The
Development Planning Unit
Government of the British Virgin Islands

Sustainable Development for
Small Island Developing States
Continued/...

4. Current Status and Problems of Socio-Economic Development - Part 2

Table IV.2.5.2.5

School Age Population, 1994 - 2013  

         Based upon assumption concerning economic development, migration, mortality and fertility the overall school age population, pre-school groups; primary, secondary and tertiary are likely to increase by 1.69%, 1.25%, 1.43%, 2.12% and 2.03% during the twenty-year period 1994-2013. The Population projections were done with technical assistance from the ECLAC/CELADE Demographic Unit, Port-of-Spain, Trinidad and Tobago.

           The demographic outlook for the British Virgin Islands is obtained from a 30 year population projections from the 1991 Population and Housing Census to the year 2021. The projections were made employing the Cohort-Components Methods and were based on three (3) scenarios (low, medium and high) utilizing age/sex-specific assumptions regarding fertility, mortality and migration thanks to financial and technical assistance by ECLAC/CELADE.

Population Change

       After reviewing the range of assumptions for the various scenarios the medium one was selected to represent the expected future demographic trends of the BVI. For the medium scenario, it is assumed that the fertility level will gradually increase from a TFR of 2.2 to 2.5 by the terminal year. This fertility assumption was maintained for the high scenario as it was deemed unrealistic to assume that the fertility level would exceed a TFR of 2.5. It was assumed that the positive net migration will increase by about 15% by the year 1996 and then remain constant thereafter until the terminal year.

Table IV.2.5.2.6 

Population Change for Low, Medium and High Scenarios, 1991 - 2021

 (1) AAGR - Average Annual Growth Rate
Source:   Population Affairs and Social Statistics Division, DPU

School Age Population:

       The school-age population is subdivided into 4 groups, i.e. pre-school (0-4 years), primary (5-11 years), secondary (12-17 years) and tertiary (18-24 years) school-ages. Despite the scenario, the most dramatic increases are experienced in the secondary school-age. The primary school-age also show some substantial increase for all scenarios. Because of the fertility assumptions, the low scenario shows a very small increase in the pre-school school-age. As per the medium and high scenarios, the tertiary school-age which represented the highest population in the base year will be eventually exceeded by the primary school-age population.

       The future outlook, as suggested from the population projections, indicate among other things that the population will continue to grow and variable will change its structure over the reference period. Key variables will change its structure over the reference period. Key variables indicating change are the sex ratio, age structure, birth rate, working age population and the school age population. These structural and absolute changes suggest a number of social economic, population and environmental imperatives which generally indicate the need for a new approach to managing these multidiciplinary activities. It is the realization of these structural changes, socio-economic imperatives and new management approaches that leads us to select the integrated approach to development planning based upon the concept of strategic visioning.

       Increases in the school age population have resource implications for the capital and recurrent budget in terms of capital outlay for the construction of facilities and operating expenses for wages, salaries and supplies, respectively. As well, the indication is that the tertiary age population (18 - 24 years) will eventually exceed the primary age population (5-11 years) highlighting the need for the allocation of more resources to tertiary education both locally for job skills development and externally for scholarships.

        In summation, the population projection covering the period 1991 - 2021 suggest that population will become one of the most critical factors in the development of the BVI. In this economic development scenario of the country featuring tourism and international financial services within the context of limited and fragile natural assets together with acute indigenous human resource shortages the need for integrated planning of economic, social, population and environmental related activities is apparent and highlighted.

Student/Teacher Ratios

      The overall student/teacher ratio for the British Virgin Islands improved 22% for the period 1984-1992 from 16.80 to 13.76 inspite of a 25.8% increase in the number of students. of course the improvement in the student/teacher ratio could only be achieved with a substantial (48.9) increase in the number of teachers. The number of teachers and untrained teachers stood at 178 and 62 and 265 and 76 for 1984 and 1992 respectively. These indicate that the share of trained teachers increased 9.5% points from 65.1% in 1984 to 71.3% at the end of 1992.

      These statistics present evidence of the successful effort to improve the quality and quantity of teaching in the public school system at the primary and secondary levels.

Table IV.2.5.2.7

Student/Teacher Ratio for all School Levels, 1984-1992

Source:       Department of Education 

*        Teachers for these schools for the years 1984-1988 were included with teachers for Primary and Secondary schools and therefore their ( Primary and Secondary) ratios will be a bit understated.

During the review period, a major effort was undertaken to upgrade the overall level of teacher skill through recruitment of highly qualified/trained teachers from the region and the upgrading of skills of nationals already engaged in the profession. There were two substantial increases in the salaries of public service workers including teachers: 25% in 1988 and 12.5% in 1993. These increases put BVI teacher salaries and other terms of employment in a very favourable position with respect to the entire CARICOM region.

Table IV.2.5.2.8

Teachers by Qualification and Grade 1984

(Primary and Secondary Schools) 

 Source:    Department of Education

          A comparison of Table IV.2.5.2.8 with Table IV.2.5.2.9 provides evidence of the change is the quality of teachers defined as trained and untrained at all levels in the primary and secondary systems. In 1984, untrained teachers numbered 62 were distributed between grades I through V in the proportions of 58%, 10%, 11%, 0 and 21% respectively. The grading between I and V reflects experience, qualifications and tenure amount in the end to a remunerative level.

Table IV.2.5.2.9

Teachers by Qualification and Grade, 1992 

        At the end of 1992, Table IV.2.5.2.9 shows that the distribution of untrained teachers in grades I through V were 42%, 8%, 10.5%, 4%, and 36% respectively. This indicates that , although the number of untrained teachers increased from 62 to 76, emphasis was put on training some of the older and younger teachers in grades I, II and III. During the review period a number of teachers received university education in the BVI through a special degree programme through the University of Hull.

IV.2.5.3 Education Policy, Strategy and Plan

       Human resource development, of which education is a major component, is one of the four main development strategies of the Government to make the BVI a World Class International Financial Services and Tourism Centre. The other major strategy is the development of a lean and efficient public sector which is ready to adjust to international or domestic scenarios of change. To achieve our development goals, the education system must be World Class and oriented around major economic activities. Education and training at the primary and secondary level will be mandatory and substantially free-while tertiary education will be subsidized to a lesser extent.

      The First 5-Year Education Plan focuses on access and provision, appropriate curricula and assessment and quality assurance. The goals of this plan are discussed below: 

Goal I: Access and Provision

        The Government will provide education and training facilities such that no child or young person is prevented from having access to such facilities as fit his age and aptitudes. The government will also provide education and training facilities, at reasonable cost, in such numbers and in such fields of study as it estimates are likely to be required by the economy.

Goal 2: Appropriate Curricula and Assessment

      To provide curricula, including content, teaching methods and assessment appropriate to the needs of the individual and the country.

Goal 3: Quality Assurance

       To plan, implement, and evaluate educational programmes so that, at reasonable cost, the outputs from the education programmes on BVI (and from overseas) have the skills, knowledge and attitudes which suit them for the labour force of BVI and for making positive contributions to society. Clearly all these goals interact.

        Reflected in these goals is a guarantee for the continued development of the human resources of the territory, a priority which is connected to the national development objectives enveloped in the Five Year Development Plan.

          Government's policy in adult, secondary and primary education for the next five (5) years is enshrined in the Five Year Plan. In the primary area, emphasis will be placed on the expanded preservice and in service training of teachers, the enhancement of teaching skills through emphasis on grouping and multigrade instructional strategies, the establishment of small libraries in schools, the introduction of diagnosis and treatment strategies related to learning disabilities and through curriculum development enhance teaching and learning styles. These measures assume that the primary school system, in addressing basic learning needs, seeks to move the system qualitatively to a new level.

           In the area of secondary education, the following are the main proposals for reorganising and improving this level of education.

1. Automatic promotion from primary to secondary schooling.
   

2. The reorganisation of secondary education into two cycles, Junior High for 3 years, and Senior High for 2 years.
   

3. The conversion of the existing high school to a Junior High School and the construction of a new two(2) year Senior High School.
   

4. The incorporation of a Literary and Skills Programme (LASP) into the reorganised secondary school system and programme.
   

5. Curriculum changes and development consistent with the proposed reorganisation of secondary education and automatic promotion from the primary to the secondary level. Curriculum change will also seek to achieve a more fully comprehensive secondary education programme.

IV.2.5.4 Social Development

         The Social Development policy of BVIG is to provide a social safety net for those persons in our community who have been unfortunately excluded or disadvantaged in terms of socio-economic development. Additionally special groups suffering from abuse or finding themselves in difficult circumstances such as women and children, for whatever reason, are entitled, upon qualification, to receive assistance, both in cash and kind, from the Department of Social Development. However, constraints such as the spread out-island characteristics of the BVI and the limited resources available, both human and financial, have not permitted the Social Development Department to effectively delivery services required by this growing segment of the population.

        GBVI approach to social development is grounded in the concept of social security - increasing the security of people rather than on national security. people must be secure in human development, territorial areas, employment and tier environment in order to fully cover the range of issues and affairs involved in human security. The Social Development functions are designed to provide those area of human security related to public assistance, marriage/family affair, juvenile situations, child support, foster care, adoptions, child abuse and neglect, care for the aged, youth development, drug abuse, related issues and community development.

       However, inspite of our best efforts at social integration and community development, it is general felt that the issues of abuse, exclusion and children related services continue to develop in a manner not consistent with BVIG objectives of sustainable development, social integration, inclusion and good governance. The level of services provided and the facilities required to ensure our objectives are inadequate and serious attention needs to be focused on this area.

       Additionally most of the clientele of the Social Development department is in the single-parent female category. There is a large migrant population living in low socio-economic areas and there is a need to target some of these socially deprived areas for multi-purpose programmes such as community education.

       There is no place of safety or rescue facility for children in trouble. Department records indicate that there are 25 children in need of placement. In the 1988-89 period there were 27 child abuse and neglect cases; in 1989-90, 29 cases. The BVI recorded a fatality due to child abuse and this is one of the few cases of child death within the Caribbean area. The circumstances are worthy of note because of the fact that the child was a child of a migrant parent and it is indicative of the need for facilities for children in need of care and protection.

IV.3 Agriculture Sectoral Development

      The contribution of Agriculture to the economy of the BVI has been declining steadily over the last 15 years. The prominence of the tourist sector, financial services and other tertiary activities has attracted both financial and human resources away from Agriculture. The Government recognises the importance of Agriculture in the food production process and has embarked on a new Agricultural Policy.

The objectives of the new Agricultural Policy are to:

1. Alleviate the problem of farmers' ageing by attracting young generations of farmers.
   

2. Promote backyard gardening in order to reduce the territory's heavy dependence on import of agricultural products;
   

3. Encourage utilisation of land owned by absentee landlords (46 per cent of BVI land is owned by British Virgin Islanders).
   

4. Promote an integrated farming system linking farmers with main outlets for marketing of farm production; and 
   

5. Help soil and water conservation by developing facilities as mini-dams (BVI Social and Economic Review, 1988)

      To implement the new Agricultural Policy the Department of Agriculture has upgraded its extension services and marketing assistance to farmers.

      The Agricultural Policy is geared towards self reliance in foods for the domestic population. It is recognized that given the large tourist sector import dependence for food cannot be eliminated. The emphasis is placed on tropical fruits. There is a plan to put 100 acres under fruits and to double this amount in the next four years.

      The Agricultural Department is also pushing the production of sheep and goat to satisfy the extremely large local demand for mutton. The goat is 90 percent self-sufficient in beef, 30 percent in eggs, 20 percent in mutton and about 40 percent self sufficient in the production of pork. There is limited capability in the production of vegetables due to the shortage of suitable land and water.

      Only 14 percent of the land in the BVI is suitable for agriculture. That is 5,304 across of the total of 37,608 acres of privately owned and farming is conducted mainly on a semi subsistence basis. Production is mainly for home consumption with small surpluses marketed. In Virgin Gorda, most of the lands are Crown Lands and the farmers are given long-term leases. Again most of the farming is semi-subsistence farming. The average size of holdings is about 5 acres but al of this is not cultivated, much of it is used for livestock.

       Women participate fully in farming activity and there are no obstacles to the access of women to land for farming Of the 194 registered farmers 100 are backyard farmers, the majority of whom are women. The other 94 are commercial farmers, 12 of whom are women.

      There is a serious shortage of farm labour in the BVI and large amounts of immigrant workers are used. Wages are quite high (about US $35 per day), thus there is tendency for operations to be small scaled self-production.

      Inputs are imported in bulk by the Agricultural Department and sold to the farmers at cost price. They are not granted credit by the Department but credit can be obtained through the Development Bank. The credit funds are rarely taken up by the farmers.

       Extension services are readily available. The five (5) officers can adequately cover the territory. Irrigation is only done on a limited basis due to the availability of water.

      The marketing Division of the Agricultural Department provides a link between the farmers and the prospective buyers of their output. Usually hotels, restaurants and supermarkets. The Marketing Division is not involved in the buying and selling, it only provides information and established contacts. Agricultural products are also sold by hagglers in the Saturday market or thorough wholesalers.

      The prices of agricultural products are fixed by the government. They are determined by the market. There is no taxation on agricultural products nor is agricultural income included for income tax purposes. Agricultural inputs are imported duty free.

      The infertility of the soils, the lack of basic infrastructure and the consequent low returns to agriculture makes it very unattractive compared to the service sector. The farming population is ageing. Together, these have resulted in declining food production. The new Government Policy is aimed at arresting this decline and to rehabilitate the Agricultural Sector.

IV.4 Tourism Sectoral Development

         The BVI tourism product is heavily dependent on the natural environment. The natural beauty of the land and marine area combined with some of the best sailing waters in the world, has made the BVI a major yacht chartering locale. Tourism started with the development of the Little Dix Bay Resort on Virgin Gorda in the mid 1960's funded by Mr. Lawrence Rockefeller. This was sometime after tourism had started in the neighbouring Caribbean Islands. There had been calls to develop the BVI's tourism potential as early as 1958, but little was done, so that in the early 1960's more than two thirds of all government expenditures were financed by grants from the United Kingdom.

        Soon thereafter tourism development was seen as the way to advance the economic development of the BVI, replacing small scale agriculture, fishing and charcoal making. The primary market for such products had been St. Thomas in the United States Virgin Islands.

        There were many obstacles facing the development of tourism, one of the most important was the transportation problem. At that time the dominant mode of transportation between the islands was by ferry boats. While the airfield at Beef Island was adequate for medium range aircraft, this island had no road connection with the main island, Tortola. 

       Prior to the construction of Little Dix Bay Resort, there were only small scale hotel operations in Tortola, e.g. Treasure Isle Hotel. In 1964 construction on Long Bay Hotel was started as well as a 20 room hotel on Mosquito Island. The Queen Elizabeth bridge was opened in 1966 providing a road connection between the Beef Island airport and the main island, Tortola. Scheduled passenger services were established and the airstrip at Virgin Gorda was constructed. Additional small hotels were constructed in the mid to late 1960's.

       The Hotel Association was formed in 1967 with 12 properties and 350 beds. In 1968, the BVI Tourist Board, a statutory body administered by an active Board, was established.

      In 1969, the yacht chartering and bareboating industry started in the BVI, creating a special activity basis for the tourism industry. Bareboat companies, led by The Moorings, soon developed the reputation of being the best in the business.

        The 1970's and 1980's saw considerable growth and expansion of the BVI's tourist accommodations and scheduled air services. At the same time tourist expenditures, and hence government revenues, increased. BVI's reputation grew as an upscale destination.

       In the late 1980's the growth pattern was affected by problems in the charter industry resulting from changes in United States tax laws. However, most companies survived and there is now a fleet of 300 charter boats. The 1980's also saw more British Virgin Islanders investing in the tourism industry, primarily building villas and small inns. This trend has been encouraged by the government.

      The BVI's hotel capacity is approximately 1,200 rooms coupled with approximately 300 charter boats each capable of sleeping 4 persons on average.

      Over recent years the destination has seen an increase in the number of cruise ship arrivals. This trend is expected to continue in the 1990's as more consumers look at cruise ship travel as the best way to enjoy several destinations for a single price.

      Table IV.4.1 summarises the growth in the tourism industry over the past two decades. The growth in the industry in the late 1970's and the late 1980's is most evident. In particular between 1984 and 1990 there was a 97% increase in the total holiday visitors. In 1990 317,670 persons visited the BVI, of which 56% were stop-over visitors. The gross expenditure by tourists in 1990 was estimated at US$ 132.1 million. The primary tourism markets are the United States of America, Canada, United Kingdom and Germany.

        However, if the BVI is to continue to develop its economic potential as it relates to tourism, it is vital that a long term tourism development plan be prepared so that the development of the industry proceeds along a predetermined path and not in an ad hoc manner. This plan must include further studies on the destination's carrying capacity and the institutionalization of regulations to ensure the destination's carrying capacity is not surpassed. This will help to ensure the visitor experience remains of a high quality and that the environment is enjoyed, but not debased in the process. The industry also needs to improve its infrastructure, such as airport facilities, direct flights from North America, and its range of activities such as golf, conference facilities.

IV.5 Fisheries and Other Marine Projects Development

       The fisheries industry in the BVI is based on a small scale artisanal fishery and like agriculture contributes a relatively small percentage to the GDP, 2.16% in 1987. 

       A frame survey, conducted in 1991, showed that there were a total of 276 fishermen, 48% own their own fishing boats, 35% were full time fishermen and 50% of the fishermen were older than 50 years. There are 142 fishing boats, 80% of the boats are less than 25 feet (8 m) in length, thus fishing is concentrated close to shore. Fish traps are the most important gear, there were over 5,000 traps in use, but gillnets and seine nets are also important. The number of fishermen is also increasing and this together with the concentration of the fishing activity nearshore may lead to further depletion of the nearshore fish populations. It is already known that stocks of lobsters and conch have drastically declined in recent years.

       Landing sites are scattered around the islands, there are a total of 32 sites, distribution and marketing is poorly organised and inefficient. The BVI Fishing Company was established and built in 1984 to provide a central marketing function for the fishing industry. For a variety of reasons this has not been successful and the quantity of fish processed by the Company is very low so the facilities are under utilised. Deep water species have not yet been exploited by BVI fishermen, although in the late 1980's several swordfishing licenses were issued to foreign fishing boats.

       The Fisheries Ordinance of 1979 and the Fisheries Rules of 1982 provide for the licensing of fishing boats, the protection of certain species, declaration of protected areas, designation of authorized officers and fisheries inspectors. In 1977 the BVI declared a 200 mile (322 km) Exclusive Fishing Zone (EFZ); due to the proximity of other islands, this only extends the full 200 miles width to the north of Anegada. Illegal fishing in BVI waters particularly by fishermen from the United States Virgin Islands is a problem, and the BVI Fisheries Department has insufficient capability for surveillance of the Territorial Waters and the EFZ.

       In 1990 The Anegada Horseshoe Reef was declared a protected area under the Fisheries Ordinance. This extensive reef system which extends 10 miles (16 km) south of Anegada has been declared a no-fishing and no- anchoring zone so as to protect fish stocks and the coral reefs. However, the exclusion is not total and exemptions have been made for some fishermen to continue fishing there. The recovery of the area is being monitored by the Conservation and Fisheries Department.

       The BVI imports a considerable quantity of fish. In future years the BVI could become self sufficient in fish. This will involve training younger fishermen in new methods, assisting them to purchase the necessary boats and fishing gear. The existing distribution and marketing system will need major work. At present fisheries resources are insufficiently documented, and a major effort is under way through catch/effort surveys to collect the necessary information to plan the future development and direction of the fishing industry.

IV.6 General Economic Development 

      During the decade of the period 1984-1993 Gross Domestic Product at constant prices increased threefold moving from $86.30m in 1984 to $197.50m in 1993. This spectacular increase in economic activity was spearheaded by the development of the British Virgin Islands a major world-wide yacht sailing and international financial services centre. In achieving this sectoral development in tourism and financial services the related sectors such as utilities, communications, transport and construction were major beneficiary and supporting sectors.

      The economic performance of the last decade was in sharp contrast with that of the period 1974-1983 when Gross Domestic Product grew 17.1% from $23.36m in 1974 to $28.2m in 1983. GDP during the period 1974-1983 saw agriculture (10%), construction (11%), tourism (29%) and government (13%) dominate the economy together accounting for 63% total industries output. At the end of the period 1984-1993, agriculture (4%), construction (8%), tourism (22%) and government (12%) in aggregate accounting for only 46% of industries output.

      The period 1984-1993 completed the transformation of BVI into service economy still dominated by tourism but with international financial services being the growth sector in terms of gross inflows of resources. The structural diversification of the economy was the highlight of the latter part of the period as the multiplier effect sectors such as construction, agriculture and manufacturing gain on their shares of GDP. Financial services, during the last half of the period, became the most dynamic sector being responsible for approximately 35% of the revenue of the Central Government.

      Inspite of the openness and dependence of the BVI's economy the period 1984-1993 of mix results in the industrialised economies were not enough to hamper economic growth and development. The higher inflation rate, witnessed in the industrial countries in the early part of the period 1984-1993, while effectively reducing demand for developing countries goods did not dampen the demand for services produced by the BVI's economy. The diversification of the economy into financial services was designed as a major strategy to cushion against the external shocks traditionally associated with tourism. As the enlarged role of the Public Sector in providing a conducive environment and supportive infrastructure was critical to economic performance.

      In committing to consolidation and improvement on economic gains achieved in the period 1974-1983 Government set out to: 

1. improve the standard of living and achieve an even more equitable 
   distribution of economic gains; 
   

2. ensure greater participation of nationals in the process of domestic 
   economic activity, particularly at the level of ownership of the means of 
   production and the enhancement of nationals' skills;
   

3. maintain the quality of life in the atmosphere of a clean, peaceful 
   environment with a minimum of the social problems which are typical of 
   growing economies; and
   

4. build a resilience in the economy which could generate economic stability, balanced growth and minimize the effects of the more common recessionary problems experienced by economic and trading partners upon the attainments of such growth.

      In order to attain these objectives government main strategy was to effect mutually respecting, well defined partnership of the public and private sectors. In the harmonious relationship, the public sector role was limited to participative economic management co-ordination, provision of an environment conducive to private initiative and the provision of supportive infrastructure and the development of human resources.

      Major strategy measures amounted a series of investment programmes to provide improved transport facilities, (roads, bridges, airports) electricity, water and other community services. On the investment climate side, appropriate tax rates and regulations coupled with fiscal incentives and other assistance, including tax concessions and favourable land lease agreements formed the nucleus of Government's contribution.

      Unlike most developing countries, the BVI was fortunate not to be saddled with the problems of large external debt, low export prices and balance of payment problems. In fact this was no accident. The avoidance of these problems was a result of deliberate and prudent fiscal policies combined with balanced steady economic management strategies. The BVI is a U.S. dollar currency area and trades mainly with the United States of America. The improving positive balances on the services account, inflows of short and long term capital to the official sector and capital to finance domestic investment amounted to a comfortable balance of payments situation. The favourable fiscal position (surpluses balances on current account), inflow concessionary capital for development projects and sound project investment criteria reduced the need to take out loans for project financing during the first half of the period 1984-1993. However, in the last half of the period, concessionary financing dropped off dramatically but fortunately the fiscal position permitted the taking of loans and financing of many projects from surpluses on operations. During the decade international prices of services such as leisure and finance maintained or improved their levels placing BVI in a very favourable position. Infact our diversification into services mirrored the trends in our trading partners economies.

      At the end of the period 1984-1993, when there were recessions in the industrialised western countries, BVI Government response was to stay the course while nurturing an environment conducive to investment and introducing legislation to emphasize the non-treaty reasons for offshore residence in view of the United States cancellation of the US-BVI Double Taxation Treaty. In addition to the enactment of a comprehensive legislative framework for offshore financial activities, Government continued to buttress imported labour with an intensified programme of human resources development, highlighted by the establishment of a community college, as it supportive contribution. 

      The main thrust of Government tourism policy focused on providing the necessary infrastructural and support facilities which will lead to continued and controlled growth of the industry. The policy highlights the need to:

• encourage local participation in order to reduce the imbalance between 
  foreign and local participation in the industry; 
  

• train industry participants, particularly owners of and employees in small 
  hotels;
  

• increase employment opportunities to skilled levels for the local labour 
  force;
  

• design a promotional strategy to identify new markets and overcome the 
  heavy dependence on the North American market; and
  

• establish inter-sectoral linkages between tourism and the agricultural, 
  manufacturing and commercial sectors.

      The development of the industry since the mid-1960s has been supported by the Government's programmes to improve the airport, roads, electricity, water and other community services. Investors are also encouraged by the provision of incentives and other assistance, including tax concessions and favourable land lease agreements.

      The obvious benefits of this strategy have made tourism into the most dominant and dynamic sector during the first part of the period 1984-1993. Although tourism lost some of its share in GDP towards the end of the review period, its backward and forward linkages, its impact on employment, balance of payments, imports, exports and public sector revenues have been substantial. Gross inflows from tourism account for more than 55% all inflow on current account to the BVI.

      Problems related to capacity for education and health care delivery to an increasing resident and tourist population manifested themselves in the latter part of the review period. Education institutions are at full capacity and there are indications of overcrowding with student/teacher ratio increasing 30% over the review period. Medical facilities while not over utilized are clearly lacking in quality and quantity as evidence by many residents procuring services overseas. 

      The fiscal accounts of the Central Government which were in deficit for 1984-1986 were brought back into a surplus position due to a substantial increase in tourism activity during 1987 and explosion in offshore financial activities beginning in 1988 and continuing to the present. The 1987 boom in tourism was not sustained; however, the activities in offshore financial services increased spectacularly each year until the end of the review period. Infact it was this substantial inflows into Government that allowed the substantial increase in Government revenue and the two subsequent increase in the remuneration package for the Public Services. The Gulf War and the subsequent recessions in Europe and North America between 1991-1993 reduced Tourism receipt back to 1990 levels.

       During the review period, legislation affecting fiscal accounts included the Business & Professional Licences Act, the Stamp Act and the International Business Companies Act. Upward adjustments made to hotel accommodation a, selected customs duties, passenger taxes and other small licences provided the additional revenue acquired for counterpart financing of major capitals.

        Similarly, investment as measured by gross capital formation grew from $31.5m to $65.5m. Exports, consisting mainly of tourism and international financial services grew more than fourfold to reach $189.3m at the end of the review period. Per capita levels of GDP, National Income and Disposable Income more than doubled during the period 1984-1993 reflected the relatively massive expansion of economic output in the British Virgin Islands. In view of the rapid economic expansion supported by massive immigration to satisfy the demand for human resources, Government sought to establish a framework for the implementation of national policies. The main strategy to guide future development is the National Integrated Development Plan 1995-1999 (NIDP) formulated on the concept of STRATEGIC VISIONING and enveloping the concepts of Sustainable Development, Changing Production Patterns with Social Equity, developing with knowledge and Education and Incorporating Population concerns in Development Planning.