$Unique_ID{COW00375} $Pretitle{402} $Title{Belize The Economy} $Subtitle{} $Author{Embassy of Belize, Washington DC} $Affiliation{Embassy of Belize, Washington DC} $Subject{belize development land government license city minister services industry agricultural} $Date{1990} $Log{Stone Carving*0037501.scf Islands*0037502.scf Leopard*0037503.scf Pecory*0037504.scf Sailing*0037505.scf Table 2.*0037501.tab Table 3.*0037502.tab } Country: Belize Book: Fact Sheet Belize Author: Embassy of Belize, Washington DC Affiliation: Embassy of Belize, Washington DC Date: 1990 The Economy [See Stone Carving: Courtesy of the Embassy of Belize, Washington DC.] A number of Government and international development agencies are involved in assisting the Government of Belize in its development through economic cooperation programmes. These include the U.K. Government, the Canadian International Development Agency (CIDA), the United States Agency for International Development (USAID), CARE, United Nations agencies, the European Development Fund (EDF) and the Caribbean Development Bank (CDB). The economy of Belize was traditionally based on forestry, mainly the export of logwood, mahogany and chicle. The country's economy is now based on agricultural development. But in recent years there has been a resurgence in forestry. The main exports are sugar, citrus, bananas, fish products (mainly lobster), timber and garments. Dairy farming is growing in importance and the livestock industry continues to grow. Several oil companies hold exploration or prospecting licenses. Oil was discovered in the north of the country in 1981, but not in commercial quantities. Tax concessions and other incentives encourage the development and diversification of manufacturing industries which include clothing and textiles for export, plywood and veneer manufacturing, matches, beer, rum, soft drinks, furniture, boat building, and battery assembly. Exports in 1988 totaled Bz.$232.5 million and imports Bz.$361.9 million. Currency and Banking The currency unit is the Belize Dollar (Bz.$). The fixed rate of exchange is Bz. $2.0 to US $1.0 There are four commercial banks (the Belize Bank Ltd., Barclays Bank PLC, the Bank of Nova Scotia and Atlantic Bank Ltd.), and a Government Savings Bank. A Central Bank has been set up to replace the Monetary Authority of Belize. Recent amendments to the Banking Act permit offshore banking. Finance Customs duties account for more than half of total revenue. The next important source is income tax, which accounts for more than a third. The main items of expenditure are agriculture, public works, education and defence. Belize does not receive any external aid for its recurrent revenue. The 1989-90 national budget is Bz. $244.6 million. Capital expenditure is financed through economic cooperation programmes with the U.K., Canada and U.S.A. and the loans from the Caribbean Development Bank. Belize received Bz. $20.0 million under U.S. Caribbean Basin Initiative to assist in private and public sector projects. Land [See Islands: Courtesy of the Embassy of Belize, Washington DC.] On December 31, 1973 the Belizean Government published an Act (No. 31 of 1973) designed to discourage land speculation and encourage land development by aliens and alien-controlled companies. As a result of this law, in order to purchase land in excess of one half acre within a city or town, or in excess of ten acres outside a city or town, an alien must obtain a license from the Minister of Natural Resources. Such license shall be recorded in the General Registry as a deed. The terms and duration of such license are negotiable but generally will require the licensee to do a certain amount of development work or spend a certain amount of money on development of the land under license during the period of the license. The Minister may at his discretion alter, amend or extend the terms of such a license. Breach of any term or condition in a license shall render void. The Minister may by notice in writing give a licensee three months to comply with any term or condition of the license which has been breached, and if the licensee fails to comply within the time specified, the Minister may, by notice in writing to the licensee, declare the license void. If the license is declared void by the Minister, the licensee has a right to appeal to the Supreme Court for review of the Minister's decision. If there is no appeal or if the appeal is dismissed, then the Minister may record a deed in the Registry cancelling the license and thereupon the land in respect of which the license was issued and all buildings, fixtures and appurtenances thereon shall forthwith be forfeited to the Government. An alien leasee (or beneficiary) under a will has the right to receive the proceeds of sale from land left to him under the terms of a will. Once the conditions of the license have been fulfilled to the satisfaction of the Minister, the Minister shall grant a certificate declaring that the license shall no longer be voidable, thus cancelling the encumbrance created by the license. This certificate shall be recorded in the General Registry as a deed. The incumbent Minister has given an assurance that any bona fide developer will encounter no problem in obtaining a license provided that the developer is prepared to carry out a meaningful amount of development during the term of his license. The Minister has also affirmed that once this development obligation has been fulfilled, there will be no delay in the issuance of a certificate declaring the license no longer voidable. In the case of land which already is developed, a license will be required but there will be no development obligations under the license. While no regulations have been made by the Minister governing the issuance of license, in the case of licenses covering agricultural land the general requirement is that the licensee must agree to develop at least 10% of the arable land annually until all such land is developed. As a rule, Government does not sell its land outright. But it provides arrangements whereby the leasee must first develop the land within a certain period with option to purchase afterwards. Land for lease is available at an average of about $2.50 per acre per year. The price of land, depending on location and accessibility, varies between $30. and $200. per acre uncleared. Land clearing using tractors costs between $200. and $500. per acre, depending on size and type of terrain. Clearing land using the slash and burn method is about $90. per acre. Agriculture Agriculture currently provides some 65% of the country's total foreign exchange earnings, and employs approximately 30% of the total labour force. Although about 1,998,230 acres or 38% of the total land area are considered potentially suitable for agricultural use, only perhaps 10 to 15% is in use in any one year. About half of this is under pasture, with the remainder in a variety of permanent and annual crops. The traditional system of "milpa" (shifting cultivation) involves the annual clearing of new land for crop production; however, there is an increasing number of farmers making permanent use of cleared land by mechanical means. A tax is levied on the unimproved "value" of the land. The expansion and improvement of agriculture is one of the principal aims of national development planning. The Department of Agriculture of the Ministry of Agriculture & Fisheries maintains an extension service with officers posted in all districts. Agricultural research is conducted at the Central Farm Research Station into a variety of tropical crops, livestock and pasture. Agricultural research is also done by other non-governmental bodies within the country. The Ministry also provides mechanical, veterinary and quarantine services to farmers and an agricultural training college at Central Farm. Other government services include the Belize Marketing Board, which operates in the buying and selling of producers' crops, and the Development Finance Corporation, which offers credit to farmers, amongst others. Farming Patterns The agricultural sector is dominated by the sugar industry, which is concentrated in the Corozal and Orange Walk Districts. Annual production of sugar is around 80,000 tons, from 49,400 acres of sugar cane. A statutory Sugar Board controls and regulates the sugar industry and the production of cane. A Cane Farmers' Association, formed in 1959, acts on behalf of the cane growers in negotiations with the manufacturers and provides technical and financial assistance to farmers. The industry has suffered from severely depressed prices on the world market, and efforts are therefore being made to encourage diversification. The citrus industry, centered in the Stann Creek District, is the second major contributor to export earnings. The bulk of output from 10,868 acres of orange and grapefruit groves is processed into concentrate, oil and squash for export. The statutory Citrus Control Board is responsible for regulating the industry, whilst the Citrus Growers' Association represents the growers and provides assistance in various forms. Bananas, again located in the Stann Creek District, are the third largest export crop. Despite damages from hurricanes and drought in the 1970's, more than 1,482 acres are now established. Funds from the Caribbean Development Corporation have enabled the expansion of the industry. Cacao is becoming increasingly important as an export crop. Hershey Food Corporation of the United States has established a commercial plantation in the Cayo District and the crop is being adopted by many farmers, particularly in the Cayo and Toledo Districts. Mangoes are also grown commercially, but production fluctuates, mainly due to climatic conditions. A dairy plant has been constructed at San Ignacio in the Cayo District under the Belize Livestock Development Project with USAID cooperation. The plant has a capacity of processing 400 gallons of milk per day. It began operations in July, 1986. Agriculture, Forestry and Fisheries [See Leopard: Courtesy of the Embassy of Belize, Washington DC.] [See Pecory: Courtesy of the Embassy of Belize, Washington DC.] Belize has a viable fishing industry. During 1988, Bz. $16.2 million of fish products were exported. There are laws to protect the rock or spiney lobster to avoid overfishing. There is a closed season between March and July. Export markets for scale fish are mainly in the United States, Mexico and Jamaica. There are 13 registered fishing cooperatives which contribute to the success of the fishing industry in Belize. The Canadian International Development Agency and CARE are providing assistance for the training of Belizean fishermen in fish processing, marine engineering, navigation and modern fishing techniques. There has been a resurgence in forestry. Reafforestation and natural regeneration in the pine forest (mainly in the Cayo, Stann Creek and Toledo Districts), and artificial regeneration of fast-growing tropical hardwood species are in progress. Industries The main industries are sugar, citrus, fisheries and bananas. Sugar accounts for more than 50% of the country's foreign exchange earnings. Because of the uncertain future of sugar, major efforts are being made towards agricultural diversification. Industrial development is encouraged through concessions which include "tax holidays" of up to 15 years. Small enterprises include the manufacture of metal doors and windows, furniture, concrete blocks, bricks, clothing, boat building, soft drink bottling, brewing, cigarette manufacture, tyre recapping, the production of flour and animal feed, wire and paper products, an agricultural fertilizer plant, matches, plywood and other wood products, a meat packing plant, food processing operations and the manufacture of rolled steel bars for the construction industry. Duty Exemption and Other Fiscal Incentives A one-stop shop has been created in the form of the Belize Export and Investment Promotion Unit (BEIPU). BEIPU is designed to assist and counsel potential investors in an effort to realize their projects. As part of its export promotion activities BEIPU will assist existing and new companies in product and market development. Plans are presently well under-way for the development of a free trade zone which will be established by early 1990. This effort will facilitate investors with immediate access to factory shells and fiscal incentives and comparative advantages. Cooperatives and Credit Unions The cooperative movement has been tremendously successful in stimulating the success of fishing and farming. There are 179 cooperatives, including arts and crafts, bee-keeping, crop marketing, farming, fishing and transport. There are 25 active credit unions in Belize with an estimated membership of 31,500 with assets of over Bz. $40 million. The Belize Credit Union League comprises active registered credit unions. They are insured under CUNA Mutual Life Savings and Loan Protection Insurance for the protection of shares and loans of members. Tourism [See Sailing: Courtesy of the Embassy of Belize, Washington DC.] Tourism is taking on a new look. Work on a new terminal at the Phillip S. W. Goldson International Airport is nearing completion, the resurfacing of the runway and expansion of the apron was completed earlier this year. A promotional campaign has been launched aimed at the nature-loving tourist. Belize is blessed with the second largest barrier reef in the world, three of the four atolls in the Caribbean, a large network of caves on land and in the sea, a wide variety of animals-including the endangered Jaguar-500 species of birds, colourful flora and fauna. Over 600 Maya ruins, many rivers and a small easy-going and harmonious multiracial society characterizes this Caribbean country in Central America. Communications Roads Belize has four major highways, the Northern Highway connecting Belize City with Chetumal on the Mexican Border, the Western Highway connecting Belize City with Belmopan and continuing to the border with Guatemala, the Southern Highway linking the Stann Creek and Toledo Districts and the Hummingbird Highway. All principal towns and villages are linked by roads to Belmopan and Belize City. Regular bus services operate to and from all main towns. Inland Waterways Several rivers and lagoons are navigable by shallow draught vessels. The Belize River is used for logging. Air The main airport, Phillip S.W. Goldson International Airport, is situated 10 miles from Belize City, and is owned and operated by the Government. The runway, at present 7,100 feet long, can accommodate large, wide boded jet aircrafts. Work on a new terminal is nearing completion. Regular international services are maintained by six airlines to and from the United States of America, Central America and Mexico. There are numerous government owned or privately licensed airfields suitable for light and twin engined aircraft. Domestic air services provide connections to all main towns and three of the main offshore islands. A modern weather radar system, part of the World Meteorological Service, gives early warning of approaching hurricanes. The Belize Weather Bureau is now equipped with satellite communication facilities to assist in weather forecasting. Sea Courtesy of the Embassy of Belize, Washington DC. The main port is Belize City, now equipped with a modern deep-water port able to handle containerised shipping. Nine major shipping lines move cargo to and from Belize to Central and North America, Europe and Japan. The second largest port, Commerce Bight just south of Dangriga, has been improved to accommodate the medium sized vessels required to handle increased exports of bananas and citrus products. Coastal services are operated between towns and villages on the mainland to some of the offshore islands, and to Puerto Barrios in Guatemala. Telecommunications The Belize Telecommunications Limited (BTL) owns the automatic telephone service which covers the entire country. BTL operates a regional service to Mexico, Guatemala and Central and South America, as well as all other external services. A recent expansion programme has doubled the capacity of the telephone system. A satellite earth station in Belmopan provides high quality telecommunications with the outside world. The Office of Telecommunications acts on behalf of the Government in monitoring and regulating all telecommunication services within Belize, including the assignment of frequencies. Social Services Health Belize is relatively free of endemic diseases. Malaria, like in all other Central American countries, continues to be a problem requiring constant surveillance. There are seven government hospitals, one in Belmopan, one in Belize City, and one in each of the other five districts. A new hospital is to be built in Belize City by Government. The Government maintains an infirmary for the care of geriatric and chronically ill patients. Maternal and child welfare services are available countrywide. Medical services in rural areas are provided by rural health care centres and mobile clinics operate in remote areas. Local training for nurses and midwives is provided at the Belize School of Nursing. Medical students usually attend the University of the West Indies, whose medical faculty is in Jamaica. Education The Belize literacy rate is over 90 per cent, one of the highest in this area. Education is compulsory for children aged between 6 and 14. Primary education is free. In 1988 there were 40,287 pupils enrolled in 226 primary schools, 7,376 in 27 secondary schools and 1,170 in 8 post-secondary institutions. Most schools are run by the churches, some by Government. The Government maintains one special school for mentally handicapped children and another for children with physical disabilities. Specialized training is available at other institutions. The Belize Technical College offers craft and technical courses, the Belize Teachers College runs a two-year diploma course leading to trained teachers status. The Belize Vocational Training Centre in Belize City provides courses for primary school leavers, while the Belize Youth Development Centre and the Belize College of Agriculture offer training for those interested in entering the field of agro-industry. Advanced training is provided to Belizeans in the professional and technical fields at Belize's first university, the University College of Belize, which opened in 1986. The University of the West Indies maintains an Extra-mural Department in Belize City. This institution's work includes organising adult education classes and lectures. In addition, it offers courses in social anthropology, constitutional law, and conversational Spanish and Garifuna. The Extra-mural Department encourages creative arts and sponsors an annual festival of dance, music and drama. There is a well-equipped library service. It has its headquarters in the Baron Bliss Institute in Belize City and 74 service points scattered throughout the country. Remote areas are serviced by a mobile library. The Bliss Institute is maintained and operated by Government in order to encourage cultural activities. Broadcasting and the Press The Belize Broadcasting Network (B.B.N.), the national broadcasting service, is presently operated by Government. It comprises two radio stations, namely Belize Radio One and Friends FM, and a small video production unit known as B.B.N. Teleproductions. Both radio stations are semi-commercial, and broadcasts are in English and Spanish. The new Government promised in its Manifesto - BELIZEANS FIRST - that "the Belize Broadcasting Network will be removed from direct government control and be replaced by a Statutory Body along the lines of the British Broadcasting Corporation (B.B.C.)." Another manifesto promise states that, "Licenses for private radio stations will be granted on merit." There are several low-powered TV stations covering most of the country. These stations use TVRO dishes to intercept satellite-relayed TV programming, mostly from the U.S. They then re-transit these signals to their viewers. Some stations are strictly commercial, others solicit contributions to help pay their operating expenses. Some transmit scrambled signals on the air or through cable for which service one must pay. Locally originated TV programmes are produced on a regular basis by B.B.N. Teleproductions. There are several newspapers and periodicals published in Belize. Among the leading newspapers, all weeklies are: The Amandala, The Belize Times, The People's Pulse and The Reporter. The Government Information Service publishes a monthly magazine BELIZE TODAY, which is free. [See Table 2.: National Symbols] [See Table 3.: Useful Figures (million Bz. $)]