ECONOMY

Of the former communist countries in central and eastern Europe, the Czech Republic has one of the most developed and industrialized economies. Its strong industrial tradition dates to the 19th century, when Bohemia and Moravia were the industrial heartland of the Austro-Hungarian Empire. The Czech Republic has a well-educated population and a well-developed infrastructure. The country's strategic location in Europe, low-cost structure, and skilled work force have attracted strong inflows of foreign direct investment (FDI). This investment is rapidly modernizing its industrial base and increasing productivity.

The principal industries are motor vehicles, machine-building, iron and steel production, metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china, ceramics, and pharmaceuticals. The main agricultural products are sugar beets, fodder roots, potatoes, wheat, and hops. As a small, open economy in the heart of Europe, economic growth is strongly influenced by demand for Czech exports and flows of foreign direct investment.

At the time of the 1948 communist takeover, Czechoslovakia had a balanced economy and one of the higher levels of industrialization on the continent. In 1948, however, the government began to stress heavy industry over agricultural and consumer goods and services. Many basic industries and foreign trade, as well as domestic wholesale trade, had been nationalized before the communists took power. Nationalization of most of the retail trade was completed in 1950-51.

Heavy industry received major economic support during the 1950s, but central planning resulted in waste and inefficient use of industrial resources. Although the labor force was traditionally skilled and efficient, inadequate incentives for labor and management contributed to high labor turnover, low productivity, and poor product quality. Economic failures reached a critical stage in the 1960s, after which various reform measures were sought with no satisfactory results.

Hope for wide-ranging economic reform came with Alexander Dubcek's rise in January 1968. Despite renewed efforts, however, Czechoslovakia could not come to grips with inflationary forces, much less begin the immense task of correcting the economy's basic problems.

The economy saw growth during the 1970s but then stagnated between 1978-82. Attempts at revitalizing it in the 1980s with management and worker incentive programs were largely unsuccessful. The economy grew after 1982, achieving an annual average output growth of more than 3% between 1983-85. Imports from the West were curtailed, exports boosted, and hard currency debt reduced substantially. New investment was made in the electronic, chemical, and pharmaceutical sectors, which were industry leaders in eastern Europe in the mid-1980s.

The "Velvet Revolution" in 1989 offered a chance for profound and sustained economic reform. Signs of economic resurgence began to appear in the wake of the shock therapy that the International Monetary Fund (IMF) labeled the "big bang" of January 1991. Since then, astute economic management has led to the elimination of 95% of all price controls, large inflows of foreign investment, increasing domestic consumption and industrial production, and a stable exchange rate. Exports to former communist economic bloc markets have shifted to western Europe. Thanks to foreign investment, the country enjoys a positive balance-of-payments position. Despite a general trend over the last 10 years toward rising budget deficits, the Czech Government's domestic and foreign indebtedness remains relatively low.

The Czech koruna (crown) became fully convertible for most business purposes in late 1995. Following a currency crisis and recession in 1998-99, the crown exchange rate was allowed to float. Recently, strong capital inflows have resulted in a steady increase in the value of the crown against the euro and the dollar. The strong crown helped to keep inflation low. In 2004, inflation was about 2.8%, mainly due to increases in value added tax rates and higher fuel costs, and dropped to 1.9% in 2005. It hovered around 2.5% in 2006. The Ministry of Finance reported an inflation rate of 2.8% for 2007. The Czech Republic will not adopt the euro earlier than 2012.

The Czech Republic is gradually reducing its dependence on highly polluting low-grade brown coal as a source of energy, in part because of European Union (EU) environmental requirements. In 2005, according to the Czech Statistical Office, 65.4% of electricity was produced in steam, combined, and combustion power plants; 30% in nuclear plants; and 4.6% from renewable sources, including hydropower. Russia (via pipelines through Ukraine) and, to a lesser extent, Norway (via pipelines through Germany) supply the Czech Republic with liquid and natural gas.

The government has offered investment incentives in order to enhance the Czech Republic's natural advantages, thereby attracting foreign partners and stimulating the economy. Shifting emphasis from the East to the West has necessitated adjustment of commercial laws and accounting practices to fit Western standards. Formerly state-owned banks have all been privatized into the hands of west European banks and oversight by the central bank has improved. The telecommunications infrastructure has been upgraded and the sector is privatized. The Czech Republic has made significant progress toward creating a stable and attractive climate for investment, although continuing reports of corruption are troubling to investors.

Its success allowed the Czech Republic to become the first post-communist country to receive an investment-grade credit rating by international credit institutions. Successive Czech governments have welcomed U.S. investment in addition to the strong economic influence of Western Europe and increasing investment from Asian auto manufacturers. Inflows of foreign direct investment in 2007 were roughly $9.2 billion. By U.S. Embassy estimates, the United States is among the top six investors in the Czech Republic since the revolution.

The Czech Republic boasts a flourishing consumer production sector. In the early 1990s most state-owned industries were privatized through a voucher privatization system. Every citizen was given the opportunity to buy, for a moderate price, a book of vouchers that he or she could exchange for shares in state-owned companies. State ownership of businesses was estimated to be about 97% under communism. The non-private sector is less than 20% today.

Unemployment declined to 5.0% in May 2008. Rates of unemployment are higher in the coal and steel producing regions of Northern Moravia and Northern Bohemia, and among less-skilled and older workers.

The economy grew 5.7% in 2007 and similar growth is expected in 2008. The current right-of-center coalition government has committed itself to reducing the deficit to 3% of GDP by 2008, from 4.7% in 2006. Planned reforms involving reduction of currently mandatory expenditures to meet Maastricht criteria for adoption of the euro will prepare the Czech Republic for accession to the euro zone in 2012 at the earliest.

The Czech Republic became a European Union (EU) member on May 1, 2004. Most barriers to trade in industrial goods with the EU fell in the course of the accession process. The process of accession had a positive impact on reform in the Czech Republic, and new EU directives and regulations continue to shape the business environment. Free trade in services and agricultural goods, as well as stronger regulation and rising labor costs, will mean tougher competition for Czech producers. Future levels of EU structural funding and agricultural supports were key issues in the accession negotiations. Even before accession, policy set in Brussels had a strong influence on Czech domestic and foreign policy, particularly in the area of trade.

The Czech Republic's economic transformation is not yet complete. The government still faces serious challenges in completing industrial restructuring, increasing transparency in capital market transactions, transforming the housing sector, reforming the pension and health care systems, and solving serious environmental problems.

NATIONAL SECURITY

The Czech Republic continues to make significant contributions to international allied coalitions in Afghanistan, Iraq, and Kosovo. In early 2008, the Czech Republic established a 200-person Provincial Reconstruction Team (PRT) in Logar Province, Afghanistan. In addition, an Operational Mentoring and Liaison Team (OMLT) was deployed to work alongside the Afghanistan National Air Corps. The deployment of this Czech OMLT complements the ongoing donation of 12 excess fully overhauled Czech military helicopters to Afghanistan, six of which have been delivered. Additionally, in mid-2008, the Czechs will redeploy a Special Forces unit to Afghanistan for a third time as well as a 65-person security detachment to support Dutch forces. These new contributions add to ongoing deployments to Afghanistan, including a large military field hospital in Kabul and a Special Purpose Military Police unit operating in Helmand Province. This increased commitment of support deployments to Afghanistan has not diminished the Czech Republic's continued commitment to support other coalition efforts, including providing a maneuver battalion to Kosovo in support of the Kosovo Force (KFOR) on a continual rotational basis as well as a limited number of personnel to Iraq.

The Czech Republic became a member of the North Atlantic Treaty Organization (NATO) on March 12, 1999. A major overhaul of the Czechoslovak defense forces began in 1990 and continues in the Czech Republic. Czech forces have been successfully downsized from 200,000 to approximately 30,000, and at the same time reoriented into a more mobile, deployable force. The Czechs have made good progress in reforming the military personnel structure, and a strong commitment to English-language training is paying off. Compulsory military service ended in December 2004. Public support for NATO remains high. The Czech Government currently spends slightly less than 1.5% of GDP on defense.

The Czech Republic has good relations with all of its neighbors, and none of its borders are in question. The Czech Republic is a member of the EU, UN, and Organization for Security and Cooperation in Europe (OSCE), and will lead a European Union Battle Group (EUBG) in the second half of 2009.

FOREIGN RELATIONS

From 1948 until 1989, the foreign policy of Czechoslovakia followed that of the Soviet Union. Since independence, the Czechs have made integration into Western institutions their chief foreign policy objective.

The Czech Republic became a member of the North Atlantic Treaty Organization, along with Poland and Hungary, on March 12, 1999. The Czech Republic became a full member of the European Union on May 1, 2004. Both events are milestones in the country's foreign policy and security orientation. The Czech Republic is scheduled to host the rotating EU Presidency during the first half of 2009.

The Czech Republic is a member of the United Nations and participates in its specialized agencies. It is a member of the World Trade Organization. It maintains resident embassies in 93 countries. Furthermore, 82 countries have permanent representation in Prague.

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.

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OFFICIAL NAME

Kingdom of Denmark

Geography

Area: 43,094 sq. km. (16,639 sq. mi.); slightly smaller than Vermont and New Hampshire combined.
Cities: Capital--Copenhagen (pop. 0.5 million in Copenhagen and 1.1 million in the Copenhagen Region). Other cities--Arhus (293,510), Odense (185,206), Aalborg (163,231).
Terrain: Low and flat or slightly rolling; highest elevation is 173 m. (568 ft.).
Climate: Temperate. The terrain, location, and prevailing westerly winds make the weather changeable.

*Excluding Greenland and the Faroe Islands

People

Nationality: Noun--Dane(s). Adjective--Danish.
Population (Dec. 2007): 5,475,791.
Annual growth rate (Dec. 2006-Dec. 2007): 0.53%.
Ethnic groups: Scandinavian, Inuit, Faroese, German, Turkish, Iranian, Somali.
Religion membership: Evangelical Lutheran 95%; other Protestant denominations and Roman Catholics 3%; Muslim 2%.
Languages: Danish, Faroese, Greenlandic (Inuit dialect), some German. English is the predominant second language.
Education: Years compulsory--9. Attendance--100%. Literacy--100%.
Health: Infant mortality rate (2006)--4.4/1,000. Life expectancy--men 75.9 years, women 80.5 years.
Work force (2007): 2.9 million. Employment: Industry, construction, and utilities--23%; government--38%; private services--37%; agriculture and fisheries--2%.

Government

Type: Constitutional monarchy.
Constitution: June 5, 1953.
Branches: Executive--queen (chief of state), prime minister (head of government), cabinet. Legislative--unicameral parliament (Folketing). Judicial--appointed Supreme Court.
Political parties (represented in parliament): Venstre (Liberal), Social Democratic, Konservative, Socialist People's, Social Liberal, Unity List, Danish People's, New Alliance.
Suffrage: Universal adult (18 years of age).
Administrative subdivisions: 5 regions and 98 municipalities.

Economy

GDP (2006): $311.5 billion (current prices and exchange rates, source: OECD).
Annual growth rate (real terms, 2007 est.): 1.8%.
Per capita GDP: $56,895 (current prices and exchange rates).
Agriculture and fisheries (1.3% of GDP at gross value added): Products--meat, milk, grains, seeds, hides, fur skin, fish and shellfish.
Industry (20.0% of GDP at gross value added): Types--industrial and construction equipment, food processing, electronics, chemicals, pharmaceuticals, furniture, textiles, windmills, and ships.
Natural resources: North Sea--oil and gas, fish. Greenland--fish and shrimp, potential for hydrocarbons and minerals, including zinc, lead, molybdenum, uranium, gold, platinum. The Faroe Islands--fish, potential for hydrocarbons.
Trade (2007, goods): Exports--$101.885 billion: manufactured goods 75% (of which machinery and instruments were 35%); agricultural products 9% (of which pork and pork products cover 48%); fuels, etc. 10%; fish and fish products 1%; other 5%. Imports--$98.861 billion: raw materials and semi-manufactures 44%; consumer goods 30%; capital equipment 12%; transport equipment 7%; fuels 5%; other 1%. Partners (percent of total trade in goods)--Germany 17%, Sweden 15%, U.K. 8%, Norway 6%, U.S. 5%.
Official exchange rate: 4.71 kroner=U.S. $1 as of end March 2008.

PEOPLE AND HISTORY

The Danes, a homogenous Gothic-Germanic people, have inhabited Denmark since prehistoric times. Danish is the principal language. English is a required school subject, and fluency is high. A small German-speaking minority lives in southern Jutland; a mostly Inuit population inhabits Greenland; and the Faroe Islands have a Nordic population with its own language. Education is compulsory from ages seven to 16 and is free through the university level.

Although religious freedom is guaranteed, the state-supported Evangelical Lutheran Church accounts for about 95% of those persons claiming religious affiliation. Several other Christian denominations, as well as other major religions, find adherents in Denmark. Islam is now the second-largest religion in Denmark.

During the Viking period (9th-11th centuries), Denmark was a great power based on the Jutland Peninsula, the Island of Zealand, and the southern part of what is now Sweden. In the early 11th century, King Canute united Denmark and England for almost 30 years.

Viking raids brought Denmark into contact with Christianity, and in the 12th century, crown and church influence increased. By the late 13th century, royal power had waned, and the nobility forced the king to grant a charter, considered Denmark's first constitution. Although the struggle between crown and nobility continued into the 14th century, Queen Margrethe I succeeded in uniting Denmark, Norway, Sweden, Finland, the Faroe Islands, Iceland, and Greenland under the Danish crown. Sweden and Finland left the union in 1520; however, Norway remained until 1814. Iceland, in a "personal union" under the king of Denmark after 1918, became independent in 1944.

The Reformation was introduced in Denmark in 1536. Denmark's provinces in today's southwestern Sweden were lost in 1658, and Norway was transferred from the Danish to the Swedish crown in 1814, following the defeat of Napoleon, with whom Denmark was allied.

The Danish liberal movement gained momentum in the 1830s, and in 1849 Denmark became a constitutional monarchy. After the war with Prussia and Austria in 1864, Denmark was forced to cede Schleswig-Holstein to Prussia and adopt a policy of neutrality. Toward the end of the 19th century, Denmark inaugurated important social and labor market reforms, laying the basis for the present welfare state.

Denmark remained neutral during World War I. Despite its declaration of neutrality at the beginning of World War II, it was invaded by the Germans in 1940 and occupied until liberated by the Allied forces in May 1945. Resistance against the Germans was sporadic until late 1943. By then better organized, the resistance movement and other volunteers undertook a successful rescue mission in which nearly the entire Jewish population of Denmark was shipped to Sweden (whose neutrality was honored by Germany). However, extensive studies are still being undertaken for the purpose of establishing a clearer picture of the degree of Danish cooperation--official and corporate--with the occupying power. Denmark became a charter member of the United Nations and was one of the original signers of the North Atlantic Treaty.

Cultural Achievements

Denmark's rich intellectual heritage has made multifaceted contributions to modern culture the world over. The discoveries of astronomer Tycho Brahe (1546-1601), geologist and anatomist Niels Steensen (1639-86), and the brilliant contributions of Nobel laureates Niels Bohr (1885-1962) to atomic physics and Niels Finsen (1860-1904) to medical research indicate the range of Danish scientific achievement. The fairy tales of Hans Christian Andersen (1805-75), the philosophical essays of Soeren Kierkegaard (1813-55), and the short stories of Karen Blixen (pseudonym Isak Dinesen; 1885-1962) have earned international recognition, as have the symphonies of Carl Nielsen (1865-1931). Danish applied art and industrial design have won so many awards for excellence that the term "Danish Design" has become synonymous with high quality, craftsmanship, and functionalism. Among the leading lights of architecture and design was Arne Jacobsen (1902-1971), the "father of modern Danish design." The name of Georg Jensen (1866-1935) is known worldwide for outstanding modern design in silver, and "Royal Copenhagen" is among the finest porcelains. No 'short list' of famous Danes would be complete without the entertainer and pianist Victor Borge (1909-2000), who emigrated to the United States under Nazi threat in 1940, and had a worldwide following when he died a naturalized U.S. citizen in Greenwich, Connecticut, at the age of 91.

Visitors to Denmark will discover a wealth of cultural activity. The Royal Danish Ballet specializes in the work of the great Danish choreographer August Bournonville (1805-79). Danish dancers also feature regularly on the U.S. ballet scene, notably Peter Martins as head of New York City Ballet.

The Danish Film Institute, one of the oldest in Scandinavia, offers daily public screenings of Danish and international movies in their original language and plays an active role in the maintenance and restoration of important archival prints. Over the decades, movie directors like Gabriel Axel (Babette's Feast, 1987 Oscar for Best Foreign Film), Bille August (Buster's World, 1984; Pelle the Conqueror, 1988 Oscar for Best Foreign Film; The House of the Spirits, 1993) and Lars von Trier (Breaking the Waves, 1996; Dancer in the Dark, 2000 Cannes Golden Palm) have all won international acclaim. In addition, Denmark has been involved virtually from the start in development of the "Dogma film" genre, where small, hand-held digital cameras have permitted greater rapport between director and actor and given a documentary film feel to their increasingly realistic works. Besides von Trier's Dogville (2003) starring Nicole Kidman, and The Idiots (1998), The Celebration (1998 Cannes Special Jury prize) by Thomas Vinterberg, Mifune's Last Song (1999 Berlin Silver Bear award) by Soeren Kragh-Jacobsen, and Italian for Beginners (2000 Berlin Silver Bear award) by Lone Scherfig all are prime examples of the Dogma concept.

International collections of modern art enjoy unusually attractive settings at the Louisiana Museum north of Copenhagen, "Arken" south of Copenhagen, and the North Jutland Art Museum in Aalborg. The State Museum of Art and the Glyptotek, both in Copenhagen, contain masterpieces of Danish and international art. Denmark's National Museum building in central Copenhagen harbors most of the state's anthropological and archeological treasures with especially fine prehistoric and Viking Age collections; two of its finest satellite collections are the Viking Ship Museum in Roskilde west of the metropolis and the Open Air Museum in a near northern suburb where original buildings have been transported from their original locations around the country and reassembled on plots specially landscaped to evoke the original site. The Museum of Applied Art and Industrial Design in Copenhagen exhibits the best in Danish design. The world-renowned Royal Copenhagen Porcelain Factory exports worldwide. The ceramic tradition is carried on by designers such as Bjoern Wiinblad, whose whimsical creations remain as popular today as when they burst on the scene in the 1950s, and is carried on by younger talents such as Gertrude Vasegaard and Michael Geertsen.

Denmark has more than its share of impressive castles, many of which have been converted to museums. Frederiksborg Castle, on a manmade island in a lake north of Copenhagen, was restored after a catastrophic fire in the 1800s and now houses important collections in awe-inspiring splendor amidst impeccably manicured gardens. In Elsinore, Kronborg (or Hamlet's) Castle that once exacted tribute from passing ships now houses important furniture and art collections of the period, while hosting in its courtyard many touring summer productions of Shakespearean works. In Copenhagen, Rosenborg Castle houses the kingdom's crown jewels and boasts spectacular public gardens in the heart of the city.

Among today's Danish writers, probably the best-known to American readers is Peter Hoeg (Smilla's Sense of Snow; Borderliners), while the most prolific is Klaus Rifbjerg--poet, novelist, playwright, and screenwriter. Benny Andersen writes poems, short stories, and music. Poems by both writers have been translated into English by the Curbstone Press. Suzanne Broegger focuses on the changing roles of women in society. Kirsten Thorup's "Baby" won the 1980 Pegasus Prize and is printed in English by the University of Louisiana Press. The psychological thrillers of Anders Bodelsen and political thrillers by Leif Davidsen also appear in English.

In music, Hans Abrahamsen and Per Noergaard are the two most famous living composers. Abrahamsen's works have been performed by the National Symphony Orchestra in Washington, DC. Other international names are Poul Ruders, Bo Holten, and Karl Aage Rasmussen. Danes such as bass player Niels Henning Oersted Petersen have won broad international recognition, and the Copenhagen Jazz Festival held each year in July has acquired a firm place on the calendar of international jazz enthusiasts.

Cultural Policy

The Ministry of Cultural Affairs was created in 1961. Cultural life and meaningful leisure time were then and remain now subjects of debate by politicians and parliament as well as the general public. The democratization of cultural life promoted by the government's 1960s cultural policy recently has come to terms with the older "genteel culture;" broader concepts of culture now generally accepted include amateur and professional cultural, media, sports, and leisure-time activities.

Denmark's cultural policy is characterized by decentralized funding, program responsibility, and institutions. Danish cultural direction differs from that of other countries with a Ministry of Culture and a stated policy in that special laws govern each cultural field--e.g., the Theater Act of 1990 (as amended) and the Music Law of 1976 (as amended).

The Ministry of Cultural Affairs includes among its responsibilities international cultural relations; training of librarians and architects; copyright legislation; and subsidies to archives, libraries, museums, literature, music, arts and crafts, theater, and film production. During 1970-82, the Ministry also recognized protest movements and street manifestations as cultural events, because social change was viewed as an important goal of Danish cultural policy. Different governments exercise caution in moderating this policy and practice. Radio and TV broadcasting also fall under the Ministry of Culture.

Although government expenditures for culture totaled about 1.0% of the budget in 1996, in 2006 government expenditures for culture totaled 0.66% of gross domestic product (GDP). Viewed against the new government's firm objective to limit public expenditures, contributions are unlikely to increase in the future. Municipal and county governments assume a relatively large share of the costs for cultural activities in their respective districts. Most support goes to libraries and archives, theater, museums, arts and crafts training, and films.

GOVERNMENT

Denmark is a constitutional monarchy. Queen Margrethe II has largely ceremonial functions; probably her most significant formal power lies in her right to appoint the prime minister and cabinet ministers, who are responsible for administration of the government. However, she must consult with parliamentary leaders to determine the public's will, since the cabinet may be dismissed by a vote of no confidence in the Folketing (parliament). Cabinet members are occasionally recruited from outside the Folketing.

The 1953 constitution established a unicameral Folketing of not more than 179 members, of whom two are elected from the Faroe Islands and two from Greenland. Elections are held at least every 4 years, but the prime minister can dissolve the Folketing at any time and call for new elections. Folketing members are elected by a complicated system of proportional representation; any party receiving at least 2% of the total national vote receives representation. The result is a multiplicity of parties (eight represented in the Folketing after the November 2007 general election), none of which holds a majority. Electorate participation normally is around 80-85%.

The judicial branch consists of 22 local courts, two high courts, several special courts (e.g., arbitration and maritime), and a Supreme Court of 15 judges appointed by the crown on the government's recommendation.

Since a structural reform of local government was passed by the Folketing in 2004 and 2005, Denmark has been divided into five regions and 98 municipalities. The regions and municipalities are both led by councils elected every four years, but only the municipal councils have the power to levy taxes. Regional councils are responsible for health services and regional development, while the municipal councils are responsible for day care, elementary schools, care for the elderly, culture, environment and roads.

The Faroe Islands and Greenland enjoy home rule, with the Danish Government represented locally by high commissioners. These home rule governments are responsible for most domestic affairs, with foreign relations, monetary affairs, and defense falling to the Danish Government.

ECONOMY

Denmark's industrialized market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark advocates a liberal trade policy. Its standard of living is among the highest in the world, and the Danes devote about 0.8% of gross national product (GNP) to foreign aid to less developed countries. In addition, Denmark in 2006 devoted 0.81% of GNP for overseas development, including for peace and stability purposes, refugee pre-asylum costs, and for environmental purposes in central and eastern Europe and developing countries.

Denmark is a net exporter of food and energy. Its principal exports are machinery, instruments, and food products. The United States is Denmark's largest non-European trading partner, accounting for about 5% of total Danish merchandise trade. Aircraft, computers, machinery, and instruments are among the major U.S. exports to Denmark. Among major Danish exports to the United States are industrial machinery, chemical products, furniture, pharmaceuticals, canned ham and pork, windmills, and plastic toy blocks (Lego). In addition, Denmark has a significant services trade with the U.S., a major share of it stemming from Danish-controlled ships engaged in container traffic to and from the United States (notably by Maersk-SeaLand). There are some 375 U.S.-owned companies in Denmark.

The Danish economy is fundamentally strong. Since the mid-1990s, economic growth rates have averaged close to 3%, the formerly high official unemployment rate stands at around 2%, and public finances are in surplus. Except for one year--1998--Denmark since 1989 has had comfortable balance-of-payments current account surpluses, in 2007 corresponding to 1.1% of GDP. Denmark has maintained a stable currency policy since the early 1980s, with the krone formerly linked to the Deutschmark and since January 1, 1999, to the euro. Denmark meets, and even exceeds, the economic convergence criteria for participating in the third phase (a common European currency--the euro) of the European Monetary Union (EMU). Although a referendum on EMU participation held on September 28, 2000 resulted in a firm "no" and Denmark, therefore, has not yet adopted the euro, opinion polls show a majority in favor of EMU. It is uncertain when the government will have another referendum on the EMU/euro. Danes are generally proud of their welfare safety net, which ensures that all Danes receive basic health care and need not fear real poverty. However, at present the number of working-age Danes living mostly on government transfer payments amounts to more than 680,000 persons (roughly 20% of the working-age population). Although this number has been reduced in recent years, the heavy load of government transfer payments burdens other parts of the system. Health care, other than for acute problems, and care for the elderly and children have particularly suffered, while taxes remain at a painful level. More than one-fourth of the labor force is employed in the public sector.

FOREIGN RELATIONS

Danish foreign policy is founded upon four cornerstones: the United Nations, NATO, the EU, and Nordic cooperation. Denmark also is a member of, among others, the World Bank and the International Monetary Fund; the World Trade Organization (WTO); the Organization for Security and Cooperation in Europe (OSCE); the Organization for Economic Cooperation and Development (OECD); the Council of Europe; the Nordic Council; the Baltic Council; and the Barents Council. Denmark emphasizes its relations with developing nations. Although the government has moved to tighten foreign assistance expenditures, it remains a significant donor and one of the few countries to exceed the UN goal of contributing 0.7% of GNP to development assistance.

In the wake of the Cold War, Denmark has been active in international efforts to integrate the countries of Central and Eastern Europe into the West. It has played a leadership role in coordinating Western assistance to the Baltic states (Estonia, Latvia, and Lithuania). The country is a strong supporter of international peacekeeping. Danish forces were heavily engaged in the former Yugoslavia in the UN Protection Force (UNPROFOR), as well as in NATO's Operation Joint Endeavor/Stabilization Force in Bosnia and Herzegovina (IFOR/SFOR), and currently in the Kosovo Force (KFOR).

Denmark has been a member of NATO since its founding in 1949, and membership in NATO remains highly popular. There were several serious confrontations between the U.S. and Denmark on security policy in the so-called "footnote era" (1982-88), when a hostile parliamentary majority forced the government to adopt specific national positions on nuclear and arms control issues. With the end of the Cold War, however, Denmark has been supportive of U.S. policy objectives in the Alliance.

Danes have had a reputation as "reluctant" Europeans. When they rejected ratification of the Maastricht Treaty on June 2, 1992, they put the European Community's (EC) plans for the European Union on hold. In December 1992, the rest of the EC agreed to exempt Denmark from certain aspects of the European Union, including a common defense, a common currency, EU citizenship, and certain aspects of legal cooperation. On this revised basis, a clear majority of Danes approved continued participation in the EU in a second referendum on May 18, 1993, and again in a referendum on the Amsterdam Treaty on May 28, 1998.

Since September 11, 2001, Denmark has been highly proactive in endorsing and implementing United States, UN, and EU-initiated counter-terrorism measures, just as Denmark has contributed substantially to the International Security Assistance Force (ISAF) in Afghanistan and the neighboring countries. In 2003, Denmark was among the first countries to join the "Coalition of the Willing" and supplied a submarine, Corvette-class ship, and military personnel to the coalition's effort in Iraq to enforce UN Security Council Resolution 1441. Since that time it has provided 500 troops to assist with stabilization efforts in Iraq. Prime Minister Rasmussen announced in February 2007 that most Danish troops would be withdrawn from Iraq by August 2007, as Iraqi forces had become capable of taking over security responsibilities in the Basra area, where the Danish troops had been concentrated.

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/3167.htm

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

OFFICIAL NAME

Republic of Djibouti

Geography

Area: 21,883 sq. km. (8,450 sq. mi.); about the size of Massachusetts.
Cities: Capital--Djibouti. Other cities--Dikhil, Arta, Ali-Sabieh, Obock, Tadjoura.
Terrain: Coastal desert.
Climate: Torrid and dry.

People

Nationality: Noun and adjective--Djiboutian(s).
Population (est.): Between 466,900 and 650,000.
Annual growth rate (2005 est.): 2.6%.
Ethnic groups: Somali, Afar, Ethiopian, Arab, French, and Italian.
Religions: Muslim 94%, Christian 6%.
Languages: French and Arabic (official); Somali and Afar widely used.
Education: Literacy--46.2%.
Health: Infant mortality rate--100 to 150/1,000. Life expectancy (2005 est.)--43.1 years.
Work force: Low employment rate; estimates run well under 50% of the work force. The largest employers are the Government of Djibouti, including telecommunications and electricity; Port of Djibouti; and airport. The U.S. Government, including the military camp and the embassy, is the second largest employer. Able-bodied unemployed population (est. 2006)--60%.

Government

Type: Republic.
Constitution: Ratified September 1992 by referendum.
Independence: June 27, 1977.
Branches: Executive--president. Legislative--65-member parliament, cabinet, prime minister. Judicial--based on French civil law system, traditional practices, and Islamic law.
Administrative subdivisions: 6 cercles (districts)--Ali-Sabieh, Arta, Dikhil, Djibouti, Obock, and Tadjoura.
Political parties: People's Rally for Progress (RPP) established in 1981; New Democratic Party (PRD) and the National Democratic Party (PND) were both established in 1992; and the Front For The Restoration of Unity and Democracy (FRUD) was legally recognized in 1994. Five additional parties were established in 2002: Djibouti Development Party (PDD); Peoples Social Democratic Party (PPSD); Republican Alliance for Democracy (ARD); Union for Democracy and Justice (UDJ); Movement for Democratic Renewal (MRD).
Suffrage: Universal at 18.
National holiday: Independence Day, June 27 (1977).

Economy

GDP (2006 est.): $768 million.
Adjusted per capita income: $850 per capita for expatriates, $450 for Djiboutians.
Natural resources: Minerals (salt, perlite, gypsum, limestone) and energy resources (geothermal and solar).
Agriculture (less than 3% of GDP): Products--livestock, fishing, and limited commercial crops, including fruits and vegetables.
Industry: Types--banking and insurance (12.5% of GDP), public administration (22% of GDP), construction and public works, manufacturing, commerce, and agriculture.
Trade (2004 est.): Imports--$987 million: consists of basic commodities, including food and beverages, pharmaceutical drugs, transport equipment, chemicals, and petroleum products. Exports--$250 million: re-exports, hides and skins, and coffee (in-transit). Major markets (2004)--France, Ethiopia, Somalia, India, China, and Saudi Arabia and other Arabian peninsula countries.

PEOPLE

About two-thirds of the Republic of Djibouti's 650,000 inhabitants live in the capital city. The indigenous population is divided between the majority Somalis (predominantly of the Issa tribe, with minority Issaq and Gadabursi representation) and the Afars (Danakils). All are Cushitic-speaking peoples, and nearly all are Muslim. Among the 15,000 foreigners residing in Djibouti, the French are the most numerous. Among the French are 3,000 troops.

HISTORY

The Republic of Djibouti gained its independence on June 27, 1977. It is the successor to French Somaliland (later called the French Territory of the Afars and Issas), which was created in the first half of the 19th century as a result of French interest in the Horn of Africa. However, the history of Djibouti, recorded in poetry and songs of its nomadic peoples, goes back thousands of years to a time when Djiboutians traded hides and skins for the perfumes and spices of ancient Egypt, India, and China. Through close contacts with the Arabian Peninsula for more than 1,000 years, the Somali and Afar tribes in this region became the first on the African continent to adopt Islam.

It was Rochet d'Hericourt's exploration into Shoa (1839-42) that marked the beginning of French interest in the African shores of the Red Sea. Further exploration by Henri Lambert, French Consular Agent at Aden, and Captain Fleuriot de Langle led to a treaty of friendship and assistance between France and the sultans of Raheita, Tadjoura, and Gobaad, from whom the French purchased the anchorage of Obock (1862).

Growing French interest in the area took place against a backdrop of British activity in Egypt and the opening of the Suez Canal in 1869. In 1884-85, France expanded its protectorate to include the shores of the Gulf of Tadjoura and the Somaliland. Boundaries of the protectorate, marked out in 1897 by France and Emperor Menelik II of Ethiopia, were affirmed further by agreements with Ethiopian Emperor Haile Selassie I in 1945 and 1954.

The administrative capital was moved from Obock to Djibouti in 1892. In 1896, Djibouti was named French Somaliland. Djibouti, which has a good natural harbor and ready access to the Ethiopian highlands, attracted trade caravans crossing East Africa as well as Somali settlers from the south. The Franco-Ethiopian railway, linking Djibouti to the heart of Ethiopia, was begun in 1897 and reached Addis Ababa in June 1917, further facilitating the increase of trade.

During the Italian invasion and occupation of Ethiopia in the 1930s and during World War II, constant border skirmishes occurred between French and Italian forces. The area was ruled by the Vichy (French) government from the fall of France until December 1942, and fell under British blockade during that period. Free French and the Allied forces recaptured Djibouti at the end of 1942. A local battalion from Djibouti participated in the liberation of France in 1944.

On July 22, 1957, the colony was reorganized to give the people considerable self-government. On the same day, a decree applying the Overseas Reform Act (Loi Cadre) of June 23, 1956, established a territorial assembly that elected eight of its members to an executive council. Members of the executive council were responsible for one or more of the territorial services and carried the title of minister. The council advised the French-appointed governor general.

In a September 1958 constitutional referendum, French Somaliland opted to join the French community as an overseas territory. This act entitled the region to representation by one deputy and one senator in the French Parliament, and one counselor in the French Union Assembly.

The first elections to the territorial assembly were held on November 23, 1958, under a system of proportional representation. In the next assembly elections (1963), a new electoral law was enacted. Representation was abolished in exchange for a system of straight plurality vote based on lists submitted by political parties in seven designated districts. Ali Aref Bourhan, allegedly of Turkish origin, was selected to be the president of the executive council. French President Charles de Gaulle's August 1966 visit to Djibouti was marked by 2 days of public demonstrations by Somalis demanding independence. On September 21, 1966, Louis Saget, appointed governor general of the territory after the demonstrations, announced the French Government's decision to hold a referendum to determine whether the people would remain within the French Republic or become independent. In March 1967, 60% chose to continue the territory's association with France.

In July of that year, a directive from Paris formally changed the name of the region to the French Territory of Afars and Issas. The directive also reorganized the governmental structure of the territory, making the senior French representative, formerly the governor general, a high commissioner. In addition, the executive council was redesignated as the council of government, with nine members.

In 1975, the French Government began to accommodate increasingly insistent demands for independence. In June 1976, the territory's citizenship law, which favored the Afar minority, was revised to reflect more closely the weight of the Issa Somali. The electorate voted for independence in a May 1977 referendum. The Republic of Djibouti was established on June 27, 1977, and Hassan Gouled Aptidon became the country's first president. In 1981, he was again elected president of Djibouti. He was re-elected, unopposed, to a second 6-year term in April 1987 and to a third 6-year term in May 1993 multiparty elections.

In early 1992, the constitution permitted the legalization of four political parties for a period of 10 years, after which a complete multiparty system would be installed. By the time of the December 1992 national assembly elections, only three had qualified. They were the Rassemblement Populaire Pour le Progres (People's Rally for Progress--RPP), which was the only legal party from 1981 until 1992; the Parti du Renouveau Democratique (The Party for Democratic Renewal--PRD); and the Parti National Democratique (National Democratic Party--PND). Only the RPP and the PRD contested the national assembly elections, and the PND withdrew, claiming that there were too many unanswered questions on the conduct of the elections and too many opportunities for government fraud. The RPP won all 65 seats in the national assembly, with a turnout of less than 50% of the electorate.

In early November 1991, civil war erupted in Djibouti between the government and a predominantly Afar rebel group, the Front for the Restoration of Unity and Democracy (FRUD). The FRUD signed a peace accord with the government in December 1994, ending the conflict. Two FRUD members were made cabinet members, and in the presidential elections of 1999 the FRUD campaigned in support of the RPP.

In 1999, Ismail Omar Guelleh--President Hassan Gouled Aptidon's chief of staff, head of security, and key adviser for over 20 years--was elected to the presidency as the RPP candidate. He received 74% of the vote, with the other 26% going to opposition candidate Moussa Ahmed Idriss, of the Unified Djiboutian Opposition (ODU). For the first time since independence, no group boycotted the election. Moussa Ahmed Idriss and the ODU later challenged the results based on election "irregularities" and the assertion that "foreigners" had voted in various districts of the capital; however, international and locally based observers considered the election to be generally fair, and cited only minor technical difficulties. Ismail Omar Guelleh took the oath of office as the second President of the Republic of Djibouti on May 8, 1999, with the support of an alliance between the RPP and the government-recognized section of the Afar-led FRUD.

In February 2000, another branch of FRUD signed a peace accord with the government. On May 12, 2001, President Ismail Omar Guelleh presided over the signing of what was termed the final peace accord officially ending the decade-long civil war between the government and the armed faction of the FRUD. The peace accord successfully completed the peace process begun on February 7, 2000 in Paris. Ahmed Dini Ahmed represented the FRUD.

GOVERNMENT AND POLITICAL CONDITIONS

Djibouti is a republic whose electorate approved the current constitution in September 1992. Many laws and decrees from before independence remain in effect.

In the presidential election held April 8, 2005 Ismail Omar Guelleh was re-elected to a second 6-year term at the head of a multi-party coalition that included the FRUD and other major parties. A loose coalition of opposition parties again boycotted the election. Currently, political power is shared by a Somali president and an Afar prime minister, with an Afar career diplomat as Foreign Minister and other cabinet posts roughly divided. However, Issas are predominate in the government, civil service, and the ruling party. That, together with a shortage of non-government employment, has bred resentment and continued political competition between the Somali Issas and the Afars. In March 2006, Djibouti held its first regional elections and began implementing a decentralization plan. The broad pro-government coalition, including FRUD candidates, again ran unopposed when the government refused to meet opposition preconditions for participation. Parliamentary elections were held in February 2008.

Djibouti has its own armed forces, including a small army, which grew significantly with the start of the civil war in 1991. With the 2001 final peace accord between the government and the Afar-dominated FRUD, the armed forces have been downsized. The country's security is supplemented by a formal security accord with the Government of France, which guarantees Djibouti's territorial integrity against foreign incursions. France maintains one of its largest military bases outside France in Djibouti. There are some 3,000 French troops stationed in Djibouti, including units of the famed French Foreign Legion.

The right to own property is respected in Djibouti. The government has reorganized the labor unions. While there have been open elections of union leaders in the past, some labor leaders allege interference in their internal elections. Others voice opposition to newly-implemented labor laws that apply to new jobs created in free zones and that are less favorable to labor.

In 2002, following a broad national debate, Djibouti enacted a new "Family Law" enhancing the protection of women and children, unifying legal treatment of all women, and replacing Sharia. The government established a minister-designate for women's affairs and is engaged in an ongoing effort to increase public recognition of women's rights and to ensure enforcement. In 2007, it began establishing a network of new counseling offices to assist women seeking to understand and protect their rights. Women in Djibouti enjoy a higher public status than in many other Islamic countries. The government is leading efforts to stop illegal and abusive traditional practices, including female genital mutilation. As the result of a three-year effort, the percentage of girls attending primary school increased significantly and is now more than 50%. However, women's rights and family planning continue to face difficult challenges, many stemming from acute poverty in both rural and urban areas. With female ministers and members of parliament, the presence of women in government has increased. Despite the gains, education of girls still lags behind boys, and employment opportunities are better for male applicants.

ECONOMY

Djibouti's economy depends largely on its proximity to the large Ethiopian market and a large foreign expatriate community. Its main economic activities are the Port of Djibouti, the banking sector, the airport, and the operation of the Addis Ababa-Djibouti railroad. During the "lost decade" following the brunt of its civil war (1991-94), there was a significant diversion of government budgetary resources from developmental and social services to military needs. However, from 2001 on, Djibouti has become a magnet for private sector capital investment, attracting inflows that now average more than $200 million. It has also significantly improved its finances, paying current salaries, maintaining reserves, and generating a growth rate in 2006 of approximately 4.5%. Djibouti has become a significant regional banking hub, with approximately $600 million in dollar deposits. Its currency, the Djiboutian Franc, was linked to the dollar (and to gold) in 1949 and appreciated twice over the interim when the dollar was devalued and then freed to float. Agriculture and industry are little developed, in part due to the harsh climate, high production costs, unskilled labor, and limited natural resources. Mineral deposits exist in the country, but with the exception of an extraordinary salt deposit at Lac Asal, the lowest point in Africa, they have not been exploited. The arid soil is unproductive--89% is desert wasteland, 10% is pasture, and 1% is forested. Deforestation for charcoal is a significant problem, as it now replaces expensive imported cooking gas in many urban homes. Services and commerce provide most of the gross domestic product.

Djibouti's most important economic asset is its strategic location on the busy shipping route between the Mediterranean Sea and the Indian Ocean. Roughly 60% of all commercial ships in the world use its waters from the Red Sea through the Bab-el-Mandeb strait and into the Gulf of Aden and the Indian Ocean. Its old port is an increasingly important transshipment point for containers as well as a destination port for Ethiopian trade. Last year alone, private investment in the old port totaled approximately $50 million. Djibouti is now in the second of three phases of a multi-year, $800 million, privately-financed project to build a new port with fueling, container, and free zone components. The old port will continue serving as a general shipping, bulk cargo, and break-bulk facility and also as the host of a small French naval facility.

Business soared at the Port of Djibouti when hostilities between Eritrea and Ethiopia denied Ethiopia access to the Eritrean Port of Assab. Djibouti became the only significant port for landlocked Ethiopia, handling all its imports and exports, including huge shipments of U.S. food aid in 2000 during the drought and famine. In 2000, Dubai Ports World took over management of Djibouti's port and later its customs and airport operations. The result has been a significant increase in investment, efficiency, activity, and port revenues. The Addis Ababa-Djibouti railroad is the only line serving central and southeastern Ethiopia. The single-track railway--a prime source of employment--occupies a prominent place in Ethiopia's internal distribution system for domestic commodities such as cement, cotton textiles, sugar, cereals, and charcoal. A weekly train from Ethiopia brings in most of Djibouti's fresh fruits and vegetables. In March 2006, the Governments of Ethiopia and Djibouti (which co-own the railway) selected the South African firm COMAZAR to manage the line. They are still in negotiations over the management agreement. In addition, the European Union is considering a $100 million project to upgrade a portion of the rail line.

Principal exports from the region transiting Djibouti are coffee, salt, live animals, hides, dried beans, cereals, other agricultural products, and wax. Djibouti itself has few exports, and the majority of its imports come from France. Most imports are consumed in Djibouti, and the remainder go to Ethiopia and northwestern Somalia. Djibouti's unfavorable balance of trade is offset partially by invisible earnings such as transit taxes and harbor dues. In 2001, U.S. exports to Djibouti totaled $18.7 million, while U.S. imports from Djibouti were about $1 million.

The city of Djibouti has the only paved airport in the republic. Djibouti has one of the most liberal economic regimes in Africa, with almost unrestricted banking and commerce sectors.

FOREIGN RELATIONS

Military and economic agreements with France provide continued security and economic assistance. Links with Arab states and East Asian states, Japan and China in particular, also are welcome. Djibouti is a member of the Arab League, as well as the African Union, the Inter-Governmental Authority on Development (IGAD), and the Common Market for Eastern and Southern Africa (COMESA).

Djibouti is greatly affected by events in Somalia and Ethiopia, so relations are important and, at times, delicate. The 1991 falls of the Siad Barre and Mengistu governments in Somalia and Ethiopia, respectively, caused Djibouti to face national security threats due to instability in the neighboring states and a massive influx of refugees estimated at 100,000 from Somalia and Ethiopia. In 2000, after 3 years of insufficient rain, 50,000 drought victims entered Djibouti. In 1996, a revitalized organization of seven East African states, the Inter-Governmental Authority on Development (IGAD), established its secretariat in Djibouti. IGAD's mandate is for regional cooperation and economic integration, and it has also sought to play a positive role promoting regional stability, including its efforts in support of Somalia's Transitional Federal Government.

Djibouti seeks to play the role of neutral in the frequently tense regional politics of the Horn of Africa. It became Ethiopia's sole link to the sea when fighting broke out between Ethiopia and Eritrea in 1998. Aside from a two-year break in relations from 1998-2000, Djibouti has maintained a cordial relationship with Eritrea. Eritrea's President Isaias and Djibouti's President Guelleh exchanged visits in 2001, and Isaias returned to Djibouti in 2006 for the regional summit of the Common Market for Eastern and Southern Africa (COMESA), hosted by President Guelleh in his capacity as incoming COMESA President. Djibouti continues to cultivate cordial relations with Ethiopia, reflecting the fundamental economic ties between the two countries and a long tradition of interchanges. However, rising tensions in Somalia and Ethiopian military involvement in Somalia in 2007 fueled widespread criticism of Ethiopia among Djibouti's majority Somali-speaking population. President Guelleh attended the 2007 Africa Union summit in Ethiopia and supports the African Union peacekeeping operation for Somalia (AMISOM).

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/5482.htm

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

OFFICIAL NAME

Commonwealth of Dominica

Geography

Area: 754 sq. km. (290 sq. mi.).
Cities: Capital--Roseau (population 14,500).
Terrain: Mountainous volcanic island with rainforest cover.
Climate: Tropical.

People

Nationality: Noun and adjective--Dominican (Dom-i-NEE-can).
Population (2008): 69,000.
Annual growth rate (2006): 0.55%.
Ethnic groups: Mainly of African descent, mixed Black and European, Syrian and some Carib Amerindians.
Religions: Roman Catholic, Protestant (Methodist, Pentecostal, Seventh-Day Adventist, and Baptist), Islam, Baha'I, Rastafarianism, Anglican, Jehovah's Witnesses, Nazarene, Church of Christ, and Brethren Christian Churches.
Languages: English (official); a French patois is widely spoken.
Education (2005): Adult literacy--94%.
Health (2006): Infant mortality rate--13/1,000. Life expectancy--men 72 years; women 77.9 years.
Work force (2005): 24,370.
Unemployment (2005): 13.1%.

Government

Type: Parliamentary democracy; republic within the Commonwealth.
Independence: November 3, 1978.
Constitution: November 1978.
Branches: Executive--president (head of state), prime minister (head of government), cabinet. Legislative--unicameral House of Assembly. Judicial--magistrate and jury courts, Eastern Caribbean Supreme Court (High Court and Court of Appeals), Privy Council.
Subdivisions: 10 parishes.
Political parties: Dominica Labour Party (incumbent), United Workers Party, and Dominica Freedom Party.
Suffrage: Universal at 18.

Economy

GDP (2006): $318.5 million.
GDP growth rate (2006): 4.0%.
Per capita GDP (2006): $4,758.
Inflation of consumer prices (2006): 2.4%.
Natural resources: timber, water (hydropower), copper.
Agriculture (10% of GDP in 2005): Products--bananas, citrus, coconuts, cocoa, herbal oils and extracts.
Manufacturing (3% of GDP in 2005): Types--agricultural processing, soap and other coconut-based products, apparel.
Trade (2005): Exports--$39.0 million (merchandise) and $82.0 million (commercial services). Major markets--European Union (27.8%), Jamaica (12.7%), Antigua and Barbuda (11.3%), Trinidad and Tobago (9.0%), and Saint Lucia (6.8%). Imports--$165 million (merchandise) and $49 million (commercial services). Major suppliers--United States (36.6%), Trinidad and Tobago (20.5%), China (19.4%), European Union (13.4%), and Japan (4.6%).

PEOPLE

Almost all Dominicans are descendants of enslaved Africans brought in by colonial planters in the 18th century. Dominica is the only island in the eastern Caribbean to retain some of its pre-Columbian population--the Carib Indians--about 3,000 of whom live on the island's east coast. The population growth rate is very low, due primarily to emigration to more prosperous Caribbean Islands, the United Kingdom, the United States, and Canada.

English is the official language; however, because of historic French domination, the most widely spoken dialect is a French patois. Nearly 80% of the population is Catholic. In recent years, a number of Protestant churches have been established.

HISTORY

The island's indigenous Arawak people were expelled or exterminated by Caribs in the 14th century. Columbus landed there in November 1493. Spanish ships frequently landed on Dominica during the 16th century, but fierce resistance by the Caribs discouraged Spain's efforts at settlement.

In 1635, France claimed Dominica. Shortly thereafter, French missionaries became the first European inhabitants of the island. Carib incursions continued, though, and in 1660, the French and British agreed that both Dominica and St. Vincent should be abandoned. Dominica was officially neutral for the next century, but the attraction of its resources remained; rival expeditions of British and French foresters were harvesting timber by the start of the 18th century.

Largely due to Dominica's position between Martinique and Guadeloupe, France eventually became predominant, and a French settlement was established and grew. As part of the 1763 Treaty of Paris that ended the Seven Years' War, the island became a British possession. In 1778, during the American Revolutionary War, the French mounted a successful invasion with the active cooperation of the population. The 1783 Treaty of Paris, which ended the war, returned the island to Britain. French invasions in 1795 and 1805 ended in failure.

In 1763, the British established a legislative assembly, representing only the white population. In 1831, reflecting a liberalization of official British racial attitudes, the Brown Privilege Bill conferred political and social rights on free nonwhites. Three Blacks were elected to the legislative assembly the following year. Following the abolition of slavery, in 1838 Dominica became the first and only British Caribbean colony to have a Black-controlled legislature in the 19th century. Most Black legislators were smallholders or merchants who held economic and social views diametrically opposed to the interests of the small, wealthy English planter class. Reacting to a perceived threat, the planters lobbied for more direct British rule.

In 1865, after much agitation and tension, the colonial office replaced the elective assembly with one comprised of one-half elected members and one-half appointed. Planters allied with colonial administrators outmaneuvered the elected legislators on numerous occasions. In 1871, Dominica became part of the Leeward Island Federation. The power of the Black population progressively eroded. Crown Colony government was re-established in 1896. All political rights for the vast majority of the population were effectively curtailed. Development aid, offered as compensation for disenfranchisement, proved to have a negligible effect.

Following World War I, an upsurge of political consciousness throughout the Caribbean led to the formation of the Representative Government Association. Marshaling public frustration with the lack of a voice in the governing of Dominica, this group won one-third of the popularly elected seats of the legislative assembly in 1924 and one-half in 1936. Shortly thereafter, Dominica was transferred from the Leeward Island Administration and was governed as part of the Windwards until 1958, when it joined the short-lived West Indies Federation.

After the federation dissolved, Dominica became an associated state of the United Kingdom in 1967 and formally took responsibility for its internal affairs. On November 3, 1978, the Commonwealth of Dominica was granted independence by the United Kingdom.

Independence did little to solve problems stemming from centuries of economic underdevelopment, and in mid-1979, political discontent led to the formation of an interim government. It was replaced after the 1980 elections by a government led by the Dominica Freedom Party under Prime Minister Eugenia Charles, the Caribbean's first female prime minister. Chronic economic problems were compounded by the severe impact of hurricanes in 1979 and in 1980. By the end of the 1980s, the economy recovered, but weakened again in the 1990s due to a decrease in banana prices.

In the January 2000 elections, the Edison James United Workers Party (UWP) was defeated by the Dominican Labour Party (DLP), led by Roosevelt P. "Rosie" Douglas. Douglas died after only a few months in office and was replaced by Pierre Charles, who died in office in January 2004. Roosevelt Skerrit, also of the DLP, replaced Charles as Prime Minister. Under Prime Minister Skerrit's leadership, the DLP won elections in May 2005 that gave the party 12 seats in the 21-member Parliament to the UWP's 8 seats. An independent candidate affiliated with the DLP won a seat as well. Since that time, the independent candidate joined the government and one UWP member crossed the aisle, making the current total 14 seats for the DLP and 7 for the UWP.

GOVERNMENT AND POLITICAL CONDITIONS

Dominica has a Westminster-style parliamentary government, and there are three political parties--the Dominica Labour Party (the majority party), the Dominica United Workers Party, and the Dominica Freedom Party. A president and prime minister make up the executive branch. Nominated by the prime minister in consultation with the leader of the opposition party, the president is elected for a 5-year term by the parliament. The president appoints as prime minister the leader of the majority party in the parliament and also appoints, on the prime minister's recommendation, members of the parliament from the ruling party as cabinet ministers. The prime minister and cabinet are responsible to the parliament and can be removed on a no-confidence vote.

The unicameral parliament, called the House of Assembly, is composed of 21 regional representatives and nine senators. The regional representatives are elected by universal suffrage and, in turn, decide whether senators are to be elected or appointed. If appointed, five are chosen by the president with the advice of the prime minister and four with the advice of the opposition leader. If elected, it is by vote of the regional representatives. Elections for representatives and senators must be held at least every 5 years, although the prime minister can call elections any time. The last election was held in May 2005.

Dominica's legal system is based on English common law. There are three magistrate's courts, with appeals made to the Eastern Caribbean Court of Appeal and, ultimately, to the Privy Council in London.

Councils elected by universal suffrage govern most towns. Supported largely by property taxation, the councils are responsible for the regulation of markets and sanitation and the maintenance of secondary roads and other municipal amenities. The island is also divided into 10 parishes, whose governance is unrelated to the town governments.

ECONOMY

Many consider Dominica's economic situation the most challenging of all the Eastern Caribbean states. However, Dominica's economy grew by 3.5% in 2005 and 4.0% in 2006, following a decade of poor performance. The country nearly had a financial crisis in 2003 and 2004. Growth in 2006 was attributed to gains in tourism, construction, offshore and other services, and some sub-sectors of the banana industry. The International Monetary Fund (IMF) recently praised the Government of Dominica for its successful macroeconomic reforms. The IMF also pointed out remaining challenges, including further reductions in public debt, increased financial sector regulation, and market diversification.

Bananas and other agriculture dominate Dominica's economy, and nearly one-third of the labor force works in agriculture. This sector, however, is highly vulnerable to weather conditions and to external events affecting commodity prices. In 2007, Hurricane Dean caused significant damage to the agricultural sector as well as the country's infrastructure, especially roads. In response to reduced European Union (EU) banana trade preferences, the government has diversified the agricultural sector by introducing coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas. Dominica has had some success in increasing its manufactured exports, primarily soap.

Dominica is mostly volcanic and has few beaches; therefore, tourism has developed more slowly than on neighboring islands. Nevertheless, Dominica's high, rugged mountains, rainforests, freshwater lakes, hot springs, waterfalls, and diving spots make it an attractive eco-tourism destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital.

Dominica's currency is the Eastern Caribbean Dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the EC$, manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB has kept the EC$ pegged at EC$2.7=U.S. $1.

Dominica is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. Dominica also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM), the CARICOM Single Market and Economy (CSME), and the Organization of Eastern Caribbean States (OECS).

FOREIGN RELATIONS

Like its Eastern Caribbean neighbors, the main priority of Dominica's foreign relations is economic development. The country maintains missions in Washington, New York, London, and Brussels and is represented jointly with other Organization of Eastern Caribbean States (OECS) members in Canada. Dominica also is a member of the Caribbean Development Bank (CDB) and the British Commonwealth. It became a member of the United Nations and the International Monetary Fund (IMF) in 1978 and of the World Bank and Organization of American States (OAS) in 1979. Unlike some of its neighbors in the Eastern Caribbean, Dominica has withheld recognition of Taiwan and has established relations with the People's Republic of China.

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/2295.htm

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

OFFICIAL NAME

Dominican Republic

Geography

Area: 48,442 sq. km. (18,704 sq. mi.), about the size of Vermont and New Hampshire combined.
Cities: Capital--Santo Domingo (pop. 2.25 million). Other city--Santiago de los Caballeros (908,230).
Terrain: Mountainous.
Climate: Maritime tropical.

People

Nationality: Noun and adjective--Dominican(s).
Population (2007): 9.365 million.
Annual growth rate (2007): 1.5%.
Ethnic groups: Mixed 73%, European 16%, African origin 11%.
Religion: Roman Catholic 95%.
Language: Spanish.
Education: Years compulsory--6 Attendance--70%. Literacy--84.7%.
Health: Infant mortality rate: 28.3/1,000. Life expectancy--70.2 years for men, 73.3 years for women.
Work force: 60.2% services (tourism, transportation, communications, finances, others), 15.5% industry (manufacturing), 11.5% construction, 11.3% agriculture, 1.5% mining.

Government

Type: Representative democracy.
Independence: February 27, 1844. Restoration of independence, August 16, 1863.
Constitution: November 28, 1966; amended July 25, 2002.
Branches: Executive--president (chief of state and head of government), vice president, cabinet. Legislative--bicameral Congress (Senate and House of Representatives). Judicial--Supreme Court of Justice.
Subdivisions: 31 provinces and the National District of Santo Domingo.
Political parties: Dominican Liberation Party (PLD), Dominican Revolutionary Party (PRD), Social Christian Reformist Party (PRSC), and several others.
Suffrage: Universal and compulsory, over 18 or married.

Economy (2007)

GDP: $36.4 billion.
Growth rate: 8%.
Per capita GDP: $4,147.
Non-fuel minerals (1.4% of GDP): Nickel, gold, silver.
Agriculture (6.5% of GDP): Products--sugarcane, coffee, cocoa, bananas, tobacco, rice, plantains, beef.
Industry (27.4% of GDP): Types--sugar refining, pharmaceuticals, cement, light manufacturing, construction.
Services, including tourism and transportation: 58.6% of GDP.
Trade: Exports--$6.484 billion (FOB), including processing zones: textiles, sugar, coffee, ferronickel, cacao, tobacco, meats and medical supplies. Markets--U.S. (75%), Canada, Western Europe, South Korea. Imports--$8.797 billion: food stuffs, petroleum, industrial raw materials, capital goods. Suppliers--U.S. (48%), Japan, Germany, Venezuela, Mexico, Colombia.

PEOPLE

About half of Dominicans live in rural areas; many are small landholders. Haitians form the largest foreign minority group. All religions are tolerated; the state religion is Roman Catholicism.

HISTORY

The island of Hispaniola, of which the Dominican Republic forms the eastern two-thirds and Haiti the remainder, was originally occupied by Tainos, an Arawak-speaking people. The Tainos welcomed Columbus in his first voyage in 1492, but subsequent colonizers were brutal, reducing the Taino population from about 1 million to about 500 in 50 years. To ensure adequate labor for plantations, the Spanish brought African slaves to the island beginning in 1503.

In the next century, French settlers occupied the western end of the island, which Spain ceded to France in 1697, and which, in 1804, became the Republic of Haiti. The Haitians conquered the whole island in 1822 and held it until 1844, when forces led by Juan Pablo Duarte, the hero of Dominican independence, drove them out and established the Dominican Republic as an independent state. In 1861, the Dominicans voluntarily returned to the Spanish Empire; in 1865, independence was restored. Economic difficulties, the threat of European intervention, and ongoing internal disorders led to a U.S. occupation in 1916 and the establishment of a military government in the Dominican Republic. The occupation ended in 1924, with a democratically elected Dominican Government.

In 1930, Rafael L. Trujillo, a prominent army commander, established absolute political control. Trujillo promoted economic development--from which he and his supporters benefited--and severe repression of domestic human rights. Mismanagement and corruption resulted in major economic problems. In August 1960, the Organization of American States (OAS) imposed diplomatic sanctions against the Dominican Republic as a result of Trujillo's complicity in an attempt to assassinate President Romulo Betancourt of Venezuela. These sanctions remained in force after Trujillo's death by assassination in May 1961. In November 1961, the Trujillo family was forced into exile.

In January 1962, a council of state that included moderate opposition elements with legislative and executive powers was formed. OAS sanctions were lifted January 4, and, after the resignation of President Joaquin Balaguer on January 16, the council under President Rafael E. Bonnelly headed the Dominican Government.

In 1963, Juan Bosch was inaugurated President. Bosch was overthrown in a military coup in September 1963. Another military coup, on April 24, 1965, led to violence between military elements favoring the return to government by Bosch and those who proposed a military junta committed to early general elections. On April 28, U.S. military forces landed to protect U.S. citizens and to evacuate U.S. and other foreign nationals.

Additional U.S. forces subsequently established order. In June 1966, President Balaguer, leader of the Reformist Party (now called the Social Christian Reformist Party--PRSC), was elected and then re-elected to office in May 1970 and May 1974, both times after the major opposition parties withdrew late in the campaign. In the May 1978 election, Balaguer was defeated in his bid for a fourth successive term by Antonio Guzman of the Dominican Revolutionary Party (PRD). Guzman's inauguration on August 16 marked the country's first peaceful transfer of power from one freely elected president to another.

The PRD's presidential candidate, Salvador Jorge Blanco, won the 1982 elections, and the PRD gained a majority in both houses of Congress. In an attempt to cure the ailing economy, the Jorge administration began to implement economic adjustment and recovery policies, including an austerity program in cooperation with the International Monetary Fund (IMF). In April 1984, rising prices of basic foodstuffs and uncertainty about austerity measures led to riots.

Balaguer was returned to the presidency with electoral victories in 1986 and 1990. Upon taking office in 1986, Balaguer tried to reactivate the economy through a public works construction program. Nonetheless, by 1988 the country had slid into a 2-year economic depression, characterized by high inflation and currency devaluation. Economic difficulties, coupled with problems in the delivery of basic services--e.g., electricity, water, transportation--generated popular discontent that resulted in frequent protests, occasionally violent, including a paralyzing nationwide strike in June 1989.

In 1990, Balaguer instituted a second set of economic reforms. After concluding an IMF agreement, balancing the budget, and curtailing inflation, the Dominican Republic experienced a period of economic growth marked by moderate inflation, a balance in external accounts, and a steadily increasing GDP that lasted through 2000.

The voting process in 1986 and 1990 was generally seen as fair, but allegations of electoral board fraud tainted both victories. The elections of 1994 were again marred by charges of fraud. Following a compromise calling for constitutional and electoral reform, President Balaguer assumed office for an abbreviated term and Congress amended the Constitution to bar presidential succession.

Since 1996, the Dominican electoral process has been seen as generally free and fair. In June 1996, Leonel Fernández Reyna of the Dominican Liberation Party (PLD) was elected to a 4-year term as president. Fernández's political agenda was one of economic and judicial reform. He helped enhance Dominican participation in hemispheric affairs, such as the OAS and the follow up to the Miami Summit. On May 16, 2000, Hipólito Mejía, the PRD candidate, was elected president in another free and fair election, soundly defeating PLD candidate Danilo Medina and former president Balaguer. Mejía championed the cause of free trade and Central American and Caribbean economic integration. The Dominican Republic signed a free trade agreement (CAFTA-DR) with the United States and five Central American countries in August 2004, in the last weeks of the Mejía administration. During the Mejía administration, the government sponsored and obtained anti-trafficking and anti-money-laundering legislation, sent troops to Iraq for Operation Iraqi Freedom, and ratified the Article 98 agreement it had signed in 2002. Mejía faced mounting domestic problems as a deteriorating economy--caused in large part by the government's measures to deal with massive bank fraud--and constant power shortages plagued the latter part of his administration.

During the Mejía administration, the Constitution was amended to permit an incumbent president to seek a second successive term, and Mejía ran for re-election. On May 16, 2004, Leonel Fernández was elected president, defeating Mejía 57.11% to 33.65%. Eduardo Estrella of the PRSC received 8.65% of the vote. Fernández took office on August 16, 2004, promising in his inaugural speech to promote fiscal austerity, to fight corruption and to support social concerns. Fernández said the Dominican Republic would support policies favoring international peace and security through multilateral mechanisms in conformity with the United Nations and the OAS. The Fernández administration works closely with the United States on law enforcement and immigration and counter-terrorism matters. In 2006 elections, Fernández' PLD won 60% of seats in the House of Representatives and 22 of 32 Senate seats, as well as a plurality of mayoral seats. On May 16, 2008, President Fernández was reelected President with 53.8% of the vote. His new term runs until 2012.

GOVERNMENT AND POLITICAL CONDITIONS

The Dominican Republic is a representative democracy with national powers divided among independent executive, legislative, and judicial branches. The president appoints the cabinet, executes laws passed by the legislative branch, and is commander in chief of the armed forces. The president and vice president run for office on the same ticket and are elected by direct vote for 4-year terms. Legislative power is exercised by a bicameral Congress--the Senate (32 members) and the House of Representatives (178 members).

The Dominican Republic has a multi-party political system with national elections every 2 years (alternating between presidential elections and congressional/municipal elections). Presidential elections are held in years evenly divisible by four. Congressional and municipal elections are held in even numbered years not divisible by four. International observers have found that presidential and congressional elections since 1996 have been generally free and fair. Elections are supervised by a Central Elections Board (JCE) of 9 members chosen for a four-year term by the newly elected Senate. JCE decisions on electoral matters are final.

Under the constitutional reforms negotiated after the 1994 elections, the 16-member Supreme Court of Justice is appointed by a National Judicial Council, which is comprised of the President, the leaders of both houses of Congress, the President of the Supreme Court, and an opposition or non-governing-party member. One other Supreme Court Justice acts as secretary of the Council, a non-voting position. The Supreme Court has sole authority over managing the court system and in hearing actions against the president, designated members of his cabinet, and members of Congress when the legislature is in session.

The Supreme Court hears appeals from lower courts and chooses members of lower courts. Each of the 31 provinces is headed by a presidentially appointed governor. Mayors and municipal councils to administer the 124 municipal districts and the National District (Santo Domingo) are elected at the same time as congressional representatives.

ECONOMY

After a decade of little to no growth in the 1980s, the Dominican Republic's economy boomed in the 1990s, expanding at an average rate of 7.7% per year from 1996 to 2000. Tourism (the leading foreign exchange earner), telecommunications, and free-trade-zone manufacturing are the most important sectors, although agriculture is still a major part of the economy. The Dominican Republic owed much of its success to the adoption of sound macroeconomic policies in the early 1990s and greater opening to foreign investment. Growth turned negative in 2003 (-0.4%) due to the effects of government handling of major bank frauds and to lower U.S. demand for Dominican manufacturers. The Mejía administration negotiated an IMF standby agreement in August 2003 but was unable to comply with fiscal targets. The Fernández administration obtained required tax legislation and IMF board approval for the standby in January 2005. The Dominican peso fell to an unprecedented low in exchange markets in 2003-2004 but strengthened dramatically following the election and inauguration of Leonel Fernández. Since late 2004 it has traded at a rate considered to be overvalued on a purchasing power parity basis. Inflation fell sharply in late 2004 and was estimated at 9% for that calendar year. The Fernández administration successfully renegotiated official bilateral debt with Paris Club member governments, commercial bank debt with London Club members, and sovereign debt with a consortium of lenders. It met fiscal and financial targets of the standby agreement but fell short of goals for reforms in the electricity sector and financial markets. Central Bank statistics indicate 10.7% growth for 2006 with 5.0% inflation. The Central Bank estimates that the economy grew at 7.9% in the first six months of 2007 with an inflation rate of 5.9%.

The Dominican Republic's most important trading partner is the United States (75% of export revenues). Other markets include Canada, Western Europe, and Japan. The country exports free-trade-zone manufactured products (garments, medical devices, etc.), nickel, sugar, coffee, cacao, and tobacco. It imports petroleum, industrial raw materials, capital goods, and foodstuffs. On September 5, 2005, the Dominican Congress ratified a free trade agreement with the U.S. and five Central American countries, known as CAFTA-DR. The CAFTA-DR agreement entered into force for the Dominican Republic on March 1, 2007. The total stock of U.S. foreign direct investment (FDI) in Dominican Republic as of 2006 was U.S. $3.3 billion, much of it directed to the energy and tourism sectors, to free trade zones, and to the telecommunications sector. Remittances were close to $2.7 billion in 2006.

An important aspect of the Dominican economy is the Free Trade Zone industry (FTZ), which made up U.S. $4.55 billion in Dominican exports for 2006 (70% of total exports). Reports show, however, that the FTZs lost approximately 60,000 between 2005 and 2007 and suffered a 4% decrease in total exports in 2006. The textiles sector experienced an approximate 17% drop in exports due in part to the appreciation of the Dominican peso against the dollar, Asian competition following expiration of the quotas of the Multi-Fiber Arrangement, and a government-mandated increase in salaries, which should have occurred in 2005 but was postponed to January 2006. Lost Dominican business was captured by firms in Central America and Asia. The tobacco, jewelry, medical, and pharmaceutical sectors in the FTZs all reported increases for 2006, which somewhat offset textile and garment losses. Industry experts from the FTZs expect that entry into force of the CAFTA-DR agreement will continue to promote substantial growth in the FTZ sector for 2008.

An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Three regional electricity distribution systems were privatized in 1998 via sale of 50% of shares to foreign operators; the Mejía administration repurchased all foreign-owned shares in two of these systems in late 2003. The third, serving the eastern provinces, is operated by U.S. concerns and is 50% U.S.-owned. The World Bank records that electricity distribution losses for 2005 totaled about 38.2%, a rate of losses exceeded in only three other countries. Due to low collection rates, theft, infrastructure problems, and corruption, distribution losses remain high. Subsidies to the electricity sector are in the hundreds of millions of dollars. Congress passed a law in 2007 that criminalizes the act of stealing electricity, but it has not yet been fully implemented. The electricity sector is highly politicized; the prospect of further effective reforms in the sector is poor. Debts in the sector, including government debt, amount to more than U.S. $500 million. Some generating companies are undercapitalized and at times unable to purchase adequate fuel supplies.

FOREIGN RELATIONS

The Dominican Republic has a close relationship with the United States and with the other states of the inter-American system. It has accredited diplomatic missions in most Western Hemisphere countries and in principal European capitals. Newly elected president of Haiti René Préval made a working visit to Santo Domingo in March 2006, reciprocating Leonel Fernández's call on the Interim Government of Haiti in December 2005. The Dominican Government has regularly appealed for international support for its island neighbor.

There is a sizeable Haitian migrant community in the Dominican Republic, many of whom lack residence permits and citizenship documentation. The Dominican Republic is a founding member of the United Nations and participates in many of its specialized and related agencies, including the World Bank, International Labor Organization, International Atomic Energy Agency, and International Civil Aviation Organization. It is a member of the OAS and of the Inter-American Development Bank.

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/35639.htm

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

OFFICIAL NAME

Republic of Ecuador

Geography

Area: 276,840 sq. km; about the size of Colorado.
Cities: Capital--Quito (pop. 2 million). Other major cities--Guayaquil (2.28 million).
Terrain: Jungle east of the Andes, a rich agricultural coastal plain west of the Andes, high-elevation valleys through the mountainous center of the country and an archipelago of volcanic islands in the Pacific Ocean.
Climate: Varied, mild year-round in the mountain valleys; hot and humid in coastal and Amazonian jungle lowlands.

People

Nationality: Noun and adjective--Ecuadorian(s).
Population (July 2007 est.): 13,755,680.
Annual population growth rate (July 2007 est.): 1.55%.
Ethnic groups: Indigenous 6.8%, mestizo (mixed Indian and Spanish) 77.4%, Caucasian and others 10.8%, African 4.9%.
Religion: Predominantly Roman Catholic (95%), but religious freedom recognized.
Languages: Spanish (official), indigenous languages, especially Quichua, the Ecuadorian dialect of Quechua.
Education: Years compulsory--ages 6-14, but enforcement varies. Attendance (through 6th grade)--76% urban, 33% rural. Literacy--92%.
Health: Infant mortality rate--22.1/1,000. Life expectancy--76.62 yrs.

Government

Type: Republic.
Independence: May 24, 1822 (from Spain).
Constitution: August 10, 1998.
Branches: Executive--President and 28 cabinet ministers. Legislative--unicameral Congress. Judicial--Supreme Court, Constitutional Court, Supreme Electoral Tribunal, Provincial Courts, and ordinary civil and criminal judges.
Administrative subdivisions: 22 provinces.
Major political parties: Over a dozen political parties; none predominates, although President Correa's Alianza Pais is ascendant.
Suffrage: Obligatory for literate citizens 18-65 yrs. of age; optional for other eligible voters; active duty military personnel and police may not vote.

Economy

GDP: (2008 est.) $48.5 billion; (2007 preliminary) $44.5 billion; (2006) $41.4 billion.
Real annual growth rate: (2008 est.) 4.25%; (2007 preliminary) 2.65%; (2006) 3.9%.
Per capita GDP: (2007) $3,270; (2006) $3,088.
Natural resources: Petroleum, fish, shrimp, timber, gold.
Agriculture, including seafood (6.7% of GDP in 2007): Products--bananas, seafood, flowers, coffee, cacao, sugar, tropical fruits, palm oil, palm hearts, rice, corn, and livestock.
Industry (9.1% of GDP in 2007; oil and mining 21.9% in 2007): Types--petroleum extraction, food processing, wood products, textiles, chemicals, and pharmaceuticals.
Other major contributors to GDP: Commercial trade (wholesale and retail)--11.8% (2007); transportation--7.45% (2007); construction--8.5% (2007).
Trade: Exports--$12.48 billion (Jan.-Nov. 2007); $12.7 billion (2006). Types--petroleum, bananas, shrimp, coffee, cut flowers cacao, hemp, wood, fish. Major markets (2007)--U.S. 42%, Latin America 26%, Andean Community 20%, European Union (EU) 13%, and Asia 3%. Imports--$11.2 billion (Jan.-Nov. 2007); $11.3 billion (2006). Types--industrial materials, fuels and lubricants, nondurable consumer goods. Major suppliers (Jan.-Nov. 2007)--Latin America 40%, Andean Community 24%, U.S. 21%, Asia 20%, and EU 9%.
Currency: U.S. dollar.

PEOPLE

Ecuador's population is ethnically mixed. A large majority of the population is mestizo (mixed Indian-Caucasian), followed by smaller percentages of indigenous, Afro-Ecuadorian, and European descendent criollos. Although Ecuadorians were heavily concentrated in the mountainous central highland region a few decades ago, today's population is divided about equally between that area and the coastal lowlands. Migration toward cities--particularly larger cities--in all regions has increased the urban population to over 60%. The tropical forest region (or Amazon region) to the east of the mountains remains sparsely populated and contains only about 3% of the population. Due to an economic crisis in the late 1990s, more than 600,000 Ecuadorians emigrated to the U.S. and Europe from 2000 to 2001. According to the 2000 U.S. census there were 323,000 persons who claimed Ecuadorian ancestry. Including undocumented migrants, it is unofficially estimated that there are approximately one million Ecuadorians currently residing in the U.S.

HISTORY, GOVERNMENT, AND POLITICAL CONDITIONS

The Inca Empire and Spanish Conquest
Advanced indigenous cultures flourished in Ecuador long before the area was conquered by the Inca Empire in the 15th century. In 1534, the Spanish arrived and defeated the Inca armies, and Spanish colonists became the new elite. The indigenous population was decimated by disease in the first decades of Spanish rule--a time when the natives also were forced into the "encomienda" labor system for Spanish landlords. In 1563, Quito became the seat of a royal "audiencia" (administrative district) of Spain.

Independence

After independence forces defeated the royalist army in 1822, Ecuador joined Simon Bolivar's Republic of Gran Colombia, only to become a separate republic in 1830. The 19th century was marked by instability, with a rapid succession of rulers. The conservative Gabriel Garcia Moreno unified the country in the 1860s with the support of the Catholic Church. In the late 1800s, world demand for cocoa tied the economy to commodity exports and led to migrations from the highlands to the agricultural frontier on the coast.

A coastal-based liberal revolution in 1895 under Eloy Alfaro reduced the power of the clergy and opened the way for capitalist development. The end of the cocoa boom produced renewed political instability and a military coup in 1925. The 1930s and 1940s were marked by populist politicians, such as five-time President Jose Velasco Ibarra. In January 1942, Ecuador signed the Rio Protocol to end a brief war with Peru the year before. Ecuador agreed to a border that conceded to Peru much territory Ecuador had previously claimed in the Amazon region. After World War II, a recovery in the market for agricultural commodities and the growth of the banana industry helped restore prosperity and political peace. From 1948-60, three presidents--beginning with Galo Plaza--were freely elected and completed their terms. Political turbulence returned in the 1960's, followed by a period of military dictatorship between 1972 and 1979. The 1980's and beginning of the 90's saw a return to democracy, but instability returned by the middle of the decade.

Political Instability (1997-2007)

Abdala Bucaram, from the Guayaquil-based Ecuadorian Roldosista Party (PRE), won the presidency in 1996 on a platform that promised populist economic and social policies, and challenged what Bucaram termed as the power of the nation's oligarchy. During his short term of office, Bucaram's administration was severely criticized for corruption. Bucaram was deposed by the Congress in February 1997 on grounds of alleged mental incompetence. In his place, Congress named Fabian Alarcon interim president. Alarcon's presidency was endorsed by a May 1997 popular referendum.

Quito Mayor Jamil Mahuad of the Popular Democracy party was elected president by a narrow margin In July 1998. Mahuad concluded an historic peace agreement with Peru on October 26, 1998, but increasing economic, fiscal, and financial difficulties drove his popularity steadily lower. On January 21, 2000, during demonstrations in Quito by indigenous groups, the military and police refused to enforce public order. Demonstrators entered the National Assembly building and declared a three-person "junta" in charge of the country. Field-grade military officers declared their support for the concept. During a night of confusion and negotiations, President Mahuad fled the presidential palace. Vice President Gustavo Noboa took charge and Mahuad went on national television to endorse Noboa as his successor. Congress met in emergency session in Guayaquil the same day, January 22, and ratified Noboa as President of the Republic.

Completing Mahuad's term, Noboa restored some stability to Ecuador. He implemented the dollarization of the economy that Mahuad had announced and obtained congressional authorization for the construction of Ecuador's second major oil pipeline, this one financed by a private consortium. Noboa turned over the government on January 15, 2003, to his successor, Lucio Gutierrez, a former army colonel who first came to public attention as a member of the short-lived "junta" of January 21, 2000. Gutierrez' campaign featured an anti-corruption and leftist, populist platform. After taking office, however, Gutierrez adopted relatively conservative fiscal policies and defensive tactics, including replacing the Supreme Court and declaring a state of emergency in the capital to combat mounting opposition. The situation came to a head on April 20, 2005, when political opponents and popular uprisings in Quito prompted Congress to strip Gutierrez of the presidency for allegedly "abandoning his post." When the military withdrew its support, Gutierrez went into temporary exile. Congress declared Vice President Alfredo Palacio the new president. A semblance of stability returned, but the Palacio administration failed to achieve major reforms.

In presidential elections on October 15, 2006, third-time candidate Alvaro Noboa won the first round. However, Rafael Correa, Palacio's former finance minister, running on an anti-establishment reform platform, bested Noboa in the second round presidential runoff on November 26. Election observers characterized the elections as generally free, fair, and transparent. Noboa's National Institutional Renovation and Action Party won the largest bloc in Congress in 2006 elections, followed by Gutierrez's Patriotic Society Party; Correa's Proud and Sovereign Fatherland Alliance movement did not field any congressional candidates. Traditional parties saw their congressional representation cut in half. The new Congress took office January 5, 2007 and Correa was sworn in as President on January 15, 2007. In March, 2007, 57 members of Congress were dismissed on the grounds that they violated campaign laws. Following that, the Congress was largely deadlocked and later effectively replaced by a constituent assembly that was voted into power on September 30, 2007. The assembly, charged with drafting a new constitution, is scheduled to remain in session through mid-2008, and elections for a new Congress and perhaps other offices as well are expected later in 2008.

Government

The 1998 constitution provides for 4-year terms of office for the president, vice president, and members of Congress, although none of the last three democratically-elected presidents finished their terms. Presidents may be re-elected after an intervening term; legislators may be re-elected immediately. The executive branch currently includes 28 ministries, (including coordinating ministries with inter-governmental responsibility) Provincial leaders (called prefects) and councilors, like mayors, city councilors, and rural parish boards, are directly elected. Congress meets throughout the year except for recesses in July and December. Congress is divided into 20 seven-member subject committees. Justices of the Supreme Court are appointed by the Congress for life; members of the Constitutional Court serve four years.

ECONOMY

The Ecuadorian economy is based on petroleum production, manufacturing primarily for the domestic market, and agricultural production for domestic consumption and export. Principal exports are petroleum, bananas, shrimp, flowers, and other primary agricultural products. In 2006, oil accounted for 59% of total export earnings. Ecuador is the world's largest exporter of bananas and plantains (about $1.2 billion in 2006) and a major exporter of shrimp ($588 million in 2006). Exports of nontraditional products such as flowers ($436 million in 2006, a three-fold increase in 10 years) and canned fish ($575 million in 2006) have grown in recent years.

Ecuador's economic performance has been solid since it adopted the dollar as its national currency in 2000, following a major banking crisis and recession in 1999. Since 2000, growth has averaged 4.6% per year, supported by the stability brought by dollarization, high oil prices, strong domestic consumer demand, increased non-traditional exports, and growing remittances ($3 billion a year) from Ecuadorians living abroad. In 2007, economic growth slowed to an estimated 2.65%, while inflation was 3.32% and petroleum and non-petroleum exports expanded. Growth was constrained in 2007 by declining petroleum production and reduced private sector investment. Per capita income has increased from $1,296 in 2000 to an estimated $3,270 in 2007, while the poverty rate fell from 51% in 2000 to 38% in 2006.

Ecuador did not improve its overall competitiveness during this period of economic and export growth. In 2007, it slipped five positions in the World Bank's Doing Business Index (from 123 to 128) and also slipped in the World Economic Forum's Competitiveness Index (from 94 to 103), as other nations moved more aggressively to adapt to globalization.

Though Ecuador has a relative abundance of oil reserves, it has been unable to take full advantage of those resources for its own development. Mismanagement, lack of investment, and corruption in the state-owned oil sector have caused declines in state oil production over the last decade. Overall oil production increased during that period because of growing production by private sector companies, but in 2007 production by the state oil company fell, while that by private sector companies was flat. Commercial disputes as well as judicial and contractual uncertainties have deterred private oil and other companies from investing in the country. The electricity and telecommunications sectors also have similar significant problems. Ecuador was in the final stages of negotiating a free trade agreement (FTA) with the United States, but that progress stalled with an April 2006 hydrocarbons law mandating revisions in contract terms, and the May 2006 seizure of the assets of Occidental Petroleum, at the time the country's largest U.S. investor. Resolution of the Occidental situation is currently pending international arbitration under the terms of the bilateral investment treaty.

President Correa has announced his opposition to resumption of FTA talks with the U.S., citing concerns that Ecuador is not yet sufficiently competitive, especially in sensitive agriculture sectors. Prior to taking office, he said that the Government of Ecuador would only service its external debt obligations after funding domestic social priorities; as of January 2008, the government had met its external debt obligations. In October 2007 the Correa administration decreed that many foreign oil companies operating in Ecuador pay 99% of extraordinary income to the government. The government increased income transfers to the poor and has increased spending on health, education, and basic infrastructure.

FOREIGN RELATIONS

Ecuador always has placed great emphasis on multilateral approaches to international problems. Ecuador is a member of the United Nations (and most of its specialized agencies), the Organization of American States (OAS), and many regional groups, including the Rio Group, the Latin American Economic System, the Latin American Energy Organization, the Latin American Integration Association, and the Community of Andean Nations.

In October 1998, Ecuador and Peru reached a peace agreement to settle their border differences, which had festered since the signing of the 1942 Rio Protocol. This long-running border dispute occasionally erupted into armed hostility along the undemarcated sections, with the last conflict occurring in 1995. The U.S. Government, as one of the four guarantor nations (the others are Argentina, Brazil and Chile), played an important role in bringing the conflict to an end. The peace agreement brokered by the four guarantors in February 1995 led to the cessation of hostilities and a Military Observers Mission to Ecuador-Peru (MOMEP) which monitored the zone. In addition to helping broker the peace accord, the U.S. has been active in demining the former area of conflict and supporting welfare and economic projects in the border area.

The ongoing conflict in Colombia and security along the 450-mile-long northern border are important issues in Ecuador's foreign relations with Colombia. The instability of border areas and frequent encroachments of Colombian guerillas into Ecuadorian territory has led the Ecuadorian army to deploy more troops to the region. Although Ecuadorian officials have stated that Colombian guerrilla activity will not be tolerated on the Ecuadorian side of the border, guerrilla bands have been known to intimidate the local population, demanding extortion payments and practicing vigilante justice. The Correa administration is pursuing a policy known as Plan Ecuador to develop the northern border region and protect citizens from the drug threat.

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/35761.htm

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

OFFICIAL NAME

Arab Republic of Egypt

Geography

Area: 1,001,450 sq. km. (386,000 sq. mi.); approximately equal to Texas and New Mexico combined.
Cities: Capital--Cairo (pop. estimated at 16 million). Other cities--Alexandria (6 million), Aswan, Asyut, Port Said, Suez, Ismailia.
Terrain: Desert, except Nile valley and delta.
Climate: Dry, hot summers; moderate winters.

People

Nationality: Noun and adjective--Egyptian(s).
Population (July 2007 est.): 80,335,036.
Annual growth rate (2007 est.): 1.72%.
Ethnic groups: Egyptian, Bedouin Arab, Nubian.
Religions: Muslim 90%, Coptic Christian 9%, other Christian 1%.
Languages: Arabic (official), English, French.
Education: Years compulsory--ages 6-15. Literacy--total adult 58%.
Health: Infant mortality rate (2006 est.)--31.33 deaths/1,000 live births. Life expectancy (2006 est.)--71 years.

Government

Type: Republic.
Independence: 1922.
Constitution: 1971.
Branches: Executive--president, prime minister, cabinet. Legislative--People's Assembly (444 elected and 10 presidentially appointed members) and Shura (consultative) Council (176 elected members, 88 presidentially appointed). Judicial--Supreme Constitutional Court.
Administrative subdivisions: 26 governorates.
Principal political parties: National Democratic Party (ruling). Principal opposition parties--New Wafd Party, Liberal Party, National Progressive Unionist Grouping (Tagammau), and Nasserite Party.
Suffrage: Universal at 18.

Economy

GDP (2007 est.): $118-120 billion.
Annual growth rate (2007 est.): 7.2%.
Per capita GDP (2007 est.): $5,400.
Natural resources: Petroleum and natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc.
Agriculture: Products--cotton, rice, onions, beans, citrus fruits, wheat, corn, barley, sugar.
Industry: Types--food processing, textiles, chemicals, petrochemicals, construction, light manufacturing, iron and steel products, aluminum, cement, military equipment.
Trade (FY 2005): Exports--$27.4 billion: petroleum, clothing and textiles, cotton, fruits and vegetables, manufactured goods. Major markets--EU, U.S., Middle East, Japan. Imports--$40.48 billion: machinery and transport equipment, petroleum products, livestock, food and beverages, paper and wood products, chemicals. Major suppliers--EU, U.S., China.

PEOPLE AND HISTORY

Egypt is the most populous country in the Arab world and the second-most populous on the African Continent. Nearly all of the country's 79 million people live in Cairo and Alexandria; elsewhere on the banks of the Nile; in the Nile delta, which fans out north of Cairo; and along the Suez Canal. These regions are among the world's most densely populated, containing an average of over 3,820 persons per square mile (1,540 per sq. km.), as compared to 181 persons per sq. mi. for the country as a whole.

Small communities spread throughout the desert regions of Egypt are clustered around oases and historic trade and transportation routes. The government has tried with mixed success to encourage migration to newly irrigated land reclaimed from the desert. However, the proportion of the population living in rural areas has continued to decrease as people move to the cities in search of employment and a higher standard of living.

The Egyptians are a fairly homogeneous people of Hamitic origin. Mediterranean and Arab influences appear in the north, and there is some mixing in the south with the Nubians of northern Sudan. Ethnic minorities include a small number of Bedouin Arab nomads in the eastern and western deserts and in the Sinai, as well as some 50,000-100,000 Nubians clustered along the Nile in Upper (southern) Egypt.

The literacy rate is about 58% of the adult population. Education is free through university and compulsory from ages six through 15. Rates for primary and secondary education have strengthened in recent years. Ninety-three percent of children enter primary school today, compared with 87% in 1994. Major universities include Cairo University (100,000 students), Alexandria University, and the 1,000-year-old Al-Azhar University, one of the world's major centers of Islamic learning.

Egypt's vast and rich literature constitutes an important cultural element in the life of the country and in the Arab world as a whole. Egyptian novelists and poets were among the first to experiment with modern styles of Arabic literature, and the forms they developed have been widely imitated. Egyptian novelist Naguib Mahfouz was the first Arab to win the Nobel prize for literature. Egyptian books and films are available throughout the Middle East.

Egypt has endured as a unified state for more than 5,000 years, and archeological evidence indicates that a developed Egyptian society has existed for much longer. Egyptians take pride in their "pharaonic heritage" and in their descent from what they consider mankind's earliest civilization. The Arabic word for Egypt is Misr, which originally connoted "civilization" or "metropolis."

Archeological findings show that primitive tribes lived along the Nile long before the dynastic history of the pharaohs began. By 6000 B.C., organized agriculture had appeared.

In about 3100 B.C., Egypt was united under a ruler known as Mena, or Menes, who inaugurated the 30 pharaonic dynasties into which Egypt's ancient history is divided--the Old and the Middle Kingdoms and the New Empire. The pyramids at Giza (near Cairo), which were built in the fourth dynasty, testify to the power of the pharaonic religion and state. The Great Pyramid, the tomb of Pharaoh Khufu (also known as Cheops), is the only surviving monument of the Seven Wonders of the Ancient World. Ancient Egypt reached the peak of its power, wealth, and territorial extent in the period called the New Empire (1567-1085 B.C.).

Persian, Greek, Roman, and Arab Conquerors

In 525 B., Cambyses, the son of Cyrus the Great, led a Persian invasion force that dethroned the last pharaoh of the 26th Dynasty. The country remained a Persian province until conquered by Alexander the Great in 322 BC, ushering in Ptolemeic rule Egypt that lasted for nearly 300 years.

Following a brief Persian reconquest, Egypt was invaded and conquered by Arab forces in 642. A process of Arabization and Islamization ensued. Although a Coptic Christian minority remained--and remains today, constituting about 10% of the population--the Arab language inexorably supplanted the indigenous Coptic tongue. For the next 1,300 years, a succession of Arab, Mameluke, and Ottoman caliphs, beys, and sultans ruled the country.

European Influence

The Ottoman Turks controlled Egypt from 1517 until 1882, except for a brief period of French rule under Napoleon Bonaparte. In 1805, Mohammed Ali, commander of an Albanian contingent of Ottoman troops, was appointed Pasha, founding the dynasty that ruled Egypt until his great-great grandson, Farouk I, was overthrown in 1952. Mohammed Ali the Great ruled Egypt until 1848, ushering in the modern history of Egypt. The growth of modern urban Cairo began in the reign of Ismail (1863-79). Eager to Westernize the capital, he ordered the construction of a European-style city to the west of the medieval core. The Suez Canal was completed in his reign in 1869, and its completion was celebrated by many events, including the commissioning of Verdi's "Aida" for the new opera house and the building of great palaces such as the Omar Khayyam (originally constructed to entertain the French Empress Eugenie, which is now the central section of the Cairo Marriott Hotel).

In 1882, British expeditionary forces crushed a revolt against the Ottoman rulers, marking the beginning of British occupation and the virtual inclusion of Egypt within the British Empire. In deference to growing nationalism, the U.K. unilaterally declared Egyptian independence in 1922. British influence, however, continued to dominate Egypt's political life and fostered fiscal, administrative, and governmental reforms.

In the pre-1952 revolution period, three political forces competed with one another: the Wafd, a broadly based nationalist political organization strongly opposed to British influence; King Fuad, whom the British had installed during World War II; and the British themselves, who were determined to maintain control over the Canal. Other political forces emerging in this period included the communist party (1925) and the Muslim Brotherhood (1928), which eventually became a potent political and religious force.

During World War II, British troops used Egypt as a base for Allied operations throughout the region. British troops were withdrawn to the Suez Canal area in 1947, but nationalist, anti-British feelings continued to grow after the war. On July 22-23, 1952, a group of disaffected army officers (the "free officers") led by Lt. Col. Gamal Abdel Nasser overthrew King Farouk, whom the military blamed for Egypt's poor performance in the 1948 war with Israel. Following a brief experiment with civilian rule, they abrogated the 1923 constitution and declared Egypt a republic on June 19, 1953. Nasser evolved into a charismatic leader, not only of Egypt, but the Arab world, promoting and implementing "Arab socialism." He nationalized Egypt's economy.

Nasser helped establish the Non-Aligned Movement of developing countries in September 1961, and continued to be a leading force in the movement until his death in 1970. When the United States held up military sales in reaction to Egyptian neutrality vis-à-vis Moscow, Nasser concluded an arms deal with Czechoslovakia in September 1955.

When the U.S. and the World Bank withdrew their offer to help finance the Aswan High Dam in mid-1956, Nasser nationalized the privately owned Suez Canal Company. The crisis that followed, exacerbated by growing tensions with Israel over guerrilla attacks from Gaza and Israeli reprisals, resulted in the invasion of Egypt that October by France, Britain, and Israel.

Nasser's domestic policies were arbitrary and frequently oppressive, yet generally popular. All opposition was stamped out, and opponents of the regime frequently were imprisoned without trial. Nasser's foreign and military policies helped provoke the Israeli attack of June 1967 that virtually destroyed Egypt's armed forces along with those of Jordan and Syria. Israel also occupied the Sinai Peninsula, the Gaza Strip, the West Bank, and the Golan Heights. Nasser, nonetheless, was revered by the masses in Egypt and elsewhere in the Arab world until his death in 1970.

After Nasser's death, another of the original "free officers," Vice President Anwar el-Sadat, was elected President. In 1971, Sadat concluded a treaty of friendship with the Soviet Union, but a year later, ordered Soviet advisers to leave. In 1973, he launched the October war with Israel, in which Egypt's armed forces achieved initial successes but were defeated in Israeli counterattacks.

Camp David and the Peace Process

In a momentous change from the Nasser era, President Sadat shifted Egypt from a policy of confrontation with Israel to one of peaceful accommodation through negotiations. Following the Sinai Disengagement Agreements of 1974 and 1975, Sadat created a fresh opening for progress by his dramatic visit to Jerusalem in November 1977. This led to President Jimmy Carter's invitation to President Sadat and Prime Minister Begin to join him in trilateral negotiations at Camp David.

The historic Camp David accords were signed by Egypt and Israel and witnessed by the U.S. on September 17, 1978. The accords led to the March 26, 1979 signing of the Egypt-Israel peace treaty, by which Egypt regained control of the Sinai in May 1982. Throughout this period, U.S.-Egyptian relations steadily improved, but Sadat's willingness to break ranks by making peace with Israel earned him the enmity of most other Arab states.

Domestic Change

Sadat introduced greater political freedom and a new economic policy, the most important aspect of which was the infitah or "open door." This relaxed government controls over the economy and encouraged private, including foreign, investment. Sadat dismantled much of the existing political machine and brought to trial a number of former government officials accused of criminal excesses during the Nasser era.

Liberalization also included the reinstitution of due process and the legal banning of torture. Sadat tried to expand participation in the political process in the mid-1970s but later abandoned this effort. In the last years of his life, Egypt was racked by violence arising from discontent with Sadat's rule and sectarian tensions, and it experienced a renewed measure of repression.

From Sadat to Mubarak

On October 6, 1981, Islamic extremists assassinated President Sadat. Hosni Mubarak, Vice President since 1975 and air force commander during the October 1973 war, was elected President later that month. He was subsequently confirmed by popular referendum for four more 6-year terms, most recently in September 2005. Mubarak has maintained Egypt's commitment to the Camp David peace process, while at the same time re-establishing Egypt's position as an Arab leader. Egypt was readmitted to the Arab League in 1989. Egypt also has played a moderating role in such international fora as the UN and the Non-Aligned Movement.

Since 1991, Mubarak has overseen a domestic economic reform program to reduce the size of the public sector and expand the role of the private sector. There has been less progress in political reform. The November 2000 People's Assembly elections saw 34 members of the opposition win seats in the 454-seat assembly, facing a clear majority of 388 ultimately affiliated with the ruling National Democratic Party (NDP). Opposition parties continue to face various difficulties in mounting credible electoral challenges to the NDP. The Muslim Brotherhood, founded in Egypt in 1928, remains an illegal organization and is not recognized as a political party (current Egyptian law prohibits the formation of political parties based on religion). Members are known publicly and openly speak their views, although they do not explicitly identify themselves as members of the organization. Members of the Brotherhood have been elected to the People's Assembly and local councils as independents, and most recently scored a major victory in 2005 parliamentary elections, winning 20% of the seats, thus forming the largest opposition group.

GOVERNMENT AND POLITICAL CONDITIONS

The Egyptian Constitution provides for a strong executive. Authority is vested in an elected president who can appoint one or more vice presidents, a prime minister, and a cabinet. The president's term runs for 6 years. Egypt's legislative body, the People's Assembly, has 454 members--444 popularly elected and 10 appointed by the president. The constitution reserves 50% of the assembly seats for "workers and peasants." The assembly sits for a 5-year term but can be dissolved earlier by the President. There also is a 264-member Shura (consultative) Council, in which 88 members are appointed and 174 elected for 6-year terms. Below the national level, authority is exercised by and through governors and mayors appointed by the central government and by popularly elected local councils.

Opposition party organizations make their views public and represent their followers at various levels in the political system, but power is concentrated in the hands of the President and the National Democratic Party majority in the People's Assembly and those institutions dominate the political system. In addition to the ruling National Democratic Party, there are 18 other legally recognized parties, whereas in 2004 there were only 16 other legally recognized parties.

The November 2000 elections were generally considered to have been more transparent and better executed than past elections, because of universal judicial monitoring of polling stations. On the other hand, opposition parties continue to lodge credible complaints about electoral manipulation by the government. There are significant restrictions on the political process and freedom of expression for non-governmental organizations, including professional syndicates and organizations promoting respect for human rights.

Progress was seen in the September 2005 presidential elections when parties were allowed to field candidates against President Mubarak and his National Democratic Party. In early 2005, President Mubarak proposed amending the constitution to allow, for the first time in Egypt's history, competitive, multi-candidate elections. An amendment was drafted by parliament and approved by public referendum in late May 2005. In September 2005, President Mubarak was reelected, according to official results, with 88% of the vote. His two principal challengers, Ayman Nour and No'man Gom'a, took 7% and 3% of the vote respectively.

In March 2007, Mubarak introduced several constitutional amendments that would increase presidential powers and, more significantly, ban any political parties based on religion, race, or ethnicity. The amendments were put to a popular referendum and, despite low voter turnout and boycotts by opposition groups, passed with 75.9% approval.

Egypt's judicial system is based on European (primarily French) legal concepts and methods. Under the Mubarak government, the courts have demonstrated increasing independence, and the principles of due process and judicial review have gained greater respect. The legal code is derived largely from the Napoleonic Code. Marriage and personal status (family law) are primarily based on the religious law of the individual concerned, which for most Egyptians is Islamic Law (Sharia).

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

NATIONAL SECURITY

Egypt's armed forces, among the largest in the region, include the army, air defense, air force, and navy. The armed forces inventory includes equipment from the United States, France, Italy, the United Kingdom, the former Soviet Union, and China. Equipment from the former Soviet Union is being progressively replaced by more modern American, French, and British equipment, a significant portion of which is built under license in Egypt. To bolster stability and moderation in the region, Egypt has provided military assistance and training to a number of African and Arab states. Egypt remains a strong military and strategic partner of the United States.

ECONOMY

With the installation of the 2004 Egyptian parliament, the Government of Egypt began a new reform movement, following a stalled economic reform program begun in 1991, but moribund since the mid-1990s. In the past year, the cabinet economic team has simplified and reduced tariffs and taxes, improved the transparency of the national budget, revived stalled privatizations of public enterprises and implemented economic legislation designed to foster private sector-driven economic growth and improve Egypt's competitiveness. Despite these achievements, the economy is still hampered by government intervention, substantial subsidies for food, housing, and energy, and bloated public sector payrolls. Moreover, the public sector still controls most heavy industry.

In sectoral terms, agriculture is mainly in private hands, and has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic marketing are also largely private. The Egyptian economy, however, relies heavily on tourism, oil and gas exports, and Suez Canal revenues, much of which is controlled by the public sector and is also vulnerable to outside factors. The tourism sector suffered tremendously following a terrorist attack in Luxor in October 1997. The tourism sector feared a repeat of the downturn in tourist numbers when terrorists attacked resorts in the Sinai Peninsula in 2004 and 2005. So far, however, the sector has not suffered as greatly as expected.

The U.S. has a large assistance program in Egypt and provides funding for a variety of programs in addition to some cash transfers. A portion of U.S. assistance to Egypt under the 2003 Iraq war supplemental appropriations was provided in the form of bond guarantees, which were contingent upon Egyptian compliance with a series of economic conditions. Egypt met the conditions and in September 2005 issued $1.25 billion in 10-year bonds that were fully guaranteed by the United States. To support the Middle East peace process through regional economic integration, the United States permits products to be imported from Egypt without tariffs if they have been produced in Qualified Industrial Zones and 11.7% of the inputs of these products originate from Israel.

Agriculture

Approximately one-third of Egyptian labor is engaged directly in farming, and many others work in the processing or trading of agricultural products. Nearly all of Egypt's agricultural production takes place in some 2.5 million hectares (6 million acres) of fertile soil in the Nile Valley and Delta. Some desert lands are being developed for agriculture, including the ambitious Toshka project in Upper Egypt, but some other fertile lands in the Nile Valley and Delta are being lost to urbanization and erosion.

Warm weather and plentiful water permit several crops a year. Further improvement is possible, but land is worked intensively and yields are high. Cotton, rice, wheat, corn, sugarcane, sugar beets, onions, and beans are the principal crops. Increasingly, a few modern operations are producing fruits, vegetables and flowers, in addition to cotton, for export. While the desert hosts some large, modern farms, more common traditional farms occupy one acre each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also have cows, water buffaloes, and chicken, although larger modern farms are becoming more important.

The United States is a major supplier of wheat, corn, and soybean products to Egypt, almost all through commercial sales. Egypt is, in fact, traditionally the U.S.'s largest market for wheat sales. U.S. agricultural sales to Egypt average $1 billion annually. U.S. food assistance programs to Egypt ended in 1992 as Egypt became more prosperous. Egypt continues to receive modest food assistance through the World Food Program and from France.

"Egypt," wrote the Greek historian Herodotus 25 centuries ago, "is the gift of the Nile." The land's seemingly inexhaustible resources of water and soil carried by this mighty river created in the Nile Valley and Delta the world's most extensive oasis. Without the Nile, Egypt would be little more than a desert wasteland.

The river carves a narrow, cultivated floodplain, never more than 20 kilometers wide, as it travels northward toward Cairo from Lake Nasser on the Sudanese border, behind the Aswan High Dam. Just north of Cairo, the Nile spreads out over what was once a broad estuary that has been filled by river deposits to form a fertile delta about 250 kilometers wide (150 mi.) at the seaward base and about 160 kilometers (96 mi.) from south to north.

Before the construction of dams on the Nile, particularly the Aswan High Dam (started in 1952, completed in 1970), the fertility of the Nile Valley was sustained by the water flow and the silt deposited by the annual flood. Sediment is now obstructed by the Aswan High Dam and retained in Lake Nasser. The interruption of yearly, natural fertilization and the increasing salinity of the soil has been a manageable problem resulting from the dam. The benefits remain impressive: more intensive farming on millions of acres of land made possible by improved irrigation, prevention of flood damage, and the generation of billions of low-cost kilowatt hours of electricity.

The Western Desert accounts for about two-thirds of the country's land area. For the most part, it is a massive sandy plateau marked by seven major depressions. One of these, Fayoum, was connected about 3,600 years ago to the Nile by canals. Today, it is an important irrigated agricultural area.

Natural Resources

In addition to the agricultural capacity of the Nile Valley and Delta, Egypt's natural resources include petroleum, natural gas, phosphates, and iron ore. Crude oil is found primarily in the Gulf of Suez and in the Western Desert. Natural gas is found mainly in the Nile Delta, off the Mediterranean seashore, and in the Western Desert. Oil and gas accounts for approximately 12% of GDP. Export of petroleum and related products (including bunker and aviation sales) amounted to $2.7 billion in fiscal year 2003-04.

Crude oil production has been in decline for several years, from a high of more than 920,000 barrels per day (BPD) in 1995 to less than 662,000 BPD as of April 2006. To minimize the growing domestic demand of petroleum products, currently estimated at 25 million metric tons per year, Egypt is encouraging the production of natural gas. Over a 5-year period, production of natural gas increased by approximately 75% to reach about 3.3 billion cubic feet per day (BCFD) by the end of FY 2003/04. Currently, gas accounts for almost 50% of all hydrocarbon usage in Egypt.

Over the last 22 years, more than 230 oil and gas exploration agreements have been signed and multinational oil companies spent more than $27 billion in exploration companions. As of 2005, crude oil reserves were estimated at 3.7 billion barrels, and proven natural gas reserves were estimated at 58.5 trillion cubic feet (TCF) with probable additional reserves totaling another 40-60 TCF. Texas-based Apache Oil Company is the largest American investor in Egypt, with a total investment of more than $2.8 billion since 1996.

Egypt's excess of natural gas will more than meet its domestic demand for many years to come. The Ministry of Petroleum has determined that expanding the Egyptian petrochemical industry and increasing exports of natural gas as its most significant strategic objectives. As of September 2005, three liquefied natural gas (LNG) trains had been in operation. The first is in Damietta on the eastern side of the Delta and started exporting in early 2005. It is headed by the Spanish electric utility, Union Fenosa. The second LNG project is located at Idku on the western side of the Delta and started exporting in 2005. The first train started in April 2005, and the second in September. British Gas (BG) Group and the Malaysian state oil company Petronas are the major investors. Another project that will utilize gas for export and domestic consumption is the Mediterranean Gas Complex in Port Said where the Italian company AGIP and BP are the main shareholders. This facility will have a total cost of about $315 million and went on line in late 2004.

Egypt and Jordan established the Eastern Gas Company to export natural gas to Jordan, and then later to Syria and Lebanon. In summer 2003 Egypt began exporting gas to Jordan via a new pipeline from El Arish on Egypt's north Sinai cost to Taba on the Gulf of Aqaba, and then underwater to the Jordanian city of Aqaba. Gas exports to Jordan generated gross revenues of approximately $60 million in 2003/04 and are currently reaching $85-100 million.

Transport and Communication

Transportation facilities in Egypt are centered in Cairo and largely follow the pattern of settlement along the Nile. The main line of the nation's 4,800-kilometer (2,800-mi.) railway network runs from Alexandria to Aswan. The well-maintained road network has expanded rapidly to over 21,000 miles, covering the Nile Valley and Delta, Mediterranean and Red Sea coasts, the Sinai, and the Western oases.

Egypt Air provides reliable domestic air service to major tourist destinations from its Cairo hub, in addition to overseas routes. The Nile River system (about 1,600 km. or 1,000 mi.) and the principal canals (1,600 km.) are important locally for transportation. The Suez Canal is a major waterway of international commerce and navigation, linking the Mediterranean and Red Seas. Major ports are Alexandria, Port Said, and Damietta on the Mediterranean, and Suez and Safraga on the Red Sea.

Egypt has long been the cultural and informational center of the Arab world, and Cairo is the region's largest publishing and broadcasting center. There are eight daily newspapers with a total circulation of more than 2 million, and a number of monthly newspapers, magazines, and journals. The majority of political parties have their own newspapers, and these papers conduct a lively, often highly partisan, debate on public issues.

Egyptian ground-broadcast television (ETV) is government controlled and depends heavily on commercial revenue. ETV sells its specially produced programs and soap operas to the entire Arab world. In addition to Egyptian programming, the Middle East Broadcast Company, a Saudi television station transmitting from London (MBC), Arab Radio and Television (ART), Al-Jazeera television, and other Gulf stations as well as Western networks such as CNN and BBC, provide access to more international programs to Egyptians who own satellite receivers.

ETV has two main channels, six regional channels, and three satellite channels. Of the two main channels, Channel I uses mainly Arabic, while Channel II is dedicated to foreigners and more cultured viewers, broadcasting news in English and French as well as Arabic.

Egyptian Satellite channels broadcast to the Middle East, Europe, and the U.S. East Coast. In April 1998, Egypt launched its own satellite known as NileSat 101. Seven specialized channels cover news, culture, sports, education, entertainment, health, and drama. A second, digital satellite, Nilesat 102, was launched in August 2000. Many of its channels are rented to other stations.

Three new private satellite-based TV stations were launched in November 2001, marking a great change in Egyptian government policy. Dream TV 1 and 2 produce cultural programming, broadcast contemporary video clips and films featuring Arab and international actors, as well as soap operas; another private station focuses on business and general news. Both private channels transmit on NileSat.

Radio in Egypt almost all government controlled, using 44 short-wave frequencies, 18 medium-wave stations, and four FM stations. There are seven regional radio stations covering the country. Egyptian Radio transmits 60 hours daily overseas in 33 languages and three hundred hours daily within Egypt. In 2000, Radio Cairo introduced new specialized (thematic) channels on its FM station. So far, they include news, music, and sports. Radio enjoys more freedom than TV in its news programs, talk shows and analysis.

FOREIGN RELATIONS

Geography, population, history, military strength, and diplomatic expertise give Egypt extensive political influence in the Middle East and within the Non-Aligned Movement as a whole. Cairo has been a crossroads of Arab commerce and culture for millennia, and its intellectual and Islamic institutions are at the center of the region's social and cultural development.

The Arab League headquarters is in Cairo, and the Secretary General of the League is traditionally an Egyptian. Former Egyptian Foreign Minister Amr Moussa is the present Secretary General of the Arab League. President Mubarak has often chaired the African Union (formerly the Organization of African Unity). Former Egyptian Deputy Prime Minister Boutros Boutros-Ghali served as Secretary General of the United Nations from 1991 to 1996.

Egypt is a key partner in the search for peace in the Middle East and resolution of the Israeli-Palestinian conflict. Sadat's groundbreaking trip to Israel in 1977, the 1978 Camp David Accords, and the 1979 Egypt-Israel Peace Treaty represented a fundamental shift in the politics of the region--from a strategy of confrontation to one of peace as a strategic choice. Egypt was subsequently ostracized by other Arab states and ejected from the Arab League from 1979 to 1989. Egypt played an important role in the negotiations leading to the Madrid Peace Conference in 1991, which, under U.S. and Russian sponsorship, brought together all parties in the region to discuss Middle East peace. This support has continued to the present, with President Mubarak often intervening personally to promote peace negotiations. In 1996, he hosted the Sharm El-Sheikh "Summit of the Peacemakers" attended by President Clinton and other world leaders. In 2000, he hosted two summits at Sharm El-Sheikh and one at Taba in an effort to resume the Camp David negotiations suspended in July of 2000, and in June 2003, Mubarak hosted President Bush for another summit on the Middle East peace process. Throughout mid-2004, Egypt worked closely with Israel and the Palestinian Authority to facilitate stability following Israel's withdrawal from Gaza, which occurred in August and September of 2005. Prior to this Egypt and Israel reached an agreement that allowed Egypt to deploy additional forces along the Philadelphi Corridor in an attempt to control the border and prevent the smuggling of weapons.

Egypt played a key role during the 1990-91 Gulf crisis. President Mubarak helped assemble the international coalition and deployed 35,000 Egyptian troops against Iraq to liberate Kuwait. The Egyptian contingent was the third-largest in the coalition forces, after the U.S. and U.K. In the aftermath of the Gulf war, Egypt signed the Damascus declaration with Syria and the Gulf states to strengthen Gulf security. Egypt continues to contribute regularly to UN peacekeeping missions, most recently in East Timor, Sierra Leone, and Liberia. In August 2004, Egypt was actively engaged in seeking a solution to the crisis in the Darfur region of Sudan, including the dispatch of military monitors. Following the September 11, 2001 terrorist attacks on the United States, Egypt, which has itself been the target of terrorist attacks, has been a key supporter of the U.S. war against terrorists and terrorist organizations such as Osama bin Ladin and al-Qaeda, and actively supported the Iraqi Governing Council, as well as the subsequent government of Prime Minister Allawi. In July 2005, terrorists attacked the Egyptian city of Sharm El Sheikh. In the same month, Egypt's envoy to Iraq was assassinated.

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/5309.htm

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

OFFICIAL NAME

Republic of El Salvador

Geography

Area: 20,742 sq. km. (8,008 sq. mi.); about the size of Massachusetts.
Cities: Capital--San Salvador (pop. 1.6 million). Other cities--Santa Ana, San Miguel, Soyapango, and Apopa.
Terrain: Mountains separate country into three distinct regions--southern coastal belt, central valleys and plateaus, and northern mountains.
Climate: Semitropical, distinct wet and dry seasons.

People

Nationality: Noun and adjective--Salvadoran(s).
Population (2007 est.): 5.7 million.
Annual growth rate (2006 est.): 1.7%.
Ethnic groups: Mestizo 90%, indigenous 1%, Caucasian 9%.
Religion: About 52% Roman Catholic, with significant and growing numbers of Protestant groups.
Language: Spanish.
Education: Free through ninth grade. Attendance (grades 1-9)--90.4%. Literacy--84.0% nationally; 77% in rural areas.
Health: Infant mortality rate (2005)--23/1,000 (source: UNICEF). Life expectancy at birth (2007)--70.8 years.
Work force (about 1.7 million, 2007): Agriculture--17%; services--48.7%; industry--15.7%; construction--7.6%; government--4.5% (2006).

Government

Type: Republic.
Constitution: December 20, 1983.
Independence: September 15, 1821.
Branches: Executive--president and vice president. Legislative--84-member Legislative Assembly. Judicial--independent (Supreme Court).
Administrative subdivisions: 14 departments.
Political parties (represented in the legislature): Farabundo Marti National Liberation Front (FMLN), Nationalist Republican Alliance (ARENA), National Conciliation Party (PCN), Christian Democratic Party (PDC), and Democratic Change (CD).
Suffrage: Universal at 18.

Economy

GDP (2007): $20.4 billion; PPP GDP $41.56 billion (2007 IMF estimate).
GDP annual real growth rate (2007): 4.7%.
Per capita income (2007): $3,547.21; PPP per capita income $5,842 (2007 IMF estimate).
Agriculture (11.2% of GDP, 2007): Products--coffee, sugar, livestock, corn, poultry, and sorghum. Arable, cultivated, or pasture land--68% (2005).
Industry (20.6% of GDP, 2007): Types--textiles and apparel, medicines, food and beverage processing, clothing, chemical products, petroleum products, electronics, call centers.
Trade (2007): Exports--$4 billion: textiles and apparel, ethyl alcohol, coffee, sugar, medicines, iron and steel products, tuna, light manufacturing, and paper products. Major markets--U.S. 50.8%, Central American Common Market (CACM) 33.7%. Imports--$8.7 billion: petroleum, iron products, machines and mechanical devices, cars, medicines, consumer goods, foodstuffs, capital goods, and raw industrial materials. Major suppliers--U.S. 35.6%, CACM 16.8%, Mexico 9.8%.

PEOPLE

El Salvador's population numbers about 5.7 million. Almost 90% is of mixed Indian and Spanish extraction. About 1% is indigenous; very few Indians have retained their customs and traditions. The country's people are largely Roman Catholic and Protestant. Spanish is the language spoken by virtually all inhabitants. The capital city of San Salvador has about 1.6 million people; an estimated 37.3% of El Salvador's population lives in rural areas.

HISTORY

The Pipil Indians, descendants of the Aztecs, and the Pocomames and Lencas were the original inhabitants of El Salvador.

The first Salvadoran territory visited by Spaniards was Meanguera Island, located in the Gulf of Fonseca, where Spanish Admiral Andrés Niño led an expedition to Central America and disembarked on May 31, 1522. In June 1524, the Spanish Captain Pedro de Alvarado started a war to conquer Cuscatlán. His cousin Diego de Alvarado established the village of San Salvador in April 1525. In 1546, Charles I of Spain granted San Salvador the title of city.

During the subsequent years, the country evolved under Spanish rule; however, toward the end of 1810 many people began to express discontent. On November 5, 1811, when Priest José Matias Delgado rang the bells of La Merced Church in San Salvador calling for insurrection, the people began to band together for freedom.

In 1821, El Salvador and the other Central American provinces declared their independence from Spain. When these provinces were joined with Mexico in early 1822, El Salvador resisted, insisting on autonomy for the Central American countries. In 1823, the United Provinces of Central America was formed of the five Central American states under Gen. Manuel Jose Arce. When this federation was dissolved in 1838, El Salvador became an independent republic. El Salvador's early history as an independent state--as with others in Central America--was marked by frequent revolutions; not until the period 1900-30 was relative stability achieved. Following a deterioration in the country's democratic institutions in the 1970s a period of civil war followed from 1980-1992. More than 75,000 people are estimated to have died in the conflict. In January 1992, after prolonged negotiations, the opposing sides signed peace accords which ended the war, brought the military under civilian control, and allowed the former guerillas to form a legitimate political party and participate in elections.

GOVERNMENT AND POLITICAL CONDITIONS

El Salvador is a democratic republic governed by a president and an 84-member unicameral Legislative Assembly. The president is elected by universal suffrage by absolute majority vote and serves for a 5-year term. A second round runoff is required in the event that no candidate receives more than 50% of the first round vote. Members of the assembly are elected based on the number of votes that their parties obtain in each department (circumscriptive suffrage) and serve for 3-year terms. The country has an independent judiciary and Supreme Court. Legislative and municipal elections will be held in January 2009. Presidential elections will be held in March 2009.

Political Landscape

Hard-line conservatives, including some members of the military, created the Nationalist Republican Alliance party (ARENA) in 1981. ARENA almost won the election in 1984 with solid private sector and rural farmer support. By 1989, ARENA had attracted the support of business groups. Multiple factors contributed to ARENA victories in the 1988 legislative and 1989 presidential elections, including allegations of corruption in the ruling Christian Democratic party which had poor relations with the private sector, and historically low prices for the nation's main agricultural exports.

The successes of Alfredo Cristiani's 1989-94 administration in achieving a peace agreement to end the civil war and in improving the nation's economy helped ARENA--led by former San Salvador mayor Armando Calderon Sol--keep both the presidency and a working majority in the Legislative Assembly in the 1994 elections. ARENA's legislative position was weakened in the 1997 elections, but it recovered its strength, helped by divisions in the opposition, in time for another victory in the 1999 presidential race, bringing President Francisco Guillermo Flores Perez to office. Flores concentrated on modernizing the economy and strengthening bilateral relations with the United States. Under his presidency El Salvador committed itself to combating international terrorism, including sending troops to aid in the reconstruction of Iraq. El Salvador also played a key role in negotiations for the Central American Free Trade Agreement (CAFTA-DR).

Taking advantage of both public apprehension of Flores' policies and ARENA infighting, the chief opposition party, the Farabundo Marti National Liberation Front (FMLN), was able to score a significant victory against ARENA in the March 2003 legislative and municipal elections. ARENA, left with only 29 seats in the 84-seat Legislative Assembly, was forced to court the right-wing National Conciliation Party (PCN) in order to form a majority voting bloc. However, in 2003 the PCN entered into a loose partnership with the FMLN, further limiting ARENA's ability to maneuver in the legislature.

Despite these constraints, ARENA made a strong showing in the March 2004 presidential election, which was marked by an unprecedented 67% voter turnout. ARENA candidate Elias Antonio "Tony" Saca handily defeated the FMLN candidate and party head Shafik Handal, garnering 57.7% of the votes cast. The defeat of the FMLN's presidential candidate rekindled an internal FMLN struggle between hardliners and more moderate members who saw the party's 2004 defeat as a call for reform. In addition, the PCN and the two parties that comprise the center/center-left coalition, the United Democratic Center (CDU) and the Christian Democratic Party (PDC), faced dissolution for failing to each capture at least 3% of the vote.

In March 2006 legislative and municipal elections, the ruling ARENA party garnered 34 Assembly deputies and 147 mayoralties, while the opposition FMLN won 32 legislative seats and 51 city halls (plus 8 additional mayoralties in which they participated as part of a coalition). The PCN, PDC, and CD carried 10, 6, and 2 Legislative Assembly seats, respectively. As with the 2003-2006 Assembly, the combined 44 seats of ARENA and their center-right PCN allies are sufficient for all legislation requiring a 43-vote simple majority, while the FMLN can still block legislation requiring a two-thirds (56 vote) supermajority. El Salvador's political parties are preparing and planning for 2009, when presidential, legislative, and municipal elections will be held in the same year for the first time since 1994.

Human Rights and Post-War Reforms

During the 12-year civil war, human rights violations by both the government security forces and left-wing guerillas were rampant. The accords established a Truth Commission under UN auspices to investigate the most serious cases. The commission recommended that those identified as human rights violators be removed from all government and military posts. Thereafter, the Legislative Assembly granted amnesty for political crimes committed during the war. Among those freed as a result were the Salvadoran Armed Forces (ESAF) officers convicted in the November 1989 Jesuit murders and the FMLN ex-combatants held for the 1991 murders of two U.S. servicemen. The peace accords also established the Ad Hoc Commission to evaluate the human rights record of the ESAF officer corps.

In accordance with the peace agreements, the constitution was amended to prohibit the military from playing an internal security role except under extraordinary circumstances. Demobilization of Salvadoran military forces generally proceeded on schedule throughout the process. The Treasury Police, National Guard, and National Police were abolished, and military intelligence functions were transferred to civilian control. By 1993--9 months ahead of schedule--the military had cut personnel from a war-time high of 63,000 to the level of 32,000 required by the peace accords. By 1999, ESAF strength stood at less than 15,000, including uniformed and non-uniformed personnel, consisting of personnel in the army, navy, and air force. A purge of military officers accused of human rights abuses and corruption was completed in 1993 in compliance with the Ad Hoc Commission's recommendations. The military's new doctrine, professionalism, and complete withdrawal from political and economic affairs leave it one of the most respected institutions in El Salvador.

More than 35,000 eligible beneficiaries from among the former guerrillas and soldiers who fought in the war received land under the peace accord-mandated land transfer program, which ended in January 1997. The majority of them also received agricultural credits.

National Civilian Police

The National Civilian Police (PNC), created to replace the discredited public security forces, deployed its first officers in March 1993 and was present throughout the country by the end of 1994. The PNC has about 16,000 officers. The United States, through the International Criminal Investigative Training Assistance Program (ICITAP) and now through the Department of State's Bureau for International Narcotics and Law Enforcement Affairs, led international support for the PNC and the National Public Security Academy (ANSP), providing about $32 million in non-lethal equipment and training since 1992.

Judiciary

Following the peace accords, both the Truth Commission and the Joint Group identified weaknesses in the judiciary and recommended solutions, including the replacement of all the magistrates on the Supreme Court. This recommendation was fulfilled in 1994 when an entirely new court was elected, but weaknesses remain. The process of replacing judges in the lower courts, and of strengthening the attorney generals' and public defender's offices, has moved slowly. The government continues to work in all of these areas with the help of international donors, including the United States. Action on peace accord-driven constitutional reforms designed to improve the administration of justice was largely completed in 1996 with legislative approval of several amendments and the revision of the Criminal Procedure Code--with broad political consensus.

ECONOMY

The Salvadoran economy continues to benefit from a commitment to free markets and careful fiscal management. The economy has been growing at a steady and moderate pace since the signing of peace accords in 1992, and poverty has been cut from 66% in 1991 to 30.7% in 2006. Much of the improvement in El Salvador's economy is a result of the privatization of the banking system, telecommunications, public pensions, electrical distribution and some electrical generation; reduction of import duties; elimination of price controls; and improved enforcement of intellectual property rights. Capping those reforms, on January 1, 2001, the U.S. dollar became legal tender in El Salvador. The economy is now fully dollarized.

The Salvadoran Government has maintained fiscal discipline during post-war reconstruction and reconstruction following earthquakes in 2001 and hurricanes in 1998 and 2005. Taxes levied by the government include a value added tax (VAT) of 13%, income tax of 20%, excise taxes on alcohol and cigarettes, and import duties. The VAT is the largest source of revenue, accounting for about 52.2% of total tax revenues in 2007. El Salvador's public external debt in May 2008 was about $5.5 billion, 27.02% of GDP.

Years of civil war, fought largely in the rural areas, had a devastating impact on agricultural production in El Salvador. The agricultural sector experienced significant recovery, buoyed in part by higher world prices for coffee and sugarcane and increased diversification into horticultural crops. Seeking to develop new growth sectors and employment opportunities, El Salvador created new export industries through fiscal incentives for free trade zones. The largest beneficiary has been the textile and apparel (maquila) sector, which directly provides approximately 70,000 jobs. Services, including retail and financial, have also shown strong employment growth, with about 48.7% of the total labor force now employed in the sector.

Remittances from Salvadorans working in the United States are an important source of income for many families in El Salvador. In 2007, the Central Bank estimated that remittances totaled $3.7 billion. UNDP surveys show that an estimated 22.3% of families receive remittances.

Under its export-led growth strategy, El Salvador has pursued economic integration with its Central American neighbors and negotiated trade agreements with the Dominican Republic, Chile, Mexico, Panama, Taiwan, Colombia, and the United States. Central American countries began negotiating an Association Agreement with the European Union in 2007. Trade agreements with CARICOM and Canada are also under negotiation, while an agreement with Israel is being considered. Exports in 2007 grew 7.4% while imports grew 13.1%. As in previous years, the large trade deficit was offset by family remittances.

The U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), implemented between El Salvador and the United States on March 1, 2006, provides El Salvador preferential access to U.S. markets. Textiles and apparel, shoes, and processed foods are among the sectors that benefit. In addition to trade benefits, CAFTA-DR also provides trade capacity building, particularly in the environment and labor areas, and a framework for additional reforms on issues such as intellectual property rights, dispute resolution, and customs that will improve El Salvador's investment climate. For sensitive sectors such as agriculture, the agreement includes generous phase-in periods to allow Salvadoran producers an opportunity to become more competitive.

U.S. support for privatization of the electrical and telecommunications markets markedly expanded opportunities for U.S. investment in the country. More than 300 U.S. companies have established either a permanent commercial presence in El Salvador or work through representative offices in the country. The U.S. Department of Commerce maintains a Country Commercial Guide for U.S. businesses seeking detailed information on business opportunities in El Salvador.

On November 29, 2006, the Government of El Salvador and the Millennium Challenge Corporation (MCC) signed a five-year, $461 million anti-poverty Compact to stimulate economic growth and reduce poverty in the country's northern region. The grant seeks to improve the lives of approximately 850,000 Salvadorans through investments in education, public services, enterprise development, and transportation infrastructure. The Compact entered into force in September 2007 and it is expected that incomes in the region will increase by 20% over the five-year term of the Compact, and by 30% within ten years of the start of the Compact.

Natural Disasters

Located on the Pacific's earthquake-prone Ring of Fire and at latitudes plagued by hurricanes, El Salvador's history is a litany of catastrophe, including the Great Hurricane of 1780 that killed 22,000 in Central America and earthquakes in 1854 and 1917 that devastated El Salvador and destroyed most of the capital city. More recently, an October 1986 earthquake killed 1,400 and seriously damaged the nation's infrastructure. In 1998, Hurricane Mitch killed 10,000 in the region, although El Salvador--lacking a Caribbean coast--suffered less than Honduras and Nicaragua. Major earthquakes in January and February of 2001 took another 1,000 lives and left thousands more homeless and jobless. El Salvador's largest volcano, Santa Ana (also known by its indigenous name Ilamatepec), erupted in October 2005, spewing sulfuric gas, ash, and rock on surrounding communities and coffee plantations, killing two people and permanently displacing 5,000. Also in October 2005, Hurricane Stan unleashed heavy rains that caused flooding throughout El Salvador. In all, the flooding caused 67 deaths and more than 50,000 people were evacuated at some point during the crisis. Damages from the storm were estimated at $355.6 million.

FOREIGN RELATIONS

El Salvador is a member of the United Nations and several of its specialized agencies, the Organization of American States (OAS), the Central American Common Market (CACM), the Central American Parliament, and the Central American Integration System (SICA). It actively participates in the Central American Security Commission (CASC), which seeks to promote regional arms control. From 2002-03, El Salvador was chair of the OAS anti-terrorism coordinating body, CICTE. El Salvador also is a member of the World Trade Organization and is pursuing regional free trade agreements. An active participant in the Summit of the Americas process, El Salvador chairs a working group on market access under the Free Trade Area of the Americas initiative. El Salvador has joined its six Central American neighbors in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA or CONCAUSA to promote sustainable economic development in the region.

El Salvador enjoys normal diplomatic and trade relations with all of its neighboring countries including Honduras, with which it has previously had territorial disputes. While the two nations continue to disagree over the status of their maritime borders in the Gulf of Fonseca, they have agreed to settle their land-border disputes with the International Court of Justice (ICJ). In September 1992, the Court awarded most of the territory in question to Honduras. In January 1998, Honduras and El Salvador signed a border demarcation treaty to implement the terms of the ICJ decree although delays continue due to technical difficulties.

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/2033.htm

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

OFFICIAL NAME

Republic of Equatorial Guinea

Geography

Location: Western Africa, bordering the Bay of Biafra. Bordering nations--Cameroon, Gabon.
Area: 28,050 sq. km; slightly smaller than Maryland.
Cities: Capital--Malabo. Other cities--Bata (also capital of Littoral province on the mainland).
Terrain: Varies. Bioko Island is volcanic, with three major peaks of 9,876 feet, 7,416 feet, and 6,885 feet. Behind the coastal plain, the mainland provinces are hilly at a level of approximately 2,000 feet, with some 4,000-foot peaks. Annobon Island is volcanic.
Climate: Tropical; always warm, humid. The weather alternates between wet and dry seasons over the course of a year.

People

Nationality: Noun--Equatorial Guinean(s), Equatoguinean(s) Adjective--Equatorial Guinean, Equatoguinean.
Population (July 2008 est.): 616,459.
Annual growth rate (2008 est.): 2.732%; (1975-2002): 2.8%.
Ethnic groups: The Fang ethnic group of the mainland constitutes the great majority of the population and dominates political life and business. The Bubi group comprises about 50,000 people living mainly in Bioko Island. The Annobonese on the island of Annobon are estimated at about 3,000 in number. The other three ethnic groups are found on the coast of Rio Muni and include the Ndowe and Kombe (about 3,000 each) and the Bujebas (about 2,000). The pygmy populations have long been integrated into the dominant Bantu-speaking cultures. Europeans number around 2,000, primarily Spanish and French. There is a thriving Lebanese community, other Arabs (primarily Egyptians), a large number of Filipinos, and a rapidly expanding Chinese presence.
Languages: Official--Spanish, French; other--pidgin English, Fang, Bubi, Ibo.
Religion: Nominally Christian and predominantly Roman Catholic; pagan practices.
Education: Primary school compulsory for ages 6-14. Attendance (2007 est.)--90%. Adult literacy (2005 est.)--87%.
Health (2008 est.): Life expectancy--61.23 years. Infant mortality rate--83.75/1,000.

Government

Type: Nominally multi-party Republic with strong domination by the executive branch.
Independence: October 12, 1968 (from Spain).
Constitution: Approved by national referendum November 17, 1991; amended January 1995.
Branches: Executive--President (Chief of State), Prime Minister, and a Council of Ministers appointed by the president. Legislative--100-member Chamber of People's Representatives (members directly elected by universal suffrage to serve five-year terms). Judicial--Supreme Tribunal.
Administrative subdivisions: Seven provinces--Annobon, Bioko Norte, Bioko Sur, Centro Sur, Kie-Ntem, Littoral, Wele-Nzas.
Political parties: The ruling party is the Partido Democratico de Guinea Ecuatorial (PDGE), formed July 30, 1987. There are 12 other recognized parties that formed in the early 1990s.
Suffrage: 18 years of age; universal adult.

Economy

GDP (2007 est.): $10.4 billion.
Real GDP growth rate (2007 est.) 9.1%.
Inflation rate (2008 est. average): 5.5%.
Unemployment rate: (2007 est.) 8%.
Natural resources: Petroleum, natural gas, timber, small, unexploited deposits of gold, manganese, and uranium.
Agriculture (2006 est.): 2.8% of GDP. Products--coffee, cocoa, rice, yams, cassava (tapioca), bananas, palm oil nuts, manioc, livestock, and timber.
Industry (2006 est.): 92.6% of GDP. Types--petroleum, natural gas, fishing, lumber.
Services (2006): 4.5% of GDP.
Trade (2007 est.): Exports--$10.03 billion: hydrocarbons (97%), timber (2%), others (1%). Imports--$3.219 billion. Major trading partners--United States, Spain, China, Canada, France, United Kingdom, Cameroon, and Norway.
Currency: Communaute Financiere Africaine (CFA) franc.

GEOGRAPHY

The Republic of Equatorial Guinea is located in west central Africa. Bioko Island lies about 40 kilometers (25 mi.) from Cameroon. Annobon Island lies about 595 kilometers (370 mi.) southwest of Bioko Island. The larger continental region of Rio Muni lies between Cameroon and Gabon on the mainland; it includes the islands of Corisco, Elobey Grande, Elobey Chico, and adjacent islets.

Bioko Island, called Fernando Po until the 1970s, is the largest island in the Gulf of Guinea--2,017 square kilometers (780 sq. mi.). It is shaped like a boot, with two large volcanic formations separated by a valley that bisects the island at its narrowest point. The 195-kilometer (120-mi.) coastline is steep and rugged in the south but lower and more accessible in the north, with excellent harbors at Malabo and Luba, and several scenic beaches between those towns.

On the continent, Rio Muni covers 26,003 square kilometers (10,040 sq. mi.). The coastal plain gives way to a succession of valleys separated by low hills and spurs of the Crystal Mountains. The Rio Benito (Mbini), which divides Rio Muni in half, is not navigable except for a 20-kilometer stretch at its estuary. Temperatures and humidity in Rio Muni are slightly lower than on Bioko Island.

Annobon Island, named for its discovery on New Year's Day 1472, is a small volcanic island covering 18 square kilometers (7 sq. mi.). The coastline is abrupt except in the north; the principal volcanic cone contains a small lake. Most of the estimated 1,900 inhabitants are fisherman specializing in traditional, small-scale tuna fishing and whaling. The climate is tropical--heavy rainfall, high humidity, and frequent seasonal changes with violent windstorms.

PEOPLE

The majority of the Equatoguinean people are of Bantu origin. The largest tribe, the Fang, is indigenous to the mainland, but substantial migration to Bioko Island has resulted in Fang dominance over the earlier Bantu inhabitants. The Fang constitute 80% of the population and are themselves divided into 67 clans. Those in the northern part of Rio Muni speak Fang-Ntumu, while those in the south speak Fang-Okah; the two dialects are mutually unintelligible. The Bubi, who constitute 15% of the population, are indigenous to Bioko Island. In addition, there are coastal tribes, sometimes referred to as "Playeros," consisting of Ndowes, Bujebas, Balengues, and Bengas on the mainland and small islands, and "Fernandinos," a Creole community, on Bioko. Together, these groups comprise 5% of the population. There are also foreigners from neighboring Cameroon, Nigeria, and Gabon.

Spanish and French are both official languages, though use of Spanish predominates. The Roman Catholic Church has greatly influenced both religion and education.

Equatoguineans tend to have both a Spanish first name and an African first and last name. When written, the Spanish and African first names are followed by the father's first name (which becomes the principal surname) and the mother's first name. Thus people may have up to four names, with a different surname for each generation.

HISTORY

The first inhabitants of the region that is now Equatorial Guinea are believed to have been Pygmies, of whom only isolated pockets remain in northern Rio Muni. Bantu migrations between the 17th and 19th centuries brought the coastal tribes and later the Fang. Elements of the latter may have generated the Bubi, who immigrated to Bioko from Cameroon and Rio Muni in several waves and succeeded former Neolithic populations. The Annobon population, native to Angola, was introduced by the Portuguese via Sao Tome.

The Portuguese explorer, Fernando Po (Fernao do Poo), seeking a route to India, is credited with having discovered the island of Bioko in 1471. He called it Formosa ("pretty flower"), but it quickly took on the name of its European discoverer. The Portuguese retained control until 1778, when the island, adjacent islets, and commercial rights to the mainland between the Niger and Ogoue Rivers were ceded to Spain in exchange for territory in South America (Treaty of Pardo). From 1827 to 1843, Britain established a base on the island to combat the slave trade. The Treaty of Paris settled conflicting claims to the mainland in 1900, and the mainland territories were united administratively under Spanish rule.

Spain lacked the wealth and the interest to develop an extensive economic infrastructure in what was commonly known as Spanish Guinea during the first half of this century. However, through a paternalistic system, particularly on Bioko Island, Spain developed large cacao plantations for which thousands of Nigerian workers were imported as laborers. At independence in 1968, largely as a result of this system, Equatorial Guinea had one of the highest per capita incomes in Africa. The Spanish also helped Equatorial Guinea achieve one of the continent's highest literacy rates and developed a good network of health care facilities.

In 1959, the Spanish territory of the Gulf of Guinea was established with status similar to the provinces of metropolitan Spain. As the Spanish Equatorial Region, a governor general ruled it exercising military and civilian powers. The first local elections were held in 1959, and the first Equatoguinean representatives were seated in the Spanish parliament. Under the Basic Law of December 1963, limited autonomy was authorized under a joint legislative body for the territory's two provinces. The name of the country was changed to Equatorial Guinea. Although Spain's commissioner general had extensive powers, the Equatorial Guinean General Assembly had considerable initiative in formulating laws and regulations.

In March 1968, under pressure from Equatoguinean nationalists and the United Nations, Spain announced that it would grant independence to Equatorial Guinea. A constitutional convention produced an electoral law and draft constitution. In the presence of a UN observer team, a referendum was held on August 11, 1968, and 63% of the electorate voted in favor of the constitution, which provided for a government with a General Assembly and a Supreme Court with judges appointed by the president.

In September 1968, Francisco Macias Nguema was elected first president of Equatorial Guinea, and independence was granted in October. In July 1970, Macias created a single-party state and by May 1971, key portions of the constitution were abrogated. In 1972 Macias took complete control of the government and assumed the title of President-for-Life. The Macias regime was characterized by abandonment of all government functions except internal security, which was accomplished by terror; this led to the death or exile of up to one-third of the country's population. Due to pilferage, ignorance, and neglect, the country's infrastructure--electrical, water, road, transportation, and health--fell into ruin. Religion was repressed, and education ceased. The private and public sectors of the economy were devastated. Nigerian contract laborers on Bioko, estimated to have been 60,000, left en masse in early 1976. The economy collapsed, and skilled citizens and foreigners left.

On August 3, 1979 a lieutenant colonel in charge of military police, Teodoro Obiang Nguema Mbasogo, led a successful coup d'etat; Macias was arrested, tried, and executed. Obiang assumed the Presidency in October 1979. Obiang initially ruled Equatorial Guinea with the assistance of a Supreme Military Council. A new constitution, drafted in 1982 with the help of the United Nations Commission on Human Rights, came into effect after a popular vote on August 15, 1982; the Council was abolished, and Obiang remained in the presidency for a 7-year term. He was reelected in 1989. In February 1996, he again won reelection with 98% of the vote; several opponents withdrew from the race, however, and international observers criticized the election. Subsequently, Obiang named a new cabinet, which included some opposition figures in minor portfolios.

Despite the formal ending of one-party rule in 1991, President Obiang and a circle of advisors (drawn largely from his own family and ethnic group) maintain real authority. The president names and dismisses cabinet members and judges, ratifies treaties, leads the armed forces, and has considerable authority in other areas. He appoints the governors of Equatorial Guinea's seven provinces. The opposition had few electoral successes in the 1990s. By early 2000, President Obiang's Democratic Party of Equatorial Guinea (PDGE) party fully dominated government at all levels. In December 2002, President Obiang won a new seven-year mandate with 97% of the vote. Reportedly, 95% of eligible voters voted in this election, although many observers noted numerous irregularities.

GOVERNMENT

The 1982 constitution gives the President extensive powers, including naming and dismissing members of the cabinet, making laws by decree, dissolving the Chamber of Representatives, negotiating and ratifying treaties and calling legislative elections. The President retains his role as commander in chief of the armed forces and maintains close supervision of military activity. In June 2004, the President reorganized the cabinet and created two new positions: Minister of National Security and Director of National Forces. The Prime Minister is appointed by the President and operates under powers designated by the President. The Prime Minister coordinates government activities.

The Chamber of Representatives is comprised of 100 members elected by direct suffrage for 5-year terms. In practice, the Chamber has not demonstrated independence, and it rarely acts without presidential approval or direction. National assembly elections were held in May 2008; 99 of the 100 seats went to the PDGE.

The President appoints the governors of the seven provinces. Each province is divided administratively into districts and municipalities. The internal administrative system falls under the Ministry of Interior and Territorial Administration; several other ministries are represented at the provincial and district levels.

The judicial system follows similar administrative levels. At the top are the President and his judicial advisors (the Supreme Court). In descending rank are the appeals courts, chief judges for the divisions, and local magistrates. Tribal laws and customs are honored in the formal court system when not in conflict with national law. The current court system, which often uses customary law, is a combination of traditional, civil, and military justice, and it operates in an ad hoc manner for lack of established procedures and experienced judicial personnel.

The other official branch of the government is the State Council. The State Council's main function is to serve as caretaker in case of death or physical incapacity of the President. It comprises the following ex officio members: the President of the Republic, the Prime Minister, the Minister of Defense, the President of the national assembly and the Chairman of the Social and Economic Council.

Although the abuses and atrocities that characterized the Macias years have been eliminated, the government continues to be dominated by the presidency. Religious freedom is tolerated.

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