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How did U.S. Prohibition create business opportunities in The Bahamas?

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Flag of The Bahamas — The Bahamas The flag of The Bahamas was officially hoisted on July 10, 1973, the date of the nation's independence from the United Kingdom.

During the era of Prohibition in the United States (1920–1933), the Bahamas became a primary source of supply for illicit liquor smuggled into the country.12

Because the U.S. government had prohibited the legal sale of alcohol, a significant demand for foreign-made commercial liquor emerged. The Bahamas served as a key hub for this trade, with rum-running ships transporting goods to rendezvous points just outside U.S. territorial waters, where the cargo was transferred to smaller, high-speed craft designed to outrun the U.S. Coast Guard.2

This activity resulted in a temporary influx of considerable wealth into the islands through the handling and distribution of liquor. However, this economic boost was transient; it did not establish a firm or lasting economic base for the islands, nor did it make a permanent contribution to their development.1