Bermuda

From ArticleWorld

Bermuda is a self-governing British colony comprising of about 300 coral islands in the Atlantic Ocean southeast of Cape Hatteras. The first settlement was made in 1609 by British colonists shipwrecked on their way to Virginia. Tourism is crucial to its economy. Hamilton, on Bermuda Island, the largest in the archipelago, is the capital.

Bermuda was discovered by the early 1500s, probably in 1505. It was certainly known by 1511, when Peter Martyr published his Legatio Babylonica, which mentioned Bermuda. The discovery is attributed to a Spanish explorer, Juan de Bermudez. Both Spanish and Portuguese ships used the islands as a replenishment spot for fresh meat and water, but legends of spirits, now thought to have stemmed only from the callings of raucous birds, kept them from attempting any permanent settlement.

The island became permanently inhabited when the Sea Venture, on its way to the new colony in America, was wrecked off Bermuda in 1609 (as depicted on the territory's Coat of Arms), and left the first colonists in possession of a new territory. (William Shakespeare's play The Tempest may have been influenced by William Strachey's account of this shipwreck.) The land was claimed by the British Crown and control was granted to a company in order to produce tobacco for the markets in London. The islands gained the name the Somers Isles, named after Sir George Somers, the captain of the Sea Venture.

Due to the good quality of the wood that grew here, boat building became a major industry on the island. The Bermuda sloop became highly regarded for its speed and maneuverability. After the American Revolution, the British Royal Navy began improving the harbors and built a large dockyard on Ireland Island, in the west of the chain. Thereafter the navy used the bases as a strategic asset.

Bermuda had been a strategically important military base since the war of 1812, but it became particularly important during World War II, because of its central location in the North Atlantic Ocean. In 1941, the United States signed a lend-lease agreement with the United Kingdom giving the British surplus US Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8km² (2.25 mi²) of land largely reclaimed from the sea. The US Naval Air Station was on St. David's Island, while the US Naval Air Station Annex was at the western end of the main island in the Great Sound. Both bases were closed on 1 September 1995, as were British and Canadian bases on the island. Unresolved issues concerning the 1995 withdrawal of US forces - primarily related to environmental factors - delayed the formal return of the base lands to the Government of Bermuda, which finally happened in 2002.

Executive authority in Bermuda is invested in The Queen and is exercised on her behalf by the Governor. The Governor is appointed by the Queen on the advice of the British Government. Defense and Foreign Affairs remain the responsibility of the United Kingdom.

Bermuda, as an offshore tax haven, has a highly developed economy focused on international business and tourism. Its per capita income is approximately equivalent to the United States. Bermuda is regarded as a premier offshore business jurisdiction, with no direct taxes on personal or corporate income. The local tax system is based upon payroll and consumption taxes. Many leading international insurance companies are based in Bermuda. Bermuda is a financial exporter in both insurance and other financial services.