Afghanistan



The United States has made a long-term commitment to help Afghanistan rebuild itself after years of war. The U.S., along with others in the international community, currently provides resources and expertise to Afghanistan in a variety of areas, including humanitarian relief and assistance, capacity-building, security needs, counter-narcotic programs, and infrastructure projects. The U.S. also supports the Afghan Government in its efforts to establish a framework for a vibrant civil society, one that emphasizes democratic principles through a rule of law and creates accountable and transparent forms of government.

The United States and its international partners remain committed to helping Afghans realize their vision for a country that is stable, democratic, and economically successful, and to an Afghan government committed to the protection of women's rights, human rights, and religious tolerance.

Albania


PROFILE

OFFICIAL NAME:
Republic of Albania

Geography
Area: 28,748 sq. km. (slightly larger than Maryland).
Major cities: Capital--Tirana (600,000, 2005 est.). Others--Durres (200,000, 2005 est.), Shkoder (81,000, 2005 est.), Vlore (72,000, 2005 est.).
Terrain: Situated in the southwestern region of the Balkan Peninsula, Albania is predominantly mountainous but flat along its coastline with the Adriatic Sea.
Climate: Mild, temperate; cool, wet winters; dry, hot summers.

People
Population (2007 est.): 3,600,523.
Growth rate (2007 est.): 0.529%.
Ethnic groups (2004 est., Government of Albania): Albanian 98.6%, Greeks 1.17%, others 0.23% (Vlachs, Roma, Serbs, Montenegrins, Macedonians, Balkan Egyptians, and Bulgarians).
Religions: Muslim (Sunni and Bektashi) 70%, Albanian Orthodox 20%, and Roman Catholic 10%.
Official language: Albanian.
Health (2007 est.): Life expectancy--males 74.95 years; females 80.53 years. Infant mortality rate--20.02 deaths per 1,000 live births.

Government
Type: Parliamentary democracy.
Constitution: Adopted by popular referendum November 28, 1998.
Independence: November 28, 1912 (from the Ottoman Empire).
Branches: Executive--President (chief of state), Prime Minister (head of government), Council of Ministers (cabinet). Legislative--Unicameral People's Assembly or Kuvendi Popullor--140 seats (100 members elected by direct popular vote; 40 by proportional vote; all serve 4-year terms). Judicial--Constitutional Court, High Court, multiple district and appeals courts.
Suffrage: Universal at age 18.
Main political parties: Democratic Party of Albania (PD); Albanian Socialist Party (PS); Socialist Movement for Integration (LSI); Albanian Republican Party (PR); Demo-Christian Party (PDK); Union for Human Rights Party (PBDNJ); New Democracy Party (PDR); Social Democratic Party (PSD); Social Democracy Party (PDS).

Economy
Real GDP growth (2007): 6% (forecast)
Inflation rate (2007): 3% (average year-on-year annual)
Unemployment rate (Q2 2007): 13.5%.
Natural resources: Oil, gas, coal, iron, copper and chrome ores.

GEOGRAPHY
Albania shares a border with Greece to the south/southeast, Macedonia to the east, Serbia (including Kosovo) to the northeast, and Montenegro to the northwest. Western Albania lies along the Adriatic and Ionian Sea coastlines. Albania's primary seaport is Durres, which handles 90% of its maritime cargo.

PEOPLE AND HISTORY
Over 90% of Albania's people are ethnic Albanian, and Albanian is the official language. Religions include Muslim (Sunni and Bektashi), Albanian Orthodox, and Roman Catholic.

Scholars believe the Albanian people are descended from a non-Slavic, non-Turkic group of tribes known as Illyrians, who arrived in the Balkans around 2000 BC. After falling under Roman authority in 165 BC, Albania was controlled nearly continuously by a succession of foreign powers until the mid-20th century, with only brief periods of self-rule.

Following the split of the Roman Empire in 395, the Byzantine Empire established control over present-day Albania. In the 11th century, Byzantine Emperor Alexius I Comnenus made the first recorded reference to a distinct area of land known as Albania and to its people.

The Ottoman Empire ruled Albania from 1385-1912. During this time, much of the population converted to the Islamic faith, and Albanians also emigrated to Italy, Greece, Egypt and Turkey. Although its control was briefly disrupted during the 1443-78 revolt, led by Albania's national hero, Gjergj Kastrioti Skenderbeu, the Ottomans eventually reasserted their dominance.

The League of Prizren (1878) promoted the idea of an Albanian nation-state and established the modern Albanian alphabet, updating a language that survived the hundreds of years of Ottoman rule despite being outlawed. By the early 20th century, the weakened Ottoman Empire was no longer able to suppress Albanian nationalism. Following the conclusion of the First Balkan War, Albanians issued the Vlore Proclamation of November 28, 1912, declaring independence and the Great Powers established Albania's borders in 1913. Albania's territorial integrity was confirmed at the Paris Peace Conference in 1919, after U.S. President Woodrow Wilson dismissed a plan by the European powers to divide Albania among its neighbors.

During the Second World War, Albania was occupied first by Italy (1939-43) and then by Germany (1943-44). After the war, Communist Party leader Enver Hoxha, through a combination of ruthlessness and strategic alliances, managed to preserve Albania's territorial integrity during the next 40 years, but exacted a terrible price from the population, which was subjected to purges, shortages, repression of civil and political rights, a total ban on religious observance, and increased isolation. Albania adhered to a strict Stalinist philosophy, eventually withdrawing from the Warsaw Pact in 1968 and alienating its final remaining ally, China, in 1978.

Following Hoxha's death in 1985 and the subsequent fall of Communism in 1991, Albanian society struggled to overcome its historical isolation and underdevelopment. During the initial transition period, the Albanian Government sought closer ties with the West in order to improve economic conditions and introduced basic democratic reforms, including a multi-party system.

In 1992, after the sweeping electoral victory of the Democratic Party, Sali Berisha became the first democratically elected President of Albania. Berisha began a more deliberate program of economic and democratic reform but progress on these issues stalled in the mid-1990s, due to political gridlock. At the same time, unscrupulous investment companies defrauded investors all over Albania using pyramid schemes. In early 1997, several of these pyramid schemes collapsed, leaving thousands of people bankrupt, disillusioned, and angry. Armed revolts broke out across the country, leading to the near-total collapse of government authority. During this time, Albania's already inadequate and antiquated infrastructure suffered tremendous damage, as people looted public works for building materials. Weapons depots all over the country were raided. The anarchy of early 1997 alarmed the world and prompted intensive international mediation.

A UN Multinational Protection Force restored order, and an interim national reconciliation government oversaw the general elections of June 1997, which returned the Socialists and their allies to power at the national level. President Berisha resigned, and the Socialists elected Rexhep Meidani as President of the Republic.

During the transitional period of 1997-2002, a series of short-lived Socialist-led governments succeeded one another as Albania's fragile democratic structures were strengthened. Additional political parties formed, media outlets expanded, non-governmental organizations and business associations developed. In 1998, Albanians ratified a new constitution via popular referendum, guaranteeing the rule of law and the protection of fundamental human rights and religious freedom. Fatos Nano, Chairman of the Socialist Party, emerged as Prime Minister in July 2002.

On July 24, 2002, Alfred Moisiu was sworn in as President of the Republic. A nonpartisan figure, he was elected as a consensus candidate of the ruling and opposition parties. The peaceful transfer of power from President Meidani to President Moisiu was the result of an agreement between the parties to engage each other within established parliamentary structures. This "truce" ushered in a new period of political stability in Albania, making possible significant progress in democratic and economic reforms, rule of law initiatives, and the development of Albania's relations with its neighbors and the U.S.

The "truce" between party leaders began to fray in summer 2003 and progress on economic and political reforms suffered noticeably due to political infighting. The municipal elections of 2003 and national elections of 2005 were an improvement over past years, adding to the consolidation of democracy despite the continued presence of administrative errors and inaccuracies in voter lists.

In 2005, the Democratic Party and its allies returned to power, pledging to fight crime and corruption, decrease the size and scope of government, and promote economic growth. Their leader, Sali Berisha, was sworn in as Prime Minister on September 11, 2005.

Since the election, Prime Minister Berisha's government has made the fight against corruption and organized crime its first priority and has begun administrative and legal reforms toward that end. This brought repeated clashes with the opposition, which condemned the government's approach as unconstitutional and an attempt to undermine independent institutions. Both sides remain combative over a range of political and substantive issues.

Another politically contentious process was the pre-electoral period prior to the 2007 local elections. Although the February 18, 2007 local elections were generally peaceful and democratic, over-politicized debate during the preceding months resulted in procedural and administrative problems during the conduct of the elections. A major positive step forward was the performance of the police force.

The fragility of the Albanian electoral system was tested again during the parliamentary by-election in zone 26 (Shijak) on March 11, 2007. The left-wing opposition parties withdrew their commissioners from the polling stations and the counting center, in spite of prior concessions from the Central Elections Commission (CEC) to the opposition's demands. Opposition commissioners left and took with them one of the seals that mark the ballots. By midday, the opposition candidate also announced his withdrawal from the parliamentary race. However, the right of citizens to vote prevailed and the process continued thanks to the technical arrangements of the CEC. The only visible sign of violence was the wounding of a Democratic Party commissioner, who was fired upon by a militant.

Both elections were an indication of lack of political will to cooperate and of the imminent need for a comprehensive electoral reform of the present Albanian electoral system.

On July 20, 2007 President Bamir Topi was elected within Parliament after six members of the opposition coalition broke ranks to vote for his candidacy. Out of 90 deputies present at the session, 85 voted for Topi, while Neritan Ceka, head of the opposition Democratic Alliance party, won five votes. Topi, 50, a former agriculture minister, now succeeds President Alfred Moisiu for a five-year mandate.

GOVERNMENT AND POLITICAL CONDITIONS
The unicameral People's Assembly (Kuvendi Popullor) consists of 140 seats, 100 of which are determined by direct popular vote. The remaining seats are distributed by proportional representation. All members serve 4-year terms. The Speaker of Parliament (Jozefina Topalli) has two deputies, who along with eight permanent parliamentary commissions assist in the process of legislating Albanian affairs.

The President is the head of state and elected by a three-fifths majority vote of all Assembly members. The President serves a term of 5 years with the right to one re-election. Although the position is largely ceremonial, the Constitution gives the President authority to appoint and dismiss some high-ranking civil servants in the executive and judicial branches, and this authority can have political implications. The President is also commander in chief of the armed forces, and chairs the National Security Commission. The current President's term expires on July 23, 2012.

The Prime Minister is appointed by the President and approved by a simple majority of all members of the Assembly. The Prime Minister serves as the Chairman of the Council of Ministers (cabinet), which consists of the Prime Minister, Deputy Prime Minister, and other ministers. Members of the Council of Ministers are nominated by the Prime Minister, decreed by the President, and approved by a parliamentary vote.

Albania's civil law system is similar to that of other European countries. The court structure consists of a Constitutional Court, a Supreme Court, and multiple appeal and district courts. The Constitutional Court is comprised of nine members appointed by the Assembly for one 9-year term. The Constitutional Court interprets the Constitution, determines the constitutionality of laws, and resolves disagreements between local and federal authorities. The Supreme Court is the highest court of appeal and consists of 11 members appointed by the President with the consent of the Assembly for 9-year terms. The President chairs the High Council of Justice, which is responsible for appointing and dismissing other judges. The High Council of Justice is comprised of 15 members--the President of the Republic, the Chairman of the High Court, the Minister of Justice, three members elected by the Assembly, and nine judges of all levels elected by the National Judicial Conference.

The remaining courts are divided into three jurisdictions: criminal, civil, and military. There are no jury trials under the Albanian system of justice. A college of three judges, who are sometimes referred to as a "jury" by the Albanian press, render court verdicts.

Principal Government Officials
President--Bamir Topi
Prime Minister--Sali Berisha
Deputy Prime Minister--Gazmend Oketa
Minister of Foreign Affairs--Lulzim Basha

Albania

ECONOMY
Albania remains one of the poorest countries in Europe. According to the Bank of Albania, per capita income was U.S. $3,150 in 2007. The official unemployment rate is 13.5%, and 18.5% of the population lives below the poverty line according to the World Bank's 2005 Poverty Assessment. Almost 60% of all workers are employed in the agricultural sector, although the construction and service industries have been expanding recently, the latter boosted significantly by ethnic Albanian tourists from throughout the Balkans. The GDP is comprised of agriculture (approximately 24%), industry (approximately 13%), service sector (approximately 39%), transport and communication (12%), construction (11%), and remittances from Albanian workers abroad--mostly in Greece and Italy (approximately 12.8%).

Albania was the last of the central and eastern European countries to embark upon democratic and free market reforms. Further, Albania started from a comparatively disadvantaged position, due to Hoxha's catastrophic economic policies. Transition from a centrally planned economy to a market-orientated system has been almost as difficult for Albania as the country's communist period.

The democratically elected government that assumed office in April 1992 launched an ambitious economic reform program meant to halt economic deterioration and put the country on the path toward a market economy. Key elements included price and exchange system liberalization, fiscal consolidation, monetary restraint, and a firm income policy. These were complemented by a comprehensive package of structural reforms, including privatization, enterprise and financial sector reform, and creation of the legal framework for a market economy and private sector activity.

Results of Albania's efforts were initially encouraging. Led by the agricultural sector, real GDP grew, and Albania's currency, the lek, stabilized. The speed and vigor of private entrepreneurial response to Albania's opening and liberalizing was better than expected. Beginning in 1995, however, progress stalled. The collapse of the infamous pyramid schemes of the 1990s and the instability that followed were a tremendous setback, from which Albania's economy continues to recover.

In recent years the Albanian economy has improved, although infrastructure development and major reforms in areas such as tax collection, property laws, and for improving the business climate in general are proceeding slowly. Between 2003-2007, Albania experienced an average 5.5% annual growth in GDP. Fiscal and monetary discipline has kept inflation relatively low, averaging roughly 2.5% per year between 2004-2006. In 2007, inflation increased to 3%, still within the target range set by the Bank of Albania. Albania's public debt reached 54.1% of GDP in 2007, and the growing trade deficit was estimated at 22% of GDP in 2007. Economic reform has also been hampered by Albania's very large informal economy, which the International Monetary Fund (IMF) estimates equals 50% of GDP.

Albania's trade imbalance is severe. In 2007, Albanian trade had U.S. $4.15 billion in imports, and U.S. $1 billion in exports. Albania has concluded Free Trade Agreements (FTAs) with Macedonia, Croatia, UNMIK (Kosovo), Bulgaria, Romania, Bosnia, and Moldova. In April 2006, these bilateral agreements were replaced by a multiregional agreement that entered into force in May 2007 and that is based on the Central European Free Trade Agreement (CEFTA) model. However, combined trade with all these countries constitutes a small percentage of Albania's trade, while trade with EU member states (mainly Greece and Italy) accounts for nearly 68%. U.S. two-way trade with Albania is very low. In 2006, U.S. exports to Albania totaled $46.6 million. U.S. imports, during the same time period, totaled $3.44 million, making the U.S. the 17th overall trade partner of Albania. However, there are some discrepancies between U.S. and Albanian trade figures. Major U.S. investment to date has been limited to large-scale infrastructure contracts with the government; Lockheed Martin and Bechtel are principal U.S. participants. The Albanian Government signed a FTA with the EU as part of its Stabilization and Association Agreement negotiations. The interim agreement entered into force in December 2006, and it foresees a duty-free regime for almost 90% of agricultural and industrial products. On the fiscal side it will also significantly reduce revenue collection.

Albania is trying to attract foreign investment and promote domestic investment, but significant impediments exist. The Albanian Government faces the daunting task of rationalizing and uniformly applying business laws, improving transparency in business procedures, restructuring the tax systems (including tax collection), reducing corruption in the bureaucracy, and resolving property ownership disputes.

Business growth is further hampered by Albania's inadequate energy and transportation infrastructure. The capital, Tirana, and the main port of Durres, generally receive electricity most of the day, but constant power outages plague every other major city, small town, and rural village. Although recent steps have been taken to improve the transportation infrastructure, Albania has a limited railway system and just one international airport. Because of the mountainous terrain and poor road condition, overland goods transport is arduous and costly.

MILITARY AFFAIRS
Since the fall of communism in Albania in 1991, the country has played a constructive role in resolving several of the inter-ethnic conflicts in south central Europe, promoting peaceful dispute resolution and discouraging ethnic Albanian extremists. Albania sheltered many thousands of Kosovar refugees during the 1999 conflict, and now provides logistical assistance for Kosovo Force (KFOR) troops. Albania is part of the international Stabilization Force (SFOR) serving in Bosnia, and Albanian peacekeepers are part of the International Security Assistance Force in Afghanistan and the international stabilization force in Iraq. Albania has been a steadfast supporter of U.S. policy in Iraq, and was one of only four nations to contribute troops to the combat phase of Operation Enduring Freedom.

Albania continues to work with the international community to restructure its armed forces and strengthen democratic structures pursuant to its NATO Membership Action Plan. NATO members continue to encourage Albania to address military reforms that will bring it closer to membership. Since 1999, Albania has spent approximately $108 million annually on military expenditures, roughly 1.35% of its GDP. According to Government of Albania projections, military expenditure will reach 2% of GDP in 2008. With bilateral and multilateral assistance, the Ministry of Defense is transitioning to a smaller, voluntary, professional military, and reducing the vast amounts of excess weaponry and ammunition that litter the country and pose a significant public hazard and proliferation risk. The Albanian Government and the international community are working together on a project that will make Albania a mine-free country by 2010. Most high- and medium-priority mine clearance has been completed in the mined areas of northeast Albania, a legacy of the 1999 Kosovo crisis.

Albania and the U.S. enjoy a military partnership and are signatories to treaties including the 2003 Prevention of Proliferation of Weapons of Mass Destruction and the Promotion of Defense and Military Relations and the 2004 Supplementary Agreement to the Partnership for Peace Status of Forces Agreement, which defines the status of American military troops in Albania and further enables military cooperation. In May 2003, Albania, Croatia, Macedonia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country's NATO candidacy. In spite of strong EU objections, Albania also signed in May 2003 a bilateral agreement with the United States on non-surrender of persons, based on Article 98 of the statute of International Criminal Court.

In 2004 President Bush authorized the use of the Nunn-Lugar Cooperative Threat Reduction program funds for projects in Albania, marking the first time such funds are used outside the former Soviet Union. With this funding the United States is assisting the Government of Albania with the destruction of a stockpile of chemical agents left over from the communist regime. Under this program, Albania became the first nation in the world to complete destruction of declared chemical weapons holdings under the Chemical Weapons Convention in July 2007.

FOREIGN RELATIONS
Albania is currently pursuing a path of greater Euro-Atlantic integration. Its primary long-term goals are to gain NATO and EU membership and to promote closer bilateral ties with its neighbors and with the U.S. Albania is a member of a number of international organizations, as well as multiple regional organizations and initiatives, including the Organization for Security and Cooperation in Europe (OSCE), the UN, the Stability Pact, the Adriatic Charter, and the World Trade Organization (WTO). In June 2006, Albania and the EU signed a Stabilization and Association Agreement, the first step to EU membership, which will focus on implementing essential rule of law reforms and curbing corruption and organized crime.

Albania maintains generally good relations with its neighbors. It re-established diplomatic relations with the Federal Republic of Yugoslavia following the ousting of Slobodan Milosevic in 2000, and maintains excellent relations with the Republic of Montenegro, which gained its independence after the dissolution of the Serbia and Montenegro union in 2006. Although the final status of Kosovo remains a key issue in Albanian-Serbian relations, both nations are committed to achieving a peaceful resolution. Albanian, Macedonian, and Italian law enforcement agencies are cooperating with increasing efficiency to crack down on the trafficking of arms, drugs, contraband, and human beings across their borders. Albania has also arrested and prosecuted several ethnic-Albanian extremists on charges of inciting interethnic hatred in Macedonia and Kosovo. Tensions occasionally arise with Greece over the treatment of the Greek minority in Albania or the Albanian community in Greece, but overall relations are good, and Greece maintains the public image of being a strong proponent of Albania's eventual integration into the EU and NATO.

U.S.-ALBANIAN RELATIONS
Albania enjoys friendly and cooperative bilateral relations with the U.S. Pro-U.S. sentiment is widespread among the population. Even while the U.S., which had closed its mission to Albania in 1946, was being vilified by communist propaganda during the Hoxha regime, ordinary Albanians remembered that Woodrow Wilson had protected Albanian independence in 1919. Albanians credit the NATO bombing of Serbia in 1999 with saving thousands of Kosovar-Albanian lives, and they greatly appreciate the U.S. Government's commitment to resolving the status of Kosovo.

In 2003, Albania and the U.S. signed and ratified a number of agreements, including a treaty on the Prevention of Proliferation of Weapons of Mass Destruction and the Promotion of Defense and Military Relations; the Adriatic Charter; and an Agreement regarding the non-surrender of persons to the International Criminal Court. The U.S. strongly supports Albania's EU and NATO membership goals. Working towards NATO membership, the U.S. and Albania signed a Supplementary Agreement to the Partnership for Peace Status of Forces Agreement, an important step in strengthening bilateral cooperation and enhancing security, peace, and stability in the region.

Since FY 1991, the U.S. has provided Albania with more than $616 million in assistance, not counting U.S. Department of Agriculture (USDA) food aid. The aid has served to facilitate Albania's transition from the most isolated and repressive communist state in Europe to a modern democracy with a market-oriented economy, and to support long-term development. In 2007, the U.S. gave over $21.1 million to Albania under the Support for East European Democracy (SEED) Act program. Albania was among the first countries selected to participate in the Threshold Program under the Millennium Challenge Account, winning a grant of $13.8 million. In September 2006, Albania began implementation of the program, which targets two critical stumbling blocks to development--corruption and rule of law.

Despite daunting problems at home, Albania has wholeheartedly supported the U.S. in the global war on terrorism by freezing terrorist assets, shutting down non-governmental organizations (NGOs) with possible links to terrorist financing, expelling extremists, and providing military and diplomatic support for the U.S.-led actions in Afghanistan and Iraq. Albania has played a moderating role in the region and has fully supported UN mediation efforts in Kosovo.

Algeria



PROFILE
OFFICIAL NAME:
People's Democratic Republic of Algeria

Geography
Location: Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia.
Area: Total--2,381,740 sq. km. Land--2,381,740 sq. km.; water--0 sq. km. More than three times the size of Texas.
Cities: Capital--Algiers; Oran, Constantine, Annaba.
Terrain: Mostly high plateau and desert; some mountains; narrow, discontinuous coastal plain. Mountainous areas subject to severe earthquakes, mud slides.
Climate: Arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; a hot, dust/sand-laden wind called sirocco is especially common in summer.
Land use: Arable land--3%; permanent crops--0%, permanent pastures--13%; forests and woodland--2%.

People
Nationality: Noun--Algerian(s); adjective--Algerian.
Population (2007 est.): 33,333,216.
Annual growth rate (2007 est.): 1.22%. Birth rate (2007 est.)--17.11 births/1,000 population; death rate (2007 est.)--4.62 deaths/1,000 population.
Ethnic groups: Arab-Berber 99%, European less than 1%.
Religions: Sunni Muslim (state religion) 99%, Christian and Jewish 1%.
Languages: Arabic (official), Berber (national language), French.
Education: Literacy (age 15 and over can read and write)--total population 70% (2004 est.); female 60% (2004 est.).
Health (2007 est.): Infant mortality rate--28.78 deaths/1,000 live births. Life expectancy at birth--total population, 73.52 years; male 71.91 years, female 75.21 years.
Work force (2006): 9.31 million.
Unemployment rate (2006 est.): 23%; Algerian Government estimates 13%.

Government
Type: Republic.
Independence: July 5, 1962 (from France).
Constitution: September 8, 1963; revised November 19, 1976, November 3, 1988, February 23, 1989, and November 28, 1996.
Branches: Legal system based on French and Islamic law; judicial review of legislative acts in ad hoc Constitutional Council composed of various public officials, including several Supreme Court justices; Algeria has not accepted compulsory International Court of Justice (ICJ) jurisdiction.
Administrative divisions: 48 provinces (wilayates; singular, wilaya).
Suffrage: 18 years of age; universal.
National holiday: Independence Day, July 5, 1962; Revolution Day, November 1, 1954.
Major parties represented in parliament: National Liberation Front (FLN), National Democratic Rally (RND), Movement for National Reform (MRN), Movement of Society for Peace (MSP), Workers' Party (PT), Algerian National Front (FNA), Islamic Renaissance Movement (MNI), Party of Algerian Renewal (PRA), Movement of National Understanding (MEN).

Economy
GDP (2006): $92.22 billion.
GDP growth rate (2006): 5.6%.
Per capita GDP (PPP, 2006): $7,777.
Agriculture: Products--wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle.
Industry: Types--petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing, pharmaceuticals, cement, seawater desalination.
Sector Information as % GDP (2006): Agriculture 9.4%, services 32.5%, industry 58.1%.
Monetary unit: Algerian dinar.
Inflation, GDP deflator (2004): 10.2%.
Trade: Exports (f.o.b., 2006 est.)--$55.6 billion: petroleum, natural gas, and petroleum products 97.52%. Partners (2005 est.)--U.S. 23.5%, Italy 16.7%, France 11.4%, Spain 11.25%. Imports (f.o.b., 2006 est.)--$27.6 billion: capital goods, food and beverages, consumer goods. Partners (2005)--France 28%, Italy 7.8%, Germany 6.3%, U.S. 5.4%, China 6.6%, Spain 7.2%.
Budget (2006 est.): Revenues--$59.26 billion; expenditures--$49.14 billion, including capital expenditures of $5.8 billion.
Debt (external, 2006 est.): $5 billion.
U.S. economic assistance (2005 est.): $4.40 million (MEPI, IMET).

GEOGRAPHY
Algeria, the second-largest state in Africa, has a Mediterranean coastline of about 998 kilometers (620 mi.). The Tellian and Saharan Atlas mountain ranges cross the country from east to west, dividing it into three zones. Between the northern zone, Tellian Atlas, and the Mediterranean is a narrow, fertile coastal plain--the Tell (Arabic for hill)--with a moderate climate year round and rainfall adequate for agriculture. A high plateau region, averaging 914 meters (3,000 ft.) above sea level, with limited rainfall, great rocky plains, and desert, lies between the two mountain ranges. It is generally barren except for scattered clumps of trees and intermittent bush and pastureland. The third and largest zone, south of the Saharan Atlas mountain range, is mostly desert. About 80% of the country is desert, steppes, wasteland, and mountains. Algeria's weather varies considerably from season to season and from one geographical location to another. In the north, the summers are usually hot with little rainfall. Winter rains begin in the north in October. Frost and snow are rare, except on the highest slopes of the Tellian Atlas Mountains. Dust and sandstorms occur most frequently between February and May.

Soil erosion--from overgrazing, other poor farming practices, and desertification--and the dumping of raw sewage, petroleum refining wastes, and other industrial effluents are leading to the pollution of rivers and coastal waters. The Mediterranean Sea, in particular, is becoming polluted from oil wastes, soil erosion, and fertilizer runoff. There are inadequate supplies of potable water.

PEOPLE
Ninety-one percent of the Algerian population lives along the Mediterranean coast on 12% of the country's total land mass. Forty-five percent of the population is urban, and urbanization continues, despite government efforts to discourage migration to the cities. About 1.5 million nomads and semi-settled Bedouin still live in the Saharan area.

Nearly all Algerians are Muslim, of Arab, Berber, or mixed Arab-Berber stock. Official data on the number of non-Muslim residents is not available; however, practitioners report it to be less than 5,000. Most of the non-Muslim community is comprised of Methodist, Roman Catholic and Evangelical faiths; the Jewish community is virtually non-existent. There are about 1,100 American citizens in the country, the majority of whom live and work in the oil/gas fields in the south.

Algeria's educational system has grown dramatically since the country gained its independence. In the last 12 years, attendance has doubled to more than 5 million students. Education is free and compulsory to age 16. Despite government allocation of substantial educational resources, population pressures and a serious shortage of teachers have severely strained the system. Modest numbers of Algerian students study abroad, primarily in Europe and Canada. In 2000, the government launched a major review of the country's educational system and in 2004 efforts to reform the educational system began.

Housing and medicine continue to be pressing problems in Algeria. Failing infrastructure and the continued influx of people from rural to urban areas have overtaxed both systems. According to the United Nations Development Program, Algeria has one of the world's highest per housing unit occupancy rates, and government officials have publicly stated that the country has an immediate shortfall of 1.5 million housing units.

HISTORY
Since the 5th century B.C., the native peoples of northern Africa (first identified by the Greeks as "Berbers") were pushed back from the coast by successive waves of Phoenician, Roman, Vandal, Byzantine, Arab, Turkish, and, finally, French invaders. The greatest cultural impact came from the Arab invasions of the 8th and 11th centuries A.D., which brought Islam and the Arabic language. The effects of the most recent (French) occupation--French language and European-inspired socialism--are still pervasive.

North African boundaries have shifted during various stages of the conquests. Algeria's modern borders were created by the French, whose colonization began in 1830. To benefit French colonists, most of whom were farmers and businessmen, northern Algeria was eventually organized into overseas departments of France, with representatives in the French National Assembly. France controlled the entire country, but the traditional Muslim population in the rural areas remained separated from the modern economic infrastructure of the European community.

Algerians began their uprising on November 1, 1954, to gain rights denied them under French rule. The revolution, launched by a small group of nationalists who called themselves the National Liberation Front (FLN), was a guerrilla war in which both sides targeted civilians and otherwise used brutal tactics. Eventually, protracted negotiations led to a cease-fire signed by France and the FLN on March 18, 1962, at Evian, France. The Evian Accords also provided for continuing economic, financial, technical, and cultural relations, along with interim administrative arrangements until a referendum on self-determination could be held. Over 1 million French citizens living in Algeria at the time, called the pieds-noirs (black feet), left Algeria for France.

The referendum was held in Algeria on July 1, 1962, and France declared Algeria independent on July 3. In September 1962 Ahmed Ben Bella was formally elected president. On September 8, 1963, a Constitution was adopted by referendum. On June 19, 1965, President Ben Bella was replaced in a non-violent coup by the Council of the Revolution headed by Minister of Defense Col. Houari Boumediene. Ben Bella was first imprisoned and then exiled. Boumediene, as President of the Council of the Revolution, led the country as Head of State until he was formally elected on December 10, 1976. Boumediene is credited with building "modern Algeria." He died on December 27, 1978.

Following nomination by an FLN Party Congress, Col. Chadli Bendjedid was elected president in 1979 and re-elected in 1984 and 1988. A new constitution was adopted in 1989 that allowed the formation of political parties other than the FLN. It also removed the armed forces, which had run the government since the days of Boumediene, from a designated role in the operation of the government. Among the scores of parties that sprang up under the new constitution, the militant Islamic Salvation Front (FIS) was the most successful, winning more than 50% of all votes cast in municipal elections in June 1990 as well as in the first stage of national legislative elections held in December 1991.

Faced with the real possibility of a sweeping FIS victory, the National People's Assembly was dissolved by presidential decree on January 4, 1992. On January 11, under pressure from the military leadership, President Chadli Bendjedid resigned. On January 14, a five-member High Council of State was appointed by the High Council of Security to act as a collegiate presidency and immediately canceled the second round of elections. This action, coupled with political uncertainty and economic turmoil, led to a violent reaction by Islamists. On January 16, Mohamed Boudiaf, a hero of the Liberation War, returned after 28 years of exile to serve as Algeria's fourth president. Facing sporadic outbreaks of violence and terrorism, the security forces took control of the FIS offices in early February, and the High Council of State declared a state of emergency. In March, following a court decision, the FIS Party was formally dissolved, and a series of arrests and trials of FIS members occurred resulting in more than 50,000 members being jailed. Algeria became caught in a cycle of violence, which became increasingly random and indiscriminate. On June 29, 1992, President Boudiaf was assassinated in Annaba in front of TV cameras by Army Lt. Lembarek Boumarafi, who allegedly confessed to carrying out the killing on behalf of the Islamists.

Despite efforts to restore the political process, violence and terrorism dominated the Algerian landscape during the 1990s. In 1994, Liamine Zeroual, former Minister of Defense, was appointed Head of State by the High Council of State for a three-year term. During this period, the Armed Islamic Group (GIA) launched terrorist campaigns against government figures and institutions to protest the banning of the Islamist parties. A breakaway GIA group--the Salafist Group for Preaching and Combat (GSPC)--also undertook terrorist activity in the country. Government officials estimate that more than 100,000 Algerians died during this period.

Zeroual called for presidential elections in 1995, though some parties objected to holding elections that excluded the FIS. Zeroual was elected president with 75% of the vote. By 1997, in an attempt to bring political stability to the nation, the National Democratic Rally (RND) party was formed by a progressive group of FLN members. In September 1998, President Liamine Zeroual announced that he would step down in February 1999, 21 months before the end of his term, and that presidential elections would be held.

Algerians went to the polls in April 1999, following a campaign in which seven candidates qualified for election. On the eve of the election, all candidates except Abdelaziz Bouteflika pulled out amid charges of widespread electoral fraud. Bouteflika, the candidate who appeared to enjoy the backing of the military, as well as the FLN and the RND party regulars, won with an official vote count of 70% of all votes cast. He was inaugurated on April 27, 1999 for a 5-year term.

President Bouteflika's agenda focused initially on restoring security and stability to the country. Following his inauguration, he proposed an official amnesty for those who fought against the government during the 1990s with the exception of those who had engaged in "blood crimes," such as rape or murder. This "Civil Concord" policy was widely approved in a nationwide referendum in September 2000. Government officials estimate that 80% of those fighting the regime during the 1990s have accepted the civil concord offer and have attempted to reintegrate into Algerian society. Bouteflika also launched national commissions to study education and judicial reform, as well as restructuring of the state bureaucracy.

In 2001, Berber activists in the Kabylie region of the country, reacting to the death of a youth in gendarme custody, unleashed a resistance campaign against what they saw as government repression. Strikes and demonstrations in the Kabylie region were commonplace as a result, and some spread to the capital. Chief among Berber demands was recognition of Tamazight (a general term for Berber languages) as an official language, official recognition and financial compensation for the deaths of Kabyles killed in demonstrations, an economic development plan for the area and greater control over their own regional affairs. In October 2001, the Tamazight language was recognized as a national language, but the issue remains contentious as Tamazight has not been elevated to an official language.

Algeria's most recent presidential election took place on April 8, 2004. For the first time since independence, the presidential race was democratically contested through to the end. Besides incumbent President Bouteflika, five other candidates, including one woman, competed in the election. Opposition candidates complained of some discrepancies in the voting list; irregularities on polling day, particularly in Kabylie; and of unfair media coverage during the campaign as Bouteflika, by virtue of his office, appeared on state-owned television daily. Bouteflika was re-elected in the first round of the election with 84.99% of the vote. Just over 58% of those Algerians eligible to vote participated in the election.

In the years since Bouteflika was first elected, the security situation in Algeria has improved markedly. Terrorism, however, has not been totally eliminated, and terrorist incidents still occur, particularly in the provinces of Boumerdes, Tizi-Ouzou, and in the remote southern areas of the country. In April 2007, a series of bombings in Algiers targeted a government facility and police stations, killing 33 people. In addition, on July 11 a suicide bomber targeted military barracks in the Kabylie region, killing eight soldiers. The alleged mastermind behind the 2007 attacks was killed later in July during a raid led by Algerian security forces.

In September 2005, Algeria passed a referendum in favor of President Bouteflika's Charter for Peace and National Reconciliation, paving the way for implementing legislation that will pardon certain individuals convicted of armed terrorist violence. The new Charter builds upon the Civil Concord, and the Rahma (clemency) Law shields from prosecution anyone who laid down arms in response to those previous amnesty offers. The Charter specifically excludes from amnesty those involved in mass murders, rapes, or the use of explosives in public places. The Charter was implemented in March 2006, and the window for combatants to receive amnesty expired in September 2006. Approximately 2,500 Islamists were released under the Charter, many of whom are now suspected of having returned to militant groups in Algeria.

GOVERNMENT
Under the 1976 Constitution (as modified 1979, and amended in 1988, 1989, and 1996) Algeria is a multi-party state. The Ministry of the Interior must approve all political parties. According to the Constitution, no political association may be formed "based on differences in religion, language, race gender or region." Algeria has universal suffrage at the age of 18.

The head of state is the president of the republic. The president, elected to a five-year term, and constitutionally limited to two terms, is the head of the Council of Ministers and of the High Security Council. He appoints the prime minister as well as one-third of the upper house (the Council of the Nation). The prime minister presides over the Council of Ministers and serves as head of the government.

The Algerian Parliament is bicameral, consisting of a lower chamber, the National People's Assembly (APN), with 380 members and an upper chamber, the Council of the Nation, with 144 members. The APN is elected every five years. Legislative elections were held in May 2007. Two-thirds of the Council of the Nation is elected by regional and municipal authorities; the rest are appointed by the president. The Council of the Nation serves a six-year term with one-half of the seats up for election or reappointment every three years. Either the president or one of the parliamentary chambers may initiate legislation. Legislation must be brought before both chambers before it becomes law. Sessions of the APN are televised.

Algeria is divided into 48 wilayates (states or provinces) headed by walis (governors) who report to the Minister of Interior. Each wilaya is further divided into communes. The wilayates and communes are each governed by an elected assembly.

Principal Government Officials
President and Minister of National Defense--Abdelaziz Bouteflika
Head of Government (Prime Minister)--Abdelaziz Belkhadem
Minister of State for the Interior and Local Communities--Nourredine Yazid Zerhouni
Minister of State for Foreign Affairs--Mourad Medelci
Minister of State--Soltani Boudjerra
Minister Delegate in Charge of National Defense--Abdelmalek Guenaizia

Other Ministers
Agriculture and Rural Development--Said Barkat
Commerce--El Hachemi Djaaboub
Communications--Abderrachid Boukerzaza
Culture--Khalida Toumi
Energy and Mines--Chakib Khelil
Environment--Cherif Rahmani
Finance--Karim Djoudi
Fisheries and Sea Resources--Smail Mimoune
Health, Population and Hospital Reform--Amar Tou
Higher Education and Scientific Research--Rachid Harraoubia
Housing & Urban Planning--Noureddine Moussa
Industry--Mahmoud Khoudri
Jobs and National Solidarity--Djamal Ould-Abbes
Justice--Tayeb Belaiz
Labor and Social Security--Tayeb Louh
Moudjahidine (Veterans)--Mohamed Cherif Abbas
National Education--Boubekeur Benbouzid
Participation and Investment Promotion--Abdelhamid Temmar
Posts, Information and Communications Technologies--Boudjemaa Haichour
Public Works--Amar Ghoul
Minister in Charge of Relations with Parliament--Mahmoud Khedri
Religious Affairs--Bouabdellah Ghlamallah
Small and Medium-Sized Enterprises and Craft Industries--Mustapha Benbada
Tourism--Noureddine Moussa
Transport--Mohamed Maghlaoui
Vocational Training--El Hadi Khaldi
Water Resources--Abdelmalek Sellal
Youth and Sports--Hachemi Djiar

Ministers Delegate
Minister Delegate in Charge of Maghrebian and African Affairs--Abdelkader Messahel
Minister Delegate in Charge of the Family and Women's Affairs--Nouara Saadia Djaafar
Minister Delegate in Charge of Local Collectives--Daho Ould Kablia
Minister Delegate in Charge of Rural Development--Rachid Benaissa
Minister Delegate in Charge of Scientific Research--Souad Bendjaballah
Minister Delegate in Charge of Town Planning & Environment--Abderrachid Boukerzaza
Minister Delegate in Charge of Financial Reform--Fatiha Mentouri

Other Government Officials
Secretary General of the Government--Ahmed Noui
Speaker of the National People's Assembly (Lower House)--Amar Saadani
Speaker of the Council of the Nation (Upper House)--Abdelkader Bensalah
Governor, Central Bank--Mohamed Laksaci
Ambassador to the United States--Amine Kherbi
Permanent Representative to the United Nations, New York--Youcef Yousfi

POLITICAL CONDITIONS
Terrorist violence in Algeria resulted in more than 100,000 deaths during the 1990s. Although the security situation in the country has improved, addressing the underlying issues that brought about the political turmoil of the 1990s remains the government's major task. President Bouteflika implemented the Charter on Peace and National Reconciliation on March 1, 2006, as one way to bring closure. Thus far, it has successfully gained the surrender of a number of moderate Islamists, but paradoxically, has emboldened the more hard-core elements, in particular the Salafist Group for Preaching and Combat (GSPC), which changed its name in January 2007 to Al-Qaida in the Islamic Maghreb (AQIM).

In keeping with its amended Constitution, the Algerian Government espouses participatory democracy and free-market competition. The government has stated that it will continue to open the political process and encourage the creation of political institutions. Presidential elections took place in April 2004 and returned President Bouteflika to office with 84.99% of the vote. The next presidential elections are scheduled for 2009.

Algeria has more than 45 daily newspapers published in French and Arabic, with a total circulation of more than 1.5 million copies. There are 20 domestically printed weekly publications with total circulation of 622,000 and 11 monthly publications with total circulation of 600,000. In 2001, the government amended the Penal Code provisions relating to defamation and slander, a step widely viewed as an effort to rein in the press. While the Algerian press is relatively free to write as they choose, use of the defamation laws significantly increased the level of press harassment following President Bouteflika's April 2004 re-election victory, and as a result, the press began to self-censor. In July 2006, President Bouteflika pardoned all journalists convicted of defaming or insulting state institutions. The pardon effectively dismissed the charges against 67 people. Critics point out that according to the criminal code, insulting the president is punishable by prison sentence. Nevertheless, the pardon was widely seen as a significant step toward democracy. The government holds a monopoly over broadcast media; Algerian newspapers are widely seen to be the freest in the region.

Population growth and associated problems--unemployment and underemployment, inability of social services to keep pace with rapid urban migration, inadequate industrial management and productivity, a decaying infrastructure--continue to affect Algerian society. Increases in the production and prices of oil and gas over the past decade have led to exchange reserves reaching $80 billion. The government began an economic reform program in 1994, focusing on macroeconomic stability and structural reform. These reforms aimed at liberalizing the economy, making Algeria competitive in the global market, and meeting the needs of the Algerian people. In 2004, the government announced a $55 billion spending program to improve national infrastructure and social services; subsequent announcements have increased the proposed program to $120 billion.

ECONOMY
The hydrocarbons sector is the backbone of the Algerian economy, accounting for roughly 60% of budget revenues, nearly 30% of GDP, and over 97% of export earnings. Algeria has the ninth-largest reserves of natural gas in the world (2.7% of proven world total) and is the fourth-largest gas exporter; it ranks 14th for oil reserves (2006). Its key oil and gas customers are Italy, Germany, France, the Netherlands, Spain, the United Kingdom, and the United States. U.S. companies have played a major role in developing Algeria's oil and gas sector; of the $5.3 billion (on a historical-cost basis, according to statistics gathered by the U.S. Department of Commerce, Bureau of Economic Analysis) of U.S. investment in Algeria, the vast bulk is in the petroleum sector.

Faced with declining oil revenues and high-debt interest payments at the beginning of the 1990s, Algeria implemented a stringent macroeconomic stabilization program and rescheduled its $7.9 billion Paris Club debt in the mid-1990s. The macroeconomic program has been particularly successful at narrowing the budget deficit and at reducing inflation from of near-30% averages in the mid 1990s to almost single digits in 2000. Inflation was at 3.6% in 2004. Algeria's economy has grown by more than 5% in each of the past five years, posting 5.6% growth in 2006. The country's foreign debt fell from a high of $28 billion in 1999 to $5 billion in 2006; in that year Algeria paid off the last of its Paris Club debt. The spike in oil prices in 1999-2000 and 2004, the government's tight fiscal policy and conservative budgeting of oil prices from 2000 to present, a large increase in the trade surplus, and the near tripling of foreign exchange reserves have helped the country's finances.

The government pledges to continue its efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector. The Algerian Government has had little success at reducing high unemployment, officially estimated at 13% in 2006, though international estimates put the figure higher, and at improving living standards.

Priority areas are banking and judicial reform, improving the investment environment, partial or complete privatization of state enterprises, and reducing government bureaucracy. The government has privatized certain sectors of the economy and embraced joint venture investment opportunities with traditionally state owned and operated entities. In 2001, Algeria concluded an Association Agreement with the European Union, which was ratified in 2005 by both Algeria and the EU and took effect in September of that same year. The government is working toward accession to the World Trade Organization.

DEFENSE
Algeria's armed forces, known collectively as the Popular National Army (ANP), total 138,000 active members, with some 100,000 reservists. The president serves as Minister of National Defense. Military forces are supplemented by a 60,000-member national gendarmerie, a rural police force, under the control of the president and a 30,000-member Sureté Nationale or Metropolitan Police force under the Ministry of the Interior. Eighteen months of national military service is compulsory for men.

Algeria is a leading military power in the region and has demonstrated remarkable success in its struggle against terrorism. The Algerian military, having fought a decade-long insurgency, has increased expenditures in an effort to modernize and return to a more traditional defense role.

Due to historical difficulties in acquiring U.S. military equipment, Algeria's primary military supplier has traditionally been Russia, and to a lesser extent China; Algeria recently made large purchases of advanced weaponry from the former. Algeria has, however, in recent years, begun to diversify its supplies of military equipment to include U.S.-made airborne surveillance aircraft and ground radars.

FOREIGN RELATIONS
Algeria has traditionally practiced an activist foreign policy and in the 1960s and 1970s was noted for its support of Third World policies and independence movements. Algerian diplomacy was instrumental in obtaining the release of U.S. hostages from Iran in 1980. Since his first election in 1999, President Bouteflika worked to restore Algeria's international reputation, traveling extensively throughout the world. In July 2001, he became the first Algerian President to visit the White House in 16 years. He has made official visits to France, South Africa, Italy, Spain, Germany, China, Japan, Portugal, Russia, the United Kingdom, and Latin American countries, among others, since his inauguration.

Algeria has taken the lead in working on issues related to the African continent. Host of the Organization of African Unity (OAU) Conference in 2000, Algeria also was key in bringing Ethiopia and Eritrea to the peace table in 2000. In 2001, the 37th summit of the OAU formally adopted the New Partnership for Africa's Development (NEPAD) to address the challenges facing the continent. Algeria has taken a lead in reviving the Union of the Arab Maghreb with its neighbors.

Since 1976, Algeria has supported the Polisario Front, which claims to represent the population of Western Sahara. Contending that the Sahrawis have a right to self-determination under the UN Charter, Algeria has provided the Polisario with support and sanctuary in refugee camps in the southwestern Algerian province of Tindouf. UN involvement in the Western Sahara includes MINURSO, a peacekeeping force, UNHCR, which handles refugee assistance and resettlement, and the World Food Program (WFP). Active diplomatic efforts to resolve the dispute under the auspices of the United Nations Secretary General are ongoing.

Algeria's support of self-determination for the Polisario is in opposition to Morocco's claim of sovereignty. The dispute remains a major obstacle to bilateral and regional cooperation. Although the land border between Morocco and Algeria was closed in the wake of a terrorist attack in 1994, the two have worked at improving relations, and in July 2004, Morocco lifted visa requirements for Algerians. Algeria reciprocated with the lifting of visa requirements for Moroccans on April 2, 2005. Algeria has friendly relations with its other neighbors in the Mahgreb, Tunisia and Libya, and with its sub-Saharan neighbors, Mali and Niger. It closely monitors developments in the Middle East and has been a strong proponent of the rights of the Palestinian people, as well as a supporter of Iraq's democratic transition.

Algeria has diplomatic relations with more than 100 foreign countries, and over 90 countries maintain diplomatic representation in Algiers. Algeria held a nonpermanent, rotating seat on the UN Security Council from January 2004 to December 2005. Algeria hosted 13 Arab leaders at the Arab League Summit, March 22-23, 2005.

U.S.-ALGERIAN RELATIONS
In July 2001, President Bouteflika became the first Algerian President to visit the White House since 1985. This visit, followed by a second meeting in November 2001, a meeting in New York in September 2003, and President Bouteflika's participation at the June 2004 G8 Sea Island Summit, is indicative of the growing relationship between the United States and Algeria. Since the September 11, 2001 terrorist attacks in the United States, contacts in key areas of mutual concern, including law enforcement and counter-terrorism cooperation, have intensified. Algeria publicly condemned the terrorist attacks on the United States and has been strongly supportive of the international war against terrorism. The United States and Algeria consult closely on key international and regional issues. The pace and scope of senior-level visits has accelerated. In April 2006, then-Foreign Minister Bedjaoui met with Secretary of State Condoleezza Rice.

In 2006, U.S. direct investment in Algeria totaled $5.3 billion, mostly in the petroleum sector, which U.S. companies dominate. American companies also are active in the banking and finance, services, pharmaceuticals, medical facilities, telecommunications, aviation, seawater desalination, energy production, and information technology sectors. Algeria is the United States' 3rd-largest market in the Middle East/North African region. U.S. exports to Algeria totaled $1.2 billion in 2005, an increase of more than 50% since 2003. U.S. imports from Algeria grew from $4.7 billion in 2002 to $10.8 billion in 2005, primarily in oil and liquefied natural gas (LNG). In March 2004, President Bush designated Algeria a beneficiary country for duty-free treatment under the Generalized System of Preferences (GSP).

In July 2001, the United States and Algeria signed a Trade and Investment Framework Agreement, which established common principles on which the economic relationship is founded and forms a platform for negotiating a bilateral investment treaty (BIT) and a free-trade agreement (FTA). The two governments meet on an ongoing basis to discuss trade and investment policies and opportunities to enhance the economic relationship. Within the framework of the U.S.-North African Economic Partnership (USNAEP), the United States provided about $1.0 million in technical assistance to Algeria in 2003. This program supported and encouraged Algeria's economic reform program and included support for World Trade Organization accession negotiations, debt management, and improving the investment climate. In 2003, USNAEP programs were rolled over into Middle East Partnership Initiative (MEPI) activities, which provide funding for political and economic development programs in Algeria.

Cooperation between the Algerian and U.S. militaries continues to grow. Exchanges between both sides are frequent, and Algeria has hosted senior U.S. military officials. In May 2005, the United States and Algeria conducted their first formal joint military dialogue in Washington, DC; the second joint military dialogue took place in Algiers in November 2006. The NATO Supreme Allied Commander Europe and Commander, U.S. European Command, General James L. Jones visited Algeria in June and August 2005, and then-Secretary of Defense Donald Rumsfeld visited Algeria in February 2006. The United States and Algeria have also conducted bilateral naval and Special Forces exercises, and Algeria has hosted U.S. Navy and Coast Guard ship visits. In addition, the United States has a modest International Military Education and Training (IMET) Program ($824,000 in FY 2006) for training Algerian military personnel in the United States, and Algeria participates in the Trans-Sahara Counter-Terrorism Partnership (TSCTP).

The United States has implemented modest university linkages programs and has placed two English Language Fellows, the first since 1993, with the Ministry of Education to assist in the development of English as a Second Language (ESL) courses at the Ben Aknoune Training Center. In 2006, Algeria was again the recipient of a grant under the Ambassadors' Fund for Cultural Preservation. That fund provided a grant of $106,110 to restore the El Pacha Mosque in Oran. Algeria also received an $80,000 grant to fund microscholarships to design and implement an American English-language program for Algerian high school students in four major cities.

Initial funding through the Middle East Partnership Initiative (MEPI) has been allocated to support the work of Algeria's developing civil society through programming that provides training to journalists, businesspersons, legislators, Internet regulators, and the heads of leading nongovernmental organizations. Additional funding through the State Department's Human Rights and Democracy Fund will assist civil society groups focusing on the issues of the disappeared, and Islam and democracy.

In August 2005, then-Chairman of the Senate Foreign Relations Committee, Senator Richard G. Lugar, led a Presidential Mission to Algeria and Morocco to oversee the release of the remaining 404 Moroccan POWs held by the Polisario Front in Algeria. Their release removed a longstanding bilateral obstacle between Algeria and Morocco.

The official U.S. presence in Algeria is expanding following over a decade of limited staffing, reflecting the general improvement in the security environment. During the past three years, the U.S. Embassy has moved toward more normal operations and now provides most embassy services to the American and Algerian communities.

Andorra



PROFILE

OFFICIAL NAME:
Principality of Andorra

Geography
Area: 468 sq. km. (180 sq. mi.); about half the size of New York City.
Cities: Capital-Andorra la Vella.
Terrain: Mountainous.
Climate: Temperate, cool, dry.

People
Nationality: Noun and adjective-Andorran(s).
Population (2007): 83,137.
Annual growth rate: 2.36%.
Ethnic groups: Catalan, Spanish, French, Portuguese.
Religion: Roman Catholic.
Languages: Catalan (official), Spanish, French.
Education: Years compulsory--to age 16. Attendance--100%. Literacy--100%.
Health: Infant mortality rate (2006)--3/1,000. Life expectancy (2002)--76 yrs. male, 81 yrs. female.

Government
Type: Parliamentary democracy that retains as its heads of state two co-princes.
Constitution: Ratified in March 1993.
Independence: 1278.
Branches: Heads of State--Two co-princes (President of France, Bishop of Seu d'Urgell in Spain). Executive--Head of Government (Cap de Govern) and eleven ministers (Executive Council). Legislative--Parliament (General Council), founded 1419, consisting of 28 members. Judicial--Civil cases heard in first instance by four judges (batlles) and in appeals by the one-judge Court of Appeals. The highest body is the five-member Superior Council of Justice. Criminal cases are heard by the Tribunal of Courts in Andorra la Vella.
Subdivisions: Seven parishes (parroquies)--Andorra la Vella, Canillo, Encamp, La Massana, Ordino, Sant Julia de Lòria, and Escaldes make up the districts represented in the General Council.
Political parties/groups: Andorran Liberal Party (PLA), CDA (Democratic Center of Andorra), and the Social Democratic Party (PS).
Suffrage: Universal at 18.

Economy
GDP (2007): $3.66 billion.
Natural resources: Hydroelectric power, mineral water, timber, iron ore, lead.
Agriculture: Products--tobacco, sheep.
Industry: Types--tourism, (mainstay of the economy), tobacco products, furniture.
Trade: Major activities are commerce and banking; no official figures are available. Duty-free status.
Official currency: Euro.

PEOPLE
Andorrans live in seven valleys that form Andorra's political districts. Andorrans are a minority in their own country; they make up only approximately 36% of the population or about 28,000 native Andorrans. Spanish, French, and Portuguese residents make up the other 64% of the population.

The national language is Catalan, a romance language related to the Provençal groups. French and Spanish are also spoken.

Education law requires school attendance for children up to age 16. A system of French, Spanish, and Andorran public schools provides education up to the secondary level. Schools are built and maintained by Andorran authorities, who pay also for Andorran teachers. French and Spanish schools pay for their own teachers. About 35% of Andorran children attend the French primary schools, 35% attend Spanish, and 29% attend Andorran schools. Andorran schools follow the Spanish curriculum, and their diplomas are recognized by the Spanish education system. In July 1997, the University of Andorra was established. The number of students makes it impossible for the University of Andorra to develop a full academic program, and it serves principally as a center for virtual studies, connected to Spanish and French universities. The only two graduate schools in Andorra are the Nursing School and the School of Computer Science.

HISTORY
Andorra is the last independent survivor of the March states, a number of buffer states created by Charlemagne to keep the Muslim Moors from advancing into Christian France. Tradition holds that Charlemagne granted a charter to the Andorran people in return for their fighting the Moors. In the 800s, Charlemagne's grandson, Charles the Bald, made Count of Urgell overlord of Andorra. A descendant of the count later gave the lands to the diocese of Urgell, headed by Bishop of Seu d'Urgell.

In the 11th century, fearing military action by neighboring lords, the bishop placed himself under the protection of the Lord of Caboet, a Spanish nobleman. Later, the Count of Foix, a French noble, became heir to Lord Caboet through marriage, and a dispute arose between the French Count and the Spanish bishop over Andorra.

In 1278, the conflict was resolved by the signing of a pareage, which provided that Andorra's sovereignty be shared between the Count of Foix and the Bishop of Seu d'Urgell of Spain. The pareage, a feudal institution recognizing the principle of equality of rights shared by two rulers, gave the small state its territory and political form.

Over the years, the title was passed between French and Spanish rule until, in the reign of the French King Henry IV, an edict in 1607 established the head of the French state and the Bishop of Urgell as co-princes of Andorra.

Given its relative isolation, Andorra has existed outside the mainstream of European history, with few ties to countries other than France and Spain. In recent times, however, its thriving tourist industry and developments in transportation and communications have removed the country from its isolation.

GOVERNMENT
Until recently, Andorra's political system had no clear division of powers into executive, legislative, and judicial branches. A constitution was ratified and approved in 1993. The constitution establishes Andorra as a sovereign parliamentary democracy that retains as its heads of state two co-princes.

The fundamental impetus for this political transformation was a recommendation by the Council of Europe in 1990 that, if Andorra wished to attain full integration into the European Union (EU), it should adopt a modern constitution, which guarantees the rights of those living and working there. A Tripartite Commission--made up of representatives of the co-princes, the General Council, and the Executive Council--was formed in 1990 and finalized the draft constitution in April 1991.

Under the 1993 constitution, the co-princes continue as heads of state, but the head of government retains executive power. The two co-princes serve co-equally with limited powers that do not include veto over government acts. They are represented in Andorra by a delegate. As co-princes of Andorra, the President of France and the Bishop of Seu d'Urgell maintain supreme authority in approval of all international treaties with France and Spain, as well as all those, which deal with internal security, defense, Andorran territory, diplomatic representation, and judicial or penal cooperation. Although the institution of the co-princes is viewed by some as an anachronism, the majority sees them as both a link with Andorra's traditions and a way to balance the power of Andorra's two much larger neighbors.

Andorra's main legislative body is the 28-member General Council (Parliament). The sindic (president), the subsindic, and the members of the Council are elected in the general elections held every four years. The Council meets throughout the year on certain dates set by tradition or as required. The most recent general elections took place on April 24, 2005. The forthcoming Andorran elections will be held in March/April 2009.

At least one representative from each parish must be present for the General Council to meet. Historically, within the General Council, four deputies from each of the seven individual parishes provided representation. This system allowed the smaller parishes, which have as few as 562 voters, the same number of representatives as larger parishes, which have up to 4,014 voters. To correct this imbalance, a provision in the 1993 constitution introduced a modification of the structure and format for electing the members of the Council; under this format, half of the representatives are chosen by the traditional system, while the other half are selected from nationwide lists.

A sindic and a subsindic are chosen by the General Council to implement its decisions. They serve four-year terms and may be reappointed once. They receive an annual salary. Sindics have virtually no discretionary powers, and all policy decisions must be approved by the Council as a whole. Every four years, after the general elections, the General Council elects the head of government, who, in turn, chooses the other members of the Executive Council. The current council has eleven ministers.

The judicial system is independent. Courts apply the customary laws of Andorra, supplemented with Roman law and customary Catalan law. Civil cases are first heard by the batlles court -a group of four judges, two chosen by each co-prince. Appeals are heard in the Court of Appeals. The highest body is the five-member Superior Council of Justice.

Andorra has no defense forces and only a small internal police force. All able-bodied men who own firearms must serve, without remuneration, in the small army, which is unique in that all of its men are treated as officers. The army has not fought for more than 700 years, and its main responsibility is to present the Andorran flag at official ceremonies.

POLITICAL CONDITIONS
Andorra held national elections on April 24, 2005. The ruling Andorran Liberal Party (PLA) won the elections but lost the absolute majority it had attained in the 2001 elections. After 10 years in power, Cap de Govern and PLA leader Marc Forné stepped down as Cap de Govern. His replacement is Former Foreign Minister Albert Pintat, who comes from the same party. The center-right PLA went from 15 to 14 seats in the 28-seat Parliament, while the center-left Social Democratic Party (PS) doubled its representation from 6 to 12 seats. The remaining 2 seats are held by CDA-Segle-21, a union of two center-right parties which are joined in a coalition with PLA. Since the ratification of the constitution in 1993, four coalition governments have been formed. The Pintat government's principal goals have been to address housing scarcity, modernize the country's taxation system, and press forward with reforms required to remove Andorra from the Organization for Economic Cooperation and Development's (OECD) list of tax haven countries.

There has been a redefinition of the qualifications for Andorran citizenship, a major issue in a country where only about 36% are legal citizens. In 1995, a law to broaden citizenship was passed but citizenship remains hard to acquire, with only Andorran nationals being able to transmit citizenship automatically to their children. Lawful residents in Andorra may obtain citizenship after 25 years of residence. Children of residents may opt for Andorran citizenship after 18 if they have resided virtually all of their lives in Andorra. Mere birth on Andorran soil does not confer citizenship. Dual nationality is not permitted. Non-citizens are allowed to own only a 33% share of a company. Only after they have resided in the country for 20 years, will they be entitled to own 100% of a company. A proposed law to reduce the necessary years from 20 to 10 is pending approval in Parliament.

By creating a modern legal framework for the country, the 1993 constitution has allowed Andorra to begin a shift from an economy based largely on tax-free shopping to one based on tourism and international banking and finance. Despite promising new changes, it is likely that Andorra will, at least for the short term, continue to confront a number of difficult issues arising from the large influx of foreign residents and the need to develop modern social and political institutions. In addition to questions of Andorran nationality and immigration policy, other priority issues will include dealing with housing scarcities and speculation in real estate, developing the tourist industry, defining its relationship with the European Union, and reforming the investment law to allow up to 100% foreign ownership in activities and sectors considered strategic.

Principal Government Officials
Co-Prince--Nicolas Sarkozy, President of France
Co-Prince--Joan Enric Vives i Sicilia, Bishop of Seu d'Urgell, Spain
Head of Government--Albert Pintat
Sindic General--Joan Gabriel
Foreign Minister--Meritxell Mateu
Permanent Representative to the United Nations--Carles Font
Ambassador to the United States, resident in New York--Carles Font

ECONOMY
Andorra's national income in 2007 was approximately $3.66 billion, with tourism as its principal component. Attractive for shoppers from France and Spain because of low taxes, the country also has developed active summer and winter tourist resorts. With some 270 hotels and 400 restaurants, as well as many shops, the tourist trade employs a growing portion of the domestic labor force.

There is a fairly active trade in consumer goods, including imported manufactured items, which, because they are taxed at lower rates, are less expensive in Andorra than in neighboring countries. Andorra's tax-free status has also had a significant effect on its relationship with the European Union. Its negotiations with the Union began in 1987. An agreement that went into effect in July 1991 sets duty-free quotas and places limits on certain items--mainly milk products, tobacco, and alcoholic beverages. Andorra is permitted to maintain price differences from other EU countries, and visitors enjoy limited duty-free allowances. In June 2004 Andorra signed a series of accords with the EU in the fields of economic, social, and cultural cooperation. Tax legislation was also approved that taxes interest from monetary products and fixed-interest investments belonging to non-residents while maintaining bank secrecy.

The results of Andorra's elections thus far indicate that many Andorrans support the government's reform initiatives and believe Andorra must, to some degree, integrate into the European Union in order to continue to enjoy its prosperity. Although less than 2% of the land is arable, agriculture was the mainstay of the Andorran economy until the upsurge in tourism. Sheep raising has been the principal agricultural activity, but tobacco growing is lucrative. Most of Andorra's food is imported.

In addition to handicrafts, manufacturing includes cigars, cigarettes, and furniture for domestic and export markets. A hydroelectric plant at Les Escaldes, with a capacity of 26.5 megawatts, provides 40% of Andorra's electricity; Spain provides the rest.

FOREIGN RELATIONS
Since the establishment of sovereignty with the ratification of the constitution in 1993, Andorra has moved to become an active member of the international community. In July 1993, Andorra established its first diplomatic mission in the world, to the United Nations. In early 1995, the United States and Andorra established formal diplomatic relations. Andorra has also expanded relations with other nations.

Andorra is a full member of the United Nations (UN), United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations Conference for Commerce and Development (UNCCD), International Center of Studies for Preservation and Restoration of Cultural Heritage (ICCROM), Telecommunications International Union (UIT), International Red Cross, Universal Copyright Convention, European Council, EUTELSAT, World Tourism Organization, Organization for Security and Cooperation in Europe (OSCE), Customs Cooperation Council (CCC), Interpol, and International Monetary Fund among others. Since 1991, Andorra has had a special agreement with the European Union. In 2008, Andorra announced its endorsement of the Proliferation Security Initiative, designed to combat illegal trafficking in weapons of mass destruction.

Angola



PROFILE

OFFICIAL NAME:
Republic of Angola

Geography
Area: 1,246,700 sq. km. (481,400 sq. mi), about twice the size of Texas.
Cities: Capital--Luanda (est. pop. 5.0 million); Huambo (750,000); Benguela (600,000).
Terrain: A narrow, dry coastal strip extending from the far north (Luanda) to Namibia in the south; well-watered agricultural highlands; savanna in the far east and south; and rain forest in the north and the enclave of Cabinda.
Climate: Tropical and tropical highland.

People
Nationality: Noun and adjective--Angolan(s).
Population (2008 est.): 16,000,000.
Annual population growth rate (2004): 2.8%.
Ethnic groups: Ovimbundu 37%, Kimbundu 25%, Bakongo 13%, mixed racial 2%, European 1%.
Religions (2001 official est.): Roman Catholic 68%, various Protestant 20%; indigenous beliefs 12%.
Languages: Portuguese (official), Ovimbundu, Kimbundu, Bakongo, and others.
Education: Years compulsory--8. Enrollment (combined gross enrollment for primary, secondary, and tertiary schools, 2004 est.)--26%. Literacy (total population over 15 that can read and write, 2004 est.)--67.4% (female 54.2%, male 82.9%).
Health: Life expectancy (2004 est.)--total population 40.7 years. Infant mortality rate (2004 est.)--154/1,000.
Work force (2006 est. 7.7 million): Agriculture 26%, unemployed 27%, percentages in commerce, industry, services and informal sector undetermined.

Government
Type: Republic.
Independence: November 11, 1975.
Branches: Executive--elected president (chief of state), appointed prime minister, and 31 appointed civilian ministers and 55 vice ministers. Legislative--elected National Assembly (223 seats). Judicial--Supreme Court, Constitutional Court.
Administrative subdivisions: Province, municipality, commune.
Political parties: 98 with legal status; in 1992, 12 won seats in the National Assembly. Ruling party--Popular Movement for the Liberation of Angola (MPLA). Opposition--National Union for the Total Independence of Angola (UNITA), Social Renewal Party (PRS), National Front for the Liberation of Angola (FNLA), Party for Democratic Progress - Angola National Alliance (PDP-ANA), Democratic Renewal Party (PRD), Party of the Alliance of Youth, Workers, and Peasants (PAJOCA), Liberal Democratic Party (PLD), Democratic Alliance (AD), Angolan Democratic Forum (FDA), Social Democratic Party (PSD), Front for Democracy (FPD), and the Angolan National Democratic Party (PNDA).
Suffrage: Universal age 18 and over.

Economy
GDP (2007 est. using purchasing power parity): $91.29 billion.
Annual real GDP growth rate (2007 est.): 21.1%.
Per capita GDP (2007 est. using purchasing power parity): $5,600.
Avg. inflation rate (2007): 12.2%.
Natural resources: Petroleum, diamonds, iron ore, phosphates, bauxite, uranium, gold, granite, copper, feldspar.
Agriculture: Products--bananas, sugarcane, coffee, sisal, corn, cotton, manioc, tobacco, vegetables, plantains; livestock; forest products; fisheries products.
Industry: Types--petroleum drilling and refining, mining, cement, fish processing, food processing, brewing, tobacco products, sugar, textiles, ship repair.
Trade: Exports (2007 est.)--$44.32 billion. Consisting of crude oil, diamonds, refined petroleum products, gas, coffee, sisal, fish and fish products, timber, cotton. Major markets (2006)--U.S. (38.1%), China (34.2%), Taiwan (5.8%), France (4.9%), Chile (4.1%). Imports (2007)--$12.29 billion: machinery and electrical equipment, vehicles and spare parts, medicines, food, textiles, military goods. Major sources (2006)--U.S. (15.3%), Portugal (15%), South Korea (10.1%), China (8.8%), Brazil (8.2%), South Africa (6.7%), France (6.2%).

GEOGRAPHY
Angola is located on the South Atlantic Coast of West Africa between Namibia and the Republic of the Congo. It also is bordered by the Democratic Republic of the Congo to the north and east and Zambia to the east. The country is divided into an arid coastal strip stretching from Namibia to Luanda; a wet, interior highland; a dry savanna in the interior south and southeast; and rain forest in the north and in Cabinda. The upper reaches of the Zambezi River pass through Angola, and several tributaries of the Congo River have their sources in Angola. The coastal strip is tempered by the cool Benguela current, resulting in a climate similar to coastal Baja California. The hot, humid rainy season lasts from November to April, followed by a moderate dry season from May to October. The interior highlands have a mild climate with a rainy season from November through April followed by a cool dry season from May to October, when overnight temperatures can fall to freezing. Elevations generally range from 3,000 to 6,000 feet. The far north and Cabinda enjoy rain throughout much of the year.

PEOPLE
Estimates of Angola's population vary widely, as there has been no census since 1970, but it is estimated at no less than 16 million. Angola has three main ethnic groups, each speaking a Bantu language: Ovimbundu 37%, Kimbundu 25%, and Bakongo 13%. Other groups include Chokwe, Lunda, Ganguela, Nhaneca-Humbe, Ambo, Herero, and Xindunga. In addition, mixed racial (European and African) people amount to about 2%, with a small (1%) population of whites, mainly ethnically Portuguese. Portuguese make up the largest non-Angolan population, with at least 30,000 (though many native-born Angolans can claim Portuguese nationality under Portuguese law). Portuguese is both the official and predominant language.

HISTORY
In 1482, when the Portuguese first landed in what is now northern Angola, they encountered the Kingdom of the Congo, which stretched from modern Gabon in the north to the Kwanza River in the south. Mbanza Congo, the capital, had a population of 50,000 people. South of this kingdom were various important states, of which the Kingdom of Ndongo, ruled by the ngola (king), was most significant. Modern Angola derives its name from the king of Ndongo. The Portuguese gradually took control of the coastal strip throughout the 16th century by a series of treaties and wars. The Dutch occupied Luanda from 1641-48, providing a boost for anti-Portuguese states. In 1648, Brazilian-based Portuguese forces re-took Luanda and initiated a process of military conquest of the Congo and Ndongo states that ended with Portuguese victory in 1671. Full Portuguese administrative control of the interior did not occur until the beginning of the 20th century.

Portugal's primary interest in Angola quickly turned to the slave trade. The slaving system began early in the 16th century with the purchase from African chiefs of people to work on sugar plantations in São Tomé, Principé, and Brazil. Many scholars agree that by the 19th century, Angola was the largest source of slaves not only for Brazil, but also for the Americas, including the United States. By the end of the 19th century, a massive forced labor system had replaced formal slavery and would continue until outlawed in 1961. It was this forced labor that provided the basis for development of a plantation economy and, by the mid-20th century, a major mining sector. Forced labor combined with British financing to construct three railroads from the coast to the interior, the most important of which was the transcontinental Benguela railroad that linked the port of Lobito with the copper zones of the Belgian Congo and what is now Zambia, through which it connects to Dar Es Salaam, Tanzania.

Colonial economic development did not translate into social development for native Angolans. The Portuguese regime encouraged white immigration, especially after 1950, which intensified racial antagonisms. As decolonization progressed elsewhere in Africa, Portugal, under the Salazar and Caetano dictatorships, rejected independence and treated its African colonies as overseas provinces. Consequently, three independence movements emerged: the Popular Movement for the Liberation of Angola (MPLA) led by Agostinho Neto, with a base among Kimbundu and the mixed-race intelligentsia of Luanda, and links to communist parties in Portugal and the East Bloc; the National Front for the Liberation of Angola (FNLA), led by Holden Roberto with an ethnic base in the Bakongo region of the north and links to the United States and the Mobutu regime in Kinshasa; and the National Union for the Total Independence of Angola (UNITA), led by Jonas Malheiro Savimbi with an ethnic and regional base in the Ovimbundu heartland in the center of the country and links to the People's Republic of China and apartheid South Africa.

From the early 1960s, elements of these movements fought against the Portuguese. A 1974 coup d'etat in Portugal established a military government that promptly ceased the war and agreed, in the Alvor Accords, to hand over power to a coalition of the three movements. The ideological differences between the three movements eventually led to armed conflict, with FNLA and UNITA forces, encouraged by their respective international supporters, attempting to wrest control of Luanda from the MPLA. The intervention of troops from South Africa on behalf of UNITA and Zaire on behalf of the FNLA in September and October 1975 and the MPLA's importation of Cuban troops in November effectively internationalized the conflict. Retaining control of Luanda, the coastal strip, and increasingly lucrative oil fields in Cabinda, the MPLA declared independence on November 11, 1975, the day the Portuguese abandoned the capital. UNITA and the FNLA formed a rival coalition government based in the interior city of Huambo. Agostinho Neto became the first president of the MPLA government that was recognized by the United Nations in 1976. Upon Neto's death from cancer in 1979, then-Planning Minister José Eduardo dos Santos ascended to the presidency.

The FNLA's military failures led to its increasing marginalization, internal divisions, and abandonment by international supporters. An internationalized conventional civil war between UNITA and the MPLA continued until 1989. For much of this time, UNITA controlled vast swaths of the interior and was backed by U.S. resources and South African troops. Similarly, tens of thousands of Cuban troops remained in support of the MPLA, often fighting South Africans on the front lines. A U.S.-brokered agreement resulted in withdrawal of foreign troops in 1989 and led to the Bicesse Accord in 1991, which spelled out an electoral process for a democratic Angola under the supervision of the United Nations. When UNITA's Jonas Savimbi failed to win the first round of the presidential election in 1992 (he won 40% to dos Santos's 49%, which required a runoff), he called the election fraudulent and returned to war. Another peace accord, known as the Lusaka Protocol, was brokered in Lusaka, Zambia, and signed in 1994. This agreement, too, collapsed into renewed conflict. The UN Security Council voted on August 28, 1997 to impose sanctions on UNITA. The Angolan military launched a massive offensive in 1999, which destroyed UNITA's conventional capacity and recaptured all major cities previously held by Savimbi's forces. Savimbi then declared a return to guerrilla tactics, which continued until his death in combat in February 2002.

On April 4, 2002, the Angolan Government and UNITA signed the Luena Memorandum of Understanding (MOU), which formalized the de facto cease-fire that prevailed following Savimbi's death. In accordance with the MOU, UNITA recommitted to the peace framework in the 1994 Lusaka Protocol, returned all remaining territory to Angolan Government control, quartered all military personnel in predetermined locations, and relinquished all arms. In August 2002, UNITA demobilized all military personnel and the UN Security Council sanctions on UNITA were lifted on December 9, 2002. UNITA and the MPLA held their first post-war party congresses in 2003. The UNITA Congress saw the democratic transfer of power from interim leader General Paulo Lukumba "Gato" to former UNITA representative in Paris Isaias Henriqué Samakuva, while the MPLA Congress reaffirmed President dos Santos' leadership of party structures. Samakuva was reelected to a second 4-year term as UNITA party president at a UNITA party congress in July 2007.

The signing of the Memorandum of Understanding (MOU) for Peace and Reconciliation in Cabinda on August 1, 2006, was intended as a step toward ending conflict in Cabinda and in bringing about greater representation for the people of Cabinda. It followed a successful counterinsurgency campaign by the Angolan Armed Forces (FAA), who still maintain a strong troop presence there. The MOU rejected the notion of Cabindan independence, calls for the demobilization and reintegration of former Front for the Liberation of the Enclave of Cabinda (FLEC) fighters into various governmental positions, and creates a special political and economic status for the province of Cabinda. Many FLEC military combatants were integrated into the Angolan Armed Forces and National Police, including into some command positions. In addition, Cabindans were given designated numbers of vice ministerial and other positions in the Angolan Government. Some FLEC members, who did not sign onto the peace memorandum, continue their independence efforts through public outreach, infrequent low-level attacks against FAA convoys and outposts, and occasional attacks on civilians.

GOVERNMENT AND POLITICAL CONDITIONS
Angola changed from a one-party Marxist-Leninist system ruled by the MPLA to a nominal multiparty democracy following the 1992 elections, in which President dos Santos won the first-round election with 49% of the vote to Jonas Savimbi's 40%; a runoff never took place. The Constitutional Law of 1992 establishes the broad outlines of government structure and delineates the rights and duties of citizens. The government is based on ordinances, decrees, and decisions issued by a president and his ministers or through legislation produced by the National Assembly and approved by the president. The Assembly is generally subordinate to the executive.

Angola is governed by a president who is assisted by a prime minister and 31 cabinet ministers, all appointed by the president. Political power is concentrated in the presidency. The executive branch of the government is composed of the president (head of state and government), the prime minister, and the Council of Ministers. The Council of Ministers, composed of all government ministers and vice ministers, meets regularly to discuss policy issues. The president, the Council of Ministers, and individual ministers in their areas of competence have the ability to legislate by decree.

Of the 220 deputies in the National Assembly, 130 are elected at large, and 5 are elected to represent each of the 18 provinces. The Electoral Law also calls for the election of three additional deputies to represent citizens living abroad; however, those positions were not filled in the 1992 elections. The ruling MPLA controls 59% of the Assembly's seats. On June 4, 2008 President dos Santos officially called for legislative elections to be held on September 5, 2008, Angola's first election since 1992. The announcement follows a voter registration process that registered over 8 million Angolans. Presidential elections are planned for 2009, with municipal elections to follow. The central government administers the country through 18 provinces. Governors of the provinces are appointed by and serve at the pleasure of the president. The government has embarked on a program of decentralization, and in August 2007 the Council of Ministers passed a resolution to grant 50 municipalities control of their own budgets.

The legal system is based on Portuguese and customary law but is weak and fragmented. Courts operate in only a fraction of the 164 municipalities. A Supreme Court serves as the appellate tribunal; a Constitutional Court with powers of judicial review has never been constituted despite statutory authorization. Recently, the Supreme Court has acted as a Constitutional Court.

The 27-year-long civil war ravaged the country's political and social institutions. The government estimates that 4.7 million people were internally displaced by the civil war. In March 2007, the UN High Commissioner for Refugees (UNHCR) and Angola jointly celebrated the end of a 5-year organized voluntary repatriation program that returned home more than 400,000 Angolan refugees. UNHCR and the Angolan Government estimate that over 200,000 refugees remain outside Angola, and the government has assured that all remaining refugees have the right to return. Daily conditions of life throughout the country mirror the inadequate administrative infrastructure as well as weak social institutions. Government support for social institutions is often inadequate. Many hospitals are without medicines or basic equipment, schools are without books, and public employees often lack the basic supplies for their day-to-day work.

Principal Government Officials
President--Jose Eduardo dos Santos
Prime Minister--Fernando da Piedade Dias dos Santos "Nando"
Deputy Prime Minister for Economic Affairs--Aguinaldo Jaime
Minister of External Affairs--João Bernardo de Miranda
Minister of the Interior--Roberto Leal Monteiro Ngongo
Minister of Finance--José Pedro de Morais
Minister of Defense--Kundi Paihama
Minister of Petroleum--Desidério da Graça Veríssimo da Costa
Minister of Planning--Ana Dias Lourenço
Ambassador to the United States--Josefina Perpetua Pitra Diakite
Permanent Representative to the United Nations--Ismael Gaspar Martins

ECONOMY
Angola has a fast-growing economy largely due to a major oil boom, but it also ranks in the bottom 10% of most socioeconomic indicators. The country's real GDP growth rate was estimated at 21.1% for 2007. Angola is recovering from 27 years of nearly continuous warfare, and it remains beset by corruption and economic mismanagement. Despite abundant natural resources, and rising per capita GDP, it was ranked 161 out of 177 countries on the 2006 UN Development Program's (UNDP) Human Development Index. Subsistence agriculture sustains one-third of the population.

The rapidly expanding petroleum industry has reached its Organization of Petroleum Exporting Countries (OPEC) cap, producing approximately 2 million barrels per day (bpd). Angola's crude oil production is one of the highest in Africa, behind only Nigeria. Crude oil accounts for 51.7% of GNP, 95% of exports, and 80% of government revenues. Angola also produces 40,000 bpd of locally refined oil. Oil production remains largely offshore and has few linkages with other sectors of the economy, though a local content initiative promulgated by the Angolan Government is pressuring oil companies to source from local businesses.

Block 15, located offshore of Soyo, currently provides 30% of Angola's crude oil production. ExxonMobil, through its subsidiary Esso, is the operator with a 40% share. In 2005, Block 15's second major sub-field, Kizomba B, came online producing at about 250,000 bpd. BP, ENI-Agip, and Statoil are partners in the concession. Chevron operates Block 0, offshore Cabinda, which provides about 20% of Angola's crude oil production. Its partners in Block 0 are Sonangol (the Angolan state oil company), TotalFinaElf, and ENI-Agip. In 2007, Block 0 had a total production of 370,000 bpd, and drilling activity continues at a high level. Chevron also operates Angola's first deepwater section to go into production, Block 14, which started pumping in January 2000 and produced 105,000 bpd in 2006.

TotalFinaElf brought the first Kwanza Basin deepwater blocks on-line with production from its Block 17 concession that began in February 2002. Inauguration of the Dalia oilfield in December 2006 combined with the Girassol field already in operation brought Block 17's total production to approximately 500,000 bpd as of July 2007. Total expects to begin drilling in new oilfield Pazflor in 2009, bringing production to a peak 700,000 bpd by 2011. Exploration is ongoing in ultra-deep water concessions and in deepwater and shallow concessions in the Namibe Basin. BP made the first significant ultra-deepwater find in its Block 31 concession in 2002 and had reached nine significant discoveries by the end of 2005. BP expected to ship its first crude from the Plutonio oilfield in Block 18 in September 2007 and expects Plutonio to average 200,000 bpd in full production. Marathon also drilled a successful well in its Block 32 ultra-deep water concession. TotalFinaElf operates Angola's one refinery (in Luanda) for sole owner Sonangol; plans for a second refinery in Lobito with projected production of 200,000 bpd are moving forward. There are plans to increase capacity of the Luanda refinery from 40,000 bpd to 100,000 bpd. Chevron, Sonangol, BP, Total, and Eni are developing a $4-5 billion liquefied natural gas plant at Soyo, to be constructed by Bechtel, expected to start production in 2012.

Exports to Asian countries have grown rapidly in recent years, particularly to China. In late 2004, China's state oil company Sinopec entered the market offering two separate $1 billion signing bonus offers on two offshore blocks. Sinopec has also formed a partnership with Sonangol to operate Block 3/05 (formerly Block 3/80), whose operation was transferred from Total to Sonangol. Sonangol will seek to expand its operation of onshore and shallow water blocks. This includes the northern block of Cabinda's onshore concessions, which since the reduction in hostilities with separatist forces is now open to exploration. Sonangol and Sinopec will also be eyeing future concession rounds, particularly for 23 blocks in the Kwanza Basin onshore area and the relinquished parts of Blocks 15, 17, and 18, currently operated by Exxon, Total, and BP. During 2006, Angola was the leading source country in terms of dollar value for the crude oil China imported, importing U.S. $10.928 billion, up 16.5% year on year.

Diamonds make up most of Angola's remaining exports, with yearly production at 6 million carats. Diamond sales reached approximately $1.1 billion in 2006. Despite increased corporate ownership of diamond fields, much production is currently in the hands of small-scale prospectors, often operating illegally. Only eight large-scale mines are operating out of a total of 145 concessions. In June 2005, De Beers signed a $10 million prospecting contract with the government's diamond parastatal, ending a 4-year investment dispute between De Beers and the government. The government is making an increased effort to register and license prospectors. Legal sales of rough diamonds may occur only through the government's diamond-buying parastatal, although many producers continue to bypass the system to obtain higher prices. The government has established an export certification scheme consistent with the "Kimberley Process" to identify legitimate production and sales. Other mineral resources, including gold, remain largely undeveloped, though granite and marble quarrying have begun.

In the last decade of the colonial period, Angola was a major African agricultural exporter. Because of severe wartime conditions, including extensive laying of landmines throughout the countryside, agricultural activities came to a near standstill, and the country now imports over half of its food. Small-scale agricultural production has increased several-fold over the last 5 years due to demining efforts, infrastructure improvements, and the ability of returnees and internally displaced persons (IDPs) to safely return to agricultural areas, yet production of most crops remains below 1974 levels. Some efforts at commercial agricultural recovery have gone forward, notably in fisheries and tropical fruits, but most of the country's vast potential remains untapped. Recently passed land reform laws will attempt to reconcile overlapping traditional land use rights, colonial-era land claims, and recent land grants to facilitate significant commercial agricultural development.

An economic reform effort launched in 1998 was only marginally successful in addressing persistent fiscal mismanagement and corruption. In April 2000, Angola started an International Monetary Fund (IMF) staff-monitored program (SMP). The program lapsed in June 2001 over IMF concerns about lack of progress by Angola. Under the program, the Government of Angola did succeed in unifying exchange rates and moving fuel, electricity, and water prices closer to market rates. In March 2007, the government announced it was not interested in a formally-structured IMF program, but would continue to participate in Article IV consultations and other technical assistance on an ad hoc basis.

In December 2002, President dos Santos named a new economic team to oversee homegrown reform efforts. The new team succeeded in decreasing overall government spending, rationalizing the Kwanza exchange rate, closing regulatory loopholes allowing off-budget expenditures, and capturing all revenues in the state budget. New procedures were implemented to track the flow of funds between the Treasury, Banco Nacional de Angola (the central bank), and the state-owned Banco de Poupanca e Credito, which operates the budget. The Angolan Government adopted a new investment code. Concerns remain about quasi-fiscal operations by the state oil company Sonangol, continued oil-backed commercial borrowing by the Angolan Government, and inadequate transparency and oversight in the management of public accounts. The Angolan commercial code, financial sector law, and telecommunications law all require substantial revision.

Angola is the third-largest trading partner of the United States in sub-Saharan Africa, largely because of its petroleum exports. U.S. exports to Angola primarily consist of industrial goods and services--such as oilfield equipment, mining equipment, chemicals, aircraft, and food. On December 30, 2003, President Bush approved the designation of Angola as eligible for tariff preferences under the African Growth and Opportunity Act (AGOA).

DEFENSE
The Angolan Armed Forces, known by its Portuguese acronym FAA, are headed by a chief of staff who reports to the civilian minister of defense. There are three services--the army, navy, and air force. The army is by far the largest of the services with about 110,000 personnel. The navy numbers about 3,000 and operates several small patrol craft and barges. Air force personnel total about 7,000; its equipment includes Russian-manufactured fighters and transport planes, Bell helicopters, and Italian trainers. The "Casa Militar," or presidential guard, answers directly to the Office of the President and is separate from FAA command and control structures.

FOREIGN RELATIONS
From 1975 to 1989, Angola was aligned with the Soviet Union and Cuba. Since then, it has focused on improving relationships with Western countries, cultivating links with other Portuguese-speaking countries, and asserting its own national interests in Central Africa through military and diplomatic intervention. It has entered the Southern African Development Community (SADC) in order to improve its ties with its largely anglophone neighbors to the south. In 1997, Zimbabwe and Namibia joined Angola in its military intervention in the Democratic Republic of the Congo, where Angolan troops fought in support of the Laurent and Joseph Kabila governments. It also has intervened in the Republic of the Congo (Brazzaville) in support of President Sassou-Nguesso. Angola has also engaged in a more robust economic relationship with the People's Republic of China. The P.R.C. has extended over U.S. $7 billion in credit to Angola. Angola has also received billion dollar lines of credit from Brazil and Germany.

Multilaterally, Angola has promoted the revival of the Community of Portuguese-Speaking Countries (CPLP) as a forum for cultural exchange and a means of expanding ties with Portugal and Brazil. During the peace process, the government fully cooperated with the UN Mission in Angola (UNMA), which concluded its mandate in mid-February 2003. Angola concluded a 2-year term on the UN Security Council in December 2004. In June 2007, it began a 3-year term on the Human Rights Council.

U.S.-ANGOLAN RELATIONS
The U.S. Mission in Angola includes four agencies--the Department of State, the U.S. Agency for International Development (USAID), the Department of Defense, and the Department of Health and Human Services' Centers for Disease Control and Prevention (HHS/CDC). In addition, a variety of federal agencies maintain relationships with the Angolan Government through ongoing projects, including the Federal Aviation Administration, the Department of Transportation, the Department of Commerce, the U.S. Trade Development Agency, and the Department of Energy.

The United States and Angola established formal diplomatic relations in 1993. Thereafter, the U.S. played a role in facilitating the Lusaka Protocol that sought an end to Angola's long-running civil war. Since war's end in 2002, United States foreign policy goals in Angola have sought to consolidate peace and security, promote economic prosperity, improve health, and encourage Angola's transition to democracy and respect for human rights. The U.S. has worked in partnership with Angola to remove thousands of landmines and help war refugees and internally displaced people return to their homes.

USAID's development program in Angola in FY 2007 was consistent with the country's status as a developing country at a pivotal juncture in its development and reconstruction. In FY 2006, the program budget was $25.5 million and focused on civil society strengthening, improved governance, and democratization; market-oriented economic analysis and economic reform policy; agricultural sector productivity; maternal and child health; HIV/AIDS prevention, education, and voluntary counseling; and workforce development. Angola also launched a major program to fight malaria through the President's Malaria Initiative (PMI). The Governing Justly and Democratically objective strengthens constituencies and institutions required for democratic governance by strengthening civil society organizations and promoting local government decentralization; fostering an independent media, government transparency, accountability, and capability, and improved dialogue between citizens and government; and laying the groundwork for free and fair elections. The Investing in People objective aims to improve maternal and child health and prevent the spread of HIV/AIDS and other infectious diseases by helping communities and institutions to provide necessary health services and to conduct HIV/AIDS prevention programs. The PMI is the largest health program and expands efforts to scale up proven preventive and treatment interventions toward achievement of 85% coverage among vulnerable groups and 50% reduction in morbidity due to malaria. The Economic Growth objective fosters economic policy and financial sector reform; credit access for micro-, small-, and medium-sized enterprises; and expanded trade and investment.

To assist with economic reform, in FY 2007 the State Department provided $2.2 million to work on land tenure, economic policy, and the financial sector. An additional $143,000 in grants was provided to community development projects and non-governmental organization (NGO)-sponsored democracy and human rights projects. $152,000 in International Military Education and Training (IMET) funds was provided for English language training to the Angolan Armed Forces. Professional training for law enforcement personnel at the International Law Enforcement Academy (ILEA) in Gaborone, Botswana continued. The Safe Skies for Africa program provided around $800,000 in equipment and training to the Angolan civil aviation authority. As part of its public diplomacy program, the Embassy provided nearly $434,000 in English language training, educational exchanges and fellowships, and information resource services. The State Department provided $6 million for ongoing landmine, small arms, and munitions destruction projects throughout the country. These projects have played a major role in clearing agricultural land and opening critical road networks and increasing access in those areas of the country most impacted by landmines.

At the same time, the energy-based U.S. trading relationship continues to expand and spark other ties. One offshoot has been the development of a Sister City relationship between Lafayette, Louisiana and Cabinda and between Houston, Texas and Luanda. The Catholic University of Luanda has close links with a number of American institutions and has received support from the Angola Educational Assistance Fund, a U.S. non-profit organization organized by Citizens Energy of Boston. Sonangol has a longstanding program of educating its professionals in U.S. universities, complementing Chevron's policy of U.S. training for its own growing pool of Angolan professionals.

PROFILE

OFFICIAL NAME:
Antigua and Barbuda



Geography
Area: Antigua--281 sq. km. (108 sq. mi.); Barbuda--161 sq. km. (62 sq. mi.).
Cities: Capital--St. John's (pop. 30,000).
Terrain: Generally low-lying, with highest elevation 405 m. (1,330 ft.).
Climate: Tropical maritime.

People
Nationality: Noun and adjective--Antiguan(s), Barbudan(s).
Population (2006): 84,097.
Annual population growth rate (2005): 1.3%.
Ethnic groups: Almost entirely of African origin; some of British, Portuguese, and Levantine Arab origin.
Religions: Principally Anglican, with evangelical Protestant and Roman Catholic minorities.
Language: English.
Education (2005): Adult literacy--85.8%.
Health (2006): Infant mortality rate--10/1,000. Life expectancy--men 70 years; women 74 years.
Work force (2005): 30,000 (commerce and services, agriculture, other industry).
Unemployment (2002): 13%.

Government
Type: Parliamentary democracy; independent sovereign state within the Commonwealth.
Constitution: 1981.
Independence: November 1, 1981.
Branches: Executive--governor general (representing Queen Elizabeth II, head of state), prime minister (head of government), cabinet. Legislative--bicameral Parliament. Judicial--magistrate's courts, Eastern Caribbean Supreme Court (High Court and Court of Appeals), Privy Council in London.
Administrative subdivisions: Six parishes and two dependencies (Barbuda and Redonda).
Political parties: Antigua Labour Party (ALP), United Progressive Party (UPP, majority), Barbuda People's Movement (BPM).
Suffrage: Universal at 18.

Economy
GDP (2007): $1.189 billion.
GDP growth rate (2007): 3.8%.
Per capita GDP (2007): $10,671.
Inflation (2005): 0.9%.
Natural resources: Negligible.
Agriculture: Fish, cotton, livestock, vegetables, and pineapples.
Services: Tourism, banking, and other financial services.
Trade (2005): Exports--$58 million (merchandise) and $454 million (commercial services). Major markets--European Union (23.2%), United States (7.7%), Anguilla (7.0%), St. Kitts and Nevis (10.3%), Netherlands Antilles (23.4%). Imports--$497 million (merchandise) and $197 million (commercial services). Major suppliers--United States (48.9%), Netherlands Antilles (10.2%), European Union (11.6%), Trinidad and Tobago (10.9%), Canada (3.7%).
Official exchange rate: EC$2.70 = U.S. $1.

HISTORY
Antigua was first inhabited by the Siboney ("stone people"), whose settlements date at least to 2400 BC. The Arawaks--who originated in Venezuela and gradually migrated up the chain of islands now called the Lesser Antilles--succeeded the Siboney. The warlike Carib people drove the Arawaks from neighboring islands but apparently did not settle on either Antigua or Barbuda.

Christopher Columbus landed on the islands in 1493, naming the larger one "Santa Maria de la Antigua." The English colonized the islands in 1632. Sir Christopher Codrington established the first large sugar estate in Antigua in 1674, and leased Barbuda to raise provisions for his plantations. Barbuda's only town is named after him. Codrington and others brought slaves from Africa's west coast to work the plantations.

Antiguan slaves were emancipated in 1834, but remained economically dependent on the plantation owners. Economic opportunities for the new freedmen were limited by a lack of surplus farming land, no access to credit, and an economy built on agriculture rather than manufacturing. Poor labor conditions persisted until 1939, which saw the birth of the trade union movement in Antigua and Barbuda.

The Antigua Trades and Labour Union became the political vehicle for Vere Cornwall Bird, who was elected as the Labour Union's president in 1943. The Antigua Labour Party (ALP), formed by Bird and other trade unionists, first ran candidates in the 1946 elections and became the majority party in 1951, beginning a long history of electoral victories.

Bird and the ALP were voted out of office in the 1971 general elections that swept the progressive labor movement into power, but returned to office in 1976, winning renewed mandates in every subsequent election under Vere Bird's leadership until 1994 and also under the leadership of his son, Lester Bird, until 2004.

In March 2004 the ALP lost power in national elections that gave the United Progressive Party (UPP) 13 of the 17 seats in Parliament. The ALP lost again to the Baldwin Spencer-led UPP in the March 2007 elections.

GOVERNMENT AND POLITICAL CONDITIONS
As head of state, Queen Elizabeth II is represented in Antigua and Barbuda by a governor general who acts on the advice of the prime minister and the cabinet. Antigua and Barbuda has a bicameral legislature: a 17-member Senate appointed by the governor general--mainly on the advice of the prime minister and the leader of the opposition--and a 17-member popularly elected House of Representatives. The prime minister is the leader of the majority party in the House and conducts affairs of state with the cabinet. The prime minister and the cabinet are responsible to the Parliament. Elections must be held at least every 5 years but may be called by the prime minister at any time. National elections were last held on March 23, 2007.

Constitutional safeguards include freedom of speech, press, worship, movement, and association. Antigua and Barbuda is a member of the eastern Caribbean court system. Jurisprudence is based on English common law.

Principal Government Officials
Chief of State--Queen Elizabeth II
Governor General--H. E. Louise Agnetha Lake-Tack
Prime Minister and Minister of Foreign Affairs--Winston Baldwin Spencer
Ambassador to the United States and the OAS--Deborah Mae Lovell
Ambassador to the United Nations--Dr. John Ashe

Antigua and Barbuda maintains an embassy in the United States at 3216 New Mexico Ave. NW, Washington, DC 20016 (tel. 202-362-5122).

ECONOMY
Antigua and Barbuda's service-based economy grew by 3.8% in 2007, experiencing its third consecutive year of strong growth. Construction, banking and insurance, communications, and wholesale and retail trade sectors were the main contributors to economic growth, which was driven by a construction boom in hotels and housing, as well as projects related to the 2007 Cricket World Cup. The tourism and hospitality sector has largely recovered after the decrease in tourism following the September 11, 2001 terrorist attacks. It posted a strong performance in 2004, and in 2005 the sector was estimated at 50% of GDP.

To lessen its vulnerability to natural disasters and economic shocks, Antigua has sought to diversify its economy by encouraging growth in transportation, communications, Internet gambling, and financial services.

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

Antigua and Barbuda is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. In 2005, 7.7% of its total exports went to the United States, and 48.9% of its total imports came from the United States. Antigua and Barbuda also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM) and the CARICOM Single Market and Economy (CSME).

FOREIGN RELATIONS
Antigua and Barbuda maintains diplomatic relations with the United States, Canada, the United Kingdom, and the People's Republic of China, as well as with many Latin American countries and neighboring Eastern Caribbean states. It is a member of the United Nations, the Commonwealth of Nations, the Organization of American States, the Organization of Eastern Caribbean States, and the Eastern Caribbean's Regional Security System (RSS). Unlike some of its neighbors in the Eastern Caribbean, Antigua and Barbuda has withheld recognition of Taiwan and has established relations with the People's Republic of China.

U.S.-ANTIGUA AND BARBUDA RELATIONS
The United States has maintained friendly relations with Antigua and Barbuda since its independence. The United States has supported the Government of Antigua and Barbuda's effort to expand its economic base and to improve its citizens' standard of living. However, concerns over the lack of adequate regulation of the financial services sector prompted the U.S. Government to issue a financial advisory for Antigua and Barbuda in 1999. The advisory was lifted in 2001, but the U.S. Government continues to monitor the Government of Antigua and Barbuda's regulation of financial services. The United States also has been active in supporting post-hurricane disaster assistance and rehabilitation through the U.S. Agency for International Development's (USAID) Office of Foreign Disaster Assistance and the Peace Corps. U.S. assistance is primarily channeled through multilateral agencies such as the World Bank and the Caribbean Development Bank (CDB), as well as through the USAID office in Bridgetown, Barbados. In addition, Antigua and Barbuda receives counter-narcotics assistance and benefits from U.S. military exercise-related and humanitarian civic assistance construction projects.

Antigua and Barbuda is strategically situated in the Leeward Islands near maritime transport lanes of major importance to the United States. Antigua has long hosted a U.S. military presence. The United States Air Force operates a satellite tracking station under a lease agreement with the Government of Antigua and Barbuda.

Antigua and Barbuda's location close to the U.S. Virgin Islands and Puerto Rico makes it an attractive transshipment point for narcotics traffickers. To address these problems, the United States and Antigua and Barbuda have signed a series of counter-narcotic and counter-crime treaties and agreements, including a maritime law enforcement agreement (1995), subsequently amended to include overflight and order-to-land provisions (1996); a bilateral extradition treaty (1996); and a mutual legal assistance treaty (1996).

In 2005, Antigua and Barbuda had 239,804 stay-over visitors, with nearly 28% of Antigua and Barbuda's visitors coming from the United States. It is estimated that 4,500 Americans reside in the country.

The United States maintains no official presence in Antigua. The Ambassador and Embassy officers are resident in Barbados and travel to Antigua frequently. However, a U.S. consular agent resident in Antigua assists U.S. citizens in Antigua and Barbuda.