The two smaller Cayman islands were discovered by Columbus in 1503. Sir Francis Drake explored the area in 1586, but it was 1670 before the islands came under full British rule. Grand Cayman was settled from Jamaica by 1672; Little Cayman and Cayman Brac were settled some time later and maintained a separate administration until 1877. The Governor of Jamaica held administrative responsibility for the islands until 1962, when Jamaica itself became independent. Since then the islands have had their own Governor appointed by the British crown (see
Government section to follow). The present
incumbent, appointed in 2002, is Bruce Dinwiddy.
Cayman politics operate without political parties as such; at election time, rival political groupings are organized into ‘teams’ with names such as ‘Unity’ and ‘Progress with Dignity’. The membership of these is fairly fluid. A modest degree of constitutional reform was introduced in 1992, including the appointment of a Chief Minister, and this prompted the formation of what was then the territory’s only political organization, the
Progressive Democratic Party (PDP). For electoral purposes, the PDP operated as the ‘National Team’ and at the 1992 poll won all but three of the 15 elective seats in the islands’ parliament. However, following the most recent poll in November 2000, another political party, the
United Democratic Party, was formed by the ‘non-partisan’ bloc which won the majority of seats. Thus the Cayman Islands joined the world of regular party politics. McKeeva Bush assumed the Premiership. As of May 2005 the
Progressive Democratic Party (PDP) won the majority of seats.
Although the UK is officially responsible for the islands’ foreign policy, the USA, as in the rest of the Caribbean, exerts a dominant influence over its ‘back yard’. Both the US and British Governments have been concerned about the exploitation of the islands for drug trafficking and its associated money laundering. There is virtually no concern on the islands about the issue of independence, leaving just one other issue of contention – citizenship. Following a change of policy, the British Government has announced that it is prepared, in principle, to grant full British citizenship to the inhabitants of the Cayman Islands.
GovernmentAs a British Overseas Territory, the Caymans have a Governor who is appointed by the British monarch. The Governor is responsible for external affairs, security and defense. He is also Chairman of the Executive Council comprising three members appointed by the Governor and four members from the Legislative Assembly, elected by that body itself. The Legislative Assembly comprises the above three members of the Executive Council appointed by the Governor and 15 members elected by universal adult suffrage every four years.
EconomyThe Cayman Islands have no direct taxation and have become important as an offshore financial center and a tax haven. Good communications and infrastructure have also helped the islands become the world’s fifth-largest banking center. A key agreement on information exchange signed with the US government has spared the Cayman Islands many of the problems (money laundering and large-scale tax avoidance) that have bedeviled other aspirant offshore financial centers.
Tourism is the islands’ other main source of revenue. There is little agriculture, and most food for the islands is imported. Industry is confined to construction and food-processing.
The standard of living on the islands is one of the highest in the world, and the per capita income is the highest in the region. The healthy state of the economy has attracted migrant workers from Jamaica, Europe and North America.
The Cayman Islands have observer status at the Caribbean Common Market and associate membership of the European Union.
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