A BACKGROUND BRIEF

Belize is an independent country located on the Caribbean Sea in mainland Central America with Mexico to the North and Guatemala to the South and West. It has a population of about 250,000 and covers an area 8,867 square miles. For nearly 4,000 years, it formed the keystone of the empire of the ancient Maya who developed, what was for their time, the most advanced civilisation in the New World. English is the official language although Spanish is also widely spoken. The ethnic mix is one of the most diverse in the Western Hemisphere.

Under British rule and following Independence in 1981, Belize has enjoyed a history of peace, stability and democracy. While still a colonial state called British Honduras, self-government was achieved in 1964 and the name Belize was restored in 1973.

The legal system of Belize is founded on English Common Law supplemented by local legislation. The certainty with which the affairs of the professional and business community are conducted, particularly trust and commercial matters, is a tribute to this solid foundation and the continuing high standards of training and practice of the professional and financial community in Belize. The Belize Court system is modelled on the English system and the court of final appeal on questions of law is the Privy Council of the House of Lords in England.

The political system is based upon the Westminster model, with Queen Elizabeth II (represented by a Governor-General in Belize) as titular head. Executive authority in Belize is exercised by the Cabinet under the leadership of the Prime Minister, and new legislation is enacted by a 29-member House of Representatives elected by universal adult suffrage every five years. There are two major political parties - the Peoples United Party and the United Democratic Party. Both parties are committed to the economic development of the country and to the expansion of the offshore financial services industry.

Belize is a member of the Commonwealth of Nations, the United Nations, the Caribbean Common Market (CARICOM), the Non-Aligned Movement, the Organisation of American States (OAS), the International Monetary Fund, the World Bank, the Caribbean Development Bank, the Inter-American Development Bank as well as many other regional and international organisations.

Unlike many of the island offshore jurisdictions, Belize still relies heavily on its rich farmlands - with sugar, bananas and citrus being the main export crops. Lobster, shrimp and other marine products also contribute significantly to the country's foreign exchange earnings.

However, in recent years it is the growth of both the tourism and international financial services industries that has helped to put Belize firmly on the map. With the expansion of trade liberalisation programmes and accessibility to world markets becoming ever easier, effective tax planning and financial management have become critical tools in the development of a comprehensive strategic plan.

The demand for offshore services increases steadily and this will secure the future of this industry well into the 21st century.

Belize enjoys excellent telecommunication services worldwide, efficient international courier services and direct daily flights to the USA (Houston and Miami - both offering world-wide connections) and Central America.