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Economic growth has been con- strained by a lack of infrastructure. Large tracts of arable land and timber are not serviced by any form of road. Some roads, including sections of major highways, are heavily damaged or subject to closure during rainy periods, although current road and bridge construction is improving the highway system. Electric service is costly and sometimes irregular, and many rural areas are not part of any power grid. Inadequate roads and shallow ports constrain international transportation.

In recognizing infrastructure needs of the country, the government has emphasized capital expenditure in recent budgets. It has also developed fair development concessions to attract both foreign and in-country capital investment and to stimulate the private sector.

Many of the Americans doing business in Belize are comfortable with the business environment. The Belizean legal system, like that of the United States, was inherited from the British. The Government encourages free enterprise. The official language is English. Most established Belizean firms are experienced in dealing with . firms and are familiar with . business practices. Direct air links to Miami, Houston, and New Orleans, and regularly scheduled sea service to Miami, along with the depreciation of the . dollar to which the Belizean dollar is linked, make it advantageous for Belizean firms to look to American supply sources rather than traditional British and European sources.

The small market size is both an advantage and a disadvantage to . exporters. On the one hand, the small market may not justify large-scale export efforts. On the other, it provides a market which may be overlooked by major exporters. Many . exports to Belize are initiated by Belizeans seeking . products and making small orders to . manufacturers. Belizeans often travel to Miami, Houston, or New Orleans to make their purchases. Transportation links between the United States and Belize also give . suppliers a distinct advantage over European and Far Eastern competition.

The Government of Belize has taken a number of initiatives to encourage foreign investment in Belize. Foreign investors are eligible for the samedevelopment concessions available to local investors. These normally include provisions for tax holidays, relief from import duties on capital equipment and raw materials, and guaranteed repatriation of capital. The Government especially welcomes investment proposals which involve one or more of the following features: transfer of technology, financial resources, or expertise; utilization of local natural resources; generation of foreign exchange earnings or savings; and the hiring and training of local employees. The training of local employees is particularly emphasized in the tourism sector. The Government encourages investment throughout the nation, particularly in less-developed regions.

A development or tax concession is not required to make an investment in Belize, but many investors use such a concession as a factor in their investment decisions. The administration of the current development and tax concession process can at times discourage potential investors. Although the process normally takes no more than 60 days for approval following submission of a properly documented application, delays of up to six months have been reported. Evaluation time rises if the authorities have not seen a similar proposal before. Belizean Government agencies and departments are small and understaffed. Thus cautious handling is common, particularly when a proposal contains unfamiliar elements.

Some investors often find that receiving a concession is only the first step in investment. They must sometimes go to other Government agencies to get further permits. However, after the necessary concessions, permits, and licenses are granted, dealings with the Government are minimal. The Government does a good job of allowing businesses to go about their legitimate affairs without interference.

Belize has formulated a thoroughly defined investment policy, published as The Belize Investment Code, which sets out the development priorities for the country. Revised in 1985, the code is applicable to both foreign and local investors, The investment code ranks agriculture (including livestock and agroindustry) as the highest priority for national economic development, followed by tourism, forestry, light industry, "mariculture," and deep-sea fishing and processing. Investors may obtain copies by writing to the Ministry of Economic Development, . Box 41, Belmopan, Belize, Central America.

While 100 percent foreign ownership of an enterprise in Belize is permitted, whenever possible the Government encourages Belizean participation, usually in the form of joint ventures. The following ownership forms are recognized and permitted: private companies, joint ventures, partnerships, sole proprietorships, and subsidiaries or branches of foreign companies.

Belize has no regulations constraining or barring takeovers or acquisitions. Reinvestment or repatriation of earnings is likewise unrestricted.

Foreigners who wish to purchase more than one-half acre of urban land or more than 10 acres of rural land must comply with the regulations contained in the Alien Landholding Ordinance of 1973. Under the terms of the Ordinance, prospective buyers must first file a development plan for the property with the Ministry of Natural Resources. The property is then normally granted on a leasehold basis for three years, with the lease being convertible to a freehold title if the terms of the development plan have been met.

Funding for investments is sometimes available through the . Export-Import Bank or the . Overseas Private Investment Corporation (OPIC). Funding for development projects is also possible from the multilateral development banks, such as the World Bank and the Caribbean Development Bank.

Investment opportunities in Belize are most numerous and promising in the areas of agriculture and tourism. Citrus, bananas, winter vegetables, cacao, and tropical fruits and juices all may be produced efficiently in Belize. The prudent investor considering such a venture will consider access to export markets early in the planning stages of investment. The domestic market is too small to justify or sustain a new large investment for most agricultural products.

Best prospects for increased exports to Belize are processed foodstuffs, construction supplies, automobile parts and supplies, consumer goods, and agricultural supplies and equipment. Demand for high-tech goods, such as personal computers, is also rising.

Tourism offers great potential for investment in Belize. Diving and sailing, fresh and salt water sport fishing, Mayan ruins, jungle animals, and exotic birds all attract visitors.

Further information on investment opportnunities and procedures in Belize may be obtained from the following sources:

* Ministry of Economic Development, . Box 41, Belmopan, Belize, tel. (501) 8-22526/22527, telex: MF INVEST.

*Belize Chamber of Commerce, Belize Export and Investment Promotion Unit (BEIPU), . Box 291, Belize City, Belize, tel. (501) 2-44913/44138, telex: 121 CHAMBER BZ.

* Embassy of the United States of America, . Box 286, Belize City, Belize, tel. (501) 2-77161, telex: 213 AMEMBASY BZ.

* Embassy of Belize, 3400 International Drive, NW., Suite 2-J, Wash., . 20008, tel. (202) 363-4505.

* Caribbean Basin Information Center, Room 3200, tel. (202) 377-0703; Caribbean Basin Division, Room H3020, tel. (202) 377-2527, . Department of Commerce, Wash., . 20230.