Columbus was the first European to discover The Bahamas (and hence America) in 1492. San Salvador was his first landing place in the New World; Cockburn Town, the main settlement, is not far from the spot where Columbus is said to have landed (although other sites also claim this distinction). Columbus met the Lucayan Indians, the original inhabitants of The Bahamas.
The islands were largely ignored by the Spanish and the first European settlement was established by a group of English religious dissidents, known as the Eleutheran Adventurers, in 1647. In 1717, the islands were formally
colonized by Britain. They were briefly occupied by the Spanish in 1782, although returned to Britain the following year, under the terms of the Treaty of Paris. Thereafter, the Bahamas became a haven for freed slaves and, subsequently, a favorite holiday destination for the wealthy. The post of Governor, representing the British monarch, became a remote but pleasant sinecure. The best-known incumbent was the Duke of Windsor, who had abdicated the British crown in 1936, and, in view of his pro-Nazi sympathies, was dispatched to the territory in 1940, for the duration of World War II.
In 1964, The Bahamas were granted internal self-government, followed by independence in 1973. Post-independence politics in The Bahamas have been dominated by (later Sir) Lynden Pindling, who had first been elected to the premiership as head of the Progressive Liberal Party (PLP) in 1967. The PLP, with Pindling as its head, was returned to office at each of five subsequent elections, despite increasingly numerous and detailed allegations of corruption and involvement in drug trafficking against Pindling and some of his associates. All were vehemently and repeatedly denied by Pindling. Pressure from the USA (which has leased two military bases on the islands since the 1950s) forced the government to introduce more stringent measures against drug trafficking, including changes to the islands’ banking secrecy laws.
The damage to Pindling’s reputation and the islands’ poor economic performance during the early 1990s led to the PLP’s rejection by the electorate at the August 1992 polls. The new premier was the leader of the long-time opposition Free National Movement (FNM), Hubert Ingraham. Once a minister under Pindling, Ingraham had resigned in 1984. Ingraham was re-elected in 1997. However, at the most recent poll in May 2002, the PLP resumed control of the government with an overwhelming majority in the House of Assembly. The current premier is Perry Christie, another veteran Bahamanian politician and former colleague of Pindling. Pindling retired from politics after his 1992 defeat. He died in August 2000.
In late 2004, Hurricane Frances caused extensive widespread damage in The Bahamas. Hurricane Jeanne followed only weeks later. The future for The Bahamas will almost certainly involve plans to better detect such hurricanes, and better lessen their impact.
GovernmentThe bicameral parliament – composed of a 16-member Senate, whose membership is appointed, and a 40-strong House of Assembly directly elected for a five-year term – has legislative powers. The British monarch has formal executive powers, vested in a Governor General, although in practice the Governor General almost invariably acts upon the advice of a Cabinet of Ministers appointed from the House of Assembly.
EconomyOne of the wealthiest countries in the Caribbean, The Bahamas depends heavily on its main industry of tourism which provides around 60% of GDP. The economy grew by about 3% in 2005, largely thanks to the recovery of tourism from the USA.
The Bahamas also has a sizeable offshore banking sector, accounting for around 15% of GDP, although it has come under pressure as a result of competition from elsewhere and international efforts to tighten up on ‘tax havens’. In June 2000, the Bahamas were identified by the Organization for Economic Cooperation and Development (OECD) as one of 35 countries whose financial laws were inadequate to prevent large-scale tax evasion and possible money laundering. The government has since taken measures to meet the OECD’s requirements.
Most foodstuffs and virtually all other products must be imported, although the government is aiming to increase food production. Unemployment in 2005 remained fairly steady at 10%.
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