The Cayman Islands are a British overseas territory located in
the western Caribbean Sea, comprising the islands of Grand
Cayman, Cayman Brac, and Little Cayman. It is
a global offshore financial services centre and one of the leading tourist
scuba diving destinations in the world.
History
-
The Cayman Islands were first sighted by Christopher Columbus on
10 May 1503 during his disastrous fourth and final voyage to the
New World. He named them Las Tortugas after the numerous sea turtles there. The first recorded English visitor to the islands was Sir
Francis Drake, who landed there in 1586 and named them the Cayman Islands after the Neo-Taino nations term (caiman) for crocodile (Zayas, 1914).
The first recorded permanent inhabitant of the Cayman Islands, Isaac Bodden, was born on Grand
Cayman around 1700. He was the grandson of the original settler named Bodden who was probably one of Oliver Cromwell's soldiers at the taking of Jamaica in 1655.
The islands, along with nearby Jamaica, were captured, then ceded to England in 1670 under the Treaty of Madrid. They
were governed as a single colony with Jamaica until 1962 when they became a separate British Overseas Territory and Jamaica became an independent commonwealth realm.
The island of Grand Cayman was hit by Hurricane Ivan on 11-12 September 2004, which destroyed
many buildings and damaged 70% of them. Power, water and communications were all disrupted for a period of time as Ivan was the
worst hurricane to hit the islands in 86 years. However, Grand Cayman promptly engaged in a major rebuilding process, and within
two years its infrastructure was nearly returned to pre-Ivan levels. The Cayman Islands
have the dubious honor of having experienced the most hurricane strikes in history. Due to the proximity of the islands, more
hurricane and tropical systems have affected the Cayman Islands than any other region in the Atlantic basin (brushed or hit every
2.23 years. Source: Hurricanecity.com http://www.hurricanecity.com/city/caymanislands.htm). The area is expected to be hit again this hurricane season
(2007). The Cayman Islands currently enjoy one of the highest standards of living in the Caribbean region, aided by thriving tourism and banking industries.
Geography
Map of the Cayman Islands
-
The Cayman Islands are located in the western Caribbean Sea. They are the peaks of a
massive underwater ridge, known as the Cayman Trench, standing 2,400 m (8000 feet) from the sea floor, which barely exceeds the
surface. The islands lie in the centre of the Caribbean south of Cuba and West of Jamaica. But even Grand Cayman, the largest of
the three islands, is not visible on many maps. They are situated about 480 miles
(770 km) south of Miami, 150 miles (240 km)
south of Cuba, and 180 miles (290 km) northwest of Jamaica.
Grand Cayman is by far the biggest, with an area of 76 square
miles (197 km²). The two "Sister Islands"
of Cayman Brac and Little Cayman are located about 90
miles (145 km) east of Grand Cayman and have areas of 14 square miles (36 km²) and 10 square miles (25.9 km²)
respectively.
All three islands were formed by large coral heads covering submerged ice age peaks of western extensions of the Cuban Sierra
Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac,
which rises to 140 feet (42.6 m) above
sea level, the highest point on the island.
Cayman avian fauna includes two endemic subspecies of Amazona parrots: Amazona leucocephala hesterna, or Cayman Brac
Parrot, native only to Cayman Brac, and Amazona leucocephala caymanensis or Grand
Cayman Parrot, which is native only to Grand Cayman. Another notable fauna is the endangered Blue Iguana, which is native to Grand Cayman.
Districts
Districts of the Cayman Islands
Administratively, Grand Cayman (the largest island) is divided into six districts:
- George Town (the present capital)
- East End
- North Side
- West Bay
- Bodden Town (the former capital)
- Cayman Brac and Little Cayman, combined, form the 6th district of the Sister Islands.
Demographics
-
The latest population estimate of the Cayman Islands is about 45,000 as of July 2006, representing a mix of more than 100
nationalities. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race (mostly
mixed African-European). Of the remaining 40%, about half are of European descent and half are of African descent. The islands are almost exclusively Christian, with large
number of Presbyterians and Catholics.
Caymanians enjoy one of the highest standards of living in the Caribbean. The vast majority of the population resides on Grand
Cayman. Cayman Brac is the second most populated with about 1,200 residents, followed by Little Cayman with around 200 permanent
residents. [6]
The capital and major city of the Cayman Islands is George Town, which is
located on the south west coast of Grand Cayman.
Economy
-
The economy of the Cayman Islands was once centered around turtling. However, this
industry began to disappear in the twentieth century and tourism and financial services began to become the economic mainstays
during the 1970s. The United States is the Cayman Islands' largest trading partner.
With an average income of around $42,000, Caymanians enjoy the highest standard of living in the Caribbean. According to the
CIA World Factbook, the Cayman Islands GDP per capita is the 8th highest in the
world.[7] The islands print their own currency, the Cayman Islands
Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD =
1.25 USD. Thus, the C.I. Dollar's rate of exchange with all other world countries is directly tied to the U.S. dollar's rate of
exchange with those same countries.
The government's primary source of income is indirect taxation. An import duty of 5% to
20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras and
baby formula. Duty on automobiles is charged on a sliding scale with the duty reaching
100% for expensive models (The Hummer). The government charges a flat licensing fee to financial institutions that operate in the
islands.
Tourism
Tourism accounts for 70-75% of the annual GDP of the Cayman Islands. Of the millions of tourists that visit the islands
annually, 99% visit Grand Cayman. George Town also serves as a major cruise ship port, which
brings in 4,000 to 22,000 tourists a day, five days a week, depending on the number of ships in port.
One of Grand Cayman's (GCM) main attractions is the world-famous Seven Mile Beach on which a number of the island's hotels and resorts are located. Seven
Mile Beach is regarded by many as one of the best beaches in the world. Historical sites in GCM such as Pedro St. James Castle in
BoddenTown also attract visitors. The Sister Islands - Little Cayman and Cayman Brac - also supply their own unique charm.
The Cayman Islands is regarded as one of the world's best SCUBA diving destinations
because of its crystal-clear waters and pristine walls. Cayman Brac and Little Cayman are also elite SCUBA dive destinations. There are several snorkeling locations where
tourists can swim with stingrays including the popular Stingray City, Grand Cayman. Divers find two shipwrecks
off the shores of Cayman Brac particularly interesting including the MV Keith Tibbetts.
Other Grand Cayman tourist attractions include the ironshore landscape of Hell,
the 24- acre marine theme park Boatswain's Beach, also home of the Cayman Turtle Farm, the
production of gourmet sea salt, and the Mastic Trail, a hiking
trail through the forests in the centre of the island. On Cayman Brac, a lighthouse and a few
local museums are tourist draws. Little Cayman's wildlife attracts nature lovers, especially bird watchers in search of the
island's Red-footed Booby population.
Art and Culture are other features of the Cayman Islands that attract international attention. The National Museum and
National Gallery preserve contemporary and dated art works of local and international talent. A Cultural History Exhibition is
displayed within the museum, and teaches patrons about historical customs and traditions native to the Cayman Islands. The
Gallery sponsors eight exhibitions every year and is located in the Harbour Place in George Town.
- See also: Scuba diving in the
Cayman Islands
Financial services industry
The Cayman Islands is widely recognized to be one of the world's leading offshore
financial centres.
The Cayman Islands financial services industry encompasses banking, mutual funds, captive insurance, vessel registration,
companies and partnerships, trusts, structured finance and the Cayman
Islands Stock Exchange. As of December 2005, just over 70,000 companies were incorporated on the Cayman Islands including 430 banking and
trust companies, 720 captive insurance firms and more than 7,000 funds.
A recent report released by the International Monetary Fund (IMF)
assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its anti-money laundering
regime, recognized the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative,
rule and guideline development has introduced an increasingly effective system of regulation, both formalising earlier practices
and introducing enhanced procedures," noted IMF assessors. The report
further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally
experienced and qualified workforce as well as experienced lawyers, accountants and auditors," adding that, "the overall compliance culture within
Cayman is very strong, including the compliance culture related to AML (anti-money
laundering) obligations...". The Cayman Islands had previously (briefly) appeared on the FATF Blacklist in 2000, although its listing was thought to be harsh, and was criticised at the
time.[1]
Government
-
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The Cayman Islands are currently a British overseas territory, listed by the UN Special Committee of twenty-four as one of the
last non-self governing territories. A fifteen-seat Legislative Assembly is elected
by the people every four years to handle domestic affairs. Of the elected Members of the Legislative Assembly (MLAs), five are
chosen to serve as government ministers in a cabinet headed by the governor. The head of government is the Leader of Government Business, which is currently The Honourable Kurt Tibbetts.
A Governor is appointed by the British government to represent the
monarch. The governor can exercise complete executive authority if they wish through blanket powers reserved to them in the
constitution. They must give royal assent to all legislation, which allows them the power to strike down any law the legislature
may see fit for the country. In modern times, the governor usually allows the country to be run by the cabinet, and the civil
service to be run by the Chief Secretary, who is the Acting Governor when the Governor is not able to discharge his usual duties
for one reason or another. The current governor of the Cayman Islands is Stuart Jack and the
current Chief Secretary is The Honourable George McCarthy, OBE, JP.
Following the collapse of the Euro Bank Corporation in 2003, constitutional modernisation has
become the predominant issue in the Islands' politics. The prosecution in the related trial was forced to reveal that
MI6, on behalf of the British government and with the consent of the
Governor, had planted moles (and used wire taps) throughout the Islands' banking industry. This caused the trial's collapse and
subsequent release of those charged with wrongdoing. The only mole known at the time was allowed to leave the country, never to
answer for what he (or the United Kingdom) had done. This infuriated the elected members of the legislative assembly as they
maintained that the governor and the United Kingdom had put into question Cayman's reputation as a tightly regulated offshore
jurisdiction. Some saw this as the United Kingdom meddling in the territory's affairs to benefit itself (and the EU), at the
expense of the islands' economy. However others see this as the EU's decission and that Britain had no say in the matter.
Constitutional talks however went on hold following Hurricane Ivan in 2004. Subsequently, in May 2005, the ruling UDP was ousted by the PPM, which have
slowed the constitutional modernisation process to a standstill. Among the points of contention is whether or not the new
constitution should include a bill-of-rights.
Taxation
Caymanians and Caymanian companies are not subject to any form of direct taxation. However, an import tax of between 5% and
20% is levied on almost all imported goods.
Education
The Cayman Islands Education Council operates state funded schools on the island, with a Caribbean-oriented education
curriculum. Caymanian children are entitled to free primary and secondary education. Various churches and private foundations
operate several private schools offering curricula derived from American and UK education systems from kindergarten to twelfth
grade. Grand Cayman is also home to St. Matthew's
University, which includes a medical school and a school of veterinary medicine.
The Cayman Islands Law School (CILS), a
branch of the University of Liverpool in the UK, is also based on Grand Cayman. Situated in George Town, the law school has been
in operation since 1982. As taken from the student handbook, "The Law School provides tuition for both full and part-time
programmes leading to the Bachelor of Law (Honours) Degree of the University of Liverpool and the qualification of
Attorney-at-Law of the Cayman Islands, following successful completion of the postgraduate Professional Practicum Course
(PPC)
Grand Cayman is home to University College of the Cayman
Islands, the only government run University on the island. The University College is located at 168 Olympic Way in
Georgetown, Grand Cayman. The International College of the
Cayman Islands which is located in Newlands about seven miles east of George Town. The college was established in 1970 and
offers Associate's, Bachelor's and Post Graduate degree programs.
Health Care
The Cayman Islands have a modern health care system. There are two hospitals in George Town, the government run George Town
Hospital and the smaller, private Chrissie Tomlinson Memorial Hospital. Additionally, Faith Hospital is a small (eighteen-bed)
facility on Cayman Brac. The Government maintains a satellite clinic on Little Cayman.
Health insurance is handled by private insurers and a government-run company (CINICO). There is no universal health coverage
as in the UK. All employers are required under Law to provide Health Insurance for their employees (although the employee may be
required to contribute 50% of the premium). Full time employees also contribute USD 10 every month to the "Indigent Fund" which
helps cover care for the unemployed, elderly etc.
Currently the islands lack facilities for cardiac catheterization, though
many feel the population is large enough to support the procedure. Various attempts to establish a cath lab in George Town
Hospital have stalled out. Similarly, the Caymans have lacked an MRI since
one was destroyed during Hurricane Ivan, however one has since been installed at the Chrissie Tomlinson Memorial Hospital and has
been in operation since July 2007.
Work permits
In order to work in the Cayman Islands as a non-citizen, a work permit is required. This involves passing a police background
check and a health check. A prospective worker will not be granted a permit if certain medical conditions are present. Nor are
work permits issued after age 60.
The Cayman Islands presently imposes a controversial "rollover" policy in relation to expatriate workers who require a work permit. Non-Caymanians are only permitted to reside and work within the
Territory for a maximum of seven years (non-renewable) unless they satisfy the criteria of key employees. The policy has been the
subject of some controversy within the press,[2] and
concerns have been expressed that in the long term, the policy may damage the pre-eminence of the Cayman Islands as an
offshore financial centre by making it difficult to recruit and retain
experienced staff from onshore financial centres. Government employees are no longer exempt from this "rollover" policy according
to this report in a local newspaper [8]. The Governor has decided to use his constitutional powers, which give him absolute
control for the disposition of civil service employees, to determine which expatriate civil
servants are dismissed after seven years service and which are not.
This policy is enshrined in the Immigration Law (2003 revision), written by the UDP government, and subsequently enforced by
the PPM government. Both governments agree to the term limits on foreign workers, and the majority of Caymanians also agree it is
necessary to protect local culture, and heritage from being eroded by a large number of foreigners gaining
residency/citizenshp. [9]
Military
-
The defence of the Cayman Islands is the responsibility of the United Kingdom. The
Islands have their own police force, the Royal Cayman Islands Police Service. Regular off-shore marine patrols are conducted by the RCIP and Grand Cayman is a port of call
for the United States Coast Guard.
Foreign relations
-
The foreign relations of the Cayman Islands are largely managed from the United
Kingdom, as the islands remain an overseas territory of the UK. However, the Government of the Cayman Islands often
resolves important issues with foreign governments alone, without intervention from Britain. Although in its early days, the
Cayman Islands' most important relationships were with Britain and Jamaica, in recent years,
this has shifted, and they now rely more so on the United States.
Though the Cayman Islands are involved in no major international disputes, they have come under some criticism due to the use
of their territory for narcotics trafficking and money laundering. In an attempt to
address this, the Government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States, in order to reduce the use
of their facilities associated with these activities. In more recent years, they have stepped up the fight against money
laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring
banks to cooperate with foreign investigators.
Due to their status as an overseas territory of the UK, the Cayman Islands have no representation either on the
United Nations, or in most other international organisations. However, the Cayman Islands
still participates in some international organisations, being a full member of the Central Development
Bank, International Olympic Committee and FIFA, an associate member of Caricom and UNESCO, and a member of a sub-bureau of Interpol.
See also
Footnotes
- ^ The FATF's 2000 report itself acknowledged that "the Cayman Islands has
been a leader in developing anti-money laundering programmes throughout the Caribbean region. It has served as president of the
CFATF, and it has provided substantial assistance to neighbouring states in the region. It has demonstrated co-operation on
criminal law enforcement matters, and uncovered several serious cases of fraud and money laundering otherwise unknown to
authorities in FATF member states." Inferences were drawn that the list had been drawn up as an attack on tax havens, and that the inclusion of a leading offshore financial centre was necessary for political
purposes.
- ^ Law firms have been particularly upset by the recruitment difficulties that
it has caused. [1] Other less well remunerated employment sectors have been affected as
well. [2] Concerns about safety have been expressed by diving instructors [3] and realtors
have also expressed concerns. [4] Others support the rollover as necessary to protect Caymanian identity in the face of large immigration of
expatriate workers. [5]
References
- Cayman Islands. 2005 CIA World Factbook. Retrieved on 4 July, 2005. Originally from the CIA World Factbook 2000.
- Non-Self-Governing
Territories listed by General Assembly in 2002. United Nations Special Committee of 24 on Decolonization. Retrieved on
4 July, 2005.
- Michael Craton and the New History Committee (2003). Founded upon the Seas: A
History of the Cayman Islands and Their People. Ian Randle Publishers, Kingston, Jamaica. ISBN
0-9729358-3-5.
- Roberts, H. H. (1994). Reefs and lagoons of Grand Cayman (in "Monographiae
biologicae", ed. Brunt, MA and Davies, JE). Kluwer Academic Publishers, Boston, MA.. ISBN 0-7923-2462-5.
- Alfredo Zayas y Alfonso, (1914). Lexografía Antillana. El Siglo XX Press,
Havana.
External links