Updated April 13, 2022
The Bahamas: An Overview
Political and Economic Environment
from the United States (see below), and has procured
The Bahamas, a Caribbean nation of some 700 islands off
vaccines through the COVID-19 Vaccines Global Access
the southeast coast of the United States, has been a stable
(COVAX) Facility, a mechanism developed by global
parliamentary democracy since its independence from the
health organizations to facilitate equitable vaccine
United Kingdom (UK) in 1973. The country’s bicameral
distribution.
legislature has a 39-seat House of Assembly directly elected
for five-year terms and a 16-member appointed Senate.
Figure 1. Map of the Bahamas
Since independence, two political parties have dominated
elections, 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 over the next decade until
2002. Since then, the two parties have alternated winning
national elections.
Current Prime Minister Philip Davis led the PLP to a
landslide electoral victory in September 2021, winning 32
House of Assembly seats; the FNM, now led by Michael
Pintard, who serves as leader of the opposition, won 7 seats.
The difficult economic situation, brought about by the
damage caused by Hurricane Dorian in 2019 and, beginning
in 2020, the Coronavirus Disease 2019 (COVID-19)

pandemic, was a key factor that led to the PLP’s win in
Source: CRS.
2021. National elections are next due by 2026.

The Bahamas at a Glance
Even before the start of the pandemic, the Bahamian
economy had been hit hard when Hurricane Dorian caused
Population:
389,000 (2021, IMF est.)
widespread damage to the northwestern Bahamian islands
Area (square miles):
5,359, slightly smaller than
of Abaco and Grand Bahama in September 2019. An Inter-
Connecticut
American Development Bank-led assessment estimated
$3.4 billion in damages and losses. The COVID-19
GDP (current prices):
$10.6 bil ion (2021 est., IMF)
pandemic further damaged the Bahamas’ tourist-based
GDP Growth
2020, -14.5% est.; 2021, 5.6%
economy, resulting in an economic contraction of almost
(constant prices):
est.; 2022, 6.0% projected (IMF)
15% in 2020, one of the most severe in the Caribbean,
according to the International Monetary Fund (IMF). The
Per Capita GDP
$27,437 (2021 est., IMF)
economy began to recover in 2021 with 5.6% growth and
(current prices):
projected growth of 6.0% in 2022, although a full recovery
Life Expectancy:
73.9 years (2019, WB)
is not expected before the end of 2023.
Sources: International Monetary Fund (IMF), “World Economic
As of April 12, 2022, the Bahamas reported 789 deaths
Outlook Database,” October 2021, and “Staff Concluding Statement
from the COVID-19 virus since the pandemic began,
of the 2022 Article IV Mission,” March 2, 2022; World Bank (WB).
equivalent to a mortality rate of 202 per 100,000 people, the
12th highest rate in Latin America and the Caribbean,
Approximately 40% of the Bahamian population has been
according to Johns Hopkins University statistics. The
fully vaccinated to date. Vaccine hesitancy has been a
country has received vaccine donations, most significantly
significant challenge, making it unlikely for the country to
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The Bahamas: An Overview
reach the World Health Organization’s goal of having 70%
resources in its courts to meet caseload demand and
of a country’s population fully vaccinated by mid-2022.
increase the speed of judicial operations.
Success in vaccinating the population will be a major factor
in recovery of the tourism-based economy.
The 2022 INCSR notes that, as an international financial
center, the Bahamas is vulnerable to money laundering
In 2020, the Central Bank of the Bahamas launched a
(financial services accounts for an estimated 20% of the
digital currency known as the Sand Dollar, a digital version
country’s gross domestic product). The report noted that the
of the Bahamian dollar, which is pegged one-to-one to the
Bahamas enacted legislation in 2020 and 2021 to enhance
U.S. dollar. The action was taken in the aftermath of
its anti-money laundering/combating the financing of
Hurricane Dorian as a way of ensuring that citizens have
terrorism (AML/CFT) regime and increased AML
access to needed currency and can receive aid more quickly
resources; it also stated that greater focus is needed on
when banks and ATMS are damaged by natural disasters.
small money transfers and the online gaming sector. In
According to the IMF, the sand dollar has the potential to
2020, the multilateral Financial Action Task Force removed
help foster financial inclusion and payment system
the Bahamas from its grey list of countries with deficiencies
resilience in the event of a natural disaster. The IMF also
in their AML standards. In January 2022, the European
recommended that the Central Bank maintain careful
Union delisted the Bahamas from its AML blacklist.
oversight of the initiative to safeguard financial integrity.
U.S. bilateral assistance to the Bahamas amounted to $28.6
Some 30,000-60,000 Haitians or persons of Haitian descent
million in FY2019 and $10.3 million in FY2020 from all
live in the Bahamas, according to estimates cited in the
U.S. agencies (https://foreignassistance.gov/cd/bahamas/,
State Department’s Country Reports on Human Rights
latest full year available). The U.S. Agency for
Practices for 2021. The report noted many persons of
International Development implemented more than two-
Haitian origin lived in informal settlements with limited
thirds of the FY2019 aid and almost half of the FY2020
government services, although Haitian children generally
assistance to support recovery in the aftermath of Hurricane
had access to education and social services. The report
Dorian. DOD implemented much of the balance, for
noted that ethnic tensions and inequities persisted.
equipment and training to help increase maritime and
border security and improve interdiction capabilities.
U.S.-Bahamian Relations
The United States enjoys close economic linkages and
Since FY2010, the Bahamas has received support under the
cooperative relations with the Bahamas, with the nearest
Caribbean Basin Security Initiative, a regional program that
Bahamian island, Bimini, just 45 miles from Florida. A
focuses on advancing citizen security and reducing illicit
majority of tourists visiting the Bahamas are from the
trafficking. Support has included the purchase and repair of
United States, according to the State Department,
maritime interdiction patrol asses; training and equipment
highlighting the dependency of the tourism sector on U.S.
for OPBAT’s counternarcotics operations; and technical
economic conditions. Because the Bahamas has a services-
assistance, equipment, and training to strengthen Bahamian
based economy, the United States historically has run a
law enforcement institutions.
large merchandise trade surplus. According to the
Commerce Department, U.S. imports from the Bahamas
To date, the United States has donated almost 296,000
amounted to $450 million in 2021, whereas U.S. exports
COVID-19 vaccine doses to the Bahamas out of a pledged
totaled $2.9 billion, with 36% in oil and gas products.
commitment of 379,000. Other COVID-19-related
assistance has included the donation of health equipment
Because the Bahamas is a major transit country for illicit
and Rhode Island National Guard aircraft support for the
drugs bound for the United States and other markets—
distribution of COVID-19 vaccine doses to several
largely marijuana from Jamaica and cocaine from South
Bahamian islands.
America—cooperation on anti-drug efforts has been a
central component of bilateral relations. U.S. agencies—
Among other aspects of bilateral cooperation, CBP
such as the Coast Guard, the Drug Enforcement
maintains preclearance facilities at airports in Nassau and
Administration (DEA), the Department of Homeland
Freeport for those traveling to the United States. In
Security’s Customs and Border Protection (CBP), and the
February 2022, the Transportation Security Administration
Department of Defense (DOD)—assist the country in drug
established its expedited security screening process,
interdiction efforts and cooperate closely with the Royal
PreCheck, at the Nassau airport, the first established outside
Bahamas Police Force and the Royal Bahamas Defense
of the United States. The port of Freeport participates in the
Force. The Bahamas participates actively in Operation
Container Security Initiative, a CBP-run program that uses
Bahamas, Turks and Caicos (OPBAT), a combined Coast
a security regime to ensure that all containers that pose a
Guard, DEA, and government of Bahamas partnership to
potential risk for terrorism are identified and inspected
combat drug smuggling to and from the Bahamas.
before they are placed on vessels destined for the United
States. The U.S. Navy also operates an underwater research
According to the State Department’s 2022 International
facility, the Atlantic Undersea Test and Evaluation Center
Narcotics Control Strategy Report (INCSR), further
(AUTEC), on Andros Island.
progress against drug trafficking will significantly depend
on Bahamian government efforts to combat corruption,
Mark P. Sullivan, Specialist in Latin American Affairs
increase extraditions, and strengthen prosecutions. It noted
that the United States encourages the Bahamas to invest
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The Bahamas: An Overview


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