About the CBI

October 2005
Background Note: Saint Lucia

The flag of St. Lucia is blue, with a gold isosceles triangle below a black
arrowhead; the upper edges of the arrowhead have a white border.

PROFILE

OFFICIAL NAME:
Saint Lucia

Geography
Area: 619 sq. km. (238 sq. mi.).
Cities: Capital--Castries (pop. est. 67,000); Micoud, Gros-Islet; Vieux Fort;
Soufriere.
Terrain: Mountainous.
Climate: Tropical.

People
Nationality: Noun and adjective--St. Lucian(s).
Population (2004 est.): 162,010.
Annual growth rate (2004 est.): 0.8%.
Ethnic groups: African descent 90%, mixed 6%, East Indian 3%, European 0.8%.
Religions: Roman Catholic 90%, Church of England 3%, various Protestant
denominations.
Languages: English (official); a French patois is common throughout the
country.
Education: Literacy--85%. Years compulsory--ages 5-15. Attendance--more than
80% urban, 75% rural.
Health (2002): Life expectancy--77 years female; 72 years male. Infant
mortality rate--14.2/1,000.
Work force (2003): Agriculture--16%. Manufacturing--7%. Hotels and
restaurants--13%.
Unemployment (2004): 21%.

Government
Type: Westminster-style parliamentary democracy.
Independence: February 22, 1979.
Constitution: 1979.
Branches: Executive--governor general (representing Queen Elizabeth II, head
of state), prime minister (head of government), cabinet.
Legislative--bicameral parliament.
Judicial--district courts, Eastern Caribbean Supreme Court (High Court and
Court of Appeals), final appeal to privy council in London. Administrative
subdivisions: 11 parishes.
Political parties: St. Lucia Labor Party (SLP, ruling); in power since 1997,
United Workers' Party (UWP, official opposition).
Suffrage: Universal at 18.

Economy
GDP (2004): $753 million.
Annual growth rate (2004): 3.6%.
Per capita GDP (2004 estimate): $4,600.
Natural resources: Forests, beaches, minerals (pumice), mineral springs.
Agriculture (2004): 4.5% of GDP. Products--bananas, cocoa, coconut, citrus
fruits, and livestock.
Manufacturing (2004): 5.4% of GDP. Types--garments, electronic components,
beverages, corrugated boxes.
Tourism (2004): 48% of GDP (direct and indirect impact).
Trade: Exports (2004)--$81 million: bananas, cocoa, vegetables, fruits, other
agricultural products, oils and fats, manufactured goods. Major export
markets (2004)--U.K. (27%), U.S. (13%), Trinidad and Tobago (12%), and
Barbados (8%). Imports (2004)--$383 million: food, fuel, manufactured goods,
machinery, and transport equipment. Major suppliers--U.S. (40%), Trinidad and
Tobago (16%), U.K. (9%), and Japan (4%).

PEOPLE
St. Lucia's population is predominantly of African and mixed African-European
descent, with small East Indian and European minorities. English is the
official language, although many St. Lucians speak a French patois. Ninety
percent of the population is Roman Catholic, a further reflection of early
French influence on the island. The population of just over 162,000 is evenly
divided between urban and rural areas, although the capital, Castries,
contains more than one-third of the population. Despite a high emigration
rate, the population is growing rapidly, about 5.4% per year.

HISTORY
St. Lucia's first known inhabitants were Arawaks, believed to have come from
northern South America in 200-400 A.D. Numerous archaeological sites on the
island have produced specimens of the Arawaks' well-developed pottery. Caribs
gradually replaced Arawaks during the period from 800-1000 A.D.

Europeans first landed on the island in either 1492 or 1502 during Spain's
early exploration of the Caribbean. The Dutch, English, and French all tried
to establish trading outposts on St. Lucia in the 17th century but faced
opposition from hostile Caribs.

The English, with their headquarters in Barbados, and the French, centered on
Martinique, found St. Lucia attractive after the sugar industry developed in
1765. Britain eventually triumphed, with France permanently ceding St. Lucia
in 1815. In 1838, St. Lucia was incorporated into the British Windward
Islands administration, headquartered in Barbados. This lasted until 1885,
when the capital was moved to Grenada.

Increasing self-government has marked St. Lucia's 20th-century history. A
1924 constitution gave the island its first form of representative
government, with a minority of elected members in the previously
all-nominated legislative council. Universal adult suffrage was introduced in
1951, and elected members became a majority of the council. Ministerial
government was introduced in 1956, and in 1958 St. Lucia joined the
short-lived West Indies Federation, a semi-autonomous dependency of the
United Kingdom. When the federation collapsed in 1962, following Jamaica's
withdrawal, a smaller federation was briefly attempted. After the second
failure, the United Kingdom and the six windward and leeward
islands--Grenada, St. Vincent, Dominica, Antigua, St. Kitts-Nevis-Anguilla,
and St. Lucia--developed a novel form of cooperation called associated
statehood.

As an associated state of the United Kingdom from 1967 to 1979, St. Lucia had
full responsibility for internal self-government but left its external
affairs and defense responsibilities to the United Kingdom. This interim
arrangement ended on February 22, 1979, when St. Lucia achieved full
independence. St. Lucia continues to recognize Queen Elizabeth II as titular
head of state and is an active member of the Commonwealth. The island
continues to cooperate with its neighbors through the Caribbean community and
common market (CARICOM), the East Caribbean Common Market (ECCM), and the
Organization of Eastern Caribbean States (OECS).

GOVERNMENT AND POLITICAL CONDITIONS
St. Lucia is a parliamentary democracy modeled on the Westminster system. The
head of state is Queen Elizabeth II, represented by a Governor General,
appointed by the Queen as her representative. The Governor General exercises
ceremonial functions, but residual powers, under the constitution, can be
used at the governor general's discretion. The actual power in St. Lucia lies
with the prime minister and the cabinet, usually representing the majority
party in parliament.

The bicameral parliament consists of a 17-member House of Assembly whose
members are elected by universal adult suffrage for 5-year terms and an
11-member senate appointed by the governor general. The parliament may be
dissolved by the governor general at any point during its 5-year term, either
at the request of the prime minister--in order to take the nation into early
elections--or at the governor general's own discretion, if the house passes a
vote of no-confidence in the government.

St. Lucia has an independent judiciary composed of district courts and a high
court. Cases may be appealed to the Eastern Caribbean Court of Appeals and,
ultimately, to the Judicial Committee of the Privy Council in London. The
island is divided into 10 administrative divisions, including the capital,
Castries. Popularly elected local governments in most towns and villages
perform such tasks as regulation of sanitation and markets and maintenance of
cemeteries and secondary roads. St. Lucia has no army but maintains a coast
guard and a paramilitary Special Service Unit within its police force.

Politics in St. Lucia was once dominated by the United Workers Party (UWP),
which, until 1997 had governed the country for all but three years since
independence. John Compton was premier of St. Lucia from 1964 until
independence in February 1979 and remained prime minister until elections
later that year.

The St. Lucia Labor Party (SLP) won the first post-independence elections in
July 1979, taking 12 of 17 seats in parliament. A period of turbulence
ensued, in which squabbling within the party led to several changes of prime
minister. Pressure from the private sector and the unions forced the
government to resign in 1982. New elections were then called and were won
resoundingly by Compton's UWP, which took 14 of 17 seats.

The UWP was elected for a second time in April 16, 1987, but with only nine
of 17 seats. Seeking to increase his slim margin, Prime Minister Compton
suspended parliament and called new elections on April 30. This unprecedented
snap election, however, gave Compton the same results as before--the UWP
retained nine seats and the SLP eight. In April 1992, Prime Minister
Compton's government again defeated the SLP. In this election, the government
increased its majority in parliament to 11 seats.

In 1996, Compton announced his resignation as prime minister in favor of his
chosen successor Dr. Vaughan Lewis, former director-general of the
Organization of Eastern Caribbean States (OECS). Dr. Lewis became prime
minister and minister of finance, planning and development on April 2, 1996.
The SLP also had a change of leadership with former CARICOM official Dr.
Kenny Anthony succeeding businessman Julian Hunte.

In elections held May 23, 1997, the St. Lucia Labor Party won all but one of
the 17 seats in parliament, and Dr. Kenny Anthony became Prime Minister and
Minister of Finance, Planning and Development on May 24, 1997.

In elections of December 3, 2001 the St. Lucia Labor Party won 14 of the 17
available seats. The leader of the UWP, Dr. Morella Joseph, failed to win a
seat. Arsene James serves as leader of the parliamentary opposition, while
former Prime Minister Sir John Compton is leader of the opposition UWP.

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Dr. Pearlette Louisy
Prime Minister and Minister of Finance, International Financial Services,
Economic Affairs and Information--Dr. Kenny Anthony
Minister of External Affairs, International Trade and Civil Aviation--A.G.
Petrus Compton
Ambassador to the UN--Julian Hunte
Ambassador to the U.S. and the OAS--Sonia M. Johnny
Consul General New York--Herbert Emmmanuel

St. Lucia maintains an embassy at 3216 New Mexico Ave., NW, Washington, DC
20016 (tel. 202-364-6792).

ECONOMY
St. Lucia's economy depends primarily on revenue from tourism and banana
production, with some contribution from small-scale manufacturing. All
sectors of the economy have benefited from infrastructure improvements in
roads, communications, water supply, sewerage, and port facilities. These
improvements, combined with a stable political environment and educated work
force, have attracted foreign investors in several different sectors.
Although St, Lucia enjoys a steady flow of investment in tourism, the single
most significant foreign investment is Hess Oil's large petroleum storage and
transshipment terminal. In addition, the Caribbean Development Bank funded an
extensive airport expansion project.

Although banana revenues have helped fund the country's development since the
1960s, the industry is now in a terminal decline, due to competition from
lower-cost Latin American banana producers and soon-to-be reduced European
Union trade preferences. The country is encouraging farmers to plant crops
such as cocoa, mangos, and avocados to diversify its agricultural production
and provide jobs for displaced banana workers.

Tourism was booming in 2004, firmly out of the post-September 11, 2001
recession. St. Lucia attracted nearly 800,000 cruise ship and stay-over
visitors (those staying overnight on the island). Several investors have
planned new tourism projects for the island, including a large hotel and
resort in the southern part of the island.

St. Lucia is a member of the Eastern Caribbean Currency Union (ECCU). The
Eastern Caribbean Central Bank (ECCB) issues a common currency (Eastern
Caribbean Dollar--EC$) for all members of the ECCU. The primary goal of the
ECCB's monetary policy is to maintain the longstanding currency peg of EC
$2.7 to U.S. $1. The Central Bank also manages monetary policy and regulates
and supervises commercial banking activities in its member countries.

St. Lucia is a beneficiary of the U.S. Caribbean Basin Initiative and is a
member of the Caribbean Community and Common Market (CARICOM). The country
hosts the headquarters of the Organization of Eastern Caribbean States
(OECS).

FOREIGN RELATIONS
Historically, the major thrust of foreign affairs for St. Lucia has been
economic development. The government is seeking balanced international
relations with emphasis on mutual economic cooperation and trade and
investment. It seeks to conduct its foreign policy chiefly through its
membership in the OECS. St. Lucia participated in the 1983 Grenada mission,
sending members of its Special Services Unit into active duty. St. Lucia is a
member of the Commonwealth, the Organization of American States, and the
United Nations. It seeks pragmatic solutions to major international issues
and maintains friendly relations with the major powers active in the
Caribbean, including the United States, the United Kingdom, Canada, and
France. St. Lucia has been active in eastern Caribbean regional affairs
through the OECS and CARICOM.

As a member of CARICOM, St. Lucia strongly backed efforts by the United
States to implement UN Security Council Resolution 940, designed to restore
democracy to Haiti. The country agreed to contribute personnel to the
multinational force, which restored the democratically elected government of
Haiti in October 1994.

St. Lucia participated, along with 14 other Caribbean nations, in a summit
with President Clinton in Bridgetown, Barbados in May 1997. The summit, which
was the first-ever meeting in the region between U.S. and Caribbean heads of
government, strengthened the basis for regional cooperation on justice and
counternarcotics, finance, development, and trade issues.

There are currently four diplomatic missions in St. Lucia--People's Republic
of China, France, Venezuela, and an office of the Barbados-based British High
Commission. Some countries with which St. Lucia has diplomatic relations have
representatives resident in Barbados, Jamaica, Trinidad, and Guyana.

U.S.-ST. LUCIAN RELATIONS
The United States and St. Lucia have a cooperative relationship. The United
States supports the St. Lucian Government's efforts to expand its economic
base and improve the lives of its citizens.

The administration of Prime Minster Kenny Anthony made a significant effort
to strengthen ties with the U.S. during 2003. Former Foreign Minster Julian
Hunte made improved U.S. relations a signal objective for the government and
used his perch as President of the UN General Assembly to help promote this
aim.

The government has cooperated with the U.S. on security concerns and managing
the Haiti situation. U.S. assistance is primarily channeled through
multilateral agencies such as the World Bank and the USAID satellite office
in Bridgetown, Barbados. The Peace Corps, whose Eastern Caribbean regional
headquarters is in St. Lucia, has 15-20 volunteers in St. Lucia, working
primarily in education, agriculture, and health. U.S. security assistance
programs provide limited training to the paramilitary Special Services Unit
and the coast guard. In addition, St. Lucia receives U.S. counternarcotics
assistance and benefits from U.S. military exercise-related and humanitarian
civic action construction projects.

St. Lucia and the United States share interest in combating international
crime, the flow of illegal drugs and narcotics trafficking. Because of St.
Lucia's geographical location, it is an appealing transit point for
traffickers. In response to this threat, the Government of St. Lucia has
concluded various bilateral treaties with the United States, including a
Maritime Law Enforcement Agreement (subsequently amended to include
overflight and order-to-land provisions), a Mutual Legal Assistance Treaty,
and an Extradition Treaty.

More Americans visit St. Lucia than any other national group. In 2004,
tourist visitors totaled nearly 800,000, mainly from the U.S., U.K., and
CARICOM. Cruise ship arrivals in 2004 were up 22.4% over 2003, and the number
of stay-over visitors also increased by 7.8% in the same period.

Principal U.S. Embassy Officials
Ambassador--Mary E. Kramer
Deputy Chief of Mission--Mary Ellen T. Gilroy
Political/Economic Counselor--Sheila Peters
Consul General--Clyde Howard Jr.
Regional Labor Attaché--Alfred Anzaldua
Economic-Commercial Affairs--John Ashworth
Public Affairs Officer--Julie O'Reagan
Peace Corps Director--Terry Armstrong

The United States maintains no diplomatic presence in St. Lucia. The
Ambassador and Embassy officers are resident in Barbados and frequently
travel to St. Lucia.

The U.S. Embassy in Barbados is located in the Canadian Imperial Bank of
Commerce Building, Broad Street, Bridgetown (tel: 246-436-4950; fax:
246-429-5246).

Other Contact Information
U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th and Constitution, NW
Washington, DC 2230
Tel: 1-800-USA-TRADE

Caribbean/Latin American Action
1818 N Street, NW, Suite 310
Washington, DC 20036
Tel: (202) 466-7464
Fax: (202) 822-0075