Bahamas Travel Guide

Columbus was the first European to discover The Bahamas (and hence America) in 1492. San Salvador was his first landing place in the New World; Cockburn Town, the main settlement, is not far from the spot where Columbus is said to have landed (although other sites also claim this distinction). Columbus met the Lucayan Indians, the original inhabitants of The Bahamas.

The islands were largely ignored by the Spanish and the first European settlement was established by a group of English religious dissidents, known as the Eleutheran Adventurers, in 1647. In 1717, the islands were formally colonized by Britain. They were briefly occupied by the Spanish in 1782, although returned to Britain the following year, under the terms of the Treaty of Paris. Thereafter, the Bahamas became a haven for freed slaves and, subsequently, a favorite holiday destination for the wealthy. The post of Governor, representing the British monarch, became a remote but pleasant sinecure. The best-known incumbent was the Duke of Windsor, who had abdicated the British crown in 1936, and, in view of his pro-Nazi sympathies, was dispatched to the territory in 1940, for the duration of World War II.

In 1964, The Bahamas were granted internal self-government, followed by independence in 1973. Post-independence politics in The Bahamas have been dominated by (later Sir) Lynden Pindling, who had first been elected to the premiership as head of the Progressive Liberal Party (PLP) in 1967. The PLP, with Pindling as its head, was returned to office at each of five subsequent elections, despite increasingly numerous and detailed allegations of corruption and involvement in drug trafficking against Pindling and some of his associates. All were vehemently and repeatedly denied by Pindling. Pressure from the USA (which has leased two military bases on the islands since the 1950s) forced the government to introduce more stringent measures against drug trafficking, including changes to the islands’ banking secrecy laws.

The damage to Pindling’s reputation and the islands’ poor economic performance during the early 1990s led to the PLP’s rejection by the electorate at the August 1992 polls. The new premier was the leader of the long-time opposition Free National Movement (FNM), Hubert Ingraham. Once a minister under Pindling, Ingraham had resigned in 1984. Ingraham was re-elected in 1997. However, at the most recent poll in May 2002, the PLP resumed control of the government with an overwhelming majority in the House of Assembly. The current premier is Perry Christie, another veteran Bahamanian politician and former colleague of Pindling. Pindling retired from politics after his 1992 defeat. He died in August 2000.

In late 2004, Hurricane Frances caused extensive widespread damage in The Bahamas. Hurricane Jeanne followed only weeks later. The future for The Bahamas will almost certainly involve plans to better detect such hurricanes, and better lessen their impact.

Government
The bicameral parliament – composed of a 16-member Senate, whose membership is appointed, and a 40-strong House of Assembly directly elected for a five-year term – has legislative powers. The British monarch has formal executive powers, vested in a Governor General, although in practice the Governor General almost invariably acts upon the advice of a Cabinet of Ministers appointed from the House of Assembly.

Economy
The Bahamas' stable, free-market-orientated government relies heavily on tourism, which provides around 60% of GDP. Since 2003, the economy has grown steadily with unemployment, an ongoing problem, falling below 10% in 2006. A booming real estate sector has attracted thousands of American, European and Asian investors. Today the Bahamas is one of the Caribbean’s most affluent nations and achieved a GDP of $US8.3 billion in.

A sizeable offshore banking sector accounts for around 15% of GDP, although the financial sector has come under pressure since the Organization for Economic Cooperation and Development (OECD) instigated a tightening up of monetary laws. According to the IMF, the future looks bright for the Bahamas, with GDP set for 4% growth in 2008 in real terms – despite the financial woes of the US.