Turks and Caicos Islands (kī'kōs) , dependency of Great Britain (2005 est. pop. 20,600), 166 sq mi (430 sq km), West Indies. There are more than 30 cays and islands, of which only six are inhabited. The islands are geographically a southeastern continuation of the Bahamas. The capital is at Cockburn Town on Grand Turk. Lobster and conch are primary exports; the economic mainstays are offshore banking and tourism. There is also an underground economy based on the transportation of illegal narcotic drugs. The population is largely of African descent. The islands were first visited by Europeans in 1512 when Ponce de León landed there.

Economy

The economy of the Turks and Caicos is based on tourism, fishing, and offshore financial services. Most capital goods and food for domestic consumption are imported. The United States was the leading source of tourists in 1996, accounting for more than half of the 87,000 visitors; another major source of tourists is Canada. Tourist arrivals had risen to 93,000 by 1998. Major sources of government revenue include fees from offshore financial activities and customs receipts. The territory's gross domestic product was about $216 million (per capita $11 500) in 2002, with a real growth rate of about 4,9% (2000) and an inflation rate of about 4%. The labour force totalled 4848 workers in 1990, one-third of whom work in government and one-fifth of whom work in agriculture and fishing; the rest are employed in tourism, financial, and other services. The unemployment rate is about 10%. The territory takes in revenues of $47 million against expenditures of $33.6 million and receives economic aid, $5.7 million in 1995. The territory's currency is the United States dollar, with a few government fines (such as airport infractions) being payable in British pounds.
The primary agricultural products include limited amounts of maize, beans, cassava (tapioca) and citrus fruits. Fish and conch are the only significant export, with some $169.2 million of lobster, dried and fresh conch, and conch shells exported in 2000, primarily to the United States and the United Kingdom. In recent years, however, the catch has been declining. The territory used to be an important trans-shipment point for South American narcotics destined for the United States, but due to the ongoing pressure of a combined American, Bahamian and Turks and Caicos effort has this trade been greatly reduced.
The islands import food and beverages, tobacco, clothing, manufactures, and construction materials, primarily from the United States and the United Kingdom. Imports totalled $175.6 million in 2000.
The islands produce and consume about 5 GWh of electricity, all from fossil fuel.

History

The islands of the Turks and Caicos were first populated by Carib amerindians but, shortly after the islands' discovery by Juan Ponce de Leon in 1512, Spanish explorers began raiding the archipelago for slaves. Though many nations controlled the islands, official settlement didn't occur right away. For several decades around the turn of the 18th century they became popular pirate hideouts. Bermudian salt collectors were the first to settle the islands in 1681.
After the American Revolution took place many loyalists fled to British Caribbean colonies, including the Turks and Caicos, where cotton became an important crop briefly. There was a great deal of political turmoil surrounding the ownership of the Turks and Caicos even within the British empire: The Bahamas and Bermuda were fighting for control of the archipelago. The British government eventually assigned political control to The Bahamas, which the Turks and Caicos remained a part of until the 1840s.
The islands petitioned for their independence from The Bahamas, but were eventually re-assigned to become a dependency of Jamaica. By 1973 they had gained independence and their own governor. Their political troubles in recent years have resulted in a rewritten constitution.