Turks and Caicos Islands

Politics:

• Analysis

  Turks and Caicos Islands politics: Paradise interrupted

  The Turks and Caicos Islands: Paradise interrupted

  A troubled Caribbean territory tries to turn over a new leaf

  JOB description: Her Majesty's representative in prosperous Caribbean islands. Enticing? Perhaps not. The Turks and Caicos Islands, one of Britain's five remaining Caribbean colonies, have brought more headaches than bliss to recent governors--including Ric Todd, their current overseer who, following an election this month, has returned the islands to self-rule after three years of direct administration.

  The new premier, Rufus Ewing, honoured the local tradition of pillorying the governor, talking of "subjugation" and "enslavement" during the campaign. The opposition leader, Sharlene Cartwright-Robinson, claimed that during the democratic hiatus Mr Todd disregarded the civil service, political leaders and the clergy. Evangelical pastors complain about new equality legislation that they say protects gay rights. A value-added tax arouses the fury of business.

  Direct rule--the second spell in little more than 20 years--began in 2009 when the former premier, Michael Misick, who has been dodging an Interpol arrest notice, was suspended, along with his cabinet and elected assembly, after an inquiry by a retired British judge, Sir Robin Auld. Sir Robin found a "high probability of systemic corruption". He criticised the "Hollywood lifestyle" of Mr Misick and his (now ex-) wife, the American actress LisaRaye McCoy-Misick, who took trips to Los Angeles, Switzerland, Milan and Africa in a leased jet. Five former ministers have been charged.

  Things might be different this time. The Progressive National Party (PNP), led now by Mr Ewing and previously by Mr Misick, won eight of the 15 seats up for grabs at the election. But the governor appoints two non-party representatives, meaning the PNP lacks an overall majority. (Of the islands' 31,500 inhabitants, just 7,377 have the right to vote. It still took four days to declare a final result.)

  Moreover, a new constitution promises tight controls on financial management, procurement and sales of crown land. Both the PNP and the opposition agreed to the new dispensation last year; naturally, both now rail against it. The governor also chairs cabinet meetings, and has a last-ditch veto. So there is reason to hope that the islands can avoid slipping back into the mire.

  In fact the link with the mother country is weak as well as fractious. The islanders drive on the left and can live in Britain. But the currency, most of the tourists and television programmes are American. Britain would happily pull out if islanders voted for independence, but they seem disinclined to, perhaps because they see Britain as a referee, safety net and bolthole. For the time being, Mr Todd and Mr Ewing remain oddly but firmly coupled.

  November 24, 2012

• Background

  Turks and Caicos Islands: Political forces

  The two main parties, the PDM and PNP, were formed in 1975 and 1980 respectively. A third party, the United Democratic Party (UDP), was set up in 1993 by a former PDM deputy leader, Wendal Swann. Both the 1999 and 2003 elections were dominated by the PDM and the PNP. In 1999 the PDM won its first seat in the former PNP stronghold of South Caicos, but it failed to retain the seat in the 2003 election.

  July 02, 2007

• Structure

  Turks and Caicos Islands: Political structure

  Official name

  Turks and Caicos Islands

  Form of state

  Representative government; UK Overseas Territory

  Head of state

  Queen Elizabeth II, represented by a governor

  The executive

  Cabinet consists of the governor, the premier, six ministers appointed by the governor from among the members of the House of Assembly, and the attorney general

  Legislature

  (Suspended) unicameral House of Assembly composed of 15 elected members, the three ex officio members of the Executive Council and three nominated members

  Legal system

  UK-style courts with final appeal to the UK Privy Council

  Elections

  General election February 9th 2007; next general election November 9th, 2012

  Government

  The governor currently has executive and ministerial powers

  Main political organisations

  Progressive National Party (PNP); People's Democratic Movement (PDM)

  Governor: Damian Roderic Todd

  Direct rule by the British government

  On August 14th 2009 the UK government partially suspended the constitution of the Turks and Caicos Islands, dissolving the House of Assembly and removing ministerial powers. Full executive and ministerial power was passed to the UK-appointed governor. The suspension of self-governance was initially expected to last for a two-year period, but this was extended in September 2010. Elections have now been announced for November 9th 2012.

  October 10, 2012

Economy:

• Background

  Turks and Caicos Islands: Population

  The 2001 census put the population of the islands at 20,014. There are an estimated 8,700 living on Providenciales (including West Caicos), 5,900 on Grand Turk, 2,000 on North Caicos, and 1,900 on South and West Caicos. In 2003 the population was estimated at 22,100, although this does not take account of migrant workers. In 2000 there were an estimated 5,000-6,000 immigrants from Haiti and the Dominican Republic, who work mainly in tourism and construction. No more recent figures are available, but illegal Haitian immigration has become a sensitive domestic political issue. Historically, there has been a flow of emigration from the islands, mainly to the US and the Bahamas, although economic growth in Providenciales resulted in a net return during the 1990s. Since the mid-1980s net migration within the islands has been towards Providenciales.

  July 02, 2007

• Structure

  Turks and Caicos Islands: Economic structure

  Economic structure: Annual indicators

  	2008b	2009b	2010b	2011b	2012b
  Population ('000)	36.6	38.4	40.4	42.4	44.5
  GDP at market prices (US$ m)	865.1	709.2	729.9	784.2	792.8
  Real GDP growth (%)	2.9	-19.6	1.0	4.1	1.1
  Average inflation (%)	6.2	1.5	2.0	1.9	3.2
  Merchandise exports (US$ m; fob)	24.8a	20.8	15.7	16.1	16.3
  Merchandise imports (US$ m; cif)	591.3a	520.5	302.0	355.0	358.6
  Net services (US$ m)	135.0	105.0	105.0	105.0	110.0
  Stopover tourist arrivals ('000)	272.8a	231.9	215.0	220.0	250.0
  The currency is the US dollar. a Actual. b Economist Intelligence Unit estimate.

  Download the numbers in Excel

  Origins of gross domestic product, 2007	% of total	Components of gross domestic product, 2007	% of total
  Hotels & restaurants	29.2	Consumption	72.6
  Financial intermediation	11.1	Gross domestic investment	47.4
  Construction	11.5	Exports of goods & services	63.1
  Transport & communication	8.3	Imports of goods & services	-83.0
  Real estate	7.9
  Public administration	5.3
  Utilities	4.0
  Agriculture & fishing	0.9
  Manufacturing	1.6
  Mining & quarrying	0.9
  Other services	19.3

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  Download text file (csv format)

  October 10, 2012

• Outlook

  Turks and Caicos Islands: Country outlook

  Turks and Caicos Islands: Country outlook

  FROM THE ECONOMIST INTELLIGENCE UNIT

  OVERVIEW: On August 14th 2009 the UK government partially suspended the constitution of the Turks and Caicos Islands (TCI). Full executive and ministerial power rests with the UK-appointed governor, Damian Roderic Todd, with the suspension of self-governance extended indefinitely in September 2010. New and amended legislation for the TCI has been proposed to address deficiencies in the legal framework. An international arrest warrant was issued on March 19th for a former premier, Michael Misick (2003-09). In the first nine months of fiscal year 2011/12 (April-March), the fiscal accounts recorded a current deficit of US$19.9m.

  DOMESTIC POLITICS: An EU-funded white paper summarising proposed new and amended legislation for the TCI was released for public consultation in late February. The proposals will lead to new laws to address deficiencies in the legal framework-one of the requirements set by the UK for returning government to locally elected officials (a move that is unlikely to take place before 2013). It will also ensure that laws conform to international treaties and conventions. The project's stated goal is to review more than 100 pieces of legislation to produce around 40 "legislative instruments" intended to raise public-sector management standards and restore economic viability and good governance to the TCI. Laws governing the public service will correct weak managerial structures and disciplinary procedures, the white paper says. Labour and industrial relations law also need substantial reform because weaknesses and contradictions in current law result in many labour lawsuits. Other legislative areas set to undergo a major overhaul include: immigration and human-trafficking; regulation of crown land; an improved land registry; juvenile justice, the rights of the child and adoption; family law and domestic violence law. Improvements to environmental law, including public health, agriculture and aquaculture, are also under review. The white paper suggests the creation of an Environmental Protection Agency and an upgrade of laws involving health issues such as food safety and solid waste management.

  INTERNATIONAL RELATIONS: An international arrest warrant was issued on March 19th for Mr Misick. The British-government-appointed Special Investigation and Prosecution Team (SIPT) announced the warrant after Mr Misick repeatedly failed to submit himself to questioning with respect to allegations of corruption and money-laundering during his time in office. A 2009 UK Commission of Inquiry had found evidence of widespread corruption or malfeasance in office by Mr Misick, some of his fellow ministers and others, which led to the suspension of the TCI's constitution and government. The SIPT has so far charged 13 people with corruption. In response to the announcement, Mr Misick issued a statement saying that he is seeking asylum in an unnamed country (thought to be the Dominican Republic), owing to "political persecution" of those that supported him and his Progressive National Party. Mr Misick claims that he is unable to obtain a fair trial while elected government is suspended.

  POLICY TRENDS: Fiscal consolidation is not taking place as quickly as projected. In the first nine months of 2011/12, the fiscal accounts recorded a current deficit of US$19.9m. Although this was down by US$33.5m on the year-earlier period, it was US$7.4m higher than projected in the budget. Government revenue for the first nine months rose by 39% year on year to US$119m, slightly ahead of budget projections. Import duties, which account for nearly one-third of total revenue, rose by 9% year on year, to US$35m, but this was still 2.1% below budget. However, above budget customs processing fees and accommodation tax earnings helped to offset underperformance on import duties. The former came in 9% above budget in the period; the latter grew by an impressive 35%, reflecting stronger tourist arrivals, and came in 26% above budget. But offsetting this good performance, total expenditure of US$138.4m came in 7.5% above budget in April-December. Spending on personnel, which accounts for around 35% of total spending, was down by 5% year on year and close to the budget target. Official projections for the full fiscal year suggest a widening of the fiscal deficit to around US$38m for 2011/12, including an additional US$14m of unbudgeted healthcare costs.

  ECONOMIC GROWTH: The 2012/13 budget-setting process has suffered a two-month delay, reflecting the time taken to appoint new permanent secretaries and carry out a restructuring of the five main ministries. Budget projections are also being adjusted for costs and savings arising from a civil service voluntary severance plan. The TCI administration will send a draft budget to the British government for approval by around April 19th. The TCI Advisory Council and TCI Consultative Forum (both bodies created to provide channels of consultation in the absence of a sitting government) will consider the budget in May with a target date for approval by the governor of May 23rd. Despite the widening of the deficit in 2011/12, authorities anticipate improvements in 2012/13 on the back of continued revenue growth from the tourism sector, tax enforcement efforts and improved collection of immigration and customs duties. A new value-added tax will also take effect from April 2013 and as such no other new tax measures are being contemplated in the upcoming budget. Achieving a budget surplus in 2012/13 is one of the milestones set by the UK for returning control of the country to elected officials. It was also a requirement for the UK's US$260m loan guarantee that is being used to meet existing debt repayments and finance the budget deficit.

  EXTERNAL ACCOUNT: Rising historic liabilities are proving a major challenge to fiscal consolidation. The biggest drain on the government accounts continues to be healthcare costs, which have soared since the National Health Insurance Programme was created by the former elected government. A large proportion of these costs relate to overseas medical expenses from a former Treatment Abroad Programme, which is still subject to legal action.

  April 03, 2012

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Country Briefing

Land area

948 sq km

Population

36,605 (2008, official estimate)

Climate

Sub-tropical

Weather in Grand Turk (altitude 3 metres)

Hottest month, August, 26-32°C; coldest months, January-February, 21-27°C (average daily minimum and maximum); driest month, March, 29 mm average rainfall; wettest month, October, 114 mm average rainfall

Language

English

Measures

Imperial system

Fiscal year

April-March

Currency

US dollar

Time

5 hours behind GMT

Public holidays

January 1st; Good Friday; Easter Monday; May 26th (Commonwealth Day); third Monday in June (sovereign's official birthday); August 1st (Emancipation Day); August 9th; October 13th (Columbus Day); October 24th (International Human Rights Day); December 25th-26th

July 19, 2012