St.
Vincent and the Grenadines Geography
The state of St. Vincent and the Grenadines
(SVG) is located north of Trinidad and Tobago
at 600 56’ W and 130 15’ N. It is approximately
1,600 miles southeast of Miami and 100 miles
from Barbados, and forms part of the Windward
Islands, themselves being part of the Lesser
Antilles.
SVG
consists of a group of 18 small islands. The
main island (St Vincent) has an area of 150
square miles. The Grenadines, of which Bequia
and Mustique are the best known, provide the
best sailing waters in the Western Hemisphere
and arguably the world.
St
Vincent is a lush volcanic island, just 18
miles north to south and 11 miles wide. The
windward coast is lined with cliffs while
the leeward coast has spectacular slopes and
valleys running down to beaches lapped by
the tranquil Caribbean.
The climate is tropical, with little seasonal
temperature variation; the rainy season is
from May to November. The terrain is mountainous
for the most part, with a limited amount of
arable land. Mount Soufriere, an active volcano,
is in the north of the island of St Vincent.
The
Capital, Kingstown, combines reminders of
its colonial past with a modern commercial
centre.
American
Eagle operates a scheduled service between
San Juan, Puerto Rico and Canouan. Air Caraibes,
Bwee Express, Caribbean Star and LIAT provide
scheduled services from other Caribbean islands
to St Vincent & the Grenadines.
St
Vincent and The Grenadines is in the Atlantic
standard time zone, 1 hour ahead of Eastern
Standard Time and 4 hours behind GMT.
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St. Vincent and the Grenadines Population, Language
and Culture
St
Vincent was first settled around 5000 BC by
the peace-loving Ciboney, then by the Arawaks
and the war-like Caribs.
A Dutch slave ship, wrecked off Bequia in 1675,
brought the first Africans who inter-married
to create the Black Caribs whose descendants
live on the island today. Fought over for nearly
a century by the French and British, sovereignty
was settled on the British in 1783.
Independence was granted on 27 October 1979,
and today St Vincent and The Grenadines is an
independent democracy and part of the British
Commonwealth.
The
population was estimated at just under 104,000
for 2011; it is divided as follows: black 66%,
mixed 19%, East Indian 6%, Carib Amerindian
2%, other 7%. The religion is primarily Protestant.
The
official language of Saint Vincent and the Grenadines
is English, and it is the language for doing
business. However, French and Spanish are widely
taught on the Island and there are many bi-lingual
inhabitants.
An
interesting blend of African, Indian, Asian
and European influences are expressed in the
lifestyle of the people. The annual carnival
('Vincy Mas') is a showcase for the best in
calypso singing, steelpan orchestras, soca music
and masquerade costumes.
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St. Vincent and the Grenadines Government
The
islands gained independence from Britain in
1979 but the Queen remains as Head of State
and is represented by a Governor General. SVG
is a member of the British Commonwealth, the
United Nations, the Organization of American
States, the International Labor Organization,
Caricom, and the Organization of Eastern Caribbean
States.
SVG is a parliamentary democracy, and elections
are held every five years. There is a unicameral
House of Assembly (21 seats, 15 elected representatives
and 6 appointed senators; representatives are
elected by popular vote from single-member constituencies).
Elections were last held on 13th December, 2010
(next to be held 2015).
The
leader of the majority party is usually appointed
prime minister by the governor general; the
deputy prime minister is appointed by the governor
general on the advice of the prime minister,
and the Cabinet is appointed by the governor
general on the advice of the prime minister.
Currently the Prime Minister is Ralph E Gonsalves
(since 2001).
The
basic law of SVG is the English common law but
the country has developed its own set of statutory
provisions especially in the area of trusts,
banking and international finance. The court
of appeal is the Eastern Caribbean Supreme Court
(based on Saint Lucia; one judge of the Supreme
Court resides in Saint Vincent and the Grenadines).
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St. Vincent and the Grenadines Economy and Currency
At
one time SVG was a major sugar producer, but
now bananas are the staple of the economy, although
tourism has become increasingly important, and
the government has been trying hard to build
a financial services centre. Tropical storms
such as 2004's Hurricane Ivan sometimes cause
damage to crops and houses, and tourism in the
Eastern Caribbean suffered following 11 September
2001.
The
rate of economic growth was a strong 8% in 2007,
dropped to -0.6% in 2008 and -1% in 2009. Growth
of 0.5% was estimated for 2010 with a 2% increase
forecast for 2011. Inflation rose sharply in
the first three quarters of 2008, reflecting
higher world fuel and food prices, and finished
the year at 10.1%. A 0.4% increase was recorded
for 2009 and estimates are that the rate for
2010 will be 1.2% with forecasts for 2011 putting
inflation at 2.8%.
The
Unity Labour Party (ULP) government which took
office in April 2001 and was re-elected in 2005
implemented an ambitious framework of policy
reforms designed to strengthen the public finances,
achieve higher growth, lower unemployment and
reduction in poverty. The central government’s
fiscal position has been strengthening since
2005. In 2008 the fiscal deficit was lowered
to 1.7% of GDP and a primary surplus achieved.
In 2009 the deficit was 3.6%. Estimates for
2010 put the deficit at 13.4% and forecasts
for 2011 predict a lowering of the deficit to
4.6%. Unemployment is high; GDP per head is
ECD10,300 (2010 est) at purchasing power parity.
The
Offshore Finance Authority was created by Parliament
to institute a new system to manage, direct,
control and supervise the Offshore Financial
Services Industry in St. Vincent and the Grenadines.
However, its role was subsequently assumed by
the International Financial Services Authority
(IFSA). In 2011, the IFSA is expected to fall
under the umbrella of the Financial Services
Authority, a single regulatory organisation,
in an effort to enhance and strengthen the regulatory
and supervisory capacity of the jurisdiction.
The
offshore sector grew rapidly in the late 1990s,
but action taken by the Government in 2001 and
2002 to improve the regulatory and supervisory
framework led to a number of closures of financial
institutions.
The
local currency is the Eastern Caribbean Dollar
(ECD) which is linked to the US$ at an exchange
rate of 2.7 ECD to 1 USD. This rate has remained
unchanged since 1976.
Monetary
matters are regulated by the Eastern Caribbean
Central Bank with headquarters in St. Kitts.
The ECCB promotes and maintains the monetary
stability of the single common currency (the
Eastern Caribbean dollar) of the group of eight
small island economies, including Anguilla,
Antigua and Barbuda, Montserrat, St. Kitts and
Nevis, St. Lucia, and St. Vincent and the Grenadines.
All
domestic commercial banks in St. Vincent and
the Grenadines are regulated by the ECCB.
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St. Vincent and the Grenadines Entry and Residence
All visitors must have valid passports and a
return or ongoing ticket. However, nationals
of Canada, UK and the USA need only proof of
citizenship (a valid or expired passport, certified
birth certificate or Certificate of Naturalization
and photo identification) along with an onward/return
ticket and/or proof of sufficient funds.
Travelers
must pay a departure tax.
The
ownership of land by foreigners is governed
by the Aliens Holding Ordinance. All foreign
nationals wishing to acquire land in the state
must obtain a license from the Government. License
applications fall into two categories: those
involving an acre of land or less; and those
involving more than one acre of land. For an
acre of land, the application must contain an
approved plan for development and an execution
of conveyance; conveyancing must be completed
within 6 months. For more than one acre of land,
you must provide a development plan for the
entire area; physical and architectural aspects;
details of financing; and the labour force to
be employed.
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St. Vincent and the Grenadines Business Enviroment
The
British telecommunications giant, Cable and
Wireless (now known as LIME in the Caribbean)
has traditionally dominated the telecommunications
services market in St. Vincent and the Grenadines.
In
July 2007, Digicel Group Ltd, a fast growing
wireless telecommunications operator in the
Caribbean and Central America, issued a claim
in the English High Court against Cable and
Wireless plc and various of its subsidiaries,
seeking multi-million pound damages.
Digicel
claimed that C&W had engaged in illegal
behaviour by impeding and delaying Digicel’s
entry into various telecommunications markets
in the English-speaking Caribbean.
Digicel
alleged that it had been the victim of a co-ordinated
effort on C&W’s part to prevent and
delay Digicel launching competing mobile telephone
networks in St Lucia, St Vincent & the Grenadines,
Grenada, Barbados, the Cayman Islands, Trinidad
& Tobago and the Turks and Caicos Islands.
The Digicel claim was denied in the UK High
Court in April, 2010, except for a minor breach
of contract by C&W in the Turks and Caicos
Islands which did not result in a delay for
Digicel.
Telephone,
facsimile, telex and cable services are in wide
use, together with e-mail (internet services).
Cellular phone services are also available.
The Government has liberalized the telecommunications
market.
Kingstown
has a natural deepwater harbour with a wharf
to accommodate ocean-going ships. There are
regular services between St Vincent and the
major ports in North America, Europe and the
Caribbean. A container park at Kingstown and
a container port at Campden Park have been completed,
and cruise ship facilities in Kingstown have
been updated. The E.T. Joshua Airport located
on St. Vincent’s south coast has a modern
terminal building, night landing facilities
and accommodates small aircraft such as BAE
748 Avro.
There
are more than 580 km of all-weather surfaced
roads to handle heavy traffic which allow for
the free flow of goods and services between
the various centers of economic activity and
also facilitate the movement of workers to the
industrial estates.
In
addition to the US dollar, the British pound
sterling and the Canadian dollar are widely
accepted. All major credit cards are accepted
at restaurants and Hotels, and American Express,
Visa, and MasterCard have representative agents
in the State.
The St. Vincent Electricity Services Limited
(VINLEC) is responsible for the supply of electricity.
The installed power capacity is 94 megawatts
and the voltage is 440v 3-phase (50 cycles)
for industrial purposes and 220v single phase
(50 cycles) for domestic purposes. The standard
industrial tariff is ECD 12.00 per kwh plus
variable surcharge.
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St. Vincent and the Grenadines Investment Incentive
Schemes
St.
Vincent & The Grenadines provides investment
incentives in the areas of light manufacturing,
agroprocessing, information technology, film,
international financial services, tourism and
other services. Benefits include tax holidays,
repatriation of profits, duty free concessions
and consumption tax exemptions. Tax holidays
vary between 10 years and 15 years (the current
nominal corporation tax rate in SVG is 32.5%,
down from 40% just a few years ago).
The Fiscal Incentive Act No.5 of 1982, specifies
five groups of enterprises; the length of the
tax holiday depends on the amount of the value
added to a product in SVG, the level of employment,
inter-industry and sectoral linkages, the opportunity
to earn foreign exchange, and the level of investment.
The
main investment promotional agency is Invest
SVG launched in August 2009, formerly knows
as the National Investment Promotions Incorporated
(NIPI) agency, which launched on August 16,
2004, and reports to the Office of the Prime
Minister, Dr Ralph Gonsalves.
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