Cayman Islands, a lot of people are not familiar with this place. But if we look at GDP per capita around the world, we're attracted to the Cayman Islands. In 2020, the Cayman Islands had a GDP per capita of $85,000, the sixth largest in the world. It can be seen that this place is very rich. However, the Cayman Islands now have the name of tax haven, and before that, it was called the home of pirates. It can be said that the situation here is still very complicated. Let's take a look at what kind of place the Cayman Islands really is, and why are they so called?
Located in the western Part of the Caribbean Sea, the Cayman Islands consist of three islands, Grand Cayman, Little Cayman and Cayman Brac, with a total area of 264 square kilometers. The entire Cayman Islands is flat and dominated by plains. Moreover, it has a tropical climate, and the average annual temperature is still relatively high. In addition, there is abundant precipitation here, with annual precipitation of about 1200 mm. Of the islands in the Caribbean, the Cayman Islands are not large, but they are not small. Its geographical location is still very special, and because of this, the history of this place is more complicated.
After Columbus first arrived in the Americas, he continued his exploration of the Americas. In 1503, Columbus discovered the Cayman Islands and named them Turtle Island. It's called Turtle Island because Columbus discovered that there were a lot of turtles on these islands. In fact, there are not only turtles here, but also many crocodiles. It is estimated that Columbus did not see crocodiles at that time, otherwise it would not be called Turtle Island.
In 1586, the British came to the Cayman Islands and officially named it the Cayman Islands. After that, European colonists began to settle on the island, and the British became more and more powerful here. In 1670, the British declared their own colony under the administration of the Governor of Jamaica.
At this time, although the Cayman Islands became a British colony, it also became the home of pirates. Many people have seen the film series "Pirates of the Caribbean", which tells the story of pirates in the Caribbean Sea. Due to the advent of the Age of Discovery, more and more places were discovered by European colonists, and maritime trade flourished. Trade between Europe and the Americas, in particular, was very frequent. The Caribbean, on the other hand, was a staple of many trade routes between Europe and the Americas, so piracy was rampant here.
When pirates plunder materials, they must also have a base area, which is best far away from the forces of European countries. Thus the Cayman Islands became one of their bases. Located on the Caribbean Sea, it is very convenient to plunder other ships. Moreover, although it was under the administration of the Governor of Jamaica, the British were not strong here, and the threat to pirates was not great. So pirates often resupply, bury treasure, and even settle here in the Cayman Islands. It was in this way that the Cayman Islands became home to pirates, a situation that continued until the 19th century.
After the 19th century, due to the independence of the United States and many Latin American countries, coupled with the completion of the Industrial Revolution in Britain, the strength of the United Kingdom increased greatly. As a result, countries are cracking down harder and harder against pirates, and pirates in the Caribbean are living in smaller and smaller space, and finally disappear. The same was true of pirates in the Cayman Islands, which by the 19th century had all but disappeared.
The Cayman Islands, without pirates, are not doing well. In addition to agriculture, there is also a small amount of fishing, and there are almost no other resources. So for a long time, it was relatively backward. However, this changed by the 1960s.
In the 1960s, a massive independence movement broke out in the Bahamas, and Jamaica became independent in 1962. Many black forces in Europe have taken the countries of the Caribbean sea as their sphere of influence, and often put a lot of money into these countries. Now that these countries are independent, the funds of some black forces cannot be placed in a safe place. At this time, many black forces set their sights on the Cayman Islands. Due to the relatively relaxed policy here, many black forces have put funds in the Cayman Islands. Thanks to the huge amount of money, the economy of the Cayman Islands gradually developed.
What's more, in 1972, the Cayman Islands enacted a decree "Exempt from non-resident taxation, only non-direct tax." "There is a big loophole in this decree, which means that as long as you are not a Cayman Islander, you do not have to pay personal income tax here, and companies owned by individuals do not have to pay any taxes. In this way, more and more businesses are registered in the Cayman Islands, and more and more businesses are here. The Cayman Islands decree provides many companies with opportunities to evade taxes, which is why it is called a tax haven. The number of companies registered here is much larger than the population of the Cayman Islands, and due to the large number of companies in many countries, the deposit and loan business in foreign currencies is developing faster and faster. It has also become the fourth largest offshore financial center in the world.
From this point on, the financial industry in the Cayman Islands began to develop. At present, the financial industry in the Cayman Islands is still relatively developed and has become the pillar of the local economy. It should be known that the development requirements of the financial industry are relatively low, and the economic added value is very high. That's why the Cayman Islands' GDP per capita has always been among the highest in the world.
However, in addition to the development of the financial industry in the Cayman Islands, its tourism industry has also developed very well. Although the resources are scarce here, there are still many animals and plants on the island, and the scenery is very good. In addition, due to the wealth brought by the financial industry, the infrastructure construction here is relatively perfect. So every year there are a lot of tourists coming to the Cayman Islands. The current Cayman Islands, like tourism and finance, are the backbone of the local economy.
Overall, the current development of the Cayman Islands is relatively good. Medical care and education are free, the welfare system is perfect, and the people's living standards are very high. Not only that, but there are almost no unemployed people here. Although it is listed by many countries as a blacklist area to assist in illegal tax avoidance, it is still relatively well developed here.
Of course, the current Cayman Islands are not independent countries, but British overseas territories. Many people can't figure out why the economic development here and the high standard of living of the people are not separated from British rule.
In fact, it had gained a lot of autonomy in the 1960s. Almost everything in the Cayman Islands is currently decided by itself, and it is only nominally under British rule, and Britain hardly interferes in any affairs here. Perhaps it is precisely because of this that it does not have much impact here to break away from British rule. And after all, The United Kingdom is a global power and has great influence in the world. It nominally belongs to the United Kingdom, and it still has a great role in promoting its development.
Resources:
General History of the World, Cayman Islands