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Sao Tome and Principe Review 2016 Page 1 of 279 Pages Sao Tome and Principe Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Sao Tome and Principe 4 Africa 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 9 Political Risk Index 22 Political Stability 36 Freedom Rankings 51 Human Rights 63 Government Functions 65 Government Structure 66 Principal Government Officials 70 Leader Biography 71 Leader Biography 71 Foreign Relations 72 National Security 75 Defense Forces 76 Chapter 3 78 Economic Overview 78 Economic Overview 79 Nominal GDP and Components 81 Population and GDP Per Capita 83 Real GDP and Inflation 84 Government Spending and Taxation 85 Money Supply, Interest Rates and Unemployment 86 Foreign Trade and the Exchange Rate 87 Data in US Dollars 88 Energy Consumption and Production Standard Units 89 Energy Consumption and Production QUADS 90 World Energy Price Summary 91 CO2 Emissions 92 Agriculture Consumption and Production 93 World Agriculture Pricing Summary 95 Metals Consumption and Production 96 World Metals Pricing Summary 98 Economic Performance Index 99 Chapter 4 111 Investment Overview 111 Foreign Investment Climate 112 Foreign Investment Index 114 Corruption Perceptions Index 127 Competitiveness Ranking 139 Taxation 148 Stock Market 148 Partner Links 148 Chapter 5 150 Social Overview 150 People 151 Human Development Index 153 Life Satisfaction Index 156 Happy Planet Index 168 Status of Women 177 Global Gender Gap Index 179 Culture and Arts 188 Etiquette 189 Travel Information 189 Diseases/Health Data 198 Chapter 6 204 Environmental Overview 204 Environmental Issues 205 Environmental Policy 205 Greenhouse Gas Ranking 207 Global Environmental Snapshot 218 Global Environmental Concepts 229 International Environmental Agreements and Associations 243 Appendices 267 Bibliography 268 Sao Tome and Principe Chapter 1 Country Overview Sao Tome and Principe Review 2016 Page 1 of 279 pages Sao Tome and Principe Country Overview SAO TOME AND PRINCIPE Sao Tome and Principe is an island country in Western Africa. With a population of around 212,600, it is one of the smallest countries in Africa. From the late 1400s the Portuguese began settling on the islands and establishing sugar plantations. With a decline in sugar production, coffee and cocoa became the islands’ economic mainstays in the 19th century. A movement for independence began in the late 1950s, and following a 1974 change of government in Portugal, Sao Tome and Principe became independent in 1975. Democratic reforms were not instituted until the late 1980s, and the 1990 constitution created a multi-party democracy. With cocoa as its main export product, the country’s economy is extremely vulnerable to external shocks and is dependent on foreign financial assistance. Oil and natural gas reserves were discovered offshore from Sao Tome and Principe in the early 1990s, and the country hopes to reduce dependence on donors and cocoa exports by exploiting offshore oil. Drilling is under way and commercial production is expected to begin within a few years. Sao Tome and Principe Review 2016 Page 2 of 279 pages Sao Tome and Principe Key Data Key Data Region: Africa Population: 194006 Climate: Tropical; hot, humid; one rainy season (October to May). Languages: Portuguese Currency: 1 dobra (Db$) = 100 centimos Holiday: Independence Day is 12 July (1975), National Heroes' Day is 4 February Area Total: 960 Area Land: 960 Coast Line: 209 Sao Tome and Principe Review 2016 Page 3 of 279 pages Sao Tome and Principe Sao Tome and Principe Country Map Sao Tome and Principe Review 2016 Page 4 of 279 pages Sao Tome and Principe Africa Regional Map Sao Tome and Principe Review 2016 Page 5 of 279 pages Sao Tome and Principe Sao Tome and Principe Review 2016 Page 6 of 279 pages Sao Tome and Principe Chapter 2 Political Overview Sao Tome and Principe Review 2016 Page 7 of 279 pages Sao Tome and Principe History Portuguese navigators between 1469 and 1472, settling São Tomé in 1493 when Avaro Caminha received the land as a grant from the Portuguese crown, first discovered the islands. Principe was settled in 1500 under a similar arrangement. By the mid-1500s, with the help of slave labor, the Portuguese settlers had turned the islands into Africa's foremost exporter of sugar. São Tomé and Principe were taken over and administered by the Portuguese crown in 1522 and 1573, respectively. The 16th century was a vibrant but terrible time for cultural formation in São Tomé and Principe. The tragedy of slavery brought about a caste system in which many of African descent suffered indiscriminately. Religion also became a weapon. Portuguese settlers brought with them Catholicism. Those who had learned to practice Protestantism and other religions faced persecution even within their own caste. Most notably, the Portuguese settlers mirrored policies in Lisbon by bringing about charges of "covert Judaism." While there was no history of Jewish settlement on the islands, accusations of secret Judaism were used to subvert political opposition. Correlations between economic decline, charges of Judaism and episodes of violence suggest that Machiavellian politics and economics were at the core of the much-touted religious battles on São Tomé in the 16th and early 17th centuries. The result was the rise of Catholic homogeneity that is still prevalent today. Sugar cultivation declined over the next 100 years, and by the mid-1600s, São Tomé was little more than a port of call for bunkering ships. In the early 1800s, two new cash crops, coffee and cocoa, were introduced. The rich volcanic soils proved well suited to the new cash crop industry, and soon extensive plantations (rocas), owned by Portuguese companies or absentee landlords, occupied almost all of the good farmland. By 1908, São Tomé had become the world's largest producer of cocoa, still the country's most important crop. The "rocas" system, which gave the plantation managers a high degree of authority, led to abuses against the African farm workers. Although Portugal officially abolished slavery in 1876, the practice of forced paid labor continued. In the early 1900s, an internationally publicized controversy arose over charges that Angolan contract workers were being subjected to forced labor Sao Tome and Principe Review 2016 Page 8 of 279 pages Sao Tome and Principe and unsatisfactory working conditions. Sporadic labor unrest and dissatisfaction continued well into the 20th century, culminating in an outbreak of riots in 1953 in which several hundred African laborers were killed in a clash with their Portuguese rulers. This "Batepa Massacre" remains a major event in the colonial history of the islands, and the government officially observes its anniversary. By the late 1950s, when other emerging nations across the African continent were demanding independence, a small group of São Toméans had formed the Movement for the Liberation of São Tomé and Principe (MLSTP), which eventually established its base in nearby Gabon. Picking up momentum in the 1960s, events moved quickly after the overthrow of the Caetano dictatorship in Portugal in April 1974. The new Portuguese regime was committed to the dissolution of its overseas colonies; in November 1974, their representatives met with the MLSTP in Algiers and worked out an agreement for the transfer of sovereignty. After a period of transitional government, São Tomé and Principe achieved independence on July 12, 1975, choosing as its first president the MLSTP Secretary-General Manuel Pinto da Costa. The rapidity with which the Portuguese left the country took the new leadership by surprise, leaving them ill prepared. The Portuguese has established a significant infrastructure. Unfortunately, São Tomé and Principe lacked the economic and human resources to maintain it and the infrastructure rapidly declined. At independence, President Manuel Pinto da Costa set up a socialist regime with heavy state control. This decision left the country dependent on the export of cocoa and heavily in need of food, agricultural and manufacturing imports. When cocoa prices collapsed in the mid- 1980s, the economy was severely damaged. However, with the state revenues garnered, the leadership set up admirable systems of health and education that continue to serve the country today. Note on History: In certain entries, open source content from the State Department Background Notes and Country Guides have been used. A full listing of sources is available in the Bibliography. Political Conditions Sao Tome and Principe Review 2016 Page 9 of 279 pages Sao Tome and Principe The Movement for the Liberation of São Tomé and Principe (MLSTP) is one of the main political parties, which developed out of the independence movement which swept across Africa in the 1990s. Although the party established its base in nearby Gabon, it picked up momentum in the 1960s, reaching some degree of ascendancy after the overthrow of the Caetano dictatorship in Portugal in April 1974. The new Portuguese regime was committed to the dissolution of its overseas colonies; in November 1974, their representatives met with the MLSTP in Algiers and worked out an agreement for the transfer of sovereignty. After a period of transitional government, São Tomé and Principe achieved independence on July 12, 1975, choosing as its first president the MLSTP Secretary-General Manuel Pinto da Costa. The rapidity with which the Portuguese left the country took the new leadership by surprise, leaving them ill prepared to deal with the aftermath. The Portuguese had established a significant infrastructure and unfortunately, São Tomé and Principe's newly-independent leadership lacked the economic and human resources required for its maintenance. Consequently, the developed infrastructure rapidly declined. At independence, President Manuel Pinto da Costa set up a socialist regime with heavy state control. This decision left the country dependent on the export of cocoa and heavily in need of food, agricultural and manufacturing imports. When cocoa prices collapsed in the mid- 1980s, the economy was severely damaged.
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