Antigua And Barbuda: In Debt To Britain?

Antigua and Barbuda is a sovereign archipelagic country in the Caribbean, consisting of two major islands and several smaller islands. It has a population of approximately 97,120 people, with 97% residing in Antigua. The country gained independence from the United Kingdom in 1981 and is a member of the Commonwealth. The economy of Antigua and Barbuda is largely dependent on tourism, which accounts for 80% of its GDP. The country's public debt has been increasing over the years, and as of 2022, it was estimated to be $1.439 billion, reaching 86.24% of the country's GDP. This raises the question of whether Antigua and Barbuda is in debt to Britain and what impact this has on the country's economy and relationship with the UK.

Antigua and Barbuda's public debt

The per capita debt in Antigua and Barbuda was 14,244 euros or 15,011 dollars per inhabitant in 2022, up from 12,832 euros or 15,188 dollars in 2021. The country's debt per person in 2012 was 9,388 euros or 12,069 dollars.

The country's debt challenges have been exacerbated by unforeseen pandemic response spending and sharp declines in government revenues, which led to increased borrowing in 2020. As of December 2021, Antigua and Barbuda's public sector debt totalled 1.3 billion dollars, representing 89% of its GDP.

The country's GDP

The economy of Antigua and Barbuda is service-based, with tourism and government services being the key sources of employment and income. In 1999, tourism contributed 60% of the country's GDP and more than half of all jobs. According to the Americas Review 1998, tourism contributed 15% directly and around 40% indirectly to the GDP in 1998. By 2002, the services sector accounted for 74.3% of the country's GDP, with industry and agriculture making up 22% and 3.8% respectively.

In 2008, Antigua and Barbuda's GDP was estimated to be $1.61 billion, with a real growth rate of 2.1%. The GDP per capita was $19,000. By 2021, the GDP had grown to an estimated $1.47 billion, representing a 5.3% growth from 2020. The country's GDP per capita debt in 2022 was $15,011, and its public debt was $1,516 million, which amounted to 86.24% of its GDP.

The government has been taking steps to improve the economy and lessen its vulnerability to natural disasters. Transportation, communications, and financial services are becoming increasingly important. Antigua and Barbuda is a beneficiary of the US Caribbean Basin Initiative, and it belongs to the predominantly English-speaking Caribbean Community (CARICOM). The country has also been diversifying its economy beyond tourism, with growing exports in the fishing industry and the development of a digital assets business.

The impact of climate change

Antigua and Barbuda is a small island developing state in the Caribbean Sea with a population of 97,928 as of 2020. The country's economy is heavily dependent on natural resources, with its low-lying coastal zones and favourable climate conditions supporting a tourism sector that accounts for about 80% of output gross domestic product (GDP), about 70% of direct and indirect employment, and 85% of foreign exchange earnings.

• Antigua and Barbuda is vulnerable to the impacts of extreme weather events caused by climate change, such as hurricanes, droughts, and floods.
• Climate change will further exacerbate environmental degradation and threaten the sustainability of the country's economy, particularly in the tourism sector.
• Analysis of climate change for the island projects accelerated coastal erosion and inundation, lower average annual rainfall, increased rainfall intensity causing flooding, and a likely increase in tropical storm intensity.
• The country is exposed economically, environmentally, and socially to the projected impacts of climate change.
• Desalination reliance has already grown to account for 60% of the national water supply, and this is the most viable option for enhancing freshwater resources.
• To address the challenges posed by climate change, the government has implemented cost-effective adaptation measures, including developing innovative financing mechanisms, implementing ecosystem-based adaptation interventions, building institutional and technical capacity, and strengthening the national and regional knowledge base for adaptation.
• The government has also supported the setting up of the national Sustainable Island Resource Framework (SIRF) Fund for adaptation funding and a revolving loan program for building the resilience of households and small businesses.
• The country's building code has been revised to include guidelines for climate-resilient buildings.

The country's independence from the UK

Antigua and Barbuda's journey to independence from the UK was a long and complex process. The country, which consists of two major islands—Antigua and Barbuda—and several smaller islands, became a sovereign nation on 1 November 1981, marking the end of its colonial past. Here's a detailed account of the country's independence from the United Kingdom.

The Colonial Era

Great Britain colonised Antigua in 1632 and Barbuda in 1678, bringing the islands under British rule. During this period, the country witnessed an influx of British settlers and the establishment of cash crop agriculture, particularly tobacco and sugar. The sugar industry, led by Sir Christopher Codrington's large sugar estate in Antigua, became the economic backbone of the islands. This period was also marked by the enslavement of Africans, who were brought to the islands to work on the plantations, leading to a demographic shift.

The Path to Independence

In the mid-20th century, Antigua and Barbuda started moving towards self-governance. In 1958, the islands joined the short-lived West Indies Federation, which dissolved in 1962. Following this, Antigua and Barbuda became an associated state of the United Kingdom on 27 February 1967, gaining full internal autonomy while the UK retained responsibility for external affairs and defence.

During the 1970s, the political landscape was dominated by discussions about the islands' future. Vere Bird of the Antigua and Barbuda Labour Party (ABLP) favoured regional integration, while George Walter of the Progressive Labour Movement (PLM) advocated for complete independence. Eventually, the movement for independence gained momentum, and on 1 November 1981, Antigua and Barbuda gained full independence from the United Kingdom, becoming a constitutional monarchy with Queen Elizabeth II as its head of state.

Post-Independence Era

The post-independence era saw political stability and the continued dominance of the Bird family and the ABLP in Antiguan politics. However, allegations of corruption and financial malfeasance plagued their governance. In 1994, Vere Bird retired, passing the torch to his son Lester Bird, who served as prime minister until 2004. During this period, the country's economy was dealt a blow when Hurricane Luis caused severe damage to Barbuda in 1995.

In 2004, the ABLP's hold on power ended with the victory of the United Progressive Party (UPP) in the general election. Winston Baldwin Spencer became the new prime minister, serving until 2014. However, the UPP's reign was short-lived, as the ABLP returned to power in the 2014 election under the leadership of Gaston Browne, who remains the incumbent prime minister as of 2024.

The country's citizenship by investment program

The Antigua and Barbuda Citizenship by Investment Program was designed and implemented by Henley & Partners under a government mandate in 2012. The program is appealing to applicants seeking alternative citizenship through acquiring desirable properties or by contributing to the islands’ National Development Fund.

The program offers a pathway to citizenship through significant economic contributions. It provides multiple investment options and a range of benefits for successful applicants and their families.

Antigua and Barbuda offers three primary investment routes to citizenship. Each option requires a significant financial commitment but provides different benefits and opportunities for investors. The investment options are:

• A non-refundable contribution to the National Development Fund
• Real estate investment in approved projects
• Investment in eligible businesses
• Contribution to the University of the West Indies Fund

The minimum investment starts at $230,000 for a contribution to the National Development Fund. The total cost for a family of four is $266,200.

The program offers a unique opportunity tailored for large families of six or more members: they can contribute $260,000 to a higher education institution (University of the West Indies). This makes Antigua the most cost-effective option for larger families. This route also entitles one family member to a one-year scholarship at the University of the West Indies.

Visa-free countries: 151

Visa-free to EU Schengen: Yes

Taxes: No tax on worldwide income

Processing time: 4-7 months

Investment holding period: 5 years

Eligible family members:

• Grandparents over 55
• 5 years for the first passport
• 10 years for the second passport, etc. (after fulfilling the visit requirement)

Visit or residency requirement: 5 days within the first 5 years after citizenship approval

Interview requirement: Yes (online)

To qualify for citizenship, the main applicant must be over 18 years of age, meet the application requirements, and select one of the four options available.

To qualify for Antigua and Barbuda citizenship by investment, applicants must:

• Be at least 18 years old
• Have a clean criminal record
• Pass due diligence checks
• Demonstrate a legally obtained source of funds
• Commit to one of the investment options

Dependents can be included in the application, such as a spouse, children under 28, and parents over 58.

The government authority responsible for administering the program, the Citizenship by Investment Unit (CIU), is responsible for the processing and thorough examination of all applications.

The CIU undertakes strict due diligence checks and will decline an application if the applicant makes a false statement or omits any relevant information in the application. The documentary requirements of the Antigua and Barbuda Citizenship by Investment Program are reasonable, and the procedures are straightforward. Once the application has been approved, main applicants and dependents aged 16 and older are required to attend mandatory virtual interviews. Passports can then be collected in Antigua and Barbuda.

Frequently asked questions