Belize

Belize is the only ACP state in Central America. English and Spanish are the principal languages. The economy is mostly dependent on the agricultural production of bananas, citrus products, sugar, and fishing. Yet, tourism is growing. The country scores well in different fields such as life expectancy, school attendance, and literacy rate.

Independent since 1981 with a parliamentary two party system based on the British model, the country is a stable democratic state. Belize has kept its borders open to refugees coming from Guatemala, Honduras and El Salvador.

The economy performed well in the second half of the 1980s, real GDP growth exceeded 10 per cent per year and inflation was 2.5 per cent on average. This was also thanks to preferential access to the European and US markets. Since 1990, that growth has slowed down to 3-5 per cent.

The economy of Belize is dominated by agricultural exports. In the past, the sugar industry was almost the only export earner, but this contracted in the 1970s and early 1980s as a result of poor world prices and cuts in preferential quota access to the USA. Belize was encouraged to diversify into banana production and in 1990, bananas, sugar and citrus were the three principal exports, representing 90 per cent by value of all agricultural exports and 72 per cent by value of all Belize exports.

Since privatisation of the banana industry in 1986 and the sale by Chiquita of its majority interest in Fyffes (the principal shipper and purchaser of Belize bananas), an estimated BZ$ 125 million has been invested by the private sector in the banana industry.

In October 1990, a privately financed port at Big Creek was opened, capable of docking an ocean-going ship to carry bananas. Prior to this the bananas had to be barged from Belize to Honduras for trans-shipment, an expensive operation and one which was harmful to the quality of the fruit. The operation of the new port, however, depends on a planned throughput of around 5 million boxes of bananas per year.

Recent public sector investment on infrastructure in southern Belize amounts to around BZ$ 60 million, a substantial proportion of which has been provided as loans or grants by external agencies, principally the EU and the US.

Banana production and related internal transportation and distribution of inputs are a source of about 10 per cent of total employment in Belize. Production is concentrated in the southern part of the country (the Stan Creek district), which is one of the most economically deprived areas and where the banana industry accounts for over 45 per cent of all employment.

There is no alternative employment for the 10,000 people dependent on these jobs. Every BZ$ 1 million in the base revenue of the banana industry in Belize provides around BZ$ 400,000 of regular income to households in the southern half of the country. Thus, it encourages the creation and development of the services and infrastructure necessary for a stable rural economy. Any contraction of the banana industry in Belize would have a significant impact on the national economy and would devastate the local economy in southern Belize.

The banana industry is the only industry in southern Belize with the volume and capacity to warrant the establishment of any diversification plan for the area.