Region: Central America and the Caribbean

Capital: Willemstad

Population: 218,126 (July 2004 est.)

Surface area: 960 sq km

Currency: Netherlands Antillean guilder (ANG)

GDP per capita: purchasing power parity - $11,400 (2003 est.)

Background:
Once the center of the Caribbean slave trade, the island of Curacao was hard hit by the abolition of slavery in 1863. Its prosperity (and that of neighboring Aruba) was restored in the early 20th century with the construction of oil refineries to service the newly discovered Venezuelan oil fields. The island of Saint Martin is shared with France; its southern portion is named Sint Maarten and is part of the Netherlands Antilles; its northern portion is called Saint-Martin and is part of Guadeloupe.

Economy – Overview:
Tourism, petroleum refining, and offshore finance are the mainstays of this small economy, which is closely tied to the outside world. Although GDP has declined or grown slightly in each of the past seven years, the islands enjoy a high per capita income and a well-developed infrastructure compared with other countries in the region. Almost all consumer and capital goods are imported, the US and Mexico being the major suppliers. Poor soils and inadequate water supplies hamper the development of agriculture. Budgetary problems hamper reform of the health and pension systems of an aging population.