The Arawak Indians were the first inhabitants of the Bahamas. Columbus's first encounter with the New World was on Oct. 12, 1492, when he landed on the Bahamian island of San Salvador. The British first built settlements on the islands in the 17th century. In the early 18th century, the Bahamas were a favorite pirate haunt.

The Bahamas were a Crown colony from 1717 until they were granted internal self-government in 1964. The islands moved toward greater autonomy in 1968 after the overwhelming victory in general elections of the Progressive Liberal Party, led by Prime Minister Lynden O. Pindling, over the predominantly white United Bahamians Party. With its new mandate from the black population (85% of Bahamians), Pindling's government negotiated a new constitution with Britain under which the colony became the Commonwealth of the Bahama Islands in 1969. On July 10, 1973, the Bahamas became an independent nation.

Once heavily reliant on agriculture and fishing, the Bahamas has diversified its economy into tourism, financial services, and international shipping. While it enjoys a per capita income that is among the top 30 in the world, there is a big gap between the urban middle class and poor farmers. In addition, the nation is vulnerable to hurricanes, which regularly inflict serious damage.

Hubert Ingraham became prime minister in May 2007 after his Free National Movement, an opposition party, won parliamentary elections.