Belize: First World Country Or Not?

Belize is a small, upper-middle-income country with a population of about 359,000 and a per capita income of $4,906 as of 2016. It is the only English-speaking country in Central America and has strong ties with the UK, being a member of the Commonwealth. Belize is considered a developing country, with a diverse ecology and economy, and a stable, democratic political system. However, the term third world is considered outdated and derogatory, and Belize does not fit the modern definition of a third-world country.

Belize's status as a developing country

Belize is a developing country situated on the northeastern coast of Central America. It is the only Central American country with English as its official language, though Belizean Creole, Spanish, Mayan, German, and Garifuna are also spoken. Belize is ethnically diverse, with a population of approximately 465,000 people. It is considered a Central American and Caribbean nation with strong ties to both regions.

Belize's path to independence was marked by a unique international campaign against the irredentist claims of its neighbour, Guatemala, which has continued to dispute Belize's territory. Belize is a constitutional monarchy with a democratic political system, and it is considered one of the most stable in Central America.

Belize's economy has undergone a significant transformation over the last two decades, largely due to the growing tourism industry and the discovery of commercial oil in 2005. Tourism and agriculture are the main sources of income and employment, with sugar being the chief crop. The country has a unique cultural heritage and is ecologically diverse, with natural capital along its coast, including the largest coral reef in the Americas and an extensive mangrove ecosystem.

While Belize has made progress in certain areas, it still faces challenges such as violent crime, largely related to drug trafficking, and issues with food insecurity. Internet access is limited due to a lack of infrastructure and high prices. Despite these challenges, Belize is actively cultivating relations with Latin America and the United States, and it is a self-sustaining nation with a sophisticated transportation system and a widespread school system.

Belize's economic transformation

Belize is a small, upper-middle-income country with a population of about 359,000 and a per capita income of US$4,906 in 2016. Over the last two decades, Belize has undergone significant economic transformation, mainly due to the growing tourism industry and the commercial discovery of oil in 2005.

Economic Transformation

Belize has a developing free-market economy. The country's economy is primarily based on agriculture, agro-based industry, and merchandising, with tourism and construction recently assuming greater importance. Belize's economic transformation has been driven by the following factors:

• Tourism: Belize's rich natural resources, including its extensive coral reefs and diverse ecosystems, have made it a popular tourist destination. The country's many Mayan ruins, as well as its pristine beaches and marine life, attract visitors from all over the world. Tourism is a major source of foreign income and employment for Belize.
• Agriculture: Belize's agricultural sector includes crops such as sugarcane, citrus fruits, bananas, corn, beans, and rice. The country has a diverse agricultural landscape, with both small farms and large plantations. While agriculture employs about one-fifth of the population, it faces challenges such as small farm sizes and nutrient-poor soils.
• Oil Discovery: The discovery of crude oil in 2005 presented new opportunities and challenges for Belize's economy. Oil production has become an important part of the country's economic landscape, contributing to its transformation.
• Foreign Investment: Belize has actively sought foreign direct investment (FDI) to relieve fiscal pressure and transform its economy. The country has implemented policies to attract FDI, such as tax incentives and export-oriented business packages. While bureaucratic delays and high public debt have posed challenges, FDI inflows have increased, particularly in real estate, construction, financial services, and hospitality.
• Economic Diversification: Belize has made efforts to diversify its economy beyond traditional agricultural exports. The country has promoted non-traditional agricultural products, such as papayas and habanero peppers, and has developed its manufacturing sector, including food products, fertilizers, and textiles.
• Infrastructure Development: Belize has invested in improving its infrastructure, including roads, ports, and international airports. However, the country still faces challenges, such as high electricity costs and limited access to modern utilities in rural areas.
• Trade Agreements: Belize is a member of the Caribbean Community (CARICOM) and has trade agreements with the European Union, Mexico, and other Central American countries. These trade agreements have facilitated the export of agricultural products and contributed to the country's economic growth.
• Financial Services: Belize has a small but diverse financial sector, including commercial banks, credit unions, and insurance companies. The country has also established itself as a hub for international banking and financial services, attracting foreign investors.
• Natural Resource Management: Belize has taken steps to protect and sustainably manage its natural resources, including its forests and marine ecosystems. The country has designated protected areas and implemented renewable energy technologies, such as hydroelectric dams.
• Education and Human Capital: Belize has invested in improving access to education, with a focus on technical and vocational training. However, the country still faces challenges, such as a low literacy rate compared to other countries in the region.
• Political Stability: Belize has a stable political environment, having held peaceful and transparent democratic elections since gaining independence in 1981. This stability has contributed to economic growth and foreign investment.

While Belize has made significant economic progress, it continues to face challenges, including a high public debt, a small domestic market, and the need for greater economic diversification. Nonetheless, the country's ongoing transformation is expected to contribute to improved living standards and increased economic opportunities for its citizens.

Belize's political system

Belize is a parliamentary constitutional monarchy with a two-house legislative system. The head of state is King Charles III, who is represented in Belize by the governor-general, currently Froyla Tzalam. The governor-general is responsible for appointing the prime minister, who is the head of government and advises the governor-general on the executive duties of the government. The current prime minister is Johnny Briceño.

The National Assembly of Belize is bicameral, consisting of a House of Representatives and a Senate. The 31 members of the House are popularly elected to a maximum five-year term and introduce legislation affecting the development of Belize. The governor-general appoints the members of the Senate, with a Senate president selected by the members. The Senate is responsible for debating and approving bills passed by the House.

Legislative power is vested in both the government and the Parliament of Belize. Constitutional safeguards include freedom of speech, press, worship, movement, and association. The judiciary is independent of the executive and the legislature.

Belize's population and demographics

Belize is the least populated and least densely populated country in Central America, with a population of 410,990 as of 2022. The population growth rate of 1.87% per year (2018 estimate) is the second-highest in the region and one of the highest in the Western Hemisphere. Belize's population is ethnically diverse, with most Belizeans being of multiracial descent.

The country's population is distributed across six districts, with the capital, Belmopan, and the largest city, Belize City, located in the Belize District. Belize City is home to about one-fourth of the population, while slightly more than half live in rural areas.

• Mestizo-Hispanic/Latino: 51.7%
• Creole: 25.2%
• Maya: 9.8%
• Garifuna: 4%
• East Indian: 1.5%
• Mennonite: 3.6%
• White: 4.8%
• Others: 7.8%

Belize has a high prevalence of communicable diseases such as respiratory illnesses and intestinal diseases. The literacy rate in Belize was estimated at 79.7% in 2010, one of the lowest in the Western Hemisphere. However, the country has a diverse society composed of many cultures and languages, with English being the official language and Belizean Creole being the most widely spoken dialect.

Belize's history and independence

Belize's history dates back thousands of years, with the Maya civilisation flourishing in the region from 1500 BC to 1200 BC. The first recorded European incursions in the region were made by Spanish conquistadors and missionaries in the 16th century, though European contact began in 1502-04 when Christopher Columbus sailed along the Gulf of Honduras. The Spanish soon tried to maintain a monopoly on trade and colonisation in the region, but northern European powers were attracted by the potential for trade and settlement. The British began exploring the region in 1638, and the first permanent British settlement was founded in the 1710s.

Conflict between Britain and Spain over the territory continued throughout the 17th and 18th centuries, with the Spanish attacking British settlements whenever the two powers were at war. The last Spanish attack on the British settlement, the Battle of St George's Caye, occurred in 1798. The British drove off the Spanish, thwarting their last attempt to control the territory.

In 1825, Mexico was officially recognised by Britain and abandoned any claims over Belize. In 1833, an act to abolish slavery throughout the British colonies was passed, though the masters of the settlement continued to control the country for over a century by denying access to land and limiting freedmen's economic freedom. In 1836, after the emancipation of Central America from Spanish rule, the British claimed the right to administer the region. Belize became a British colony in 1840, and a Crown colony in 1862.

In the 1930s, the Great Depression shattered the colony's economy, and unemployment increased rapidly. In 1931, a hurricane demolished Belize Town, killing more than 1,000 people. The British relief response was inadequate, and the governor seized the opportunity to impose tighter control on the colony. The Belize Estate and Produce Company, which owned about half of all the privately held land in the colony, survived the depression years due to its special connections in British Honduras and London.

In 1941, trade unions were legalised, and in 1943, a law removed breach-of-labour-contract from the criminal code. The General Workers' Union (GWU) was registered in 1943 and provided crucial support for the emerging independence movement. In 1950, the People's United Party (PUP) was formed, and by 1954, it had become a powerful political force. In 1961, Britain was willing to let the colony become independent, but negotiations with Guatemala, which had long-standing claims to the territory, proved difficult.

In 1973, the colony's name was changed to Belize in anticipation of independence. In 1980, the UN passed a resolution that demanded the independence of Belize, and Belize was granted independence on 21 September 1981. Guatemala refused to recognise the new nation because of its longstanding territorial dispute, and about 1,500 British troops remained in Belize to deter any possible Guatemalan incursions.

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