CLOSE X

Blogs

Countries with Overseas Territories- Its Uses for Economy

Jan-26-2026Blog by – Mr. Dhruv AjmeraRead Time: 15 Min.Word Count: 1800
4Countries with Overseas Territories- Its Uses for Economy

Speaking at the World Economic Forum in Davos on Wednesday, United States President Donald Trump said the US needs “ownership” of Greenland to defend itself from adversaries like China and Russia, but said he “won’t use force” to acquire the self ruling island, which is part of the Kingdom of Denmark.


Across the world, various nations maintain overseas territories that house strategic and military installations, but also for historical, economic and environmental reasons. Many of these countries with overseas territories are remnants of colonial empires. While many former colonies around the world gained independence in the 20th century, they often chose to maintain their links for economic stability, security or because they were too small to be viable as fully independent nations.


From the British and French overseas territories to the US owned regions in the Caribbean and the Pacific, these territories exercise varying degrees of self government and autonomy.

THE COUNTRIES ARE BELOW WITH  THE TERRITORIES


1)  United Kingdom – 14 territories

The UK has 14 overseas territories across the Atlantic, Caribbean, Pacific and polar regions.

The inhabited territories include Anguilla, Bermuda, British Virgin Islands, the Cayman Islands, Falkland Islands, Gibraltar and Montserrat. These are self governing, with the UK responsible for defence and foreign affairs and some of them function as major UK overseas islands financial hubs


The UK also administers regions which are sparsely populated to the British Antarctic Territory, British Indian Ocean Territory, Pitcairn Islands, South Georgia Island and the South Sandwich Islands, as well as Akrotiri and Dhekelia bases in Cyprus. These are mainly used for military, scientific and environmental purposes.


In a statement on Monday, an official UK government spokesperson said the decision had been made because the UK-US military base on Diego Garcia, one of the UK overseas territories, was “under threat after court decisions undermined our position and would have prevented it operating as intended in future.” The base is leased to the US but operates as a joint UK-US base.


The UK also has three Crown Dependencies, which, unlike the Overseas British Territories, have never been colonies and are not part of the United Kingdom. They have their own tax systems and courts. The UK is only responsible for their defence and foreign affairs. Crown Dependencies are possessions of the British Crown, owing allegiance to the monarch rather than the UK government.


They include the self governing Channel Islands of Jersey and Guernsey near the French Normandy coast. The Isle of Man, located in the Irish Sea between the UK and Ireland, is also a Crown Dependency, enjoying self governance while maintaining strong ties with the UK.


2) United States – 14 territories

The US has five permanently inhabited territories and nine which are uninhabited, mainly in the Caribbean and the Pacific.


The inhabited territories are: Puerto Rico, Guam, the US Virgin Islands, American Samoa and the Northern Mariana Islands. Puerto Rico is the most populous and is a self-governing commonwealth. These territories have local governments but limited representation at the federal level.


The US also controls a group of mostly uninhabited islands commonly referred to as the US Minor Outlying Islands, which are primarily used for military or strategic purposes. The US also has global US military bases with all. These are: Baker Island, Howard Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Atoll, Navassa Island, Palmyra Atoll and Wake Island.

3) France – 13 territories

France has 13 overseas territories spread across the Atlantic, Caribbean, Indian Ocean, Pacific and South America. Unlike the UK and US territories, some of these are fully integrated into France as administrative regions, while others are overseas “collectives”.


Five French Overseas Territories are Guiana, Guadeloupe, Martinique, Mayotte and Reunion – are fully integrated parts of France. They have representatives in the French parliament and use the euro as their currency. French Guiana is home to the Guiana Space Centre, where space launches are conducted by several European private companies and government agencies.


France administers French Polynesia, New Caledonia, Saint Pierre and Miquelon, Wallis and Futuna, Saint Martin and Saint Barthelemy, and Clipperton Island, all of which have varying degrees of autonomy.


France also claims the French Southern and Antarctic Lands, which are uninhabited and used mainly for scientific research and environmental protection. However, some countries such as Mauritius, Madagascar and the Comoros dispute France’s sovereignty over these islands.

4) Australia – 7 territories

Australia has seven overseas territories, three of which are inhabited – Norfolk Island, Christmas Island and the Cocos (Keeling) Islands. Residents of these islands are Australian citizens, and the Australian overseas territories have various levels of governance.


The four mostly uninhabited territories that Australia controls are Heard Island and McDonald Islands, Ashmore and Cartier Islands, the Coral Sea Islands Territory and the Australian Antarctic Territory. These are primarily used for scientific research, meteorological monitoring and the administration of Australia’s maritime jurisdiction

5) The Netherlands – 6 territories

The Netherlands has six territories in the Caribbean.


Three – Aruba, Curacao and Sint Maarten – have their own governments, parliaments and prime ministers and are known as “constituent” countries. Aruba gained this status in 1986, with Curacao and Sint Maarten becoming constituent countries in 2010.


The other three Netherlands overseas territories are Bonaire, Sint Eustatius and Saba. These are directly administered by The Hague, but have local governments and use the US dollar.

6) Norway – 5 territories

Norway has five territories in the Arctic and Antarctic.

Its first Arctic territory is Svalbard, which has a special legal status under the 1920 Svalbard Treaty, allowing international settlement and restricting military activity. The second territory is Jan Mayen, an uninhabited volcanic island used for meteorological research, monitoring and defence.


Norway also claims three uninhabited territories in Antarctica: Bouvet Island, Peter I Island and Queen Maud Land. Bouvet Island and Peter I Island are mostly covered by glaciers, while on Queen Maud Land, there is very limited ice free land at the coast. It hosts the largest known seabird colony in Antarctica.

7) New Zealand – 4 territories

New Zealand has two self governing regions that are part of it, one dependent territory, and one Antarctic claim.


The Cook Islands in the South Pacific Ocean, located between New Zealand and Hawaii, and Niue, located in the South Pacific Ocean northeast of New Zealand and east of Tonga, are both self governing in “free association” with New Zealand. This is a voluntary association in which a nation, such as the Cook Islands or Niue, assumes responsibility for its domestic affairs but defers to New Zealand for defence and foreign policy.


Tokelau came under the control of New Zealand in 1925 and is a non self governing territory. This means that the UN considers it a territory where the people have “not yet attained a full measure of self government” but are being encouraged to work towards it.


Like several countries, New Zealand claims part of the Antarctic. The 1959 Antarctic Treaty System is an international agreement which preserves Antarctica for peaceful purposes and scientific research, while freezing all territorial claims. Since 1923, New Zealand has maintained a right of sovereignty over the Ross Dependency in Antarctica for research purposes. It was originally part of the UK’s claim.

8) Denmark – 2 territories

The Kingdom of Denmark has two self ruling territories, Greenland and the Faroe Islands.


Greenland is at the centre of a transatlantic dispute as US President Donald Trump insists on buying the resource rich island, which is located in the region of North America, despite it having its own parliament and leader. Both Denmark and Greenland have repeatedly stated that the island is not for sale.


The Faroe Islands are located in the North Atlantic Ocean between Iceland, Norway and Scotland. Since 2005, the Faroes have had a self government arrangement.

9) China – 2 territories

Unlike the UK or France, China does not have overseas territories in the traditional sense. It has two Special Administrative Regions (SARs) – Hong Kong and Macau. These are generally autonomous in terms of political, economic and legal systems, operating under the principle of “One Country, Two Systems”.


Hong Kong, located on the South China Sea, is a former British colony but was returned to China in 1997. It has a population of about 7.5 million and is one of the world’s most important financial centres. According to Hong Kong’s Department of Justice, its legal system is different from China’s and is based on common law.


Nearby Macau is a former Portuguese colony which was returned to China in 1999. It has a population of about 680,000 and is known for its financial services industry as well as casinos. The legal system is based on Portuguese civil law, rather than China’s.


China also has five autonomous regions within mainland China, which have a degree of political and cultural autonomy.


Taiwan, which China considers a province, operates as a self governing territory with its own government, economy and legal system, but China insists it is part of its sovereign territory and has not  ruled out using force to bring it under Beijing’s control.

Importance of Having Overseas Territories

Overseas territories regions governed by a country but located outside its mainland—have historically played a major role in shaping economic, geopolitical, military, and cultural power. Even today, they continue to offer strategic advantages.


1. Strategic & Geopolitical Power

Overseas territories expand a country’s global footprint, allowing it to:

  • Project military power across regions

  • Maintain strategic naval and air bases

  • Influence international trade routes and geopolitics

  • Strengthen claims in global forums (e.g., UN, maritime law)

Example:

The US territories (Guam, Puerto Rico) strengthen Indo Pacific and Atlantic presence.


2. Economic & Trade Advantages

Overseas territories can provide:

  • Access to natural resources (minerals, fisheries, oil)

  • Expanded Exclusive Economic Zones (EEZs) in oceans

  • Trade hubs and logistics centers

  • Tourism and offshore financial activity

  • Agricultural and industrial expansion

Example:

France’s overseas territories significantly expand its maritime economic zone.


3. Military & Security Benefits

Territories allow:

  • Forward military positioning

  • Faster response to global conflicts or crises

  • Intelligence and surveillance advantages

  • Defense buffer zones far from the mainland

Example:

UK’s Falkland Islands provide South Atlantic strategic reach


4. Maritime & Resource Control

Overseas territories expand control over:

  • Vast ocean territories

  • Deep sea resources

  • Undersea cables and shipping lanes

  • Future resources such as seabed minerals

Example:

France controls one of the world’s largest maritime zones due to overseas regions


5. Political & Diplomatic Influence

They increase:

  • Voting and influence in international bodies

  • Soft power through regional engagement

  • Regional diplomatic leverage

  • Presence in global humanitarian and climate policy


6. Scientific, Environmental & Space Advantages

Territories can host:

  • Space launch sites

  • Climate and biodiversity research

  • Satellite tracking stations

  • Disaster monitoring centers

Example:

French Guiana hosts a major European space launch facility.


7. Cultural, Migration & Soft Power Benefits

They support:

  • Cultural exchange

  • Diaspora and migration ties

  • Global language and cultural spread

  • Education and tourism influence


8. Risk Diversification & National Resilience

They provide:

  • Geographic diversification

  • Disaster risk spreading

  • Alternative economic centers

  • Strategic fallback locations in conflicts or pandemics


9. Downsides & Controversies (Balanced View)

While beneficial, overseas territories can also create challenges:

  • High administrative and defense costs

  • Ethical and colonial legacy concerns

  • Political resistance from local populations

  • Development inequality

  • International legal disputes


10. Relevance for Modern Powers (US, UK, France, China, India)

  • US & France: Military reach, maritime dominance

  • China: Strategic port investments and influence zones

  • India: Andaman & Nicobar and Lakshadweep improve Indo Pacific security

  • UK: Financial, military, and territorial leverage

Here are clear, high impact case studies showing how major countries have tangibly benefited from overseas territories economically, militarily, and geopolitically. I’ll keep this crisp and example driven (no fluff).


Strategic and Economic Advantages

 1: France — The Silent Maritime Superpower

Overseas Territories

French Guiana, Réunion, Mayotte, New Caledonia, French Polynesia, Caribbean islands

Key Benefits

  • 2nd largest EEZ in the world (~11 million sq km) — larger than India’s land area

  • Control over Atlantic, Indian, and Pacific Oceans simultaneously

  • Access to fisheries, seabed minerals, and undersea cables

Strategic Wins

  • Ariane Spaceport (French Guiana) ? cornerstone of Europe’s space program

  • Permanent military presence in Indo Pacific

  • Climate and biodiversity research leadership

Outcome: France punches far above its economic weight in global geopolitics.


2: United States — Global Military Reach Engine

Overseas Territories

Guam, Puerto Rico, US Virgin Islands, American Samoa, Northern Mariana Islands

Key Benefits

  • Unmatched global force projection

  • Forward bases reduce response time in crises

  • Indo Pacific dominance without mainland exposure

Strategic Wins

  • Guam = “unsinkable aircraft carrier” in the Pacific

  • Puerto Rico = gateway to Latin America

  • EEZ expansion for marine resources

Outcome: Enables the US to remain the world’s primary security guarantor.


3: United Kingdom — Power Retention After Empire

Overseas Territories

Gibraltar, Falklands, Cayman Islands, Bermuda, British Virgin Islands

Key Benefits

  • Strategic choke points (Mediterranean, South Atlantic)

  • Offshore financial hubs generating billions in capital flows

  • Military basing and intelligence value

Strategic Wins

  • Gibraltar controls entry to the Mediterranean

  • Falklands secure South Atlantic presence and Antarctic claims

  • Cayman Islands ? global financial influence

Outcome: UK sustains outsized geopolitical and financial relevance post empire.


4: China — De Facto Overseas Expansion (Modern Model)

(Not formal territories, but functional equivalents)

Overseas Assets

Djibouti base, ports in Sri Lanka, Pakistan, Africa, Southeast Asia

Key Benefits

  • Trade route security (Belt & Road Initiative)

  • Strategic naval access points

  • Political leverage over host countries

Strategic Wins

  • Djibouti naval base enables Red Sea & African reach

  • Hambantota Port ? Indian Ocean leverage

Outcome: Expands power without colonial ownership, minimizing backlash.


5: Netherlands — Small Country, Big Financial Impact

Overseas Territories

Aruba, Curaçao, Sint Maarten

Key Benefits

  • Offshore finance & tourism revenues

  • Strategic Caribbean presence

  • Stable Dutch governance attracts global capital

Outcome: Maintains economic relevance disproportionate to size


6: Australia — Indo-Pacific Depth

Overseas Territories

Christmas Island, Cocos (Keeling) Islands, Norfolk Island

Key Benefits

  • Surveillance of Indian Ocean shipping lanes

  • Strategic depth against regional threats

  • Migration and maritime control

Outcome: Enhanced maritime security buffer in Indo-Pacific.


 7: India — Strategic Island Advantage (Emerging Case)

Territories

Andaman & Nicobar Islands, Lakshadweep

Key Benefits

  • Control near Malacca Strait (40% of global trade)

  • Naval and air dominance in Eastern Indian Ocean

  • Counterbalance to China’s String of Pearls

Outcome: India gains regional deterrence without overseas colonies


Conclusion

Overseas territories give countries a powerful edge, combining strategic, economic, and geopolitical advantages. From France’s maritime and space assets to the US’s global military reach, the UK’s financial influence, Australia’s maritime depth, and India’s strategic islands, these territories expand national power far beyond the mainland.They boost economies through resources, trade hubs, tourism, and EEZ expansion, while strengthening security, military reach, scientific research, and diplomatic influence. Though challenges like governance and costs exist, the benefits make overseas territories a key factor in modern global power and influence. Learn More on Our Website for More Insights.

Reference Articles-


Rate & Review:GoodOkNot Good

Leave Your Comments

Your Comments
Name
Email
Comments
No comments found

Open Demat Account

ATTENTION INVESTORS KYC IPO

Escalation Matrix

Details of Contact Person Address Contact No. Email Id Working Hours
Client Servicing / Customer care Suresh Munge 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628913 suresh_munge@ajmera.co.in 10:00 am to 6:00 pm
Head of Client Servicing Mr. Dhanesh Bendre's 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628915 dhanesh_bendre@ajmera.co.in 10:00 am to 6:00 pm
Compliance Officer Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628888 ashish@ajmera.co.in 10:00 am to 6:00 pm
CEO / Whole Time Director Ashish Ajmera 63-67, Ajmera House,
4th Floor, Off K.H.Ajmera Chowk,
Pathakwadi, Mumbai – 400 002.
022-40628880 ashish@ajmera.co.in 10:00 am to 6:00 pm

In absence of response/ complaint not addressed to your satisfaction, you may lodge a complaint with CDSL at https://www.cdslindia.com/eservices/footer/grievances or SEBI at https://scores.sebi.gov.in/. Please quote your Complaint Ref No. while raising your complaint at SEBI SCORES/ Depository portal.

Group Companies Members of BSE, NSE, MCX, MSEIL, CDSL, Broking Services, Depository Services
BSE Clearing No.: 911 | NSE Clearing No.: 11858 | MCX Clearing No.: 10665 | MSEIL Clearing No.: 11400 | CDSL DP ID: 30300 | SEBI Regn. No.: IN-DP-715-2022 | SEBI Reg No.: INZ000177531 (Cash/F&O/CDs/MCX)

Attention Investors
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 dated August 31, 2020 and other guidelines issued from time to time in this regard
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

© Copyright 2022 Ajmera Associates Ltd
Designed, Developed & Content Powered by  Accord Fintech Pvt. Ltd.