SIDS: Small Island Developing State

List of Small Island Developing States (UN Members)
1	Antigua and Barbuda	20	Federated States of Micronesia
2	Bahamas	21	Mauritius
3	Bahrain	22	Nauru
4	Barbados	23	Palau
5	Belize	24	Papua New Guinea
6	Cape Verde *	25	Samoa *
7	Comoros *	26	São Tomé and Principe *
8	Cuba	27	Singapore
9	Dominica	28	St. Kitts and Nevis
10	Dominican Republic	29	St. Lucia
11	Fiji	30	St. Vincent and the Grenadines
12	Grenada	31	Seychelles
13	Guinea-Bissau *	32	Solomon Islands *
14	Guyana	33	Suriname
15	Haiti *	34	Timor-Lesté *
16	Jamaica	35	Tonga
17	Kiribati *	36	Trinidad and Tobago
18	Maldives *	37	Tuvalu *
19	Marshall Islands	38	Vanuatu *

List of Small Island Developing States (Non-UN Members/Associate Members of the Regional Commissions)
1	American Samoa	8	Guam
2	Anguilla	9	Montserrat
3	Aruba	10	Netherlands Antilles
4	British Virgin Islands	11	New Calendonia
5	Commonwealth of Northern Marianas	12	Niue
6	Cook Islands	13	Puerto Rico
7	French Polynesia	14	U.S. Virgin Islands

What policy issues and environmental challenges Grenada faces as a small island state, the other 37 states and 14 islands are likely to face as well.

Grenada Introduction and Major Policy Issues

UNDP Barbados-Grenada

The country outline for Grenada aims to offer a general overview of Grenada's social and economic situation. It was prepared using inputs from the Caribbean Development Bank Annual Economic Report for the year 2003-2004, the CIA fact-book and World Bank Discussion Papers available online. The complete list of references is available in the sections named Bibliography and Sources on-line.

I. Social Analysis

Unemployment and poverty remain high even with recent increase of the minimum wage. At 5% of the population, Grenada has the highest incidence of extreme poverty in the Eastern Caribbean and unemployment is estimated to have risen to 12.2% in 2002.[1] In addition, 64% of the population does not have formal education certification and more than 25% of students leaving primary school have no access to secondary school education. While the government increased spending on education from 5.3% of GDP in 2000 to 6.3% in 2002, low teacher qualification remains endemic.[2] Urban migration, urban squatting and increased demand for a safety net for the poor has made a streamlined poverty reduction crucial for Grenada.

Grenada has a 1% prevalence rate of HIV. Providing cost-effective primary healthcare continues to be one of the main challenges for government. The MDG report accounts for an increase in the number of HIV/AIDS orphans in Grenada.

II. Economic Situation Analysis

a. Overview of the recent economic performance

Grenada relies on tourism as its main source of foreign exchange, especially since the construction of an international airport in 1985. The Grenadian economy experienced growth of 5.7% in 2003 following two years of decline since 9/11.[3] This growth reflects a 28.5% increase in the real value-added of the construction sector, which benefited from the tourism industry with the construction of a new cruise ship terminal and a major hotel construction. While the tourism industry expanded by 13.8% in 2003, the overall fiscal deficit widened to 19.4% of GDP.[4] Strong performances in construction and manufacturing, together with the development of an offshore financial industry, have also contributed to growth in national output. Grenada has been removed from the list as an uncooperative tax haven (OECD) 2002 as well as the list for deficiency in management of offshore sector activities (FATF) 2003.[5] Offshore financial services still contracted in 2003 with many banks closing or liquidating.

Tourism, construction, communications, transportation, and manufacturing have mitigated declines in agricultural production. Agricultural output declined by 2.4% in 2003.[6] Sector performance in agriculture has been uneven because approximately 90% of the total farms are small farms of less than 2 hectares.  Agriculture remains important to economic activity in Grenada with potential in modernization of farms.  In response to cocoa and banana production being down, the Cocoa Revitalization Programme has been implemented to facilitate the commercialization of cocoa production. The goal of the program is to revitalize over 1,000 acres of neglected or unproductive cocoa farms.  As part of Grenada's overall economic diversification plan, the banana industry has developed an organic banana project that will export to a promising market in the UK.

The large increase in the island's debt service payments has absorbed government resources at the expense of economic and social development. Grenada's debt payment obligations rose to $112.4 million in 2003 accounting for 34.7% of recurrent revenues.[7]

b. Development Cooperation

The Government received Balance of Payment support of $10.8 million from the IMF under its Emergency Assistance Programme. Grenada commenced implementation of two capital development projects began in 2003: a Bridges and Roads Investment Project and a World Bank-financed Emergency Recovery Project and Disaster Management Project.

In July 2002, The World Bank approved a loan and credit for US$6.04 million to Grenada HIV/AIDS programming.[8] The HIV/AIDS Prevention and Control Project will provide financial assistance to the Government of Grenada to support the implementation of its new national HIV/AIDS strategy with a focus on improvements in the national health system and monitoring the HIV/AIDS epidemic. The project will be implemented over five years.

The Caribbean Development Bank and the International Fund for Agricultural Development have co-financed the Grenada Rural Enterprise Project which aims to reduce rural poverty through rural development.[9]

The Grenada/OECS Education Development Project became effective on January 28, 2004. The project is financed through a US$11.3 million loan from the World Bank, a US$.8 million grant from DFI and a US$2.5 million counterpart from the Government of Grenada.  The project will aid the Ministry with the development of Curriculum Policy, the provision of and Education Management and Information System, and training of principals and teachers.

The EU also provides the following significant support to the Government of Grenada.  This support is as follows:

• EU - A-allocation ' 3.5 million
  This allocation is destined to cover the long-term development activities identified in the context of the response strategy, namely in the tourism sector while 10% of the allocation is to be used to for studies, audits and technical support in the area of regional integration, disaster prevention and monitoring. An indicative allocation for a project in the Information Communication Technology is also foreseen outside the focal area of concentration.
• B-allocation ' 3.9 million
  This allocation is to be used for unforeseen needs such as emergency assistance and support to mitigate adverse affects of instability in export earnings.
• STABEX
  STABEX transfers to Grenada for loss of export earnings from bananas, cocoa, nutmeg and mace are being used to support a major reform of the banana industry in parallel with efforts to diversify both agriculture and the economy as a whole. In particular efforts are underway to strengthen the national economy, improve the balance of payments, enhance the quality of life of the population in rural areas and reduce the rate of rural-urban drift.
• Special Facility of Assistance (SFA)
  Funds available to Grenada under this facility are being used to develop a more competitive agricultural sector, including the maintenance of the banana industry whilst also emphasising the need to diversify rural income generation and the provision of social recovery for displaced farmers and their families.

III. Key Challenges

a. Overview

The major policy issues for the Government at this juncture are:

• Delivery of Education
• Financial Management and Public Indebtedness
• Poverty reduction

The Government's Budget Address titled 'Promoting Economic and Social Development through People's participation' details the government's focus on agricultural development, education and training, youth development and health care. Grenada will need to support private investment through expanded public investment spending in areas such as infrastructure, water/sanitation, as well as in education and health.  The IMF suggests that the government maintain efforts to create an enabling environment for the private sector, rather than simply provide concessions.[10]  Because Grenada's tourism product and infrastructure remain less developed than its competitors, it will need active private sector participation to sustain growth and reduce poverty.

According to the Caribbean Development Bank, Grenada faces a trade-off between balancing fiscal spending in order to enhance growth and the need to manage fiscal sustainability.

b. The Environment

The government of Grenada has established a National Environmental Action Plan and instituted a legislative and policy framework for the regulation of the management of environmental hazards. Grenada's current environmental issues include:[11]

• Soil erosion; beach and coastline erosion
• Waste management, supply, and pollution
• Sedimentation of coastal and river waters
• Forestry and land protection
• Potential loss of habitat and associated bio-diversity

2011 IEDP First Class Meeting Agenda

Time: Nov. 3, Wednesday, 5:30pm-7pm

Location: Weill 1210, Frey Foundation Classroom

1.    Lin Jones: welcome, brief introduction of IEDP, and expectations (5 minutes)

2.   Professor Waltz: brief introduction of the course content and policy areas (10 minutes)

3.   Emily, Sara, Jennifer and Lin: briefly introduction of each committee, the timeline and responsibilities (10 minutes)

4.  Team Building workshop and Committee exercise (60 minutes)

5.   Submit passport copies, emergency contacts and sign contracts (5 minutes)

2012 IEDP Country Selection

It is your opportunity to nominate a country of your interest for the International Economic Development Program (IEDP) 2012! 

Here's how the process will work, so please read carefully and nominate away:

IEDP Country Selection Process - Here's what you need to know (keep reading for NOMINATING INFO):

1. You have one month to select a country of your interest and find a faculty sponsor; the deadline for nomination is Nov. 21, 5 pm (Sunday). 
 
2. The Country Selection will take place in two stages:
First: On Nov. 22, a Survey Monkey will be distributed to all MPP/MPA students to vote upon their top 3 country nominations. (If there are only 3 country nominations, this step will be unnecessary).

Second: On November 29 (Monday), there will be an IEDP Country Selection meeting at which the top 3 nominators will give an 8-10 minute presentation for the countrythey have nominated.  The Ford School Master's students in attendance will then vote on the country finalist.

How to Nominate a Country for IEDP:
By November 21(Sunday) at 5:00pm, submit the following to
ipsaboard@umich.edu with subject line "IEDP Country nomination":

a. Name of the country
b. Ford School Professor who has expressed interest in advising the course AND has contacted Alan Deardorff of his/her interest*
c. Brief statement (max 500 words) for country platform -- see suggested criteria below

In your submissions, consider including information pertaining to the
following criteria:
-- The country must be considered a "developing" country
-- Educational value for participants
-- Not a country the IEDP has been to in the past and will go in 2011(that is, Costa Rica, Czech Republic, Venezuela, Morocco, Cuba, Ethiopia, China, Peru, Jordan, Senegal, Philippines, and Granada)
-- Affordability of the trip (airfare, in-country expenses, visas)
-- Ease of travel within country
-- Safety
-- A Ford School professor must have expressed interest in being an adviser for the course and have contacted Deardorff

Questions? linjones@umich.edu 

University of Michigan Community in Grenada (2)

Michael D. Cohen is a faculty member in the School of Information and a long time affiliate  with Ford School of Public Policy. Michael is a sailor and has taken a dozen of sail trips to Grenada. He was so glad that Grenada was chosen for 2011 IEDP, and kindly offered to share his beautiful photos from Grenada with us.

More Michael's Photos

University of Michigan Community in Grenada (1)

                                    GIEU Grenada 2010

Rough Outlines of Committee Duties

This is just a rough outline of each committee's duties. They may change and evolve along the course of this program.

Fund Raising Committee:

• Assist with grant writing
• Help establish contacts across campus in an effort to best utilize financial opportunities/resources (quality over quantity…important to research and know potential donors!)
• Frequently update a shared spreadsheet, allowing the rest of the group to know how your grant work is coming along
• Write ‘thank you’ follow-ups once grant money is received
• Help maintain organized records of fundraising efforts
• Other fund raising related work

Logistic Committee:

• Arranging air travel to Grenada and lodging
• Arranging travel within Grenada, including daily travel to meeting locations
• Knowing and working with any security issues that may come up during the trip
• Acquiring cell phones for use within Grenada
• Locating and hiring any needed tour guides
• Writing and organizing a “booklet” for each member of the course to review before the trip, detailing important customs, advisories, and basic touristy information.
• Keeping the rest of the class on track for acquiring passports and visas and necessary vaccinations. (depend on nationality)

Meeting/Contact Committee:

• Aggregate contact list from across topics; narrow contact list based on availability, time constraints and equitable distribution
• Contact all parties via email and telephone
• Assemble agenda on c-tools calendar and coordinate with the logistics committee
• Identify which meetings will require translation and work with logistics committee to arrange translator.

Documentation Committee:

• Develop plan for documentation of the trip to Grenada and meetings with stakeholders
• Ensuring that policy reports are shared with all partners, funders and in-country stakeholders
• Prepare for the final presentation
• Other outreach communication tasks
• Support faculty in class

2011 IEDP Application Q & A

Q. I am an undergraduate student, can I apply for IEDP?
A. No. IEDP currently opens to only graduate students at the University of Michigan.

Q. What is the class schedule for IEDP 2011?
A. At this moment, the schedule is not final set yet. However, in the past, IEDP always made great effort to accommodate each participant's schedule.

Q. When will this course be offered?
A. The course will be offered in 2011 winter semester in two parts. The first part is the 7-week course study in traditional class format.The second part is the 1-week field trip to Grenada during spring break. Each part has 1.5 credits.

Q. How many hours per week shall we expect this course to take?
A. The class typically meets total 3 hours a week. However, since this is a student-initiated program, participants are also expected to commit extra time to do the necessary preparation work.

Q. What kind of experience will IEDP offer?
A. Besides the exciting opportunities of studying Grenada's policy issues and meeting with the stakeholders in the country, the IEDP also offers students the great opportunity to participate the preparation of this program. Each participant is expected to work for one of the four preparation committees: fund raising committee, meeting/contact committee, logistic committee, and documentation committee, and gain highly marketable experience in these fields.

2011 IEDP Application

The 2011 IEDP application is open. The deadline will be Oct.1, Friday. Graduate students from Ford School of Public Policy and other graduate/professional schools/programs at the University of Michigan are eligible to apply.

Download Application form and instruction

Welcome our new committee members: Sara Blumenthal and Jennifer Hong!

IPSA/IEDP Information and Election Night - Sept 21 at 6PM in 1230

Are you an (aspiring) international policy wonk?

Do you want to learn more about and engage with int'l issues?

Do you like to plan/coordinate and find yourself naturally organizing events?

Are you excited for this year's IEDP country of focus, Grenada?

If any or all these are YES (or even MAYBE), have we got opportunities for you...

IPSA/IEDP Information and Election Night - Tuesday, September 21 at 6:00PM in 1230 Weill

There are 5 positions that will be filled in this election and will complement the positions already held by returning Ford School students, which include 2nd Year IEDP Co-Chair and IPSA/IEDP Treasurer.  Here are the details about the positions that are open this fall...

IPSA Co-Chair (1st Year)

The 1st Year Co-Chair oversees IPSA activities and events.  This Co-Chair also coordinates and facilitates IPSA meetings and works with the other IPSA officers and members to develop and hold activities within the Ford School and on campus. This officer acts as the primary liaison with Student Activities Committee and the Ford School on behalf of IPSA.  She/he is not automatically admitted into IEDP.

Secretary (1st Year)

The Secretary will be in charge of updating the IPSA Web site, managing the IPSA membership lists, and sending out minutes from IPSA meetings, as well as helping the Events Coordinator plan IPSA activities in Ann Arbor, with the help of the Social Committee and other IPSA members. She/he is not automatically admitted into IEDP.

Social Coordinator

The events coordinator oversees the necessary tasks to coordinate educational and social events for IPSA membership in Ann Arbor. She/he oversees the Social Committee. She/he is not automatically admitted into IEDP.

IEDP COMMITTEE MEMBERS (2)

The two IEDP committee members will work with the IEDP Co-Chair and Treasurer to organize the class and trip to Grenada. Duties may include but are not limited to: leading logistical groups to reserve hotels, plane tickets, etc.; planning in-country meetings and other activities; assisting fundraising activities; and assembling course materials/readings. Committee members should have not only demonstrated experience with such logistical activities but an enthusiasm for Grenada and/or international development. These positions are open to all 1st, 2nd, and 3rd-year Ford School students and would automatically be admitted into IEDP.

Election Procedures

In order to run for these positions you must submit a written platform of no more than 250 words describing why you would fulfill the expectations of the position. Please complete this platform and send them to ipsaboard@umich.edu by Monday, September 20 at 9:00am.  The platforms will be sent to the Ford School Community by 12:00pm the same day for voting consideration.  At the meeting on the 21st, each candidate will have a few moments to speak at the meeting and answer a few questions.  In order to vote, you must be present at the meeting.

You may run for more than one position if you submit a platform for each of the positions for which you wish to run. Voting will take place one position at a time and we will announce who has been elected immediately to allow others to run for a second position (but ONLY if they have already submitted a platform for each position of interest).  Here is the order the positions will be elected at the meeting: IEDP Committee Members (2), IPSA Co-Chair, IPSA Secretary and IPSA Social Coordinator.

For those who would like to know more about IPSA and/or IEDP, there will be an informal Q & A session held in the Grad Student Lounge on Monday September 20 from 11:00 am to 1:00 pm.

Life and debt - trailer

Life and Debt is a feature-length documentary which addresses the impact of the International Monetary Fund, the World Bank, the Inter-American Development Bank and current globalization policies on a developing country such as Jamaica. 

Learn more about this film, go to http://www.lifeanddebt.org/

Have watched this film? Share your thought and opinion with us!

The 2009 International Economic Development Program: Senegal

IPSA/IPC Panel Rediscovering the Caribbean: An overview of economic, environmental and public health policy in the region

IPSA/IPC Panel

Rediscovering the Caribbean: An overview of economic, environmental and public health policy in the region

September 14, 2010. 4:00-5:30 p.m.

Gerald R. Ford School of Public Policy

Annenberg Auditorium. 1120 Weill Hall

Panelists:

Susan M. Collins, Joan and Sanford Weill Dean of Public Policy

Alan Deardorff, Gerald R. Ford School of Public Policy and Department of Economics

Mark B. Padilla, School of Public Health

Susan Waltz, Gerald R. Ford School of Public Policy

IPSA/IPC panel on “Rediscovering the Caribbean: An overview of economic, environmental, and public health policy in the region” will provide an overview of various policy issues in the Caribbean, helping us better understand this important neighboring region. The panelists will discuss the political features of the policy making environment, macroeconomic performance and policy in the Caribbean region, international trade policy and trade agreements, and ecological association between HIV risk and tourism.

Economy of Grenada

Grenada has a largely tourism-based, small, open economy. Over the past two decades, the economy has shifted from one of agriculture-dominant into that of services-dominant, with tourism serving as the leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and mace (Grenada is the world’s second largest producer of nutmeg after Indonesia). Other crops for export include cocoa, citrus fruits, bananas, cloves, and cinnamon. Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export.

Economic growth picked up in the late 1990s following slow growth and domestic fiscal adjustment in early years of the decade. Despite an expansionary fiscal policy, the public debt remained moderate at around 50 percent of GDP as deficits were financed partly by privatization receipts. Since 2001, economic growth declined caused by adverse shocks such as a slowdown in the global economy and natural disasters. To deal with the shocks, fiscal policy became more expansionary while privatization receipts declined. As a result, public debt increased sharply to near 110 percent of GDP in 2003. Economic conditions worsened when Hurricane Ivan hit the country in September 2004; progress in fiscal consolidation was impeded as government revenues fell and policy priority was shifted to post-hurricane relief.

Although reconstruction has proceeded quickly with significant aid from the international community, tourism and agricultural activities remain weak and nearly offset the stimulus from the reconstruction boom. The country is still facing the difficult task of reconstruction and recovery, while public debt is unsustainable and the government faces large financing gaps. In the years ahead, reinvigorating growth will be a high priority, and continued efforts are needed to address vulnerabilities.

After experiencing GDP growth averaging nearly six percent a year in the late 1990s, economic growth declined considerably after 2001 as a result of a decline in the tourism industry following the September 11, 2001, terrorist attacks, and damages caused by several hurricanes.

The economy of Grenada was brought to a near standstill in September 2004 by Hurricane Ivan, which damaged or destroyed 90 percent of the country's buildings, including some tourist facilities. In July 2005 Hurricane Emily struck Grenada again as the country was still recovering from the impact of Hurricane Ivan. Besides the negative impacts to the tourism industry, the two devastating hurricanes destroyed or significantly damaged a large percentage of Grenada’s tree crops, which may take years to recover.

As the damage of Hurricane Ivan to the economy exceeded 200 percent of GDP, economic growth registered a negative growth of three percent in 2004, compared with a positive growth rate of 5.8 percent in 2003. Although signs of recovery have been seen in Grenada after the damage inflicted by Hurricanes Ivan and Emily, economic conditions remain difficult; GDP is projected at a growth rate of only one percent for 2005.

With the absence of sustained growth, the fiscal situation started to deteriorate after 2001 reflecting a continued expansionary policy with sharp increase in spending on social sectors, the wage bill, and goods and services. As a result, the fiscal deficit rose to 8.5 percent of GDP in 2001 from 3.2 percent in 2000. The fiscal situation remained shaky in 2002 with the deficit widening to 19.2 percent of GDP due to dampened output from Tropical Storm Lili. As the economic began to recover in 2003, the government began to take steps for fiscal consolidation, and the fiscal deficit fell to 4.8 percent of GDP. But progress in fiscal consolidation was impeded in 2004 as the government policy changed abruptly to post-hurricane relief. Meanwhile, government revenues decreased as a result of the impact of the hurricanes on the economy.

While economic growth has declined since 2001 due to adverse shocks, including slowdown in the global economy and natural disasters, fiscal policy became more expansionary when privatization receipts declined. As a result, public debt has increased sharply to over 100 percent of GDP since 2002; it remained as high as near 130 percent of GDP in 2004.

Grenada is a member of the Eastern Caribbean Central Bank (ECCB), which manages monetary policy and issues a common currency for all the member countries. Inflation has remained low and stable within the framework of the currency board arrangement, with inflation averaging at two percent over the past 15 years.

Grenada's current account balance has remained in large deficit due to its heavy dependence on import of most consumer goods and domestic investment. Following an average deficit of around 20 percent of GDP from 1997 to 2000, the current account deficit has increased to over 30 percent of GDP since 2001 due to higher import demand combined with lower receipts from tourism and nutmeg exports. The current account deficits are financed by inflows of foreign direct investment, official grants and loans, and commercial borrowing by the private sector.

Grenada’s economy is vulnerable to external shocks considering its high dependence on tourism, exports, and imports of most of the goods that are consumed or invested domestically. It is also prone to other adverse shocks such as natural disasters.

In the aftermath of Hurricanes Ivan and Emily, the priority now for Grenada is to continue the recovery process necessary to restore the infrastructure that was devastated by the hurricanes. The international community has disbursed significant amounts of aid, including financial help under the International Monetary Fund's emergency assistance policy for natural disasters and assistance from the World Bank and the Caribbean Development Bank.

In the context of regional economic development, further integration into the Eastern Caribbean regional economy will help enhance Grenada’s competitiveness and increase its scale of economy in production, marketing and distribution.

 http://en.wikipedia.org/wiki/Economy_of_Grenada

History of Grenada

Before the arrival of Europeans, Grenada was inhabited by Carib Indians who had driven the more peaceful Arawaks from the island. Columbus landed on Grenada in 1498 during his third voyage to the new world. He named the island "Concepcion." The origin of the name "Grenada" is obscure, but it is likely that Spanish sailors renamed the island for the city of Granada. By the beginning of the 18th century, the name "Grenada," or "la Grenade" in French, was in common use. 

Partly because of the Caribs, Grenada remained uncolonized for more than 100 years after its discovery; early English efforts to settle the island were unsuccessful. In 1650, a French company founded by Cardinal Richelieu purchased Grenada from the English and established a small settlement. After several skirmishes with the Caribs, the French brought in reinforcements from Martinique and defeated the Caribs the last of whom leaped into the sea rather than surrender. 

The island remained under French control until its capture by the British in 1762, during the Seven Years' War. Grenada was formally ceded to Great Britain in 1763 by the Treaty of Paris. Although the French regained control in 1779, the island was restored to Britain in 1783 by the Treaty of Versailles. Although Britain was hard pressed to overcome a pro-French revolt in 1795 Grenada remained British for the remainder of the colonial period. 

During the 18th century, Grenada's economy underwent an important transition. Like much of the rest of the West Indies it was originally settled to cultivate sugar which was grown on estates using slave labor. But natural disasters paved the way for the introduction of other crops. In 1782, Sir Joseph Banks, the botanical adviser to King George III, introduced nutmeg to Grenada. The island's soil was ideal for growing the spice and because Grenada was a closer source of spices for Europe than the Dutch East Indies the island assumed a new importance to European traders. 

The collapse of the sugar estates and the introduction of nutmeg and cocoa encouraged the development of smaller land holdings, and the island developed a land-owning yeoman farmer class. Slavery was outlawed in 1834. In 1833, Grenada became part of the British Windward Islands Administration. The governor of the Windward Islands administered the island for the rest of the colonial period. In 1958, the Windward Islands Administration was dissolved, and Grenada joined the Federation of the West Indies. After that federation collapsed in 1962, the British Government tried to form a small federation out of its remaining dependencies in the Eastern Caribbean. 

Following the failure of this second effort, the British and the islands developed the concept of associated statehood. Under the Associated Statehood Act of 1967 Grenada was granted full autonomy over its internal affairs in March 1967. Full independence was granted on February 7, 1974. 

After obtaining independence, Grenada adopted a modified Westminster parliamentary system based on the British model with a governor general appointed by and representing the British monarch (head of state) and a prime minister who is both leader of the majority party and the head of government. Sir Eric Gairy was Grenada's first prime minister. 

On March 13, 1979, the new joint endeavor for welfare, education, and liberation (New Jewel) movement ousted Gairy in a nearly bloodless coup and established a people's revolutionary government (PRG), headed by Maurice Bishop who became prime minister. His Marxist-Leninist government established close ties with Cuba, the Soviet Union, and other communist bloc countries. 

In October 1983, a power struggle within the government resulted in the arrest and subsequent murder of Bishop and several members of his cabinet by elements of the people's revolutionary army. Following a breakdown in civil order, a U.S.-Caribbean force landed on Grenada on October 25 in response to an appeal from the governor general and to a request for assistance from the Organization of Eastern Caribbean States. U.S. citizens were evacuated, and order was restored. 

An advisory council named by the governor general administered the country until general elections were held in December 1984. The New National Party (NNP) led by Herbert Blaize won 14 out of 15 seats in free and fair elections and formed a democratic government. Grenada's constitution had been suspended in 1979 by the PRG but it was restored after the 1984 elections. 

The NNP continued in power until 1989 but with a reduced majority. Five NNP parliamentary members, including two cabinet ministers, left the party in 1986-87 and formed the National Democratic Congress (NDC) which became the official opposition.

In August 1989, Prime Minister Blaize broke with the NNP to form another new party, The National Party (TNP), from the ranks of the NNP. This split in the NNP resulted in the formation of a minority government until constitutionally scheduled elections in March 1990. Prime Minister Blaize died in December 1989 and was succeeded as prime minister by Ben Jones until after the elections. 

The NDC emerged from the 1990 elections as the strongest party, winning seven of the 15 available seats. Nicholas Brathwaite added two TNP members and one member of the Grenada United Labor Party (GULP) to create a 10-seat majority coalition. The governor general appointed him to be prime minister. 

http://www.historyofnations.net/northamerica/grenada.html