Dominica

DOMINICA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS DOMINICANS
DEPENDENCIES
BIBLIOGRAPHY

Commonwealth of Dominica

Dominica

CAPITAL: Roseau

FLAG: On a green background appears a cross composed of yellow, black, and white stripes; in the center is a red disk with 10 yellow-bordered green stars surrounding a parrot.

ANTHEM: Isle of Beauty, Isle of Splendor.

MONETARY UNIT: The East Caribbean dollar (ec$) of 100 cents is the national currency. There are coins of 1, 2, 5, 10, and 25, and 1 dollar, and notes of 5, 10, 20, and 100 East Caribbean dollars. ec$1 = us0.37037 (or us$1 = ec$2.7; as of 2004).

WEIGHTS AND MEASURES: The metric system is being introduced, but imperial measures remain in common use.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; CARICOM Day, 2 July; Bank Holiday, 1st Monday in August; National Days, 3–4 November; Christmas, 25 December; Boxing Day, 26 December. Movable religious holidays include Carnival, Good Friday, Easter Monday, and Whitmonday.

TIME: 8 am = noon GMT.

LOCATION, SIZE, AND EXTENT

Although usually classified as one of the Windward Islands, Dominica, located between Guadeloupe to the n and Martinique to the s, marks the midpoint of the Lesser Antilles. To the e lies the Atlantic Ocean, to the w the Caribbean Sea. The island has an area of 754 sq km (291 sq mi) and is 47 km (29 mi) long by 26 km (16 mi) wide, with a coastline of 148 km (92 mi). Comparatively, the area occupied by Dominica is slightly more than four times the size of Washington, D.C.

Dominica's capital city, Roseau, is located on the southwest coast of the island.

TOPOGRAPHY

The most rugged island of the Lesser Antilles, Dominica is a mass of peaks, ridges, and ravines. Several mountains are over 1,200 m (4,000 ft), of which the highest is Morne Diablatins, with an altitude of 1,447 m (4,747 ft). The whole land mass is of recent volcanic formation, and the mountain peaks are cones of volcanoes with lava craters and small lakes of boiling water. The largest of these is Boiling Lake near Roseau, which is the second-largest thermally active lake in the world. The coastal rim of the island is a thin strip limited by the mountainsides, which extend directly down to the shore.

CLIMATE

The climate of Dominica is mildly tropical; in the winter months the temperature averages 25°c (77°f); in the summer, 28°c (82°f). The spring months are the driest; the heaviest rains fall during late summer. The average yearly rainfall ranges from about 191 cm (75 in) on the drier Caribbean coast to 508 cm (200 in) in mountainous inland areas. Destructive hurricanes coming in from the Atlantic Ocean can be expected during the late summer months.

FLORA AND FAUNA

Since few plantations could be established on Dominica's rugged terrain, the island is still covered with forests, some of which have never been cut except by the destructive winds of a hurricane. On one 4-hectare (10-acre) plot in the rain forest, as many as 60 species of trees may be identified. Some of the most common are chataignier, gommier, carapite, breadfruit, white cedar, and laurier.

There are no large wild animals, but the agouti and manicou can be found. Some 135 species of birds inhabit Dominica. The coastal waters abound in fish.

ENVIRONMENT

As a member of the Organization of Eastern Caribbean States (OECS) formed in 1981, Dominica shares environmental problems common to the area's island countries. Water shortages are among the most significant. Other areas of concern are pollution from chemicals used in farming and untreated sewage. The nation's forests are endangered by the expansion of farming activities. Hurricanes are the most destructive natural threat to the environment.

Pollution of the nation's coastal waters threatens the tourist trade in the area. Two extensive areas have been set aside as nature reserves. The southern reserve, which constitutes Morne Trois Pitons National Park, is a natural UNESCO World Heritage Site that covers an area of 6,500 hectares (16,100 acres). In it are the nesting places of the red-necked and imperial parrots, both endangered species of Dominica.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 1 type of mammal, 4 species of birds, 4 types of reptiles, 2 species of amphibians, 11 species of fish, and 11 species of plants. The tundra peregrine falcon and the green sea and hawksbill turtles are classified as endangered.

POPULATION

The population of Dominica in 2005 was estimated by the United Nations (UN) at 70,000, which placed it at number 184 in population among the 193 nations of the world. In 2005, approximately 8% of the population was over 65 years of age, with another 28% of the population under 15 years of age. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.8%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 78,000. The population density was 93 per sq km (242 per sq mi), one of the lowest in the West Indies.

The UN estimated that 71% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.67%. The capital city, Roseau, had a population of 27,000 in that year.

AIDS was the leading cause of death among people ages 15–44 in the Eastern Caribbean region.

MIGRATION

There are no restrictions on foreign travel, emigration, or repatriation. In 2005 the net migration rate was estimated as -11.6 migrants per 1,000 population. The number of migrants living in Dominica in 2000 was 4,000, close to 5% of the total population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

The vast majority of Dominicans are descendants of African slaves brought to the island in the 17th and 18th centuries. Some of the population are of mixed descent and a small minority are of European origin. Dominica is the only island of the Caribbean on which descendants of the native Carib population still make up a community of significant size. Isolation and the establishment of a 1,500-hectare (3,700-acre) reserve have enabled the Caribs, who number about 3,000 people, to preserve their identity.

LANGUAGES

English is the official language of Dominica. Nearly all Dominicans also speak a French patois, based on a mixture of African and French grammar and consisting mostly of French words, with some English and Spanish borrowings. Some islanders speak French as their first language.

RELIGIONS

About 61% of the population are Roman Catholic. Evangelical churches have a membership that accounts for about 18% of the population. About 6% of the people are Seventh-Day Adventists and 3.7% are Methodists. Other minority groups include Anglicans, Jehovah's Witnesses, Muslims, Baha'is, Rastafarians, Baptists, Nazarenes, and Brethren Christians. About 6% of the population does not claim any religious affiliation.

Religious freedom for all faiths is provided for in the constitution and this right is generally respected in practice. All religious groups must register with the government to receive nonprofit status. Certain Christian holidays are observed as national holidays. The Dominica Christian Council and the Dominica Association of Evangelical Churches offer opportunities for interreligious dialogue on religious and social matters.

TRANSPORTATION

A paved road circles the northern two-thirds of the island, connecting the two main towns, Roseau and Portsmouth, with Melville Hall Airport in the northeast. Much of the road system was severely damaged by a 1979 hurricane; reconstruction averages about 16 km (10 mi) a year. There were about 780 km (485 mi) of roadways in 2002, of which 390 km (242 mi) were paved. There are 2,770 passenger cars and 2,830 commercial motor vehicles on the island. A deepwater harbor has been completed near Roseau on Woodbridge Bay, and both Roseau and Portsmouth also receive ships. As of 2005, Dominica's merchant marine consisted of 32 ships of 1,000 GRT or over, for a total of 13,771 GRT. Dominica Air Transport and other small airlines connect the main airport with Martinique, Guadeloupe, Antigua, and Barbados. In 2004 there were two airports, both with paved runways, one is a 760-m (2,500-ft) airstrip at Canefield, about 5 km (3 mi) north of Roseau.

HISTORY

The first island sighted by Christopher Columbus on his second voyage to the New World was Dominica at which he arrived Sunday (dies dominica ), 3 November 1493. Carib Indians, whose ancestors originally had come from the Orinoco Basin in South America and, during the 14th century, had driven out the indigenous Arawaks, inhabited the island. The Caribs resisted conquest and the Spaniards soon lost interest in the island, which had no apparent mineral wealth.

In 1635, France claimed Dominica, and French missionaries visited the island seven years later, but strong Indian resistance to further contact prevented either the French or the English from settling there. In 1660, England and France declared Dominica a neutral island and left it to the Caribs. Within 30 years, however, Europeans began to settle on the island, and in 1727 the French took formal possession. Under the Treaty of Paris in 1763, however, France ceded the island to Great Britain, which then developed fortifications for its defense. French colonists established coffee plantations during the nearly forty years they held the island. The British introduced sugar production later, but the large slave plantations that characterized other West Indian islands never developed on Dominica. When Great Britain abolished slavery in the West Indies in 1834, 14,175 Dominican slaves obtained their freedom.

Dominica became the first and only British Caribbean colony to have a black-controlled legislature in the 19th century, but blacks lost most of their political power when the British government, acceding to the wishes of Dominican planters, diluted the strength of the Legislative Assembly and, in 1896, reduced Dominica to a crown colony. Great Britain governed Dominica as part of the Leeward Islands from 1871 until 1939, and in 1940 transferred governance to the Windward Islands administration. From 1958 to 1962, the island belonged to the Federation of the West Indies. Dominica became an associated state of the Commonwealth of Nations in 1967 and on 3 November 1978 became an independent republic.

In its first years of independence, Dominica had several problems. Hurricanes, especially Hurricane David in 1979, brought great destruction to the island, but the corrupt, tyrannical administration of Premier Patrick John led to numerous severe difficulties. Dominicans ousted John in June 1979, and, after a year of interim rule, Mary Eugenia Charles became prime minister in July 1980.

Charles, the first female prime minister in the Caribbean, remained in office for 15 years. (She died at the age of 86 on 6 September 2005.) Her Dominica Freedom Party received parliamentary majorities in 1985 and 1990, partly because of an improved economic picture. Charles fully supported and sent a token force to participate in the US-led intervention of the island of Grenada in October 1983.

In the early 1990s, controversy flared over the practice of granting "economic citizenship" to Asian nationals who invested $35,000 or more in the country. In response, the government implemented stiffer requirements, including licenses, waiting periods, and additional financial outlays.

Prime Minister Charles's DFP lost its majority in the 1995 elections, and Edison James, leader of the United Workers' Party, formed a new government. Under James, Dominica's economy improved, but charges of corruption concerning the continued sale of Dominican citizenship to foreigners, allegedly including gangsters and smugglers, seriously undermined his creditability. In the election held in January 2000, the UWP narrowly won a plurality of votes over the DLP and DFP. In 2000–04, UWP's Pierre Charles was prime minister.

In 2002, Pierre Charles told the Caribbean Development Bank that Dominica faced economic and financial collapse. Revenue from exports and tourism was down, and Charles cited the effects of globalization as one of the causes of Dominica's economic troubles. Charles died in office at the age of 49 in January 2004. Education Minister Roosevelt Skerrit succeeded him as prime minister. In November 2004, an earthquake damaged buildings on the north side of the island, and Prime Minister Skerrit estimated the damages would rise in the millions of dollars. Skerrit and the governing DLP won the general elections held in May 2005.

GOVERNMENT

Under the independence constitution of 3 November 1978, Dominica has a unicameral parliament, the House of Assembly, with 21 members elected by universal adult suffrage (at age 18) and 9 appointed members (5 named on the advice of the prime minister, 4 on the advice of the leader of the opposition). The term of the Assembly is five years. The prime minister and leader of the opposition nominate the president, though Parliament officially elects the head of state, who in turn appoints the prime minister and cabinet from the majority party in the assembly.

POLITICAL PARTIES

Dominica's major political parties are the Dominica Freedom Party (DFP), the Dominica Labour Party (DLP), and the United Workers' Party (UWP). The DFP held power from 1980 to 1995, led by Eugenia Charles, the first woman prime minister in the Caribbean region. (Party leadership was transferred to Brian Alleyne in 1993, but Charles remained prime minister.) The UWP dominated the 1995 elections, winning 11 of the 21 elected seats in the National Assembly. (The DFP and DLP, led by Rosie Douglas, each won 5.) Following the elections, UWP leader Edison James became prime minister. The DLP won 10 of the 21 elected seats in the 2000 election and formed a coalition government with the DFP, then led by Pierre Charles, which captured two seats. In the 2005 general election, the DLP won 52.08% of the vote (12 seats), the UWP won 43.6% of the vote (8 seats), and the DFP won 3.15% of the vote. An independent held the remaining seat in the House of Assembly. Roosevelt Skerrit, who had been chosen prime minister after the death of Pierre Charles in 2004, remained prime minister.

LOCAL GOVERNMENT

In contrast to other English-speaking islands in the Caribbean, Dominica has a well-developed local government system. There are 37 village councils, made up of both elected and appointed members. Both Roseau and Portsmouth have town councils, and Canefield has an urban council. There is a Carib Council which governs the Carib territory, set aside for indigenous peoples. There are also 10 parishes, which are administrative divisions for the national government.

JUDICIAL SYSTEM

Dominica's judicial process derives from English common law and statutory acts of the House of Assembly. The courts of first instance are the four magistrates' courts; at the second level is the Court of Summary Jurisdiction. The highest court is the Eastern Caribbean Supreme Court, based in St. Lucia, and one of its six judges must reside in Dominica and preside over the Court of Summary Jurisdiction. In exceptional cases prior to 2003, appeals were carried to the Judicial Committee of the Privy Council in the United Kingdom.

On 9 June 2003, Caribbean leaders met in Kingston, Jamaica, to ratify a treaty to establish the Caribbean Court of Justice (CCJ). The court was officially inaugurated in April 2005, in Port-of-Spain, Trinidad and Tobago. As of 2005, however, the court's jurisdiction was limited to the CARICOM states of Barbados and Guyana. The CCJ heard its first case in August 2005.

The law provides for public trial before an independent, impartial court. Criminal defendants have the right to legal counsel, and to appeal.

ARMED FORCES

A police force of 300 is in charge of law and order. Dominica, along with Antigua and Barbuda, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, is a member of the Regional Security System, established in 1985. Defense from foreign attack would come from the United States or United Kingdom.

INTERNATIONAL COOPERATION

Dominica became a member of the United Nations on 18 December 1978 and belongs ECLAC and several specialized agencies, such as the FAO, IMF, ILO, UNESCO, WHO, and the World Bank. Dominica is also a member of the WTO, OAS, the Caribbean Development Bank, the Commonwealth of Nations, G-77, CARICOM, the ACP Group, the OECS, the Association of Caribbean States (ACS), and the Alliance of Small Island States (AOSIS). The nation is an observer in the Nonaligned Movement and a member of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL). In environmental cooperation, Dominica is part of the Basel Convention, Conventions on Biological Diversity and Whaling, CITES, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change and Desertification.

ECONOMY

Bananas and other agriculture dominate Dominica's economy, and nearly one-third of the labor force works in agriculture. This sector, however, is highly vulnerable to weather conditions and to external events that affect commodity prices. With the decline of banana exports, GDP growth began declining and in the late 1980s, average annual GDP growth was 5.5%; in the early 1990s, about 3.5%, and from 1996 to 1999, 2.5%. In 2000, GDP stagnated and in 2001 there was a contraction of about 4.5% as adverse weather, a drop in tourism, and reduced export demand added to the effects of declining banana production. From 1998 to 2000, banana exports fell 24.6%, and then in the global slowdown of 2001, fell another 35.4%.

In response to decreasing European Union (EU) banana trade preferences, the government has diversified the agricultural sector, with the export of small quantities of citrus fruits and vegetables and the introduction of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangos, guavas, and papayas. Dominica also has had some success increasing its manufactured exports, primarily soap. Furthermore, Dominica recently entered the offshore financial services market.

Dominica is mostly volcanic and has few beaches; therefore, tourism has developed more slowly than on neighboring islands. Nevertheless, Dominica does have the highest mountain peak in the Caribbean. Rain forests, freshwater lakes, over 200 rivers, hot springs, waterfalls, and diving spots make it an attractive ecotourism destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital. However, development of the tourism industry remains difficult because of the rugged coastline and the absence of an international airport.

The government is promoting industrial development involving agro-processing and light industry, and hopes to build an airport with greater accessibility. After the government began a comprehensive restructuring of the economy in 2003, the 2004 GDP growth rate was reported at 3.5%. The country nearly had a financial crisis in 2003 and 2004, but it has managed to stabilize its debt and fiscal deficits using some difficult reform measures, earning the praise of international financial institutions (IFIs).

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Dominica's gross domestic product (GDP) was estimated at $384.0 million. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $5,500. The annual growth rate of GDP was estimated at -1%. The average inflation rate in 2001 was 1%. It was estimated that agriculture accounted for 18% of GDP, industry 24%, and services 58%.

It was estimated that in 2002 about 30% of the population had incomes below the poverty line.

LABOR

The labor force in 2002 (the latest year for which data was available) was estimated at 25,000. About 40% of the labor force was employed in agriculture, 32% in industry and commerce, and 28% in services. Unemployment was officially 23% in 2002.

Unions have the right to strike, organize, and engage in collective bargaining. As of 2005, unions represented about 33% of the workforce, with approximately 50% of all government employees belonging to unions as that same year. Essential services are prohibited from striking and this includes the coconut, citrus, and banana industries, as well as the port service that supports them.

The standard work week is 40 hours over 5 days. However, excessive overtime is not prohibited. The minimum wage is set by the government and varies from sector to sector. Last revised in 1989, the average wage was between us$.74 per hour and us$1.11 per hour in 2005 for most workers. These wages are not sufficient to support a family, although most workers earn more than the minimum. The minimum working age is 15 and this is generally observed without government enforcement. Children between the ages of 12 and 14 were permitted to work in certain family businesses such as farming. Occupational safety and health standards for adults and children are generally enforced by the government, and most employers comply with them.

AGRICULTURE

About 26.7% of the total land area is arable. Agricultural production was on the decline even before the 1979 hurricane disaster. The main crop of Dominica is bananas, output of which had fallen to 29,700 tons in 1978. As a result of Hurricane David, production hit a low of 15,700 tons in 1979. Agriculture suffered a further blow from Hurricane Allen in August 1980. However, after outside financial support began to rehabilitate the sector, production rose to 27,800 tons in 1981 and totaled 29,000 tons in 2004.

Agriculture accounts for about 18% of GDP and employs about 40% of the labor force. Agricultural exports amounted to $15.3 million in 2004. Most crops are produced on small farms, the 9,000 owners of which are banded together in about 10 cooperatives; there are also several large farms that produce mostly bananas for export. Coconuts and citrus fruits are grown in commercial quantities. Production for 2004 included coconuts, 11,500 tons; grapefruit, 17,000 tons; lemons and limes, 1,020 tons; and oranges, 7,200 tons. Fruits and vegetables are produced mostly for local consumption.

ANIMAL HUSBANDRY

There are about 2,000 hectares (4,900 acres) of pastureland, comprising 2.7% of the total land area. The island does not produce sufficient meat, poultry, or eggs for local consumption. In 2004 there were an estimated 13,400 head of cattle, 9,700 goats, 7,600 sheep, and 5,000 hogs. In 2004, production of meat totaled 1,364 tons; and milk, 6,100 tons.

FISHING

Before Hurricane David in 1979, some 2,000 persons earned a living fishing in coastal waters, producing about 1,000 tons of fish a year and meeting only about one-third of the local demand. The hurricane destroyed almost all of the island's 470 fishing boats; afterward, only about a dozen vessels could be reconstructed for use. In 2003, the catch was 1,103 tons, up from 552 tons in 1991.

FORESTRY

Dominica has the potential for a lumber industry. Some 46,000 hectares (114,000 acres) are classified as forest, representing 61% of the total land area. In 1962, Canadian experts produced a study indicating that over a 40-year period the island could produce a yearly output of 22,000 cu m (800,000 cu ft) of lumber. Before Hurricane David in 1979, annual output had reached about 7,500 cu m (265,000 cu ft). There are some 280 hectares (700 acres) of government land allocated to commercial forestry and about 100 hectares (240 acres) of forestland in private hands. Commercially valuable woods include mahogany, blue and red mahoe, and teak.

MINING

Dominica had no significant or recorded production of minerals in 2003, although small amounts of pumice are exported. What production there is of clay, limestone, volcanic ash, and sand and gravel is primarily for the domestic construction industry.

ENERGY AND POWER

Dominica's energy and power sector is marked by a complete lack of any proven reserves of oil, natural gas, or coal, nor does it possess any refining capacity. As a result, the country is entirely dependent upon imports to meet its consumption of fossil fuels. However, the country does have access to hydropower, which makes up a large portion of the nation's electric power generating capacity and production.

In 2002, Dominica imported an average of 820 barrels per day of refined oil products, the largest of which were gasoline at 470 barrels per day, and distillates, at 250 barrels per day. Liquefied natural gas imports for that year stood at 60 barrels per day, with kerosene and residual fuel oils each at 20 barrels per day.

Dominica's electric power sector is solely managed by a private utility the Dominica Electricity Service (Domlec). According to Domlec's 2002 annual report, the company had an installed capacity of 20,440 kW, of which diesel fueled generation accounted for 12,840 kW and hydropower at 7,600 kW. However, the Energy Information Administration (EIA) for that year placed the country's generating capacity at 19,000 kW, with hydropower and conventional thermal capacity at 8,000 kW and 11,000 kW, respectively. In addition, the company's hydropower capacity can drop sharply during a very dry season. According to Domlec's 2002 annual report, installed hydropower capacity could fall to as much as 32,000 kW. In 2002, the CIA reported that Dominica's output and consumption of electrical power was 68.41 million kWh and 63.62 kWh, respectively, while the EIA placed production and consumption of electrical power at 65 million kWh and 61 million kWh, respectively. Domlec's annual report for 2002 placed total electric power output at 80.1 million kWh.

In April 2004, Commonwealth Development Corporation (London, UK) sold its 72% stake in Domlec to WRB Enterprises (Tampa, Florida).

INDUSTRY

Dominica has only light industry and most of it is connected with the processing of agricultural products. Industrial establishments include a plant for processing coconuts into oil and copra for export, four plants to process limes and other citrus fruits, two bottling plants, two distilleries, four small apparel plants, and four small furniture factories. Dominica exports water to its Caribbean neighbors; shoes, cement blocks, furniture, soap and toiletries are also exported. Home industries produce some leather work, ceramics, and straw products. Wood products, including furniture, are produced from local timber. Portsmouth is the main boatbuilding center.

Since the 1990s, the small manufacturing sector has been expanding at a modest pace, including electronics assembly, rum, candles, and paints. Industry accounted for 24% of GDP in 2004. While services account for 58% of GDP it only hires 28% of the labor force (with comparison to agriculture, which hires 40%)

The Dominican economy has high poverty (30%), high unemployment (23%), and a low per capita GDP (us$5,400). The Dominican economy has been hurt by problems in the banana industry. The entire economy suffers when weather conditions damage the banana crop, or when the price of bananas falls. The European Union has phased out preferred access of bananas to its markets, causing banana demand to fall. In response, the Dominican government privatized the banana industry.

SCIENCE AND TECHNOLOGY

Late in 1980, Dominica created a Council for Science and Technology, under the Ministry of Education. The Caribbean Agricultural Research Development Institute has been active in more than a half-dozen projects.

DOMESTIC TRADE

Local produce markets exist in all the small villages and towns. About 40% of the work force is employed in agriculture and many foods and manufactured goods have to be imported.

The island has sought to develop preserves of its unique flora and fauna to attract tourists.

The tourism industry has reoriented many artisan jobs, such as in the fishing industry; the Dominica fleet has increased from only 913 vessels in 1994 to more than 1100 in 2000. However tourism overall has been slow to develop because of poor transport and the lack of hotel facilities and good beaches. Commercial activity is concentrated in the morning hours, since tropical rains impede afternoon travel.

FOREIGN TRADE

Dominica is well known for its exports of bananas, which reflect over a quarter of the country's commodity export revenues. Soap and cleaning products account for almost a third of exports (29%). Other exports include vegetables (3.7%), paint (3.1%), and perfume (13.7%). Exports accounted for $41.2 million in 2004 (mainly

Country	Exports	Imports	Balance
World	39.3	127.0	-87.7
Jamaica	9.0	1.6	7.4
United Kingdom	6.2	9.7	-3.5
Antigua and Barbuda	4.0	0.3	3.7
France-Monaco	3.6	3.1	0.5
Guyana	3.3	1.5	1.8
Trinidad and Tobago	2.6	23.2	-20.6
United States	2.5	47.2	-44.7
Barbados	2.0	5.5	-3.5
Saint Kitts and Nevis	1.3	0.4	0.9
Saint Lucia	1.3	3.5	-2.2
(…) data not available or not significant.

bananas, citrus fruits, soap, and cocoa). The major markets are CARICOM, 61%; the European Union, 18%; and the United States, 3%. On the other hand, imports reached $145 million in 2004, mainly of machinery and equipment, foodstuffs, manufactured articles, and cement. The major suppliers are the United States 35%, CARICOM 29%, EU 13% and Japan 5%.

Dominica is a beneficiary of the US Caribbean Basin Initiative, which grants duty-free entry into the United States for many goods. In 2004, exports totaled $41 million, with 3% going to the United States. Dominica also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM), the CARICOM Single Market and Economy (CSME), and the Organization of Eastern Caribbean States (OECS). Dominica and the other countries of the Organization of Eastern Caribbean

Current Account			-38.1
Balance on goods		-59.4
Imports	-102.4
Exports	42.9
Balance on services		26.0
Balance on income		-18.5
Current transfers		13.8
Capital Account			20.5
Financial Account			8.9
Direct investment abroad		…
Direct investment in Dominica		11.4
Portfolio investment assets		0.0
Portfolio investment liabilities		12.1
Financial derivatives		…
Other investment assets		-2.8
Other investment liabilities		-11.8
Net Errors and Omissions			17.0
Reserves and Related Items			-8.3
(…) data not available or not significant.

States (OECS) were scheduled to join the Caribbean Single Market and Economy (CSME) in June 2006.

In 2004 Dominica cut diplomatic relations with Taiwan in favor of ties with mainland China. China agreed to give aid worth more than $100 million over five years.

BALANCE OF PAYMENTS

The increasingly unfavorable balance of trade produces a current account deficit and boosts the foreign debt. Recurrent hurricanes and other natural disasters, such as an earthquake that caused millions in damages in November 2004, have added to the debt burden. Dominica hopes to be able to offset the trade deficit with tourism revenues.

The US Central Intelligence Agency (CIA) reported that in 2004 the purchasing power parity of Dominica's exports was $74 million while imports totaled $234 million resulting in a trade deficit of approximately $150 million, increasing yearly.

BANKING AND SECURITIES

The principal national banks are the National Commercial and Development Bank of Dominica and the Dominica Agricultural Industrial and Development (AID) Bank. Private commercial banks include Barclays (UK), the Royal Bank of Canada, and the Banque Française Commerciale. Dominica is a member of the Eastern Caribbean Central Bank, which issues a common currency. Dominica has no stock market, and is considered an offshore tax haven for international companies. It guarantees a 20-year tax exemption. The International Monetary Fund reported that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $39.3 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $204.1 million.

INSURANCE

Representatives of British, Canadian, and US insurance companies do business in Dominica.

PUBLIC FINANCE

Operating revenues come mostly from customs duties, excise taxes, and other taxes and fees for government services. The leading areas of expenditure are education, health, public services, housing, and defense.

The US Central Intelligence Agency (CIA) estimated that in 2001 Dominica's central government took in revenues of approximately $73.9 million and had expenditures of $84.4 million. Revenues minus expenditures totaled approximately -$10.5 million. Total external debt was $161.5 million.

TAXATION

Taxes levied by the Dominican government include a progressive personal income tax ranging from 0–40%; a business income tax of 35%; social security taxes; a 3% gross receipts tax on retail sales; and taxes on land transfers and land-value appreciation. There is no capital gains tax except the land-value appreciation tax.

CUSTOMS AND DUTIES

Specific import duties apply to food and ad valorem duties apply to other items. The government levies export duties on principal agricultural products; the charge is heavy on rum and cigarettes but lighter on bananas and coconuts. Under a 1992 Caribbean Community agreement, Dominica eliminated import licensing. Dominica adopted CARICOM's common external tariff, which ranges up to 35%. Additional duties are applied to cigarettes, rum and motor vehicles.

FOREIGN INVESTMENT

The amount of foreign investment in Dominica is limited, largely because the island lacks the infrastructure to support an industrialization program. Investment increased in the early 1990s under the Charles government, particularly in agriculture. The marketing of banana production is monopolized by European multinational corporations. Tax holidays and import-duty exemptions are offered as investment incentives. The area near the Canefield airstrip is an industrial estate and export processing zone. The government agency for industrial development has had some success attracting capital investment funds for the island. The introduction of an offshore financial industry may also attract investment, as well as increased tourism. Other investment incentives include repatriation of profits, alien landholding license fees, factory building/industrial estates, and residence/work permits.

Foreign direct investment (FDI) inflows peaked in 1997 at $21 million before falling to $6.1 million in 1998. FDI inflows recovered to $18 million in 1999 and averaged about $13 million a year in 2000 and 2001. By 2003 there was a decent increase in FDI of up to $17 million, but FDI as a percentage of GDP continues to decrease.

ECONOMIC DEVELOPMENT

Similar to its Eastern Caribbean neighbors, the main priority of Dominica's foreign relations is economic development. Dominica seeks to foster private enterprise.

Dominica's government until recently has been sensitive about market liberalization. In 1986, for example, it created an exportimport agency and announced a land-reform program, both to stimulate agriculture. Under the latter, the government purchased 800 hectares (2,000 acres) of land in prime growing areas and then guaranteed a minimum holding with security of tenure, as well as services and equipment, to small farmers and landless farm workers. As of 1994, the government encouraged agriculture expansion through a diversification program, which was aimed at improving the marketing of products and providing income guarantees for farmers who are in the process of diversifying into new crops. There was still serious concern about the implications of the restructuring of formerly protected European markets.

In August 2002, Dominica negotiated a one-year $4.3 million Stand-By Arrangement with the IMF and immediately the government implemented a 4% Stabilization Levy tax to tackle the financial crisis. Further economic austerity measures were taken while massive protests followed. But by 2003 the government began a comprehensive restructuring of the economy, which included elimination of price controls, privatization of the state banana company, and tax increases—to address Dominica's economic crisis and to meet IMF targets.

The main problem has been that the small island's economy is dependent on agriculture and thus is highly vulnerable to climatic conditions. Development of the tourist industry remains difficult because of the rugged coastline and the lack of an international airport (though the government bought land for the construction of an airport in 1999). There has been much debate over proposals to build an airport capable of handling large jet aircraft because there is concern that an increase in tourist arrivals, as well as the promotion of eco-tourism, would damage the island's finely balanced environment.

Besides tourism, the government has attempted to diversify the economy and inspire confidence in investors and the population. For example, for a time the offshore business sector of Dominica was included on a list of countries deemed to be noncooperative in the fight against money-laundering. The government subsequently tightened up banking rules and set up a financial intelligence unit. Other positive events have been the establishment of diplomatic ties with the People's Republic of China in March 2004 and the announcement by Prime Minister Skerrit in June that year that the Stabilization Levy had ended. In early 2005 a boost to the economy was given by the shooting of the feature film Pirates of the Caribbean.

SOCIAL DEVELOPMENT

Until the early 1980s, a high rate of unemployment, a markedly high rate of emigration, and very limited resources hindered the development of social service programs in Dominica. A social insurance system covers all workers from 14–60 years of age, including apprentices. Under this plan, both workers and employers contribute specific amounts to a government fund, which provides pensions for workers reaching retirement age, compensation for workers who become incapacitated, and survivor benefits. There are also sickness and maternity benefits. The social security system is funded by worker contributions of 3% of earnings (7% self-employed) and a 7% employer payroll tax. Retirement is set at age 60.

Domestic violence is prevalent. A hotline manned by volunteers is available for battered women, and the Welfare Department often helps them find temporary quarters. Apart from the constitution, there is no specific legislation in force to protect women from sex discrimination. Property ownership is given to the "head of household" which is generally male. When a man dies without a will his wife cannot inherit the property. Many women in rural areas face considerably difficulty in meeting basic needs. Children's rights are generally protected, and education is free and compulsory.

Indigenous Carib minorities face minimal discrimination, and most live on a 3,700-acre reservation set aside for them by the government in 1903. Human rights are generally respected in Dominica. However, instances of excessive police force have been reported, and prison conditions are poor.

HEALTH

In 2004 there were an estimated 49 physicians, 415 nurses, and 6 dentists per 100,000 people. The one general hospital on Dominica is in Roseau, the 195-bed Princess Margaret Hospital. There are 7 health centers and 44 clinics scattered across the island. Serious tropical diseases such as yaws and malaria have been eradicated, but owing to the high humidity and rainy conditions, tuberculosis and other respiratory diseases continue to be a problem. Intestinal parasites afflict particularly those in the early years of life. Only 7% of newborns were low birth weight. In 2005, the infant mortality rate was estimated at 14.15 per 1,000 live births. Average life expectancy for that year was 74.65 years. Approximately 99% of the country's children were immunized against measles and the same percentage for DPT, tuberculosis, and polio. There were no cases of polio or measles reported on the island.

HOUSING

Hurricane David in 1979 destroyed the homes of over four-fifths of the population. Under an emergency housing program, construction supplies were brought into the island, and shelters were built for most of the population. Most of all dwellings are detached houses. In 1993, at least 71% were owner occupied. Most houses are built through the private sector, with individuals financing their own homes. Over half of all housing units were wooden, while smaller percentages were either concrete or wood and concrete.

Since the mid-1990s, the nation has participated in a reconstruction program focusing on techniques for hurricane retrofitting. Through the Cooperative Housing Foundation, eligible residents can obtain loans to aid in the upgrade of their homes.

EDUCATION

Education is compulsory between the ages of 5 and 16. Technical and vocational studies offer practical training in technical and electrical engineering, auto mechanics, plumbing, general business, construction, and agriculture. Transportation to secondary schools is a problem for students in rural areas.

Primary school enrollment in 2003 was estimated at about 81% of age-eligible students; 83% for boys and 79% for girls. The same year, secondary school enrollment was about 92% of age-eligible students; 86% for boys and 98% for girls. It is estimated that about 91% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 19:1 in 2003; the ratio for secondary school was about 17:1. In 2003, private schools accounted for about 28% of primary school enrollment and 32% of secondary enrollment.

Higher educational facilities include a teacher training institute, a technical college, a nursing school, and a local center maintained by the University of the West Indies. In higher-level institutions, there were 34 teaching staff and 484 students in 1993. The adult literacy rate was estimated at about 94% in 2003.

As of 2003, public expenditure on education was estimated at 5% of GDP.

LIBRARIES AND MUSEUMS

A national library system of about 50,000 volumes includes a Main Library in Roseau and branches in Portsmouth, Grand Bay, and Marigot. There is also a mobile library unit for rural areas. The Roseau Museum highlights the island's cultural and natural history.

MEDIA

In 2002, there were 23,700 mainline telephones in use, with an additional 9,400 cellular phones throughout the country. In 1997 there were 703 radios and 81 television sets per 1,000 population. As of 2004, there were 2 AM and 4 FM radio stations and one (cable) television station. Dominicans also receive TV and radio broadcasts from neighboring islands. In 2002, there were about 12,500 Internet subscribers in the country. Two weekly newspapers are published in Roseau, the Chronicle (circulation in 2002, 2,500) and the government-published Official Gazette (550), among other journals and periodicals.

The constitution provides for the right of free expression, and the government is said to respect free speech and a free press. Independent print and electronic media operate without restrictions by the government authorities.

ORGANIZATIONS

There are many cooperatives and credit unions in Dominica. A chamber of commerce and a small Rotary Club also function. There is a Dominica Employers' Federation in Roseau. The Dominica National Development Corp. promotes both industry and tourism. The Association of Eastern Caribbean Manufacturers is a multinational union based in Djibouti. There are unions, such as the Waterfront and Allied Workers' Union, and professional associations, such as the Dominica Association of Teachers.

The Dominica National Council of Women and the Women's Bureau are umbrella organizations supporting a variety of national women's groups. Youth organizations include the Young Freedom Movement, the Scout Association of Dominica, Girl Guides, and YWCA. Sports associations are active for several different pastimes, including tennis, track and field, and squash.

Volunteer service organizations, such as the Lions Clubs and Kiwanis International, are also present. There is a national chapter of the Red Cross Society.

TOURISM, TRAVEL, AND RECREATION

Dominica's tourism industry has developed slower than that of neighboring Caribbean islands. However, the growth of ecotourism has helped make tourism a staple in the economy. The principal attraction is the rugged natural beauty of its volcanic peaks, forests, lakes, waterfalls, and over 365 rivers. Day trips to Dominica from Barbados, Guadeloupe, and Martinique have gained increasing popularity. Cricket is the national sport.

Citizens of the United States and Canada may enter the country with proof of citizenship; other foreign visitors must have a valid passport. All tourists must have an onward/return ticket. A certificate of vaccination against yellow fever is required if traveling from an infected area.

In 2003, there were 72,948 tourists who visited Dominica, of whom 83% came from the Americas. The US Department of State estimated the average stay in Dominica at us$182 per day.

FAMOUS DOMINICANS

Maria Eugenia Charles (1919–2005), cofounder of the Dominica Freedom Party, became prime minister in 1980. She served until 1995, and was the first female prime minister in the Caribbean. Edison Chenfil James (b.1943) was prime minister from 1995 until 2000. Pierre Charles (1954–2004) was prime minister from 2000–2004. Roosevelt Skerrit (b.1972) succeeded him.

DEPENDENCIES

Dominica has no territories or colonies.

BIBLIOGRAPHY

Adventure Guide to Dominica and St Lucia. Edison, N.J.: Hunter, 2004.

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Hulme, Peter. Remnants of Conquest: The Island Caribs and Their Visitors, 1877–1998. New York: Oxford University Press, 2000.