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1 1 (August 8, 2023)

handle is hein.crs/govemme0001 and id is 1 raw text is: Congressional Research Service inforrning ifhe Iegisative debate since 1914 The Bahamas: An Overview Updated August 8, 2023 Political Environment The Bahamas, a Caribbean nation of some 700 islands off the southeast coast of the United States, has been a stable parliamentary democracy since its independence from the 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. The Bahamas at a Glance Population: 398,000 (2023, IMF est.) Area: 5,359 square miles, slightly smaller than Connecticut GDP: $14.1 billion (2023, est., current prices, IMF) Per Capita GDP: $35,460 (2023 est., IMF) Real GDP Growth: -23.8% (2020); 1 3.7% (2021); 1 I % (2022); 4.3% projected (2023 est.) (IMF) Life Expectancy: 72 years (2021, WB) Sources: International Monetary Fund (IMF) and World Bank (WB). 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 lower chamber 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 2021. Since taking office, the Davis government has been challenged by the economic fallout from the war in Ukraine, which has sharply increased the cost of imported energy and goods, and by opposition claims that it failed to curb a rise in violent crime linked to increased gang activity and drug trafficking. The next national elections are due by September 2026. Figure 1. Map of the Bahamas Source: CRS. Economic Situation The Bahamian economy has faced a series of challenges over the past few years. In September 2019, Hurricane Dorian caused widespread damage to the northwestern Bahamian islands of Abaco and Grand Bahama. Starting in 2020, the COVID-19 pandemic further damaged the Bahamas' tourist-based economy, resulting in an economic contraction of almost 24% in 2020, according to the International Monetary Fund (IMF). The Inter-American Development Bank (IDB) estimates that the two disasters cost the Bahamas a combined $13.1 billion in losses and damages. Despite a recovery that began in 2021 with a rebound in tourism, the IDB does not expect the economy to return to its pre-pandemic level until 2024. The IMF has expressed some concern about high levels of public debt, currently estimated at around 90% of GDP, although the government has plans to reduce its debt gradually over a 10-year period to a more sustainable level of 50% of GDP. In 2020, the Central Bank of the Bahamas launched a digital currency known as the Sand Dollar, a digital version of the Bahamian dollar, which is pegged one-to-one to the U.S. dollar. The action was taken in the aftermath of Hurricane Dorian as a way of ensuring that citizens have access to needed currency and can receive aid more quickly when banks and ATMs are damaged by natural disasters. According to the IMF, the Sand Dollar has the potential to help foster financial inclusion and payment system resilience in the event of a natural disaster. The IMF also recommended that the Central Bank maintain careful oversight of the initiative to safeguard financial integrity.

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