The Falkland Island Government has pushed to increase the use of wind power technology.  In addition to protecting the environment, this has reduced the need for imported fuel oil and lowered energy costs on the Islands.  Twenty five percent of Stanley’s energy supply is now provided by wind turbines and there has been a major take up of this technology in the settlements and farms outside Stanley.  

As a result of recent rising oil prices, the waters surrounding the Falkland Islands have again become an attractive area for major oil companies to explore for new reserves of oil or gas. This potential sector is still in its infancy. Some exploratory drilling was carried out in 1998. But the major oil companies pulled out of the area when the price of oil dropped dramatically in the late Nineties.

The policy for developing a potential offshore hydrocarbons sector is primarily a matter for the Falkland Islands Government.  However, the UK Government maintains a number of constitutional and other legal safeguards in this area.  

The UK Government’s policy has been - and continues to be - to support the Falkland Islands governments aim in developing a hydrocarbons sector.

Security

The British Government's 1998 Strategic Defence Review stated that the security of the Overseas Territories was a fundamental UK governmental responsibility. To ensure that this responsibility is discharged in the Falkland Islands the Commander of the British Forces South Atlantic Islands, currently Air Commodore Gordon Moulds, maintains a force comprising of air, sea and land assets - with the additional capability to call on reinforcements if needed.  Adjustments of these assets are made from time to time, for example to reflect increased efficiency or new technology, but such adjustments do not affect the UK’s ability to defend the Territory or its people.

Although the Islanders are not able to finance the above defence requirements themselves, the Falkland Islands Government funds and is responsible for the Falkland Islands Defence Force.  This is a locally maintained volunteer unit similar to the UK’s Territorial Army.  It works alongside the UK military to ensure the security of the islands.

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Contacts

Falkland Islands, Stanley, Government House

Address:

Government House
Stanley, FIQQ 1ZZ

Telephone:

(500) 28200
(500) 27110 Secretariat for Chief Executive

Fax:

(500) 28201

Email: gov.house@horizon.co.fk

Office hours:

GMT (early Sept to Mid April): Mon-Fri: 1100-1500 / 1615-1930

GMT (Mid April to early Sept): Mon-Fri: 1200-1600 / 1715-2030

Local Time: Mon-Fri: 0800-1200 / 1315-1630