a
A Belize government-sponsored Development Finance Corporation was set up in 1977 to facilitate the establishment of new industries. As a result, number of small enterprises have been set up over the past few years to manu- facture furniture, cement and concrete, metal doors and windows, clothes, cigarettes, soap, rolled steel bars and boats. Tax concessions and other incentives encourage this diversification.
Nevertheless, agriculture predominates in a country where the small size of the domestic market limits the possibilities for industrial development. The major agricultural export crops are sugar, which provides over 70 per cent of export earnings, citrus and bananas. Sugar production has grown rapidly and great potential exists for grain production. Under-population, together with the relatively high cost of Belize's infrastructure, have been major factors in limiting growth in the agricultural sector, but there is a surplus of cattle produce for export and fish exports are increasing. Cattle ranching and banana production have good long-term prospects. The outlook for tourism, which also has a promising future, and foreign investment should improve when Belize becomes independent. The Government intend continue encouraging foreign investment in partnership with Belizeans.
Belize has used her current budgetary surplus to fund capital development. However, external assistance on concessional terms from multilateral and bilateral donors continues to fund the major part of capital expenditure. Both exports and imports have grown rapidly; but external debt service at 1.4 per cent is low in relation to foreign exchange receipts. British aid will continue after independence, although in time grants will become loans. At present Belize receives 52 per cent of capital expenditure (about £3.7 million) from Britain on concessionary terms. Further aid may come from other donors. Canada and the Caribbean Development Bank are already major contributors.