The islands were first inhabited by Carib and Arawak Indians but, in common with the rest of the Caribbean, they endured various waves of European invasion and settlement from the 1490s onwards, finally becoming part of the Danish West Indies. The US government purchased the Islands in 1917 and they are now an unincorporated territory of the USA. A measure of self-government was introduced in 1954, along with the introduction of an elected senate.
Politics on the islands follow the Republican-Democrat division of the USA itself. From the evidence of gubernatorial elections, the political complexion
of the islands was distinctly Republican from 1970 until 1982. This is when the Governorship passed to the Democrats, who held the post until the present incumbent, Roy Schneider, representing the Independent Citizens’ Movement, was elected in 1994. Despite the fact that the Republicans did not even put up a candidate, Schneider’s efforts to secure a second term failed when he was defeated by Democrat Charles Turnbul at the November 1998 poll. At the most recent elections in November 2002, Turnbul secured a second term of office, while simultaneous elections for the Senate returned the Democrats with a majority of a single seat.
GovernmentAlthough US Virgin Islands residents are US citizens, they cannot vote in Presidential elections – one elected delegate represents the islands in the US House of Representatives. The 1954 Organic Act created an elected 15-member senate for the islands. Since 1970, executive authority has been vested in an elected Governor who serves a four-year term.
EconomyWhen Denmark sold the islands to the US government in 1917, they insisted that the existing privileges of the inhabitants be respected. A result of this is that the Virgin Islands are not part of the Federal Customs Area, a state of affairs that affords various advantages. This, in turn, has allowed the islands to support a high standard of living that they are naturally reluctant to relinquish.
Tourism is a key industry, contributing around US$1.2 billion annually to the economy. The manufacturing industry is relatively new and thriving, producing pharmaceuticals, electronics and textiles. In addition, the islands have one of the world’s largest oil refineries and a thriving trade in rum. Agriculture is confined to producing for local consumption; there are no significant natural resources. Transhipment and financial services are the islands’ other main sources of revenue.
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