published in Monday's European edition of The Wall Street Journal.

When it came time to render a verdict on nearly 400 years of British rule, Bermudians followed an old maxim: If it ain't broke, don't fix it.

Even in this balmy island paradise, ambitious local politicians were working hard to instill sparks of nationalism that could then be stoked into a real independence movement. Prime Minister Sir John Swan sought to portray colonial rule as an anachronistic burden and a manacle that was keeping Bermudians from becoming more united. But Bermudians weren't taking the bait and for a number of good reasons.

For one, the proponents of independence could offer few enticements. After all, Bermudians aren't the impoverished and exploited subjects of an uncaring overlord. They are not oppressed. In fact, the colony has been self-governing since 1968, flies its own flag and fields its own Olympic team. The island doesn't have to bother itself with defence or external matters either - the motherland takes care of those things. Instead, Bermudians can focus on what they do best: business.

A colony they may be, but Bermudians are among the freest people in the world by virtue of their standard of living, their independence from debt and their ability to attract foreign investment. The world Bank has consistently placed Bermuda among the five richest places in the world. Of course tourism is a substantial part of this, accounting for some 28% of GDP. Another 23% comes from offshore financial services. From private and corporate trusts to insurance brokers and hedge funds, Bermuda has become a premier offshore business center.

There's a good explanation for Bermuda's success in attracting corporate offices. Businesses park themselves in Bermuda because taxes are low, regulations reasonable and the rule of law respected. Offshore centers are often depicted as places where local authorities turn a blind eye to shady dealings. But what regulations Bermuda has are seemingly imposed with rigour.

Authorities carefully screen fund managers before their arrival; and the cost of setting up a fund in Bermuda is reportedly four to five times that of setting up in another Caribbean offshore center.

Hurricanes may provide an occasional fright, but Bermuda boasts one of the region's stablest political and economic environments. Standard & Poor's recently awarded Bermuda a double A foreign currency rating. Unlike many other Caribbean states, Bermuda has practically no unemployment and little violent crime. And talk about fiscal prudence; Even as the government has been determined to avoid any kind of income tax, careful spending practices have kept the public-sector debt low (about 6% of GDP).

Perhaps it is a sign of the times though that the seemingly superfluous question of independence was raised in the first place. Conventional wisdom has it that colonial rule is ipso facto a bad thing - that dependency of any sort is the antithesis of freedom. This assumes that in any such relationship one side is the exploiter, the other luckless serfs.

Journal There may be plenty of history to back up that thesis, but it hardly reflects reality today.

We can't help thinking how different little Bermuda's flirt with independence was from the images of tortured struggles and violence more often conjured up in the context of independence movements these days. Nevertheless, the fact that local politicians made their appeals on racial grounds - in the hopes that the 70% of Bermudians who are black would side with breaking with the crown - is a disturbing example of how politicians can create ethnic divisions. What they failed to realise of course is that for most Bermudians, British rule has been a source of pride and security. Fortunately, democracy has a way of setting these things straight.

Perhaps, as some observers noted, independence would not have meant big change in Bermuda. Still, Bermuda's choice must be seen as both a vote of confidence in British rule and a rejection of the popular tendency to always equate independence with freedom.