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Grenada
is the largest of a group of Caribbean islands,
north of Trinidad and Tobago. It is volcanic
in origin, with central mountains; there are
extensive, sandy beaches, and many reefs. The
climate is tropical, tempered by northeast trade
winds. Grenada is on the southern edge of the
hurricane belt, but the occasional hurricanes
can be devastating. After Hurricane Janet in
1955, with winds of 115 mph, came Hurricane
Ivan in 2004 and Hurricane Emily in 2005, both
of which caused serious damage.
A French colony was established on Grenada in
the 17th century, but eventually the island
was ceded to the British under the Treaty of
Versailles in 1783. The British imported African
slaves and established sugar plantations, which
were staffed by indentured Indian immigrants
after the abolition of slavery. The island gained
independence in 1974.
Despite
its British history, the island retains many
French cultural influences. The population of
91,000 (2009) has English as its official language.
Grenada has a constitutional monarchy with a
Westminster-style parliament. The Queen is the
Head of State, represented by a governor-general.
Although
the island is famous for its nutmegs, Grenada
now relies on tourism as its main source of
foreign exchange; the development of an offshore
financial industry has also contributed to growth
in national output. The island is recovering
quickly from the hurricanes of 200/5. The currency
is the East Caribbean dollar.
Foreign
investment is welcomed, but there are some restricted
sectors of the economy. Domestic companies are
taxed on their profits, but the offshore sector
is largely free of taxation; and investors once
accepted are given good fiscal incentive packages.
The offshore sector offers International Business
Companies, Banking, Insurance and Gaming regimes.
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13/07 
