Saint Vincent and the Grenadines

SAINT VINCENT AND the Grenadines is a Commonwealth nation within the Lesser Antilles chain of the eastern Caribbean Sea. The northern part of the Grenadines chain, including Bequia, Mustique, and Union Island, is administered as part of Saint Vincent and the Grenadines while the southern part is administered by Grenada. Saint Vincent is dominant but has a territory of only 134 square miles and, like all the islands in the state, is vulnerable to external shocks such as hurricanes and faces the problems of few resources and lack of economic diversity.

Saint Vincent is likely to have been visited and named by Christopher Columbus, but its Caribbean population was not greatly disturbed. A shipwrecked slave ship led to Africans reaching the island in 1673, and they integrated with the indigenous population. Subsequent attempts to establish colonies were mostly unsuccessful, but eventually a struggle between the French and the British during the Seven Years’ War led to the islands changing hands several times. A French-inspired rebellion of Caribbeans led to the British exiling most of them to the Bay Islands, and strengthening their control over the remaining black slaves involved in the sugar industry. The emancipation of the slaves in 1834 led to a temporary labor market shortage that was filled with the importation of settlers from east India and Portugal. Hurricanes and a volcanic eruption in 1902, together with declining sugar prices, led to economic problems that have never been fully overcome. Saint Vincent and the Grenadines achieved independence from Britain and became a member of the Commonwealth in 1979, having been autonomous since 1969.

The total population of Saint Vincent and the Grenadines is just over 109,000 and, with an average life expectancy of 72.9 years and an annual per capita income of $2,820; the overall standard of living is moderate. However, the legacy of slavery and colonization means that the state is almost entirely dependent on the export of agricultural commodities. The prevalence of agriculture means that many people live in rural areas where poverty is more likely and access to health and education services much less likely. In 1996 (most recent figures), 20 percent of children under the age of 5 suffered from malnutrition.

Additional economic activities include a small-scale offshore banking sector that does not spread benefits very far and so allegations have been made of connections with the illegal narcotics trade as a transshipment point. Bananas have surpassed sugar as the principal agricultural export in recent decades. Production peaked in 1990 at 90,000 tons but has since more than halved as a result of institutional changes in the principal market of the European Union (EU) and increased competition from Latin America. Preferential EU export schemes were due to expire at the end of 2005 and this leads to further uncertainty for future income.

Human Development Index Rank: 87

Human Poverty Index Rank: Not included.