The Traditional Plantation Economy
The French originally settled the Seychelles in 1770, setting up plantations which relied heavily on slave labour to produce cotton, sugar, rice, and maize. The British took control during the Napoleonic Wars, but without removing the French upper class. After the British prohibited slavery in 1835, the influx of African workers did not end because British warships captured Arab slavers and forced the liberated slaves to work on plantations as "apprentices" without pay. However planters soon realised they could grow coconuts with less labour and more profit than the traditional boats.
Plantations were the main industry of the Seychelles until 1971, when the international airport opened. Overnight tourism became a serious industry, basically dividing the economy into plantations and tourism. In the 1960s, about 33% of the working population worked at plantations but by 2006 it was less than 3%.
While the tourism and industrial fishing industries were on a roll in the late 1990s, the traditional plantation economy atrophied. Cinnamon barks and copra -- traditional export crops—dwindled to negligible amounts by 1991. There were no exports of copra in 1996; 318 tons of cinnamon bark was exported in 1996, reflecting a decrease of 35% in cinnamon bark exports from 1995.
Despite attempts to improve its agricultural base and emphasize locally manufactured products and indigenous materials, Seychelles continues to import 90% of what it consumes. The exceptions are some fruits and vegetables, fish, poultry, pork, beer, cigarettes, paint, and a few locally made plastic items. Imports of all kind are controlled by the Seychelles Marketing Board (SMB), a government parastatal which operates all the major supermarkets and is the distributor and licensor of most other imports.
In an effort to increase agricultural self-sufficiency, Seychelles has undertaken steps to make the sector more productive and to provide incentives to farmers. Much of the state holdings in the agricultural sector have been privatized, while the role of the government has been reduced to conducting research and providing infrastructure.
Read more about this topic: Economy Of Seychelles
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