The form of government in the Netherlands Antilles is a Parliamentary Democracy. The Governor, who is the representative of the Queen of the Netherlands, is nominated by the federal Government and is appointed by the Crown.

As Chief Administrator, the Governor exercises executive power over external affairs and is assisted by an advisory council. Executive power in internal affairs is vested in the Prime Minister and his 8-member cabinet. The 22 member Parliament of the Netherlands Antilles is a uni-chambered legislative body. Members are elected to a 4-year term.

On the Island level the kingdom is represented by a Lieutenant Governor who is also the local chief Administrator. Executive power is vested in an Executive Council consisting of five commissioners who must enjoy the support of the majority of the eleven-seat Island Council (the island’s law-making body Economy

The economy of St. Maarten is based almost entirely on tourism. It is estimated that 85% of all employment is related directly and indirectly to tourism. St. Maarten has one of the highest per-capita incomes in the Caribbean. It’s tourism product offers visitors one of the most diverse and exciting vacation experiences in the Caribbean. In addition to tourism, the other major forms of economic activity are financial services and trade with the neighboring islands.

St. Maarten produces very few consumable goods. Government is looking into ways of diversifying the economy, particularly with industry that would support the main economic activity and would not hurt the tourism product. Government is currently involved in preparing zoning plans, which will reserve an area for light industry/manufacturing and an area for heavy industry. Once this is in place efforts would be made to attract industries.

The island's official currency is the Antillean guilder, but the American dollar is extensively used. The exchange rate between the two currencies is fixed. One American dollar can be converted in 1.78 Antillean guilders. The monetary system of the island is regulated by the Central Bank of the Netherlands Antilles.