ECONOMY

Oil and gas exports have increased substantially and will drive the economy for years to come. Real GDP growth was 9.1% in 2007 (est.). Per capita income rose from about $590 in 1998 to $2,000 in 2000, $5,300 in 2004, and approximately $10,000 in 2007. The energy export sector is responsible for this rapid growth, and recorded even bigger gains in 2007 with a new, state-of-the-art liquefied natural gas (LNG) production and shipping facility coming on line in 2007. Oil production increased from 81,000 barrels per day (bbl/d) in 1998 to approximately 500,000 bbl/d equivalent by the end of 2007. Exploration efforts continue in search of further potential offshore concessions, and promising discoveries were announced in late 2007.

Equatorial Guinea has other resources, including its tropical climate, fertile soils, rich expanses of water, deepwater ports, and reserves of unskilled labor. However, its hydrocarbon riches dwarf all other economic activity. The government is actively seeking to diversify the economy by encouraging agriculture, tourism, and fishing. The ongoing construction boom is also enhancing related skills. The once-significant economic mainstays of the colonial era--cocoa, coffee, and timber--are also receiving attention, though they remain miniscule in comparison to the energy sector.

Equatorial Guinea's economic policies comprise an open investment regime. Qualitative restrictions on imports, non-tariff protection, and many import licensing requirements were lifted in 1992 when the government adopted a public investment program endorsed by the World Bank. The Government of Equatorial Guinea has sold some state enterprises. It is attempting to create a more favorable investment climate, and its investment code contains numerous incentives for job creation, training, promotion of nontraditional exports, support of development projects and indigenous capital participation, freedom for repatriation of profits, exemption from certain taxes and capital, and other benefits. Trade regulations have been further liberalized since Central African Economic and Monetary Union (CEMAC) reform codes in 1994. This included elimination of quota restrictions and reductions in the range and amounts of tariffs. The CEMAC countries agreed to the introduction of a value added tax (VAT) in 1999.

While business laws promote a liberalized economy, the business climate remains difficult. Application of the laws remains selective. Corruption among officials is widespread, and many business deals are concluded under nontransparent circumstances. A wage law now regulates separate wage levels for the petroleum, private, and government sector.

There is little industry in the country, and the local market for industrial products is small. The government seeks to expand the role of free enterprise and to promote foreign investment but has had little success in creating an atmosphere conducive to investor interest.

The Equatoguinean budget has grown enormously in the past 5 years as royalties and taxes on foreign company oil and gas production have provided new resources to a once poor government. The 2007 government revenue was about $7 billion. Oil revenues account for more than 81% of government revenue. Value Added Tax and trade taxes are other large revenue sources for the government.

The Equatoguinean Government has undertaken a number of reforms since 1991 to reduce its predominant role in the economy and promote private sector development. Its role is a diminishing one, although many government interactions with the private sector are at times capricious. Beginning in early 1997, the government initiated efforts to attract significant private sector involvement through cooperative efforts with the Corporate Council on Africa visit and numerous ministerial efforts. In 1998, the government privatized distribution of petroleum products. There are now Total and Mobil stations in the country. The maritime border with Nigeria was settled in 2000, allowing Equatorial Guinea to continue exploitation of its oil fields. In October 2002, the government launched a national oil company, GEPetrol, under the Ministry of Mines and Hydrocarbons. The government is anxious for greater U.S. investment, and the aforementioned new Marathon LNG production refinery was the biggest new step in that direction for 2007. Much more is on the way, as U.S. hydrocarbon producers have announced $7 billion in new investments, starting in 2008. In addition, China has recently won exploration and drilling rights in a new offshore block, and will begin operations soon.

The government has expressed interest in privatizing the outmoded electricity utility. Several ports and a new terminal were built to accommodate the needs of the oil industry. A French company operates cellular telephone service in cooperation with a state enterprise, though the sector was opened to competition in 2007.

Equatorial Guinea's balance-of-payments situation has improved substantially since the mid-1990s because of new oil and gas production and favorable world energy prices. Exports totaled $8.1 billion in 2006. Crude oil exports now annually accounts for more than 94% of export earnings. Timber exports, by contrast, now represent only about 2% of export revenues. Imports into Equatorial Guinea also are growing very quickly. Imports totaled $4.3 billion in 2006.

Equatorial Guinea in the 1980s and 1990s received foreign assistance from numerous bilateral and multilateral donors, including European countries, the United States, and the World Bank. Many of these aid programs have ceased altogether or have diminished. Spain, France, and the European Union continue to provide some project assistance, as do China and Cuba. The government also has discussed working with World Bank assistance to develop government administrative capacity.

Equatorial Guinea operated under an International Monetary Fund-negotiated Enhanced Structural Adjustment Facility (ESAF) until 1996. Since then, there have been no formal agreements or arrangements. However, since 1996, the IMF has held regular held Article IV consultations (periodic country evaluations). After the 2003 consultations, IMF directors stressed the need for further improvements in governance and transparency, the attainment of a sustainable fiscal position, implementation of structural reforms to bolster the non-oil sector, the development of a transparent framework for saving and managing part of the country's oil wealth, and a comprehensive effort to reduce poverty. In 2007, the government undertook a multi-million dollar Social Development Fund project, which engaged U.S. Agency for International Development (USAID) expertise and regulation, to improve the quality of life and raise standards in education and health care.

Trade and Investment

With investments estimated at over $12 billion, the United States is the largest cumulative bilateral foreign investor in Equatorial Guinea. In 2003, 74% of U.S. exports to Equatorial Guinea consisted of energy sector-related transportation and machinery equipment. The United States' main import from Equatorial Guinea is petroleum (99% of imports in 2003). In 1999, the European Union (EU) imported $281.7 million in goods from Equatorial Guinea, 89% of which was petroleum and 7% timber. The European Union exported $104 million to Equatorial Guinea. Approximately 20% of these exports were oil and gas-related, and the remaining 80% ranged from agricultural products to clothing to used cars.

Infrastructure

Infrastructure has improved dramatically in the last few years. Numerous, large-scale infrastructure investments have recently been completed or are underway. Surface transport options are increasing as the government has invested heavily in road pavement projects. In 2002, the African Development Bank and the European Union co-financed two projects to improve the paved roads from Malabo to Luba and Riaba; and to build an interstate road network to link Equatorial Guinea to Cameroon and Gabon. A Chinese construction company is completing a project to link Mongomo to Bata, both cities on the mainland. In November 2003, the government announced an ambitious ten-project program to upgrade the country's road network and improve the airport facilities at Bata, the country's second city (on the mainland). These projects have since been completed and additional airport expansion and new-city corridors are now under construction.

Equatorial Guinea's electricity sector is owned and operated by the state-run monopoly, SEGESA. Equatorial Guinea's electricity generating capacity is now more than adequate to meet demand on both the continent and the island of Bioko, although the power supply is unreliable. The country's distribution network remains incapable of delivering reliable electricity to end users, due to aging equipment and poor management, as demonstrated by regular blackouts in Malabo. As a result, small diesel generators are widely used as a back-up power source. A project to modernize the grid is underway, with scheduled completion by 2010. Equatorial Guinea is estimated to have 2,600 megawatts (MW) of hydropower potential.

Energy Developments

Equatorial Guinea is now the third-largest producer of crude oil in sub-Saharan Africa, after Nigeria and Angola. Equatorial Guinea's oil reserves are located mainly in the hydrocarbon-rich Gulf of Guinea, containing estimated probable reserves as high as 10% of the world total. As a result, large amounts of foreign investment primarily by U.S. companies have poured into the country's oil sector in recent years. Equatorial Guinea's total proven oil reserves are estimated at 1.1 billion barrels.

Oil production from Equatorial Guinea is expanding rapidly, averaging approximately 400,000 bbl/d by the end of 2007. In October 2004, the government capped production levels at 350,000 bbl/d to extend the life of the country's petroleum reserves, but lifted the cap the next year to allow expansion. With the addition of LNG production that came on line in 2007, total hydrocarbon production is now near 500,000 bbl/d equivalent. Three fields--Zafiro, Ceiba, and Alba--currently account for the majority of the country's oil output.

In 2001, GEPetrol became Equatorial Guinea's national oil company. It was established as the primary state-run institution responsible for the country's downstream oil sector activities. However, since 2001 its primary focus has become managing the government's interest stakes in various Production Sharing Contracts (PSCs) with foreign oil companies. GEPetrol also partners with foreign firms to undertake exploration projects and has a say in the country's environmental policy implementation. In its recent block-licensing negotiations, Equatorial Guinea has pursued increases in the government's stake in new PSCs. In early 2008 it announced a $2.2 billion purchase of U.S.-based Devon Energy's stake in the country's oil fields, increasing its participation to 20% in the Zafiro field operation.

FOREIGN RELATIONS

A transitional agreement, signed in October 1968, implemented a Spanish pre-independence decision to assist Equatorial Guinea and provided for the temporary maintenance of Spanish forces there. A dispute with President Macias in 1969 led to a request that all Spanish troops immediately depart, and a large number of civilians left at the same time. Diplomatic relations between the two countries were never broken but were suspended by Spain in March 1977 in the wake of renewed disputes. After Macias' fall in 1979, President Obiang asked for Spanish assistance, and since then, Spain has regained its place of influence in Equatorial Guinea. The two countries signed permanent agreements for economic and technical cooperation, private concessions, and trade relations. Spain maintained a bilateral assistance program in Equatorial Guinea. Most Equatoguinean opposition elements (including a purported government-in-exile) are based in Spain to the annoyance of the Equatoguinean Government. Relations between the two countries grew difficult after the March 2004 coup attempt due to their hosting opposition figure Severo Moto and their belief that Spain had foreknowledge of the coup. However, the Spanish Foreign Minister, Miguel Angel Moratinos, visited Equatorial Guinea in March 2005, and President Obiang visited Spain in 2007.

Equatorial Guinea has had generally cordial relations with its neighbors. It is a member of the Central African Economic and Monetary Union (CEMAC), which includes Cameroon, Central African Republic, Chad, Congo/Brazzaville, and Gabon. Equatorial Guinea is also part of the central Africa CFA franc zone, and the Cameroon-based Bank of Central African States coordinates monetary policy. The Bank of France guarantees the CFA franc, and French technical advisers work in the finance and planning ministries. France, Spain, Cuba, and China have participated in infrastructure and technical development projects.

Equatorial Guinea had a minor border dispute with Cameroon that was resolved by the International Court of Justice in 2002. The Corisco border dispute with Gabon was resolved by an agreement signed with the help of UN mediation in January 2004, but the small island of Mbane and potentially oil-rich waters surrounding it remain contested, and the case was submitted to the International Court of Justice in 2006. United Nations Secretary General Ban Ki-Moon opened up mediation efforts on June 10, 2008 to facilitate a settlement between the two countries over the disputed island. The majority Fang ethnic group of mainland Equatorial Guinea extends both north and south into the forests of Cameroon and Gabon. Cameroon exports some food products to Equatorial Guinea and imports oil from Equatorial Guinea for its refinery at nearby Limbe. The development of the oil industry by U.S.-based companies and the lack of a well-trained work force have provided motivation for an influx of English-speaking workers (legal and illegal) from Cameroon, Nigeria, and Ghana. (However, relations with the Nigerian Government have lately been cordial as the two countries delineated their offshore borders to facilitate development of nearby gas fields.) Roundups and expulsion of foreigners following the March 2004 coup attempt revived tensions between these neighbors. A brazen daylight attack on two banks in Bata by two boatloads of armed bandits in December 2007 was presumed to originate in the Niger Delta or neighboring Cameroon, temporarily leading to heightened tensions.

The country is using its oil wealth to expand its overseas presence, establishing diplomatic missions in over 30 countries around the world. It has also become more active in the CEMAC, using the leverage of its growing reserves to gain reforms.

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

State of Eritrea

Geography

Area: 125,000 sq. km. (48,000 sq. mi.); about the size of Pennsylvania.
Cities: Capital--Asmara (est. pop. 435,000). Other cities--Keren (57,000); Assab (28,000); Massawa (25,000); Afabet (25,000); Tessenie (25,000); Mendefera (25,000); Dekemhare (20,000); Adekeieh (15,000); Barentu (15,000); Ghinda (15,000).
Terrain: Central highlands straddle escarpment associated with Rift Valley, dry coastal plains, and western lowlands.
Climate: Temperate in the highlands; hot in the lowlands.

People

Nationality: Noun and adjective--Eritrean(s).
Population (2004 est.): 3.6 million.
Annual growth rate: 2.5%.
Ethnic groups: Tigrinya 50%, Tigre 31.4%, Saho 5%, Afar 5%, Beja 2.5%, Bilen 2.1%, Kunama 2%, Nara 1.5%, and Rashaida 0.5%.
Religions: Christian 50%, mostly Orthodox, Muslim 48%, indigenous beliefs 2%.
Education: Years compulsory--none. Attendance--elementary (net 2002) 45.2%; secondary (net 2002) 21.2%.
Health: Infant mortality rate (2003)--45/1,000. Life expectancy--52 yrs.
Work force: Agriculture--80%. Industry and commerce--20%.

Government

Type: Transitional government.
Independence: Eritrea officially celebrated its independence on May 24, 1993.
Constitution: Ratified May 24, 1997, but not yet implemented.
Branches: Executive--president, cabinet. Legislative--Transitional National Assembly (does not meet). Judicial--Supreme Court.
Administrative subdivisions: Six administrative regions.
Political party: People's Front for Democracy and Justice (name adopted by the Eritrean People's Liberation Front when it established itself as a political party).
Suffrage: Universal, age 18 and above (although no national elections have been held).
Central government budget (2005 est.): $485 million.
Defense (2004 est.): $185 million.

Economy

Real GDP (2004 est.): $700 million.
Annual growth rate (2005 est.): 4.8%.
Per capita income: $900 (on a purchasing power parity basis); per capita GNI (World Bank Atlas method), 2004 est. $180.
Avg. inflation rate (2004 est.): 25%.
Mineral resources: Gold, copper, iron ore, potash, oil.
Agriculture (12% of GDP in 2004): Products--millet, sorghum, teff, wheat, barley, flax, cotton, papayas, citrus fruits, bananas, beans and lentils, potatoes, vegetables, fish, dairy products, meat, and skins. Cultivated land--10% of arable land.
Industry (25% of GDP in 2004): Types--processed food and dairy products, alcoholic beverages, leather goods, textiles, chemicals, cement and other construction materials, salt, paper, and matches.
Trade: Exports (2005 est.)--$12 million: skins, meat, live sheep and cattle, gum arabic. Major markets--Middle East (Saudi Arabia, Yemen), Europe (Italy), Djibouti, and Sudan. Imports (2005 est.)--$474 million: food, military materiel, and fuel, manufactured goods, machinery and transportation equipment. Major suppliers--U.A.E., Saudi Arabia, Italy, Germany, Belgium.

GEOGRAPHY

Eritrea is located in the Horn of Africa and is bordered on the northeast and east by the Red Sea, on the west and northwest by Sudan, on the south by Ethiopia, and on the southeast by Djibouti. The country has a high central plateau that varies from 1,800 to 3,000 meters (6,000-10,000 ft.) above sea level. A coastal plain, western lowlands, and some 300 islands comprise the remainder of Eritrea's landmass. Eritrea has no year-round rivers.

The climate is temperate in the mountains and hot in the lowlands. Asmara, the capital, is about 2,300 meters (7,500 ft.) above sea level. Maximum temperature is 26o C (80o F). The weather is usually sunny and dry, with the short or belg rains occurring February-April and the big or meher rains beginning in late June and ending in mid-September.

PEOPLE

Eritrea's population comprises nine ethnic groups, most of which speak Semitic or Cushitic languages. The Tigrinya and Tigre make up four-fifths of the population and speak different, but related and somewhat mutually intelligible, Semitic languages. In general, most of the Christians live in the highlands, while Muslims and adherents of traditional beliefs live in lowland regions. Tigrinya and Arabic are the most frequently used languages for commercial and official transactions. In urban areas, English is widely spoken and is the language used for secondary and university education.

HISTORY

Prior to Italian colonization in 1885, what is now Eritrea had been ruled by the various local or international powers that successively dominated the Red Sea region. In 1896, the Italians used Eritrea as a springboard for their disastrous attempt to conquer Ethiopia. Eritrea was placed under British military administration after the Italian surrender in World War II. In 1952, a UN resolution federating Eritrea with Ethiopia went into effect. The resolution ignored Eritrean pleas for independence but guaranteed Eritreans some democratic rights and a measure of autonomy. Almost immediately after the federation went into effect, however, these rights began to be abridged or violated.

In 1962, Emperor Haile Sellassie unilaterally dissolved the Eritrean parliament and annexed the country, sparking the Eritrean fight for independence from Ethiopia that continued after Haile Sellassie was ousted in a coup in 1974. The new Ethiopian Government, called the Derg, was a Marxist military junta led by Ethiopian strongman Mengistu Haile Miriam.

During the 1960s, the Eritrean Liberation Front (ELF) led the Eritrean independence struggle. In 1970, some members of the group broke away to form the Eritrean People's Liberation Front (EPLF). By the late 1970s, the EPLF had become the dominant armed Eritrean group fighting against the Ethiopian Government, with Isaias Afwerki as its leader. The EPLF used material captured from the Ethiopian Army to fight against the government.

By 1977, the EPLF was poised to drive the Ethiopians out of Eritrea. That same year, however, a massive airlift of Soviet arms to Ethiopia enabled the Ethiopian Army to regain the initiative and forced the EPLF to retreat to the bush. Between 1978 and 1986, the Derg launched eight major offensives against the independence movement--all of which failed. In 1988, the EPLF captured Afabet, headquarters of the Ethiopian Army in northeastern Eritrea, prompting the Ethiopian Army to withdraw from its garrisons in Eritrea's western lowlands. EPLF fighters then moved into position around Keren, Eritrea's second-largest city. Meanwhile, other dissident movements were making headway throughout Ethiopia. At the end of the 1980s, the Soviet Union informed Mengistu that it would not be renewing its defense and cooperation agreement. With the withdrawal of Soviet support and supplies, the Ethiopian Army's morale plummeted, and the EPLF--along with other Ethiopian rebel forces--advanced on Ethiopian positions.

The United States played a facilitative role in the peace talks in Washington during the months leading up to the May 1991 fall of the Mengistu regime. In mid-May, Mengistu resigned as head of the Ethiopian Government and went into exile in Zimbabwe, leaving a caretaker government in Addis Ababa. Later that month, the United States chaired talks in London to formalize the end of the war. The four major combatant groups, including the EPLF, attended these talks.

Having defeated the Ethiopian forces in Eritrea, EPLF troops took control of their homeland. In May 1991, the EPLF established the Provisional Government of Eritrea (PGE) to administer Eritrean affairs until a referendum could be held on independence and a permanent government established. EPLF leader Isaias became the head of the PGE, and the EPLF Central Committee served as its legislative body.

A high-level U.S. delegation was present in Addis Ababa for the July 1-5, 1991 conference that established a transitional government in Ethiopia. The EPLF attended the July conference as an observer and held talks with the new transitional government regarding Eritrea's relationship to Ethiopia. The outcome of those talks was an agreement in which the Ethiopians recognized the right of the Eritreans to hold a referendum on independence.

Although some EPLF cadres at one time espoused a Marxist ideology, Soviet assistance for Mengistu limited the level of Eritrean interest in seeking Soviet support. The fall of communist regimes in the former Soviet Union and the Eastern Bloc convinced them it was a failed system. The EPLF (and later its successor, the PFDJ) expressed its commitment to establishing a democratic form of government and a free-market economy in Eritrea. The United States agreed to provide assistance to both Ethiopia and Eritrea, conditional on continued progress toward democracy and human rights.

On April 23-25, 1993, Eritreans voted overwhelmingly for independence from Ethiopia in a UN-monitored free and fair referendum. The Eritrean authorities declared Eritrea an independent state on April 27, and Eritrea officially celebrated its independence on May 24, 1993.

GOVERNMENT AND POLITICAL CONDITIONS

Eritrea's Government faced formidable challenges following independence. With no constitution, no judicial system, and an education system in shambles, the Eritrean Government was required to build institutions of government from scratch. Currently, the Government of Eritrea exercises strict control of political, social, and economic systems, with nearly no civil liberties allowed.

On May 19, 1993, the PGE issued a proclamation regarding the reorganization of the government. The government was reorganized, and after a national, freely contested election, the Transitional National Assembly, which chose Isaias as President of the PGE, was expanded to include both EPLF and non-EPLF members. The EPLF established itself as a political party, the People's Front for Democracy and Justice (PFDJ). The PGE declared that during a 4-year transition period it would draft and ratify a constitution, draft a law on political parties, draft a press law, and carry out elections for a constitutional government.

In March 1994, the PGE created a constitutional commission charged with drafting a constitution flexible enough to meet the current needs of a population suffering from 30 years of civil war as well as those of the future, when prospective stability and prosperity would change the political landscape. Commission members traveled throughout the country and to Eritrean communities abroad holding meetings to explain constitutional options to the people and to solicit their input. A new constitution was ratified in 1997 but has not been implemented, and general elections have not been held. The government had announced that Transitional National Assembly elections would take place in December 2001, but those were postponed and new elections have not been rescheduled.

The present government structure includes legislative, executive, and judicial bodies. The legislature, the Transitional National Assembly, comprises 75 members of the PFDJ and 75 additional popularly elected members. The Transitional National Assembly is the highest legal power in the government until the establishment of a democratic, constitutional government. The legislature sets the internal and external policies of the government, regulates implementation of those policies, approves the budget, and elects the president of the country. The president nominates individuals to head the various ministries, authorities, commissions, and offices, and the Transitional National Assembly ratifies those nominations. The cabinet is the country's executive branch. It is composed of 17 ministers and chaired by the president. It implements policies, regulations, and laws and is accountable to the Transitional National Assembly. The ministries are agriculture; defense; education; energy and mines; finance; fisheries; foreign affairs; health; information; labor and human welfare; land, water, and environment; local governments; justice; public works; trade and industry; transportation and communication; and tourism.

Nominally, the judiciary operates independently of both the legislative and executive bodies, with a court system that extends from the village through to the district, provincial, and national levels. However, in practice, the independence of the judiciary is limited. In 2001, the president of the High Court was detained after criticizing the government for judicial interference.

In September 2001, after several months in which a number of prominent PFDJ party members had gone public with a series of grievances against the government and in which they called for implementation of the constitution and the holding of elections, the government instituted a crackdown. Eleven prominent dissidents, members of what had come to be known as the Group of 15, were arrested and held without charge in an unknown location. At the same time, the government shut down the independent press and arrested its reporters and editors, holding them incommunicado and without charge. In subsequent weeks, the government arrested other individuals, including two Eritrean employees of the U.S. Embassy. All of these individuals remain held without charge and none are allowed visitors.

ECONOMY

The Eritrean economy is largely based on agriculture, which employs 80% of the population but currently may contribute as little as 12% to GDP. Agricultural exports include cotton, fruits and vegetables, hides, and meat, but farmers are largely dependent on rain-fed agriculture, and growth in this and other sectors is hampered by lack of a dependable water supply. Worker remittances and other private transfers from abroad currently contribute about 32% of GDP.

While in the past the Government of Eritrea stated that it was committed to a market economy and privatization, the government and the ruling PFDJ party maintain complete control of the economy. The government has imposed an arbitrary and complex set of regulatory requirements that discourage investment from both foreign and domestic sources, and it often reclaims successful private enterprises and property.

After independence, Eritrea had established a growing and healthy economy. But the 1998-2000 war with Ethiopia had a major negative impact on the economy and discouraged investment. Eritrea lost many valuable economic assets in particular during the last round of fighting in May-June 2000, when a significant portion of its territory in the agriculturally important west and south was occupied by Ethiopia. As a result of this last round of fighting, more than one million Eritreans were displaced, though by 2007 nearly all had been resettled. According to World Bank estimates, Eritreans also lost livestock worth some $225 million, and 55,000 homes worth $41 million were destroyed during the war. Damage to public buildings, including hospitals, is estimated at $24 million. Much of the transportation and communication infrastructure is outmoded and deteriorating, although a large volume of intercity road-building activity is currently underway. The government sought international assistance for various development projects and mobilized young Eritreans serving in the national service to repair crumbling roads and dams. However, in 2005, the government asked the U.S. Agency for International Development (USAID) to cease operations in Eritrea.

According to the International Monetary Fund (IMF), post-border war recovery was impaired by four consecutive years of recurrent drought that have reduced the already low domestic food production capacity. The government reports that harvests have improved, but it provides no data to support these claims. Eritrea currently suffers from large structural fiscal deficits caused by high levels of spending on defense, which have resulted in the stock of debt rising to unsustainable levels. Exports have collapsed due to strict controls on foreign currencies and trade, as well as a closed border with Ethiopia, which was the major trading partner for Eritrea prior to the war. In 2006, Eritrea normalized relations with Sudan and is beginning to open the border to trade between the two countries. Large and persistent transfers from Eritreans living abroad offer significant support to the economy.

The port in Massawa has been rehabilitated and is being developed. In addition, the government has begun on a limited basis to export fish and sea cucumbers from the Red Sea to markets in Europe and Asia. A newly constructed airport in Massawa capable of handling jets could facilitate the export of high-value perishable seafood.

DEFENSE

During the war for independence, the EPLF fighting force grew to almost 110,000 fighters, about 3% of the total population of Eritrea. In 1993, Eritrea embarked on a phased program to demobilize 50%-60% of the army, which had by then shrunk to about 95,000. During the first phase of demobilization in 1993, some 26,000 soldiers--most of who enlisted after 1990--were demobilized. The second phase of demobilization, which occurred the following year, demobilized more than 17,000 soldiers who had joined the EPLF before 1990 and in many cases had seen considerable combat experience. Many of these fighters had spent their entire adult lives in the EPLF and lacked the social, personal, and vocational skills to become competitive in the work place. As a result, they received higher compensation, more intensive training, and more psychological counseling than the first group. Special attention was given to women fighters, who made up some 30% of the EPLF's combat troops. By 1998, the army had shrunk to 47,000.

The moves to demobilize were abruptly reversed after the outbreak of war with Ethiopia over the contested border. During the 1998-2000 war, which is estimated to have resulted in well over 100,000 casualties on the two sides, Eritrea's armed forces expanded to close to 300,000 members, almost 10% of the population. This imposed a huge economic burden on the country. The International Monetary Fund (IMF) estimates that the economy shrank by more than 8% in 2000, although it rebounded somewhat in 2001. The war ended with a cessation of hostilities agreement in June 2000, followed by a peace agreement signed in December of the same year. A UN peacekeeping mission, the UN Mission in Ethiopia and Eritrea (UNMEE), was established and monitors a 25-kilometer-wide Temporary Security Zone separating the two sides. Per the terms of the cessation of hostilities agreement, two commissions were established: one to delimit and demarcate the border and the other to weigh compensation claims by both sides. The Eritrea-Ethiopia Boundary Commission announced its decision in April 2002. Demarcation was expected to begin in 2003, but despite attempts to progress, it has been delayed by a stalemate between Ethiopia and Eritrea.

The government has been slow to demobilize its military after the most recent conflict, although it formulated an ambitious demobilization plan with the participation of the World Bank. A pilot demobilization program involving 5,000 soldiers began in November 2001 and was to be followed immediately thereafter by a first phase in which some 65,000 soldiers would be demobilized. This was delayed repeatedly. In 2003, the government began to demobilize some of those slated for the first phase; however, the government maintains a "national service" program, which includes most of the male population between 18-40 and the female population between 18-27. The program essentially serves as a reserve force and can be mobilized quickly. There are estimates that one in twenty Eritreans actively serve in the military.

Presently, the U.S. has no military-to-military cooperation with Eritrea.

FOREIGN RELATIONS

Eritrea is a member of the Common Market of Eastern and Southern Africa (COMESA) and the African Union (AU) but does participate actively in the AU. Eritrea maintains diplomatic relations with the United States, Italy, and several other European nations, including the United Kingdom, Germany, Norway, and the Netherlands. Relations with these countries became strained as a result of the 2001 government crackdown against political dissidents and others, the closure of the independent press, and limits on civil liberties.

Eritrea's relations with its neighbors other than Djibouti also are somewhat strained. Although a territorial dispute with Yemen over the Haynish Islands was settled by international arbitration, tensions over traditional fishing rights with Yemen resurfaced in 2002. The relationship to date remains cordial. Relations with Sudan also were colored by occasional incidents involving the extremist group, Eritrean Islamic Jihad (EIJ)--which the Eritrean Government believes is supported by the National Islamic Front government in Khartoum--and by continued Eritrean support for the Sudanese opposition coalition, the National Democratic Alliance; however, Eritrea normalized relations with Sudan in 2006.

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/2854.htm

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

OFFICIAL NAME

Republic of Estonia

Geography

Area: 45,226 sq. km. (17,462 sq. mi.); slightly smaller than New Hampshire and Vermont combined.
Cities: Capital--Tallinn (pop. 396,000), situated in the north of the country, on the Gulf of Finland. Other cities--university town of Tartu (101,500); the primarily Russian-speaking industrial towns of Narva (67,100) and Kohtla-Järve (46,000) in the north-east of Estonia; Pärnu on the western coast (44,400) and Viljandi in the rural south (20,509). The last population census was held in 2000.
Terrain: Mostly flat, with some undulating terrain in the east and southeast, average elevation 50 m. Steep limestone banks and 1,520 islands mark the coastline. Land use--12.05% arable land, 47.4% forest and woodland, 22% swamps and bogs, 18.55% other. Coastal waters are somewhat polluted.
Climate: Temperate, with four seasons. Annual precipitation averages 50-75 cm.

People

Nationality: Noun and adjective--Estonian(s).
Population (2007): 1.342 million.
Annual growth rate (2006): -1.82%. Birth rate (2006)--11.07/1,000. Death rate (2006)--12.89/1,000. Net migration (2006)--3.2 migrant(s)/1,000 population. Density--31/sq. km. Urban dwellers--70%.
Ethnic groups: Estonians 68.6%, Russians 25.6%, Ukrainians 2.1%, Belarusians 1.2%, Finns 0.8%, other 1.7%.
Religions: Evangelical Lutheran; the Estonian Apostolic Orthodox, subordinated to Constantinople; the Estonian Orthodox, subordinated to the Moscow Patriarchate; Baptist.
Languages (2000 census): Estonian (official) 67.3%, Russian 29.7%, other 2.3%, unknown 0.7%.
Education: Years compulsory--9. Attendance--218,600 students at 550 schools, plus 50,800 university students. Literacy--99.8%.
Health: Infant mortality rate--4.4 deaths/1,000 live births. Life expectancy--67.3 yrs. men, 78 yrs. women.
Work force: 659,600.

Government

Type: Parliamentary democracy.
Constitution: On June 28, 1992 Estonia ratified its constitution based on its 1938 model, offering legal continuity to the Republic of Estonia prior to Soviet occupation.
Branches: Executive--president (head of state), elected indirectly every 5 years; prime minister (head of government). Legislative--Riigikogu (Parliament--101 members, 4-year term). Judicial--Supreme Court.
Administrative regions: 15 counties, 33 towns, and 194 municipalities (local elections data, 2005).
Political parties: Six parties are presently represented in the parliament: the Estonian Center Party; Estonian Reform Party; Pro Patria-Res Publica Union; Estonian People's Union; Estonian Social Democratic Party; and the Estonian Greens. Other parties include: the Russian Party of Estonia; Estonian Independence Party; Estonian Christian Democratic Party; Constitution Party; Estonian Left Party.
Suffrage: Universal at 18 years of age; noncitizen residents may vote in municipal elections.
Government budget: $9.3 billion.
Defense: 1.8% of GDP.
National holidays: Jan. 1 (New Year's Day), Feb. 24 (Independence Day), Good Friday, Easter Sunday, May 1 (May Day), Whitsunday, June 23 (Victory Day--anniversary of Battle of Vonnu in 1919), June 24 (Midsummer Day), Aug. 20 (Day of Restoration of Independence), Dec. 25 (Christmas Day), Dec. 26 (Boxing Day).
Government of Estonia web site: http://www.riik.ee/en/

Economy

GDP (2007): $21.3 billion.
Real GDP growth rate (2007): 7.1%.
Per capita GDP (2007): $15,868.
Inflation (2007): 6.6%.
Unemployment (2007): 4.7%.
Natural resources: Oil shale, phosphorus, limestone, blue clay.
Agriculture (3% of 2007 GDP): Products--livestock production (milk, meat, eggs) and crop production (cereals and legumes, potatoes, forage crops). Arable land--433,100 hectares.
Industry (21% of 2007 GDP): Types--engineering, electronics, wood and wood products, and textiles.
Services (60% of 2007 GDP): Transit, information technology (IT), telecommunications, business services, retail, construction, real estate.
Public sector (16% of 2007 GDP): Public services, education, healthcare, social services.
Trade: Exports (2007)--$11 billion. Partners--Finland 18%, Sweden 13%, Latvia 11%, Russia 8.8%, Germany 5.2%, Lithuania 5.7%, U.S. 4%. Imports (2007)--$15.5 billion. Partners--Finland 16%, Germany 12.8%, Russia 10%, Sweden 10%, Latvia 7.6%, Lithuania 6.8%.
Exchange rate (2007): 11.4 kroon (EEK)=U.S.$1.
Foreign direct investment (2007): Sweden 39.7%, Finland 24.6%, Netherlands 5.7%, Denmark 4.4%, Russia 2.6%, Norway 2.5%, Germany 2.4%, Cyprus 2.3%, Luxembourg 2%, U.K. 2%, U.S. 1.6%.

GEOGRAPHY

Between 57.3 and 59.5 degrees latitude and 21.5 and 28.1 degrees longitude, Estonia lies on the eastern shores of the Baltic Sea on the level, northwestern part of the rising East European platform. Average elevation reaches only 50 meters (160 ft.).

The climate resembles New England's. Oil shale and limestone deposits, along with forests that cover 47% of the land, play key economic roles in this generally resource-poor country. Estonia boasts more than 1,500 lakes, numerous bogs, and 3,794 kilometers of coastline marked by numerous bays, straits, and inlets. Tallinn's Muuga port offers one of Europe's finest warm water harbor facilities.

Estonia's strategic location has precipitated many wars fought on its territory between other rival powers at its expense. In 1944, the Union of Soviet Socialist Republics (U.S.S.R.) granted Russia the trans-Narva and Petseri regions on Estonia's eastern frontier. Russia and Estonia signed a border treaty in 2005 recognizing the current border. Estonia ratified the treaty in June 2005, but Russia subsequently revoked its signature to the treaty, due to a reference the Estonian Parliament inserted regarding the Peace Treaty of Tartu.

PEOPLE

Estonians belong to the Balto-Finnic group of the Finno-Ugric peoples, as do the Finns and the Hungarians. Archaeological research confirms the existence of human activity in the region as early as 8,000 BC, but by 3,500 BC the principal ancestors of the Estonians had arrived from the east.

Estonians have strong ties to the Nordic countries today stemming from deep cultural and religious influences gained over centuries during Scandinavian colonization and settlement. This highly literate society places great emphasis upon education, which is free and compulsory until age 16. About 20% of the population belongs to the following churches registered in Estonia: Estonian Evangelical Lutheran Church, Estonian Apostolic Orthodox Church, Estonian Orthodox Church subordinated to the Moscow Patriarchate, Baptist Church, Roman Catholic Church, and others.

As of March 2, 2008, 83.8% of Estonia's population held Estonian citizenship, 8% were citizens of other countries (primarily Russia), and 8.2% were of undetermined citizenship.

Written with the Latin alphabet, Estonian is the language of the Estonian people and the official language of the country. Estonian is one of the world's most difficult languages to learn for English-speakers: it has fourteen cases, which can be a challenge even for skilled linguists. During the Soviet era, the Russian language was imposed for official use.

HISTORY

Ancient

Estonians are one of the longest-settled European peoples and have lived along the Baltic Sea for over 5,000 years. The Estonians were an independent nation until the 13th century A.D. The country was then subsequently conquered by Denmark, Germany, Poland, Sweden, and finally Russia, whose defeat of Sweden in 1721 resulted in the Uusikaupunki Peace Treaty, granting Russia rule over what became modern Estonia.

First Period of Independence

Independence remained out of reach for Estonia until the collapse of the Russian empire during World War I. Estonia declared itself an independent democratic republic in November 1918. In 1920, by the Peace Treaty of Tartu, Soviet Russia recognized Estonia's independence and renounced in perpetuity all rights to its territory.

The first constitution of the Republic of Estonia was adopted in 1920 and established a parliamentary form of government. Estonia's independence would last for 22 years, during which time Estonia guaranteed cultural autonomy to all minorities, including its small Jewish population, an act that was unique in Western Europe at the time.

Soviet Period

Leading up to World War II (WWII), Estonia pursued a policy of neutrality. However, the Soviet Union forcibly incorporated Estonia as a result of the Molotov-Ribbentrop Pact of 1939, in which Nazi Germany gave control of Estonia, Latvia, and Lithuania to the Soviet Union in return for control of much of Poland. In August 1940, the U.S.S.R. proclaimed Estonia a part of the Soviet Union as the Estonian Soviet Socialist Republic (E.S.S.R.). The United States never recognized Soviet sovereignty over Estonia, Latvia, or Lithuania.

During World War II, between 1939 and 1945, through both the Nazi and Soviet occupations, Estonia's direct human losses reached 180,000 residents, which amounted to 17% of its total population. During the Nazi occupation from 1941 to 1944, 7,800 citizens of the Republic of Estonia (70% ethnic Estonians, 15% ethnic Russians, 12.8% Estonian Jews, and 2.2% representing other nationalities) were executed in Nazi prison camps. Of the total number executed during the period of Nazi occupation, an estimated 1,000 were Estonian Jews--or roughly 25% of the pre-war Jewish population of Estonia. Additionally, an estimated 10,000 Jews were transported to Estonia from elsewhere in eastern Europe and killed there.

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

Re-establishing Independence

In the late 1980s, looser controls on freedom of expression under Soviet leader Mikhail Gorbachev reignited the Estonians' call for self-determination. By 1988, hundreds of thousands of people were gathering across Estonia to sing previously banned national songs in what became known as the "Singing Revolution."

In November 1988, Estonia's Supreme Soviet passed a declaration of sovereignty; in 1990, the name of the Republic of Estonia was restored, and during the August 1991 coup in the U.S.S.R., Estonia declared full independence. The U.S.S.R. Supreme Soviet recognized independent Estonia on September 6, 1991. Unlike the experiences of Latvia and Lithuania, Estonia's revolution ended without blood spilled.

Estonia became a member of the United Nations on September 17, 1991 and is a signatory to a number of UN organizations and other international agreements, including IAEA, ICAO, UNCTAD, WHO, WIPO, UNESCO, ILO, IMF, and WB/EBRD. It is also a member of the Organization for Security and Cooperation in Europe (OSCE).

After more than 3 years of negotiations, on August 31, 1994, the armed forces of the Russian Federation withdrew from Estonia.

Modern Period: 1990s - Today
In 1992, a constitutional assembly introduced amendments to the 1938 constitution. After the draft constitution was approved by popular referendum, it came into effect July 3, 1992. Presidential elections were held on September 20, 1992, with Lennart Meri as victor. Lennart Meri served two terms as president, implementing many reforms during his tenure. Meri was constitutionally barred from a third term. Arnold Rüütel became president in 2001, Toomas Hendrick Ilves in 2006. Since fully regaining independence, Estonia has had 10 governments with 7 different prime ministers elected: Mart Laar, Andres Tarand, Tiit Vähi, Mart Siimann, Siim Kallas, Juhan Parts, and Andrus Ansip.

Estonia began to adopt free-market policies even before it declared independence in mid-1991 and has continued to pursue reform aggressively ever since. For example, the government set privatization as an early priority and has now completed the process of putting most major industries in private hands. After independence the Government of Estonia took steps to simplify the tax system. Tax evasion is now relatively low by regional standards. Income tax is levied at a flat rate, a principle supported by major parties except the Center Party, for which a progressive tax system remains a keystone policy. An integral part of Estonia's transition to a market economy during the early 1990s involved reorienting foreign trade to the West and attracting foreign investment to upgrade the country's industry and commerce. In 1990, only 5% of Estonia's foreign trade was with the developed West; only 21% of this trade represented exports. About 87% of Estonia's trade was with the Soviet Union, and of that, 61% was with Russia. Estonia's main foreign trading partners today are Sweden, Finland, Germany and others in the West. Russia's share of Estonia's trade is less than 10%.

The introduction of the Estonian kroon in June 1992, with only U.S. $120 million in gold reserves and no internationally backed stabilization fund, proved decisive in stabilizing foreign trade. For stability, the kroon was pegged by special agreement to the deutsche mark (DM) at EKR8 = DM1 and later to the Euro. The new Estonian currency became the foundation for rational development of the economy. Money began to have clear value; the currency supply could be controlled from Tallinn, not Moscow; and long-term investment decisions could be made with greater confidence by both the state and private enterprise. The central bank is independent of the government but subordinate to the parliament. In addition to its president, the bank is managed by a board of directors, whose chair is also appointed by parliament.

The fall of the Soviet Union and the rapid contraction of Estonia's market to the East during the early 1990s caused Estonia's economy to shrink 36% from 1990 to 1994. But economic reforms in Estonia and the ability of its economy to reorient toward the West allowed Estonia's economy to pick up in 1995 with 4.6% growth and 4.0% growth in 1996. Russia's financial crisis in 1999 led to the only year of decline in Estonia's GDP since 1994--but the 0.7% decline was relatively small.

The 1994-2004 period was mainly dominated by the Estonian EU and NATO accession processes. Estonia was the first Baltic country to start direct accession talks with the EU. Estonia applied to join the EU in November 1995 and, while participating in accession negotiations, continued its program of major economic and social reforms. This gave Estonia a good opportunity to take into account EU objectives and to exploit the experience of existing EU member states when carrying out reforms. Examples of reform in the social area included the launch of unemployment insurance in 2002 and the 1999 implementation of the Occupational Safety and Health Act, which regulates safety and health requirements in the work place as well as the organizational aspects of the occupational health system.

In 1999, Estonia joined the World Trade Organization, adding to its previous membership of the IMF, World Bank and the European Bank for Reconstruction and Development.

In November 2002, Estonia was one of seven Central and East European countries to be invited to join NATO; it officially became a member of NATO on March 29, 2004. Since re-establishing independence, Estonia has proven itself to be an excellent Ally, having built a military capable of participating in ever more complex and distant military operations.

EU accession negotiations proceeded rapidly, and Estonia joined the EU in May 2004, along with nine other countries, including its Baltic neighbors. The final decision was conditional on the outcome of a national referendum which was held in September 2003 and returned a large majority in favor of membership.

Estonia has developed into a strong international actor, through its membership in the EU and NATO; it is a capable advocate and promoter of stability and democracy in the former Soviet Union and beyond. Estonian troops have been in Afghanistan since 2002 and Iraq since 2003. It participates in the NATO training mission in Iraq. Estonia also provides peacekeepers for international missions in both Bosnia and Kosovo and contributes to EU battlegroups and NATO Response Force rotations. It supports democratic developments in key countries of the former Soviet Union and beyond by providing training to government and law enforcement officials as well as non-governmental organizations. It has valuable experience to offer new democracies from its own recent history, and it works hard to promote democracy, freedom, and stability worldwide.

GOVERNMENT

Estonia is a parliamentary democracy, with a 101-member parliament (the Riigikogu) and a president who is elected indirectly by parliament or, if no candidate wins a two-thirds majority in parliament, by an electoral college composed of members of parliament and of local government representatives. Estonia holds presidential elections every five years. The last presidential election was in 2006. The President serves a maximum of two terms. The President is also the Supreme Commander of the National Defense of Estonia.

Parliamentary elections take place every four years; members are elected by proportional representation. The most recent elections took place on March 4, 2007. A party must gather at least 5% of the votes to take a seat in Parliament. Citizens 18 years of age or older may vote in parliamentary elections and be members of political parties. EU citizens who are 18 years of age or older and registered in the Population Register may vote in European Parliament elections. In addition, non-citizen long-term residents may vote in local elections, although they may not run for office.

After parliamentary elections, the President traditionally asks the party with the most votes to form a new government. The President chooses the Prime Minister--usually the leader of the largest party or coalition in the Parliament--with the consent of the parliament to supervise the work of the government. The Estonian government has a total of 14 ministers.

At the local level, Estonians elect government councils by proportional representation. The individual councils vary in size, but election laws stipulate minimum size requirements depending on the population of the municipality.

Estonia's Supreme Court, the Riigikohus, has 19 justices, all of whom receive lifetime tenure appointments. The parliament appoints the Chief Justice on nomination by the President.

Estonians may vote via the Internet in local and parliamentary elections.

POLITICAL CONDITIONS

Currently, half a dozen parties represent Estonia's 1.3 million citizens. The Reform Party, Pro Patria and Res Publica Union, and the Social Democratic parties form the current government with 31, 19, and 10 seats in parliament, respectively. Other major parties include the Center Party, the Greens, and the People's Union.

Reform Party Chairman Andrus Ansip is the current Prime Minister of the coalition government.

Toomas Hendrik llves is the President of Estonia. He was a member of the Social Democrat Party, a former Ambassador to the United States, two-time Minister of Foreign Affairs, an Estonian member of parliament, and a former member of the European Parliament. President Ilves narrowly defeated incumbent Arnold Rüütel in an electoral-college vote in September 2006, and he took office on October 9, 2006.

ECONOMY

Estonia is considered one of the most liberal economies in the world, ranking 12th in the Heritage Foundation's 2008 Economic Freedom Index. Hallmarks of Estonia's free, market-based economy include a balanced budget, a flat-rate income tax system (the first in the world), a fully convertible currency pegged to the Euro, a competitive commercial banking sector, and a hospitable environment for foreign investment, including no tax on reinvested corporate profits (tax is not levied unless a distribution is made).

Estonia's liberal economic policies and macroeconomic stability have fostered exceptionally strong growth and better living standards than those of most new EU member states. The economy benefits from strong electronics and telecommunications sectors; the country is so wired that it is nicknamed E-stonia. Many bars and cafes across the country are equipped with wireless connections. Skype, designed by Estonian developers, offers free calls over the Internet to millions of people worldwide. Tourism has also driven Estonia's economic growth, with beautifully restored Tallinn already a Baltic tourist landmark.

By the late 1990s, Estonia's trade regime was so liberal that adoption of EU and World Trade Organization (WTO) norms actually forced Estonia to impose tariffs in certain sectors, such as agriculture, which had previously been tariff-free. Openness to trade, rapid growth in investment, and an appreciating real exchange rate have resulted in large trade deficits in recent years. Estonia supplies more than 90% of its electricity needs with locally mined oil shale; however, it imports all of its natural gas and petroleum (roughly 30% of total energy consumption) from Russia. Alternative energy sources such as wood, peat, and biomass make up about 9% of primary energy production. An undersea electricity cable inaugurated in December 2006 allows Estonia to export electricity to Finland.

Notwithstanding these many achievements, the economy of Estonia still faces challenges. The income differential between Tallinn and the rest of the country has widened in recent years as the cost of living differential has narrowed. The formerly industrial northeast section of Estonia suffered from economic depression as a result of plant closings in the early 1990s, although even this region has experienced strong growth in the last two years. The labor force is shrinking due to low birth rates and emigration. This tight labor market and the government's restrictive labor and immigration policies have led to wage pressure and challenges to future competitiveness. Inflation above 6% has forced the government to push back adoption of the Euro from its original target of 2007.

After enjoying double digit growth in recent years, 2007 GDP growth slowed to 7.1% and is expected to be around 2% for 2008 (Bank of Estonia estimate from April 2008). Prices are decreasing in the real estate sector, and there are signs of a slowdown in private consumption growth. Rising prices of non-domestic goods, especially food, both from the EU and imported from third countries, have pushed inflation to 6.6%.

Foreign Trade

Estonia is part of the European Union, and its trade policy is conducted in Brussels.

Estonia's business attitude toward the United States is positive, and business relations between the two countries are increasing. The primary competition for American companies in the Estonian marketplace is European suppliers, especially Finnish and Swedish companies.

Total U.S. exports to Estonia in 2007 were $242 million, forming 1.2% of total Estonian imports. In 2007 the principal imports from the United States were boilers, machinery, vehicles, chemicals, mineral fuels, oils and electronics. Estonian exports to the United States were around $296 million in 2007, making the U.S. Estonia's fourth-largest export market outside of the EU. U.S. imports from Estonia are primarily mineral fuels and oils, electronic machinery, games and sports equipment, and fertilizers.

Estonia's economy benefits from its location at the crossroads of East and West. Estonia lies just south of Finland and across the Baltic Sea from Sweden, both EU members. To the east are the huge potential markets of northwest Russia. Estonia's modern transportation and communication links provide a safe and reliable bridge for trade with former Soviet Union and Nordic countries. Many observers also see a potential role for Estonia as a future link in the supply chain from the Far East into the EU.

Country Commercial Guides are available for U.S. exporters from the National Trade Data Bank's CD-ROM or via the Internet. Please contact STAT-USA at 1-800-STAT-USA for more information. Country Commercial Guides can be accessed via the World Wide Web at the U.S. Department of Commerce's site and at the U.S. Embassy in Tallinn's website at http://estonia.usembassy.gov/commguide.php. They also can be ordered in hard copy or on diskette from the National Technical Information Service (NTIS) at 1-800-553-NTIS. U.S. exporters seeking general export information/assistance and country-specific commercial information should contact the U.S. Department of Commerce, Trade Information Center by phone at 1-800-USA-TRAD(E) or by fax at 1-202-482-4473.

DEFENSE

Estonia's regular armed forces--the Estonian Defense Forces--in peacetime number about 3,800 (Army 3,300, Navy 300, Air Force 200) persons, of whom about 1,500 are conscripts. The President of Estonia is the Commander in Chief of the Estonian Defense Forces. The National Defense Council--composed of the Chairman of the Parliament, the Prime Minister, the Chief of the Defense Forces, the Defense Minister, the Minister of Internal Affairs, the Minister of Foreign Affairs, and the Chairman of the Parliamentary National Defense Committee--advises the President on national defense matters.

Estonia officially became a member of the North Atlantic Treaty Organization on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. The United States and Estonia cooperate intensively in the defense and security field.

Estonian defense spending has increased 13% annually since 2001. The Government of Estonia has expressed a firm commitment to meet the NATO goal of spending 2% of GDP by 2010; its current defense budget is 1.8% of GDP. In 2007, Estonia had approximately 300 military personnel deployed to support UN, NATO, and coalition military operations around the world. That number represents almost 10% of Estonia's military, a good indication of Estonia's willingness and ability to contribute to global security. Estonia currently has troops in Afghanistan, Iraq, Kosovo, and Bosnia.

FOREIGN RELATIONS

Estonia is party to most major international organizations. It is a UN, EU, and NATO member and a strong ally and partner of the United States on all fronts. It is deeply committed to good transatlantic relations and to promoting democracy and free-market economic policy globally.

In the EU, Estonia's priorities include supporting continued EU enlargement; raising EU competitiveness through innovation; joining the Eurozone; developing a unified European energy policy; enhancing and fostering the European Neighborhood Policy; and improving the EU relationship with Russia.

Estonia has active development assistance programs in many of the former Soviet countries (with a focus on Georgia, Ukraine, and Moldova), as well as in Afghanistan.

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/5377.htm

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

OFFICIAL NAME

Federal Democratic Republic of Ethiopia

Geography

Area: 1.1 million sq. km (472,000 sq. mi.); about the size of Texas, Oklahoma, and New Mexico combined.
Cities: Capital--Addis Ababa (pop. 5 million). Other cities--Dire Dawa (237,000), Nazret (189,000), Gondar (163,000), Dessie (142,000), Mekelle (141,000), Bahir Dar (140,000), Jimma (132,000), Awassa (104,000).
Terrain: High plateau, mountains, dry lowland plains.
Climate: Temperate in the highlands; hot in the lowlands.

People

Nationality: Noun and adjective--Ethiopian(s).
Population (2005): 77 million.
Annual growth rate: 2.7%.
Ethnic groups (est.): Oromo 40%, Amhara 25%, Tigre 7%, Somali 6%, Sidama 9%, Gurage 2%, Wolaita 4%, Afar 4%, other nationalities 3%.
Religions (est.): Ethiopian Orthodox Christian 40%, Sunni Muslim 45-50%, Protestant 5%, remainder indigenous beliefs.
Languages: Amharic (official), Tigrinya, Arabic, Guaragigna, Oromigna, English, Somali.
Education: Years compulsory--none. Attendance (elementary) 57%. Literacy--43%.
Health: Infant mortality rate--93/1,000 live births.
Work force: Agriculture--80%. Industry and commerce--20%.

Government

Type: Federal Republic.
Constitution: Ratified 1994.
Branches: Executive--president, Council of State, Council of Ministers. Executive power resides with the prime minister. Legislative--bicameral parliament. Judicial--divided into Federal and Regional Courts.
Administrative subdivisions: 9 regions and 2 special city administrations: Addis Ababa and Dire Dawa.
Political parties: Ethiopian People's Revolutionary Democratic Front (EPRDF), the Coalition for Unity and Democracy Party (CUDP), the United Ethiopian Democratic Forces (UEDF), Oromo Federalist Democratic Movement (OFDM), and other small parties.
Suffrage: Universal starting at age 18.
Central government budget (2006 est.): $3.4 billion.
Defense: $348 million (5.6% of GDP FY 2003).
National holiday: May 28.

Economy

Real GDP (2006 est.): $13.3 billion.
Annual growth rate (2006 est.): 9.6%.
Per capita income (2006 est.): $130.
Average inflation rate (2006 est.): 13%.
Natural resources: Potash, salt, gold, copper, platinum, natural gas (unexploited).
Agriculture (47% of GDP): Products--coffee, cereals, pulses, oilseeds, khat, meat, hides and skins. Cultivated land--17%.
Industry (12% of GDP): Types--textiles, processed foods, construction, cement, and hydroelectric power.
Trade (2006 est.): Exports--$1.1 billion. Imports--$4.1 billion; plus remittances--official est. $400 million; unofficial est. $400 million.
Fiscal year: July 8-July 7.

GEOGRAPHY

Ethiopia is located in the Horn of Africa and is bordered on the north and northeast by Eritrea, on the east by Djibouti and Somalia, on the south by Kenya, and on the west and southwest by Sudan. The country has a high central plateau that varies from 1,800 to 3,000 meters (6,000 ft.-10,000 ft.) above sea level, with some mountains reaching 4,620 meters (15,158 ft.). Elevation is generally highest just before the point of descent to the Great Rift Valley, which splits the plateau diagonally. A number of rivers cross the plateau--notably the Blue Nile flowing from Lake Tana. The plateau gradually slopes to the lowlands of the Sudan on the west and the Somali-inhabited plains to the southeast.

The climate is temperate on the plateau and hot in the lowlands. At Addis Ababa, which ranges from 2,200 to 2,600 meters (7,000 ft.-8,500 ft.), maximum temperature is 26o C (80o F) and minimum 4o C (40o F). The weather is usually sunny and dry with the short (belg) rains occurring February-April and the big (meher) rains beginning in mid-June and ending in mid-September.

PEOPLE

Ethiopia's population is highly diverse. Most of its people speak a Semitic or Cushitic language. The Oromo, Amhara, and Tigreans make up more than three-fourths of the population, but there are more than 77 different ethnic groups with their own distinct languages within Ethiopia. Some of these have as few as 10,000 members. In general, most of the Christians live in the highlands, while Muslims and adherents of traditional African religions tend to inhabit lowland regions. English is the most widely spoken foreign language and is taught in all secondary schools. Amharic is the official language and was the language of primary school instruction but has been replaced in many areas by local languages such as Oromifa and Tigrinya.

HISTORY

Ethiopia is credited with being the origin of mankind. Bones discovered in eastern Ethiopia date back 3.2 million years. Ethiopia is the oldest independent country in Africa and one of the oldest in the world. Herodotus, the Greek historian of the fifth century B.C. describes ancient Ethiopia in his writings. The Old Testament of the Bible records the Queen of Sheba's visit to Jerusalem. According to legend, Menelik I, the son of King Solomon and the Queen of Sheba, founded the Ethiopian Empire. Missionaries from Egypt and Syria introduced Christianity in the fourth century A.D. Following the rise of Islam in the seventh century, Ethiopia was gradually cut off from European Christendom. The Portuguese established contact with Ethiopia in 1493, primarily to strengthen their influence over the Indian Ocean and to convert Ethiopia to Roman Catholicism. There followed a century of conflict between pro- and anti-Catholic factions, resulting in the expulsion of all foreign missionaries in the 1630s. This period of bitter religious conflict contributed to hostility toward foreign Christians and Europeans, which persisted into the 20th century and was a factor in Ethiopia's isolation until the mid-19th century.

Under the Emperors Theodore II (1855-68), Johannes IV (1872-89), and Menelik II (1889-1913), the kingdom was consolidated and began to emerge from its medieval isolation. When Menelik II died, his grandson, Lij Iyassu, succeeded to the throne but soon lost support because of his Muslim ties. The Christian nobility deposed him in 1916, and Menelik's daughter, Zewditu, was made empress. Her cousin, Ras Tafari Makonnen (1892-1975), was made regent and successor to the throne. In 1930, after the empress died, the regent, adopting the throne name Haile Selassie, was crowned emperor. His reign was interrupted in 1936 when Italian Fascist forces invaded and occupied Ethiopia. The emperor was forced into exile in England despite his plea to the League of Nations for intervention. Five years later, British and Ethiopian forces defeated the Italians, and the emperor returned to the throne.

After a period of civil unrest, which began in February 1974, the aging Haile Selassie I was deposed on September 12, 1974, and a provisional administrative council of soldiers, known as the Derg ("committee") seized power from the emperor and installed a government, which was socialist in name and military in style. The Derg summarily executed 59 members of the royal family and ministers and generals of the emperor's government; Emperor Haile Selassie was strangled in the basement of his palace on August 22, 1975.

Lt. Col. Mengistu Haile Mariam assumed power as head of state and Derg chairman, after having his two predecessors killed. Mengistu's years in office were marked by a totalitarian-style government and the country's massive militarization, financed by the Soviet Union and the Eastern Bloc, and assisted by Cuba. From 1977 through early 1978 thousands of suspected enemies of the Derg were tortured and/or killed in a purge called the "red terror." Communism was officially adopted during the late 1970s and early 1980s with the promulgation of a Soviet-style constitution, Politburo, and the creation of the Workers' Party of Ethiopia (WPE).

In December 1976, an Ethiopian delegation in Moscow signed a military assistance agreement with the Soviet Union. The following April, Ethiopia abrogated its military assistance agreement with the United States and expelled the American military missions. In July 1977, sensing the disarray in Ethiopia, Somalia attacked across the Ogaden Desert in pursuit of its irredentist claims to the ethnic Somali areas of Ethiopia. Ethiopian forces were driven back deep inside their own frontier but, with the assistance of a massive Soviet airlift of arms and Cuban combat forces, they stemmed the attack. The major Somali regular units were forced out of the Ogaden in March 1978. Twenty years later, development in the Somali region of Ethiopia lagged.

The Derg's collapse was hastened by droughts and famine, as well as by insurrections, particularly in the northern regions of Tigray and Eritrea. In 1989, the Tigrayan People's Liberation Front (TPLF) merged with other ethnically based opposition movements to form the Ethiopian Peoples' Revolutionary Democratic Front (EPRDF). In May 1991, EPRDF forces advanced on Addis Ababa. Mengistu fled the country for asylum in Zimbabwe, where he still resides.

In July 1991, the EPRDF, the Oromo Liberation Front (OLF), and others established the Transitional Government of Ethiopia (TGE) which was comprised of an 87-member Council of Representatives and guided by a national charter that functioned as a transitional constitution. In June 1992 the OLF withdrew from the government; in March 1993, members of the Southern Ethiopia Peoples' Democratic Coalition left the government.

In May 1991, the Eritrean People's Liberation Front (EPLF), led by Isaias Afwerki, assumed control of Eritrea and established a provisional government. This provisional government independently administered Eritrea until April 23-25, 1993, when Eritreans voted overwhelmingly for independence in a UN-monitored free and fair referendum. Eritrea was with Ethiopia’s consent declared independent on April 27, and the United States recognized its independence on April 28, 1993.

In Ethiopia, President Meles Zenawi and members of the TGE pledged to oversee the formation of a multi-party democracy. The election for a 547-member constituent assembly was held in June 1994, and this assembly adopted the constitution of the Federal Democratic Republic of Ethiopia in December 1994. The elections for Ethiopia's first popularly chosen national parliament and regional legislatures were held in May and June 1995. Most opposition parties chose to boycott these elections, ensuring a landslide victory for the EPRDF. International and non-governmental observers concluded that opposition parties would have been able to participate had they chosen to do so. The Government of the Federal Democratic Republic of Ethiopia was installed in August 1995.

In May 1998, Eritrean forces attacked part of the Ethiopia-Eritrea border region, seizing some Ethiopian-controlled territory. The strike spurred a two-year war between the neighboring states that cost over 100,000 lives. Ethiopian and Eritrean leaders signed an Agreement on Cessation of Hostilities on June 18, 2000 and a peace agreement, known as the Algiers Agreement, on December 12, 2000. The agreements called for an end to the hostilities, a 25-kilometer-wide Temporary Security Zone along the Ethiopia-Eritrea border, the establishment of a United Nations peacekeeping force to monitor compliance, and the establishment of the Eritrea Ethiopia Boundary Commission (EEBC) to act as a neutral body to assess colonial treaties and applicable international law in order to render final and binding border delimitation and demarcation determinations. The United Nations Mission to Eritrea and Ethiopia (UNMEE) was established in September 2000. The EEBC presented its border delimitation decision on April 13, 2002. To date, neither Ethiopia nor Eritrea has taken the steps necessary to demarcate the border.

Opposition candidates won 12 seats in national parliamentary elections in 2001. Ethiopia held the most free and fair national campaign period in the country’s history prior to May 15, 2005 elections. Unfortunately, electoral irregularities and tense campaign rhetoric resulted in a protracted election complaints review process. Public protests turned violent in June 2005. The National Electoral Board released final results in September 2005, with the opposition taking over 170 of the 547 parliamentary seats and 137 of the 138 seats for the Addis Ababa municipal council. Opposition parties called for a boycott of parliament and civil disobedience to protest the election results. In early November 2005, Ethiopian security forces responded to public protests by arresting scores of opposition leaders, as well as journalists and human rights advocates, and detaining tens of thousands of civilians in rural detention camps for up to three months. In December 2005, the government charged 131 opposition, media, and civil society leaders with capital offenses including "outrages against the constitution." Key opposition leaders and almost all of the 131 were pardoned and released from prison in the summer of 2007. Approximately 150 of the elected opposition members of parliament have taken their seats. Ruling and opposition parties have engaged in little dialogue since the opposition leaders were freed. Government harassment and intimidation prompted the major opposition parties to withdraw from the April 2008 elections for local officials and 39 seats in parliament. As a result, the ruling party won over 95% of all the positions, including all but one of the 138 seats of the Addis Ababa city council (a complete reversal of the 2005 results).

GOVERNMENT AND POLITICAL CONDITIONS

Ethiopia is a federal republic under the 1994 constitution. The executive branch includes a president, Council of State, and Council of Ministers. Executive power resides with the prime minister. There is a bicameral parliament; national legislative elections were held in 2005. The judicial branch comprises federal and regional courts.

Political parties include the Ethiopian People's Revolutionary Democratic Front (EPRDF), the Coalition for Unity and Democracy (CUD), the United Ethiopian Democratic Forces (UEDF), and other small parties. Suffrage is universal at age 18.

The EPRDF-led government of Prime Minister Meles Zenawi has promoted a policy of ethnic federalism, devolving significant powers to regional, ethnically based authorities. Ethiopia today has 9 semi-autonomous administrative regions and two special city administrations (Addis Ababa and Dire Dawa), which have the power to raise their own revenues. Under the present government, Ethiopians enjoy wider, albeit circumscribed, political freedom than ever before in Ethiopia’s history.

ECONOMY

The current government has embarked on a cautious program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, so far the reforms have attracted only meager foreign investment, and the government remains heavily involved in the economy.

The Ethiopian economy is based on agriculture, which contributes 47% to GNP and more than 80% of exports, and employs 85% of the population. The major agricultural export crop is coffee, providing 35% of Ethiopia's foreign exchange earnings, down from 65% a decade ago because of the slump in coffee prices since the mid-1990s. Other traditional major agricultural exports are hides and skins, pulses, oilseeds, and the traditional "khat," a leafy shrub that has psychotropic qualities when chewed. Sugar and gold production has also become important in recent years.

Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by inappropriate agricultural practices and overgrazing, deforestation, high population density, undeveloped water resources, and poor transport infrastructure, making it difficult and expensive to get goods to market. Yet agriculture is the country's most promising resource. Potential exists for self-sufficiency in grains and for export development in livestock, flowers, grains, oilseeds, sugar, vegetables, and fruits.

Gold, marble, limestone, and small amounts of tantalum are mined in Ethiopia. Other resources with potential for commercial development include large potash deposits, natural gas, iron ore, and possibly oil and geothermal energy. Although Ethiopia has good hydroelectric resources, which power most of its manufacturing sector, it is totally dependent on imports for its oil. A landlocked country, Ethiopia has relied on the port of Djibouti since the 1998-2000 border war with Eritrea. Ethiopia is connected with the port of Djibouti by road and rail for international trade. Of the 23,812 kilometers of all-weather roads in Ethiopia, 15% are asphalt. Mountainous terrain and the lack of good roads and sufficient vehicles make land transportation difficult and expensive. However, the government-owned airline’s reputation is excellent. Ethiopian Airlines serves 38 domestic airfields and has 42 international destinations.

Dependent on a few vulnerable crops for its foreign exchange earnings and reliant on imported oil, Ethiopia lacks sufficient foreign exchange earnings. The financially conservative government has taken measures to solve this problem, including stringent import controls and sharply reduced subsidies on retail gasoline prices. Nevertheless, the largely subsistence economy is incapable of meeting the budget requirements for drought relief, an ambitious development plan, and indispensable imports such as oil. The gap has largely been covered through foreign assistance inflows.

DEFENSE

The Ethiopian National Defense Forces (ENDF) numbers about 200,000 personnel, which makes it one of the largest militaries in Africa. During the 1998-2000 border war with Eritrea, the ENDF mobilized strength reached approximately 350,000. Since the end of the war, some 150,000 soldiers have been demobilized. The ENDF continues a transition from its roots as a guerrilla army to an all-volunteer professional military organization with the aid of the U.S. and other countries. Training in peacekeeping operations, professional military education, military training management, counter-terrorism operations, and military medicine are among the major programs sponsored by the United States. Ethiopia now has one peacekeeping contingent in Liberia.

FOREIGN RELATIONS

Ethiopia was relatively isolated from major movements of world politics until Italian invasions in 1895 and 1935. Since World War II, it has played an active role in world and African affairs. Ethiopia was a charter member of the United Nations and took part in UN operations in Korea in 1951 and the Congo in 1960. Former Emperor Haile Selassie was a founder of the Organization of African Unity (OAU), now known as the African Union (AU). Addis Ababa also hosts the UN Economic Commission for Africa. Ethiopia is also a member of the Intergovernmental Authority on Development, a Horn of Africa regional grouping.

Although nominally a member of the Non-Aligned Movement, after the 1974 revolution, Ethiopia moved into a close relationship with the Soviet Union and its allies and supported their international policies and positions until the change of government in 1991. Today, Ethiopia has very good relations with the United States and the West, especially in responding to regional instability and supporting war on terrorism and, increasingly, through economic involvement.

Ethiopia's relations with Eritrea remained tense and unresolved. Following a brutal 1998-2000 border war in which tens of thousands died on both sides, the two countries signed a peace agreement in December 2000. A five-member independent international commission--the Eritrea Ethiopia Boundary Commission (EEBC)--issued a decision in April 2002 delimiting the border. In November 2007 the EEBC issued a decision that the border was demarcated based on map coordinates (usual demarcation based on pillars on the ground had not yet occurred due to disagreement between Ethiopia and Eritrea) and disbanded. Ethiopia does not consider the border to be demarcated, though Eritrea does. In March 2008 the United Nations Mission in Ethiopia and Eritrea (UNMEE) peacekeeping mission began withdrawing from Eritrea because Eritrea refused to allow UNMEE to secure fuel supplies for its operations. Both countries have stationed approximately 100,000 troops along the border, which has become more dangerous due to the pending departure of UNMEE. Both countries insist they will not instigate fighting, but both also remain prepared for any eventuality. Regarding its neighbor Somalia, the weakness of the Transitional Federal Government (TFG) and factional fighting in Somalia contributes to tensions along the boundaries of the two countries. Ethiopia has recently entered into a loose tripartite (nonmilitary) cooperation with Sudan and Yemen.

The irredentist claims of the extremist-controlled Council of Islamic Courts (CIC) in Somalia in 2006 posed a legitimate security threat to Ethiopia and to the TFG of Somalia. In December 2006, the TFG requested the assistance of the Ethiopian military to respond to the CIC's aggression. Within a few weeks, the joint Ethiopian-TFG forces routed the CIC from Somalia. Since then Ethiopia has stationed troops in Somalia (largely around Mogadishu), awaiting full deployment of the African Union's Mission in Somalia (AMISOM). Uganda and Burundi together have sent some 2,400 peacekeepers to Somalia--roughly one-third of AMISOM's planned deployment of 8,000 soldiers.

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/2859.htm

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

OFFICIAL NAME

Republic of the Fiji Islands

Geography

Area: 18,376 sq. km (7,056 sq. mi.).
Cities: Capital--Suva (pop. 172, 948), Lautoka (pop. 52,742), Nadi (pop. 42,712).
Terrain: Mountainous or varied.
Climate: Tropical maritime.

People

Nationality: Noun--Fiji Islander; adjective--Fiji or Fijian.*
Population (2007 census): 827,900. Age structure: 35.4% under 14; 3.1% over 65.
Annual growth rate (2006 est.): 0.83%.
Ethnic groups: Indigenous Fijian 57%, Indo-Fijian 37%.
Religion: Christian 52% (Methodist and Roman Catholic), Hindu 33%, Muslim 7%.
Languages: English, Fijian, and Hindi are official languages.
Education: Literacy (2004)--93%.
Health (2004): Life expectancy--overall, 67.8 years, male 66 years; female 70. Infant mortality rate--16/1,000.
Work force: Agriculture--67%.

*The term "Fijian" has exclusively ethnic connotations and should not be used to describe any thing or person not of indigenous Fijian descent.

Government

Type: Parliamentary democracy (overthrown by military coup in December 2006).
Independence (from U.K.): October 10, 1970.
Constitution: July 1997 (suspended May 2000, reaffirmed March 2001).
Branches: Executive--president (head of state), prime minister (head of government), cabinet. Legislative--bicameral parliament; upper house is appointed, lower house is elected. Judicial--Supreme Court and supporting hierarchy.
Major political parties: Soqosoqo Duavata ni Lewenivanua (SDL), Fiji Labor Party (FLP), United People's Party (UPP), National Federation Party (NFP), National Alliance Party (NAP), Nationalist Vanua Tako Lavo Party (NVTLP).

Economy (all figures in U.S. dollars)

GDP (2007 est.): $2.43 billion.
GDP per capita (nominal): $2,461.
GDP composition by sector: Services 59.7%, industry 30.4%, agriculture 9.9%.
Industry: Types--tourism, sugar, garments.
Trade (2007): Exports--$526 million; sugar, garments, gold, fish, mineral water. Major markets--Australia, U.S., U.K., Japan, New Zealand. Imports--$1.26 billion; mineral products, machinery and transport equipment. Major sources--Singapore, Australia, New Zealand, Japan, U.S. ($20 million).
Government external debt (2007 provisional): $209 million.

GEOGRAPHY

Fiji is comprised of a group of volcanic islands in the South Pacific lying about 4,450 km. (2,775 mi.) southwest of Honolulu and 1,770 km. (1,100 mi.) north of New Zealand. Its 322 islands vary dramatically in size. The largest islands are Viti Levu, about the size of the "Big Island" of Hawaii, and where the capital and 70% of the population are located, and Vanua Levu. Just over 100 of the smaller islands are inhabited. The larger islands contain mountains as high as 1,200 meters (4,000 ft.) rising abruptly from the shore.

Heavy rains--up to 304 cm. (120 in.) annually--fall on the windward (southeastern) sides of the islands, covering these sections with dense tropical forest. Lowlands on the western portions of each of the main islands are sheltered by the mountains and have a well-marked dry season favorable to crops such as sugarcane.

PEOPLE

Most of Fiji's population lives on Viti Levu's coasts, either in Suva or in smaller urban centers. The interior of Viti Levu is sparsely populated due to its rough terrain.

Indigenous Fijians are a mixture of Polynesian and Melanesian, resulting from the original migrations to the South Pacific many centuries ago. The Indo-Fijian population grew rapidly from the 60,000 indentured laborers brought from India between 1879 and 1916 to work in the sugarcane fields. Thousands more Indians migrated voluntarily in the 1920s and 1930s and formed the core of Fiji's business class. Native Fijians live throughout the country, while Indo-Fijians reside primarily near the urban centers and in the cane-producing areas of the two main islands. Nearly all of indigenous Fijians are Christian; more than three-quarters are Methodist. Approximately 80% of Indo-Fijians are Hindu, 15% are Muslim, and around 6% are Christian.

Some Indo-Fijians have been displaced by the expiration of land leases in cane-producing areas and have moved into urban centers in pursuit of jobs. Similarly, a number of indigenous Fijians have moved into urban areas, especially Suva, in search of a better life. Meanwhile, the Indo-Fijian population has declined due to emigration and a declining birth rate. Indo-Fijians currently constitute 37% of the total population, although they were the largest ethnic group from the 1940s until the late 1980s. Indo-Fijians continue to dominate the professions and commerce, while ethnic Fijians dominate government and the military.

HISTORY

Melanesian and Polynesian peoples settled the Fijian islands some 3,500 years ago. European traders and missionaries arrived in the first half of the 19th century, and the resulting disruption led to increasingly serious wars among the native Fijian confederacies. One Ratu (chief), Cakobau, gained limited control over the western islands by the 1850s, but the continuing unrest led him and a convention of chiefs to cede Fiji unconditionally to the British in 1874.

The pattern of colonialism in Fiji during the following century was similar to that in many other British possessions: the pacification of the countryside, the spread of plantation agriculture, and the introduction of Indian indentured labor. Many traditional institutions, including the system of communal land ownership, were maintained.

Fiji soldiers fought alongside the Allies in the Second World War, gaining a fine reputation in the tough Solomon Islands campaign. The United States and other Allied countries maintained military installations in Fiji during the war, but Fiji itself never came under attack.

In April 1970, a constitutional conference in London agreed that Fiji should become a fully sovereign and independent nation within the Commonwealth. Fiji became independent on October 10, 1970. Post-independence politics came to be dominated by the Alliance Party of Ratu Sir Kamisese Mara. The Indian-led opposition won a majority of House seats in 1977, but failed to form a government out of concern that indigenous Fijians would not accept Indo-Fijian leadership. In April 1987, a coalition led by Dr. Timoci Bavadra, an ethnic Fijian supported by the Indo-Fijian community, won the general election and formed Fiji's first majority Indian government, with Dr. Bavadra serving as Prime Minister. Less than a month later, Dr. Bavadra was forcibly removed from power during a military coup led by Lt. Col. Sitiveni Rabuka on May 14, 1987.

After a period of deadlocked negotiations, Rabuka staged a second coup on September 25, 1987. The military government revoked the 1970 constitution and declared Fiji a republic on October 10. This action, coupled with protests by the Government of India, led to Fiji's expulsion from the Commonwealth of Nations and official non-recognition of the Rabuka regime from foreign governments, including Australia and New Zealand. On December 6, 1987, Rabuka resigned as head of state and Governor General Ratu Sir Penaia Ganilau was appointed the first President of the Fijian Republic. Mara was reappointed interim Prime Minister, and Rabuka became Minister of Home Affairs.

The new government drafted a new constitution, effective July 1990. Under its terms, majorities were reserved for ethnic Fijians in both houses of the legislature. Previously, in 1989, the government had released statistical information showing that for the first time since 1946, ethnic Fijians were a majority of the population. More than 12,000 Indo-Fijians and other minorities had left the country in the 2 years following the 1987 coups. After resigning from the military, Rabuka became prime minister in 1993 after elections under the new constitution.

Tensions simmered in 1995-96 over the renewal of land leases and political maneuvering surrounding the mandated 5-year review of the 1990 constitution. A Constitutional Review Commission recommended a new constitution that expanded the size of the legislature, lowered the proportion of seats reserved by ethnic group, gave to the unelected Council of Chiefs authority to appoint the president and vice president, and opened the position of prime minister to all races. Ethnic Fijians and Indo-Fijians were allocated communal seats proportional to their numbers in the population at the time. Twenty-five seats were "open" to all. Prime Minister Rabuka and President Mara supported the proposal, while the nationalist indigenous Fijian parties opposed it. The constitution amendment act was unanimously approved by parliamentarians in July 1997. The new constitution mandated the formation of a multi-party cabinet (each party with 10% of members of Parliament was entitled to nominate a cabinet minister). Fiji was readmitted to the Commonwealth.

The first legislative elections held under the new constitution took place in May 1999. Rabuka's coalition was defeated by the Fiji Labor Party (FLP), which formed a coalition, led by Mahendra Chaudhry, with two small Fijian parties. Chaudhry became Fiji's first Indo-Fijian prime minister. One year later, in May 2000, Chaudhry and most other members of Parliament were taken hostage in the House of Representatives by gunmen led by ethnic Fijian nationalist George Speight. The standoff dragged on for 8 weeks--during which time Chaudhry was removed from office by then-president Mara due to his inability to govern while a hostage. The Republic of Fiji military forces abrogated the constitution, convinced President Mara to resign, and brokered a negotiated end to the situation. Speight was later arrested when he violated the settlement's terms. In February 2002, Speight was convicted of treason and is currently serving a life sentence.

In July 2000, former banker Laisenia Qarase was named interim Prime Minister and head of the interim civilian administration by the military and Great Council of Chiefs. The Vice President, Ratu Josefa Iloilo, was named President. The Court of Appeal in March 2001 reaffirmed the validity of the constitution and ordered the President to recall the elected Parliament. However, the President dissolved the Parliament elected in 2000 and appointed Qarase head of a caretaker government to take Fiji to general elections that were held in August. Qarase's newly formed Soqosoqo Duavata ni Lewenivanua (SDL) party won the elections but did not invite into the cabinet representatives of the FLP as required by the constitution. In May 2006, the SDL was re-elected to a majority in the Parliament. Qarase continued as Prime Minister and formed a multi-party cabinet, which included nine members of the FLP.

In the lead-up to the May 2006 election and beginning again in September, tensions grew between Commander of the Fiji Military Forces Commodore Frank Bainimarama and the Qarase government. Bainimarama demanded the Qarase government not pursue certain legislation and policies. On December 5, 2006 Bainimarama removed elected Prime Minister Qarase from his position and dissolved Parliament in a military coup d'état. Qarase was exiled to an outer island. On January 4, 2007, Bainimarama reinstated President Iloilo, who stated the military was justified in its behavior and promised them amnesty. The following day Iloilo appointed Bainimarama interim Prime Minister. Over the following weeks Bainimarama formed an "interim government" that included, among others, former Prime Minister Chaudhry and former Republic of Fiji Military Forces heads Epeli Ganilau and Epeli Nailatikau. On January 15, 2007, President Iloilo decreed amnesty to Bainimarama, the Republic of Fiji Military Forces (RFMF), and all those involved in the coup from December 5, 2006 to January 5, 2007, and he claimed to ratify all the actions of Bainimarama and the RFMF.

The coup was widely condemned by regional partners, including Australia, New Zealand, the United States, and the European Union. In April 2007, the interim government suspended the Great Council of Chiefs after the council declined to appoint the interim government's choice as vice president. In October 2007, the interim government launched a People's Charter initiative, ostensibly to remove communal or ethnic voting and improve governance arrangements. The interim government has pledged itself to hold elections in March 2009, although the interim government's rhetoric continues to create uncertainty about the firmness of this commitment. A series of court cases challenging the constitutionality of the coup and its aftermath are pending.

GOVERNMENT

Under the Fiji constitution, the president (head of state) is appointed for a 5-year term by the Great Council of Chiefs, a traditional ethnic Fijian leadership body. The president in turn appoints the prime minister (head of government) and cabinet from among the members of Parliament. The prime minister must have the support of the House of Representatives in order for his government to enact legislation. Both houses of the legislature have some seats reserved by ethnicity. Other seats can be filled by persons of any ethnic group. The House of Representatives is elected; the Senate is appointed. Since the December 2006 coup, the self-appointed interim government has ruled by decree.

Fiji maintains a judiciary consisting of a Supreme Court, a Court of Appeals, a High Court, and magistrate courts. All but one of the five judges on the Supreme Court also is a serving judge in Australia or New Zealand. Since the 2006 coup, a number of High Court and Court of Appeals justices have resigned, claiming interference in judicial affairs.

There are four administrative divisions--central, eastern, northern, and western--each under the charge of a divisional commissioner. Ethnic Fijians have their own administration in which councils preside over a hierarchy of provinces, districts, and villages. The 14 provincial councils deal with all matters affecting ethnic Fijians. There is also a Rotuma Island Council for the island of Rotuma.

The Great Council of Chiefs (Bose Levu Vakaturaga) is made up of 55 hereditary chiefs, most of whom are nominated to the Council by their respective provincial councils. It is established under the Fijian Affairs Act and recognized by the constitution. The interim government promulgated regulations in February 2008 concerning membership in the Great Council of Chiefs that are being challenged in Fiji's courts.

POLITICAL CONDITIONS

For 17 years after independence, Fiji was a parliamentary democracy. During that time, political life was dominated by Ratu Sir Kamisese Mara and the Alliance Party, which combined the traditional Fijian chiefly system with leading elements of the European, part-European, and Indian communities. The main parliamentary opposition, the National Federation Party, represented mainly rural Indo-Fijians. Intercommunal relations were managed without serious confrontation. However, when a cabinet with substantial ethnic Indian representation was installed after the April 1987 election, extremist elements played on ethnic Fijian fears of domination by the Indo-Fijian community, resulting in a military coup d'etat.

This began what many now refer to as the "coup cycle." The most recent coup took place in December 2006, but has its roots in the previous 2000 coup and mutiny. Military commander Commodore Bainimarama helped resolve the 2000 crisis by imposing martial law. Prime Minister Laisenia Qarase led the interim government that followed. Subsequently, Qarase was elected in 2001 and 2006, but pursued some policies favoring the indigenous Fijian community.

One of the main issues of contention is land tenure. Indigenous Fijian communities very closely identify themselves with their land. In 1909 the land ownership pattern was frozen by the British and further sales prohibited. Today, 87% of the land is held by indigenous Fijians, under the collective ownership of the traditional Fijian clans (mataqali). That land cannot be sold and is held in trust by the Native Land Trust Board on behalf of the landowning units. Indo-Fijians produce more than 75% of the sugar crop but, in most cases, must lease the land they work from its ethnic Fijian owners instead of being able to buy it outright.

In 2005 and 2006, tensions rose between Bainimarama and Qarase over legislation proposed by the Qarase government concerning land ownership, traditional non-public ownership of the foreshore, and a reconciliation bill that opened the possibility to grant immunity to some coup participants from 2000. Bainimarama began to make demands and threats, and engaged in shows of military force to intimidate the Qarase government into backing away from the controversial policies. When the Qarase government did not accede to all military demands, on December 5, 2006, Bainimarama assumed the powers of the presidency, dismissed Parliament, and declared a temporary military government.

Commodore Bainimarama's interim government has pursued what he terms a "clean-up campaign" to root out what he considers to be large-scale corruption in Fiji. A number of civil servants, including the Chief Justice, were summarily suspended or dismissed due to unidentified corruption concerns. Many individuals who spoke out against the coup were taken to military camps where they were questioned and sometimes abused.

ECONOMY

Fiji is one of the more developed of the Pacific island economies, although it remains a developing country with a large subsistence agriculture sector. For many years sugar and textile exports drove Fiji's economy. However, neither industry is competing effectively in globalized markets. Fiji's sugar industry suffers from quality concerns, poor administration, and the phasing out of a preferential price agreement with the European Union beginning in 2006/2007. The European Union has promised a large amount of financial aid to assist the ailing sugar industry, but, post-coup, has clarified that the aid will only be forthcoming if Fiji cleans up its human rights situation and moves quickly to democracy.

In 2005, the textile industry in Fiji markedly declined following the end of the quota system under the Agreement on Textiles and Clothing (ATC) and the full integration of textiles into WTO General Agreement on Trade and Tariffs. The income from garments plummeted by 43% in 2005 with the end of the ATC quotas. Garments now account for approximately 12% of Fiji's exports and sugar approximately 24%. Other important export crops include coconuts and ginger, although production levels of both are declining. Fiji has extensive mahogany timber reserves, which are only now being exploited. Fishing is an important export and local food source. Gold is also an important, albeit troubled, export industry for Fiji.

The most important manufacturing activities are the processing of sugar and fish. Since 2000 the export of still mineral water, mainly to the United States, has expanded rapidly. By the end of 2006, water exports totaled around U.S. $52 million per year, an increase of 28% over 2005 and an increase of 775% since 2000.

During 2007, GDP declined by 3.9%, largely as a result of the December 2006 coup. GDP growth rate in 2006 was 1.7%.

In recent years, growth in Fiji has been largely driven by a strong tourism industry. Tourism expanded rapidly since the early 1980s and is the leading economic activity in the islands. However, the December 2006 coup led to an overall decline in tourist arrivals during 2007. About one-third of Fiji's visitors come from Australia, with large contingents also coming from New Zealand, the United States, the United Kingdom, and Japan. In 2005, more than 70,000, or around 13%, of the tourists were American, a number that had steadily increased since the start of regularly scheduled nonstop air service from Los Angeles. In 2004, Fiji's gross earnings from tourism were about $418 million, an amount double the revenue from its two largest goods exports (sugar and garments). Gross earnings from tourism continue to be Fiji's major source of foreign currency.

Fiji runs a persistently large trade deficit, F$1.94 billion (U.S. $1.17 billion) for 2006, although tourism revenues yield a services surplus. Australia accounts for between 25% and 35% of Fiji's foods trade, with New Zealand, Singapore, the United States, the United Kingdom, and Japan varying year-by-year between 5% and 20% each. Since the 1960s, Fiji has had a high rate of emigration, particularly of Indo-Fijians in search of better economic opportunities. This has been particularly true of persons with education and skills. The economic and political uncertainties following the coups have added to the outward flow by persons of all ethnic groups. In recent years, indigenous Fijians also have begun to emigrate in large numbers, often to seek employment as home health care workers. Remittances from overseas workers, often undocumented, are second only to tourism as a source of foreign exchange earnings.

Inflation has increased during the first months of 2008, reaching 7% at the end of February 2008. This was due to higher oil prices, some increase in duties from the national budget, and some disruptions in local supply of vegetables.

FOREIGN RELATIONS

Fiji has traditionally had close relations with its major trading partners Australia and New Zealand. Currently, a number of countries including Australia, New Zealand, and the United States have placed targeted sanctions on the illegal interim government. Fiji has pursued closer relations with a number of Asian countries, including the People's Republic of China and India.

Since independence, Fiji has been a leader in the South Pacific region. Fiji hosts the secretariat of the 16-nation Pacific Islands Forum, as well as a number of other prestigious regional organizations. In 2002, Fiji hosted the Africa, Caribbean and Pacific (ACP) Summit with more than 80 countries represented. During the ACP Summit, the Nadi Declaration was adopted regarding economic cooperation with the European Union. In July 2003, Fiji hosted the South Pacific Games, a prestigious event that went far beyond athletics and symbolized the country's return to normalcy. In September 2005, Fiji hosted the 51st Commonwealth Parliamentary Association Conference. Fiji became the 127th member of the United Nations on October 13, 1970, and participates actively in the organization. Fiji's contributions to UN peacekeeping are unique for a nation of its size. It maintains about 600 soldiers and police overseas in UN peacekeeping missions, primarily in Iraq, and with MFO Sinai in the Middle East. Fiji also has a number of private citizens working in Iraq and Kuwait, mostly in security services.

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/1834.htm

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

OFFICIAL NAME

Republic of Finland

Geography

Area: 338,144 sq. km. (130,558 sq. miles); about the size of New England, New Jersey, and New York combined.
Cities: Capital--Helsinki (pop. 564,521). Other cities--Espoo (235,000), Tampere (204,000), Vantaa (189,711), Turku (175,286).
Terrain: Low but hilly, more than 70% forested; 188,000 lakes and 179,584 islands, 98,050 of which are in the lakes.
Climate: Northern temperate.

People

Nationality: Noun--Finn(s). Adjective--Finnish.
Population (April 2008): 5.3 million.
Population growth rate (2006): 0.4%.
Ethnic groups: Finns, Swedes, Lapps, Sami, Roma, Tatars.
Religions: Lutheran 82.5%, Orthodox 1.1%.
Languages: Finnish 91.5%, Swedish 5.5% (both official); small Lapp- (0.03%) and Russian-speaking (0.8%) minorities.
Education: Years compulsory--9. Attendance--almost 100%. Literacy--almost 100%.
Health: Infant mortality rate--2.8/1,000 (2006). Life expectancy--males 75.6 yrs., females 82.8 yrs.
Work force (2.65 million; of which 2.44 million are employed): Public services--32.8%; industry--19%; commerce--15.6%; finance, insurance, and business services--13.8%; agriculture and forestry--4.7%; transport and communications--7.4%; construction--6.7%.

Government

Type: Constitutional republic.
Constitution: July 17, 1919; March 2000.
Independence: December 6, 1917.
Branches: Executive--president (chief of state), prime minister (head of government), Council of State (cabinet). Legislative--unicameral parliament. Judicial--Supreme Court, regional appellate courts, local courts.
Subdivisions: Six provinces, provincial self-rule for the Aland Islands.
Political parties: Social Democratic Party, Center Party, National Coalition (Conservative) Party, Leftist Alliance, Swedish People's Party, Green League, Christian Democrats, True Finns.
Suffrage: Universal at 18.

Economy (2007)

GDP: $245.3 billion (EUR 179 billion).
GDP growth rate: 4.4%.
Per capita income: $46,327 (EUR 33,803).
Inflation rate: 2.5% (2007 average); 3.9% (March 2008).
Natural resources: Forests, minerals (copper, zinc, iron), farmland.
Agriculture, forestry, fishing and hunting (2.9% of GDP): Products--meat (pork and beef), grain (wheat, rye, barley, oats), dairy products, potatoes, rapeseed.
Industry (30.1% of GDP): Types--metal (including electronics and electrical equipment) and engineering, forest products, chemicals, shipbuilding, foodstuffs, textiles.
Trade: Exports--$89.7 billion. Major markets--EU 57%, Russia 10.2%, U.S. 6.4%, China 3.3%. Imports--$81.5 billion. Major suppliers--EU 56%, Russia 14.1%, China 7.5%, U.S. 3.4%.

HISTORICAL HIGHLIGHTS

The origins of the Finnish people are still a matter of conjecture, although many scholars argue that their original home was in what is now west-central Siberia. The Finns arrived in their present territory thousands of years ago, pushing the indigenous Lapps into the more remote northern regions. Finnish and Lappish--the language of Finland's small Lapp minority--both are Finno-Ugric languages and are in the Uralic rather than the Indo-European family.

Finland's nearly 700-year association with the Kingdom of Sweden began in 1154 with the introduction of Christianity by Sweden's King Eric. During the ensuing centuries, Finland played an important role in the political life of the Swedish-Finnish realm, and Finnish soldiers often predominated in Swedish armies. Finns also formed a significant proportion of the first "Swedish" settlers in 17th-century America.

Following Finland's incorporation into Sweden in the 12th century, Swedish became the dominant language, although Finnish recovered its predominance after a 19th-century resurgence of Finnish nationalism. Publication in 1835 of the Finnish national epic, The Kalevala--a collection of traditional myths and legends--first stirred the nationalism that later led to Finland's independence from Russia.

In 1809, Finland was conquered by the armies of Czar Alexander I and thereafter remained an autonomous grand duchy connected with the Russian Empire until the end of 1917. On December 6, 1917, shortly after the Bolshevik Revolution in Russia, Finland declared its independence. In 1918, the country experienced a brief but bitter civil war that colored domestic politics for many years. During World War II, Finland fought the Soviet Union twice--in the Winter War of 1939-40 and again in the Continuation War of 1941-44. This was followed by the Lapland War of 1944-45, when Finland fought against the Germans as they withdrew their forces from northern Finland.

During the Continuation War (1941-1944) Finland was a co-belligerent with Germany. However, Finnish Jews were not persecuted. Of the approximately 500 Jewish refugees who arrived in Finland, eight were handed over to the Germans, for which Finland submitted an official apology in 2000. Also during the war, approximately 2,600 Soviet prisoners of war were exchanged for 2,100 Finnish prisoners of war from Germany. In 2003, the Simon Wiesenthal Center submitted an official request for a full-scale investigation by the Finnish authorities of the prisoner exchange. It was established there were about 70 Jews among the extradited prisoners. However, none was extradited as a result of ethnic background or religious belief.

Treaties signed in 1947 and 1948 with the Soviet Union included obligations and restraints on Finland vis-a-vis the U.S.S.R. as well as territorial concessions by Finland; both have been abrogated by Finland since the 1991 dissolution of the Soviet Union (see Foreign Relations).

GOVERNMENT AND POLITICAL CONDITIONS

Finland has a mixed presidential/parliamentary system with executive powers divided between the president, who has primary responsibility for national security and foreign affairs, and the prime minister, who has primary responsibility for all other areas, including EU issues. Under the constitution that took effect in March 2000, the established practice for managing foreign policy is that the president keeps in close touch with the prime minister, the minister for foreign affairs, and other ministers responsible for foreign relations. Constitutional changes strengthened the prime minister--who must enjoy the confidence of the parliament (Eduskunta)--at the expense of the president. Finns enjoy individual and political freedoms, and suffrage is universal at 18. The country's population is relatively ethnically homogeneous. Immigration to Finland has significantly increased over the past decade, although the foreign-born population, estimated at only 2.2% of the total population, is still much lower than in any other EU country. Few tensions exist between the Finnish-speaking majority and the Swedish-speaking minority.

President and cabinet. Elected for a 6-year term, the president:

* Handles foreign policy, except for certain international agreements and decisions of peace or war, which must be submitted to parliament, and EU relations, which are handled by the prime minister;
* Is commander in chief of the armed forces and has wide decree and appointive powers;
* May initiate legislation, block legislation by pocket veto, and call extraordinary parliamentary sessions; and
* Appoints the prime minister and the rest of the cabinet (Council of State). The Council of State is made up of the prime minister and ministers for the various departments of the central government as well as an ex officio member, the Chancellor of Justice. Ministers are not obliged to be members of the Eduskunta and need not be formally identified with any political party.
* The president may, upon proposal of the prime minister and after having heard the parliamentary groups, order parliament to be dissolved, and a new election held.

Parliament. Constitutionally, the 200-member, unicameral Eduskunta is the supreme authority in Finland. It may alter the constitution, bring about the resignation of the Council of State, and override presidential vetoes; its acts are not subject to judicial review. Legislation may be initiated by the president, the Council of State, or one of the Eduskunta members.

The Eduskunta is elected on the basis of proportional representation. All persons 18 or older, except military personnel on active duty and a few high judicial officials, are eligible for election. The regular parliamentary term is 4 years; however, the president may dissolve the Eduskunta and order new elections at the request of the prime minister and after consulting the speaker of parliament.

Judicial system. The judicial system is divided between courts with regular civil and criminal jurisdiction and special courts with responsibility for litigation between the public and the administrative organs of the state. Finnish law is codified. Although there is no writ of habeas corpus or bail, the maximum period of pretrial detention has been reduced to 4 days. The Finnish court system consists of local courts, regional appellate courts, a Supreme Court, and a Supreme Administrative Court.

Administrative divisions. Finland consists of five provinces and the self-ruled province of the Aland Islands. Below the provincial level, the country is divided into cities, townships, and communes administered by municipal and communal councils elected by proportional representation once every 4 years. At the provincial level, the five mainland provinces are administered by provincial boards composed of civil servants, each headed by a governor. The boards are responsible to the Ministry of the Interior and play a supervisory and coordinating role within the provinces.

The island province of Aland is located near the 60th parallel between Sweden and Finland. It enjoys local autonomy and demilitarized status by virtue of an international convention of 1921, implemented most recently by the Act on Aland Self-Government of 1951. The islands are further distinguished by the fact that they are entirely Swedish-speaking. Government is vested in the provincial council, which consists of 30 delegates elected directly by Aland's citizens.

Military. Finland's defense forces consist of 35,000 persons in uniform (26,000 army; 5,000 navy; and 4,000 air force). The country's defense budget equals about 1.3% of GDP. There is universal male conscription under which all men serve from six to 12 months. As of 1995, women were permitted to serve as volunteers. A reserve force ensures that Finland can field 490,000 trained military personnel in case of need.

ECONOMY

Finland has a highly industrialized, free-market economy with a per capita output equal to that of other western economies such as France, Germany, Sweden, or the U.K. The largest sector of the economy is services (64.6%), followed by manufacturing and refining (32.3%). Primary production is at 3.2%.

The Finnish economy has made enormous strides since the severe recession of the early 1990s. Finland successfully joined the euro zone and has outperformed euro-area partners in terms of economic growth and public finance. In the last few years, the Finnish economy has performed reasonably well, and Finland is now into its third year of upswing. The upswing is, however, set to level off in 2008 and GDP growth is estimated to slow from 4.4% in 2007 to 2.8% in 2008. Unemployment decreased significantly from 1994 to 6.9% in 2007 and is expected to drop to 6.2% in 2008. A relatively inflexible labor market and high employer-paid social security taxes hamper growth in employment. Labor bottlenecks are becoming more common in certain sectors, and this will increasingly restrict growth in output in the future. The main constraint to medium-term economic growth will be the drop in the population of working age once the post-war baby boomers reach retirement age.

Exports of goods and services contribute 32% of Finland's GDP. Metals and engineering (including electronics) and timber (including pulp and paper) are Finland's main industries. The United States is Finland's third most important trading partner outside of Europe. With a 3.4% share of imports in 2007, the United States was Finland's ninth-largest supplier. The total value of U.S. exports to Finland in 2007 was $2.7 billion. Major exports from the United States to Finland continue to be machinery, telecommunications equipment and parts, metalliferous ores, road vehicles and transport equipment, computers, peripherals and software, electronic components, chemicals, medical equipment, and some agricultural products. The primary competition for American companies comes from Russia, Germany, Sweden, and China. The main export items from Finland to the United States are electronics, machinery, ships and boats, paper and paperboard, refined petroleum products, telecommunications equipment and parts. In 2007, the United States was Finland's fourth-largest customer after Germany (10.9%), Sweden (10.7%), and Russia (10.2%), with an export share of 6.4%, or $5.7 billion. However, trade is only part of the totality: the 10 biggest Finnish companies in the United States have a combined turnover that is three times the value of Finland's total exports to the United States. About 2.3% of the Finnish GDP comes from exports to the United States.

Except for timber and several minerals, Finland depends on imported raw materials, energy, and some components for its manufactured products. Farms tend to be small, but farmers own sizable timber stands that are harvested for supplementary income in winter. The country's main agricultural products are dairy, meat, and grains. Finland's EU accession has accelerated the process of restructuring and downsizing of this sector.

FOREIGN RELATIONS

Finland's basic foreign policy goal from the end of the Continuation War with the U.S.S.R. in 1944 until 1991 was to avoid great-power conflicts and to build mutual confidence with the Soviet Union. Although the country was culturally, socially, and politically Western, Finns realized they must live in peace with the U.S.S.R. and take no action that might be interpreted as a security threat. The dissolution of the Soviet Union in 1991 opened up dramatic new possibilities for Finland and has resulted in the Finns actively seeking greater participation in Western political and economic structures. Finland joined the European Union in 1995.

Relations With the Soviet Union and With Russia

The principal architect of the post-1944 foreign policy of neutrality was J.K. Paasikivi, who was President from 1946 to 1956. Urho Kekkonen, President from 1956 until 1981, further developed this policy, stressing that Finland should be an active rather than a passive neutral. This policy is now popularly known as the "Paasikivi-Kekkonen Line."

Finland and the U.S.S.R. signed a peace treaty at Paris in February 1947 limiting the size of Finland's defense forces and providing for the cession to the Soviet Union of the Petsamo area on the Arctic coast, the Karelian Isthmus in southeastern Finland, and other territory along the former eastern border. Another provision, terminated in 1956, leased the Porkkala area near Helsinki to the U.S.S.R. for use as a naval base and gave free access to this area across Finnish territory.

The 1947 treaty also called for Finland to pay to the Soviet Union reparations of 300 million gold dollars (amounting to an estimated $570 million in 1952, the year the payments ended). Although an ally of the Soviet Union in World War II, the United States was not a signatory to this treaty because it had not been at war with Finland.

In April 1948, Finland signed an Agreement of Friendship, Cooperation, and Mutual Assistance with the Soviet Union. Under this mutual assistance pact, Finland was obligated--with the aid of the Soviet Union, if necessary--to resist armed attacks by Germany or its allies against Finland or against the U.S.S.R. through Finland. At the same time, the agreement recognized Finland's desire to remain outside great-power conflicts. This agreement was renewed for 20 years in 1955, in 1970, and again in 1983 to the year 2003, although the subsequent dissolution of the Soviet Union led to the agreement's abrogation.

The Finns responded cautiously in 1990-91 to the decline of Soviet power and the U.S.S.R.'s subsequent dissolution. They unilaterally abrogated restrictions imposed by the 1947 and 1948 treaties, joined in voicing Nordic concern over the coup against Soviet leader Mikhail Gorbachev, and gave increasing unofficial encouragement to Baltic independence.

At the same time, by replacing the Soviet-Finnish mutual assistance pact with treaties on general cooperation and trade, Finns put themselves on an equal footing while retaining a friendly bilateral relationship. Finland now is boosting cross-border commercial ties and touting its potential as a commercial gateway to Russia. It has reassured Russia that it will not raise claims for Finnish territory seized by the U.S.S.R. and continues to reaffirm the importance of good bilateral relations.

Multilateral Relations

Finnish foreign policy emphasizes its participation in multilateral organizations. Finland joined the United Nations in 1955 and the EU in 1995. As noted, the country also is a member of the North Atlantic Treaty Organization's (NATO) Partnership for Peace as well as a member in the Euro-Atlantic Partnership Council. As a NATO partner, Finland had 100 troops in Afghanistan as of May 2008.

Finland is well represented in the UN civil service in proportion to its population and belongs to several of its specialized and related agencies. Finnish troops have participated in UN peacekeeping activities since 1956, and the Finns continue to be one of the largest per capita contributors of peacekeepers in the world. Finland is an active participant in the Organization for Security and Cooperation in Europe (OSCE) and in early 1995 assumed the co-chairmanship of the OSCE's Minsk Group on the Nagorno-Karabakh conflict. Finland chairs the OSCE in 2008 and is part of the Chairmanship Troika in 2007 and 2009.

Cooperation with the other Scandinavian countries also is important to Finland, and it has been a member of the Nordic Council since 1955. Under the council's auspices, the Nordic countries have created a common labor market and have abolished immigration controls among themselves. The council also serves to coordinate social and cultural policies of the participating countries and has promoted increased cooperation in many fields.

In addition to the organizations already mentioned, Finland became a member of the following organizations: Bank for International Settlements, 1930; International Monetary Fund, 1948; International Bank for Reconstruction and Development, 1948; General Agreement on Tariffs and Trade (GATT), 1950; International Finance Corporation, 1956; International Development Association, 1960; European Free Trade Association, 1961; Asian Development Bank, 1966; Organization for Economic Cooperation and Development, 1969; Inter-American Development Bank, 1977; African Development Bank, 1982; Multilateral Investment Guarantee Agency, 1988; the Council of Europe, 1989; European Bank for Reconstruction and Development in Central and Eastern Europe, 1991; World Trade Organization, 1995; and INTELSAT, 1999. Finland entered Stage Three of EMU (the European Monetary Union) in 1999. All the Nordic countries, including Finland, joined the Schengen area in March 2001.

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/3238.htm

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

OFFICIAL NAME

French Republic

Geography

Area: 551,670 sq. km. (220,668 sq. mi.); largest west European country, about four-fifths the size of Texas.
Cities: Capital--Paris. Major cities--Marseille, Lyon, Toulouse, Strasbourg, Nice, Rennes, Lille, Bordeaux.
Terrain: Varied.
Climate: Temperate.

People

Nationality: Adjective--French.
Population (January 1, 2008 est.): 63,753,000 (including overseas territories), 61,875,000 (metropolitan).
Annual growth rate (2007 est.): 1.9%.
Ethnic groups: Celtic and Latin with Teutonic, Slavic, North African, Sub-Saharan African, Indochinese, and Basque minorities.
Religion: Roman Catholic 85% (est.), Muslim 10% (est.), Protestant 2%, Jewish 1%.
Language: French.
Education: Years compulsory--10. Literacy--99%.
Health: Infant mortality rate (2007)--4/1,000.
Work force (2007, third quarter): 27.929 million: Services--74.7%; industry and commerce--22.0%; agriculture--3.2%.

Government

Type: Republic.
Constitution: September 28, 1958.
Branches: Executive--president (chief of state); prime minister (head of government). Legislative--bicameral Parliament (577-member National Assembly, 319-member Senate). Judicial--Court of Cassation (civil and criminal law), Council of State (administrative court), Constitutional Council (constitutional law).
Subdivisions: 22 administrative regions containing 96 departments (metropolitan France). Four overseas departments (Guadeloupe, Martinique, French Guiana, and Reunion); five overseas territories (New Caledonia, French Polynesia, Wallis and Futuna Islands, and French Southern and Antarctic Territories); and two special status territories (Mayotte and St. Pierre and Miquelon). The government is considering measures to abolish the departmental system.
Political parties: Union for a Popular Majority (UMP--a synthesis of center-right Gaullist/nationalist and free-market parties); Socialist Party; New Center (former UDF centrists now affiliated with the UMP; Modern Democracy (former UDF centrists loyal to new MoDem President Francois Bayrou); Communist Party; extreme right National Front; Greens; various minor parties.
Suffrage: Universal at 18.

Economy

GDP (2006): $2.252 trillion.
Avg. annual growth rate (2007): 1.8%, compared with 2.25% in 2006.
Per capita GDP at PPP (2006): $33,800.
Agriculture: Products--grains (wheat, barley, corn); wines and spirits; dairy products; sugar beets; oilseeds; meat and poultry; fruits and vegetables.
Industry: Types--aircraft, electronics, transportation, textiles, clothing, food processing, chemicals, machinery, steel.
Trade (est.): Exports (first 11 months of 2007)--$503.3 billion (f.o.b.): automobiles, aircraft and aircraft components, pharmaceuticals, automobile equipment, pharmaceuticals, automobile equipment, iron and steel products, refined petroleum products, cosmetics, organic chemicals, electronic components, wine and champagne. Imports (first 11 months of 2007)--$551.2 billion (f.o.b.): oil and natural gas, automobiles, aircraft and aircraft components, refined petroleum products, automobile equipment, pharmaceuticals, iron and steel products, and computers/computer-related products. Major trading partners--EU and U.S.
Exchange rate: U.S. $1=0.7964 in 2006, and 0.7297 in 2007.

PEOPLE

Since prehistoric times, France has been a crossroads of trade, travel, and invasion. Three basic European ethnic stocks--Celtic, Latin, and Teutonic (Frankish)--have blended over the centuries to make up its present population. France's birth rate was among the highest in Europe from 1945 until the late 1960s. Since then, its birth rate has fallen but remains higher than that of most other west European countries. Traditionally, France has had a high level of immigration. More than 1 million Muslims immigrated in the 1960s and early 1970s from North Africa, especially Algeria. About 85% of the population is Roman Catholic, 10% Muslim, less than 2% Protestant, and about 1% Jewish. However, the government does not keep statistics on religious affiliation, and according to a January 2007 poll, 51% of respondents describe themselves as Catholic, and another 31% describe themselves as having no religious affiliation. In 2004, there were over 6 million Muslims, largely of North African descent, living in France. France is home to both the largest Muslim and Jewish populations in Europe.

Education is free, beginning at age 2, and mandatory between ages 6 and 16. The public education system is highly centralized. Private education is primarily Roman Catholic. Higher education in France began with the founding of the University of Paris in 1150. It now consists of 91 public universities and 175 professional schools, including the post-graduate Grandes Ecoles. Private, college-level institutions focusing on business and management with curriculums structured on the American system of credits and semesters have been growing in recent years.

The French language derives from the vernacular Latin spoken by the Romans in Gaul, although it includes many Celtic and Germanic words. Historically, French has been used as the international language of diplomacy and commerce. Today it remains one of six official languages at the United Nations and has been a unifying factor in Africa, Asia, the Pacific, and the Caribbean.

HISTORY

France was one of the earliest countries to progress from feudalism to the nation-state. Its monarchs surrounded themselves with capable ministers, and French armies were among the most innovative, disciplined, and professional of their day. During the reign of Louis XIV (1643-1715), France was the dominant power in Europe. But overly ambitious projects and military campaigns of Louis and his successors led to chronic financial problems in the 18th Century. Deteriorating economic conditions and popular resentment against the complicated system of privileges granted the nobility and clerics were among the principal causes of the French Revolution (1789-94). Although the revolutionaries advocated republican and egalitarian principles of government, France reverted to forms of absolute rule or constitutional monarchy four times--the Empire of Napoleon, the Restoration of Louis XVIII, the reign of Louis-Philippe, and the Second Empire of Napoleon III. After the Franco-Prussian War (1870), the Third Republic was established and lasted until the military defeat of 1940.

World War I (1914-18) brought great losses of troops and materiel. In the 1920s, France established an elaborate system of border defenses (the Maginot Line) and alliances to offset resurgent German strength. France was defeated early in World War II, however, and was occupied in June 1940. That July, the country was divided into two: one section being ruled directly by the Germans, and a second controlled by the French ("Vichy" France) and which the Germans did not occupy. German and Italian forces occupied all of France, including the "Vichy" zone, following the Allied invasion of North Africa in November 1942. The "Vichy" government largely acquiesced to German plans, namely in the plunder of French resources and the forceful deportations of tens of thousands of French Jews living in France to concentration camps across Europe, and was even more completely under German control following the German military occupation of November 1942. Economically, a full one-half of France's public sector revenue was appropriated by Germany. After 4 years of occupation and strife in France, Allied forces liberated the country in 1944.

France emerged from World War II to face a series of new problems. After a short period of provisional government initially led by Gen. Charles de Gaulle, the Fourth Republic was set up by a new constitution and established as a parliamentary form of government controlled by a series of coalitions. French military involvement in both Indochina and Algeria combined with the mixed nature of the coalitions and a consequent lack of agreement caused successive cabinet crises and changes of government.

Finally, on May 13, 1958, the government structure collapsed as a result of the tremendous opposing pressures generated by four years of war with Algeria. A threatened coup led the Parliament to call on General de Gaulle to head the government and prevent civil war. Marking the beginning of the Fifth Republic, he became prime minister in June 1958 and was elected president in December of that year. The Algerian conflict also spurred decades of increased immigration from the Maghreb states, changing the composition of French society.

Seven years later, for the first time in the 20th Century, the people of France went to the polls to elect a president by direct ballot. De Gaulle won re-election with a 55% share of the vote, defeating Francois Mitterrand. In April 1969, President de Gaulle's government conducted a national referendum on the creation of 21 regions with limited political powers. The government's proposals were defeated, and de Gaulle subsequently resigned. Succeeding him as president of France have been Gaullist Georges Pompidou (1969-74), Independent Republican Valery Giscard d'Estaing (1974-81), Socialist Francois Mitterrand (1981-95), neo-Gaullist Jacques Chirac (1995-2007), and center-right Nicolas Sarkozy (2007-present).

While France continues to revere its rich history and independence, French leaders are increasingly tying the future of France to the continued development of the European Union (EU). France was integral in establishing the European Coal and Steel Community in 1951 and was among the EU's six founding states. During his tenure, President Mitterrand stressed the importance of European integration and advocated the ratification of the Maastricht Treaty on European economic and political union, which France's electorate narrowly approved in September 1992. The center of domestic attention soon shifted, however, to the economic reform and belt-tightening measures required for France to meet the criteria for Economic and Monetary Union (EMU) laid out by the Maastricht Treaty.

Since the September 11, 2001 attacks in the U.S., France has played a central role in the war on terrorism. French forces participate in Operation Enduring Freedom and in the International Security Assistance Force (ISAF) for Afghanistan. France did not, however, join the coalition that liberated Iraq in 2003. In October and November 2005, three weeks of violent unrest in the largely immigrant suburbs focused French attention further on their minority communities. Also in 2005 French voters disapproved the EU constitution in a national referendum. In the spring of 2006, students protested widely over restrictive employment legislation.

In May 2007, Nicolas Sarkozy was elected as France's sixth president under the Fifth Republic, signaling French approval of widespread economic and social reforms, as well as closer cooperation with the United States.

GOVERNMENT

The constitution of the Fifth Republic was approved by public referendum on September 28, 1958. It greatly strengthened the powers of the executive in relation to those of Parliament. Under this constitution, presidents were elected directly for a 7-year term since 1958. Beginning in 2002, the presidential term of office was reduced to 5 years. The president names the prime minister, presides over the cabinet, commands the armed forces, and concludes treaties. Traditionally, presidents under the Fifth Republic have tended to leave day-to-day policy-making to the Prime Minister and government; the five-year term of office is expected to make presidents more accountable for the results of domestic policies. Sarkozy, however, has been a hands-on manager and policymaker.

The president can submit questions to a national referendum and can dissolve the National Assembly. In certain emergency situations, with the approval of parliament, the president may assume dictatorial powers and rule by decree. The main components of France's executive branch are the president, the prime minister and government, and the permanent bureaucracies of the many ministries. Led by a prime minister, who is the head of government, the cabinet is composed of a varying number of ministers, ministers-delegate, and secretaries of state. Parliament meets for one 9-month session each year. Under special circumstances the president can call an additional session.

Under the Constitution, the legislative branch has few checks on executive power; nevertheless, the National Assembly can still cause a government to fall if an absolute majority of the total Assembly membership votes to censure. The Parliament is bicameral with a National Assembly and a Senate. The National Assembly is the principal legislative body. Its deputies are directly elected to 5-year terms, and all seats are voted on in each election. Senators are chosen by an electoral college and, under new rules passed in 2003 to shorten the term, serve for six years, with one-half of the Senate being renewed every three years. (As a transitional measure in 2004, 62 Senators were elected to 9-year terms, while 61 were elected to 6-year terms; subsequently, all terms will be six years.) The Senate's legislative powers are limited; the National Assembly has the last word in the event of a disagreement between the two houses. The government has a strong influence in shaping the agenda of Parliament. The government also can declare a bill to be a question of confidence, thereby linking its continued existence to the passage of the legislative text; unless a motion of censure is introduced and voted, the text is considered adopted without a vote.

A distinctive feature of the French judicial system is that the Constitutional Council protects basic rights when they might be potentially violated by new laws and the Council of State protects basic rights when they might be violated by actions of the state. The Constitutional Council examines legislation and decides whether it conforms to the constitution. Unlike the U.S. Supreme Court, it considers only legislation that is referred to it by Parliament, the prime minister, or the president. Moreover, it considers legislation before it is promulgated. The Council of State has a separate function from the Constitutional Council and provides recourse to individual citizens who have claims against the administration. The Ordinary Courts--including specialized bodies such as the police court, the criminal court, the correctional tribunal, the commercial court, and the industrial court--settle disputes that arise between citizens, as well as disputes that arise between citizens and corporations. The Court of Appeals reviews cases judged by the Ordinary Courts.

Traditionally, decision-making in France has been highly centralized, with each of France's departments headed by a prefect appointed by the central government. In 1982, the national government passed legislation to decentralize authority by giving a wide range of administrative and fiscal powers to local elected officials. In March 1986, regional councils were directly elected for the first time, and the process of decentralization continues, albeit at a slow pace.

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

ECONOMY

With a GDP of approximately $2 trillion, France is the sixth-largest economy. It has substantial agricultural resources, a large industrial base, and a highly skilled work force. A dynamic services sector accounts for an increasingly large share of economic activity and is responsible for nearly all job creation in recent years. Real GDP increased 2.2% in 2006. According to initial projections, 2007 GDP growth will hit 1.9%,

Government economic policy aims to promote investment and domestic growth in a stable fiscal and monetary environment. Creating jobs and reducing the high unemployment rate through recovery-supportive policy has been a top priority. The unemployment rate in metropolitan France slipped to 7.9% in the third quarter of 2007 from 8.1% in the second quarter of 2007 when the government took office, and from 8.9% in the third quarter of 2006. France joined 10 other European Union countries in adopting the euro as its currency in January 1999. Since then, monetary policy has been set by the European Central Bank in Frankfurt. On January 1, 2002, France, along with the other countries of the euro zone, dropped its national currency in favor of euro bills and coins.

Despite significant reform and privatization over the past 15 years, the government continues to control a large share of economic activity: Government spending, at 53.5% of GDP in 2006, is among the highest in the G-7. Regulation of labor and product markets is pervasive. The government continues to own shares in corporations in a range of sectors, including banking, energy production and distribution, automobiles, transportation, and telecommunications.

Legislation passed in 1998 shortened the legal work week from 39 to 35 hours for most employees effective January 1, 2000. Recent assessments of the impact of work week reduction on growth and jobs have generally concluded that the goal of job creation was not met. The former administration introduced increasing flexibility into the law. Under President Nicolas Sarkozy's impetus, overtime work is exempted from income taxes and payroll taxes as of October 1, 2007, a move to encourage work and to increase work time. The business community welcomed government efforts to change the 35-hour work week, but has complained that measures are difficult to implement.

Membership in France's labor unions accounts for approximately 5% of the private sector work force and is concentrated in the manufacturing, transportation, and heavy industry sectors. Most unions are affiliated with one of the competing national federations, the largest and most powerful of which are the communist-dominated General Labor Confederation (CGT), the Workers' Force (FO), and the French Democratic Confederation of Labor (CFDT).

France has been very successful in developing dynamic telecommunications, aerospace, and weapons sectors. With virtually no domestic oil production, France has relied heavily on the development of nuclear power, which now accounts for about 80% of the country's electricity production.

Trade

France is the second-largest trading nation in Western Europe (after Germany). France ran a record-setting $48 billion deficit for the 12 months ending in November 2007. Total trade for 2006 amounted to $1,010.7 billion, over 45% of GDP, 75.0% of which was with EU-24 countries. In 2006, U.S.-France trade in goods and services totaled $91.6 billion. U.S. industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and programming and franchising are particularly attractive to French importers. Total French trade of goods and services was $1,118 billion in 2006.

Principal French exports to the United States are aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, and luxury products. France is the eighth-largest trading partner of the United States.

Agriculture

France is the European Union's leading agricultural producer, accounting for about one-third of all agricultural land within the EU. Northern France is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central France, while the production of fruits, vegetables, and wine ranges from central to southern France. France is a large producer of many agricultural products and is expanding its forestry and fishery industries. The implementation of the Common Agricultural Policy (CAP) and the Uruguay Round of the GATT Agreement resulted in reforms in the agricultural sector of the economy. Continued revision of the CAP and reforms agreed under the Doha round of World Trade Organization (WTO) will further change French agriculture. France remains Europe's strongest opponent of genetically modified organisms (GMOs) and often assumes an agricultural position at the EU Council to promote this policy.

France is the world's second-largest agricultural producer, after the United States. However, the destination of 70% of its exports is other EU member states. Wheat, beef, pork, poultry, and dairy products are the principal exports. The United States, although the second-largest exporter to France, faces stiff competition from domestic production, other EU member states, and third countries. U.S. agricultural exports to France, totaling $464 million in 2003, consist primarily of soybeans and products, feeds and fodders, seafood, and consumer oriented products, especially snack foods and nuts. French agricultural exports to the United States are mainly cheese, processed products, and wine. They amount to about $3.327 billion (2006) annually.

FOREIGN RELATIONS

France plays an influential global role as a permanent member of the United Nations Security Council, NATO, the G-8, the EU, the Organization for Security and Cooperation in Europe (OSCE), the WTO, la Francophonie and other multilateral institutions. Among NATO members, France is second only to the United States in terms of troops deployed abroad. The French will take over the rotating EU presidency from July-December 2008 and plan to focus on immigration, energy, the environment, and European defense during their term.

A charter member of the United Nations, France is a member of most of its specialized and related agencies. France is also America's oldest ally; French military intervention was instrumental in helping Britain's American colonies establish independence. Because many battles in which the United States was involved during World War I and World War II took place in France, more American soldiers have been killed on French soil than on that of any other foreign country.

France is a leader in Western Europe because of its size, location, and large economy, membership in European organizations, strong military posture, and energetic diplomacy. France generally has worked to strengthen the global economic and political influence of the EU and its role in common European defense. It views Franco-German cooperation and the development of a European Security and Defense Policy (ESDP) with other EU members, as the foundation of efforts to enhance European security.

France supports Quartet (U.S.-EU-Russia-UN) efforts to implement the Middle East roadmap, which envisions establishment of a Palestinian state, living side-by-side in peace and security with Israel. Recognizing the need for a comprehensive peace agreement, France supports the involvement of all Arab parties and Israel in a multilateral peace process.

Since 2003, France has supported four UN Security Council (UNSC) resolutions on Iraq, including UNSCR 1546, which laid out a timetable for Iraq's political transition and reaffirmed UNSC authorization for a Multinational Force in Iraq, at the invitation of the Iraqi government, to stabilize the country. France contributed to the 230 million euro EU contribution to Iraq reconstruction in 2003. After the Iraqi Interim Government took power, France agreed to substantial debt relief and offered police training to Iraqi security forces. In 2006, France and the U.S. collaborated closely to create a consensus in the UN to adopt UNSCR 1696 demanding action from Iran to end its enrichment-related and preprocessing activities. France has actively and repeatedly publicly stressed the danger of a nuclear-armed Iran.

France continues to play an important role in Africa, especially in its former colonies, through aid programs, commercial activities, military agreements, and cultural impact. In those former colonies where the French presence remains important, France has supported political, military, and social stability. France maintains permanent military bases in Cote d'Ivoire, Djibouti, Gabon, and Senegal, and has maintained a long-term military presence in Chad. An attack on French forces in Cote d'Ivoire in 2004 led to the departure of thousands of French nationals from that country. France responded to the crisis in Cote d'Ivoire by dispatching Operation Unicorn, which has worked with UN forces to help stabilize Cote d'Ivoire. France has also deployed forces to Togo (in support of Operation Unicorn in Cote d'Ivoire) and to the Central African Republic, where French forces have assisted government forces in deterring rebel elements. France participated with EU partners in an international military operation (EUFOR) in the Democratic Republic of the Congo in 2006, which played an important presence during in elections that year in the D.R.C. France was instrumental in organizing the June 2007 ministerial conference on Darfur and has taken the lead on the UN peacekeeping mission for Chad and the C.A.R.

France has extensive political and commercial relations with Asian countries, including China, Japan, and Southeast Asia as well as an increasing presence in regional fora. France is seeking to broaden its commercial presence in China and will pose a competitive challenge to U.S. business, particularly in aerospace, high-tech, and luxury markets. In Southeast Asia, France was an architect of the 1991 Paris Accords, which ended the conflict in Cambodia.

Security Issues

French military doctrine is based on the concepts of national independence, nuclear deterrence, and military sufficiency. France is a founding member of the North Atlantic Treaty Organization (NATO), and has worked actively with Allies to adapt NATO, internally and externally, to the post-Cold War environment. However, in 1966, the French withdrew from NATO's military bodies while remaining full participants in the alliance's political councils. In December 1995, France announced that it would increase its participation in NATO's military wing, including the Military Committee. President Sarkozy has publicly expressed support for the principle of French reintegration into NATO. France is currently preparing a defense white paper that will review France's security requirements. France remains a firm supporter of the OSCE and other efforts at cooperation.

Outside of NATO, France has actively and heavily participated in a variety of peacekeeping/coalition efforts in Africa, the Middle East, and the Balkans, often taking the lead in these operations. France has undertaken a major restructuring to develop a professional military that will be smaller, more rapidly deployable and better tailored for operations outside of mainland France. Key elements of the restructuring include reducing personnel, bases, and headquarters and rationalizing equipment and the armament industry. French active-duty military in June 2007 numbered about 350,000 (including Gendarmes), of which nearly 39,900 were deployed outside of French territory. France completed the move to all-professional armed forces when conscription ended on December 31, 2002.

France places a high priority on arms control and non-proliferation. After conducting a final series of six nuclear tests, the French signed the Comprehensive Test Ban Treaty in 1996. France has implemented a moratorium on the production, export, and use of anti-personnel landmines and supports negotiations leading toward a universal ban. France is an active participant in the major supplier regimes designed to restrict transfer of technologies that could lead to proliferation of weapons of mass destruction: the Nuclear Suppliers Group, the Australia Group (for chemical and biological weapons), the Non-Proliferation Treaty, and the Missile Technology Control Regime. France participates actively in the Proliferation Security Initiative, and is engaged with the U.S., both bilaterally and at the International Atomic Energy Agency (IAEA) and Organization for the Prohibition of Chemical Weapons (OPCW), to curb nuclear, biological, and chemical (NBC) proliferation from the D.P.R.K., Iran, Libya, and elsewhere. France has joined with the U.S., Germany, and the other three permanent members of the UN Security Council to offer a package of incentives and disincentives to Iran to halt its uranium enrichment activities. France has also signed and ratified the Chemical Weapons Convention. France maintains a color-coded security system, similar to that of the U.S., consisting of yellow, orange, red and scarlet threat levels.

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/3842.htm

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

OFFICIAL NAME

Gabonese Republic

Geography

Area: 267,667 sq. km. (103,347 sq. mi.); about the size of Colorado.
Cities: Capital--Libreville (pop. 673,995). Other cities--Port-Gentil (118,940), Franceville.
Terrain: Narrow coastal plain; hilly, heavily forested interior (about 80% forested); some savanna regions in east and south.
Climate: Hot and humid all year with two rainy and two dry seasons.

People

Nationality: Noun and adjective--Gabonese (sing. and pl.).
Population (July 2007 est.): 1,454,867.
Annual growth rate (2007 est.): 2.036%.
Ethnic groups: Fang (largest), Myene, Bapounou, Eshira, Bandjabi, Bakota, Nzebi, Bateke/Obamba.
Religions: Christian (55%-75%), Muslim, animist.
Languages: French (official), Fang, Myene, Bateke, Bapounou/Eschira, Bandjabi.
Education: Years compulsory--to age 16. Attendance--60%. Literacy--63%.
Health: Infant mortality rate--54/1,000. Life expectancy--54 yrs.
Work force (500,000 est.): Agriculture--52%; industry and commerce--16%; services and government--33%.

Government

Type: Republic.
Independence: August 17, 1960.
Constitution: February 21, 1961 (revised April 15, 1975; rewritten March 26, 1991; revised July 29, 2003).
Branches: Executive--president (head of state); prime minister (head of government) and appointed Council of Ministers. Legislative--bicameral legislature (National Assembly and Senate). Judicial--Supreme Court.
Administrative subdivisions: 9 provinces, 36 prefectures, and 8 subprefectures.
Political parties: Parti Democratique Gabonais (PDG) holds the largest number of seats in the National Assembly; there are several others.
Suffrage: Universal, direct.
Central government budget (2001 est.): Receipts--$1.6 billion; expenses--$1.2 billion; defense (1999)--3.0% of government budget.

Economy

GDP (2006 est.): $7.052 billion.
Annual real growth rate (2006 est.): 2.8%.
Per capita income (2006 est.): $7,200.
Avg. inflation rate (2006 est.): 2.2%.
Natural resources: Petroleum (43% of GDP), timber, manganese, uranium.
Agriculture and forestry (5.9% of GDP): Products--cocoa, coffee, rubber, sugar, and pineapples. Cultivated land--1%.
Industry (59.7% of GDP): Types--petroleum related, wood processing, food and beverage processing.
Services (25% of GDP).
Trade (2006): Exports--$6.677 billion (f.o.b.): petroleum, wood, manganese. Major markets--U.S. 53%, China 8.5%, France 7.4%, EU, Asia. Imports--$1.607 billion (f.o.b.): construction equipment, machinery, food, automobiles, manufactured goods. Major suppliers--France 43%, U.S. 6.3%, U.K. 5.8%, Netherlands 4%. Current account balance (2006 est.)--$1.807 billion.

PEOPLE

Almost all Gabonese are of Bantu origin. Gabon has at least 40 ethnic groups, with separate languages and cultures. The largest is the Fang (about 30%). Other ethnic groups include the Myene, Bandjabi, Eshira, Bapounou, Bateke/Obamba, Nzebi, and Bakota. Ethnic group boundaries are less sharply drawn in Gabon than elsewhere in Africa. French, the official language, is a unifying force. More than 12,000 French people live in Gabon, including an estimated 2,000 dual nationals, and France dominates foreign cultural and commercial influences. Historical and environmental factors caused Gabon's population to decline between 1900 and 1940. It is one of the least densely inhabited countries in Africa, and a labor shortage is a major obstacle to development and a draw for foreign workers. The population is generally accepted to be just over 1 million but remains in dispute.

HISTORY

During the last seven centuries, Bantu ethnic groups arrived in the area from several directions to escape enemies or find new land. Little is known of tribal life before European contact, but tribal art suggests rich cultural heritages. Gabon's first European visitors were Portuguese traders who arrived in the 15th century and named the country after the Portuguese word "gabao," a coat with sleeve and hood resembling the shape of the Komo River estuary. The coast became a center of the slave trade. Dutch, British, and French traders came in the 16th century. France assumed the status of protector by signing treaties with Gabonese coastal chiefs in 1839 and 1841. American missionaries from New England established a mission at Baraka (now Libreville) in 1842. In 1849, the French captured a slave ship and released the passengers at the mouth of the Komo River. The slaves named their settlement Libreville--"free town." An American, Paul du Chaillu, was among the first foreigners to explore the interior of the country in the 1850s. French explorers penetrated Gabon's dense jungles between 1862 and 1887. The most famous, Savorgnan de Brazza, used Gabonese bearers and guides in his search for the headwaters of the Congo River. France occupied Gabon in 1885 but did not administer it until 1903. In 1910, Gabon became one of the four territories of French Equatorial Africa, a federation that survived until 1959. The territories became independent in 1960 as the Central African Republic, Chad, Congo (Brazzaville), and Gabon.

At the time of Gabon's independence in 1960, two principal political parties existed: the Bloc Democratique Gabonais (BDG), led by Leon M'Ba, and the Union Democratique et Sociale Gabonaise (UDSG), led by J.H. Aubame. In the first post-independence election, held under a parliamentary system, neither party was able to win a majority. The BDG obtained support from three of the four independent legislative deputies, and M'Ba was named Prime Minister. Soon after concluding that Gabon had an insufficient number of people for a two-party system, the two party leaders agreed on a single list of candidates. In the February 1961 election, held under the new presidential system, M'Ba became President and Aubame became Foreign Minister.

This one-party system appeared to work until February 1963, when the larger BDG element forced the UDSG members to choose between a merger of the parties or resignation. The UDSG cabinet ministers resigned, and M'Ba called an election for February 1964 and a reduced number of National Assembly deputies (from 67 to 47). The UDSG failed to muster a list of candidates able to meet the requirements of the electoral decrees. When the BDG appeared likely to win the election by default, the Gabonese military toppled M'Ba in a bloodless coup on February 18, 1964. French troops re-established his government the next day. Elections were held in April 1964 with many opposition participants. BDG-supported candidates won 31 seats and the opposition 16. Late in 1966, the constitution was revised to provide for automatic succession of the vice president should the president die in office. In March 1967, Leon M'Ba and Omar Bongo (then Albert Bongo) were elected President and Vice President. M'Ba died later that year, and Omar Bongo became President.

In March 1968, Bongo declared Gabon a one-party state by dissolving the BDG and establishing a new party--the Parti Democratique Gabonais (PDG). He invited all Gabonese, regardless of previous political affiliation, to participate. Bongo was elected President in February 1975; in April 1975, the office of vice president was abolished and replaced by the office of prime minister, who had no right to automatic succession. Bongo was re-elected President in December 1979 and November 1986 to 7-year terms. Using the PDG as a tool to submerge the regional and tribal rivalries that divided Gabonese politics in the past, Bongo sought to forge a single national movement in support of the government's development policies.

Economic discontent and a desire for political liberalization provoked violent demonstrations and strikes by students and workers in early 1990. In response to grievances by workers, Bongo negotiated with them on a sector-by-sector basis, making significant wage concessions. In addition, he promised to open up the PDG and to organize a national political conference in March-April 1990 to discuss Gabon's future political system. The PDG and 74 political organizations attended the conference. Participants essentially divided into two loose coalitions, the ruling PDG and its allies, and the United Front of Opposition Associations and Parties, consisting of the breakaway Morena Fundamental and the Gabonese Progress Party.

The April 1990 conference approved sweeping political reforms, including creation of a national Senate, decentralization of the budgetary process, freedom of assembly and press, and cancellation of the exit visa requirement. In an attempt to guide the political system's transformation to multiparty democracy, Bongo resigned as PDG chairman and created a transitional government headed by a new Prime Minister, Casimir Oye-Mba. The Gabonese Social Democratic Grouping (RSDG), as the resulting government was called, was smaller than the previous government and included representatives from several opposition parties in its cabinet. The RSDG drafted a provisional constitution in May 1990 that provided a basic bill of rights and an independent judiciary but retained strong executive powers for the president. After further review by a constitutional committee and the National Assembly, this document came into force in March 1991. Under the 1991 constitution, in the event of the president's death, the prime minister, the National Assembly president, and the defense minister were to share power until a new election could be held.

Opposition to the PDG continued, however, and in September 1990, two coup d'etat attempts were uncovered and aborted. Despite anti-government demonstrations after the untimely death of an opposition leader, the first multiparty National Assembly elections in almost 30 years took place in September-October 1990, with the PDG garnering a large majority.

Following President Bongo's re-election in December 1993 with 51% of the vote, opposition candidates refused to validate the election results. Serious civil disturbances led to an agreement between the government and opposition factions to work toward a political settlement. These talks led to the Paris Accords in November 1994, under which several opposition figures were included in a government of national unity. This arrangement soon broke down, however, and the 1996 and 1997 legislative and municipal elections provided the background for renewed partisan politics. The PDG won a landslide victory in the legislative election, but several major cities, including Libreville, elected opposition mayors during the 1997 local election.

Facing a divided opposition, President Bongo coasted to easy re-election in December 1998, with large majorities of the vote. While Bongo's major opponents rejected the outcome as fraudulent, some international observers characterized the results as representative despite any perceived irregularities, and there were none of the civil disturbances that followed the 1993 election. Peaceful though flawed legislative elections held in 2001-02, which were boycotted by a number of smaller opposition parties and were widely criticized for their administrative weaknesses, produced a National Assembly almost completely dominated by the PDG and allied independents. In November 2005, President Bongo was elected for his sixth term. He won re-election easily, but opponents claim that the balloting process was marred by irregularities. There were some instances of violence following the announcement of Bongo's win, but Gabon generally remained peaceful.

National Assembly elections were held again in December 2006. Several seats contested because of voting irregularities were overturned by the Constitutional Court, but the subsequent run-off elections in early 2007 again yielded a PDG-controlled National Assembly.

GOVERNMENT AND POLITICAL CONDITIONS

Under the 1961 constitution (revised in 1975, rewritten in 1991, and revised in 2003), Gabon is a republic with a presidential form of government. The National Assembly has 120 deputies elected for a 5-year term. The president is elected by universal suffrage for a 7-year term. The president can appoint and dismiss the prime minister, the cabinet, and judges of the independent Supreme Court. The president also has other strong powers, such as authority to dissolve the National Assembly, declare a state of siege, delay legislation, and conduct referenda. A 2003 constitutional amendment removed presidential term limits and facilitated a presidency for life.

In 1990 the government made major changes to Gabon's political system. A transitional constitution was drafted in May 1990 as an outgrowth of the national political conference in March-April and later revised by a constitutional committee. Among its provisions were a Western-style bill of rights, creation of a National Council of Democracy to oversee the guarantee of those rights, a governmental advisory board on economic and social issues, and an independent judiciary. After approval by the National Assembly, the PDG Central Committee, and the President, the Assembly unanimously adopted the constitution in March 1991. Multiparty legislative elections were held in 1990-91, despite the fact that opposition parties had not been declared formally legal.

The elections produced the first representative, multiparty National Assembly. In January 1991, the Assembly passed by unanimous vote a law governing the legalization of opposition parties. After President Bongo was re-elected in a disputed election in 1993 with 51% of votes cast, social and political disturbances led to the 1994 Paris Conference and Accords, which provided a framework for the next elections. Local and legislative elections were delayed until 1996-97. In 1997, constitutional amendments were adopted to create an appointed Senate and the position of vice president, and to extend the president's term to 7 years.

For administrative purposes, Gabon is divided into 9 provinces, which are further divided into 36 prefectures and 8 separate subprefectures. The president appoints the provincial governors, the prefects, and the subprefects.

ECONOMY

Gabon's economy is dominated by oil. Oil revenues comprise 65% of the Government of Gabon budget, 43% of gross domestic product (GDP), and 81% of exports. Oil production is now declining rapidly from its high point of 370,000 barrels per day in 1997. In spite of the decreasing oil revenues, little planning has been done for an after-oil scenario. Gabon public expenditures from the years of significant oil revenues were not spent efficiently. Overspending on the Transgabonais railroad, the oil price shock of 1986, the CFA franc devaluation of 1994, and low oil prices in the late 1990s caused serious debt problems. Gabon has earned a poor reputation with the Paris Club and the International Monetary Fund (IMF) for the management of its debt and revenues. Successive IMF missions have criticized the government for overspending on off-budget items (in good years and bad), over-borrowing from the Central Bank, and slipping on the schedule for privatization and administrative reform. In September 2005, Gabon successfully concluded a 15-month Stand-By Arrangement with the IMF. Following this, Gabon sought a multi-year successor arrangement.

Gabon's oil revenues have given it a strong per capita GDP of $7,200, extremely high for the region. On the other hand, a skewed income distribution and poor social indicators are evident. The richest 20% of the population receives over 90% of the income, and about a third of Gabonese live in poverty. The economy is highly dependent on extraction of abundant primary materials. After oil, logging and manganese mining are the other major sectors. Foreign and Gabonese observers have consistently lamented the lack of transformation of primary materials in the Gabonese economy. Various factors have so far stymied more diversification--small market of 1 million people, dependence on French imports, inability to capitalize on regional markets, lack of entrepreneurial zeal among the Gabonese, and the fairly regular stream of oil "rent". The small processing and service sectors are largely dominated by just a few prominent local investors. At World Bank and IMF insistence, the government embarked on a program of privatization of its state-owned companies and administrative reform, including reducing public sector employment and salary growth, but progress has been slow.

DEFENSE

Gabon has a small, professional military of about 10,000 personnel, divided into army, navy, air force, gendarmerie, and national police. Gabonese forces are oriented to the defense of the country and have not been trained for an offensive role. A well-trained, well-equipped 1,500-member guard provides security for the president.

FOREIGN RELATIONS

Gabon has followed a nonaligned policy, advocating dialogue in international affairs and recognizing both parts of divided countries. Since 1973, the number of countries establishing diplomatic relations with Gabon has doubled. In inter-African affairs, Gabon espouses development by evolution rather than revolution and favors regulated free enterprise as the system most likely to promote rapid economic growth. Concerned about stability in Central Africa and the potential for intervention, Gabon has been directly involved with mediation efforts in Chad, the Central African Republic, Angola, Congo/Brazzaville, the Democratic Republic of the Congo, and Burundi. In December 1999, through the mediation efforts of President Bongo, a peace accord was signed in Congo/Brazzaville between the government and most leaders of an armed rebellion. President Bongo has remained involved in the continuing Congolese peace process, and has also played a role in mediating the crisis in Cote d'Ivoire. Gabon has been a strong proponent of regional stability, and Gabonese armed forces played an important role in the Central African Economic and Monetary Community (CEMAC) mission to the Central African Republic.

Gabon is a member of the UN and some of its specialized and related agencies, as well as of the World Bank; the African Union (AU); the Central African Customs Union/Central African Economic and Monetary Community (UDEAC/CEMAC); EU/ACP association under the Lome Convention; the Communaute Financiere Africaine (CFA); the Organization of the Islamic Conference (OIC); the Nonaligned Movement; and the Economic Community of Central African States (ECCAS/CEEAC). Gabon withdrew from the Organization of Petroleum Exporting Countries (OPEC) in 1995.

U.S.-GABONESE RELATIONS

Relations between the United States and Gabon are excellent. In 1987, President Bongo made an official visit to Washington, DC. In September 2002, Secretary of State Colin Powell made a brief but historic visit to Gabon to highlight environmental protection and conservation in the Central Africa region. This was followed by a visit to the White House by President Bongo in May 2004. The United States imports a considerable percentage of Gabonese crude oil and manganese and exports heavy construction equipment, aircraft, and machinery to Gabon. Through a modest International Military Education and Training program, the United States provides military training to members of the Gabonese armed forces each year. Other bilateral assistance includes the funding of small grants for qualified democracy and human rights, self-help, and cultural preservation projects. U.S. private capital has been attracted to Gabon since before its independence.

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/2826.htm

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