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Belize (04/01)For the most current version of this Note, see Background Notes A-Z. PROFILE Official Name: Geography People Government Economy PEOPLE Most Belizeans are of multiracial descent. About 46.4% of the population is of mixed Mayan and European descent (Mestizo); 27.7% are of African and Afro-European (Creole) ancestry; about 10% are Mayan; and about 6.4% are Afro-Amerindian (Garifuna). The remainder, about 9.5%, includes European, East Indian, Chinese, Middle Eastern, and North American groups. English, the official language, is spoken by virtually all except the refugees that arrived during the past decade. Spanish is the native tongue of about 50% of the people and is spoken as a second language by another 20%. The various Mayan groups still speak their original languages, and an English Creole dialect (or "Kriol" in the new orthography), similar to the Creole dialects of the English-speaking Caribbean Islands, is spoken by most. The rate of functional literacy is 75.1%. About 60% of the population is Roman Catholic; the Anglican Church and other Protestant Christian groups account for most of the remaining 40%. Mennonite settlers number about 7,160. HISTORY Great Britain first sent an official representative to the area in the late 18th century but Belize was not formally termed the "Colony of British Honduras" until 1840. It became a crown colony in 1862. Subsequently, several constitutional changes were enacted to expand representative government. Full internal self-government under a ministerial system was granted in January 1964. The official name of the territory was changed from British Honduras to Belize in June 1973, and full independence was granted on September 21, 1981. GOVERNMENT AND POLITICAL CONDITIONS The National Assembly consists of a House of Representatives and a Senate. The 29 members of the House are popularly elected to a maximum 5-year term. Of the Senate's eight members, five are elected by the prime minister, two by the leader of the opposition, and one by the governor general on the advice of the Belize Advisory Council. The Senate is headed by a president who is a non-voting member appointed by the governing party. Currently, the Belize Government is controlled by the People's United Party (PUP) which won 26 of the 29 seats in the House of Representatives on August 27, 1998. The United Democratic Party (UDP) won the other three seats. Dean Barrow is the leader of the opposition. The UDP governed Belize from 1993-98; the PUP had governed from 1989-93; and the UDP from 1984-89. Before 1984, the PUP had dominated the electoral scene for more than 30 years and was the party in power when Belize became independent in 1981. Prime Minister Said Musa has an ambitious plan to encourage economic growth while furthering social-sector development. Belize traditionally maintains a deep interest in the environment and sustainable development. A lack of government resources seriously hampers these goals. On other fronts the Government is working to improve its law enforcement capabilities. A long-running territorial dispute with Guatemala continues although cooperation between the two countries has increased in recent years across a wide spectrum of common interests, including trade and environment. Seeing itself as a bridge, Belize is actively involved with the Caribbean nations of CARICOM, and also has taken steps to work more closely with its Central American neighbors as a new member of SICA. Members of the independent judiciary are appointed. The judicial system includes local magistrates, the Supreme Court, and the Court of Appeal. Cases may under certain circumstances be appealed to the Privy Council in London. However, in 2001, Belize joined with most members of CARICOM to campaign for the establishment of a "Caribbean Court of Justice." The country is divided into six districts: Corozal, Orange Walk, Belize, Cayo, Stann Creek, and Toledo. The Belize Defense Force (BDF), established in January 1973, consists of a light infantry force of regulars and reservists along with small air and maritime wings. The BDF, currently under the command of Brig. Gen. Cedric Borland, assumed total defense responsibility from British Forces Belize (BFB) on January 1, 1994. The United Kingdom continues to maintain the British Army Training Support Unit Belize (BATSUB) to assist in the administration of the Belize Jungle School. The BDF receives military assistance from the United States and the United Kingdom. Principal Government Officials Balderamos-Garcia Attorney General and Minister of Information--Godfrey Smith Ambassador to the United States and the OAS--Lisa Shoman Belize maintains an embassy in the United States at 2535 Massachusetts Avenue NW, Washington, DC 20008 (Tel: 202-332-9636; Fax: 202-332-6888) and a consulate in Los Angeles. Belize travel information office in New York City: 800-624-0686. ECONOMY Domestic industry is limited, constrained by relatively high-cost labor and energy and a small domestic market. The U.S. Embassy in Belize City knows of some 185 U.S. companies that have operations in Belize, including MCI, Duke Energy International, Archer Daniels Midland, Texaco, and Esso. Tourism attracts the most foreign direct investment although significant U.S. investment also is found in the energy, telecommunications, and agricultural sectors. A combination of natural factors--climate, the longest barrier reef in the Western Hemisphere, numerous islands, excellent fishing, safe waters for boating, jungle wildlife, and Mayan ruins--support the thriving tourist industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture. In 2000, tourist arrivals totaled 189,634 (more than 110,000 from the U.S.) and tourist receipts amounted to $113.3 million. Belize's investment policy is codified in the Belize Investment Guide, which sets out the development priorities for the country. The "Country Commercial Guide" for Belize is available from the U.S. Embassy's Economic/Commercial section and on the Web at http://www.state.gov/www/about_state/business/com_guides/2001/wha/index.html Infrastructure Several capital projects are either currently underway or are programmed to start in fiscal year 2001/2002. The largest of these is a $15 million rural electrification program to be jointly implemented by the government and Belize Electricity Limited (BEL). In addition, the government will continue to implement an Inter-American Development Bank Emergency Reconstruction Fund of $20 million aimed at restoring essential services such as health and education facilities and transportation networks to communities which were severely damaged by Hurricane Keith. The government will also invest close to $4.2 million in projects targeted at poverty alleviation across Belize. Initiated in 1999, the Ministry of Agriculture and Fisheries, through the Belize Agricultural Health Authority, will continue to implement the IDB-funded "Modernization of Agricultural Health Project." This $2.5 million project seeks to improve the competitiveness of Belize's agricultural products and thus enhance the ability of Belizean farmers and processors to maintain and expand the sale of their high-quality products to foreign markets. A $5 million soybean project, funded by the Brazilian Government, is scheduled to begin in 2001 and is intended to assist northern Belize farmers to diversify away from sugarcane cultivation. The government also plans to invest $9.85 million to complete the rehabilitation of the Hummingbird Highway, as well as investing $9.5 million in its health-sector reform program. Another $9 million will be invested under the IDB-funded "Land Management Project" over the next 2 years. The Ministry of Tourism is confident that another IDB-funded project, the "Tourism Development Project," will make Belize the Mundo Maya centerpiece for travelers to Central America. The government will spend close to $1.4 million in improving access to archaeological sites in Belize, especially "Caracol." Using a generous soft loan from Taiwan, the government is funneling $50 million toward the construction of low-cost housing. Trade Belize continues to rely heavily on foreign trade with the United States as its number one trading partner. Total imports in 2000 totaled $446 million while total exports were only $228.6 million. In 2000, the U.S. accounted for 48.5% of Belize's total exports and provided 49.7% of all Belizean imports. Other major trading partners include the U.K., European Union, Canada, Mexico, and Caribbean Common Market (CARICOM) member states. Belize aims to stimulate the growth of commercial agriculture through CARICOM. However, Belizean trade with the rest of the Caribbean is small compared to that with the United States and Europe. The country is a beneficiary of the Caribbean Basin Initiative (CBI), a U.S. Government program to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products. Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI. U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry. EU and U.K. preferences also have been vital for the expansion and prosperity of the sugar and banana industries. FOREIGN RELATIONS Negotiations proceeded for many years, including one period in the 1960s in which the U.S. Government sought unsuccessfully to mediate. A 1981 trilateral (Belize, Guatemala, and the United Kingdom) "Heads of Government Agreement" was not implemented due to disagreements. Thus, Belize became independent on September 21, 1981, with the territorial dispute unresolved. Significant negotiations between Belize and Guatemala, with the United Kingdom as an observer, resumed in 1988. Guatemala recognized Belize's independence in 1991 and diplomatic relations were established. Negotiations between Belize and Guatemala resumed on February 25, 2000, in Miami, Florida, but were suspended due to a border incident that occurred February 24, 2000. Further talks were held March 14, 2000, between the two countries at the Organization of American States (OAS) in Washington, DC, in the presence of the OAS Secretary General. Eventually the two parties agreed to establish an "adjacency zone" extending one kilometer on either side of the 1859 treaty line, now designated the "adjacency line," and to continue negotiations aimed at resolving their dispute. The Guatemalan claim remains unresolved, however. In order to strengthen its potential for economic and political development Belize has sought to build closer ties with the Spanish-speaking countries of Central America to complement its historical ties to the English-speaking Caribbean states. Recent foreign policy initiatives include joining with the other Central American countries in signing the CONCAUSA Agreement on regional sustainable development and becoming a full member of the Central American Integration System (SICA) Belize is a member of CARICOM which was founded in 1973. In 1990, it became a member of the OAS. As a member of CARICOM Belize strongly backed efforts by the United States to implement UN Security Council Resolution 940 designed to facilitate the departure of Haiti's de facto authorities from power. The country agreed to contribute military personnel to the Multinational Task Force which restored the democratically elected Government of Haiti in October 1994 and to the United Nations Mission in Haiti (UNMIH). U.S.-BELIZEAN RELATIONS International crime issues dominate the agenda of bilateral relations between the U.S. and Belize. The U.S. is working closely with the Government of Belize to fight illicit narcotic trafficking. In 1996, the United States and Belize signed a stolen vehicle treaty, and in 2000 they signed an extradition treaty and a mutual legal assistance treaty (MLAT). Both governments seek to control the flow of illegal immigrants to the U.S. through Belize. The United States is the largest provider of economic assistance to Belize, contributing approximately $4.17 million in various bilateral economic and military aid programs to Belize in FY 2000. The United States provided nearly $1 million in assistance to Belize to support its relief and recovery efforts following Hurricane Keith, which devastated much of the country in October 2000. The U.S. Agency for International Development (USAID) closed its Belize office in August 1996 after a 13-year program during which it provided $110 million worth of development assistance to Belize. In addition, during the past 34 years, almost 2,000 Peace Corps volunteers have served in Belize. In April 2001, the Peace Corps had 47 volunteers working in Belize. In Punta Gorda, the International Bureau of Broadcasting/Voice of America (IBB/VOA) operates a medium-wave radio relay station which broadcasts to the neighboring countries of Honduras, Guatemala, and El Salvador. The U.S. military has a diverse and growing assistance program in Belize which included the construction of seven schools and four water wells by National Guard soldiers in Stann Creek District in 2000. Another "New Horizons" humanitarian assistance project is scheduled for 2003. Private American investors, who are responsible for some $250 million of investment in Belize, continue to play a key role in Belize's economy, particularly in the tourism sector. Principal U.S. Officials The U.S. Embassy is located in Belize City at the corner of Gabourel Lane Other useful contacts U.S. Department of Commerce |
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