Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Foreign Direct Investment In Belize

VIEWS: 3 PAGES: 17

									Foreign Direct Investment In Belize



    Presented by: Karima A. Morris
Introduction
      • Belize is located in
        Central America, to the
        south of Mexico and to the
        north and west of
        Guatemala
      • Belize is the only Latin
        American country where
        English is the official
        language
      • Belize has a bilateral
        relationship (both Central
        American and Caribbean)
        because of its strategic
        geographical location
Belize’s Major Socio Economic
          Statistics
                          2003      2004      2005

      Unemployment
      Rate (%)            12.9      11.6      11


      Inflation Rate(%)   2.6       3.1       3.7

      GDP Growth
      Rate (%)            9.2       4.6       3.1


      Gross Imports
                          1,104.2   1,028.2   1.185.8
      ($BZ million)

      Domestic Imports
      ($BZ millions)      381.4     410.1     413.3


      Mid Year
      Population          273.7     282.6     291.8
      (thousand)




               •      Statistics collected from
                      www.cso.gov.bz
            Standard of Living
• Differences in quality of life reflects and shaped patterns
  of social inequality in Belize.
• Access to food, housing, health care, and other necessary
  or desired goods and services varied most markedly
  between rural and urban areas, as well as by
  socioeconomic status.
• In 1984 the average salary of an employee was Bz$6,000.
• By 2002, the population below the poverty line was 33.5%.
• Almost two-thirds of the working population earned
  between Bz$3,000 and Bz$9,000, while 20 percent
  earned less than Bz$3,000(www.country-studies.com).
Belize: A Multiethnic and
  Multicultural Society
          Investment Sectors
•   Tourism
•   Agriculture
•   International Financial Services
•   Furniture Manufacturing
                        FDI by Sector 2004

                                                          Services
                                                            6%
                                                                     Medical Education
                                                                            9%
                         Tourism
                          56%




                                                                 Manufacturing
                                                                    29%




•   Graph collected from Beltraide, belizeinvest.org.bz
                      Tourism
• Belize tourism industry is
  the primary industry that
  has demonstrated the
  most success, mainly
  because of its diverse and
  high quality attractions.
• Belize’s success in
  tourism is due in part to
  special branches of
  tourism: eco, adventure,
  cultural, and archeological
  tourism.
             Agricultural Industry
•   The agricultural industry which
    consists of citrus, citrus
    production, bananas, sugar, and
    beans, provides 71% of the
    country’s foreign exchange
    earnings.
•   Maries Sharp’s – Belize's
    recognized exporter of hot
    pepper sauce
•   Green and Black’s is a foreign
    investment company based in
    Belize, and is a top notch
    specialty food manufacturer
        Aqua cultural Industry
• The majority of
  investments in Belize
  aquaculture is in shrimp
  farming.
• Bluecadia is a U.S. aqua
  cultural company that
  specializes in shrimp
  farming
            International Financial
                   Services
                           Offshore Banking
•   Offshore banking was introduced in the Caribbean by the British. It offers
    millionaires and international business investors to set up business accounts
    away from their parent countries so that they can conduct business transactions
    globally. For American investors, this offers them a safe zone where their money
    is not taxed by the Federal government.
•   In Belize, the largest offshore banking company is called Providential Trust Bank.
•   Offshore banking offers IBC - International Business Company, which is an
    account where the money is managed by offshore banks in Belize and the
    Cayman Islands . Billions of dollars are transacted on a daily basis through these
    banks. This is the main service provided by offshore banking.
•   Money Transfer is a form of banking that brings into Belize a large amount of
    foreign exchange. Western Union, a huge banking conglomerate, provided
    money transfer services to Belizeans abroad, and started operations in Belize in
    1993.
•   There are about 100 thousand Belizeans in the US, almost half the population of
    Belize. Belizean - Americans send home about $60million in remittances each
    year, which is a chief sou0 ce of foreign exchange.
         Attracting Investors
• In order to attract more foreign investors such
  as Chinese and Taiwanese entrepreneurs ,
  Belize has an economic citizenship program
  where foreign investors are given instant
  Belizean Citizenship through the purchase of
  a Belizean passports costing (U.S.)40,000
  dollars.
      Furniture Manufacturing
• Belize attracts many foreign investors from Malaysia,
  the U.S., and Britain, who invest in the country’s
  forestry industry. Investors come to Belize to benefit
  from country’s large forest reserves, to cut wood
  through huge logging concessions offered by the
  Belizean government.
• Pharmaceutical companies also come to extract
  medicine from plants in the rainforest of Belize.
• Belize has one of the few remaining rainforests in
  the world, and there are limitations on how much
  resources companies can take from the rainforest.
                         Oil!
• In 2005, Belize found oil was found in the Western
  District of Cayo, in Belize.
• A company from Ireland was the first to drill and find
  oil in Belize. The company exports about 1000
  barrels a day.
• This new investment sector has lead to more
  revenue for the Belizean government.
• The government gets 60% of all oil revenues with
  additional taxes it levied on the oil reserves.
         Other Investments
• Belize has privatized its water,
  electricity, and telecommunication
  services.
• The Canadians own 80% of the shares of the
  only electricity company. The British
  multinational Michael Ashcroft owns about
  75% of the shares in the country’s only
  telecommunication company.
• A south African investment group controls
  60% of Belize’s only water service company.
    Effects of Foreign Investment
•   Foreign Investment has both good and bad impacts on Belize.
•   Good
•   Foreign investment has created jobs for local Belizeans
•   Foreign investment has also helped developed the country.

• Bad
• One negative effect that foreign investment has had on Belize is
  capital flight - where most of the money made by foreign
  investors leaves the Belize economy to foreign banks abroad.
  Very little is invested back into the country and its people.
• Parasitic Wages - where the people of Belize are not paid
  affordable wages.
              References
• www.belizeinvest.org.bz. Beltraide.
  2005
• www.country-studies.com. Belize
  Country Studies.
• www.cso.gov.bz. Central Statistical
  Office-Belize. Belize Central Statistical
  Office. 2003.

								
To top