Background Notes: Grenada
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Nov 15, 199011/15/90
Category: Country Data
Region: South America
Country: Grenada
Subject: Travel, History, International Organizations,
Trade/Economics
[TEXT]
November 1990
Official Name: Grenada
PROFILE
Geography
Area: 344 sq. km. (133 sq. mi.): about twice the size of Washington,
DC. Cities: Capital-St. George's (pop. 30,000 est.). Terrain: Volcanic
island with central mountainous rain forest. Climate: Tropical.
People
Nationality: Noun and adjective-Grenadian(s). Population (1989
est.): 98,000; 50% under age 25. Average annual growth rate (1977-
88): 0.7%. Ethnic groups: Mainly black African descent, few East
Indian, few European, trace Arawak/Carib Indian. Religions: Roman
Catholic (63%), Church of England, other Protestant denominations.
Languages: English (official), some vestigial French patois.
Education: Years compulsory-6. Literacy-95% of adult population.
Health: Infant mortality rate-16.7/1,000. Life expectancy-68 yrs.
Work force (1986 est.) 35,000: Agriculture-33%. Industry-17%.
Other-50%.
Government
Type: Independent state since February 7, 1974; recognizes the
British monarch, Queen Elizabeth II, as head of state. Administered
by an interim government immediately following the ouster of the
People's Revolutionary Government in October 1983, and returned to
a Westminister-style parliamentary system through national
elections in December 1984. Independence: February 7, 1974.
Constitution: December 19, 1975.
Branches: Governor general (appointed by and represents British
monarch, head of state). Legislative-Parliament composed of a 15-
seat directly elected House of Representatives, and a 13-seat
Senate appointed by the governor general on the advice of the
majority party and opposition. Executive-the prime minister (head
of government, leader of majority party) and his cabinet direct an
apolitical career civil service in the administration of the
government. Judicial-Grenada Supreme Court, composed of the High
Court of Justice and a Court of Appeals.
Administrative subdivisions: Six parishes and one dependency
(Carricou and Petit Martinique in the Grenadines).
Political parties: National Democratic Congress (NDC), The National
Party (TNP), New National Party (NNP), Grenada United Labor Party
(GULP), Maurice Bishop Patriotic Movement (MBPM), and the New
Jewel Movement (NJM). Suffrage: Universal over 18.
Central government budget (1989): $92.1 million. Recurrent
expenditures-$59.2 million. Capital expenditures-$32.9
million. (Capital expenditures financed largely by foreign
assistance.)
National holiday: Independence Day-February 7.
Flag: Red, yellow, and green with a nutmeg left of center.
Economy
GDP (1989 at current factor cost): $140 million. Annual growth rate:
1986, 5.5%; 1988, 5.3%; 1989, 5.6%. Per capita GDP (1989): $1,429.
Inflation rate (1989): 3.7%.
Agriculture (1989, 16.8% of GDP): Products-nutmeg, mace, cocoa,
bananas, fruits, vegetables.
Industry (1989): Types-manufacturing 5%, hotel/restaurant 6%,
construction 10%.
Trade: Exports-$28.1 million (1989): nutmeg, mace, cocoa, bananas,
fruits, vegetables. Major markets (1988)-CARICOM countries 17%,
UK 26%, FRG 14%, Netherlands 24%, US 10%. Imports-$100 million
(1989): food, machinery and transport, manufactured goods, fuel.
Major suppliers (1988)-US 26%, CARICOM 21%, UK 16%, Japan 6%.
Official exchange rate: Eastern Caribbean dollar (EC)$2.7=US$1.
Standard bank (buying) rate: EC$2.7=US$1.
Fiscal year: Calendar year.
Membership in International Organizations
UN and some of its specialized and related agencies, including
the World Bank, International Monetary Fund (IMF), UNESCO,
International Fund for Agricultural Development (IFAD),
International Labor Organization (ILO), Universal Postal Union (UPU),
World Health Organization (WHO); International Fisheries Service;
Nonaligned Movement, Organization of American States (OAS);
Caribbean Community and Caribbean Common Market (CARICOM);
Organization of Eastern Caribbean States (OECS); Latin American
Economic System (SELA).
PEOPLE
Most of Grenada's population is of African descent; there is
little trace of the early Arawak and Carib Indians. A few East
Indians and a small community of the descendants of early European
settlers reside in Grenada. Total population in 1986 was estimated
at 92,500, reflecting an annual increase of about 0.7% over the past
decade. About 50% of Grenada's population are under the age of 25.
English is the official language; only a few people still speak a
French patois. A more significant reminder of Grenada's historical
link with France is the strength of the Roman Catholic Church, to
which 63% of Grenadians belong. The Church of England is the
largest Protestant denomination.
HISTORY
Columbus discovered Grenada in 1498 during his third voyage
to the New World. He named the island "Concepcion." The origin of
the name "Grenada" is obscure. Legend has it that the Spanish
renamed the island for the city of Grenada. By the beginning of the
18th century, the name "Grenada" was in common use.
When discovered, Grenada was inhabited by Carib Indians who
had driven the more peaceful Arawaks from the island. Partly
because of the Caribs, Grenada remained uncolonized for more than
100 years after its discovery; British efforts to settle the island
were unsuccessful. In 1650, a French company founded by Cardinal
Richelieu purchased Grenada from the British and established a
small settlement. After several skirmishes with the Caribs, the
French brought in reinforcements from Martinique and slaughtered
the entire Indian population.
The island remained under French control until captured by the
British a century later during the Seven Year's War. Grenada was
formally ceded to Great Britain in 1763 by the Treaty of Paris.
Although the French regained control in 1779, the island was
restored to Great Britain in 1783 by the Treaty of Versailles.
During the 18th century, Grenada's economy underwent an
important transition. Like the rest of the West Indies, it was
originally settled to cultivate sugar, which was grown on estates
using slave labor. However, natural disasters paved the way for the
introduction of other crops. A plague of ants, followed by a
hurricane, virtually destroyed the sugar industry. In 1782, Sir
Joseph Banks, the botanical adviser to King George III, introduced
nutmeg to Grenada. The island's soil was ideal for growing the
spice, and, because Grenada was a closer source of spices for
Europe than the Dutch East Indies, the island assumed a new
importance to European traders. The collapse of the sugar estates
and the introduction of nutmeg and cocoa encouraged the
development of smaller land holdings. The island developed a
landowning yeoman farmer class; slavery was outlawed in 1833.
In 1833, Grenada was made part of the British Windward
Islands Administration. The governor of the Windward Islands
administered the island for the rest of the colonial period. In 1958,
the Windward Islands Administration was dissolved, and Grenada
joined the Federation of the West Indies. After the federation
collapsed in 1962, the British government attempted to form a
small federation out of their remaining dependencies in the eastern
Caribbean.
Following the failure of this second effort, the British and the
islands developed the concept of associated statehood. Under the
Associated Statehood Act of 1967, six British dependencies in the
eastern Caribbean (Grenada, St. Vincent, St. Lucia, Dominica,
Antigua, and St. Kitts-Nevis-Anguilla) were granted full autonomy
over their internal affairs. Great Britain retained responsibility for
their defense and external affairs. Grenada became an associated
state on March 3, 1967, but sought full independence, which the
British government granted on February 7, 1974.
After obtaining independence, Grenada adopted a modified
Westminster parliamentary system based on the British model, with
a governor general appointed by and representing the British
monarch (head of state) and a prime minister who is both leader of
the majority party and the head of government. Sir Eric Gairy was
Grenada's first prime minister.
On March 13, 1979, the New Joint Endeavor for Welfare,
Education, and Liberation (New Jewel) Movement ousted Gairy in a
nearly bloodless coup and established a People's Revolutionary
Government (PRG), headed by Maurice Bishop, who became prime
minister. His Marxist-Leninist government moved to establish
close ties to Cuba, the Soviet Union, and other communist bloc
countries.
In October 1983, a power struggle within the government
resulted in the arrest and subsequent execution of Prime Minister
Bishop and several members of his cabinet by elements of the
People's Revolutionary Army. Following a breakdown in civil order,
a multilateral, joint US-Caribbean force landed in Grenada on
October 25 in response to an appeal from the governor general and
to a request for assistance from the Organization of Eastern
Caribbean States. US citizens were evacuated, order was restored,
and US forces withdrew. An advisory council, named by the
governor general, administered the country until general elections
were held in December 1984. The New National Party (NNP), led by
Herbert Blaize, won a strong parliamentary majority and formed
Grenada's first democratic government since 1979.
GOVERNMENT AND POLITICAL CONDITIONS
Grenada is governed under a parliamentary system inherited
from the British (see PROFILE). Grenada's constitution was
suspended in 1979 by the PRG but restored after the October 1983
intervention by the United States and Caribbean countries. The NNP
won 14 out of 15 seats in free and fair elections in 1984. It
continued in power until 1989, but with a reduced majority because
of the defections in 1986 of two of its parliamentary members and
the April 13, 1987, resignations of three additional parliamentary
members (including two cabinet ministers). These five parliament
members formed the National Democratic Congress (NDC) and
became the official opposition.
In August 1989, Prime Minister Blaize broke with the NNP to
form a new party, The National Party (TNP), from the ranks of the
NNP. The split in the NNP resulted in the formation of a minority
government with the TNP controlling only six seats in the
parliament. Shortly thereafter, the prime minister suspended the
parliament pending constitutionally scheduled elections held March
13, 1990. Prime Minister Blaize died in December 1989 and was
succeeded as prime minister by Ben Jones until after the elections.
The NDC emerged from the March elections as the strongest party,
winning 7 of the 15 available seats. The governor general appointed
Nicholas Brathwaite, who successfully forged a majority coalition
giving the NDC 10 seats, as the new prime minister. The opposition
consists of three members of the Grenada United Labor Party (GULP)
and two members of the NNP, two TNP members and one GULP
member having joined the NDC in the government.
In 1985, the parliament restored the 1974 independence
constitution and legitimized the court system inherited from its
predecessors, who had ruled by decree. Political and civil rights
are fully guaranteed by the government. Political parties range
from the moderate TNP, NNP, and NDC to the Marxist Maurice Bishop
Patriotic Movement (MBPM) (organized by the pro-Bishop survivors
of the October 19, 1983, anti-Bishop coup), the New Jewel
Movement (NJM), and the populist GULP of former prime minister
Gairy. The MBPM and the NJM are not represented in the parliament.
Principal Government Officials
Nicholas Brathwaite-Prime Minister and Minister of External
Affairs, National Security, Home Affairs, Carriacou and Petit
Martinique Affairs. Ambassador to the United States-Denneth
Modeste
Grenada maintains an embassy in the United States at 1701
New Hampshire Avenue, NW, Washington, DC 20009 (tel. 202-265-
2561).
ECONOMY
The Grenadian economy grew by 5.6% in 1989, following an
annual growth rate of 5.3% in 1988. This rate is expected to remain
constant in 1990 as the tourism and construction sectors continue
their strong performance. The agriculture sector is expected to
rebound modestly from its poor showing in 1989 as well. The gross
domestic product (GDP) at current factor cost in 1989 was $140
million, and per capita income was $1,429.
Exports decreased from $32.9 million in 1988 to $28.1 million
in 1989, a decrease of 14.7%. Domestic exports in 1988 totaled
$28.4 million, while re-exports amounted to $4.5 million. Ninety
percent of domestic exports involved agricultural commodities, the
value of which fell slightly from 1988 to 1989 as production of
some of the major export commoditites declined. Total imports
were $99.6 million in 1989, an increase of $7 million over 1988 (or
7.6%).
Although declining in importance, agriculture remains the
single most important sector of the economy. In 1989, it accounted
for 16.8% of GDP, 85% of domestic exports, and one-third of the
work force. Agriculture is expected to grow by more than 3% in
1990. Other significant growth sectors in 1989 were construction
and manufacturing with growth rates of 15% and 12%, respectively.
The manufacturing sector is small, accounting for 5.5% of GDP in
1989. It is expected to grow by 10% in 1990, stimulated by several
new assembly industries. The construction industry, which began to
expand in 1984 mainly as a result of externally financed
infrastructure and other public works projects, was helped further
in 1989 by growth in housing. Growth in construction continued
through 1989 and is expected to reach a rate of 10% in 1990.
Tourism is an important source of foreign exchange but modest
in its overall contribution to GDP. The number of tourist arrivals
decreased by 4.2% to 192,172 in 1989 as a result of a sharp
decrease in cruise ship arrivals. However, the number of stayover
visitors increased by 11% to 66,596. Expenditure by tourists in
1988 was estimated at about $45.6 million. The initiation of daily
American Airlines flights between Puerto Rico and Grenada in June
1990 should help to speed development of the tourism sector.
Grenada has benefitted from the Caribbean Basin Initiative
through the establishment of a number of "twin plants" in the export
processing zone. Granada also has ratified a bilateral investment
treaty and a tax information exchange agreement with the United
States.
DEFENSE
Security in Grenada is maintained by the 650 members of the
Royal Grenada Police Force (RGPF), which includes an 80-man
paramilitary Special Services Unit (SSU) and a 30-man coast guard
unit. The US Army and the US Coast Guard provide periodic training
for the SSU and the coast guard.
FOREIGN RELATIONS
The United States, Venezuela, and Taiwan have embassies in
Grenada. The government of the United Kingdom is represented by a
resident commissioner (as opposed to the governor general, who
represents the British monarch). Grenada has been recognized by
most members of the United Nations and maintains diplomatic
missions in the United Kingdom, the United States, Venezuela, and
Canada.
Grenada is a member of the Caribbean Development Bank, the
Caribbean Common Market (CARICOM), the Organization of Eastern
Caribbean States (OECS), and the British Commonwealth. It joined
the United Nations in 1974, and the World Bank, the International
Monetary Fund, and the Organization of American States in 1975.
US-GRENADIAN RELATIONS
The US government established an embassy in Grenada on
November 1, 1983. The US Agency for International Development
(USAID) has played a major role in Grenada's development since
then, providing more than $120 million in economic assistance.
There are about 30 Peace Corps volunteers in Grenada; they teach
remedial reading. Some US military training is given to
Grenadian security and defense forces.
Principal US Officials
Charge d'Affaires-designate-Russell Surber
Economic Officer-William H. Memler
Administrative Officer-Edmee Pastore
Political Officer-Mary Ann Wright
Consular-Charles Jones
Peace Corps-Carol Cook
The US embassy is located at Point Salinas, Grenada. The
mailing address is P.O. Box 54, St. George's, Grenada, West Indies.
TRAVEL NOTES
Climate: The climate is tropical and, although uncomfortably
humid at times, is not unhealthful. A mild, dry season lasts from
January to May, with night temperatures dropping to 16 C-18 C (60
F-65 F). During the rest of the year, there are frequent rain
showers. The temperature rises to 32 C (90 F), and the humidity is
high night and day. Rainfall varies from 152 centimeters (60 in.)
per year in the coastal districts to 381-508 centimeters (150-200
in.) in the mountains. The Grenadines islands tend to be drier than
Grenada. Carriacou, for example, has an average rainfall of about
127 centimeters (50 in.) a year.
Entry requirements: Proof of citizenship with photo ID is
required by US citizens, but a visa is not necessary for a stay of
less than 3 months. No immunizations are required.
Currency: Grenada belongs to the Eastern Caribbean Currency
Authority and uses the EC dollar. Barclay's Bank International and
the Bank of Nova Scotia have branch offices in St. George's.
Transportation: Point Salines International Airport is served
several times daily by Leeward Islands Air Transport (LIAT) from
Barbados, Trinidad, and St. Vincent. British West Indian Airways
(BWIA) also provides regular service from Trinidad, New York, and
Miami as well as weekly service from New York. American Airlines
has begun daily service from Puerto Rico. British Airways has one
flight weekly from London.
Published by the United States Department of State --Bureau of
Public Affair --Office of Public Communication -- Washington, DC
-- November 1990 -- Editor: Marilyn J. Bremner Department of
State Publication 8822 -- Background Notes Series -- This
material is in the public domain and may be reprinted without
permission; citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office,
Washington, DC 20402.(###)