The country outline for the British Virgin Islands is aimed to offer an overview of the BVI's social and economic situation. It was prepared using inputs from the Caribbean Development Bank Annual Economic Report for the year 2003-2004, the CIA fact-book, World Bank Discussion Papers available online, and a Country Poverty Assessment of the BVI commissioned by Caribbean Development Bank (CDB) and Government of the BVI.

The British Virgin Islands are located 140 miles north-west of St. Kitts and straddle latitude  18 25'N and longitude 64 30W. The cluster of islands that comprises the Virgin Islands in effect forms a connecting link between the Greater Antilles and the Lesser Antilles. The British Virgin Islands have a total surface area of 59 square miles. The island group consists of some 40 islands, cays, islets and rocks. The largest and most populated island is Tortola, where the capital, Road Town is located. There is very little surface water since there are no perennial streams. Traditionally, water has been secured from wells dug in the alluvial valleys and ghut areas of Tortolla and Virgin Gorda in particular. Other main catchment areas are provided through cisterns which are mandated by the building code.

The population of the BVI is currently under 200,000[1] compared with around 160,000 in 1991. This represents an increase of about 25% implying an average growth rate of 2.1% that is relatively high by Caribbean standards. The population of the BVI remains heavily concentrated on Tortola despite the faster growth experienced, since 1991, by Virgin Gorda and the other islands.

I.SOCIAL ANALYSIS

a. Health

The Ministry of Health and Welfare has responsibility for public health, hospital services, an institutional home care, drug and rehabilitation centre and oversees the National Drug Advisory Council. The public sector health care services consist of 13 health clinics and two satellite clinics. The general health status in the BVI is good, infant and related mortality rates are low, the nutritional status of the population is also considered to be good however dietary habits are contributing to increasing problems of diabetes and hypertension such that these diseases are considered to account for 70% of all deaths. Major causes of mortality and morbidity are cited as circulatory disorders, diabetics mellitus, malignment neoplasms and mental ill health and substance abuse. Over the years the diseases have changed from communicable diseases that could be prevented by improvements to water supply to conditions that necessitate the adoption of healthy lifestyles. In general the health statistics are indicators are similar to those experienced in many westernised countries in that the incidence of malnutrition, communicable diseases and waterborne infections are low while the incidence of diabetes, obesity and hypertension are causing concern along with substance abuse and the growing threat of HIV/AIDS and other STDs.

b. Education

The Department of Education is tasked with the Government's education objective which is to ''..develop people's potential to the fullest, stimulate creative and innovative solutions to problem-solving and prepare citizens for successful living in a technological age'. Secondary education is not yet comprehensive, there are ongoing concerns that primary school retention rates are high given students cannot transfer to secondary education until they pass the exam. In 2000 around 19% of the total number of pupils failed the Primary V exam, i.e. the exam that streamlines primary school children into secondary school. The only secondary college located in the B.V.I are the H.L.  Stoutt College which has been operating since 1991, courses are limited to vocational and technical training, liberal arts and management with qualifications up to associate degree level.

c. Poverty

At present, poverty in the BVI is low by Caribbean standards, around 16% of households and 22% of the population. Trends in the level of poverty in the BVI cannot be ascertained owing to the absence of comparable data.  With few exceptions the poor in BVI do not exhibit the characteristics that are traditionally associated with poverty. Their housing and basic facilities such as water and electricity, school attendance and health levels are little different from those of not poor households. Many poor households also own assets which, in many places, would be considered to be symbols of affluence: vehicles, telephones, washing machines, cable TV, refrigerators and stereo, 20% of poor households have cell phones and over a third have computers. Almost 30% of poor households also own some land which they consider to be developable thereby representing an asset that could provide an additional source of funds. The poor in the BVI are working; over 80% of poor households have at least one person working; just under half have 2 or more.

II. ECONOMIC PERFORMANCE

To some degree, the last decade was characterised by economic expansion and has generated budget surpluses averaging 3% of GDP (up to 1999). For the period 2000 ' 2003 the deficit has been averaging -2.64% of GDP. Government's fiscal policy has contributed to the country high savings rate. Domestic savings rose from 9% of GDP in 1983 to an estimated 48% in 2003. The British Virgin Islands high domestic savings has financed the highest investment rates in the region while incurring one of smallest foreign debt levels. The high domestic savings rate have boosted investors' confidence and provided some armour against economic shocks. Government has also been able to focus on ensuring price stability and confidence in the financial system.  it should be noted that banking and port services have contributed to the British Virgin Islands healthy overall fiscal position during most of the last two decades.

In terms of the annual debt-servicing obligation for 2003, this was approximately three million, eight hundred and eighty-five thousand, five hundred ($3,885,500) dollars.

The financial services sector is of great importance to the economy. It accounts for almost 50% of the country's revenue.  This sector is crucial in maintaining a positive service trade balance on the balance of trade account.

Employment stands at approximately 95% with the government employing some 30% of the labour force.  It is to be noted that as high as 43% of the country's labour force are immigrants from the Caribbean Islands.

Off-shore financial services are world class.  Currently there are some 470,000 international businesses registered in the BVI.  This sector is expected to expand with three new complementary markets being introduced.  These are: Mutual Funds, Insurance and Yacht Registration.

III. KEY CHALLENGES

• To date Government is yet to respond with a comprehensive and co-ordinated strategy to overcome the global challenges to offshore financial services and the impact of terrorism on tourist demand
• To remain competitive in the new global economy, the British Virgin Islands has recognized the continued need for inward investment, attracting foreign high-skilled workers and further accelerated development of human resources. It is absolutely necessary for a shift to a knowledge-based economy
• The BVI is strategically positioned and is used as a transhipment point for South American narcotics destined for the US and Europe; large offshore financial center also makes it vulnerable to money laundering
• There are limited natural fresh water resources, except for a few seasonal streams and springs on Tortola, most of the islands' water supply comes from wells and rainwater catchments

The following issues were highlighted in the BVI Budget Address for 2004:

• Quality health services must become more accessible
• More attention must be  paid to education and improving school facilities and curriculum development
• Sewerage treatment  and disposal systems need improvement
• The courts must be well equipped to effectively perform their role as one of our indispensable democratic institutions and more specifically there is need for a  commercial court in the BVI
• There needs to be reform of the Police Service

[1] This estimate is based on the Visitation Records from the 2001 Census

Related Links

Millennium Development Goals Organization of Eastern Carribean States UN Corporate UNDP Headquarters