Today

Welcome to an island of no pollution, no billboards, no graffiti, no litter, no rental cars, no unemployment (well, almost), no tolerance for drugs, no illiteracy (well, almost), and no nude or topless beaches. In a changing world, Bermuda remains . . . well, Bermuda.

If there's a sore point among Bermudians today, it's their extreme desire to separate themselves from the islands of the Caribbean, particularly from The Bahamas, in the eyes of the world. They often send angry letters to publishers of maps, reference sources, and travel guides, insisting that Bermuda is not in the Caribbean. As one irate Bermudian put it, "You don't claim that Washington, D.C., is part of Dallas, Texas. They're the same distance apart that Bermuda is from the Caribbean."

Bermuda prides itself on its lack of economic, socioeconomic, and racial problems, many of which plague the Caribbean islands. Bermuda does not tolerate unsavory businesses. What the island would really like to be known for is its stellar performance in banking and multinational business.

During the first decade of the millennium, international business has positioned itself to overtake tourism as Bermuda's primary source of revenue. Before China's takeover of Hong Kong, Bermuda persuaded some of the biggest names in world business to create official domiciles on the island. The trend began in the 1970s, when some Hong Kong businesspeople formed low-profile shipping, trading, and investment companies in Bermuda -- companies that became, in essence, corporate cash cows. That trend continues to positively affect Bermuda's economy.

When Britain surrendered Hong Kong to China in 1997, Bermuda became the largest British colony. A local businessman watched the televised ceremonies in which Britain handed over control, and gleefully remarked, "All we can say is: Thank you very much, Hong Kong, because here come the insurance companies and pension funds." By the end of the 20th century, nearly half of the companies listed on the Hong Kong Stock Exchange -- and even some of the Chinese government's own holding companies -- had established a legal presence in Bermuda, because Bermuda provides such hefty tax breaks. Amazingly, tiny Bermuda has emerged as the biggest and most prosperous of all of Britain's colonies, the bulk of which are now in the Caribbean.

In the early years of the 21st century, Bermuda continues to attract a growing number of American companies that are incorporating in Bermuda to lower their taxes without giving up the benefits of doing business in the United States. Insurance companies have led the way, but now manufacturers and other kinds of companies are following. It's been trumpeted in the press as "profits over patriotism." Becoming a Bermuda company is a paper transaction that can save millions annually.

And as aggressively as Bermuda is pursuing business, it's also more aware than ever of its fragile environment. Bermuda's population density is the third highest in the world, after Hong Kong's and Monaco's. Because the number of annual visitors is 10 times higher than the population, Bermuda has had to take strong initiatives to protect its natural resources. Environmental protection takes the form of stiff anti-litter laws, annual garbage cleanup campaigns, automobile restrictions, cedar replanting (a blight in the '40s and '50s wiped out the native trees), lead-free gasoline, a strict fishing policy, and other measures.

Along the shaky road to self-government, Bermuda had some ugly racial conflicts. Riots in 1968 built up to the assassination of the British governor in 1973. But that was a long time ago; today, Bermuda has the most harmonious race relations in this part of the world, far better than those in the United States, the Caribbean, or The Bahamas. There's still a long way to go, but Bermudians of African descent have assumed important political, administrative, and managerial posts in every aspect of the local economy. Bermuda hasn't quite reached the point where the color of your skin is unimportant, but it has made more significant advancement toward that goal than its neighbors to the south.

In the 21st century, Bermuda's average household income rose to a healthy $68,500 -- contrast that with some of the less fortunate islands in the Caribbean, many of which don't even have the budgets to compile such statistics. Compared with residents of Puerto Rico, Jamaica, and certainly Haiti, no one is really poor in Bermuda. On the downside, home prices in Bermuda are at least three times the median cost of a house in the United States or Canada.

As a tourist destination, Bermuda has impeccable credentials. It was a resort long before Florida, Hawaii, Mexico, and many other places. Over the years, it has successfully exploited its position in the northwest Atlantic between North America and Europe. It is even working to throw off its image as a staid resort, hoping to project a lively, more with-it atmosphere (although it has a long way to go in that department). The United States remains its largest market -- about 86% of visitors are Americans -- but in recent years more and more visitors from Europe, the Far East, and the Near East have been seen dining, drinking, and shopping in the City of Hamilton.

Getting to Know the "Onions"

Even though Bermuda isn't in the onion business the way it used to be, a born and bred islander is still called an "Onion." The term dates from the early 20th century, when the export of Bermuda onions and Easter lilies to the U.S. mainland were the island's major sources of income.

The "Onions" -- a term that still carries a badge of pride -- have their own lifestyle and even their own vocabulary. For example, "Aunt Haggie's children" are frustrating, stupid people; "married by 10 parsons" is a reference to a woman with huge breasts; "backin' up" means gay. You don't vomit in Bermuda, you "Go Europe." "Cockroach killers" (a term you may also hear in the American Southwest) are pointy-toed shoes. Although you'll rarely see it on local menus, the bream fish is called a "shit-bubbler."

Residents of more troubled islands to the south often look with envy upon the "Onions," who have a much higher standard of living than Caribbean islanders do; they also pay no personal income tax and suffer from only a 7% unemployment rate. The literacy rate is high: An estimated 99% of females age 15 and older can read and write, as can 98% of all Bermudian males.

Today's 62,000 residents are mostly of African, British, and Portuguese descent. Bermuda's population density, one of the highest in the world, is about 3,210 per 2.5 sq. km (1 sq. mile). The population is about 61% black, 39% white. Many ethnic minority groups are represented, the largest and most established being the Portuguese; the majority of inhabitants, however, are islanders from the Caribbean or The Bahamas. Some Bermudians can even trace their ancestry back to the island's first settlers, and some to successful privateers and freed slaves.

Britain's influence in Bermuda is obvious in the predominantly English accents, police who wear helmets like those of London bobbies, and cars that drive on the left. Schools are run along the lines of the British system and provide a high standard of preparatory education. Children 5 to 16 years of age must attend school. The Bermuda College, which offers academic and technical studies, boasts a renowned hotel and catering program.

An Island of Religious Tolerance

About a third of Bermuda's population adheres to the Church of England, which has been historically dominant in the colony. Indeed, the division of Bermuda into nine parishes dates from 1618, when each parish was required by law to have its own Anglican church, to the exclusion of any other. That division still exists today, but more for administrative than religious purposes.

Religious tolerance is now guaranteed by law. There are some 10,000 Catholics, many of them from the Portuguese Azores. There are also many members of Protestant sects whose roots lie within what were originally slave churches, among them the African Methodist Episcopal Church. Established in 1816 by African Americans, the sect was transported to Bermuda from Canada around 1870. Today the church has about 7,000 members.

Also found in Bermuda are Seventh-day Adventists, Presbyterians, Baptists, Lutherans, and Mormons. Less prevalent are a handful of Jews, Muslims, Rastafarians, and Jehovah's Witnesses.

Bermuda today boasts more than 110 churches, an average of five per square mile. They range from the moss-encrusted parish churches established in the earliest days of the colony to modest structures with only a handful of members.

Who's Minding the Store?

In essence, Bermuda is a self-governing dependency of Britain, which protects its security and stability. The governor, appointed by the Queen, represents Her Majesty in the areas of external affairs, defense, and internal security.

By choosing to remain a British dependency, Bermuda rejected the trail that many former colonies in the Caribbean (including Antigua) blazed by declaring their independence. Although they remain under the protection of the British, Bermudians manage their own day-to-day affairs. And ever since the people of Bermuda were granted the right to govern themselves in 1968, they have done so admirably well.

Bermuda has a 12-member cabinet headed by a premier. The elected legislature, referred to as the Legislative Council, consists of a 40-member House of Assembly and an 11-member Senate. Bermuda's oldest political party is the Progressive Labour Party, formed in 1963. In 1964, the United Bermuda Party was established; it stayed in power until it was toppled by the Progressive Labour Party in 1998.

Bermuda's legal system is founded on common law. Judicial responsibility falls to the Supreme Court, headed by a chief justice in a powdered wig and a robe. English law is the fundamental guide, and in court, English customs prevail.

The island consists of nine parishes, each managed by an advisory council. The capital, the City of Hamilton, is in Pembroke Parish.

Tourist Dollars & No Income Tax

Bermuda's political stability has proved beneficial to the economy, which relies heavily on tourism and foreign investment.

For much of the island's early history, the major industry was shipbuilding, made possible by the abundant cedar forests. In the second half of the 19th century, when wooden ships gave way to steel ones, the island turned to tourism. Today, tourism is the country's leading industry, with annual revenues estimated at $450 million. Approximately 550,000 visitors come to Bermuda each year; an estimated 86% arrive from the United States, 4% from Britain, and 7% from Canada. Bermuda enjoys a 42% repeat-visitor rate.

Because Bermuda has enacted favorable economic measures, more than 6,000 international companies are registered there. The companies engage mostly in investment holding, insurance, commercial trading, consulting services, and shipping -- but fewer than 275 companies are actually on the island. The reason for this curious situation? Bermuda has no corporate or income tax, so companies register on Bermuda but conduct business in their home countries, thereby avoiding taxes that their home countries would otherwise deduct.

The island's leading exports are pharmaceuticals, concentrates (primarily black rum and sherry peppers), essences, and beverages. Leading imports include foodstuffs, alcoholic beverages, clothing, furniture, fuel, electrical appliances, and motor vehicles. Bermuda's major trading partners are the United States, Great Britain, Canada, the Netherlands, and the Caribbean states.