POLITICAL CONDITIONS

Congressional, municipal, and first-round presidential elections took place on September 9, 2007. The final round of presidential elections took place on November 4, 2007. Inauguration for the new president and the new Congress took place on January 14, 2008.

Common and violent crime, aggravated by a legacy of violence and vigilante justice, presents a serious challenge. Impunity remained a major problem, primarily because democratic institutions, including those responsible for the administration of justice, have developed only a limited capacity to cope with this legacy. Guatemala's judiciary is independent; however, it suffers from inefficiency, corruption, and intimidation.

In early December 2006, the government and the UN agreed to the creation of the joint International Commission Against Impunity in Guatemala (CICIG). On August 1, 2007, the Guatemalan Congress approved the agreement, and on January 11, 2008, Guatemala and the United Nations inaugurated the work of CICIG. An earlier Guatemala-UN agreement was ruled unconstitutional in 2004 before it was acted upon by the Guatemalan Congress. The UN Verification Mission in Guatemala (MINUGUA) ceased its 10-year project of monitoring peace accord implementation and human rights problems in November 2004 with UN Secretary General Kofi Annan declaring Guatemala had made "enormous progress in managing the country's problems through dialogue and institutions".

ECONOMY

After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next several years, until a financial crisis in 1998 disrupted the course of improvement. The subsequent collapse of coffee prices left what was once the country's leading export sector in depression and had a severe impact on rural incomes. On a more positive note, Guatemala's macroeconomic management is sound and its foreign debt levels are modest. The Berger administration (2004-2007) made promotion of foreign investment and competitiveness a priority and implemented a series of reforms to improve transparency, combat corruption, and spur economic growth. As a result of the reforms and implementation of the U.S.-Central America Free Trade Agreement (CAFTA), foreign direct investment (FDI) inflows increased from $353 million in 2006 to $535 million in 2007.

Guatemala's economy is dominated by the private sector, which generates about 85% of GDP. Agriculture contributes 13.3% of GDP and accounts for 75% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market.

The United States is the country's largest trading partner, providing 34.5% of Guatemala's imports and receiving 46.2% of its exports. The government's involvement is small, with its business activities limited to public utilities--some of which have been privatized--ports and airports, and several development-oriented financial institutions.

Guatemala ratified the U.S.-Central America Free Trade Agreement, commonly known as CAFTA, on March 10, 2005, and the agreement entered into force between Guatemala and the U.S. on July 1, 2006. CAFTA eliminates customs tariffs on as many categories of goods as possible; opens services sectors; and creates clear and readily enforceable rules in areas such as investment, government procurement, intellectual property protection, customs procedures, electronic commerce, the use of sanitary and phyto-sanitary measures to protect public health, and resolution of business disputes.

Other priorities include increasing transparency and accountability in Guatemala's public finances, broadening the tax base, and completing implementation of financial sector reforms. These measures attempt to ensure that Guatemala can comply with the standards of the international Financial Action Task Force for detecting and preventing money laundering.

The United States, along with other donor countries--especially France, Italy, Spain, Germany, and Japan--and the international financial institutions, have increased development project financing since the signing of the peace accords. However, donor support remains contingent upon Guatemalan Government reforms and counterpart financing.

According to the World Bank, Guatemala has one of the most unequal income distributions in the hemisphere. The wealthiest 10% of the population receives almost one-half of all income; the top 20% receives two-thirds of all income. As a result, about 32% of the population lives on less than $2 a day and 13.5% on less than $1 a day. Guatemala's social development indicators, such as infant mortality and illiteracy, are among the worst in the hemisphere. Chronic malnutrition among the rural poor worsened with the onset of the crisis in coffee prices. The United States has provided disaster assistance and food aid in response to natural disasters including Hurricane Stan, which caused extensive mudslides in Guatemala in October 2005.

NATIONAL SECURITY

Guatemala is a signatory to the Rio Pact and is a member of the Conference of Central American Armed Forces (CFAC). Guatemala has deployed its troops to UN peacekeeping operations in Haiti and the Congo and has observers in several other locations. The president is commander in chief. The defense minister is responsible for policy. Day-to-day operations are the responsibility of the military chief of staff and the national defense staff.

An agreement signed in September 1996, which is one of the substantive peace accords, mandated that the mission of the armed forces change to focus exclusively on external threats. However, Presidents Berger, Portillo, and Arzu used a constitutional clause to order the army to temporarily support the police in response to a nationwide wave of violent crime.

The accord calls for a one-third reduction in the army's authorized strength and budget--achieved under President Berger--and for a constitutional amendment to permit the appointment of a civilian Minister of Defense. A constitutional amendment to this end was defeated as part of a May 1999 plebiscite, but discussions on how to achieve this objective continue between the executive and legislative branches.

The army has gone beyond its accord-mandated target of reducing its strength to 28,000 troops, and numbered 15,500 troops as of June 2004. Not only was this the most profound transformation of any Central American military in the last 50 years, it also illustrates the effective control the civilian government has over the military. President Berger tasked the Defense Ministry with increasing the professional skills of all soldiers. As part of the army downsizing, the operational structure of 19 military zones and three strategic brigades were recast as several military zones are eliminated and their area of operations absorbed by others. The air force operates three air bases; the navy has two port bases. Additionally, recent steps have been taken to redefine the military's mission--the military doctrine has been rewritten, and there has been an increase in cooperation with civil society to help bring about this reform.

FOREIGN RELATIONS

Guatemala's major diplomatic interests are regional security and, increasingly, regional development and economic integration. Guatemala participates in several regional groups, particularly those related to trade and the environment.

The Council of Central American Ministers of Trade meets on a regular basis to work on regional approaches to trade issues. The council signed a Trade and Investment Framework Agreement (TIFA) with the U.S. in 1998, and was part of the negotiations that led to the creation of CAFTA. Guatemala joined Honduras and El Salvador in signing a free trade agreement with Mexico in 2000, which went into effect the following year. Guatemala also originated the idea for, and is the seat of, the Central American Parliament (PARLACEN).

The U.S and Central American countries signed the CONCAUSA (Conjunto Centroamerica-USA) agreement at the Summit of the Americas in December 1994. CONCAUSA is a cooperative plan of action to promote clean, efficient energy use; conserve the region's biodiversity; strengthen legal and institutional frameworks and compliance mechanisms; and improve and harmonize environmental protection standards.

Guatemala has a long-standing claim to a large portion of Belize; the territorial dispute caused problems with the United Kingdom and later with Belize following its 1981 independence from the U.K. In December 1989, Guatemala sponsored Belize for permanent observer status in the Organization of American States (OAS). In September 1991, Guatemala recognized Belize's independence and established diplomatic ties, while acknowledging that the boundaries remained in dispute. In anticipation of an effort to bring the border dispute to an end in early 1996, the Guatemalan Congress ratified two long-pending international agreements governing frontier issues and maritime rights. In 2001, Guatemala and Belize agreed to a facilitation process led by the OAS to determine the land and maritime borders separating the two countries. National elections in Guatemala put a temporary halt to progress, but discussions resumed in November 2005. After being named Foreign Minister in early August 2006, Gert Rosenthal reinvigorated discussions with Belize.

U.S.-GUATEMALAN RELATIONS

Relations between the United States and Guatemala traditionally have been close, although at times strained by human rights and civil/military issues. U.S. policy objectives in Guatemala include:

* Supporting the institutionalization of democracy and implementation of the peace accords;
* Encouraging respect for human rights and the rule of law, and implementation of the International Commission Against Impunity in Guatemala (CICIG);
* Supporting broad-based economic growth and sustainable development and maintaining mutually beneficial trade and commercial relations, including ensuring that benefits of CAFTA-DR reach all sectors of the Guatemalan populace;
* Cooperating to combat money laundering, corruption, narcotics trafficking, alien-smuggling, and other transnational crime; and
* Supporting Central American integration through support for resolution of border/territorial disputes.

The United States, as a member of "the Friends of Guatemala," along with Colombia, Mexico, Spain, Norway, and Venezuela, played an important role in the UN-moderated peace accords, providing public and behind-the-scenes support. The U.S. strongly supports the six substantive and three procedural accords, which, along with the signing of the December 29, 1996 final accord, form the blueprint for profound political, economic, and social change. To that end, the U.S. Government has committed over $500 million to support peace implementation since 1997.

Violent criminal activity continues to be a problem in Guatemala, including murder, rape, and armed assaults against persons of all nationalities. In recent years the number of violent crimes reported by U.S. citizens has steadily increased, though the number of Americans traveling to Guatemala has also increased.

Most U.S. assistance to Guatemala is provided through the U.S. Agency for International Development's (USAID) offices for Guatemala. USAID/Guatemala's current program builds on the gains of the peace process that followed the signing of the peace accords in December 1996, as well as on the achievements of its 1997-2004 peace program. The current program works to advance U.S. foreign policy objectives by focusing on Guatemala's potential as Central America's largest economy and trading partner of the United States, but also recognizes the country's lagging social indicators and high rate of poverty. The three areas of focus for USAID/Guatemala's program are modeled after the Millennium Challenge Account areas--ruling justly, economic freedom, and investing in people, and are as follows:

More responsive, transparent governance, through:

* Strengthened justice; and
* Greater transparency and accountability of governments.

Open, diversified and expanding economies, through:

* Laws, policies, and regulations that promote trade and investment;
* More competitive, market-oriented private enterprises; and
* Broader access to financial markets and services.

Healthier, better educated people, through:

* Increased and improved quality of social sector (health and education) investments; and
* Increased use of quality maternal-child and reproductive health services, particularly in rural areas.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/2045.htm

OFFICIAL NAME

Republic of Guinea

Geography

Area: 245,860 sq. km. (95,000 sq. mi.), about the size of Oregon.
Cities: Capital--Conakry. Other cities--Guéckédou, Boké, Kindia, N'Zérékoré, Macenta, Mamou, Kankan, Faranah, Siguiri, Dalaba, Labe, Pita, Kamsar.
Terrain: Generally flat along the coast and mountainous in the interior. The country's four geographic regions include a narrow coastal belt; pastoral highlands (the source of West Africa's major rivers); the northern savanna; and the southeastern rain forest.
Climate: Tropical.

People

Nationality: Noun and adjective--Guinean(s).
Population (2002 census): 8,444,559, including refugees and foreign residents. Refugee population (2006 est.): 60,000 Liberians and Ivoiriens. Population of Conakry: 2 million. Population of largest prefectures--Guéckédou (487,017), Boké (366,915), Kindia (361,117), N'Zérékoré (328,347), Macenta (365,559).
Annual growth rate (2002 census): 3.5%.
Ethnic groups: Peuhl 40%, Malinke 30%, Soussou 20%, other ethnic groups 10%.
Religions: Muslim 85%, Christian 8%, traditional beliefs 7%.
Languages: French (official), national languages.
Education: Years compulsory--8. Enrollment--primary school, 64.32% (male 78.71%, female 69.03%); secondary, 15%; and post secondary, 3%. Literacy (total population over age 15 that can read and write)--44.2% (male 58.74%, female 26.38%).
Health (2002): Life expectancy--total population 54 years. Infant mortality rate (2002)--98/1000.
Work force (2002, 4.5 million): Agriculture--76%; industry and commerce--18%; services--6%.

Government

Type: Republic.
Constitution: 1990; amended 2001.
Independence: October 2, 1958. Anniversary of the Second Republic, April 3, 1984.
Branches: Executive--elected president (chief of state); prime minister (head of government); cabinet of civilian ministers. Legislative--elected National Assembly (114 seats). Judicial--Supreme Court.
Administrative subdivisions: Region, prefecture, subprefecture, rural district.
Political parties: Pro-government--Party for Unity and Progress (PUP). Opposition--Rally for the Guinean People (RPG), Union for Progress and Renewal (UPR), Union of Democratic Forces of Guinea (UFDG), Union for Progress of Guinea (UPG), Union of Republican Forces (UFR).
Suffrage: Universal over age 18.
Central government budget (2006): $642 million.

Economy

GDP (2005 est.): $3.38 billion.
Annual economic growth rate (2005 est.): 3.3%.
Per capita GDP (2005 est.): $363.40.
Avg. inflation rate (2005): 30.9%.
Natural resources: Bauxite, iron ore, diamonds, gold, water power, uranium, fisheries.
Industry (30.9% of GDP): Types--mining, light manufacturing, construction.
Agriculture (19.5% of GDP): Products--rice, cassava, fonio, millet, corn, coffee, cocoa, bananas, palm products, pineapples, livestock, forestry. Arable land--35%. Cultivated land--4.5%.
Trade (45.1% of GDP): Exports (2005)--$806.6 million: bauxite, alumina, diamonds, gold, coffee, pineapples, bananas, palm products, coffee. Major markets--European Union, U.S., Commonwealth of Independent States, China, Eastern Europe, Japan, Saudi Arabia, Morocco.
Official exchange rate (May 2006): Approximately 4833 Guinean francs=U.S. $1.
Fiscal year: January 1-December 31.

GEOGRAPHY

Guinea is located on the Atlantic Coast of West Africa and is bordered by Guinea-Bissau, Senegal, Mali, Côte d'Ivoire, Liberia, and Sierra Leone. The country is divided into four geographic regions: A narrow coastal belt (Lower Guinea); the pastoral Fouta Djallon highlands (Middle Guinea); the northern savannah (Upper Guinea); and a southeastern rain-forest region (Forest Guinea). The Niger, Gambia, and Senegal Rivers are among the 22 West African rivers that have their origins in Guinea.

The coastal region of Guinea and most of the inland have a tropical climate, with a rainy season lasting from April to November, relatively high and uniform temperatures, and high humidity. Conakry's year-round average high is 29oC (85oF), and the low is 23oC (74oF); its average annual rainfall is 430 centimeters (169 inches). Sahelian Upper Guinea has a shorter rainy season and greater daily temperature variations.

PEOPLE

Guinea has four main ethnic groups:

* Peuhl (Foula or Foulani), who inhabit the mountainous Fouta Djallon;
* Malinke (or Mandingo), in the savannah and forest regions;
* Soussous in the coastal areas; and
* Several small groups (Gerzé, Toma, etc.) in the forest region.

West Africans make up the largest non-Guinean population. Non-Africans total about 10,000 (mostly Lebanese, French, and other Europeans). Seven national languages are used extensively; major written languages are French, Peuhl, and Arabic.

HISTORY

The area occupied by Guinea today was included in several large West African political groupings, including the Ghana, Mali, and Songhai empires, at various times from the 10th to the 15th century, when the region came into contact with European commerce. Guinea's colonial period began with French military penetration into the area in the mid-19th century. French domination was assured by the defeat in 1898 of the armies of Almamy Samory Touré, warlord and leader of Malinke descent, which gave France control of what today is Guinea and adjacent areas.

France negotiated Guinea's present boundaries in the late 19th and early 20th centuries with the British for Sierra Leone, the Portuguese for their Guinea colony (now Guinea-Bissau), and the Liberia. Under the French, the country formed the Territory of Guinea within French West Africa, administered by a governor general resident in Dakar. Lieutenant governors administered the individual colonies, including Guinea.

Led by Ahmed Sékou Touré, head of the Democratic Party of Guinea (PDG), which won 56 of 60 seats in 1957 territorial elections, the people of Guinea in a September 1958 plebiscite overwhelmingly rejected membership in the proposed French Community. The French withdrew quickly, and on October 2, 1958, Guinea proclaimed itself a sovereign and independent republic, with Sékou Touré as President.

Under Touré, Guinea became a one-party dictatorship, with a closed, socialized economy and no tolerance for human rights, free expression, or political opposition, which was ruthlessly suppressed. Originally credited for his advocacy of cross-ethnic nationalism, Touré gradually came to rely on his own Malinke ethnic group to fill positions in the party and government. Alleging plots and conspiracies against him at home and abroad, Touré's regime targeted real and imagined opponents, imprisoning many thousands in Soviet-style prison gulags, where hundreds perished. The regime's repression drove more than a million Guineans into exile, and Touré's paranoia ruined relations with foreign nations, including neighboring African states, increasing Guinea's isolation and further devastating its economy.

Sékou Touré and the PDG remained in power until his death on April 3, 1984. A military junta--the Military Committee of National Recovery (CMRN)--headed by then-Lt. Col. Lansana Conte, seized power just one week after the death of Sékou Touré. The CMRN immediately abolished the constitution, the sole political party (PDG) and its mass youth and women's organizations, and announced the establishment of the Second Republic. In lieu of a constitution, the government was initially based on ordinances, decrees, and decisions issued by the president and various ministers.

Political parties were proscribed. The new government also released all prisoners and declared the protection of human rights as one of its primary objectives. It reorganized the judicial system and decentralized the administration. The CMRN also announced its intention to liberalize the economy, promote private enterprise, and encourage foreign investment in order to develop the country's rich natural resources.

The CMRN formed a transitional parliament, the "Transitional Council for National Recovery" (CTRN), which created a new constitution (La Loi Fundamental) and Supreme Court in 1990. The country's first multi-party presidential election took place in 1993. These elections were marred by irregularities and lack of transparency on the part of the government. Legislative and municipal elections were held in 1995. Conte's ruling Party for Unity and Progress (PUP) won 76 of 114 seats in the National Assembly, amid opposition claims of irregularities and government tampering. The new National Assembly held its first session in October 1995.

Several thousand malcontent troops mutinied in Conakry in February 1996, destroying the presidential offices and killing several dozen civilians. Mid-level officers attempted, unsuccessfully, to turn the rebellion into a coup d'etat. The Government of Guinea made hundreds of arrests in connection to the mutiny, and put 98 soldiers and civilians on trial in 1998.

In mid-1996, in response to the coup attempt and a faltering economy, President Conté appointed a new government as part of a flurry of reform activity. He selected Sidya Touré, former chief of staff for the Prime Minster of the Cote d'Ivoire, as Prime Minister, and appointed other technically minded ministers. Touré was charged with coordinating all government action, taking charge of leadership and management, as well as economic planning and finance functions. In early 1997, Conté shifted many of the financial responsibilities to a newly named Minister of Budget and Finance.

In December 1998, Conté was re-elected to another 5-year term in a flawed election that was, nevertheless, an improvement over 1993. Following his reelection and the improvement of economic conditions through 1999, Conté reversed direction, making wholesale and regressive changes to his cabinet. He replaced many technocrats and members of the Guinean Diaspora that had previously held important positions with "homegrown" ministers, particularly from his own Soussou ethnic group. These changes led to increased cronyism, corruption, and a retrenchment on economic and political reforms.

Beginning in September 2000, the Revolutionary United Front (RUF) rebel army, backed by Liberian President Charles Taylor, commenced large-scale attacks into Guinea from Sierra Leone and Liberia. The RUF, known for their brutal tactics in the near decade-long civil war in Sierra Leone, operated with financial and material support from the Liberian Government and its allies. These attacks destroyed the town of Gueckedou as well as a number of villages, causing large-scale damage and the displacement of tens of thousands of Guineans from their homes. The attacks also forced the UN High Commissioner for Refugees (UNHCR) to relocate many of the 200,000 Sierra Leonean and Liberian refugees residing in Guinea. As a result of the attacks, legislative elections scheduled for 2000 were postponed.

After the initial attacks in September 2000, President Conté, in a radio address, accused Liberian and Sierra Leonean refugees living in the country of fomenting war against the government. Soldiers, police, and civilian militia groups rounded up thousands of refugees, some of whom they beat and raped. Approximately 3,000 refugees were detained, although most were released by year's end.

In November 2001, a nationwide referendum, which some observers believe was flawed, amended the constitution to permit the president to run for an unlimited number of terms, and to extend the presidential term from 5 to 7 years. The country's second legislative election, originally scheduled for 2000, was held in June 2002. President Conté's Party of Unity and Progress (PUP) and associated parties won 91 of the 114 seats. Most major opposition parties boycotted the legislative elections, objecting to inequities in the existing electoral system.

GOVERNMENT AND POLITICAL CONDITIONS

Guinea is a constitutional republic in which effective power is concentrated in a strong presidency. Government administration is carried out at several levels; in descending order, they are: eight regions, 33 prefectures, over 100 subprefectures, and many districts (known as communes in Conakry and other large cities, and villages or "quartiers" in the interior). District-level leaders are elected; the president appoints officials to all other levels of the highly centralized administration. The president governs Guinea with the assistance of an appointed council of civilian ministers typically led by a prime minister.

The failing health of President Conté has been a cause of continuing concern. In late 2003, Conté fell ill during a trip to Japan and had to receive medical treatment in Morocco. However, in December 2003 Conté easily won a third presidential term against a single, relatively unknown candidate after the opposition parties boycotted the elections. Despite two medical evacuations in 2006, Conté insisted in a late 2006 interview that despite his health he would remain in office until his term ended in 2010.

In December 2005 Guinea held nation-wide elections for local and rural councils. In preparation for the election the government maintained an open dialogue with the opposition parties, 16 of which participated in the elections. Opposition leaders were allowed to campaign freely, and were allowed equal access to government-run media. The ruling PUP won 31 of 38 municipalities and 241 of 303 local councils. Though viewed as flawed, the 2005 elections were much improved over previous elections due to the use of transparent ballot boxes and other reforms. Legislative elections previously scheduled for June 2007 have been repeatedly delayed. Currently elections are expected in late 2008.

In late February and early March 2006, Guinea's labor union alliance launched a historic general strike demanding wage increases and union participation in Guinea's economic and social policy. Though the unions only won a modest salary increases, the strike established them as a credible, unified, and powerful force in Guinea. Due in part to the government's inability to control Guinea's rising inflation, the trade unions launched a second general strike in June 2006. The second general strike was marked by more intense and widespread violence, resulting in the deaths of several protesters at the hands of security forces. The unions called for a third round of national strikes in January 2007, after President Conté personally intervened to save a close associate from charges of corruption.

Whereas the unions' demands during the March and June 2006 strikes were primarily economic, the January 2007 strike began with a political tone. In addition to their economic agenda for improved wages and retirement benefits, the unions called for Conté's retirement and the reinstatement of embezzlement charges against two of Conté's allies. After President Conté dismissed the unions' demands, protesters began barricading roads, throwing rocks, burning tires, and skirmishing with police. Violence throughout Guinea peaked on January 22 when several thousand ordinary Guineans poured into the streets calling for change. Guinean security forces and the military's "red beret" presidential guard reacted by opening fire on the peaceful crowds and killing dozens in Conakry and throughout Guinea.

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

On January 27, 2007, unions, employers associations, and the government entered a tripartite agreement to suspend the strike. President Conté agreed to name a new "consensus" prime minister, with delegated executive powers. For the first time, the new prime minister of Guinea would carry the title of "head of government" and exercise certain powers previously held by the president of the republic. The government also agreed to new price controls for rice and fuel, as well a one-year ban on the exportation of food and fuel. However, President Conté's February 9 appointment of a longtime associate, Eugène Camara, as Guinea's new prime minister sparked another wave of violence and protests. In an attempt to quell the violence, on February 12 President Conté declared a "state of siege," which conferred broad powers on the military, and implemented a strict curfew. According to media reports, the following days saw military and police forces scour Conakry and towns in the hinterlands where they committed serious human rights abuses.

When Guinea's National Assembly rejected Conté's effort to extend the "state of siege," it became clear that the popular protests had widespread support, even among leaders of Conté's own ruling party. Soon after, an ECOWAS delegation led by former Nigerian President Babangida announced that President Conté had agreed to name a new "consensus" prime minister in consultations with the unions and civil society. Lansana Kouyaté arrived in Conakry on February 27, 2007, just hours after being announced as the new Prime Minister and head of the government. During his premiership, Kouyaté faced constant speculation that the president and his associates opposed his reform efforts. After 15 months in office, President Conté replaced Kouyaté with Ahmed Tidiane Souaré, a former minister of mines from a previous cabinet.

ECONOMY

Richly endowed with minerals, Guinea possesses over 25 billion metric tons (MT) of bauxite--and perhaps up to one half of the world's reserves. In addition, Guinea's mineral wealth includes more than 4 billion tons of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium. Guinea has considerable potential for growth in the agricultural and fishing sectors. Soil, water, and climatic conditions provide opportunities for large-scale irrigated farming and agro industry. Possibilities for investment and commercial activities exist in all these areas, but Guinea's poorly developed infrastructure and rampant corruption continue to present obstacles to large-scale investment projects.

Joint venture bauxite mining and alumina operations in northwest Guinea historically provide about 80% of Guinea's foreign exchange. The Compagnie des Bauxites de Guinea (CBG) is the main player in the bauxite industry. CBG is a joint venture, in which 49% of the shares are owned by the Guinean Government and 51% by an international consortium led by Alcoa and Alcan. CBG exports about 14 million metric tons of high-grade bauxite every year. The Compagnie des Bauxites de Kindia (CBK), a joint venture between the Government of Guinea and Russki Alumina, produces some 2.5 million MT annually, nearly all of which is exported to Russia and Eastern Europe. Dian Dian, a Guinean/Ukrainian joint bauxite venture, has a projected production rate of 1 million MT per year, but is not expected to begin operations for several years. The Alumina Compagnie de Guinée (ACG), which took over the former Friguia Consortium, produced about 2.4 million tons of bauxite in 2004, which is used as raw material for its alumina refinery. The refinery supplies about 750,000 MT of alumina for export to world markets. Both Global Alumina and Alcoa-Alcan have signed conventions with the Government of Guinea to build large alumina refineries with a combined capacity of about 4 million MT per year.

Diamonds and gold also are mined and exported on a large scale. AREDOR, a joint diamond-mining venture between the Guinean Government (50%) and an Australian, British, and Swiss consortium, began production in 1984 and mined diamonds that are 90% gem quality. Production stopped from 1993 until 1996, when First City Mining of Canada purchased the international portion of the consortium. By far, most diamonds are mined artisanally. The largest gold mining operation in Guinea is a joint venture between the government and Ashanti Gold Fields of Ghana. SMD also has a large gold mining facility in Lero near the Malian border. Other concession agreements have been signed for iron ore, but these projects are still awaiting preliminary exploration and financing results.

The Guinean Government adopted policies in the 1990s to return commercial activity to the private sector, promote investment, reduce the role of the state in the economy, and improve the administrative and judicial framework. Guinea has the potential to develop, if the government carries out its announced policy reforms, and if the private sector responds appropriately. So far, corruption and favoritism, lack of long-term political stability, and lack of a transparent budgeting process continue to dampen foreign investor interest in major projects in Guinea.

Reforms since 1985 include eliminating restrictions on agriculture and foreign trade, liquidation of some parastatals, the creation of a realistic exchange rate, increased spending on education, and cutting the government bureaucracy. In July 1996, President Lansana Conté appointed a new government, which promised major economic reforms, including financial and judicial reform, rationalization of public expenditures, and improved government revenue collection. Under 1996 and 1998 International Monetary Fund (IMF)/World Bank agreements, Guinea continued fiscal reforms and privatizations, and shifted governmental expenditures and internal reforms to the education, health, infrastructure, banking, and justice sectors. Cabinet changes in 1999 as well increasing corruption, economic mismanagement, and excessive government spending combined to slow the momentum for economic reform. The informal sector continues to be a major contributor to the economy.

The government revised the private investment code in 1998 to stimulate economic activity in the spirit of free enterprise. The code does not discriminate between foreigners and nationals and provides for repatriation of profits. While the code restricts development of Guinea's hydraulic resources to projects in which Guineans have majority shareholdings and management control, it does contain a clause permitting negotiations of more favorable conditions for investors in specific agreements. Foreign investments outside Conakry are entitled to more favorable benefits. A national investment commission has been formed to review all investment proposals. The United States and Guinea have signed an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation (OPIC). In addition, Guinea has inaugurated an arbitration court system, which allows for the quick resolution of commercial disputes.

Until June 2001, private operators managed the production, distribution, and fee-collection operations of water and electricity under performance-based contracts with the Government of Guinea. However, both utilities are plagued by inefficiency and corruption. Foreign private investors in these operations departed the country in frustration.

In 2002, the IMF suspended Guinea's Poverty Reduction and Growth Facility (PRGF) because the government failed to meet key performance criteria. In reviews of the PRGF, the World Bank noted that Guinea had met its spending goals in targeted social priority sectors. However, spending in other areas, primarily defense, contributed to a significant fiscal deficit. The loss of IMF funds forced the government to finance its debts through Central Bank advances. The pursuit of unsound economic policies has resulted in imbalances that are proving hard to correct.

Under then-Prime Minister Diallo, the government began a rigorous reform agenda in December 2004 designed to return Guinea to a PRGF with the IMF. Exchange rates have been allowed to float, price controls on gasoline have been loosened, and government spending has been reduced while tax collection has been improved. These reforms have not slowed down inflation, which hit 27% in 2004 and 30% in 2005. Depreciation is also a concern. The Guinea franc was trading at 2,550 to the dollar in January 2005. It hit 5,554 to the dollar by October 2006.

Despite the opening in 2005 of a new road connecting Guinea and Mali, most major roadways connecting the country's trade centers remain in poor repair, slowing the delivery of goods to local markets. Electricity and water shortages are frequent and sustained, and many businesses are forced to use expensive power generators and fuel to stay open.

Even though there are many problems plaguing Guinea's economy, not all foreign investors are reluctant to come to Guinea. Global Alumina's proposed alumina refinery has a price tag above $2 billion. Alcoa and Alcan are proposing a slightly smaller refinery worth about $1.5 billion. Taken together, they represent the largest private investment in sub-Saharan Africa since the Chad-Cameroun oil pipeline.

DEFENSE

Guinea's armed forces are divided into four branches--army, navy, air force, and gendarmerie--whose chiefs report to the Chairman of the Joint Chiefs of Staff. The 10,000-member army is the largest of the four services. The navy has about 900 personnel and operates several small patrol craft and barges. Air force personnel total about 700; its equipment includes several Russian-supplied fighter planes and transport planes. Several thousand gendarmes are responsible for internal security.

FOREIGN RELATIONS

Guinea's relations with other countries, including with her West African neighbors, have improved steadily since 1985. Guinea reestablished relations with France and Germany in 1975, and with neighboring Côte d'Ivoire and Senegal in 1978. Guinea has been active in efforts toward regional integration and cooperation, especially regarding the Organization of African Unity (now the African Union) and the Economic Organization of West African States (ECOWAS). Guinea takes its role in a variety of international organizations seriously and participates actively in their deliberations and decisions. Guinea has participated in both diplomatic and military efforts to resolve conflicts in Liberia, Sierra Leone, and Guinea-Bissau, and contributed contingents of troops to peacekeeping operations in all three countries as part of ECOMOG, the Military Observer Group of ECOWAS. Guinea has offered asylum to more than 700,000 Liberian, Sierra Leonean, and Bissauan refugees since 1990, despite the economic and environmental costs involved.

The civil wars that engulfed Liberia and then Sierra Leone during the 1990s negatively affected relations between Guinea and these two fellow Mano River Union member countries. Guinea and Liberia accused each other of supporting opposition dissidents, and in late 2000 and early 2001, Guinean dissidents backed by the Liberian government and RUF rebels from Sierra Leone brutally attacked Guinea. These attacks caused over 1,000 Guinean deaths and displaced more than 100,000 Guineans. The attacks led to Guinea's support for the LURD (Liberians United For Reconciliation and Democracy) rebels in their attacks against the Liberian government of Charles Taylor. Taylor's departure for exile in August 2003 and the establishment of a new government in Liberia have led to a much improved relationship between the two countries.

Guinea belongs to the UN and most of its specialized related agencies, the African Union, the International Bank for Reconstruction and Development (IBRD), African Development Bank (AFDB), Niger River Basin (NRB), Economic Community of West African States (ECOWAS), Organization of the Islamic Conference (OIC), the Mano River Union (MRU), Gambia River Basin Organization (OMVG), and the Nonaligned Movement (NAM).

U.S.-GUINEAN RELATIONS

The United States maintains close relations with Guinea. U.S. policy seeks to encourage Guinea's democratic reforms, its positive contribution to regional stability, and sustainable economic and social development. The U.S. also seeks to promote increased U.S. private investment in Guinea's emerging economy.

The U.S. Mission in Guinea is composed of five agencies--Department of State, U.S. Agency for International Development (USAID), Peace Corps, the Treasury Department, and the Department of Defense. In addition to providing the full range of diplomatic functions, the U.S. Mission also manages a military assistance program that provided nearly $331,000 for military education, professionalization, and language training programs.

USAID Guinea is now one of only five sustainable development missions in West Africa, with current core program areas in primary education, family health, democracy and governance, and natural resources management.

After a temporary suspension due to nationwide political unrest in early 2007, the Peace Corps program in Guinea resumed operations at the end of July 2007. Prior to the suspension, Peace Corps had more than 100 volunteers throughout the country, and the program is gradually increasing its numbers again. Volunteers work in four project areas: secondary education, environment/agro-forestry, public health and HIV/AIDS prevention, and small enterprise development. Guinea has also had a strong Crisis Corps program through the last few years.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/2824.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Republic of Guinea-Bissau

Geography

Area (including Bijagos Archipelago): 36,125 sq. km., about the size of Maryland.
Cities: Capital--Bissau. Other cities--Bafata, Gabu, Canchungo, Farim, Cacheu.
Regions: Oio, Tombali, Cacheu, Bolama, Quinara, Biombo, Bafata, Gabu.
Terrain: Coastal plain; savanna in the east.
Climate: Tropical.

People

Nationality: Noun and adjective--Bissau-Guinean(s).
Population (2006): 1,700,000.
Population growth rate (2005): 3%.
Ethnic groups: Balanta 30%, Fula 20%, Manjaca 14%, Mandinga 13%, Papel 7%, others 16%.
Religions: Indigenous beliefs 50%, Muslim 45%, Christian 5%.
Languages: Portuguese (official), Creole, French; many indigenous languages--Balanta-Kentohe 26%, Pulaar 18%, Mandjak 12%, Mandinka 11%, Pepel 9%, Biafada 3%, Mancanha 3%, Bidyogo 2%, Ejamat 2%, Mansoanka 1%, Bainoukgunyuno 1%, Nalu 1%, Soninke 1%, Badjara 1%, Bayote 0.5%, Kobiana 0.04%, Cassanga 0.04%, Basary 0.03%.
Education: Years compulsory--4. Literacy (2005)--39.6% of adults.
Health: Infant mortality rate (2005)--200 deaths/1,000 live births. Life expectancy (2005)--45.8 years.
Work force (480,000): Agriculture--85%; industry, services, and commerce--13%; government--2%.

Government

Type: Republic, multi-party since 1991.
Independence: September 24, 1973 (proclaimed unilaterally); September 10, 1974 (de jure from Portugal).
Constitution: Adopted 1984. The National Assembly adopted a new constitution in 2001, but it was neither promulgated nor vetoed by the President.
Branches: Executive--president (chief of state), prime minister (head of government) and Council of State, ministers and secretaries of state. Legislature--National Popular Assembly (ANP), 100 members directly elected in 2004. Judicial--Supreme Court and lower courts.
Administrative subdivisions: Autonomous sector of Bissau and eight regions.
Political parties: In the March 2004 parliamentary elections, the African Party for the Independence of Guinea-Bissau and Cape Verde (PAIGC) won 45 seats; the Social Renovation Party (PRS) won 35 seats; and the United Social Democratic Party (PUSD) won 17 seats. In addition to these three major parties, there are numerous other political parties.
Suffrage: Universal at 18.

Economy

GDP (2007): $386.8 million (est.).
Annual growth rate (2007): 3.7% (est.).
GDP per capita, purchasing power parity (2005): $600 (est.).
Natural resources: Fish and timber. Bauxite and phosphate deposits are not exploited; offshore petroleum.
Agriculture: Products--cashews, tropical fruits, rice, peanuts, cotton, palm oil. Arable land--11%. Forested--38%.
Industry: Very little industrial capacity remains following the 1998 internal conflict. The cashew processing industry is nascent.
Trade: Exports--$110 million (f.o.b., 2006): cashews ($66 million, 2006), fish and shrimp ($1 million, 2006). Major markets (2006)--India 72.4%, Nigeria 17.2%, Ecuador 4.1%, Italy 1.4%, and South Korea 1.3%. Imports--$28 million (f.o.b., 2006): food ($49 million, 2005), fuel and energy ($20 million, 2006), capital goods ($8 million, 2006). Major suppliers (2006)--Senegal 22.6%, Portugal 17.7%, Italy 12.2%, Pakistan 4.3%, and Cote d'Ivoire 3.2%.

PEOPLE

The population of Guinea-Bissau is ethnically diverse with distinct languages, customs, and social structures. Most people are farmers, with traditional religious beliefs (animism); 45% are Muslim, principally Fula and Mandinka speakers concentrated in the north and northeast. Other important groups are the Balanta and Papel, living in the southern coastal regions, and the Manjaco and Mancanha, occupying the central and northern coastal areas.

HISTORY

The rivers of Guinea and the islands of Cape Verde were among the first areas in Africa explored by the Portuguese in the 15th century. Portugal claimed Portuguese Guinea in 1446, but few trading posts were established before 1600. In 1630, a "captaincy-general" of Portuguese Guinea was established to administer the territory. With the cooperation of some local tribes, the Portuguese entered the slave trade and exported large numbers of Africans to the Western Hemisphere via the Cape Verde Islands. Cacheu became one of the major slave centers, and a small fort still stands in the town. The slave trade declined in the 19th century, and Bissau, originally founded as a military and slave-trading center in 1765, grew to become the major commercial center.

Portuguese conquest and consolidation of the interior did not begin until the latter half of the 19th century. Portugal lost part of Guinea to French West Africa, including the center of earlier Portuguese commercial interest, the Casamance River region. A dispute with Great Britain over the island of Bolama was settled in Portugal's favor with the involvement of U.S. President Ulysses S. Grant.

Before World War I, Portuguese forces, with some assistance from the Muslim population, subdued animist tribes and eventually established the territory's borders. The interior of Portuguese Guinea was brought under control after more than 30 years of fighting; final subjugation of the Bijagos Islands did not occur until 1936. The administrative capital was moved from Bolama to Bissau in 1941, and in 1952, by constitutional amendment, the colony of Portuguese Guinea became an overseas province of Portugal.

In 1956, Amilcar Cabral and Raphael Barbosa organized the African Party for the Independence of Guinea and Cape Verde (PAIGC) clandestinely. The PAIGC moved its headquarters to Conakry, Guinea, in 1960 and started an armed rebellion against the Portuguese in 1961. Despite the presence of Portuguese troops, which grew to more than 35,000, the PAIGC steadily expanded its influence until, by 1968, it controlled most of the country.

It established civilian rule in the territory under its control and held elections for a National Assembly. Portuguese forces and civilians increasingly were confined to their garrisons and larger towns. The Portuguese Governor and Commander in Chief from 1968 to 1973, Gen. Antonio de Spinola, returned to Portugal and led the movement that brought democracy to Portugal and independence for its colonies.

Amilcar Cabral was assassinated in Conakry in 1973, and party leadership fell to Aristides Pereira, who later became the first President of the Republic of Cape Verde. The PAIGC National Assembly met at Boe in the southeastern region and declared the independence of Guinea-Bissau on September 24, 1973. Following Portugal's April 1974 revolution, it granted independence to Guinea-Bissau on September 10, 1974. The United States recognized the new nation that day. Luis Cabral, Amilcar Cabral's half-brother, became President of Guinea-Bissau. In late 1980, the government was overthrown in a relatively bloodless coup led by Prime Minister and former armed forces commander Joao Bernardo "Nino" Vieira.

From November 1980 to May 1984, power was held by a provisional government responsible to a Revolutionary Council headed by President Joao Bernardo Vieira. In 1984, the council was dissolved, and the National Popular Assembly (ANP) was reconstituted. The single-party assembly approved a new constitution, elected President Vieira to a new 5-year term, and elected a Council of State, which was the executive agent of the ANP. Under this system, the president presided over the Council of State and served as head of state and government. The president also was head of the PAIGC and commander in chief of the armed forces.

There were alleged coup plots against the Vieira government in 1983, 1985, and 1993. In 1986, first Vice President Paulo Correia and five others were executed for treason following a lengthy trial. In 1994, the country's first multi-party legislative and presidential elections were held. An army uprising against the Vieira government in June 1998 triggered a bloody civil war that created hundreds of thousands of displaced persons and resulted in President Vieria having to request assistance from the governments of Senegal and Guinea, who provided troops to quell the uprising. The President was ousted by a military junta in May 1999. An interim government turned over power in February 2000 when opposition leader Kumba Yala, founder of the Social Renovation Party (PRS), took office following two rounds of transparent presidential elections.

Despite the elections, democracy did not take root in the succeeding 3 years. President Yala neither vetoed nor promulgated the new constitution that was approved by the National Assembly in April 2001. The resulting ambiguity undermined the rule of law. Impulsive presidential interventions in ministerial operations hampered effective governance. On November 14, 2002, the President dismissed the government of Prime Minister Alamara Nhasse, dissolved the National Assembly, and called for legislative elections. Two days later, he appointed Prime Minister Mario Pires to lead a caretaker government controlled by presidential decree. Elections for the National Assembly were scheduled for April 2003, but later postponed until June and then October. On September 12, 2003, the President of the National Elections Commission announced that it would be impossible to hold the elections on October 12, 2003, as scheduled. The army, led by Chief of Defense General Verrisimo Correia Seabra, intervened on September 14, 2003. President Yala announced his "voluntary" resignation and was placed under house arrest. The government was dissolved and a 25-member Committee for Restoration of Democracy and Constitutional Order was established. On September 28, 2003, businessman Henrique Rosa was sworn in as President. He had the support of most political parties and of civil society. Artur Sanha, PRS President, was sworn in as Prime Minister. On March 28 and 30, 2004, Guinea-Bissau held legislative elections which international observers deemed acceptably free and fair. On May 9, 2004, Carlos Gomes Junior became Prime Minister.

GOVERNMENT AND POLITICAL CONDITIONS

On August 10, 2005 Joao Bernardo Vieria was declared the winner of a July 24 presidential runoff election over Malam Bacai Sanha in an election judged by international observers to be free and fair. President Vieria was inaugurated on October 1, 2005. Prime Minister Carlos Gomes Junior refused to accept Vieira's victory, and on October 28, Vieira dismissed Gomes and his government. Five days later, he installed former PAIGC official Aristide Gomes as Prime Minister.

Throughout 2006, President Vieira struggled to maintain control over the National Assembly and the general operations of the government. In early March 2007, the three main political parties--the PAIGC, the PRS, and the PUSD--agreed to push for a "government of consensus" in the interests of parliamentary stability. President Vieira refused to accept the decision, and on March 19 the National Popular Assembly passed a vote of no confidence against Prime Minister Aristide Gomes. President Vieira was then faced with the decision of dissolving the government and calling for new elections or appointing a new prime minister. Prime Minister Gomes resigned on March 29. In early April 2007, after much resistance, President Vieira accepted the appointment of Martinho N'Dafa Cabi as the new Prime Minister.

Prime Minister Cabi has called for a "relentless" fight against drug trafficking and vowed to instill fiscal discipline in the Government of Guinea-Bissau. This is especially important given the recent increase in news media reports examining Guinea-Bissau's role in the West African regional drug trade. The government has implemented a number of policies to this end, and has succeeded in gaining the support of many in the donor community. Guinea-Bissau is perceived to be gaining political stability under this government, while still fragile. Parliamentary elections are scheduled for November 16, 2008. This election will be crucial to the ongoing efforts for growth and stability in the country.

ECONOMY

Guinea-Bissau is among the world's least developed nations and depends mainly on agriculture and fishing. Guinea-Bissau exports some fish and seafood, although most fishing in Guinea-Bissau's waters is presently not done by Bissau-Guineans and no fish or seafood is processed in Guinea-Bissau for export. The country's other important product is cashews. License fees for fishing provide the government with some revenue. Rice is a major crop and staple food and, if developed, Guinea-Bissau could potentially be self-sufficient in rice. Tropical fruits such as mangos could also provide more income to the country if the sector were developed. Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. However, unexploited offshore oil reserves may possibly provide much-needed revenue in the long run.

The military conflict that took place in Guinea-Bissau from June 1998 to early 1999 caused severe damage to the country's infrastructure and widely disrupted economic activity. Agricultural production is estimated to have fallen by 17% during the conflict, and the civil war led to a 28% overall drop in gross domestic product (GDP) in 1998. Cashew nut output, the main export crop, declined in 1998 by an estimated 30%. World cashew prices dropped by more than 50% in 2000, compounding the economic devastation caused by the conflict. Before the war, trade reform and price liberalization were the most successful part of the country's structural adjustment program under International Monetary Fund (IMF) sponsorship. Under the government's post-conflict economic and financial program, implemented with IMF and World Bank input, real GDP recovered in 1999 by almost 8%. In December 2000 Guinea-Bissau qualified for almost $800 million in debt-service relief under the first phase of the enhanced Heavily Indebted Poor Countries (HIPC) initiative. However, Guinea-Bissau's Poverty Reduction and Growth Fund program with the IMF was suspended that same month--following disbursement of the first tranche--due to off-program expenditures by the Yala regime. Thus, IMF and Paris Club internal debt relief for Guinea-Bissau was also suspended in 2001.

After a disastrous 2006, Guinea-Bissau's economy bounced back in 2007. Cashews, the country's principal cash crop, rebounded strongly in 2007 after the government's 2006 attempt to artificially set the price of cashews at 70 U.S. cents/kg--more than twice what traders were willing to pay. The economy also benefited from robust growth in the country's tourism industry. Guinea-Bissau appears ready to continue its economic growth in 2008 with new support from international donors and a recovery in cashew exports. Guinea Bissau has announced that Angola will be investing U.S. $500 million in a project to mine 3 million tons of bauxite per year. The IMF and World Bank resumed development support, and in January 2008 the IMF announced its approval for $2.8 million in emergency post-conflict assistance. Oil prospecting continues; however, this has yet to provide results that would encourage significant investment. GDP is projected to increase in 2008, with the deficit projected to decrease.

FOREIGN RELATIONS

Guinea-Bissau follows a nonaligned foreign policy and seeks friendly and cooperative relations with a wide variety of states and organizations. Angola, Cuba, the European Union, France, Gambia, Portugal, Brazil, Nigeria, People's Republic of China, Libya, Senegal, Spain, Guinea, and Russia have embassies in Bissau. Belgium, Canada, Germany, Mauritania, the Netherlands, Italy, Sweden, Switzerland, the United Kingdom, and the U.S. conduct diplomatic relations with Guinea-Bissau through their embassies in neighboring Dakar, Senegal.

Guinea-Bissau is a member of the UN and many of its specialized and related agencies. It is a member of the World Bank and the International Monetary Fund (IMF); African Development Bank (AFDB), Economic Community of West African States (ECOWAS), West African Economic and Monetary Union (WAEMU), Organization of the Islamic Conference (OIC), African Union, and permanent Interstate Committee for drought control in the Sahel (CILSS). Guinea-Bissau also is a member of the Group of 77 (G-77), International Civil Aviation Organization (ICAO), Food and Agriculture Organization (FAO), and World Health Organization (WHO).

U.S.-GUINEA-BISSAU RELATIONS

The U.S. Embassy suspended operations in Bissau on June 14, 1998, in the midst of violent conflict between forces loyal to then-President Vieira and the military-led junta. Prior to and following the Embassy closure, the United States and Guinea-Bissau have enjoyed excellent bilateral relations.

The U.S. recognized the independence of Guinea-Bissau on September 10, 1974. Guinea-Bissau's Ambassador to the United States and the United Nations was one of the first the new nation sent abroad. The U.S. opened an Embassy in Bissau in 1976, and the first U.S. Ambassador presented credentials later that year.

U.S. assistance began in 1975 with a $1 million grant to the UN High Commissioner for Refugees for resettlement of refugees returning to Guinea-Bissau and for 25 training grants at African technical schools for Guinean students. Emergency food was a major element in U.S. assistance to Guinea-Bissau in the first years after independence. Since 1975, the U.S. has provided more than $65 million in grant aid and other assistance.

Since the 1998 war the U.S. has provided over $800,000 for humanitarian demining to a non-governmental organization (NGO) which has removed over 2,500 mines and 11,000 unexploded ordnance from the city of Bissau; $1.6 million in food aid; and nearly $3 million for assistance for refugees, improving the cashew industry, and promoting democracy.

The United States and Guinea-Bissau signed an international military education and training (IMET) agreement in 1986, and prior to 1998, the U.S. provided English-language teaching facilities as well as communications and navigational equipment to support the navy's coastal surveillance program. The U.S. European Command's Humanitarian Assistance Program has assisted with $390,000 for constructing or repairing schools, health centers, and bridges.

The Peace Corps withdrew from Guinea-Bissau in 1998 at the start of the civil war.

In August 2004, sanctions under Section 508 of the Foreign Operations Appropriations Act--which were imposed as a result of the September 2003 military coup--were lifted and Bissau once again became eligible for IMET and other direct aid.

In March 2007, the U.S. and Brazil signed a Tripartite Memorandum of Understanding with Guinea-Bissau highlighting a parliamentary strengthening project first implemented in 2005.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/5454.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Co-operative Republic of Guyana

Geography

Area: 214,970 sq. km. (83,000 sq. mi.); about the size of Idaho.
Cities: Capital--Georgetown (pop. 150,000). Other cities--Linden (29,000) and New Amsterdam (18,000).
Terrain: Low coastal plain, hilly sand and clay region, forested highlands, interior savanna.
Climate: Tropical.

People

Nationality: Noun and adjective--Guyanese (sing. and pl.).
Population (2006, Government of Guyana): 760,200.
Ethnic groups: East Indian origin 43%, African origin 30%, mixed 17%, Amerindian 9%.
Religions: Christian 57%, Hindu 28%, Muslim 10%, other 5%.
Languages: English, Guyanese Creole, Amerindian languages (primarily Carib and Arawak).
Education: Years compulsory--ages 5 1/2 to 14 1/2. Attendance--primary 93.6%, secondary 93%. Literacy--96.5% of adults who have attended school.
Health: Infant mortality rate--49/1,000. Life expectancy--men 59 yrs., women 64 yrs.
Work force (278,000): Industry and commerce--36.4%; agriculture--30.2%; services--30.2%; other--3.2%.

Government

Type: Republic within the Commonwealth.
Independence: May 26, 1966; Republic, February 23, 1970.
Constitution: 1980.
Branches: Executive--president (chief of state and head of government), prime minister. Legislative--unicameral National Assembly of 65 deputies. The ten administrative regions of the country elect 25 members, 40 are elected from party lists by proportion of the national vote. Judicial--Judicial Court of Appeal, High Court.
Subdivisions: 10 regions.
Political parties (voting seats in the National Assembly): People's Progressive Party/Civic (PPP/C) 36; People's National Congress (PNC) 22; Alliance for Change (AFC) 5, Guyana Action Party/Rise Organize and Rebuild (GAP/ROAR) 1; and The United Force (TUF) 1. Presidential and parliamentary elections were last held August 28, 2006.
Suffrage: Universal at 18.

Economy (2007, U.S. $)
Real GDP: $847.9 million.
Real annual growth rate: 5.4%.
Per capita GDP: $1,111.
Agriculture: Products--sugar, rice, fresh fruits and vegetables.
Natural resources: Gold, bauxite, diamonds, timber.
Industry: Types--mining (gold, bauxite, diamonds), agriculture (sugar, rice, livestock, fresh fruits and vegetables), forestry, fisheries, manufacturing (beverage, foodstuff processing, apparel, footwear assembly, pharmaceuticals), construction, and services (distribution, financial, transport and communication).
Merchandise trade: Exports--$680.9 million: gold, sugar, bauxite, fish and shrimp, rice, timber, diamonds. Major markets--U.S., Canada, U.K. Imports--$1.06 billion. Major suppliers--Trinidad and Tobago, U.S., China, Cuba, U.K.

PEOPLE

Guyana's population is made up of five main ethnic groups--East Indian, African, Amerindian, Chinese, and Portuguese. Ninety percent of the inhabitants live on the narrow coastal plain, where population density is more than 115 persons per square kilometer (380 per sq. mi.). The population density for Guyana as a whole is low--less than four persons per square kilometer. Although the government has provided free education from nursery school to the university level since 1975, it has not allocated sufficient funds to maintain the standards of what had been considered the best educational system in the region. Many school buildings are in poor condition, there is a shortage of text and exercise books, the number of teachers has declined, and fees are being charged at the university level for some courses of study.

HISTORY

Before the arrival of Europeans, the region was inhabited by both Carib and Arawak tribes, who named it Guiana, which means land of many waters. The Dutch settled in Guyana in the late 16th century, but their control ended when the British became the de facto rulers in 1796. In 1815, the colonies of Essequibo, Demerara, and Berbice were officially ceded to Great Britain at the Congress of Vienna and, in 1831, were consolidated as British Guiana. Following the abolition of slavery in 1834, thousands of indentured laborers were brought to Guyana to replace the slaves on the sugarcane plantations, primarily from India but also from Portugal and China. The British stopped the practice in 1917. Many of the Afro-Guyanese former slaves moved to the towns and became the majority urban population, whereas the Indo-Guyanese remained predominantly rural. A scheme in 1862 to bring black workers from the United States was unsuccessful. The small Amerindian population lives in the country's interior.

The people drawn from these diverse origins have coexisted peacefully for the most part. Slave revolts, such as the one in 1763 led by Guyana's national hero, Cuffy, demonstrated the desire for basic rights but also a willingness to compromise. Politically inspired racial disturbances between Indo-Guyanese and Afro-Guyanese erupted in 1962-64, and again following elections in 1997 and 2001. The conservative and cooperative nature of Guyanese society has contributed to a cooling of racial tensions; however, such tensions do constitute Guyana's most sensitive social stress point.

Guyanese political history has been turbulent. The first modern political party in Guyana was the People's Progressive Party (PPP), established on January 1, 1950, with Forbes Burnham, a British-educated Afro-Guyanese, as chairman; Dr. Cheddi Jagan, a U.S.-educated Indo-Guyanese, as second vice chairman; and Dr. Jagan's American-born wife, Janet Jagan, as secretary general. The PPP won 18 out of 24 seats in the first popular elections permitted by the colonial government in 1953, and Dr. Jagan became leader of the house and minister of agriculture in the colonial government. Five months later, on October 9, 1953, the British suspended the constitution and landed troops because, they said, the Jagans and the PPP were planning to make Guyana a communist state. These events led to a split in the PPP, in which Burnham broke away and founded what eventually became the People's National Congress (PNC).

Elections were permitted again in 1957 and 1961, and Cheddi Jagan's PPP ticket won on both occasions, with 48% of the vote in 1957 and 43% in 1961. Cheddi Jagan became the first premier of British Guiana, a position he held for 7 years. At a constitutional conference in London in 1963, the U.K. Government agreed to grant independence to the colony but only after another election in which proportional representation would be introduced for the first time. It was widely believed that this system would reduce the number of seats won by the PPP and prevent it from obtaining a clear majority in Parliament. The December 1964 elections gave the PPP 46%, the PNC 41%, and the United Force (TUF), a conservative party, 12%. TUF threw its votes in the legislature to Forbes Burnham, who became prime minister.

Guyana achieved independence in May 1966, and became a republic on February 23, 1970--the anniversary of the Cuffy slave rebellion. From December 1964 until his death in August 1985, Forbes Burnham ruled Guyana in an increasingly autocratic manner, first as prime minister and later, after the adoption of a new constitution in 1980, as executive president. During that timeframe, elections were viewed in Guyana and abroad as fraudulent. Human rights and civil liberties were suppressed, and two major political assassinations occurred: the Jesuit Priest and journalist Bernard Darke in July 1979, and the distinguished historian and WPA Party leader Walter Rodney in June 1980. Agents of President Burnham are widely believed to have been responsible for both deaths.

Following Burnham's own death in 1985, Prime Minister Hugh Desmond Hoyte acceded to the presidency and was formally elected in the December 1985 national elections. Hoyte gradually reversed Burnham's policies, moving from state socialism and one-party control to a market economy and unrestricted freedom of the press and assembly. On October 5, 1992, a new National Assembly and regional councils were elected in the first Guyanese election since 1964 to be internationally recognized as free and fair. Cheddi Jagan was elected and sworn in as president on October 9, 1992.

When President Jagan died in March 1997, Prime Minister Samuel Hinds replaced him in accordance with constitutional provisions. President Jagan's widow, Janet Jagan, was elected president in December 1997. She resigned in August 1999 due to ill health and was succeeded by Finance Minister Bharrat Jagdeo, who had been named prime minister a day earlier. National elections were held on March 19, 2001. Incumbent President Jagdeo won re-election with a voter turnout of over 90%. President Jagdeo won re-election again in national elections held on August 28, 2006, the first non-violent elections held in more than 20 years.

GOVERNMENT

Legislative power rests in a unicameral National Assembly, generally referred to as Parliament, with 40 members chosen on the basis of proportional representation from national lists named by the political parties. An additional 25 members are elected by regional administrative districts. The Parliament is not directly elected; each party presents slates of candidates at the time of national elections. After the election, each party leader selects from the party lists the individuals who will represent the party in Parliament. The president may dissolve the assembly and call new elections at any time, but no later than five years from its first sitting.

Executive authority is exercised by the president, who appoints and supervises the prime minister and other ministers. As with members of Parliament, the president is not directly elected; each party presenting a slate of candidates for the assembly must designate in advance a leader who will become president if that party receives the largest number of votes. Any dissolution of the assembly and election of a new assembly can lead to a change in the assembly majority and consequently a change in the presidency. Most cabinet ministers must be members of the National Assembly; the constitution limits non-member "technocrat" ministers to five. Technocrat ministers serve as non-elected members of the National Assembly, which permits them to debate but not to vote.

The highest judicial body is the Court of Appeal, headed by a chancellor of the judiciary. The second level is the High Court, presided over by a chief justice. The chancellor and the chief justice are appointed by the president.

For administrative purposes, Guyana is divided into ten regions, each headed by a chairman who is appointed by the central government; the chairman presides over a regional democratic council. Local communities are administered by village or city councils.

POLITICAL CONDITIONS

Race and ideology have long been the dominant political influences in Guyana. Since the split of the multiracial PPP in 1955, politics has been based more on ethnicity than on ideology. From 1964 to 1992, the PNC dominated Guyana's politics. The PNC draws its support primarily from urban Afro-Guyanese, and for many years declared itself a socialist vanguard party whose purpose was to make Guyana a nonaligned socialist state, in which the party, as in communist countries, was above all other institutions.

A majority of Indo-Guyanese have traditionally backed the People's Progressive Party. Rice farmers and sugar workers in the rural areas form the bulk of PPP's support. Indo-Guyanese who dominate the country's urban business community also have provided important support to both parties, depending on which was in power at the time.

Following independence, and with the help of substantial foreign aid, social benefits were provided to a broader section of the population, specifically in health, education, housing, road and bridge building, agriculture, and rural development. During Forbes Burnham's last years, however, the government's attempts to build a socialist society, including banning importation of basic foodstuffs, caused a massive emigration of skilled workers, and, along with other economic factors, led to a significant decline in the overall quality of life in Guyana.

After Burnham's death in 1985, President Hoyte took steps to stem the economic decline, including strengthening financial controls over the parastatal corporations and supporting the private sector. In August 1987, at a PNC Congress, Hoyte announced that the PNC rejected orthodox communism and the one-party state.

As the elections scheduled for 1990 approached, Hoyte, under increasing pressure from inside and outside Guyana, gradually opened the political system. After a visit to Guyana by former U.S. President Jimmy Carter in 1990, Hoyte made changes in the electoral rules, appointed a new chairman of the Elections Commission, and endorsed putting together new voters' lists, thus delaying the election. The elections, which finally took place in 1992, were witnessed by 100 international observers, including a group headed by Mr. Carter and another from the Commonwealth of Nations. Both groups issued reports saying that the elections had been free and fair, despite violent attacks on the Elections Commission building on election day and other irregularities.

Cheddi Jagan served as Premier (1957-64) and then minority leader in Parliament until his election as President in 1992. One of the Caribbean's most charismatic and famous leaders, Jagan was a founder of the PPP, which led Guyana's struggle for independence. Over the years, he moderated his Marxist-Leninist ideology. After his election as President, Jagan demonstrated a commitment to democracy, followed a pro-Western foreign policy, adopted free market policies, and pursued sustainable development for Guyana's environment. Nonetheless, he continued to press for debt relief and a new global human order in which developed countries would increase assistance to less developed nations. Jagan died on March 6, 1997, and was succeeded by Samuel A. Hinds, whom he had appointed Prime Minister. President Hinds then appointed Janet Jagan, widow of the late President, to serve as Prime Minister.

In national elections on December 15, 1997, Janet Jagan was elected President, and her PPP party won a 55% majority of seats in Parliament. Mrs. Jagan had been a founding member of the PPP and was very active in party politics. In addition to becoming Guyana's first female president, she had also been Guyana's first female prime minister and vice president, two roles she performed concurrently before being elected to the presidency.

The PNC, which won just under 40% of the vote, disputed the results of the 1997 elections, alleging electoral fraud. Public demonstrations and some violence followed, until a CARICOM team came to Georgetown to broker an accord between the two parties, calling for an international audit of the election results, a redrafting of the constitution, and elections under the constitution within 3 years. Elections took place on March 19, 2001. More than 150 international observers representing six international missions witnessed the polling. The observers pronounced the elections fair and open although marred by some administrative problems. As in 1997, public demonstrations and some violence followed the election, with the opposition PNCR disputing the results. The political disturbances following the election partially overlapped and politicized a major crime wave that gripped Guyana from the spring of 2002 through May 2003. By summer 2003 the worst of the crime wave had abated, and agitation over the election had subsided.

A lack of legal clarity over voter registration rules, in particular the legality of Guyanese remaining on the voter rolls after emigrating, fed a political stalemate that delayed the 2006 elections as opposition parties demanded a full house-to-house verification of the voter list. Ultimately, the election was held using the 2001 voting list--which the opposition had earlier deemed valid--plus new registrations. The Organization of American States and the Commonwealth observed the 2006 elections and considered them to be largely free and fair.

In early 2008, national electoral authorities commenced a voter re-registration exercise, scrutinized by the major political parties, in order to produce a fresh and widely accepted voter list. This exercise concludes in July 2008, in anticipation of nationwide municipal elections in early 2009. Municipal elections have not been held since 1994.

A general lack of trust between the predominantly Indo-Guyanese PPP/C and the almost exclusively Afro-Guyanese PNC/R persists. Co-founded prior to the 2006 parliamentary elections by disaffected members of the PPP/C and PNC/R, the Alliance For Change party has attempted to bridge the political and racial divide, but holds only five seats in Parliament and has gained minimal traction.

Due to constitutional term limits, President Jagdeo is not eligible to run for reelection again when his terms concludes in 2011. There is no established frontrunner to succeed him.

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

ECONOMY

In 2007, the real gross domestic product (GDP) of the Guyanese economy increased by 5.4%, exceeding expectations. Strong growth in the sugar, fishery, livestock, mining, and manufacturing sectors contributed to the economy's performance.

Agriculture

The agricultural sector (including sugar processing and rice milling) recorded a real 0.7% increase during 2007. The growth partly reflected stable weather conditions and large investment in drainage and irrigation facilities. In addition, the government has undertaken initiatives, with U.S. Government support, to increase production in the nontraditional agriculture sector.

Fishing and Livestock

The fishing sector grew 44.3% in real terms in 2007 due to increases of 6.7% and 96.1% in fish and shrimp catches, respectively. The launching of the Fisheries Management Plan, the recertification of Guyanese fish by the U.S., and the construction of an aquaculture hatchery contributed to this increase. Despite these improvements, the fishing sector continues to be plagued by piracy and increasing machine and fuel costs. In 2007, the livestock sector grew 2% in real terms, largely due to the re-entry of a major livestock producer into the industry, the establishment of additional pastures, and government assistance in controlling pests and diseases.

Forestry

Logging and plywood output decreased in 2007 by 16.1% and 1.2%, respectively. The decrease in logging is largely attributed to the suspension of logging permits as a result of environmental concerns, and increases in freight and insurance costs. In contrast, the production of sawn-wood increased by 10.1%.

Mining

The mining sector grew 22.7% in real terms during 2007. This reflected the substantial investment and restructuring in the bauxite industry in recent years and increased world prices for bauxite and gold.

Manufacturing

The manufacturing sector (excluding sugar processing and rice milling) grew by 1% in 2007. High global prices for inputs adversely affected growth.

Construction

The construction sector grew 5.7% in 2007. Private investment in hotel construction and housing and a 2.2% increase in public sector investment in schools, roads, low-cost housing, and drainage and irrigation contributed to growth.

Services

The service sector increased 7% in 2007. The transport and communications sub-sectors grew by 13%, helped by heightened competition in the telecommunications sector as new cell phone and Internet providers entered the market.

Inflation

The Consumer Price Index (CPI) rose by 14% in 2007, a significant increase from the 4.2% inflation experienced in 2006. This was associated with implementation of a value-added tax (VAT) at the beginning of 2007, rising global food and commodity prices, and increased fuel costs.

Exchange Rate

The exchange rate remains stable; the Guyana dollar currently trades at G$200/U.S.$1.

Total Investment

Total 2007 investment rose by 4.9% to U.S. $434.0 million, due to increased public sector investment and a modestly improved investment climate in Guyana. Public investment accounted for slightly less than half of total investment. This increase reflected the government's aim to maintain infrastructure needed for sustained growth and development, such as roads, bridges, sea defense, drainage and irrigation, and schools. The government also allocated funds for improvement in agriculture, housing and water, and national security. Private investment, spurred by government incentives, increased by 8.5% to U.S. $222.5 million. Major investments include mining, construction, transport and communications, and distribution sectors. Foreign direct investment from the U.S. accounted for approximately U.S. $24.5 million, or 1.1%, of private investment in Guyana.

External Debt

Guyana continued to benefit from debt relief under the Multilateral Debt Relief Initiative (MDRI) during 2007. Guyana's outstanding public and publicly guaranteed external debt contracted by 31.1% to U.S. $718 million at the end of the year due to the MDRI and other debt write-offs. As a result, debt service payments declined by 18.1% to U.S. $19 million and the Inter-American Development Bank no longer considers Guyana a highly indebted poor country.

FOREIGN RELATIONS

After independence in 1966, Guyana sought an influential role in international affairs, particularly among Third World and nonaligned nations. It served twice on the UN Security Council (1975-76 and 1982-83). Former Vice President, Deputy Prime Minister, and Attorney General Mohamed Shahabuddeen served a 9-year term on the International Court of Justice (1987-96).

Guyana has diplomatic relations with a wide range of nations. The European Union (EU), the Inter-American Development Bank (IDB), the UN Development Program (UNDP), the World Health Organization (WHO), and the Organization of American States (OAS) have offices in Georgetown. The Caribbean Community (CARICOM) has its Secretariat headquartered in Georgetown.

Guyana strongly supports the concept of regional integration. It played an important role in the founding of the Caribbean Community and Common Market (CARICOM), but its status as one of the organization's poorest members limits its ability to exert leadership in regional activities. Guyana has sought to keep foreign policy in close alignment with the consensus of CARICOM members, especially in voting in the UN, OAS, and other international organizations.

A longstanding maritime boundary dispute with Suriname was resolved largely in Guyana's favor in August 2007. The dispute had flared up in June 2000, when a Canadian company drilling for oil under a Guyanese concession was forced to cease operations by Surinamese military gunboats. After several failed attempts at negotiation, in 2004 Guyana took the dispute to the UN Law of the Sea tribunal, which unanimously determined that the vast majority of the area in contention belonged to Guyana. The resolution of this dispute will likely have significant ramifications for Guyana's economy in the long term, as the seabed is estimated to contain approximately 15 billion barrels of oil.

Another territorial disagreement remains unresolved, however. In 1962 Venezuela challenged a previously accepted 1899 international arbitration award, and claimed all of Guyana west of the Essequibo River--62% of Guyana's territory. At a meeting in Geneva in 1966, the two countries agreed to receive recommendations from a representative of the UN Secretary General on ways to settle the dispute peacefully. Diplomatic contacts between the two countries and the Secretary General's representative continue, with a quiet détente on the issue currently prevailing.

U.S.-GUYANESE RELATIONS

U.S. policy toward Guyana seeks to develop robust, sustainable democratic institutions, laws, and political practices; support economic growth and development; and promote stability and security. During the last years of his administration, President Hoyte sought to improve relations with the United States as part of a decision to move his country toward genuine political nonalignment. Relations also were improved by Hoyte's efforts to respect human rights, reform the economy, invite international observers for the 1992 elections, and reform electoral laws. Successive democratic elections and Guyana's reaffirmation of sound economic policies and respect for human rights have placed U.S.-Guyanese relations on an excellent footing. Under successive PPP governments, the United States and Guyana have continued to improve relations, and the United States maintains positive relations with the current government of President Jagdeo.

In an effort to combat the spread of HIV/AIDS in Guyana, the U.S. Centers for Disease Control and Prevention (CDC) opened an office at the U.S. Embassy in 2002. In January 2003, Guyana was named as one of only two countries in the Western Hemisphere to be included in President Bush's Emergency Plan for AIDS Relief (PEPFAR). CDC, in coordination with the U.S. Agency for International Development (USAID), is administering a 5-year multi-million dollar program of education, prevention, and treatment for those infected and affected by the disease. Guyana also benefits from a $6.7 million, two-year threshold country program under the U.S. Millennium Challenge Account developmental program.

U.S. military medical and engineering teams continue to conduct training exercises in Guyana, digging wells, building schools and clinics, and providing medical treatment.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/1984.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Republic of Haiti

Geography

Area: 27,750 sq. km. (10,714 sq. mi.); about the size of Maryland. Ile de la Gonave, Ile de la Tortue, and Ile a Vaches comprise Haiti's principal offshore territories.
Cities: Capital--Port-au-Prince (pop. 2 million). Other cities--Cap Haitien (pop. 240,000).
Terrain: Rugged mountains with small coastal plains and river valleys, and a large east-central elevated plateau.
Climate: Warm, semiarid, high humidity in many coastal areas.

People

Nationality: Noun and adjective--Haitian(s).
Population (2006 census): 8.5 million.
Annual population growth rate: 1975-2001, 1.9%; 2.5% per year.
Ethnic groups: African descent 95%, African and European descent 5%.
Religions (2003 data): Roman Catholic 55%, Protestant 28%, voudou (voodoo) practices pervasive.
Languages: French (official), Creole (official).
Education: Years compulsory--6. Adult literacy (2006 census)--56%.
Health: Child mortality--1 out of 8 children die before they reach the age of five. Life expectancy--56 years (women), 52 years (men).

Government

Type: Republic.
Independence: January 1, 1804.
Constitution: March 1987.
Branches: Executive--President. Legislative--Senate (30 seats), Chamber of Deputies (99 seats). Judicial--Court of Cassation.
Administrative subdivisions: Ten departments.
Political parties and coalitions: Lespwa, Fanmi Lavalas (FL), Struggling People's Organization (OPL), Open the Gate Party (PLB), Christian Movement for a New Haiti (MOCHRENHA), Tet Ansam, Fusion of Socialist Democrats (FUSION), Grand Center Right Front Coalition, Assembly of Progressive National Democrats (RNDP), Union to Save Haiti, Mobilisation for Haiti's progress, Haitian Democratic and Reform Movement, several others.
Suffrage: Universal at 18.

Economy

GDP (2007): $6.1 billion.
Real GDP growth rate (2007): 3.2%.
Per capita GDP (2007): $713.
GDP by sector (2006): Agriculture--27%; industry--8%; services--40%; other--25%.
Inflation (2007 est.): 8.1%.
Natural resources: Bauxite, copper, calcium carbonate, gold, marble.
Agriculture (27% of GDP): Products--coffee, mangoes, sugarcane, rice, corn, cacao, sorghum, pulses, other fruits and vegetables.
Industry (8% of GDP): Types--apparel, handicrafts, electronics assembly, food processing, beverages, tobacco products, furniture, printing, chemicals, steel.
Services (40% of GDP): Commerce, hotels and restaurants, government, tourism.
Trade (2006 est.): Total exports f.o.b.--$494.4 million: apparel, mangoes, leather and raw hides, seafood, electrical. Major market--U.S. Total imports f.o.b.--$1,548.3 million: grains, soybean oil, motor vehicles, machinery, meat, vegetables, plastics, petroleum.
Note: There are serious problems with national accounts in Haiti, including incomplete coverage and the questionable accuracy of raw data.

PEOPLE

Although Haiti averages about 302 people per square kilometer, its population is concentrated most heavily in urban areas, coastal plains, and valleys. About 95% of Haitians are of African descent. The rest of the population is mostly of mixed Caucasian-African ancestry. A few are of European or Levantine heritage. Sixty percent of the population lives in rural areas.

French is one of two official languages, but it is spoken fluently by only about 10% of the people. All Haitians speak Creole, the country's other official language. English and Spanish are increasingly used as second languages among the young and in the business sector.

The dominant religion is Roman Catholicism. Increasing numbers of Haitians have converted to Protestantism through the work of missionaries active throughout the country. Much of the population also practices voudou (voodoo), recognized by the government as a religion in April 2003. Haitians tend to see no conflict in these African-rooted beliefs coexisting with Christian faith.

Although public education is free, the cost is still quite high for Haitian families who must pay for uniforms, textbooks, supplies, and other inputs. Due to weak state provision of education services, private and parochial schools account for approximately 90% of primary schools, and only 65% of primary school-aged children are actually enrolled. At the secondary level, the figure drops to around 20%. Less than 35% of those who enter will complete primary school. Though Haitians place a high value on education, few can afford to send their children to secondary school and primary school enrollment is dropping due to economic factors. Remittances sent by Haitians living abroad are important in paying educational costs.

Large-scale emigration, principally to the U.S.--but also to Canada, the Dominican Republic, The Bahamas and other Caribbean neighbors, and France--has created what Haitians refer to as the Eleventh Department or the Diaspora. About one of every eight Haitians lives abroad.

HISTORY

The Spaniards used the island of Hispaniola (of which Haiti is the western part and the Dominican Republic the eastern) as a launching point from which to explore the rest of the Western Hemisphere. French buccaneers later used the western third of the island as a point from which to harass English and Spanish ships. In 1697, Spain ceded the western third of Hispaniola to France. As piracy was gradually suppressed, some French adventurers became planters, making Saint Domingue, as the French portion of the island was known, the "pearl of the Antilles"--one of the richest colonies in the 18th century French empire.

During this period, African slaves were brought to work on sugarcane and coffee plantations. In 1791, the slave population revolted--led by Toussaint L'Ouverture, Jean Jacques Dessalines, and Henri Christophe--and gained control of the northern part of the French colony, waging a war of attrition against the French.

By January 1804, local forces defeated an army sent by Napoleon Bonaparte, established independence from France, and renamed the area Haiti. The impending defeat of the French in Haiti is widely credited with contributing to Napoleon's decision to sell the Louisiana territory to the United States in 1803. Haiti is the world's oldest black republic and the second-oldest republic in the Western Hemisphere, after the United States. Although Haiti actively assisted the independence movements of many Latin American countries, the independent nation of former slaves was excluded from the hemisphere's first regional meeting of independent nations, in Panama in 1826, and did not receive U.S. diplomatic recognition until 1862.

Two separate regimes--north and south--emerged after independence but were unified in 1820. Two years later, Haiti occupied Santo Domingo, the eastern, Spanish-speaking part of Hispaniola. In 1844, however, Santo Domingo broke away from Haiti and became the Dominican Republic. With 22 changes of government from 1843 to 1915, Haiti experienced numerous periods of intense political and economic disorder, prompting the United States military intervention of 1915. Following a 19-year occupation, U.S. military forces were withdrawn in 1934, and Haiti regained sovereign rule.

From February 7, 1986--when the 29-year dictatorship of the Duvalier family ended--until 1991, Haiti was ruled by a series of provisional governments. In March 1987, a constitution was ratified that provides for an elected, bicameral parliament; an elected president that serves as head of state; and a prime minister, cabinet, ministers, and supreme court appointed by the president with parliament's consent. The Haitian Constitution also provides for political decentralization through the election of mayors and administrative bodies responsible for local government.

In December 1990, Jean-Bertrand Aristide won 67% of the vote in a presidential election that international observers deemed largely free and fair. Aristide took office on February 7, 1991, but was overthrown that September in a violent coup led by army elements and supported by many of the country's economic elite. The coup contributed to a large-scale exodus of Haitians by boat. From October 1991 to September 1994 a de facto military regime governed Haiti. Several thousand Haitians may have been killed during the de facto military rule. Various OAS and UN initiatives to end the political crisis through the peaceful restoration of the constitutionally elected government failed. On July 31, 1994, the UN Security Council adopted Resolution 940, which authorized member states to use all necessary means to facilitate the departure of Haiti's military leadership and to restore Haiti's constitutionally elected government to power.

The United States took the lead in forming a multinational force (MNF) to carry out the UN's mandate by means of a military intervention. In mid-September, with U.S. troops prepared to enter Haiti by force, Gen. Raoul Cedras and other top leaders agreed to accept the intervention of the MNF. On September 19, 1994, the first contingents of what became a 21,000-member international force touched down in Haiti to oversee the end of military rule and the restoration of the constitutional government. President Aristide and other elected officials in exile returned on October 15.

Nationwide local and parliamentary elections in June 1995 returned a pro-Aristide, multi-party coalition called the Lavalas Political Organization (OPL) to power at all levels. In accordance with the constitutional bar on succeeding himself, President Aristide agreed to step aside and support a presidential election in December 1995. Rene Preval, a prominent Aristide political ally, took 88% of the vote, and was sworn in to a 5-year term on February 7, 1996, during what was Haiti's first-ever transition between two democratically elected presidents.

In late 1996, former President Aristide broke from the OPL and created a new political party, the Lavalas Family (FL). The OPL, holding the majority of the Parliament, renamed itself the Struggling People's Organization. Initial results of elections in April 1997 for the renewal of one-third of the Senate and creation of commune-level assemblies and town delegations showed victories for FL candidates in most races. However, the elections, which drew only about 5% of registered voters, were plagued with allegations of fraud and not certified by most international observers as free and fair.

The government was unable to organize local and parliamentary elections due in late 1998. In early January 1999, President Preval dismissed legislators whose terms had expired--the entire Chamber of Deputies and all but nine members of the Senate--and converted local elected officials into state employees. The President and Prime Minister then ruled by decree, establishing a cabinet composed almost entirely of FL partisans. First round elections for local councils--ASEC and CASEC, municipal governments, town delegates, the Chamber of Deputies, and two-thirds of the Senate took place on May 21, 2000. The election drew the participation of a multitude of candidates from a wide array of political parties and a voter turnout of more than 60%. Manipulated vote counting by the Provisional Electoral Council (CEP) prevented run-off elections for eight Senate seats and gave the FL a virtual sweep in the first round. Although the flawed vote count undercut the credibility of the election, Haiti's new Parliament, including the contested Senators, was convened on August 28, 2000.

After this flawed election, Haiti's main bilateral donors re-channeled their assistance away from the government and announced they would not support or send observers to the November elections. Most opposition parties regrouped in an alliance that became the Democratic Convergence. Elections for President and nine Senators took place on November 26, 2000. All major opposition parties boycotted these elections, in which voter participation was estimated at 5%. Jean-Bertrand Aristide emerged as the easy victor of these controversial elections, and the candidates of his FL party swept all contested Senate seats. On February 7, 2001, Jean-Bertrand Aristide was inaugurated as President.

The political stalemate continued, and violence ensued. On July 28, 2001, unknown gunmen attacked police facilities in Port-au-Prince and the provinces. A subsequent government crackdown on opposition party members and former soldiers further increased tensions between Lavalas and Convergence. On December 17, 2001, unidentified gunmen attacked the National Palace in Port-au-Prince. Following the assault, pro-government groups attacked the offices and homes of several opposition leaders. One opposition member was killed. Negotiations between FL and Democratic Convergence were suspended indefinitely.

In January 2002, the OAS Permanent Council adopted Resolution 806 on Haiti that called for government action to address the political stalemate, growing violence, and deterioration in respect for human rights. It also authorized OAS establishment of a Special Mission in Haiti to support implementation of steps called for in Resolution 806. The OAS Special Mission worked with the government on plans to strengthen Haiti's democratic institutions in security, justice, human rights, and governance.

Security continued to deteriorate. Protest strikes and attacks on opposition demonstrations by government-supported gangs hardened attitudes on both sides. The opposition issued a public call for Aristide's removal and announced plans for a transitional government. In March 2003, a high-level joint delegation of the OAS and Caribbean Community (CARICOM) presented demands to President Aristide to restore public security; select new leadership for the Haitian National Police; arrest a notorious gang leader; and disarm the security forces used by government politicians to intimidate opponents.

Events spiraled downward: government-paid thugs violently disrupted a civil society public ceremony July 12 in Cite Soleil; police attacked civil society marches in Cap Haitien August 30 and September 14 and prevented an opposition march scheduled for October 5. Political instability grew throughout fall 2003. In Gonaives, hitherto pro-Aristide gang members led a violent rebellion against government authorities in the city. Government-sponsored repression of opposition protests reached a nadir when on December 5 pro-government gangs entered Haiti's state university campus and broke the legs of the Rector.

Following a meeting with Aristide at the Summit of the Americas in January 2004, Caribbean Community leaders proposed a plan to resolve the political crisis that President Aristide stated he accepted . A high-level international delegation came to Haiti February 21 to obtain agreement on a specific implementation timetable. President Aristide agreed, but the opposition "Democratic Platform" group of political parties and civil society expressed reservations. Meanwhile, the violence in Gonaives culminated February 5 in the "Artibonite Resistance Front" seizing control of the city. Other armed groups opposed to the Aristide government quickly emerged and succeeded in seizing control of many towns, mostly with little resistance from government authorities. By February 28, 2004, a rebel group led by a former police chief, Guy Philippe, advanced to within 25 miles of the capital. On February 29, 2004 Aristide submitted his resignation as President of Haiti and flew on a chartered plane to Africa.

2004-2007 - Interim Government Gives Way to a New Democracy
Following the constitutional line of succession, Supreme Court Chief Justice Boniface Alexandre assumed the presidency and Gerard Latortue was appointed prime minister of the Interim Government of Haiti (IGOH) with the mandate of organizing elections to choose a new government. The interim government managed to organize three rounds of elections with the help of the OAS and UN. The first round of elections for President and Parliament took place peacefully on February 7, 2006, with a turnout estimated at over 60% of registered voters. The elections were considered generally free, fair, transparent, and democratic by national and international observers.

Rene Preval, former President (1996-2001) and former ally to Aristide, won the presidential election with 51.15%. Partial results first showed he fell short of an absolute majority, which triggered demonstrations against alleged fraud. The later decision of the Electoral Council not to count blank ballots gave the victory to Preval. The Parliament, composed of a 30-seat Senate and a 99-member Chamber of Deputies, was elected in two rounds held on February 7 and April 21, 2006. Lespwa is the main political force in both chambers but fell short of the majority. Fusion, UNION, Alyans, OPL, and Famni Lavalas have many representatives in both chambers. Preval chose his long-time political associate and former Prime Minister Jacques-Edouard Alexis to serve again as his Prime Minister. Municipal elections were held December 3, 2006 and April 29, 2007. Some of these local government positions had not been filled in over a decade.

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

International Presence 1995-2004

After the transition of the 21,000-strong MNF into a peacekeeping force on March 31, 1995, the presence of international military forces that helped restore constitutional government to power was gradually ended. Initially, the U.S.-led UN peacekeeping force numbered 6,000 troops, but that number was scaled back progressively over the next 4 years as a series of UN technical missions succeeded the peacekeeping force. By January 2000, all U.S. troops stationed in Haiti had departed. In March 2000, the UN peacekeeping mission transitioned into a peace-building mission, the International Civilian Support Mission in Haiti (MICAH). MICAH consisted of some 80 non-uniformed UN technical advisers providing advice and material assistance in policing, justice, and human rights to the Haitian Government. MICAH's mandate ended on February 7, 2001, coinciding with the end of the Preval administration. The OAS Special Mission has some 25 international police advisors who arrived in summer 2003; is in addition to observing and reporting Haitian police performance, they provide limited technical assistance.

International Presence 2004-Present

At the request of the interim government and the UN, the U.S.-led Multilateral Interim Force, made up of troops from the U.S., Canada, France, and Chile, arrived in Port-au-Prince to ensure stability until the arrival of a UN peacekeeping force.

In April 2004, the United Nations Security Council adopted Resolution 1542, which created the UN Stability Mission in Haiti (MINUSTAH). Since that time, the Security Council has consistently and unanimously approved the renewal of MINUSTAH's mandate at 6-month intervals. On October 15, 2007, the UNSC unanimously voted to extend MINUSTAH's mandate for 12 months through October 15, 2008. The Stability Mission is currently authorized at 7,060 troops and 2,091 civilian police.

ECONOMY

Haiti remains the least-developed country in the Western Hemisphere and one of the poorest in the world. Comparative social and economic indicators show Haiti falling behind other low-income developing countries (particularly in the hemisphere) since the 1980s. Haiti now ranks 146th of 177 countries in the UN's Human Development Index. Haiti's economic stagnation is the result of earlier inappropriate economic policies, political instability, a shortage of good arable land, environmental deterioration, continued reliance on traditional technologies, under-capitalization and lack of public investment in human resources, migration of large portions of the skilled population, a weak national savings rate, and the lack of a functioning judicial system.

The 1991 coup and the irresponsible economic and financial policies of the de facto regime resulted in a sharp economic decline from 1991-94. Following the coup, the United States adopted mandatory sanctions, and the OAS instituted voluntary sanctions aimed at restoring constitutional government. International sanctions culminated in the May 1994 UN embargo of all goods entering Haiti except humanitarian supplies, such as food and medicine. The assembly sector, heavily dependent on U.S. markets, employed over 100,000 workers in the mid-1980s. During the embargo, employment fell below 17,000. Private domestic and foreign investment has returned to Haiti slowly. Since the embargo's end, assembly sector employment has gradually recovered to about 18,500. The Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE), enacted by the U.S. Congress in December 2006, provides new trade preferences for textile/apparel products that could boost production in the sector. However, growth has been stalled by investor concerns over security, lack of access to credit, and legal and physical infrastructure constraints.

Under President Preval (1996-2001), the country's economic agenda included trade/tariff liberalization, measures to control government expenditure and increase tax revenues, civil service downsizing, financial sector reform, and the modernization of two out of nine state-owned enterprises through their sale to private investors, the provision of private sector management contracts, or joint public-private investment. Structural adjustment agreements with international financial institutions (IFIs) intended to create conditions for private sector growth proved only partly successful, however. Workers in Haiti are guaranteed the right of association. Unionization is protected by the labor code. A legal minimum wage of 70 gourdes a day (about U.S. $1.70) applies to most workers in the formal sector.

Haiti's real GDP growth turned negative in FY 2001 after six years of growth. Following almost 4 years of recession ending in 2004, the economy grew by 1.5% in 2005, 2.5% in 2006, and 3.2% in 2007. But significant improvement in living standards would require an estimated doubling of the growth rate. Since the departure of President Aristide, the financial situation has stabilized. Inflation fell from 42.7% at end-2003 to 8.1% for calendar year 2007. The interim government conducted a largely sound fiscal policy which has been followed by the Alexis government. But the traditional low revenue collection rate (roughly 9% of the GDP) constrains its ability to provide social services and invest in physical and human capital. External assistance (approximately $965 million from July 2004 through March 2006) as well as diaspora remittances (estimated at approximately $1.65 billion) remain critical to keeping the economy afloat. In November 2006, Haiti was approved for an International Monetary Fund (IMF) Poverty Reduction and Growth Facility (PRGF) and reached decision point under the Heavily Indebted Poor Countries (HIPC) Initiative.

FOREIGN RELATIONS

Haiti is one of the original members of the United Nations and several of its specialized and related agencies, as well as a member of the Organization of American States (OAS). It maintains diplomatic relations with several dozen countries.

The international community rallied to Haiti's defense during the 1991-94 period of de facto military rule. Thirty-one countries participated in the U.S.-led multinational force (MNF) which, acting under UN auspices, intervened in September 1994 to help restore the legitimate government and create a secure and stable environment in Haiti. At its peak, the MNF included roughly 21,000 troops, mostly Americans, and more than 1,000 international police monitors. Within 6 months, the troop level was gradually reduced as the MNF transitioned to a 6,000-strong peacekeeping force, the UN Mission in Haiti (UNMIH). UNMIH was charged with maintaining the secure environment which the MNF had helped establish as well as nurturing Haiti's new police force through the presence of 900 police advisers. A total of 38 countries participated in UNMIH.

To spur Haiti's social and economic recovery from decades of misrule before that, international donors pledged in 1994 to provide more than $2 billion over five years in total assistance. Most bilateral assistance is now channeled through non-governmental organizations. Major bilateral donors are led by the United States, with the largest program, and include Canada, the EU, France, Germany, Japan, and Taiwan. Cuba provides highly visible, low-cost medical and technical experts. Multilateral aid is provided by the Inter-American Development Bank (IDB), International Monetary Fund, World Bank, and the UN and its agencies. All aid is coordinated informally by the World Bank.

In July 2004, $1.085 billion was pledged through 2006 at the World Bank Donors' Conference. Donors include the U.S., Canada, the EU, France, Sweden, Spain, Germany, Japan, Switzerland, Greece, Norway, Mexico, and Ireland. The IDB and the World Bank pledged multilateral aid. As of March 2006, $965 million had been disbursed, mainly to address humanitarian needs.

U.S.-HAITI RELATIONS

U.S. policy toward Haiti is designed to foster and strengthen democracy; help alleviate poverty, illiteracy, and malnutrition; promote respect for human rights; and counter illegal migration and drug trafficking. The U.S. also supports and facilitates bilateral trade and investment along with legal migration and travel. U.S. policy goals are met through direct bilateral action and by working with the international community. The United States has taken a leading role in organizing international involvement with Haiti. The United States works closely with the Organization of American States (OAS; see "Key OAS Issues"), particularly through the Secretary General's "Friends of Haiti" group (originally a UN group that included the U.S., Canada, France, Venezuela, Chile, Argentina which was enlarged in 2001 to add Germany, Spain, Norway, Mexico, Guatemala, Belize, and The Bahamas), the Caribbean Community (CARICOM), and individual countries to achieve policy goals.

Maintaining good relations with and fostering democracy in Haiti are important for many reasons, not least of which is the country's geographical proximity to the continental United States. In addition to the many Haitians who receive visas to immigrate into the U.S. (averaging over 13,000 annually in FY 1999-2003), there is a flow of illegal migrants. Over 100,000 undocumented Haitian migrants were intercepted at sea by the U.S. Coast Guard in the past two decades, particularly during the 1991-94 period of illegal military rule when more than 67,000 migrants were interdicted. Since the return of the legitimate government in 1994, the interdiction of illegal migrants by U.S. Coast Guard vessels has decreased dramatically, averaging fewer than 1,500 annually. Neighboring Caribbean countries, particularly The Bahamas, continue to interdict Haitian migrants as well. The prospect remains, however, for the renewal of higher flows of illegal migrants, particularly under conditions of political unrest or further economic downturn.

U.S. Economic and Development Assistance

Political insecurity and the failure of Haiti's governments to invest in developing the country's natural and human resources has contributed significantly to the country's current state of underdevelopment. U.S. efforts to strengthen democracy and help build the foundation for economic growth aim to rectify this condition. The U.S. has been Haiti's largest donor since 1973. Between FY 1995 and FY 2003, the U.S. contributed more than $850 million in assistance to Haiti. Since 2004, the U.S. has provided over $600 million for improving governance, security, the rule of law, economic recovery, and critical human needs. The President's budget request for FY 2007 was $198 million. U.S. Government funds have been used to support programs that have addressed a variety of problems.

Haiti has been plagued for decades by extremely high unemployment and underemployment. The precipitous decline in urban assembly sector jobs, from a high of over 100,000 in 1986 to fewer than 20,000 in 2006, exacerbated the scarcity of jobs. To revitalize the economy, U.S. assistance attempts to create opportunities for stable sustainable employment for the growing population, particularly in rural areas. More recently, programs that help to increase commercial bank lending to micro-enterprises, especially in the agricultural sector, have helped to create a significant number of jobs. U.S. assistance is channeled primarily through private voluntary agencies and contractors to ensure efficient implementation of U.S. assistance programs.

Combating Drug Trafficking

Haiti is a major transshipment point for South American narcotics, primarily cocaine, being sent to the United States. To counter this threat, the U.S. has taken a number of steps, including vetting and training the counternarcotics division of the Haitian National Police, providing material assistance and training to the Haitian Coast Guard for drug and migrant interdiction, and obtaining the expulsion of several traffickers under indictment in the United States.

U.S. Business Opportunities

The U.S. remains Haiti's largest trading partner. Port-au-Prince is less than 2 hours by air from Miami, with several daily direct flights. A daily flight also connects Port-au-Prince with New York, and a new Port-au-Prince-Fort Lauderdale flight started in 2007. Both Port-au-Prince and Cap Haitien on the north coast have deepwater port facilities. Many Haitian entrepreneurs conduct business in English, and U.S. currency circulates freely in Haiti. A number of U.S. firms, including commercial banks, telecommunications, airlines, oil and agribusiness companies, and U.S.-owned assembly plants are present in Haiti.

Further opportunities for U.S. businesses include the development and trade of raw and processed agricultural products; medical supplies and equipment; rebuilding and modernizing Haiti's depleted infrastructure; developing tourism and allied sectors--including arts and crafts; and improving capacity in waste disposal, transportation, energy, telecommunications, and export assembly operations. Haiti's primary assembly sector inputs include textiles, electronics components, and packaging materials. Other U.S. export prospects include electronic machinery, including power-generation, sound and television equipment, plastics and paper, construction materials, plumbing fixtures, hardware, and lumber. Benefits for both Haitian and American importers and exporters are available under the Caribbean Basin Trade Partnership Act (CBTPA)--which provides for duty-free export of many Haitian products assembled from U.S. components or materials--the successor program to the Caribbean Basin Initiative, and the HOPE Act, which provides additional duty-free preferences for qualifying apparel/textiles products and automotive wire harnesses.

U.S. export opportunities also exist for four-wheel-drive vehicles, consumer electronics, rice, wheat, flour, animal and vegetable fats, meat, chicken, vegetables, and processed foodstuffs. The Government of Haiti seeks to reactivate and develop agricultural industries where Haiti enjoys comparative advantages, among which are essential oils, spices, fruits and vegetables, and sisal. The government encourages the inflow of new capital and technological innovations. Additional information on business opportunities in Haiti can be found at the Country Commercial Guide for Haiti.

Establishing a Business

Individuals wishing to practice a trade in Haiti must obtain an immigrant visa from a Haitian Consulate and, in most cases, a government work permit. Transient and resident traders must also have a professional ID card.

Property restrictions still exist for foreign individuals. Property rights of foreigners are limited to 1.29 hectares in urban areas and 6.45 hectares in rural areas. No foreigner may own more than one residence in the same district, or own property or buildings near the border. To own real estate, authorization from the Ministry of Justice is necessary.

Hurdles for businesses in Haiti include poor infrastructure, a high-cost port, an irregular supply of electricity, and Customs delays. There is little direct investment.

In November 2002, the Haitian Parliament passed an investment law prohibiting fiscal and legal discrimination against foreign investors. The 2002 law explicitly recognizes the crucial role of foreign direct investment in spurring economic growth and aims to facilitate, liberalize, and stimulate private investment in Haiti. Foreign investment protection is also provided by the Haitian Constitution of 1987, which permits expropriation of private property for public use or land reform with payment in advance. American firms enjoy free transfer of interest, dividends, profits, and other revenues stemming from their investments, and are guaranteed just compensation paid in advance of expropriation, as well as compensation in case of damages or losses caused by war, revolution, or insurrection. The U.S. and Haiti have a bilateral agreement on investment guarantees that permits the U.S. Overseas Private Investment Corporation to offer programs in Haiti. The two governments also signed a bilateral investment treaty in December 1983, but it was not ratified.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/1982.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

OFFICIAL NAME

Holy See

Note: The Holy See is the universal government of the Catholic Church and operates from the Vatican City State, a sovereign, independent territory of 0.44 square kilometers (0.17 square miles). The Pope is the ruler of both the Vatican City State and the Holy See. The Holy See, as the supreme body of government of the Catholic Church, is a sovereign juridical entity under international law.

Geography and People

Area: Total of 0.44 sq. km. (109 acres).
Population (July 2008 est.): 824 (citizens and non-citizens). Citizens: 546 (467 of which are resident).
Ethnic groups: Italian, Swiss, other.
Religion: Roman Catholic.
Languages: Italian, Latin, French, various others.
Literacy: 100%.
Work force: 3,000 lay workers (reside outside the Vatican).

Government

Type: Papacy; ecclesiastical, governmental, and administrative capital of the Roman Catholic Church.
Independence: Sovereign entity since medieval times (Lateran Pacts creating the Vatican City State and confirming independence and sovereignty of the Holy See signed with Italy on February 11, 1929).
Suffrage: Limited to Cardinals less than 80 years old.

Economy

Budget: Revenues (2006) $310 million; expenditures (2006) $307 million.
Industries: Worldwide banking and financial activities; printing; production of coins, medals, postage stamps, a small amount of mosaics, and staff uniforms. This unique, noncommercial economy is also supported financially by contributions (known as Peter's Pence) from Roman Catholics throughout the world, the sale of postage stamps and tourist mementos, fees from admissions to museums, and the sale of publications. The incomes and living standards of lay workers are comparable to, or somewhat better than, those of counterparts who work in the city of Rome.

PEOPLE AND HISTORY

Almost all of Vatican City's citizens live inside the Vatican's walls. The Vatican includes high-ranking dignitaries, priests, nuns, and guards as well as about 3,000 lay workers who comprise the majority of the work force.

The Holy See's diplomatic history began in the fourth century, but the boundaries of the papacy's temporal power have shifted over the centuries. From the 8th century through the middle of the 19th century, the Popes held sway over the Papal States, which included a broad band of territory across central Italy. In 1860, after prolonged civil and regional unrest, Victor Emmanuel's army seized the Papal States, leaving only Rome and surrounding coastal regions under papal control.

In 1870, Victor Emmanuel captured Rome itself and declared it the new capital of Italy, ending papal claims to temporal power. Pope Pius IX and his successors disputed the legitimacy of these acts and proclaimed themselves to be "prisoners" in the Vatican. Finally, in 1929, the Italian Government and the Holy See signed three agreements resolving the dispute:

* A treaty recognizing the independence and sovereignty of the Holy See and creating the State of the Vatican City;
* A concordat defining the relations between the government and the church within Italy; and
* A financial convention providing the Holy See with compensation for its losses in 1870.

A revised concordat, altering the terms of church-state relations, was signed in 1984.

GOVERNMENT AND INSTITUTIONS

The Pope exercises supreme legislative, executive, and judicial power over the Holy See and the State of the Vatican City. Pope Benedict XVI, former Cardinal Joseph Ratzinger of Germany, was elected and invested on April 19 and formally inaugurated on April 24, 2005.

The term "Holy See" refers to the composite of the authority, jurisdiction, and sovereignty vested in the Pope and his advisers to direct the worldwide Roman Catholic Church. As the "central government" of the Roman Catholic Church, the Holy See has a legal personality that allows it to enter into treaties as the juridical equal of a state and to send and receive diplomatic representatives. The Holy See has formal diplomatic relations with 177 nations and the Order of Malta, including the United States and some predominantly Muslim countries. The Holy See also maintains relations of a special nature with the Russian Federation and the Organization for the Liberation of Palestine.

Created in 1929 to provide a territorial identity for the Holy See in Rome, the State of Vatican City is a recognized national territory under international law. The Holy See enters into international agreements and receives and sends diplomatic representatives.

Administration of Vatican City State
The Pope delegates the internal administration of the Vatican City to the Pontifical Commission for the State of Vatican City. Vatican City maintains the Swiss Guards, a voluntary military force, as well as a modern security corps. It has its own post office, commissary, bank, railway station, electrical generating plant, television center, and publishing house. The Vatican also issues its own coins and stamps and has its own Internet domain (.va). Vatican Radio, the official radio station, is one of the most influential in Europe. L'Osservatore Romano is the semi-official newspaper, published daily in Italian, and weekly in English, Spanish, Portuguese, German, and French (plus a monthly edition in Polish). There is also a weekly version published in Italian, as well as a weekly version in Malayalam (a language of India), started on April 3, 2007.

Administration of the Holy See

The Pope exercises his authority through the Roman Curia and the Papal Civil Service. The Roman Curia consists of the Secretariat of State, nine Congregations, three Tribunals, 11 Pontifical Councils, and a complex of offices that administer church affairs at the highest level. The Secretariat of State, under the Cardinal Secretary of State, directs and coordinates the Curia. On September 15, 2006, Pope Benedict XVI appointed Cardinal Tarcisio Bertone as Secretary of State (a role equivalent to that of prime minister) and appointed Archbishop Dominique Mamberti as Secretary for Relations with States (equivalent to foreign minister).

Among the most active of the major Curial institutions are the Congregation for the Doctrine of the Faith, which oversees Church doctrine; the Congregation for Bishops, which coordinates the appointment of bishops worldwide; the Congregation for the Evangelization of Peoples, which oversees all missionary activities; and the Pontifical Council for Justice and Peace, which deals with international peace and social issues.

Three tribunals are responsible for judicial power. The Apostolic Penitentiary deals with matters of conscience; the Roman Rota is responsible for appeals, including annulments of marriage; and the Apostolic Signatura is the final court of appeal.

The Prefecture for Economic Affairs coordinates the finances of the Holy See departments and supervises the administration of the Patrimony of the Holy See, an investment fund formed in 1967 from separate funds dating back to the Lateran Pacts. A committee of 15 cardinals, chaired by the Secretary of State, has final oversight authority over all financial matters of the Holy See, including those of the Institute for Works of Religion, the Vatican bank.

FOREIGN RELATIONS

The Holy See conducts an active diplomacy. As noted, it maintains formal diplomatic relations with 177 nations and the Order of Malta; 78 of these maintain permanent resident diplomatic missions accredited to the Holy See in Rome. The rest have missions located outside Italy with dual accreditation. The Holy See maintains 106 permanent diplomatic missions to nation-states. Furthermore, the Holy See has two separate permanent diplomatic missions: one to the European Union, another to the Russian Federation.

The Holy See is especially active in international organizations. The Holy See has diplomatic relations with the European Union (EU) in Brussels, it is a permanent observer of the United Nations Organization (UN), Organization of American States (OAS) in Washington, African Union (AU), World Tourist Organization (WToO), World Trade Organization (WTO), World Health Organization (WHO), World Food Program (WFP), United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations Environment Program (UNEP), United Nations International Drug Control Program (UNDCP), United Nations Center for Human Settlements (UNCHS), Latin Union (LU), International Organization for Migration (IOM), International Labor Organization (ILO), International Fund for Agricultural Development (IFAD), and the United Nations Food and Agriculture Organization (FAO).

The Holy See is also an observer on an informal basis of the World Meteorological Organization in Geneva (WMO), United Nations Committee of Peaceful Use of Outer Space (UNCOPUOS), International Strategy for Disaster Reduction (ISDR), International Maritime Organization (IMO), African Asian Legal Consultative Committee (AALCC) and the International Civil Aviation Organization (ICAO).

The Holy See is a member of the Organization for the Prohibition of Chemical Weapons (OPCW), Organization for Security and Cooperation in Europe (OSCE), International Telecommunication Union (ITU), International Telecommunication Satellite Organization (ITSO), World Intellectual Property Organization (WIPO), Universal Postal Union (UPU), International Institute for the Unification of Private Law (UNIDROIT), United Nations High Commissioner for Refugees (UNHCR), United Nations Conference on Trade and Development (UNCTAD), International Grains Council (IGC), International Committee for Military Medicine (ICMM), International Atomic Energy Agency (IAEA), and the Preparatory Commission for the Comprehensive Nuclear Test Ban Treaty Organization (CTBTO).

In 1971, the Holy See announced the decision to adhere to the nuclear Non-Proliferation Treaty (NPT) in order to "give its moral support to the principles that form the base of the treaty itself." The Holy See is also a participating state in the OSCE and a guest of honor to the Parliamentary Assembly of the OSCE.

Furthermore, the Holy See has a delegate to the Arab League (AL) in Cairo.

U.S.-HOLY SEE RELATIONS

The United States maintained consular relations with the Papal States from 1797 to 1870 and diplomatic relations with the Pope, in his capacity as head of the Papal States, from 1848 to 1868, though not at the ambassadorial level. These relations lapsed with the loss of all papal territories in 1870.

From 1870 to 1984, the United States did not have diplomatic relations with the Holy See. Several presidents, however, designated personal envoys to visit the Holy See periodically for discussions of international humanitarian and political issues. Myron C. Taylor was the first of these representatives, serving from 1939 to 1950. Presidents Nixon, Ford, Carter, and Reagan also appointed personal envoys to the Pope.

The United States and the Holy See announced the establishment of diplomatic relations on January 10, 1984. On March 7, 1984, the Senate confirmed William A. Wilson as the first U.S. ambassador to the Holy See. Ambassador Wilson had been President Reagan's personal envoy to the Pope since 1981. The Holy See named Archbishop Pio Laghi as the first Apostolic Nuncio (equivalent to ambassador) of the Holy See to the U.S.

The U.S.-Holy See relationship is best characterized as an active global partnership for human dignity. Establishment of diplomatic relations has bolstered the frequent contact and consultation between the United States and the Holy See on many important international issues of mutual interest. The commitment to human dignity at the core of both the U.S. and Holy See approach to the world gives rise to a common agenda for action to promote religious freedom, justice, religious and ethnic tolerance, liberty, respect for women and children and for the rule of law.

Holy See priorities for 2008 include freedom of religion, inter-religious dialogue (particularly with the Muslim world), ecumenism, protection for the traditional family, and peace (particularly for the Middle East). Pope Benedict XVI has also publicly expressed concern over the issue of climate change, describing the protection of the environment as a moral responsibility to safeguard God's creation.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

http://www.state.gov/r/pa/ei/bgn/3819.htm

__________________
~Time owns each and everything~
~Useless youth if not useful for Pakistan~

Honduras



PROFILE

OFFICIAL NAME:
Republic of Honduras

Geography
Area: 112,090 sq. km. (43,278 sq. mi.); slightly larger than Virginia.
Cities: Capital--Tegucigalpa (1,150,000); San Pedro Sula (800,000-900,000).
Terrain: Mountainous.
Climate: Tropical to subtropical, depending on elevation.

People
Nationality: Noun and adjective--Honduran(s).
Population (2006 est.): 7.3 million.
Growth rate (2006 est.): 2.16%.
Ethnic groups: 90% mestizo (mixed Indian and European); others of European, Arab, African, or Asian ancestry; and indigenous Indians.
Religions: Roman Catholic, Protestant minority.
Language: Spanish.
Education (2003): Years compulsory--6. Attendance--88% overall, 31% at junior high level. Literacy--76.2%.
Health: Infant mortality rate--29.64/1,000. Life expectancy--66.2 yrs.
Work force: Services--42.2%; natural resources/agriculture--35.9%; manufacturing--16.3%; construction/housing--5.6%.

Government
Type: Democratic constitutional republic.
Independence: September 15, 1821.
Constitution: 1982; amended 1999.
Branches: Executive--president, directly elected to 4-year term. Legislative--unicameral National Congress, elected for 4-year term. Judicial--Supreme Court of Justice (appointed for a 7-year term by Congress and confirmed by the president); several lower courts.
Political parties: National Party, Liberal Party, Innovation and National Unity Party, Christian Democratic Party, and the Democratic Unification Party.
Suffrage: Universal and compulsory at age 18.
Administrative subdivisions: 18 departments.

Economy (2007 est.)
GDP: $12.3 billion.
Growth rate: 6.7%.
Per capita GDP: $1,600 (official exchange rate), $3,130 (PPP, IMF).
Natural resources: Arable land, forests, minerals, and fisheries.
Agriculture (13.8% of GDP): Products--coffee, bananas, shrimp and lobster, sugar, fruits, basic grains, and livestock.
Manufacturing (19.7% of GDP): Types--textiles and apparel, cement, wood products, cigars, and foodstuffs.
Services (54.2% of GDP).
Trade: Exports (goods)--$5.59 billion: apparel, coffee, shrimp, bananas, palm oil, gold, zinc/lead concentrates, soap/detergents, melons, lobster, pineapple, lumber, sugar, and tobacco. Major market--U.S. (69.9%). Imports (goods)--$8.56 billion: fabrics, yarn, machinery, chemicals, petroleum, vehicles, processed foods, metals, agricultural products, plastic articles, and paper articles. Major source--U.S. (52.2%).

PEOPLE
About 90% of the population is mestizo. There also are small minorities of European, African, Asian, Arab, and indigenous Indian descent. Most Hondurans are Roman Catholic, but Protestant churches are growing in number. While Spanish is the predominant language, some English is spoken along the northern coast and is prevalent on the Caribbean Bay Islands. Several indigenous Indian languages and Garífuna (a mixture of Afro-indigenous languages) are also spoken. The restored Mayan ruins near the Guatemalan border in Copan reflect the great Mayan culture that flourished there for hundreds of years until the early 9th century. Columbus landed at mainland Honduras (Trujillo) in 1502, and named the area "Honduras" (meaning "depths") for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524.

HISTORY
Honduras was originally inhabited by indigenous tribes, the most powerful of which were the Mayans. The western-central part of Honduras was inhabited by the Lencas. These autonomous groups had their conflicts but maintained their commercial relationships with each other and with other populations as distant as Panama and Mexico.

On July 30, 1502, Christopher Columbus first saw Honduran soil and he claimed the territory in the name of his sovereigns, Ferdinand of Aragon and Isabella of Castile. He named the area "Honduras" (meaning "depths") for the deep water off the coast.

In 1523 the first expeditionary forces arrived under the command of Gil Gonzáles de Avila, who hoped to rule the new territory. In 1524, Cristóbal de Olid arrived with the same intent on behalf of Hernán Cortés. Olid founded the colony Triunfo de la Cruz and tried to establish an independent government. When Cortés learned of this, he decided to reestablish his own authority by sending a new expedition, headed by Francisco de las Casas. Olid, who managed to capture his rivals, was betrayed by his men and assassinated. Cortés then traveled to Honduras to firmly establish his government in the city of Trujillo before returning to Mexico in 1526. Honduras formed part of the colonial era Captaincy General of Guatemala. The cities of Comayagua and Tegucigalpa developed as early mining centers.

By October 1537, the Lenca chief, Lempira, a warrior of great renown, had managed to unify more than two hundred native tribes in order to offer an organized resistance against penetration by the Spanish conquerors. After a long battle, Governor Montejo gained the Valley of Comayagua, established Comayagua city in another location, and vanquished the indigenous peoples in Tenampúa, Guaxeregui, and Ojuera.

Independence
Honduras gained independence from Spain in 1821. The country was then briefly annexed to the Mexican Empire. In 1823, Honduras joined the newly formed United Provinces of Central America federation, which collapsed in 1838. Gen. Francisco Morazan--a Honduran national hero--led unsuccessful efforts to maintain the federation. Honduras' agriculture-based economy was dominated in the 1900s by U.S. companies that established vast banana plantations along the north coast. Foreign capital, plantation life, and conservative politics held sway in Honduras from the late 19th century until the mid-20th century.

Military Rule
Authoritarian Gen. Tiburcio Carias Andino controlled Honduras during the Great Depression, until 1948. In 1955--after two authoritarian administrations and a strike by banana workers--young military reformists staged a coup that installed a provisional junta and paved the way for constituent assembly elections in 1957. This assembly appointed Ramon Villeda Morales as President and transformed itself into a national legislature with a 6-year term. In 1963, conservative military officers preempted constitutional elections and deposed Villeda in a bloody coup. The armed forces, led by Gen. Lopez Arellano, governed until 1970. Popular discontent continued to rise after a 1969 border war with El Salvador, known as "the Soccer War." A civilian President--Ramon Cruz of the National Party--took power briefly in 1970 but proved unable to manage the government. In 1972, Gen. Lopez staged another coup. Lopez adopted more progressive policies, including land reform, but his regime was brought down in the mid-1970s by corruption scandals. The regimes of Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (1978-82) largely built the current physical infrastructure and telecommunications system of Honduras. The country also enjoyed its most rapid economic growth during this period, due to greater international demand for its products and the availability of foreign commercial lending.

Seven Consecutive Democratic Elections
Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, Hondurans elected a constituent assembly in 1980 and voted in general elections in 1981. A new constitution was approved in 1982, and the Liberal Party government of President Roberto Suazo Cordoba took office. Suazo relied on U.S. support during a severe economic recession, including ambitious social and economic development projects sponsored by the U.S. Agency for International Development (USAID). Honduras became host to the largest Peace Corps mission in the world, and nongovernmental and international voluntary agencies proliferated.

As the 1985 election approached, the Liberal Party interpreted election law as permitting multiple presidential candidates from one party. The Liberal Party claimed victory when its presidential candidates, who received 42% of the vote, collectively outpolled the National Party candidate, Rafael Leonardo Callejas. Jose Azcona Hoyo, the candidate receiving the most votes among the Liberals, assumed the presidency in 1986. With the endorsement of the Honduran military, the Azcona administration ushered in the first peaceful transfer of power between civilian presidents in more than 30 years.

Nationalist Rafael Callejas won the following presidential election, taking office in 1990. The nation's fiscal deficit ballooned during Callejas' last year in office. Growing public dissatisfaction with the rising cost of living and with widespread government corruption led voters in 1993 to elect Liberal Party candidate Carlos Roberto Reina with 56% of the vote. President Reina, elected on a platform calling for a "moral revolution," actively prosecuted corruption and pursued those responsible for human rights abuses in the 1980s. He created a modern attorney general's office and an investigative police force, increased civilian control over the armed forces, transferred the police from military to civilian authority, and restored national fiscal health.

Liberal Carlos Roberto Flores Facusse took office in 1998. Flores inaugurated programs of reform and modernization of the Honduran government and economy, with emphasis on helping Honduras' poorest citizens while maintaining the country's fiscal health and improving international competitiveness. In October 1998, Hurricane Mitch devastated Honduras, leaving more than 5,000 people dead and 1.5 million displaced. Damages totaled nearly $3 billion.

Ricardo Maduro Joest of the National Party won the 2001 presidential elections, and was inaugurated in 2002. Maduro's first act as President was to deploy a joint police-military force to the streets to permit wider neighborhood patrols in the ongoing fight against the country's massive crime and gang problem. Maduro was a strong supporter of the global war on terrorism and joined the U.S.-led coalition in Iraq with an 11-month contribution of 370 troops. Under President Maduro's guidance, Honduras also negotiated and ratified the U.S.-Central America Free Trade Agreement (CAFTA), received debt relief, became the first Latin American country to sign a Millennium Challenge Account compact with the U.S., and actively promoted greater Central American integration.

Jose Manuel "Mel" Zelaya Rosales of the Liberal Party won the November 27, 2005 presidential elections with less than a 4% margin of victory, the smallest margin ever in Honduran electoral history. Zelaya's campaign theme was "citizen power," and he vowed to increase transparency and combat narcotrafficking, while maintaining macroeconomic stability. The Liberal Party won 62 of the 128 congressional seats, just short of an absolute majority.

ECONOMY
Honduras, with a per capita gross national income of $1,600, is one of the poorest countries in the Western Hemisphere. The economy grew 6% in 2006 or by about 3.2% on a per capita basis, and by an estimated 6.7% in 2007. Historically dependent on exports of agricultural goods, the Honduran economy has diversified in recent decades and now has a strong export-processing (maquila) industry, primarily focused on assembling textile and apparel goods for re-export to the United States, as well as automobile wiring harnesses and similar products. These industries employ about 130,000 Hondurans, out of an economically active population of 2.8 million. Despite the recent economic diversification, there continues to be a large subsistence farmer population with few economic opportunities. Honduras also has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods and illegal logging continue to destroy Honduran forests.

Remittances from Hondurans living abroad, particularly the U.S., totaled $2.56 billion in 2007--more than a quarter of GDP--but the annual rate of growth of remittances slowed to 10%, compared with 31% in 2006. Meanwhile, Honduras's fuel import bill rose sharply with the surge in world oil prices (Honduras produces no petroleum), and foreign reserves of the Central Bank fell by nearly $98 million--about 4%. The rise in global grain prices also put upward pressure on Honduran consumer prices in 2007, and the inflation rate accelerated to 8.9% from 6.2% in 2006. By the end of the year, inflation was running at about a 10% annual rate, giving rise to political demands for price controls on basic items. Remittances may decline in 2008 with the slowdown in the U.S. economy, particularly the construction sector, where many Hondurans are employed, putting additional pressure on reserves.

The official exchange rate has been fixed at 18.89 Honduran Lempiras to the dollar since 2005. About 40% of the Honduran workforce was considered either unemployed or underemployed in 2006. This does not include the roughly 1 million Hondurans who have migrated to the United States.

Since 2005, Honduras has received nearly $ 4 billion in debt relief from bilateral and multilateral donors. The donor community estimated this would reduce annual debt service payments by about $200 million in 2007. The Government of Honduras has committed to apply these funds to poverty alleviation, as laid out in the existing Poverty Reduction Strategy. However, much of the ensuing rise in government spending has gone to public sector salaries and fuel subsidies. The state electric utility, ENEE, is losing an estimated $300 million a year, primarily because the rates it charges its customers do not cover costs.

http://www.state.gov/r/pa/ei/bgn/1922.htm