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Saint Kitts and Nevis (10/06)For the most current version of this Note, see Background Notes A-Z.
PROFILE OFFICIAL NAME: Geography People Government Economy HISTORY The English and French held St. Kitts jointly from 1628 to 1713. During the 17th century, intermittent warfare between French and English settlers ravaged the island's economy. Meanwhile Nevis, settled by English settlers in 1628, grew prosperous under English rule. St. Kitts was ceded to Great Britain by the Treaty of Utrecht in 1713. The French seized both St. Kitts and Nevis in 1782. GOVERNMENT AND POLITICAL CONDITIONS St. Kitts and Nevis has enjoyed a long history of free and fair elections, although the outcome of elections in 1993 was strongly protested by the opposition and the Eastern Caribbean Regional Security System (RSS) was briefly deployed to restore order. The elections in 1995 were contested by the two major parties, the ruling People's Action Movement (PAM) and the St. Kitts and Nevis Labor Party. Labor won seven of the 11 seats, with Dr. Denzil Douglas becoming prime minister. In the March 2000 elections, Denzil Douglas and the Labor Party were returned to power, winning eight of the 11 seats in Parliament. The Nevis-based Concerned Citizens Movement (CCM) won two seats and the Nevis Reformation Party (NRP) won one seat. The PAM party was unable to obtain a seat. The constitution gives Nevis considerable autonomy. Nevis has an island assembly, a premier, and a deputy governor general. Under certain specified conditions, it may secede from the federation. In accordance with its rights under the Constitution, in 1996 the Nevis Island Administration under the Concerned Citizens’ Movement (CCM) of Premier Vance Amory initiated steps towards secession from the Federation, the most recent being a referendum in 1998 that failed to secure the required two-thirds majority for secession. In the July 10, 2006 Nevis elections for the Nevis Island Administration, the NRP won three of the five seats; the CCM won two. The NRP’s Joseph Parry assumed the premiership of Nevis. While opposing secession, the Government acknowledged the constitutional rights of Nevisians to determine their future independence. Constitutional safeguards include freedom of speech, press, worship, movement, and association. Like its neighbors in the English-speaking Caribbean, St. Kitts and Nevis has an excellent human rights record. Its judicial system is modeled on British practice and procedure and its jurisprudence on English common law. Principal Government Officials The embassy of St. Kitts and Nevis is located at 3216 New Mexico Ave., NW, Washington, D.C. 20016 (tel. 202-686-2636). ECONOMY The Government instituted a program of investment incentives for businesses considering the possibility of locating in St. Kitts or Nevis, encouraging both domestic and foreign private investment. Government policies provide liberal tax holidays, duty-free import of equipment and materials, and subsidies for training provided to local personnel. Tourism has shown the greatest growth and is now a major foreign exchange earner for St. Kitts and Nevis. The economy of St. Kitts and Nevis experienced strong growth for most of the 1990s, but hurricanes in 1998 and 1999 and the September 11, 2001 terrorist attacks hurt the tourism-dependent economy. Economic growth picked up in 2004, with a real GDP growth rate of 6.4%, followed by another year of strong growth in 2005, when real GDP grew by 4.9%Significant new investment in tourism, including a 648-room Marriott hotel and convention center that opened in December 2002, as well as other resort projects, are contributing to this improved economic performance. Consumer prices have risen marginally over the past few years. The rate of inflation, as measured by the change in the CPI, rose on average by 3.6% in 2005, compared with 2.3% in 2004 and 2.2% in 2003. St. Kitts and Nevis is a member of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the Eastern Caribbean dollar (EC$) for all members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB has kept the EC$ pegged at EC$2.7+US$1. FOREIGN RELATIONS U.S.-ST. KITTS AND NEVIS RELATIONS The United States seeks to help St. Kitts and Nevis develop economically and to help strengthen its moderate, democratic, parliamentary form of government. St. Kitts and Nevis is a beneficiary of the U.S. Caribbean Basin Initiative. U.S. assistance is primarily channeled through multilateral agencies such as the World Bank and the Caribbean Development Bank (CDB), as well as the USAID office in Bridgetown, Barbados. In addition, St. Kitts and Nevis benefits from U.S. military exercises and humanitarian civic action construction projects. St. Kitts and Nevis is strategically placed in the Leeward Islands, near maritime transport lanes of major importance to the United States. St. Kitts and Nevis' location close to Puerto Rico and the U.S. Virgin Islands makes the two-island federation attractive to narcotics traffickers. To counter this threat, the Government of St. Kitts and Nevis cooperates with the U.S. in the fight against illegal narcotics. In 1995, the Government signed a maritime law enforcement treaty with the United States, later amended with an overflight/order-to-land amendment in 1996. St. Kitts and Nevis also signed an updated extradition treaty with the U.S. in 1996, and a mutual legal assistance treaty in 1997. St. Kitts and Nevis is a popular American tourist destination. In the aftermath of September 11, 2001, tourism declined, but the islands have seen growing numbers of visitors in recent years. Fewer than 1,000 U.S. citizens reside on the island, although students and staff of Ross University Veterinary School and the Medical University of the Americas (Nevis) constitute a significant population of U.S. citizens. Principal U.S. Embassy Officials The United States maintains no official presence in St. Kitts and Nevis. The ambassador and embassy officers are resident in Barbados and frequently travel to St. Kitts and Nevis. A U.S. consular agent residing in nearby Antigua, however, assists U.S. citizens in St. Kitts and Nevis. The U.S. Embassy in Barbados is located in the Canadian Imperial Bank of Commerce Building, Broad Street, Bridgetown (tel: 246-436-4950; fax: 246-429-5246). Consular Agent: Rebecca Simon, Hospital Hill, English Harbor, Antigua Tel: (268) 463-6531. Other Contact Information Caribbean/Latin American Action |
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