About the CBI

October 2005
Background Note: Grenada

Flag of Grenada is a rectangle divided diagonally into yellow triangles (top
and bottom) and green triangles (hoist side and outer side), with a red
border around the flag; there are seven yellow, five-pointed stars with three
centered in the top red border, three centered in the bottom red border, and
one on a red disk superimposed at the center of the flag; there is also a
symbolic nutmeg pod on the hoist-side triangle (Grenada is the world's
second-largest producer of nutmeg, after Indonesia); the seven stars
represent the seven administrative divisions. 2004.

PROFILE

OFFICIAL NAME:
Grenada

Geography
Area: 344 sq. km. (133 sq. mi.); about twice the size of Washington, DC.
Cities: Capital--St. George's (est. pop. 33,734).
Terrain: Three volcanic islands (Grenada and the smaller islands of Carriacou
and Petit Martinique) with mountainous rainforest.
Climate: Tropical.

People
Nationality: Noun and adjective--Grenadian(s).
Population (2004 est.): 104,000.
Annual growth rate: 2003: +5.8%; 2004: - 3.0%; 2005 est.: +0.9%.
Ethnic groups: African descent (82%), some South Asians (East Indians) and
Europeans, trace Arawak/Carib Indian.
Religions: Roman Catholic, various Protestant denominations, Islam,
Rastafarianism.
Languages: English (official).
Education: Years compulsory--10 grades or age 16. Literacy--95% of adult
population.
Health: Infant mortality rate--16.2/1,000. Life expectancy--72 yrs.
Work force: Leading employment sectors are services/tourism, government,
industry, agriculture/fishing. Unemployment is likely over 10%.

Government
Type: Constitutional monarchy with Westminster-style Parliament.
Independence: February 7, 1974.
Constitution: December 19, 1975.
Branches: Executive--governor general (appointed by and represents British
monarch, head of state), prime minister (head of government, leader of
majority party), and Cabinet direct a career civil service in the
administration of the government. Legislative--Parliament composed of 15
directly elected members in the House of Representatives and a 13-seat Senate
appointed by the governor general on the advice of the majority party and
opposition. Judicial--magistrates' courts, Eastern Caribbean Supreme Court
(high court and court of appeals), final appeal to Privy Council in London.
Subdivisions: Six parishes and two dependencies (Carriacou and Petit
Martinique).
Major political parties: New National Party (NNP), incumbent; National
Democratic Congress (NDC); Grenada United Labor Party (GULP).
Suffrage: Universal at 18.

Economy (U.S. $)
GDP (2005 est.): $454.3 million.
GDP growth rate (2004 est.): 4.01%.
Per capita GDP (2004): $4,200.
Agriculture: Products--nutmeg, cocoa, bananas, other fruits, vegetables.
Industry: Types--tourism services, construction, education, manufacturing.
Trade (2005 proj.): Merchandise exports (f.o.b.)--$30.4 million: nutmeg,
mace, cocoa, bananas, other fruits, vegetables, fish. Major markets--EU,
U.S., OECS, CARICOM countries. Merchandise imports--$276 million: food,
machinery, transport, manufactured goods, fuel. Major suppliers--U.S.
(36.6%), CARICOM countries, U.K., Japan. Services exports (2005 proj.)--$37.7
million: tourism, education.
Transfers: $108.2 million (incl. remittances).
Total external debt outstanding (2004): $415 million.
Exchange rate: U.S. $1=EC $2.67.

PEOPLE
Most of Grenada's population is of African descent; there is some trace of
the early Arawak and Carib Indians. A few East Indians and a small community
of the descendants of early European settlers reside in Grenada. About 50% of
Grenada's population is under the age of 30. English is the official
language; only a few people still speak French patois. A more significant
reminder of Grenada's historical link with France is the strength of the
Roman Catholic Church, to which about 60% of Grenadians belong.

HISTORY
Before the arrival of Europeans, Carib Indians who had driven the more
peaceful Arawaks from the island inhabited Grenada. Columbus landed on
Grenada in 1498 during his third voyage to the new world. He named the island
"Concepcion." The origin of the name "Grenada" is obscure, but it is likely
that Spanish sailors renamed the island for the city of Granada. By the
beginning of the 18th century, the name "Grenada," or "la Grenade" in French,
was in common use.

Partly because of the Caribs, Grenada remained un-colonized for more than 100
years after its discovery; early English efforts to settle the island were
unsuccessful. In 1650, a French company founded by Cardinal Richelieu
purchased Grenada from the English and established a small settlement. After
several skirmishes with the Caribs, the French brought in reinforcements from
Martinique and defeated the Caribs.

The island remained under French control until its capture by the British in
1762, during the Seven Years' War. The Treaty of Paris formally ceded Grenada
to Great Britain in 1763. Although the French regained control in 1779, the
Treaty of Versailles restored the island to Britain in 1783. Britain overcame
a pro-French revolt in 1795, and Grenada remained British for the remainder
of the colonial period.

During the 18th century, Grenada's economy underwent an important transition.
Like much of the rest of the West Indies it was originally settled to
cultivate sugar, which was grown on estates using slave labor. But natural
disasters paved the way for the introduction of other crops. In 1782, Sir
Joseph Banks, the botanical adviser to King George III, introduced nutmeg to
Grenada. The island's soil was ideal for growing the spice, and because
Grenada was a closer source of spices for Europe than the Dutch East Indies
the island assumed a new importance to European traders.

The collapse of the sugar estates and the introduction of nutmeg and cocoa
encouraged the development of smaller landholdings, and the island developed
a land-owning yeoman farmer class. Slavery was outlawed in 1834. In 1833,
Grenada became part of the British Windward Islands Administration. The
governor of the Windward Islands administered the island for the rest of the
colonial period. In 1958, the Windward Islands Administration was dissolved,
and Grenada joined the Federation of the West Indies. After that federation
collapsed in 1962, the British Government tried to form a small federation
out of its remaining dependencies in the Eastern Caribbean.

Following the failure of this second effort, the British and the islands
developed the concept of associated statehood. Under the Associated Statehood
Act of 1967, Grenada was granted full autonomy over its internal affairs in
March 1967. Full independence was granted on February 7, 1974.

After obtaining independence, Grenada adopted a modified Westminster
parliamentary system based on the British model, with a governor general
appointed by and representing the British monarch (head of state) and a prime
minister who is both leader of the majority party and the head of government.
Sir Eric Gairy was Grenada's first Prime Minister.

On March 13, 1979, the New Joint Endeavor for Welfare, Education, and
Liberation Movement (New Jewel Movement--NJM), ousted Gairy in a coup and
established a People's Revolutionary Government (PRG) headed by Maurice
Bishop, who became Prime Minister. His Marxist-Leninist government
established close ties with Cuba, the Soviet Union, and other communist bloc
countries.

In October 1983, a power struggle within the government resulted in the
arrest and execution of Bishop and several members of his Cabinet and the
killing of dozens of his supporters by elements of the People's Revolutionary
Army (PRA).

A U.S.-Caribbean force landed on Grenada on October 25, 1983 in response to
an appeal from the Governor General and to a request for assistance from the
Organization of Eastern Caribbean States. U.S. citizens were evacuated, and
order was restored.

An advisory council named by the Governor General administered the country
until general elections were held in December 1984. The New National Party
(NNP) led by Herbert Blaize won 14 out of 15 seats in free and fair elections
and formed a democratic government. Grenada's constitution had been suspended
in 1979 by the PRG, but it was restored after the 1984 elections.

The NNP continued in power until 1989 but with a reduced majority. Five NNP
parliamentary members, including two Cabinet ministers, left the party in
1986-87 and formed the National Democratic Congress (NDC), which became the
official opposition.

In August 1989, Prime Minister Blaize broke with the NNP to form another new
party, The National Party (TNP), from the ranks of the NNP. This split in the
NNP resulted in the formation of a minority government until constitutionally
scheduled elections in March 1990. Prime Minister Blaize died in December
1989 and was succeeded as Prime Minister by Ben Jones until after the
elections.

The NDC emerged from the 1990 elections as the strongest party, winning seven
of the 15 available seats. Nicholas Brathwaite added two TNP members and one
member of the Grenada United Labor Party (GULP) to create a 10-seat majority
coalition. The Governor General appointed him to be Prime Minister.

In parliamentary elections on June 20, 1995, the NNP won eight seats and
formed a government headed by Keith Mitchell. The NNP maintained and affirmed
its hold on power when it took all 15 parliamentary seats in the January 1999
elections.

General elections were held in November 2003; the NNP won 8 of the 15 seats,
holding on to power with a much-reduced majority. The National Democratic
Congress (NDC) led by Tillman Thomas won 7 seats and is now the official
opposition.

GOVERNMENT AND POLITICAL CONDITIONS
Grenada is governed under a parliamentary system based on the British model;
it has a governor general, a prime minister and a Cabinet, and a bicameral
Parliament with an elected House of Representatives and an appointed Senate.

Citizens enjoy a wide range of civil and political rights guaranteed by the
constitution. Grenada's constitution provides citizens with the right to
change their government peacefully. Citizens exercise this right through
periodic free and fair elections held on the basis of universal suffrage.

The political parties in Grenada are the New National Party (NNP), which
remains moderate; the National Democratic Congress (NDC), which is now made
up of some members of the NJM and the original NDC; the People's Labor
Movement (PLM), which is a combination of members of the original NDC and the
Maurice Bishop Patriotic Movement (MBPM); and the Grenada United Labor Party
(GULP). TNP and MBPM no longer exist.

Reconstruction from the devastation wreaked by Hurricane Ivan in September
2004 and Hurricane Emily in July 2005 is a major political issue for the
present government.

The 800 members of the Royal Grenada Police Force (RGPF), which includes an
80-member paramilitary special services unit (SSU) and a 30-member coast
guard, maintain security in Grenada. The U.S. Army and the U.S. Coast Guard
provide periodic training and material support for the SSU and the coast
guard. The Departments of State and Treasury provide support to the Financial
Investigative Unit (FIU).

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Sir Daniel C. Williams, G.C.M.G., Q.C.
Prime Minister--Dr. Keith C. Mitchell
Minister of Foreign Affairs and International Trade--Elvin Nimrod
Ambassador to the United States and OAS--Denis G. Antoine
Ambassador to the United Nations--Ruth Rouse

Grenada maintains an embassy in the United States at 1701 New Hampshire
Avenue, NW, Washington, DC 20009 (tel: 202-265-2561).

ECONOMY
The economy of Grenada, based primarily upon services (tourism and education)
and agricultural production (nutmeg and cocoa), was brought to a near
standstill by Hurricane Ivan on September 7, 2004. Thirty-seven people were
killed by the hurricane, and approximately 8,000-10,000 left homeless.
Hurricane Ivan damaged or destroyed 90% of the buildings on the island,
including some tourist facilities. Overall damage totaled as much as 2.5
times annual GDP. Reconstruction has proceeded quickly, but much work
remains. The United States has been the leading donor since the hurricane,
with an emergency program of about $45 million aimed at repairing and
rebuilding schools, health clinics, community centers, and housing; training
several thousand Grenadians in construction and other fields; providing
grants to private businesses to speed their recovery; and providing a variety
of aid to help Grenada diversify its agriculture and tourism sectors.

Despite initial high unemployment in the tourist and other sectors, urban
Grenadians have benefited post-hurricane from job opportunities in the
surging construction sector. Agricultural workers have not fared as well.
Hurricane Ivan destroyed or significantly damaged a large percentage of
Grenada's tree crops, and Hurricane Emily further damaged the sector.
Recovery will take years. At the opening of the 2005-2006 tourist season in
fall 2005, most of Grenada's tourism sector is repaired and in operation. St.
George's University, a large American medical and veterinary school with over
2,000 students, is in full operation.

Grenada is a member of the Eastern Caribbean Currency Union (ECCU). The
Eastern Caribbean Central Bank (ECCB) issues a common currency for all
members of the ECCU. The ECCB also manages monetary policy, and regulates and
supervises commercial banking activities in its member countries.

Grenada is also a member of the Caribbean Community and Common Market
(CARICOM). Most goods can be imported into Grenada under open general
license, but some goods require specific licenses. Goods that are produced in
the Eastern Caribbean receive additional protection; in May 1991, the CARICOM
common external tariff (CET) was implemented. The CET aims to facilitate
economic growth through intra-regional trade by offering duty-free trade
among CARICOM members and duties on goods imported from outside CARICOM.

FOREIGN RELATIONS
The United States, China, Cuba and Venezuela have embassies in Grenada. The
United Kingdom is represented by a resident commissioner (as opposed to the
governor general, who represents the British monarch). Grenada has been
recognized by most members of the United Nations and maintains diplomatic
missions in the United States, Canada, China, Cuba, Belgium, United Kingdom
and Venezuela.

Grenada is a member of the Caribbean Development Bank, CARICOM, the
Organization of Eastern Caribbean States (OECS), the Commonwealth of Nations,
and the World Trade Organization (WTO). It joined the United Nations in 1974,
and then the World Bank, International Monetary Fund, and Organization of
American States (OAS) in 1975. Grenada also is a member of the Eastern
Caribbean's Regional Security System (RSS).

U.S.-GRENADIAN RELATIONS
The U.S. Government established an Embassy in Grenada in November 1983. The
U.S. Ambassador to Grenada is resident in Bridgetown, Barbados. The Embassy
in Grenada is staffed by a Charge d'Affaires who reports to the Ambassador in
Bridgetown.

The U.S. Agency for International Development (USAID) has played a major role
in Grenada's development. In addition to the $45 million emergency aid for
reconstruction from Hurricane Ivan, USAID provided more than $120 million in
economic assistance from 1984 to 1993. About 25 Peace Corps volunteers in
Grenada teach special education, remedial reading, and vocational training
and assist with HIV/AIDS work. Grenada receives counter-narcotics assistance
from the U.S. and benefits from U.S. military exercise-related construction
and humanitarian civic action projects.

Grenada and the U.S. cooperate closely in fighting narcotics smuggling and
other forms of transnational crime. In 1995, the U.S. and Grenada signed a
maritime law enforcement treaty. In 1996, they signed a mutual legal
assistance treaty and an extradition treaty as well as an over-flight/
order-to-land amendment to the maritime law enforcement treaty. Some U.S.
military training is given to Grenadian security and defense forces.

Grenada continues to be a popular destination for Americans. Of the 147,286
stayover visitors in 2003, 35,191 were U.S. citizens. It is estimated that
some 2,600 Americans reside in the country, plus the 2,000 U.S. medical
students who study at the St. George's University School of Medicine. (Those
students are not counted as residents for statistical purposes.)

Principal U.S. Embassy Officials (all officials except the Charge are located
at the U.S. Embassy in Bridgetown, Barbados)
Ambassador--Mary E. Kramer
Deputy Chief of Mission--Meg Gilroy
Charge d'Affaires--Peter Secor
Political/Economic Counselor--Sheila Peters
Consul General--Clyde Howard Jr.
Public Affairs Officer--Julie O'Reagan
Regional Labor and Environment Attaché--Alfred Anzaldua
Peace Corps Director--Terry Amstrong (resident in St. Lucia)

The U.S. Embassy in Grenada is located on the Lance-aux-Epines Main Road, St.
George's, Grenada; tel: 1-(473)-444-1173/4/5/6/7; fax: 1-(473)-444-4820,
e-mail: usemb_gd@caribsurf.com

The mailing address is P.O. Box 54, St. George's, Grenada, West Indies.

Other Contact Information
U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th and Constitution, NW
Washington, DC 20230
Tel: 1-800-USA-TRADE