Antigua and Barbuda is a twin-island nation in the Caribbean, with a population of over 90,000. It has been described as one of the most prosperous nations in the region, largely due to its thriving tourism industry and offshore financial services. However, its reliance on these sectors makes it vulnerable to economic downturns and natural disasters. So, is Antigua and Barbuda a developed country?
What You'll Learn
Antigua and Barbuda's economy
Tourism accounts for nearly 60% of the GDP and 40% of investment, and is the principal earner of foreign exchange. However, the country's reliance on tourism makes it vulnerable to downturns in the world market. In 1999, the budding offshore financial sector was hurt by financial sanctions imposed by the US and UK due to loosened money-laundering controls. The government has since made efforts to comply with international demands to have the sanctions lifted.
To reduce its vulnerability to natural disasters, Antigua has been diversifying its economy, with transportation, communications, and financial services becoming increasingly important. The country is a member of the Eastern Caribbean Currency Union (ECCU) and the Caribbean Community (CARICOM).
Agriculture in Antigua and Barbuda is mainly directed at the domestic market and accounts for 3.8% of the GDP. The sector is constrained by limited water supply and labour shortages, with workers attracted by higher wages in tourism and construction. Over the past 30 years, agriculture's contribution to the GDP has fallen from over 40% to 12%.
The country's manufacturing industry, which accounts for 5% of the GDP, produces bedding, handicrafts, and electronic components for export.
In 2017, Hurricane Irma devastated the infrastructure on the island of Barbuda, and the entire population had to be temporarily evacuated.
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The country's vulnerability to natural disasters
Antigua and Barbuda is vulnerable to a range of natural disasters, including hurricanes, earthquakes, volcanic activity, tsunamis, torrential rains, storm surges, and landslides. The country is particularly susceptible to hurricanes, as it is located in the North Atlantic Ocean, one of the six main tropical areas where hurricanes develop annually. The hurricane season in the Caribbean typically runs from June to November, and the region experiences an average of two hurricanes per year.
Hurricanes pose a significant threat to Antigua and Barbuda's infrastructure and economy. In 1995, Hurricane Luis caused severe damage to schools and other buildings, leading to temporary closures and repairs. More recently, in 2017, Hurricane Irma devastated the island of Barbuda, damaging or destroying 95% of its buildings and forcing a temporary evacuation of the entire population.
In addition to hurricanes, earthquakes are another potential hazard in Antigua and Barbuda. While the country has not experienced any major earthquakes in recent years, it lies in a region with moderate seismic activity due to its proximity to tectonic plate boundaries. The Caribbean region, including Antigua and Barbuda, is also susceptible to volcanic activity, tsunamis, and storm surges, which can cause significant damage to coastal areas.
To reduce their vulnerability to natural disasters, the government of Antigua and Barbuda has implemented measures such as diversifying the economy beyond tourism and improving infrastructure resilience. The country has also received support from international organizations like the European Union, which has allocated funds to enhance environmental sustainability and climate resilience in the region.
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The impact of climate change
Antigua and Barbuda is a small island developing state in the Caribbean Sea. It is an independent Commonwealth state and a member of the British Commonwealth. The country's economy is heavily reliant on tourism, which accounts for 60-80% of its GDP.
As a small island nation, Antigua and Barbuda is vulnerable to the effects of climate change. The impact of climate change on Antigua and Barbuda is twofold: firstly, the country is susceptible to extreme weather events such as hurricanes, droughts, and floods, which cause significant damage to infrastructure and the economy; secondly, the nation faces long-term environmental issues such as rising sea levels, coastal erosion, and water scarcity, which threaten the sustainability of its economy and the livelihoods of its residents.
Extreme Weather Events
Antigua and Barbuda is exposed to the impacts of extreme weather events caused by climate change, including hurricanes, droughts, and floods. In 2017, the island of Barbuda was devastated by Hurricane Irma, which brought winds of up to 295 km/h (185 mph) and damaged or destroyed 95% of the island's buildings and infrastructure. The storm left the island "barely habitable", and nearly all residents were evacuated to Antigua. The country's Director of the National Office of Disaster Services summarised the situation, stating that "all critical infrastructure and utilities are non-existent", and that it would take much longer than six months to rebuild.
Sea Level Rise and Coastal Erosion
Like other island nations, Antigua and Barbuda is vulnerable to rising sea levels caused by climate change. This, coupled with increased weather variability, leads to coastal erosion and saltwater intrusion. These issues not only threaten the residents living in low-lying coastal areas but also interfere with the country's tourism industry, as they impact the natural ecosystems and beaches that attract visitors.
Water Scarcity
Antigua and Barbuda already experiences recurrent droughts and water scarcity due to its low rainfall. Climate change is projected to exacerbate this issue by reducing average annual rainfall and increasing rainfall intensity, leading to more frequent and severe flooding. This will further strain the country's water resources, as desalination plants currently account for 60% of the national water supply.
Economic Impact
The economy of Antigua and Barbuda is heavily dependent on natural resources and is particularly vulnerable to the impacts of climate change. Tourism, which is the country's main industry, relies on the nation's favourable climate conditions and coastal areas. Climate change-induced events such as hurricanes and coastal erosion directly impact the tourism sector and threaten the sustainability of the country's economy. Additionally, the agriculture sector, which contributes to the country's economy, faces challenges due to limited water supply and labour shortages.
Environmental Degradation
The effects of climate change will further exacerbate environmental degradation in Antigua and Barbuda. The country already faces unique environmental issues due to its small size and proximity to the ocean, including pressures on drinking water resources and natural ecosystems. Climate change intensifies these challenges and threatens the long-term sustainability and resilience of the nation.
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The country's political history
Antigua and Barbuda's political history is closely tied to its economic development, particularly the growth of the tourism industry and the country's transition from a plantation economy to a service-based economy.
The country was colonised by British settlers in 1632, with Thomas Warner becoming the first governor. Under British rule, the islands became a plantation economy, with cash crops such as tobacco, indigo, ginger, and sugarcane grown using enslaved labour. The brutal conditions endured by enslaved people led to several revolts, with the most serious occurring in 1834-35.
Slavery was abolished in the British Empire in 1833, but the economic dependence on plantation owners remained. The lack of surplus farming land, access to credit, and an agriculture-based economy created limited economic opportunities for the freed population. Poor labour conditions persisted until 1939, when a member of a British Crown commission urged the formation of a trade union movement, leading to the creation of the Antigua Trades and Labour Union.
The political vehicle for Sir Vere Cornwall Bird, the Antigua Labour Party (ALP), was formed by trade unionists and first ran candidates in the 1946 elections. The ALP became the majority party in 1951, beginning a long history of electoral victories.
During the 1970s, an independence movement emerged, led by Prime Minister George Walter, who favoured complete independence for the islands. In 1978, Antigua reversed its position and announced its desire for independence. The autonomy talks were complicated by Barbuda's desire to secede, as it felt economically stifled by Antigua.
Finally, on November 1, 1981, Antigua and Barbuda gained independence, becoming a constitutional monarchy with Queen Elizabeth II as its head of state. Vere Bird, who favoured regional integration, became the first prime minister of the new nation. The post-independence political landscape remained relatively stable, with the Bird family dominating politics until 1994, when Vere Bird resigned and was replaced by his son, Lester Bird.
However, the Bird governments were frequently accused of corruption, cronyism, and financial malfeasance. In 1995, Hurricane Luis caused severe damage to Barbuda, and in 1997, Prime Minister Lester Bird announced a controversial deal with Malaysian developers to build a hotel, golf course, and casino on ecologically sensitive islands off Antigua's northeastern coast.
In 2004, the United Progressive Party (UPP), led by Winston Baldwin Spencer, won the general election, ending the ABLP's dominance in Antiguan politics. However, in 2014, the ABLP regained power under Gaston Browne, who has remained the prime minister since.
In 2022, Prime Minister Gaston Browne announced his intention to hold a referendum on whether the country should become a republic, a proposal that is still under discussion.
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The country's language and demographics
Antigua and Barbuda is a sovereign archipelagic country in the Caribbean, lying at the conjunction of the Caribbean Sea and the Atlantic Ocean in the Leeward Islands part of the Lesser Antilles. The country consists of two major islands, Antigua and Barbuda, which are approximately 40 km (25 mi) apart, and several smaller islands, including Great Bird, Green, Guiana, Long, Maiden, Prickly Pear, York, and Redonda. The permanent population is approximately 97,120 (2019 estimates), with 97% residing in Antigua. St. John's, Antigua, is the country's capital, major city, and largest port. Codrington is Barbuda's largest town.
The population of Antigua and Barbuda is predominantly Black (91%), with smaller percentages of the population being mixed race (4.4%), White (1.7%), and East Indian (2.9%). There is also a small Amerindian population, as well as people from the Middle East and China. The country has a high adult literacy rate of approximately 99%.
English is the official language of Antigua and Barbuda, though Antiguan Creole is also widely spoken. The language used in business is English, and there is a noticeable distinction between the Antiguan and Barbudan accents. The Antiguan Creole language is generally looked down upon by the upper and middle classes and is discouraged in the educational system, with instruction carried out in Standard (British) English. However, a significant number of the words used in the Antiguan dialect are derived from both British and African languages.
The most widely spoken immigrant language in Antigua and Barbuda is Spanish, with other immigrant languages including Portuguese and North Levantine Arabic.
The majority of the population (77%) identifies as Christian, with the largest single denomination being Anglican (17.6%). Other notable denominations include Seventh-day Adventist (12.4%), Pentecostal (12.2%), and Moravian (8.3%).
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Frequently asked questions
No. Antigua and Barbuda is a developing country. While it is one of the most prosperous nations in the Caribbean, it is still considered a Small Islands Developing State (SIDS) and is highly dependent on a limited number of economic sectors, including tourism and offshore financial services.
The economy of Antigua and Barbuda is service-based, with tourism being the main source of income and employment. Agriculture, manufacturing, and construction are also important sectors.
The living conditions in Antigua and Barbuda vary. While the country has a high life expectancy and access to basic services such as electricity, it also faces challenges such as poverty and unemployment.
Antigua and Barbuda is a constitutional monarchy with a parliamentary form of government. It has a bicameral legislature, with a Senate and a House of Representatives. The country has a long history of free and fair elections, and the current prime minister is Gaston Browne.
The population of Antigua and Barbuda is over 90,000 as of 2023. The majority of the population is of African descent, with some people of British, Portuguese, Lebanese, and Syrian origin.