Belize's Industrialization: A Developing Success Story

Belize is a newly industrialised country (NIC) because its economy has moved away from being agriculture-based to one that is more industrialised and urban. NICs are countries whose economic development falls somewhere between developing and highly developed classifications. Belize's economy is based primarily on tourism, agriculture, and services.

Belize's gross domestic product (GDP) grew to US$2.95 billion in 2022, a 12.1% rise following a 15.2% increase in 2021. International tourism, which accounts for approximately 40% of the country's economy, has surged back after a steep COVID-related decline, with 2022 revenues surpassing 2019 levels.

Belize is the only English-speaking country in Central America. It has a unique cultural heritage and is remarkably diverse ecologically, with extensive natural capital along its coast, including the largest coral reef in the Americas and an extensive mangrove ecosystem.

Belize's economy: agriculture, tourism, and services

Belize's economy is largely based on agriculture, tourism, and services.

Agriculture

Belize's agricultural sector employs about one-fifth of the population and contributes to a significant proportion of its exports. Most farms are smaller than 100 acres (40 hectares) and practice traditional shifting cultivation due to the nutrient-poor soils of the lowlands. The remaining farms are larger-scale operations that produce export crops such as sugarcane, citrus fruits, bananas, corn, kidney beans, rice, and vegetables. Belize's agricultural sector has also diversified into non-traditional crops such as papayas and habanero peppers.

Tourism

Tourism is the most important source of foreign exchange for Belize, with its natural attractions, including the largest coral reef in the Americas, extensive mangrove ecosystems, and numerous Mayan ruins, attracting visitors from around the world. Ecotourism and water sports such as SCUBA diving, snorkelling, fishing, and sailing are also popular.

Services

The services sector has been the largest contributor to Belize's economy since the early 1980s, employing nearly half of the labour force. The Central Bank of Belize oversees the country's banks and issues the Belize dollar. Belize's main exports include seafood, sugar, citrus products, bananas, and clothing, while its chief imports are machinery, transport equipment, food, fuels, and chemicals.

Belize's exports: citrus, sugar, and bananas

Belize's economy is based primarily on agriculture, agro-based industry, and merchandising, with tourism and construction also playing important roles. Citrus fruits, sugar, and bananas are among the country's key exports.

Citrus

Citrus fruits, including oranges and grapefruit, are grown mainly in the Stann Creek and Cayo areas, south and west of Belize City. Citrus exports have seen a decline in recent years, with data from the Statistical Institute of Belize (SIB) showing a decrease in exports from $3.2 million in February 2023 to $1.1 million in February 2024. This decline is partly attributed to a reduction in sales of orange concentrate.

Sugar

Sugarcane is cultivated around the towns of Corozal and Orange Walk, and sugar is exported to the United States and the European Union. Sugar production has historically been a significant part of Belize's economy, with sugar and citrus exports surpassing the value of timber by 1960. In more recent times, sugar production has decreased due to the destruction of sugarcane fields in a hurricane in 2000. However, sugar remains an important export, contributing to about two-thirds of total exports.

Bananas

Banana production in Belize dates back to the late 19th century when it was a British colony. Over the years, banana production has shifted from large-scale American and British-owned companies to smaller-scale localized indigenous farming primarily targeting the European market. Banana exports have experienced fluctuations, with production rising and falling between 1994 and 1999. In 1999, banana production accounted for 16% of total Belizean exports. The construction of new port facilities at Big Creek in southern Stann Creek District is expected to increase banana exports.

Belize's history: from Maya civilization to independence

Belize, located on the northeastern coast of Central America, has a rich history that dates back to the ancient Maya civilization. The Maya civilization flourished in the region between 1500 BC and 1200 AD, and left a lasting impact on the area's culture and heritage.

European contact with Belize began in the early 16th century when Christopher Columbus sailed along the Gulf of Honduras. This was followed by English exploration and settlement starting in 1638. The territory that is now Belize was claimed by both Spain and Britain, with Britain ultimately gaining control after defeating the Spanish in the Battle of St. George's Caye in 1798. Belize became a British colony in 1840 and a Crown colony in 1862.

During the colonial period, Belize's economy was largely based on the exploitation of natural resources, particularly logwood and mahogany. The use of enslaved Africans to cut logwood and later mahogany was a significant aspect of this period, with the Spanish granting the British settlers the right to occupy the area in exchange for their help in suppressing piracy.

The path towards independence for Belize was a prolonged one, complicated by a territorial dispute with neighbouring Guatemala. In 1964, Belize (then known as British Honduras) was granted self-government by Britain, and in 1973, the country's name was officially changed to Belize. Finally, on September 21, 1981, Belize achieved full independence from the United Kingdom, becoming the last British colony on the American mainland.

Since independence, Belize has maintained its historical ties with the United Kingdom as a member of the Commonwealth, with King Charles III as its monarch and head of state. The country has also experienced a significant demographic shift, with the Creole population, which was once the largest ethnic group, emigrating in large numbers, and the Mestizo population growing due to immigration from Latin America.

Belize's politics: stable democratic government

Belize is a parliamentary constitutional monarchy with a democratic government. The structure of the government is based on the British parliamentary system, and the legal system is modelled on English common law. The head of state is King Charles III, who is the monarch of Belize and is represented by a governor-general. Executive authority is exercised by the cabinet, which advises the governor-general and is led by the prime minister, who is the head of government. Cabinet ministers are members of the majority political party in parliament and usually hold elected seats within it, concurrent with their cabinet positions.

The bicameral National Assembly of Belize comprises 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 12 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. Members of the independent judiciary are appointed. The judicial system includes local magistrates grouped under the Magistrates' Court, which hears less serious cases. The Supreme Court (chief justice) hears murder and similarly serious cases, and the Court of Appeal hears appeals from convicted individuals seeking to have their sentences overturned. Defendants may, under certain circumstances, appeal their cases to the Caribbean Court of Justice.

Belize's politics have been dominated by the centre-left People's United Party and the centre-right United Democratic Party since 1974. The latest election in 2020 was won by the People's United Party, led by Prime Minister Johnny Briceño.

Belize's society: diverse, with strong ecological preservation efforts

Belize is a diverse society with a strong focus on ecological preservation. The country is home to people of many different cultures and languages, including Mayan, Creole, Spanish, German, and Garifuna. Belize is the only Central American country where English is the official language, while Belizean Creole is the most widely spoken dialect.

Belize has a rich variety of wildlife and ecosystems, including terrestrial and marine plants and animals, extensive coral reefs, and mangrove ecosystems. The country is considered a key part of the Mesoamerican Biological Corridor, which stretches from southern Mexico to Panama. Belize has also taken steps to protect its natural resources, with 37% of its land territory under some form of official protection. This includes initiatives such as banning bottom trawling and offshore oil drilling near the Belize Barrier Reef, which is a UNESCO World Heritage Site.

In addition to its ecological preservation efforts, Belize has a growing economy with a focus on tourism, agriculture, and manufacturing. The country has a diverse range of agricultural products, including sugarcane, maize, bananas, oranges, soybeans, and sorghum. The manufacturing industry includes food products, textiles, and furniture, while the service sector, particularly tourism, has become an important part of the economy.

Belize's society and culture are shaped by its diverse population and strong ecological preservation efforts, making it a unique and fascinating country in Central America.

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