The 'Cayman Islands' are a
British overseas territory located in the western
Caribbean Sea, comprising the islands of
Grand Cayman,
Cayman Brac, and
Little Cayman. It is a global
offshore financial services centre and one of the leading tourist
scuba diving destinations in the world.
History
Main articles: History of the Cayman Islands
The Cayman Islands were first sighted by
Christopher Columbus on
May 10,
1503 during his disastrous fourth and final voyage to the
New World. He named them ''Las Tortugas'' after the numerous
sea turtles there. The first recorded English visitor to the islands was
Sir Francis Drake, who landed there in 1586 and named them the Cayman Islands after the
Neo-Taino nations term (caiman) for crocodile (Zayas, 1914).
The first recorded permanent inhabitant of the Cayman Islands, Isaac Bodden, was born on
Grand Cayman around 1700. He was the grandson of the original settler named Bodden who was probably one of
Oliver Cromwell's soldiers at the taking of
Jamaica in 1655.
The islands, along with nearby
Jamaica, were captured, then ceded to
England in 1670 under the
Treaty of Madrid. They were governed as a single colony with Jamaica until 1962 when they became a separate
British Overseas Territory and Jamaica became an independent
commonwealth realm.
The island of Grand Cayman was hit by
Hurricane Ivan on September 11-12, 2004, which destroyed many buildings and damaged 70% of them. Power, water and communications were all disrupted for a period of time as Ivan was the worst hurricane to hit the islands in 86 years. However, Grand Cayman promptly engaged in a major rebuilding process, and within two years its
infrastructure was nearly returned to pre-Ivan levels. The Cayman Islands have the dubious honor of having experienced the most hurricane strikes in history. Due to the proximity of the islands, more hurricane and tropical systems have affected the Cayman Islands than any other region in the Atlantic basin (brushed or hit every 2.23 year. Source: Hurricanecity.com http://www.hurricanecity.com/city/caymanislands.htm). The area is expected to be hit again this hurricane season (2007). The Cayman Islands currently enjoy one of the highest standards of living in the
Caribbean region, aided by thriving
tourism and
banking industries.
Geography
Map of the Cayman Islands
The Cayman Islands are located in the western
Caribbean Sea. They are the peaks of a massive underwater ridge, known as the Cayman Trench, standing 2,400 m (8000 feet) from the sea floor, which barely exceeds the surface. The islands lie in the centre of the Caribbean south of Cuba and West of Jamaica. But even Grand Cayman, the largest of the three islands, is not visible on many maps. They are situated about 480
miles (770
km) south of
Miami, 150 miles (240 km) south of
Cuba, and 180 miles (290 km) northwest of
Jamaica.
Grand Cayman is by far the biggest, with an area of 76
square miles (197
km²). The two "
Sister Islands" of
Cayman Brac and
Little Cayman are located about 90 miles (145 km) east of Grand Cayman and have areas of 14 square miles (36 km²) and 10 square miles (25.9 km²) respectively.
All three islands were formed by large coral heads covering submerged ice age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is
The Bluff on Cayman Brac, which rises to 140
feet (42.6
m) above sea level, the highest point on the island.
Cayman avian fauna includes two endemic subspecies of Amazona parrots: ''Amazona leucocephala hesterna'', or Cayman Brac Parrot, native only to Cayman Brac, and ''Amazona leucocephala caymanensis'' or
Grand Cayman Parrot, which is native only to Grand Cayman. Another notable fauna is the endangered
Blue Iguana, which is native to Grand Cayman.
Districts
Districts of the Cayman Islands
Administratively, Grand Cayman (the largest island) is divided into five
districts:
- George Town (the present capital)
- East End
- North Side
- West Bay
- Bodden Town (the former capital)
- Cayman Brac and Little Cayman, combined, form the 6th district of the Sister Islands.
Demographics
Main articles: Demographics of the Cayman Islands
The latest population estimate of the Cayman Islands is about 45,000 as of July 2006, representing a mix of more than 100 nationalities. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race (mostly mixed African-European). Of the remaining 40%, about half are of European descent and half are of
African descent. The islands are almost exclusively
Christian, with large number of
Presbyterians and
Catholics. Caymanians enjoy one of the highest standards of living in the Caribbean. The vast majority of the population resides on Grand Cayman. Cayman Brac is the second most populated with about 1,200 residents, followed by Little Cayman with around 200 permanent residents.
[1]
The capital and major city of the Cayman Islands is
George Town, which is located on the south west coast of Grand Cayman.
Economy
Main articles: Economy of the Cayman Islands
The economy of the Cayman Islands was once centered around
turtling. However, this industry began to disappear in the twentieth century and tourism and financial services began to become the economic mainstays during the 1970s. The
United States is the Cayman Islands' largest trading partner.
With an average income of around $42,000, Caymanians enjoy the highest standard of living in the Caribbean. According to the
CIA World Factbook, the Cayman Islands GDP per capita is the 8th highest in the world.
[2] The islands print their own currency, the
Cayman Islands Dollar (KYD), which is pegged to the
U.S. dollar at a fixed rate of 1 KYD = 1.25 USD. Thus, the C.I. Dollar's rate of exchange with all other world countries is directly tied to the U.S. dollar's rate of exchange with those same countries.
The government's primary source of income is
indirect taxation. An import duty of 5% to 20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras and
baby formula. Duty on automobiles is charged on a sliding scale with the duty reaching 100% for expensive models (The Hummer). The government charges a flat licensing fee to financial institutions that operate in the islands.
Tourism
Tourism accounts for 70-75% of the annual GDP of the Cayman Islands. Of the millions of tourists that visit the islands annually, 99% visit Grand Cayman. George Town also serves as a major
cruise ship port, which brings in 4,000 to 22,000 tourists a day, five days a week, depending on the number of ships in port.
One of
Grand Cayman's (GCM) main attractions is the world-famous
Seven Mile Beach on which a number of the island's hotels and resorts are located. Seven Mile Beach is regarded by many as one of the best beaches in the world. Historical sites in GCM such as Pedro St. James Castle in BoddenTown also attract visitors. The Sister Islands - Little Cayman and Cayman Brac - also supply their own unique charm.
The Cayman Islands is regarded as one of the world's best
SCUBA diving destinations because of its crystal-clear waters and pristine walls.
Cayman Brac and
Little Cayman are also elite SCUBA dive destinations. There are several snorkeling locations where tourists can swim with
stingrays including the popular
Stingray City, Grand Cayman. Divers find two
shipwrecks off the shores of Cayman Brac particularly interesting including the MV Keith Tibbetts.
Other Grand Cayman tourist attractions include the ironshore landscape of
Hell, the 24- acre marine theme park
Boatswain's Beach, also home of the Cayman Turtle Farm, the production of gourmet
sea salt, and the
Mastic Trail, a hiking trail through the forests in the centre of the island. On Cayman Brac, a
lighthouse and a few local museums are tourist draws. Little Cayman's wildlife attracts nature lovers, especially bird watchers in search of the island's
Red-footed Booby population.
Financial services industry
The Cayman Islands is widely recognized to be one of the world's
leading offshore financial centres.
The Cayman Islands financial services industry encompasses
banking,
mutual funds,
captive insurance, vessel registration,
companies and
partnerships,
trusts, structured finance and the
Cayman Islands Stock Exchange. As of December 2005, just over 70,000 companies were
incorporated on the Cayman Islands including 430
banking and trust companies, 720
captive insurance firms and more than 7,000 funds.
A recent report released by the
International Monetary Fund (IMF) assessing supervision and regulation in the Cayman Islands' banking, insurance and
securities industries, as well as its anti-
money laundering regime, recognized the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices and introducing enhanced procedures," noted
IMF assessors. The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced
lawyers,
accountants and
auditors," adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML (
anti-money laundering) obligations...". The Cayman Islands had previously (briefly) appeared on the
FATF Blacklist in 2000, although its listing was thought to be harsh, and was criticised at the time.
[1]
Government
Main articles: Politics of the Cayman Islands
The Cayman Islands are currently a British overseas territory, listed by the UN Special Committee of twenty-four as one of the last non-self governing territories. A fifteen-seat
Legislative Assembly is elected by the people every four years to handle domestic affairs. Of the elected Members of the Legislative Assembly (MLAs), five are chosen to serve as government ministers in a cabinet headed by the governor. The head of government is the
Leader of Government Business, which is currently The Honourable
Kurt Tibbetts.
A
Governor is appointed by the British government to represent the monarch. The governor can exercise complete executive authority if they wish through blanket powers reserved to them in the constitution. They must give royal assent to all legislation, which allows them the power to strike down any law the legislature may see fit for the country. In modern times, the governor usually allows the country to be run by the cabinet, and the civil service to be run by the Chief Secretary, who is the Acting Governor when the Governor is not able to discharge his usual duties for one reason or another. The current governor of the Cayman Islands is
Stuart Jack and the current Chief Secretary is The Honourable
George McCarthy, OBE, JP.
Following the collapse of the
Euro Bank Corporation in 2003, constitutional modernisation has become the predominant issue in the Islands' politics. The prosecution in the related trial was forced to reveal that
MI6, on behalf of the British government and with the consent of the Governor, had planted moles (and used wire taps) throughout the Islands' banking industry. This caused the trial's collapse and subsequent release of those charged with wrongdoing. The only mole known at the time was allowed to leave the country, never to answer for what he (or the United Kingdom) had done. This infuriated the elected members of the legislative assembly as they maintained that the governor and the United Kingdom had put into question Cayman's reputation as a tightly regulated offshore jurisdiction. Some saw this as the United Kingdom meddling in the territory's affairs to benefit itself (and the EU), at the expense of the islands' economy.
Constitutional talks however went on hold following Hurricane Ivan in 2004. Subsequently, in May 2005, the ruling
UDP was ousted by the
PPM, which have slowed the constitutional modernisation process to a standstill. Among the points of contention is whether or not the new constitution should include a bill-of-rights.
Taxation
Caymanians and Caymanian companies are not subject to any form of direct taxation. However, an import tax of between 5% and 20% is levied on almost all imported goods.
Education
The Cayman Islands Education Council operates state funded schools on the island, with a Caribbean-oriented education curriculum. Caymanian children are entitled to free primary and secondary education. Various churches and private foundations operate several private schools offering curricula derived from American and UK education systems from kindergarten to twelfth grade. Grand Cayman is also home to
St. Matthew's University, which includes a medical school and a school of veterinary medicine.
The Cayman Islands Law School (CILS), a branch of the University of Liverpool in the UK, is also based on Grand Cayman. Situated in George Town, the law school has been in operation since 1982. As taken from the student handbook, "The Law School provides tuition for both full and part-time programmes leading to the Bachelor of Law (Honours) Degree of the University of Liverpool and the qualification of Attorney-at-Law of the Cayman Islands, following successful completion of the postgraduate Professional Practicum Course (PPC)
Grand Cayman is home to
University College of the Cayman Islands, the only government run University on the island. The University College is located at 168 Olympic Way in Georgetown, Grand Cayman.
The International College of the Cayman Islands which is located in Newlands about seven miles east of George Town. The college was established in 1970 and offers Associate's, Bachelor's and Post Graduate degree programs.
Healthcare
The Cayman Islands have a modern healthcare system. There are two hospitals in George Town, the government run George Town Hospital and the smaller, private Chrissie Tomlinson Memorial Hospital. Additionally, Faith Hospital is a small (eighteen-bed) facility on Cayman Brac. The Government maintains a satellite clinic on Little Cayman.
Health insurance is handled by private insurers and a government-run company (CINICO). There is no universal health coverage as in the UK. All employers are required under Law to provide Health Insurance for their employees (although the employee may be required to contribute 50% of the premium). Full time employees also contribute USD 10 every month to the "Indigent Fund" which helps cover care for the unemployed, elderly etc.
Currently the islands lack facilities for
cardiac catheterization, though many feel the population is large enough to support the procedure. Various attempts to establish a cath lab in George Town Hospital have stalled out. Similarly, the Caymans have lacked an
MRI since one was destroyed during Hurricane Ivan, however one has since been installed at the Chrissie Tomlinson Memorial Hospital and has been in operation since July 2007.
Improvements to Everyday Life
When the British Empire was still flourishing across the Globe the islands were under the wing of Jamaica. It was through Jamaica's Government that the islands were able to survive.
In 1932
Charles Hislop and his brother Edward began the first public supply of electricity to the districts of West Bay and George Town. The supply did not run the full 24 hours of the day but it was turned on at sunrise and then shut off at Sunset. This was started after the hurricane of 1932. The brothers Hislop were also responsible for many other luxuries that were brought to the island. They brought the first musical jukebox that was played at the first ice-cream parlour, which was called Cayman Ice and Electric. This was the main station of the electric plant and was situated in George Town.
Work permits
In order to work in the Cayman Islands as a non-citizen, a work permit is required. This involves passing a police background check and a health check. A prospective worker will not be granted a permit if certain medical conditions are present. Nor are work permits issued after age 60.
The Cayman Islands presently imposes a controversial "rollover" policy in relation to
expatriate workers who require a work permit. Non-Caymanians are only permitted to reside and work within the Territory for a maximum of seven years (non-renewable) unless they satisfy the criteria of key employees. The policy has been the subject of some controversy within the press,
[2] and concerns have been expressed that in the long term, the policy may damage the pre-eminence of the Cayman Islands as an
offshore financial centre by making it difficult to recruit and retain experienced staff from onshore financial centres. Government employees are no longer exempt from this "rollover" policy according to this report in a local newspaper
[8]. The Governor has decided to use his constitutional powers, which give him absolute control for the disposition of civil service employees, to determine which
expatriate civil servants are dismissed after seven years service and which are not.
This policy is enshrined in the Immigration Law (2003 revision), written by the UDP government, and subsequently enforced by the PPM government. Both governments agree to the term limits on foreign workers, and the majority of Caymanians also agree it is necessary to protect local culture, and heritage from being eroded by a large number of foreigners gaining residency/citizenshp.
[9]
Military
Main articles: Military of the Cayman Islands
The defence of the Cayman Islands is the responsibility of the
United Kingdom. The Islands have their own
police force, the
Royal Cayman Islands Police Service. Regular off-shore
marine patrols are conducted by the RCIP and Grand Cayman is a
port of call for the
United States Coast Guard.
Foreign relations
Main articles: Foreign relations of the Cayman Islands
The foreign relations of the Cayman Islands are largely managed from the
United Kingdom, as the islands remain an overseas territory of the UK. However, the Government of the Cayman Islands often resolves important issues with foreign governments alone, without intervention from Britain. Although in its early days, the Cayman Islands' most important relationships were with Britain and
Jamaica, in recent years, this has shifted, and they now rely more so on the
United States.
Though the Cayman Islands are involved in no major international disputes, they have come under some criticism due to the use of their territory for narcotics trafficking and
money laundering. In an attempt to address this, the Government entered into the Narcotics Agreement of 1984 and the
Mutual Legal Assistance Treaty of 1986 with the United States, in order to reduce the use of their facilities associated with these activities. In more recent years, they have stepped up the fight against money laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring banks to cooperate with foreign investigators.
Due to their status as an overseas territory of the UK, the Cayman Islands have no representation either on the
United Nations, or in most other international organizations. However, the Cayman Islands still participates in some international organizations, being a full member of the
Central Development Bank,
International Olympic Committee and
FIFA, an associate member of
Caricom and
UNESCO, and a member of a sub-bureau of
Interpol.
See also
★
The Scout Association of the Cayman Islands
★
Cayman Islands national football team
★
X107.1 Radio Station in Grand Cayman, Cayman Islands
Footnotes
1. The FATF's 2000 report itself acknowledged that "the Cayman Islands has been a leader in developing anti-money laundering programmes throughout the Caribbean region. It has served as president of the CFATF, and it has provided substantial assistance to neighbouring states in the region. It has demonstrated co-operation on criminal law enforcement matters, and uncovered several serious cases of fraud and money laundering otherwise unknown to authorities in FATF member states." Inferences were drawn that the list had been drawn up as an attack on tax havens, and that the inclusion of a leading offshore financial centre was necessary for political purposes.
2. Law firms have been particularly upset by the recruitment difficulties that it has caused. [3] Other less well remunerated employment sectors have been affected as well. [4] Concerns about safety have been expressed by diving instructors [5] and realtors have also expressed concerns. [6] Others support the rollover as necessary to protect Caymanian identity in the face of large immigration of expatriate workers. [7]
References
★
Cayman Islands ''Originally from the
CIA World Factbook 2000.''
★
Non-Self-Governing Territories listed by General Assembly in 2002
★
Founded upon the Seas: A History of the Cayman Islands and Their People, Michael Craton and the New History Committee, , , Ian Randle Publishers, Kingston, Jamaica, 2003, ISBN 0-9729358-3-5
★
Reefs and lagoons of Grand Cayman (in "Monographiae biologicae", ed. Brunt, MA and Davies, JE), Roberts, H. H., , , Kluwer Academic Publishers, Boston, MA., 1994, ISBN 0-7923-2462-5
★
Lexografía Antillana, Alfredo Zayas y Alfonso,, , , El Siglo XX Press, Havana, 1914,
External links
★
★
Cayman Islands Government
★
Cayman Islands Financial Services
★
National Hurricane Committee Cayman Islands Government - Emergency Management
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