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Updated October 16, 2019
The Bahamas: An Overview
Political and Economic Environment
estimated 1.6%, spurred by U.S. economic expansion and
The Bahamas, a Caribbean nation of some 700 islands off
full opening of the Baha Mar project. For 2019, real growth
the southeast coast of the United States, has been a stable
is projected to decline to 0.9% because of the impact of
parliamentary democracy since its independence from the
Hurricane Dorian (see “Hurricane Dorian,” below).
United Kingdom (UK) in 1973. The country’s bicameral
legislature has a 39-seat House of Assembly directly elected
for five-year terms and a 16-member appointed Senate.
Since independence, the political scene has been dominated
by two political parties, the center-left Progressive Liberal
Party (PLP) and the center-right Free National Movement
(FNM). The PLP was formed in 1953 as an opposition
party to the United Bahamian Party (UBP), which governed
the Bahamas when the country was under British rule. In
1967, the PLP won control of the government and oversaw
the country’s independence from the UK. It ruled
continuously from 1967 until 1992 under the leadership of
Lynden Pindling, commonly referred to as the “father of the
nation.” The FNM was formed in 1971 by former members
of the UBP and dissidents from the PLP. Under the
leadership of Hubert Ingraham, the FNM won the 1992
general elections, governing until 2002. The PLP returned
to power in 2002 under the leadership of Perry Christie, lost
in 2007 to the FNM (still led by Hubert Ingraham), and won
again in 2012, with Perry Christie as prime minister.
In the May 2017 elections, the FNM returned to power in a
landslide, capturing 35 House of Assembly seats compared
to 4 for the PLP, with new FNM party leader Hubert Minnis
becoming prime minister. At the outset of 2017, many
observers thought it was likely that the PLP under Christie
Source: CRS.
would win a majority. This was largely because of disarray
within the FNM, which faced a chaotic party leadership
challenge in 2016. Once the election was called, however,
The Bahamas at a Glance
observers predicted the elections would be close, in large
Population:
377,000 (2018, IMF)
part because of the growing unpopularity of the PLP due to
the country’s difficult economic environment. Ultimately,
Area (square miles):
5,359, slightly smaller than
the poor state of the economy along with rising crime and
Connecticut (CIA)
controversies associated with the Chinese-financed Baha
GDP (current prices):
$12.4 billion (2018 est., IMF)
Mar resort in the capital of Nassau led to the PLP’s
thrashing at the polls. Problems with the Baha Mar project
GDP Growth:
1.6% (2018 est., IMF)
included construction delays, the use of Chinese laborers,
Per Capita Income:
$32,997 (2018 est., IMF)
and reported sweetheart business deals.
Life Expectancy:
75.8 years (2017, UNDP)
With a per capita income level approaching $33,000 (2018),
Key Leaders:
Dr. Hubert Minnis, Prime
the Bahamian economy is classified by the World Bank as
Minister; Darren Henfield,
high income. Tourism and related construction and
Minister of Foreign Affairs
financial services are the key sectors for the service-based
economy. The Bahamian economy was hard-hit by the
Sources: International Monetary Fund (IMF); Central Intelligence
global financial crisis and registered economic contractions
Agency (CIA); United Nations Development Programme (UNDP).
of 2.3% and 4.2% in 2008 and 2009, respectively. Although
economic growth returned from 2010 through 2012, the
High rates of violence have afflicted the Bahamas for
economy contracted by almost 3% in 2013 and then
several years. According to the United Nations Global
stagnated through 2017, according to the International
Study on Homicide 2019, from 2012 to 2016, the Bahamas
Monetary Fund. In 2018, the economy grew by an
had a homicide rate of about 32 murders per 100,000, the
sixth-highest rate in the Americas. With 122 murders in
https://crsreports.congress.gov
The Bahamas: An Overview
2017, the homicide rate was 31 per 100,000, but in 2018,
the U.S. Agency for International Development’s (USAID)
the number of murders decreased to 91, the lowest count in
online Foreign Aid Explorer (https://explorer.usaid.gov/).
nine years, bringing the homicide rate to 24 per 100,000.
This included $861,000 provided by the Department of
Defense for anti-narcotics support, $500,000 in Foreign
Some 30,000-60,000 Haitians or persons of Haitian descent
Military Financing, and $173,000 in International Military
live in the Bahamas, according to unofficial estimates cited
and Training (IMET) assistance to increase the capability of
in the State Department’s Country Reports on Human
the Royal Bahamas Defence Force to address transnational
Rights Practices for 2018. The report noted widespread bias
threats. The Administration requested $200,000 in IMET in
against migrants, particularly those of Haitian descent, and
each of FY2019 and FY2020.
stated that many persons of Haitian origin live in
shantytowns with limited sewage and garbage services, law
The Bahamas also receives U.S. assistance under the
enforcement, or other infrastructure.
Caribbean Basin Security Initiative (CBSI), a regional
program begun in FY2010 that focuses on advancing
U.S.-Bahamian Relations
citizen security and reducing illicit trafficking. From
The United States enjoys close economic linkages and
FY2010 to FY2018, the Bahamas was allocated almost $35
cooperative relations with the Bahamas, with the nearest
million in assistance under the CBSI, with $2.4 million for
Bahamian island, Bimini, just 45 miles from Florida. A
FY2017 and $5.1 million for FY2018. (For more on the
majority of the estimated 5.5 million tourists visiting the
CBSI, see CRS In Focus IF10789, Caribbean Basin
Bahamas are from the United States, according to the State
Security Initiative.)
Department, highlighting the dependency of the tourism
sector on U.S. economic conditions. Most of the country’s
Among other aspects of bilateral cooperation, CBP
trade is also with the United States. Because the Bahamas
maintains preclearance facilities at airports in Nassau and
has a largely service-based economy, the United States
Freeport for those traveling to the United States. The port of
historically has run a large merchandise trade surplus with
Freeport participates in the Container Security Initiative, a
the country. According to Commerce Department statistics,
CBP-run program that uses a security regime to ensure that
imports from the Bahamas amounted to $445 million in
all containers that pose a potential risk for terrorism are
2018, whereas U.S. exports to the Bahamas totaled almost
identified and inspected before they are placed on vessels
$3 billion (with fuel oil accounting for 38%).
destined for the United States. The port also participates in
the Megaports Initiative run by the Department of Energy’s
Because the Bahamas is a major transit country for illicit
National Nuclear Security Administration, which involves
drugs bound for the United States and other markets—
the use of radiation detection equipment to deter, detect,
largely marijuana from Jamaica and cocaine from South
and interdict illicit trafficking in nuclear and radioactive
America—cooperation on antidrug efforts has been a
materials. According to the State Department, the United
central component of bilateral relations. U.S. agencies such
States and the Bahamas actively cooperate on civil aviation,
as the Coast Guard, the Drug Enforcement Administration
marine research, meteorology, and agricultural issues, as
(DEA), and the Department of Homeland Security’s
well. The U.S. Navy also operates an underwater research
Customs and Border Protection (CBP) assist the country in
facility, the Atlantic Undersea Test and Evaluation Center
drug interdiction efforts, and the Royal Bahamas Police
(AUTEC), on Andros Island.
Force cooperates closely with U.S. law enforcement.
Hurricane Dorian
The Bahamas participates actively in Operation Bahamas,
In early September 2019, Hurricane Dorian caused
Turks and Caicos (OPBAT), a combined Coast Guard,
widespread devastation to the Bahamian islands of Grand
DEA, and government of Bahamas partnership to combat
Bahama and Abaco in the northwestern Bahamas. As of
drug smuggling to and from the Bahamas. According to the
October 15, 2019, according to the Royal Bahamas Police
State Department’s 2019 International Narcotics Control
Force, the official death toll was 64. This figure is expected
Strategy Report (INCSR), coordinated U.S.-Bahamian
to rise, since several hundred people remain missing.
operations during the first 10 months of 2018 led to 203
USAID took the lead in coordinating the U.S. government
arrests, the seizure of about 176 kilograms of cocaine and
response. As of September 30, 2019, the United States had
5.66 metric tons of marijuana, and the eradication of 2,520
provided almost $34 million in humanitarian assistance.
cannabis plants.
Some Members of Congress have called for U.S. support
for longer-term rebuilding efforts; H.Res. 562 would call
The State Department’s 2019 INCSR notes that drug
for robust U.S. support for recovery and long-term
traffickers and other criminal organizations take advantage
reconstruction and resilience needs in the Bahamas. Some
of international business companies and offshore banks
Members also have introduced legislation (H.R. 4272, H.R.
registered in the Bahamas to launder money. The State
4303, and S. 2478) to provide Temporary Protected Status
Department maintains that the Bahamas took significant
to Bahamian nationals.
steps in 2018 toward strengthening its anti-money
laundering regime but also recommended increased efforts
Also see CRS Insight IN11171, Bahamas: Response to
to supervise nonbank financial institutions and provide
Hurricane Dorian, and CRS Insight IN11166, Immigration
timely access to beneficial ownership information.
Relief Options for Bahamians After Hurricane Dorian.
U.S. bilateral aid to the Bahamas amounted to almost $1.9
Mark P. Sullivan, Specialist in Latin American Affairs
million in FY2017 (latest full year available), according to
IF10666
https://crsreports.congress.gov
The Bahamas: An Overview
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