Economy and Government

Until the 1970s, sugar was the traditional foundation of the Federation’s economy. At this time, activities including tourism, export-oriented manufacturing, and offshore banking started to take on more important roles in the economy. Since tourism revenues are now the chief source of the islands\' foreign exchange, the decline in stopover tourist arrivals that followed the September 11, 2001 terrorist attacks ate into the government’s financial reserves.

Although the sugar industry closed down, according to the International Monetary Fund, the IMF, economic growth grew in 2006, fiscal imbalances have greatly improved and monetary aggregates have continued to grow along with economic growth. At that same time that it predicted lower economic growth in the Caribbean in 2007 and 2008, the IMF asserted that St. Kitts and Nevis would be some of the best performers in the region with expected growth of 6% in 2007.

GDP per capita at purchasing power parity is $9,000, which is rather low for the region. Agriculture represents just 3.5% of the economy and industry contributes 25.8% and services 70.7% to the economy. Currently, tourism revenues are the main source of the islands\' foreign exchange. Around 341,800 tourists visited Nevis in 2005 and this number is expected to grow as additional tourist facilities, including a second cruise ship pier, hotels, and golf courses are currently under construction.

Ever since they gained their independence in 1983, St. Kitts and Nevis have been an independent participant in the British Commonwealth. Although most other English speaking Caribbean jurisdictions are dependencies or crown colonies of Britain, the Federation is neither and has its own representation at the United Nations.

Saint Kitts and Nevis have a constitutional monarchy and a Westminster-style parliament. The Head of State is Queen Elizabeth II who is represented by the Governor General. The monarch is responsible for appointing the governor general after legislative elections. The leader of the majority party or leader of a majority coalition is typically appointed Prime Minister by the Governor General, in turn, the Deputy Prime Minister is appointed by the Governor General in Cabinet, which is appointed by the governor general in consultation with the prime minister.

Since 6 July 1995 Denzil Douglas has been the Prime Minister and the Deputy Prime Minister has been Sam Condor.

The unicameral National Assembly has 14 seats; three of which are appointed and 11 of which are popularly elected from single-member constituencies. Members serve five-year terms. The next scheduled elections are in 2009.

The legal system is mostly based on English Common Law and appeal is to the East Caribbean Supreme Court in St Lucia.

Foreign Affairs

Work permits can be obtained through an application by the employer as long as that no local worker is available. The application process includes producing several documents, including health certificates.

Although tourist visas are readily granted, visas for longer stays require the demonstration of adequate financial resources.

It is possible to obtain citizenship investing into the Federation under sub-section (5) of Section 3 of the Citizenship Act 1984. This rule stipulates that upon making application to the Minister a person is entitled to be registered as a citizen of the Federation without voting rights provided that the Cabinet is satisfied that the person has made a substantial investment in the Federation.

The minimum investment requirement may be satisfied with a significant investment of at least $350,000 USD or its equivalent in East Caribbean currency in an “approved investment project”

Currently, the registration fees in force are USD 35,000 for head of household (male or female), USD 15,000 for spouse, and USD 35,000 for each adult family member or other adult.

Each citizenship certificate of registration costs USD 47 and the cost for each passport is USD 13.

Each citizenship application is required to be completed on the official form and must be submitted together with various documents relating to the applicant\'s identity, civil status, criminal record, financial resources, and health. All documents are required to be in English or translated into English, and all photocopies of any document submitted must be notarized and properly certified.

Unless otherwise stated, a passport is valid for ten years. Passports remain the property of the Government of the Federation and may be withdrawn at any time.