British Honduras - Economy

Economy

Forestry dominated the economy of British Honduras. Initially, the focus was upon logwood, which was used in dye manufacture. Falling prices for logwood in the 1770s led to a shift toward logging mahogany, which would dominate the economy until the mid-20th century. As the logging of mahogany was far more labour intensive, this also led to a significant increase of the importation of African slaves to the colony, mainly from Britain's Caribbean colonies. Due largely to extremely harsh working conditions the colony experienced four slave revolts; the first in 1765, and the last in 1820. Slavery was finally abolished in 1838. Exports of mahogany continued as an economic mainstay, as commercial agriculture remained unprofitable due to unfavourable colonial tax policies and trade restrictions. Colonial officials provided incentives during the 1860s that resulted in a large influx of Americans from the Southern United States, especially Louisiana, during and after the American Civil War. The Confederate settlements in British Honduras introduced large scale sugar production to the colony and proved that it could be profitable where others had previously failed.

The lack of diversification in the economy left the colony very susceptible to swings in the mahogany market. The Great Depression of the 1930s, and an especially destructive hurricane in 1931, further depressed the economy and already low living conditions. From 1914 on, the forestry industry was in steady decline, outside of a brief revival during World War II (1939–1945). In the 1950s agriculture finally became a dominant part of economy, and in the 1970s fishing became significant. Land reform after World War II aided this expansion of the economy.