Belize
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Guatemala refused to recognize the new nation until 1992. Tourism has become the mainstay of the economy. Current concerns include an unsustainable foreign debt, high unemployment, growing involvement in the South American drug trade, growing urban crime, and increasing incidences of HIV/AIDS. OAS-initiated Agreement on the Framework for Negotiations and Confidence Building Measures saw cooperation in repatriation of Guatemalan squatters and other areas, but Guatemalan land and maritime claims in Belize and the Caribbean Sea remain unresolved; the Line of Adjacency created under the 2002 Differendum serves in lieu of the contiguous international boundary to control squatting in the sparsely inhabited rain forests of Belize's border region; Honduras claims Belizean-administered Sapodilla Cays in its constitution but agreed to a joint ecological park under the Differendum . In this small, essentially private-enterprise economy, tourism is the number one foreign exchange earner followed by exports of marine products, citrus, cane sugar, bananas, and garments. The government's expansionary monetary and fiscal policies, initiated in September 1998, led to sturdy GDP growth averaging nearly 4% in 1999-2007. Oil discoveries in 2006 bolstered the economic growth in 2006 and 2007. Major concerns continue to be the sizable trade deficit and unsustainable foreign debt. In February 2007, the government restructured nearly all of its public external commercial debt, which will reduce interest payments and relieve liquidity concerns. A key short-term objective remains the reduction of poverty with the help of international donors. Source: The Country Factbook, CIA. |
Belize
was the site of several Mayan city states until their decline at the end of the
first millennium A.D. The British and Spanish disputed the region in the 17th
and 18th centuries; it formally became the colony of British Honduras in 1854.
Territorial disputes between the UK and Guatemala delayed the independence of
Belize until 1981.