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Caribbean Islands Sectoral Performance
In 1983--the most recent year for which data were available in
1987--the leading sectors of the economy, as measured by percent of
GDP, included agriculture (23.2 percent), government services (23.1
percent), transportation and communications (11.2 percent),
manufacturing (8 percent), wholesale and retail trade (8 percent),
construction (7.2 percent), and banking, finance, and housing (6.6
percent).
Agriculture remained the primary productive sector of the
economy in the 1980s, accounting for approximately half of all
export revenue. Dominica's agriculture was characterized by the
estate-peasant dichotomy in evidence at the time of the abolition
of slavery in 1834. The large estates continued to be located near
the coast on the deep river valley soils, whereas most small farms
were located in the interior on steep, highly erodible soils. This
simultaneous existence of small and large farms led to an imbalance
in the distribution of land resources that remained a major
constraint on the island's economic development. In spite of land
settlement programs (notably at the Geneva, Melville Hall, and
Castle Bruce estates), in the mid-1980s just over 30 percent of the
farmland was owned and occupied by 3 percent of the farming
population.
The banana industry was the most important component of the
agricultural sector. The industry was devastated by the hurricanes
of 1979 and 1980, with production dropping from 47,484 long tons in
1978 to 13,500 long tons in 1980. In the early and mid-1980s,
production was also hurt by the depreciation of the British pound,
the currency of payment for bananas, against the United States
dollar. The situation of the industry improved markedly, however,
in the late 1980s. Production totalled 50,474 long tons in 1986, a
51.6-percent increase over the previous year. Quality also
increased in 1986 as the industry achieved its goal of packing all
bananas in the fields, thus reducing spoilage. Finally, the
strengthening of the pound resulted in farmers receiving the
highest prices in the history of the industry. The fragility of
these high prices was quite evident, but because there were no firm
markets for other island crops increasing the dependency of the
economy on bananas appeared to be the only alternative.
Coconuts and citrus fruits (grapefruits, limes, and oranges)
were also important agricultural products. Copra (dried coconut
meat-yielding coconut oil) was an increasingly significant element
of agro-based manufacturing. Grapefruit production expanded from
7,500 short tons in 1985 to an estimated 10,676 short tons in 1986,
a 42.3-percent increase.
In the 1980s, Dominica's manufacturing sector increasingly
focused on enclave industry (see Glossary), light assembly
industry, and agro-processing. Enclave industries were designed to
increase export earnings and provide employment. In the early
1980s, the government established two industrial estates and
expanded factory facilities by over 16,500 square meters. Agroprocessing consisted of the production of laundry and toilet soaps
from local copra and imported chemicals and tallow.
Unlike what was true typically in the Commonwealth Caribbean,
tourism was a relatively insignificant component of the Dominican
economy. The comparative absence of white sand beaches and tourist
infrastructure greatly hindered the industry's development.
Nonetheless, the island's rugged beauty provided considerable
opportunities for expansion of tourism through the development of
a marketing strategy emphasizing mountain climbing, camping, and
the like.
Data as of November 1987
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