Formerly British Honduras, Belize was the last Central American country to gain its independence, in 1981. It lies on the southeastern shore of the Yucatan peninsula and shares a border with Mexico along the River Hondo. Belize is Central America's least populous country, and almost half of its land area is still forested. Its swampy coastal plains are protected from flooding by the world's second-largest barrier reef.

Over 80% of Belizeans are of mixed descent involving African, Amerindian, and European strands. Along with the mestizo and Creole populations there are the Afro-Carib garifuna. Christianity is dominant, and the Roman Catholic, Anglican, and Methodist Churches run most of the schools.

Strengths

Sugar, textile manufacture, citrus fruits, bananas, shellfish, forestry, and considerable tourist potential. Sustainable public debt; fair access to concessionary foreign finance.

Weaknesses

Narrow export base dependent on preferential market access; reliance on imports of processed foods. Poor fiscal management in late 1990s.

The desire for independence dominated politics until the 1980s. The PUP, under George Price, negotiated this with the British in 1981. During the 1984–1989 UDP administration, the main concerns were to maintain a pro-US line and the fear of communism in the region. In the absence of any major ideological or policy distinctions, the UDP lost power to the PUP in 1989, winning it back in 1993; the pendulum swung back to the PUP again in 1998. Growth, job creation, "economic citizenship" for foreigners, and border tension with Guatemala are key issues.

The major concern is Guatemala's historic claim to over half of Belize. Suspended in 1986, the claim was revived in early 2000 as border tension rose.

The small Belize Defense Force took over full responsibility from the UK in 1994 for the country's defense. The UK withdrew its garrison in the same year, but maintains a jungle training school.

Hopes of finding significant oil and gas deposits in the north of the country have so far proved fruitless.

Tourist developments and logging have depleted the dense tropical forests. Mahogany is endangered so all exports and transshipments now require a certificate of origin. Global warming poses a major threat to the corals of the barrier reef.

A US$16 million IDB loan in 1998 helped improve the country's road network and its feeder roads. A terminal and runway extension have been completed at the international airport near Belize City.

The health service provided by the government includes seven hospitals, more than 30 regional health centers, and numerous mobile clinics. Water supplies and sanitation have been improved; most homes in Belmopan now have both.

Although most schools are run by the different Churches, a handful are funded by the government, particularly those catering for special needs. The University College of Belize provides for higher education.

Belize is a major transit point to the USA for cocaine, despite being decertified in 1997 for its antinarcotics efforts. Drugs-related crime is high. Armed robberies by criminal gangs based in neighboring Guatemala are also a major concern. A government ombudsman was appointed in 2000 to investigate police brutality.

The European Development Fund in 1999 granted 3.5 million Belizean dollars toward the reduction of rural poverty. Narcotics trading remains a source of wealth.

The barrier reef, good beaches, and Mayan ruins draw visitors. "Eco" attractions need conservation.

The Mayan heartland included what is now Belize. Between 1798 and 1981 it was effectively a British colony.

• 1919 Demands for more political rights by black Belizeans returning from World War I.
• 1936 New constitution.
• 1950 PUP formed. Voting age limit for women reduced from 30 to 21.
• 1954 Full adult suffrage.
• 1972 Guatemala threatens invasion. Britain sends troops.
• 1981 Full independence.
• 1998 PUP wins crushing general election victory.
• 2000 Guatemala revives claim to half of Belize.