Other methods of gaining wealth in the Caribbean include offshore banking and financial services. Various islands have established themselves as banking centers where one can set up financial accounts that are outside the jurisdiction of other countries.
The wide level of diversity in the Caribbean has not made it easy for outside entities to provide support and assistance for common economic goals. The Caribbean Community (CARICOM) is an organization with fifteen Caribbean members established to promote economic integration and cooperation in the region.
The Caribbean Basin became an active region for European ships to enter and vie for possession of each island. Many of the Caribbean islands changed hands several times before finally being secured as established colonies (see Table 5.1 “Historical Caribbean Colonizers” ).
Colonialism drastically altered the ethnic makeup of the Caribbean; Amerindians were virtually eliminated after the arrival of Africans, Europeans, and Asians. The current social hierarchy of the Caribbean can be illustrated by the pyramid-shaped graphic that was used to illustrate social hierarchy in Mexico.
The primary source of the government’s revenue comes from indirect taxes such as value-added tax (VAT) and customs duties.
Jamaica. Up until recently, Jamaica was mostly known for its reggae music, crystal clear beaches, and a distinct accent. However, the Caribbean island’s financial industry recently made headlines when Bloomberg reported that the Jamaica Stock Exchange (JSE) was the world’s best-performing stock market for 2015.
In 2007, the financial services industry in the Cayman Islands generated $1.2 billion Cayman Island dollars (KYD) in GDP, representing 55% of the nation’s economy. The industry also covered 40% of all government revenue, directly generating KYD$ 204 million. Unlike Jamaica and Trinidad and Tobago, the Cayman Islands uses a fixed exchange rate ...
The Jamaican economy is heavily reliant upon export revenues from its agriculture and mining industries. According to a January 2015 report published by the U.S. Geological Survey (USGS), Jamaica owned the world's fifth largest bauxite reserves in 2014.
Much more than a holiday destination, the Caribbean region consists of small island economies that are major players in a wide range of global industries. The twin-island state of Trinidad and Tobago, for example, has fueled their economic growth with export revenues from oil and gas. On the other hand, Jamaica is one of the ...
In addition to being the Caribbean’s second largest producer and exporter of sugarcane, the Dominican Republic exports cigars, sugar cane, refined petroleum, and bananas. The island’s list of key trading partners includes the United States, China, and Haiti. (See also, Find the Top Caribbean Islands For Retirement .)
Secluded from the hustle and bustle of the busy cities of the world, the Caribbean is known as one of the world's top vacation destinations. With as many as 40 million residents and 28 island nations, the Caribbean is comprised of some of the world's most dynamic economies.
Queen Elizabeth of England encouraged both Dutch and English privateers to engage in smuggling and piracy as an attempt to weaken Spain’s involvement in the Dutch Wars of Independence.
Ships became faster and more manoeuvrable. By the fifteenth century the use of the magnetic compass had become widespread. Other important developments included the astroble, a device for observing the position of the sun and stars, and the quadrant, which measured the altitude of these heavenly bodies.
The next year, however, Spain and Portugal signed an agreement, the Treaty of Tordesillas, that moved the line farther west (this line is drawn in the Pacific).
Even the Catholic rulers of Spain, Portugal and France were bent on building empires and gaining wealth, they were also sincerely committed to converting the heathen peoples of the world. The Spanish conquerors in the New World were required to take priests with them on every expedition.
He discovered all the major islands of the Caribbean, including Haiti (originally called Hispaniola by the Spanish), San Salvador, Puerto Rico, Jamaica and Cuba.
Other methods of gaining wealth in the Caribbean include offshore banking and financial services. Various islands have established themselves as banking centers where one can set up financial accounts that are outside the jurisdiction of other countries. These offshore accounts provide tax havens for individuals or corporations that wish to evade taxes in their home countries. Many of these island banking centers do not share account information with tax agencies or government offices of other countries. Places such as the Cayman Islands have a worldwide reputation for professional financial services for offshore banking. As a result, the people of the Cayman Islands have a high standard of living with much national wealth. The Bahamas and the Turks and Caicos have also established offshore financial centers, and other Caribbean Islands are working to increase their visibility with similar services. All are hoping to gain income from this low-impact and high-income enterprise. The United States and other countries have made attempts to pressure these islands to share the financial account information of people evading taxes. If successful, there may be less of an incentive for individuals and businesses to use offshore accounts to shelter income from taxes or for those involved in illegal money-laundering schemes to hide money in the Caribbean.
Discussion and Study Questions 1 Which islands make up the Greater Antilles? Where are the Lesser Antilles? 2 Which European countries were the main colonizers of the Caribbean? 3 How is Cuba a good example of a rimland country? 4 Why does the United States still have an economic embargo against Cuba? 5 How is the political system in Cuba different from that of the United States? 6 Why is Puerto Rico a commonwealth of the United States? 7 How is Haiti different from its neighbor, the Dominican Republic? 8 What are the positive and negative perspectives on the Caribbean tourism industry? 9 Besides tourism, what other methods do people in the Caribbean islands use to generate wealth? 10 How do differences in musical styles tell a story of Caribbean culture?
It has been estimated that as many as one hundred thousand Amerindians inhabited Cuba when Christopher Columbus first landed on the island in 1492.
The four main colonial powers in the Caribbean were the Spanish, English, Dutch, and French. Other countries that held possession of various islands at different times were Portugal, Sweden, and Denmark.
Jamaica has as much as a twenty-inch difference in rainfall between the north side and south side of the island because most of the rain falls on the north side, where the prevailing winds hit the island.
The Lesser Antilles are in the eastern and southern region. The Bahamas are technically in the Atlantic Ocean, not in the Caribbean Sea, but they are usually associated with the Caribbean region and are often affiliated with the Lesser Antilles.
The US Virgin Islands were purchased from Denmark in 1918. Sweden controlled the island of St. Barthelemy from 1784 to 1878 before trading it back to the French, who had been the original colonizer. Portugal originally colonized Barbados before abandoning it to the British. Table 5.1 Historical Caribbean Colonizers.