St. Kitts and Nevis

ST. KITTS AND NEVIS

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 KITTSIANS AND NEVISIANS
DEPENDENCIES
BIBLIOGRAPHY

Federation of Saint Kitts and Nevis

CAPITAL: Basseterre

FLAG: Two thin diagonal yellow bands flanking a wide black diagonal band separate a green triangle at the hoist from a red triangle at the fly. On the black band are two white five-pointed stars.

ANTHEM: National Anthem, beginning "O land of beauty."

MONETARY UNIT: The East Caribbean dollar (ec$) of 100 cents is the national currency. There are coins of 1, 2, 5, 10, and 25 cents and 1 East Caribbean dollar, and notes of 5, 10, 20, and 100 East Caribbean dollars. ec$1 = us$0.37037 (or us$1 = ec$2.7) as of 2004.

WEIGHTS AND MEASURES: The imperial system is used.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1st Monday in May; Bank Holiday, 1st Monday in August; Independence Day, 19 September; Prince of Wales's Birthday, 14 November; Christmas, 25 December; Boxing Day, 26 December; Carnival, 30 December. Movable religious holidays include Good Friday and Whit-monday.

TIME: 8 am = noon GMT.

LOCATION, SIZE, AND EXTENT

St. Kitts lies about 8 km (5 mi) se of the Netherlands Antilles and 72 km (45 mi) nw of Antigua, in the Leeward Islands. It is 37 km (23 mi) long and 8 km (5 mi) across at its widest point, with a total area of 261 sq km (101 sq mi). Comparatively, the area occupied by St. Kitts and Nevis is slightly more than 1.5 times the size of Washington, DC. Nevis lies about 3.2 km (2 mi) se of St. Kitts, across a channel called the Narrows; it is 13 km (8 mi) long and 10 km (6 mi) wide, with a land area of 93 sq km (36 sq mi). Together the islands have a coastline of 135 km (84 mi).

The capital city, Basseterre, is located on St. Kitts.

TOPOGRAPHY

St. Kitts and Nevis are of volcanic origin. In the northwest of St. Kitts is Mt. Liamuiga (also called Mt. Misery), a dormant volcano that is the island's highest peak at 1,156 m (3,792 ft); to the south and west of Mt. Liamuiga are 210-m (700-ft) cliffs that drop straight to the sea. On the southern arm of the island lies the Great Salt Pond. The island of Nevis could be considered to be one large dormant volcano. Nevis's highest elevation is the central peak of Mt. Nevis, at 985 m (3,232 ft); it is usually capped in clouds. There is a black sand beach on the northwest coast.

The islands are located on the Caribbean tectonic plate at the boundary of the North American Plate; the subduction of the Atlantic Plate beneath the Caribbean Plate was responsible for the formation of the islands and continues to cause earthquakes in the surrounding region.

CLIMATE

Temperatures range from 26°c (79°f) to 32°c (89°f) all year long. Northeast tradewinds are constant. Rain usually falls between May and November, averaging 109 cm (43 in) a year. High humidity characterizes the summer months. Hurricane season runs from late summer to early fall.

FLORA AND FAUNA

The upper slopes of Mt. Nevis are well wooded; coconut palms, poincianas, and palmettos are profuse. Lemon trees, bougainvillea, hibiscus, and tamarind are common on both islands. Swamps and marshes on the southern peninsula of St. Kitts feature red and white mangroves. There are some black-faced vervet monkeys on Monkey Hill in St. Kitts. Coral reefs off the coast serve as a habitat for such marine life as sea turtles, barracuda, eels, and rays.

ENVIRONMENT

Deforestation, erosion, and water pollution are among the most significant environmental problems in St. Kitts and Nevis. Deforestation has affected the nation's wildlife population and contributed to soil erosion. The erosion of the soil produces silt, which affects the living environment for marine life on the coral reefs.

Water pollution results from uncontrolled dumping of sewage into the nation's waters. Another contributing factor is pollution from cruise ships which support the nation's tourist trade. In an effort to establish a framework for the regulation of environmental issues, the government has introduced legislation. The National Conservation and Environmental Protection Act, along with the Letter Act, are aimed at monitoring the nation's most pressing environmental concerns.

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, 2 species of birds, 3 types of reptiles, 11 species of fish, and 2 species of plants. Threatened species in the country included the red-bellied racer, green turtle, leatherback turtle, and the hawksbill turtle.

POPULATION

The population of St. Kitts and Nevis in 2005 was estimated by the United Nations (UN) at 48,000, which placed it at number 186 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 1.0%, a rate the government viewed as too high. The projected population for the year 2025 was 57,000. The overall population density was 133 per sq km (345 per sq mi), with the density on the island of St. Kitts twice that of Nevis.

The UN estimated that 33% of the population lived in urban areas in 2005, and that the population in urban areas was declining at an annual rate of -0.42%. The capital city, Basseterre, had a population of 13,000 in that year. Charlestown is the largest urban settlement on Nevis.

MIGRATION

There is less emigration in the current period than there was during the mid-20th century, largely because the economy enjoys almost full employment during the tourist and harvest seasons. During the off-season, some people migrate to other islands in search of work. The total number of migrants was 4,000 in 2000. In 2005, the net migration rate was -5.9 migrants per 1,000 population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

About 96% of the population are of black African descent. Only about 5% of the population are mulatto, 3% Indo-Pakistani, and 1.5% European.

LANGUAGES

English, sprinkled with local expressions, is the universal language.

RELIGIONS

Christianity is the dominant religion. The Anglican Church, the largest church on the island, claims about 50% of the population. About 25% are Roman Catholics. Other Christian groups are Methodists, Moravians, Seventh-Day Adventists, Mormons, and Jehovah's Witnesses. There are small communities of Rastafarians and Baha'is. Religious freedom is guaranteed by the constitution. Certain Christian holidays are recognized as national holidays. The St. Kitts Christian Council is a nongovernment group that promotes interfaith understanding.

TRANSPORTATION

As of 2004, a light, narrow-gauge railway of 50 km (31 mi) on St. Kitts was operated by the government to transport sugarcane from fields to factory and processed sugar to the pier at Rawlins Bay. In 2002, there were 320 km (199 mi) of roads on the islands, of which 136 km (85 mi) were paved; the main roads circle each island. Basseterre and Charlestown are the principal ports. A state-run motorboat service is maintained between St. Kitts and Nevis. In 2004 there were two airports, both with paved runways. Golden Rock International Airport is a modern facility serving Basseterre; several small airlines fly to a landing strip at Newcastle, on Nevis.

HISTORY

Arawak Indians, followed by Caribs, were the earliest known inhabitants of the islands. Discovered by Columbus in 1493 and named St. Christopher, St. Kitts was the first of the British West Indies to be settled. Sir Thomas Warner established a settlement on St. Kitts in 1623, later leading colonial expeditions to Nevis in 1628 and Antigua in 1632. For a short while during this period there were French settlements at both ends of St. Kitts, and the French settlers cooperated with the British to repel a Spanish invasion. By the 1660s there were some 4,000 Europeans engaged in the sugar trade, based on a plantation system with slaves imported from Africa. The French gained control in 1664 but lost it to the British in 1713, under the Peace of Utrecht. The French besieged the British garrison in the Brimstone Hill fortress in 1782 and once more gained control of the island, but the Treaty of Versailles (1783) returned St. Kitts again to Britain. By the late 18th century, the thermal baths at Charlestown, Nevis, attracted thousands of international tourists. Although the slaves were emancipated in 1834, many of the ex-slaves continued to work on the sugar plantations, so the sugar-based economy did not decline as rapidly as elsewhere in the West Indies.

St. Kitts, Nevis, and Anguilla (the most northerly island of the Leeward chain) incorporated with the British Virgin Islands in 1816. The territorial unit of St. Kitts-Nevis-Anguilla became part of the Leeward Islands Federation in 1871 and belonged to the Federation of the West Indies from 1958 to 1962. In 1967, the three islands became an associated state with full internal autonomy under a new constitution. After the Anguilla islanders rebelled in 1969, British paratroopers intervened, and Anguilla seceded in 1971, an arrangement formally recognized on 19 December 1980.

There have been regular general elections in St. Kitts and Nevis since 1971. A 1982 white paper on independence provoked stormy debate over the form of the constitution, spilling over into civil unrest in 1982 and 1983. St. Kitts and Nevis became an independent federated state within the Commonwealth on 19 September 1983. Under the arrangement, Nevis developed its own legislature and gained the power to secede from the federation. Elections in June 1984 produced a clear majority for the People's Action Movement/Nevis Reformation Party coalition.

In the 21 March 1989 elections, 11 of 14 members of the National Assembly were elected, six from the People's Action Movement Party (PAM), two from St. Kitts and Nevis Labor Party (SKNLP), two from the Nevis Reformation Party (NRP), and one from the Concerned Citizens Movement (CCM). In the 29 November 1993 elections, no major party won the most seats and no coalition government emerged. The governor-general invited a minority government to form. In response, the Labour Party demonstrated, which led to serious disturbances, causing a 21-day state of emergency in December 1993.

In June 1996, Nevis premier Vance Amory announced plans for Nevis to secede from the federation as detailed in the constitution. Elections for the Nevis Island Assembly held in February 1997 returned Amory to power. The CCM retained its three seats, and the NRP held its two seats. Nevis's assembly voted unanimously for secession in 1997. However, a referendum on succession in July 1998 was unsuccessful when it failed to gain the approval of two-thirds of the electorate (61.8% in favor).

The 3 July 1995 elections gave the SKNLP seven seats; PAM kept one seat; NRP, one seat; and the CCM, two seats. Denzil L. Douglas, leader of the SKNLP, became prime minister. Elections in March 2000 resulted in SKNLP winning all eight seats in St. Kitts, returning Douglas for a second five-year term as prime minister. The CCM retained two seats in Nevis, and NRP kept one seat. The PAM won no seats.

Elections were held in October 2004. The SKNLP won 7 seats, the CCM, 2; the NRP, 1; and the PAM, 1. Douglas began a third term as prime minister. Douglas has stated that any differences between Nevis and St. Kitts should be resolved through constitutional reform, rather than by a referendum on secession.

In March 2005, the government decided to close the 300-year old sugar industry after the 2005 harvest. The sugar industry had long been ailing. However, tourism and the offshore financial industry are growing. By 2003, Nevis had approximately 17,000 off-shore businesses operating under strict secrecy laws; this made the islands attractive to drug traffickers and money launderers. St. Kitts and Nevis enacted new laws to try to crack down on the problem.

GOVERNMENT

St. Kitts and Nevis is a federation of the two constituent islands. Under the constitution passed at independence in 1983, the British monarch is head of state and is represented by a governor-general, who is required to act upon the advice of the cabinet, and a deputy governor-general for Nevis.

The nation is governed under a parliamentary system, with legislative power vested in the unicameral House of Assembly, consisting of the speaker, three senators (two appointed on the advice of the prime minister and one on the advice of the leader of the opposition), and 11 elected members elected from each of 11 constituencies for up to five years. The cabinet, collectively responsible to the Assembly, consists of the prime minister (who must be able to command the support of a legislative majority), the attorney general (ex officio), and other ministers. The prime minister could call for an early election if the people request it in a voted referendum, though it has yet to happen. The Nevis Island Assembly and the Nevis Island Administration (headed by the British monarch represented by the deputy governor-general) operate similarly to the federation government.

Suffrage is universal for all citizens 18 or older.

POLITICAL PARTIES

There are four political parties that have held seats in the House of Assembly. Although the Labour Party (now the St. Kitts and Nevis Labour Party—SKNLP) dominated the political scene from the 1950s until 1980, it was supplanted after independence by the People's Action Movement. The PAM won 6 seats, a clear majority, in both 1984 and 1989. The Labour Party held 2 seats in 1984 and 1989. The Nevis Reformation Party, founded in 1970, took 3 seats in 1984 and 2 seats in 1989, all of which were from constituencies on Nevis. The Concerned Citizen's Movement took 1 Nevisian seat in 1989. In 1993, the SKNLP and PAM each had 4 seats. CCM took 2 seats and the NRP took 1 seat. In 1995, the SKNLP won 7 seats, the PAM, 1 seat, and the CCM, 2 seats. In 2000, the SKNLP won all 8 seats from St. Kitts. The CCM held its 2 seats, and the NRP held its 1 seat. In 2004, the SKNLP won 7 seats, the CCM, 2; the NRP, 1; and the PAM, 1.

LOCAL GOVERNMENT

There are nine parishes in St. Kitts: St. George Basseterre, St. Peter Basseterre, St. Mary Cayon, Christ Church Nichola Town, St. John Capisterre, St. Paul Capisterre, St. Anne Sandy Point, St. Thomas Middle Island, and Trinity Palmetto Point. Nevis has five parishes: St. Paul Charlestown, St. John Figtree, St. George Gingerland, St. James Windward, and St. Thomas Lowland. Under the 1983 constitution, Nevis has its own legislative assembly and the right to secede under certain conditions.

JUDICIAL SYSTEM

The Eastern Caribbean Supreme Court, established on St. Lucia, administers the judicial system, which is based on English common law and statutory acts of the House of Assembly. A judge of the Court is responsible for St. Kitts and Nevis and presides over the Court of Summary Jurisdiction. Magistrates' courts deal with petty criminal and civil cases. The attorney general is the government's principal legal adviser. An appeal may be taken to the organization of Eastern Caribbean States Court of Appeal; until 2003, final appeals were taken to the Judicial Committee of the Privy Council in the United Kingdom. St. Kitts and Nevis was among the nations joining together to form the Caribbean Court of Justice (CCJ) to hear cases formerly taken to the Privy Council. The court was officially inaugurated in April 2005. 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.

There are no military or political courts.

The judiciary has a reputation for independence and integrity. The system provides legal assistance to indigent criminal defendants.

ARMED FORCES

St. Kitts and Nevis participates in the Eastern Caribbean Regional Security System created jointly with Antigua and Barbuda, Dominica, Grenada, St. Lucia, and St. Vincent and the Grenadines in 1985.

INTERNATIONAL COOPERATION

St. Kitts and Nevis became a member of the United Nations on 23 September 1983; it belongs to ECLAC and several nonregional specialized agencies, such as, the FAO, the World Bank, ILO, UNSECO, UNIDO, and the WHO. The country is a member of the ACP Group, the WTO, the Commonwealth of Nations, CARICOM, the Caribbean Development Bank, G-77, the Alliance of Small Island States (AOSIS), the OAS, the Association of Caribbean States (ACS), and OECS. The headquarters for the Eastern Caribbean Central Bank is in St. Kitts.

St. Kitts and Nevis is also a part of the Eastern Caribbean Regional Security System (RSS), the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL), and the Organization for the Prohibition of Chemical Weapons. In environmental cooperation, the country is part of the Basel Convention, Conventions on Biological Diversity and Whaling, CITES, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Before 1987, the economy was based on agriculture, particularly on sugar, which generated over half of export revenues. The government closed down the sugar industry following the 2005 harvest after decades of losses at the state-owned sugar company. To compensate for the loss of the sugar industry, the government is embarking upon new ways to diversify the agricultural and other sectors of the economy. During the 1990s, tourism and related industries became the most important source of revenue in St. Kitts and Nevis. The country still produces sea island cotton, peanuts, vegetables, and coconuts, but the more than 400,000 visitors per year are the most important sources of jobs and earnings. The government has been making efforts to expand tourism and to improve local food production (the country imports most of its food needs). The country has had success with the development of its light manufacturing industries—mainly garments and electronics assembly, data entry, the expansion of non-sugar agricultural production and tourism. The average annual GDP between 1988 and 1998 was 4.8%. In 2004, the GDP growth rate stood at 5.1%. Inflation remains tame, at an annual average just below 2%.

Decreasing world prices hurt the sugarcane industry in the recent past, as have natural disasters like Hurricane Georges in 1998. Faced with the prospect of declining tourism after the 11 September 2001 terrorist attacks on the United States, Prime Minister Douglas offered a free one-week vacation in St. Kitts to all the firefighters and police in New York City and Washington, DC.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 St. Kitts and Nevis's gross domestic product (GDP) was estimated at $339.0 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 $8,800. The annual growth rate of GDP was estimated at -1.9%. The average inflation rate in 2001 was 1.7%. It was estimated that agriculture accounted for 3.5% of GDP, industry 25.8%, and services 70.7%.

Approximately 33% of household consumption was spent on food, 11% on fuel, 5% on health care, and 13% on education.

LABOR

In the latest years for which data was available, the labor force in 1995 was estimated at 18,172. Manufacturing employed 31% and services 69%. The unemployment rate was estimated at 4.5% in 1997.

The St. Kitts and Nevis Trades and Labor Union, established in 1940, is associated with the Labor Party and is the major workers' labor organization. The sugar industry and civil service are the largest employers, with tourism gaining importance, especially on Nevis. Unions have the right to organize and bargain collectively. The right to strike is not codified by law but is well established and respected.

The minimum working age is 12 years and this is effectively enforced. The government sets and enforces basic worker health and safety laws. The minimum wage varies by job classification and skill level of the wage earner. In 2001, it was us$67.42 per week for a full-time domestic worker and us$166.10 per week for a skilled worker. The workweek is generally set at five days with 40 hours. The law provides a two-week annual vacation.

AGRICULTURE

Of the islands' total land area, about 22% is devoted to crops. The principal agricultural product of St. Kitts is sugarcane; peanuts are now the second crop. On Nevis, sea island cotton and coconuts are the major commodities. Sweet potatoes, onions, tomatoes, cabbages, carrots, and breadfruit are grown for local consumption on both islands, mostly by individual smallholders. In 2004, agricultural products accounted for about 35.2% of total imports by value and 19.6% of exports; the government has embarked on a program to substitute for food imports.

Sugar estate lands were nationalized in 1975, and the sugar factory was purchased by the government the following year. The output of raw sugar slumped between 1986 and 1989, and as a result the government entered into a management agreement with Booke and Tate of Great Britain in August 1991; a World Bank loan of us$1.9 million was utilized to provide financial stability. Sugar production in 2004 was estimated at 193,000 tons.

ANIMAL HUSBANDRY

Pasture areas are small, covering some 5.6% of the islands. Pangola and Bermuda grasses provide the bulk of the fodder. Estimates of livestock in 2005 were sheep, 12,500; goats, 16,000; cattle, 4,800 head; and pigs, 2,000.

FISHING

Fishing is a traditional occupation that has not expanded to any great extent; the catch in 2003 was 370 tons (down from 620 tons in 1990). Some exports (primarily lobsters) are made to the Netherlands Antilles and Puerto Rico; fisheries exports totaled us$267,000 in 2003.

FORESTRY

Both islands have small stands of virgin tropical forest, with palms, poincianas, and palmettos. About 11% of the land area consists of forests. Imports of forest products nearly reached us$1.8 million in 2004.

MINING

The mining sector played a minor role in St. Kitts and Nevis. Raking of salt, the country's fourth-leading industry, was done from time to time. Local quarrying of some materials was used to supplement the construction industry. In 2001, output for sand and gravel was 215,000 metric tons (estimated), up from 50,389 metric tons in 1996; crushed stone output was 121,270 metric tons.

ENERGY AND POWER

Total electric power generating capacity in 2002 was 20,000 kW. Electricity production in 2002 was 106 million kWh, entirely from conventional thermal sources. Consumption of electricity in 2002 was 98 million kWh. St. Kitts and Nevis have no fossil fuels, and all petroleum products must be imported. Imports and consumption of refined petroleum products in 2002 averaged 710 barrels per day, the largest portion at 370 barrels per day were distillates. There were no imports of natural gas or coal in 2002.

INDUSTRY

Industry accounted for 26% of GDP in 2001. The principal manufacturing plant and largest industrial employer until 2006 was the St. Kitts Sugar Manufacturing Corp., a government enterprise; it ground and processed sugarcane for export. The government shut down the company after the 2005 harvest due to decades of losses. A brewery on St. Kitts makes beer for local consumption, and cotton is ginned and baled on Nevis. Electronic plants produce switches, calculators, car radios, and pocket radios. Other industries are clothing and shoe manufacturing.

The manufacturing suffered a decline in 1998 due to Hurricane Georges. As a result of diversification and expansion, St. Kitts and Nevis has transformed small electronics plants into the largest electronics assembly industry in the Eastern Caribbean. Its apparel assembly industry has also become very successful in recent years.

There are four major industrial sites in St. Kitts and Nevis: C. A. Paul Southwell Industrial Park, Bourkes Industrial Estate, Canada Industrial Estate, and Prospect Industrial Estate. Porte Zante is the main seaport.

SCIENCE AND TECHNOLOGY

St. Kitts and Nevis is dependent on outside resources both for industrial technology and for advanced scientific and technical education. The government is currently developing postsecondary education; a technical school was in operation in 1987.

DOMESTIC TRADE

Basseterre, on St. Kitts, and Charlestown, on Nevis, are the primary commercial centers of the islands. Once based almost exclusively on sugar production and exports, the economy has shifted over the years to focus on services, particularly related to tourism. The government continues to work on investment incentive programs to encourage both domestic and foreign business investors.

General business is conducted from 8 am to 4 or 4:30 pm, Monday through Friday. Normal banking hours are 8 am to 2 pm, Monday through Thursday, and from 8 am to 4 pm on Fridays.

FOREIGN TRADE

The government of St. Kitts and Nevis has expanded trade incentives in recent years. Doing business in the country is virtually tax free. However, American businesses' use of tax havens such as St. Kitts and Nevis has been called into question in recent years.

Most exports in 2004 went to the United States (57.5%), followed by Canada (9%), Portugal (8.3%), and the United Kingdom (6.7%). About two-thirds of the sugar crop until 2006 was exported to the United States. Other exports include machinery, electronics, food, and beverages.

The majority of imports in 2004 came from the Ukraine (44.7%), the United States (22.1%), Trinidad and Tobago (8.8%), and the United Kingdom (6.2%).

BALANCE OF PAYMENTS

Earnings from tourism and overseas remittances largely offset the trade deficit. From 1988 to 1990, the current account deficit increased

Country	Exports	Imports	Balance
World	30.9	189.2	-158.3
United States	22.1	95.6	-73.5
United Kingdom	7.3	15.6	-8.3
Dominica	0.4	0.7	-0.3
Netherlands Antilles	0.2	1.7	-1.5
Anguilla	0.1	…	0.1
Montserrat	0.1	…	0.1
Antigua and Barbuda	0.1	0.9	-0.8
Japan	0.1	4.7	-4.6
St. Lucia	0.1	0.7	-0.6
Trinidad and Tobago	0.1	23.4	-23.3
(…) data not available or not significant.

Current Account			-124.0
Balance on goods		-113.2
Imports	-177.6
Exports	64.4
Balance on services		10.9
Balance on income		-38.2
Current transfers		16.4
Capital Account			14.6
Financial Account			106.9
Direct investment abroad		…
Direct investment in Saint Kitts and Nevis		8.4
Portfolio investment assets		0.0
Portfolio investment liabilities		31.5
Financial derivatives		…
Other investment assets		0.6
Other investment liabilities		-5.6
Net Errors and Omissions			12.2
Reserves and Related Items			-9.7
(…) data not available or not significant.

from 21% of GDP to nearly 35% of GDP, but went down to about 20% in 1998. The 11 September 2001 terrorist attacks on the United States negatively impacted the St. Kitts and Nevis tourism industry.

In 2005, the value of exports was estimated at us$70 million, and the value of imports at us$405 million.

BANKING AND SECURITIES

St. Kitts and Nevis has a relatively simple system of public and private financial institutions, which the government wishes to expand. As a member of the Organization of Eastern Caribbean States (OECS), it has as its central monetary authority the Eastern Caribbean Central Bank (ECCB), headquartered in Basseterre. The Eastern Caribbean Home Mortgage Bank is also located in St. Kitts and Nevis.

The two islands had eight banks in 2000, including both foreign and domestic concerns. Barclays Bank, the Royal Bank of Canada, and the Bank of Nova Scotia represent foreign interests, whereas domestic interests include the St. Kitts and Nevis National Bank, the Development Bank of St. Kitts and Nevis, and the Nevis Cooperative Bank. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $42.5 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $305.9 million.

Securities transactions on international exchanges are performed by the banks.

INSURANCE

International, regional, and local insurance companies or agents offer life and property insurance. There are five insurance companies in St. Kitts and Nevis, including Barbados Mutual Life and Assurance Society, British American Insurance, Colonial Life Insurance (Trinidad), St. Kitts and Nevis Insurance, and National Caribbean Insurance.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2003 St. Kitts and Nevis's central government took in revenues of approximately $89.7 million and had expenditures of $128.2 million. Revenues minus expenditures totaled approximately -$38.5 million. Total external debt was $171 million.

TAXATION

There is no personal income tax for residents of St. Kitts and Nevis. Corporations are taxed at the rate of 38% of income, but the Fiscal Incentives Act offers generous development and tax concessions. Profit remittances are taxed at a 10% rate; there is also a land tax and a house tax. There is a capital gains tax of 20%.

CUSTOMS AND DUTIES

St. Kitts and Nevis is bound by the common external tariff of CARICOM and requires an import license for certain durable and nondurable products. CARICOM members have reduced rates to a maximum of 20%. Tariff rates for pharmaceuticals and medicines used to treat infectious diseases are subject to a 10% tariff. Automobiles are subject to a 70% rate. There are no value-added or sales taxes.

FOREIGN INVESTMENT

Like most Caribbean microstates, St. Kitts and Nevis has an investment incentives program. Joint ventures and labor-incentive industries are especially welcome. Official development assistance and resource flows from commercial sources totaled us$25 million in 1997.

Foreign investment incentives include the following: a tax holiday of up to 15 years; tax rebates of up to 5 years; and exemption from customs duties on machinery deemed necessary to establish and update an enterprise.

Annual foreign direct investment (FDI) rose steadily from us$19.7 million in 1997 to a peak of us$96.2 million in 2000. In 2001, FDI inflow was us$82.9 million. Significant new investment in the tourism industry, including a 648-room Marriott hotel and convention center that opened in December 2002, as well as other planned resort projects, are designed to improve economic performance. Net FDI inflows were projected to equal 15.5% of GDP in 2005.

ECONOMIC DEVELOPMENT

The government until 2006 attempted to halt the decline of the sugar industry by restructuring the sector, and encouraged agricultural diversification and the establishment of small industrial enclaves linked to the international export market. However, following the 2005 harvest, the government shut down the sugar industry after decades of losses. Four industrial estates have been developed. The tourist industry has received considerable government support. The Development and Finance Corporation is the principal development agency.

The country's plans continue to be aimed at diversifying the economy. Construction projects in the private and public sector are expected to contribute substantially to the moderate economic growth that St. Kitts and Nevis should experience in the near future. Hurricanes in 1998–99 caused widespread damage, but due to spending on post-hurricane reconstruction and repair, gross domestic product (GDP) growth was strong in the early and mid-2000s. The 11 September 2001 terrorist attacks on the United States adversely impacted the tourism industry in the short-term. The telecommunications sector has been liberalized, and a Financial Intelligence Unit was set up in the offshore sector.

SOCIAL DEVELOPMENT

A dual social insurance and social assistance system provides coverage for old age, disability, and survivorship. Qualifying conditions for receiving an old-age pension include an age of 62 and 500 weeks of paid contributions. The government funds the system. Sickness and maternity benefits have been in place since 1996, covering all employed and self-employed persons. Work injury provisions are funded solely by employer contributions.

Although there is no overt discrimination against women, tradition prevents women from achieving higher levels of employment. The Department of Gender Affairs was created by the government to promote women's rights and provide counseling for abused women. A special police unit works closely with the Ministry to investigate domestic violence and rape cases. There is a special training program to educate police and school guidance counselors in dealing with domestic violence, sex crimes, and child abuse. Most of the provisions of the UN Convention on the Rights of the Child have been incorporated into domestic law.

Human rights are generally well respected, although prison conditions are poor. Facilities are overcrowded, and in the past these conditions led to prison riots.

HEALTH

In 2004, there were an estimated 118 physicians, 498 nurses, and 18 dentists per 100,000 people. Total health care expenditure was estimated at 3.1% of GDP.

Hygienic education is the primary concern of the Central Board of Health. The infant mortality rate was an estimated 14.49 per 1,000 people in 2005. Average life expectancy in the same year was 72.15 years. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 18.6 and 9 per 1,000 people. AIDS is present but not considered a major problem. Polio and measles appeared to be absent from these islands.

HOUSING

The government has placed emphasis on planned housing development in order to conserve agricultural lands. The Central Housing Authority began a program of low-cost home construction in 1977. The water supply, which comes from mountain springs and deep wells, is controlled by the Water Department. In the early 1980s, roughly four-fifths of all dwellings were detached houses, with apartments and commercial buildings making up most of the remainder. Over half of all dwellings were owner occupied and about one-third were rented privately; the remainder were occupied rent free or rented from the government. The most common construction materials for housing were wood (50%), wood and concrete combined (25%), and concrete (20%).

In 1998, Hurricane Georges damaged 85% of the housing stock. In response, the government joined with USAID and the OAS to create a Housing Sector Recovery Plan which was meant to create a plan of action for repair and upgrading of existing housing, so that these structures might be better suited to withstand future storms. The government has also supported a number of other housing development plans sponsored in part by foreign investors, including the 2002 projects of the KOMLA Group of Companies of Guadeloupe and the CLICO Group of Barbados. These projects were community plans which included shopping locations, a medical center, recreation and park areas, as well as two- and three-bedroom homes. The same year, the Minister of Housing announced plans of the St. Kitts and Nevis Labor Party Administration to build 1,000 low-income homes in 2003 with an investment of ec$45 million. The Labor Party built 1,200 homes in 2000.

The CARIFESTA Housing Programme is an ongoing project of the government for construction and funding of new housing. In 2000, 130 two- and three-bedroom homes were constructed through the program. In 2002, the CARIFESTA Revolving Fund was established to offer loans of up to ec$80,000 to individual landowners hoping to build their own homes.

EDUCATION

Schooling is compulsory for students between the ages of 5 and 16. Primary school covers a course of seven years, followed by five years of high school and, for those who choose to attend, two years of senior high school. Charlestown Secondary School is the only school on Nevis that offers the full seven years of secondary education. On St. Kitts, students wishing to complete the final two years of secondary school attend Clarence Fitzroy Bryant College of Further Education. The academic year runs from September to July.

Most children attend some type of preschool program between the ages of three and four. Primary school enrollment in 2003 was estimated at about 100% of age-eligible students and nearly all students complete their primary education. The student-to-teacher ratio for primary school was at about 17:1 in 2003; the ratio for secondary school was about 10:1.

The Clarence Fitzroy Bryant College of Further Education is the only state institution of higher learning. Most programs offered cover the first year of general university programs. There is also a local extension site of the University of the West Indies. There are six private institutions. The adult literacy rate has been estimated at about 97%.

As of 2003, public expenditure on education was estimated at 3.2% of GDP, or 7.9% of total government expenditures.

LIBRARIES AND MUSEUMS

The Charles A. Halbert Library Public Library has a central library at Basseterre and four branch locations on St. Kitts. The Nevis Public Library Service consists of the Nevis Central Public Library, the St. George's Branch Library, and three school libraries. There are mobile library services on both St. Kitts and Nevis. The National Museum is located in the Old Treasury Building at Basseterre. The Museum of Nevis History is in Charlestown, as is Nelson Museum, which preserves memorabilia of Lord Horatio Nelson.

MEDIA

The telephone system is operated by the government, while international cable and wireless services are operated privately. In 2002, there were 23,500 mainline phones and 5,000 mobile phones in use nationwide.

ZIZ Radio and Television is owned and operated by the government. The Voice of Nevis is an AM radio station. WinnFM is a private commercial station. Radio broadcasting began in 1961, and television broadcasting in 1972. In 2004, there were 3 AM and 3 FM radio stations and 1 television station. In 1997 there were 575 radios and 273 television sets in use per 1,000 population. In 2002, there were 10,000 Internet subscribers. In 2003, there were 53 Internet hosts.

In 2004, there were four independent weekly newspapers and one independent daily, as well as papers published by the major political parties. Sun St. Kitts/Nevis is the daily. The Labour Spokesman, founded in 1957, is published twice weekly and had a 2002 circulation of 6,000. The Democrat, which is published weekly, had a circulation of 3,500.

The constitution provides for freedom of speech and the press, and the government is said to generally respect these rights. However, because the government owns the only radio and TV stations, these media are said to inadequately cover opposition rallies and other events.

ORGANIZATIONS

The St. Kitts and Nevis Chamber of Commerce has its headquarters in Basseterre, and the Nevis Cotton Growers' Association has its office in Charlestown. The primary labor union is the St. Kitts Trades and Labour Union, which is associated with the St. Kitts and Nevis Labour Party.

National youth organizations include Boy Scouts of Saint Kitts and Nevis, New Reformation Party Youth Movement, Young Labor, Young Pamites, and YMCA/YWCA. There are a variety of sports associations, many associated with the St. Kitts and Nevis Olympic Association.

Many US charitable organizations have operations in the islands, including the 4-H Foundation, Planned Parenthood, Heifer Project International, Operation Crossroads Africa, and Project Concern. 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

The chief historic attraction on St. Kitts is Brimstone Hill fortress. The UNESCO World Heritage Site towers 230 m (750 ft) above the Caribbean, took 100 years to build, and is partially restored. Beautiful beaches and the Georgian architecture of Basseterre also attract tourists. Nevis has many beaches and relic plantations and a quaint atmosphere reminiscent of the 18th century. Popular spectator sports are golf, bird watching, snorkeling, and parasailing.

Visitors from the United States and Canada only need proof of citizenship to enter the island. Nationals of all other countries need a valid passport, and citizens of 96 countries do not need a visa. An onward/return ticket and proof of sufficient funds may be required. The government has dredged the main harbor on St. Kitts to accommodate cruise ships.

In 2002, approximately 67,531 tourists arrived on the islands. Over half of these visitors were from the United States.

The cost of traveling in St. Kitts and Nevis varies according to the season. Between December and April, estimated daily expenses are approximately us$272, and us$235 the rest of the year.

FAMOUS KITTSIANS AND NEVISIANS

Sir Thomas Warner (d.1649) established the first colony on each island. US statesman Alexander Hamilton (1757–1804) was born in Charlestown.

DEPENDENCIES

St. Kitts and Nevis has no territories or colonies.

BIBLIOGRAPHY

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.

Moll, V.P. St. Kitts-Nevis. Santa Barbara, Calif.: Clio, 1995.

Olwig, Karen Fog. Global Culture, Island Identity: Continuity and Change in the Afro-Caribbean Community of Nevis. Philadelphia: Harwood, 1993.