Drug traffickers from South America began using Caribbean island countries in the Bahamas in the 1970's for both business and strategic reasons. The Bahamas became both a way station for drugs and a money-laundering center, serving as a model for other small island nations. St. Maarten, the Dutch half of St. Martin; St. Kitts; and Antigua have all become involved in offshore banking and servicing the world's underground economy, including drug trafficking. Their economies depend on casino, tourists, and banking systems that cater to hiding money for tax evaders and organized criminals, many specializing in smuggling narcotics. Lip service to outside law enforcement has traditionally been a higher form of art in dependent Third World countries, because their only apparent chance at significant economic success comes from the kinds of activities in which they are involved. Notes and 44 references (Author abstract modified)