São Tomé and Príncipe
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Country Profile 2005 São Tomé and Príncipe This Country Profile is a reference work, analysing the country’s history, politics, infrastructure and economy. It is revised and updated annually. The Economist Intelligence Unit’s Country Reports analyse current trends and provide a two-year forecast. The full publishing schedule for Country Profiles is now available on our website at http://www.eiu.com/schedule The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. 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BENIN TOGO NIGERIA CAMEROON E Q Gulf of Guinea U A T O R I A L G U I N E A PrPríncipeíncipe SSÃOÃOT TOMÉOMÉ AND PRPRÍNCIPEÍNCIPE SOUTH ATLANTIC OCEAN SSãoãoT Toméomé GABON Príncipe San António Ilha Caroço Gulf of Guinea SÃO TOMÉ AND PRÍNCIPE Main road International boundary Neves International airport SÃO TOMÉ Capital São Tomé Other town Santa Cruz January 2005 Porto Alegre 0km 20 40 Ilha das Rôlas 0 km 100 200 300 © The Economist Intelligence Unit Limited 2005 0 miles 100 200 Comparative economic indicators, 2004 Gross domestic product Gross domestic product per head US$ bn US$ Nigeria 65.0 Gabon 6760.7 Côte d'Ivoire Equatorial Guinea 5294.5 Cameroon Cape Verde Gabon Congo (Brazzaville) Ghana Côte d'Ivoire Senegal Cameroon Dem Rep of Congo Senegal Zambia Benin Equatorial Guinea Chad Mali Zambia Burkina Faso São Tomé & Príncipe Chad Nigeria Congo (Brazzaville) Mauritania Benin Ghana Guinea Guinea Niger Togo Togo Mali Central African Republic Burkina Faso Mauritania Central African Republic Cape Verde Niger Sierra Leone Gambia Liberia Liberia Gambia Guinea-Bissau Guinea-Bissau Sierra Leone São Tomé & Príncipe Dem Rep of Congo 0246810121416 0 500 1,000 1,500 2,000 2,500 Sources: Economist Intelligence Unit estimates; national sources. Sources: Economist Intelligence Unit estimates; national sources. Gross domestic product Consumer prices % change, year on year % change, year on year Chad 38.0 Zambia Equatorial Guinea 21.1 Guinea Liberia Gambia Gambia Nigeria Dem Rep of Congo São Tomé & Príncipe São Tomé & Príncipe Ghana Sierra Leone Sierra Leone Ghana Liberia Cape Verde Dem Rep of Congo Cameroon Mauritania Burkina Faso Equatorial Guinea Zambia Central African Republic Nigeria Guinea-Bissau Congo (Brazzaville) Chad Mali Benin Niger Niger Senegal Mali Mauritania Côte d'Ivoire Benin Congo (Brazzaville) Togo Burkina Faso Guinea-Bissau Gabon Gabon Cape Verde Guinea Cameroon Central African Republic Togo Côte d'Ivoire Senegal -20246810121416 05101520 Sources: Economist Intelligence Unit estimates; national sources. Sources: Economist Intelligence Unit estimates; national sources. Country Profile 2005 www.eiu.com © The Economist Intelligence Unit Limited 2005 São Tomé and Príncipe 1 Contents São Tomé and Príncipe 3 Basic data 4 Politics 4 Political background 5 Recent political developments 7 Political forces 9 Constitution, institutions and administration 10 International relations and defence 11 Resources and infrastructure 11 Population 12 Education 12 Health 13 Natural resources and the environment 13 Transport, communications and the Internet 14 Energy provision 15 The economy 15 Economic structure 16 Economic policy 20 Economic performance 21 Economic sectors 21 Agriculture, forestry and fishing 22 Mining and semi-processing 24 Manufacturing 24 Construction 24 Financial services 25 Other services 25 The external sector 25 Tra d e i n go od s 26 Invisibles and the current account 27 Capital flows and foreign debt 27 Foreign reserves and the exchange rate 29 Regional overview 29 Membership of organisations 33 Appendices 33 Sources of information 34 Reference tables 34 Population 34 Gross domestic product 34 Gross domestic product by sector 34 Gross domestic product by expenditure 35 Money and credit © The Economist Intelligence Unit Limited 2005 www.eiu.com Country Profile 2005 2 São Tomé and Príncipe 35 Inflation and interest rates 35 Agricultural production 36 Foreign trade 36 Main trading partners 36 Balance of payments 37 Net official development assistance 37 External debt 38 Foreign reserves 38 Exchange rate Country Profile 2005 www.eiu.com © The Economist Intelligence Unit Limited 2005 São Tomé and Príncipe 3 São Tomé and Príncipe Basic data Land area 1,001 sq km Population 181,565 (2004; extrapolated from 2001 census) Main town São Tomé (capital) population 54,300 (includes peri-urban population; 2004) Climate Tropical Weather in São Tomé Hottest month, March, 23-31°C; coldest months, July, August, 21-28°C; driest (altitude 5 metres) month, July, 1 mm average rainfall; wettest month, March, 150 mm average rainfall Languages Portuguese (official), Lunga santomé, Ling’lé, Lunga ngolá, Crioulo Measures Metric system Currency Dobra (Db)=100 centimos. Average exchange rate in 2003: Db9,342.6:US$1; exchange rate on December 22nd 2004: Db9,115:US$1 Time GMT Public holidays January 1st; February 3rd (Day of the Heroes of Liberty); February 28th; April 13th; May 1st; May 24th; June 3rd; July 12th (Independence Day); September 6th (Armed Forces Day); September 30th (Day of Agrarian Reform); November 1st; December 21st (Feast Day of Saint Thomas); December 25th © The Economist Intelligence Unit Limited 2005 www.eiu.com Country Profile 2005 4 São Tomé and Príncipe Politics The political scene is, for such a small country, remarkably complex and divided. Since presidential and legislative elections in 2001-02, the country has been ruled by a political cohabitation: the presidency is held by a semi- independent candidate, Fradique de Menezes, and there is a hung parliament, divided almost evenly between the Movimento de Libertação de São Tomé e Príncipe-Partido Social Democrata (MLSTP-PSD), formerly the sole ruling party, and a number of other parties. A unity government has been established, although this is highly unstable, and there are frequent cabinet changes and clashes between the president and the prime minister, as well as a coup attempt in 2003. The country is on the verge of reaping enormous wealth from the oil sector, which will transform this small and poverty-ridden country. Political background From colony to micro-state The first Portuguese colonists settled in São Tomé and Príncipe in 1493. Using African slaves, by the mid-16th century they had turned the islands into the world’s largest producer of sugar. Indentured labour from Angola and Cape Verde replaced slaves in the 19th century, which saw booms in coffee and cocoa production. After the second world war nationalism developed among the local Creole population, the fo rro s , and in 1972 the Movimento de Libertação de São Tomé e Príncipe (MLSTP) was formed under the leadership of Manuel Pinto da Costa. Following the military coup in Portugal in April 1974, the Portuguese government recognised the MLSTP as the sole representative of the Sãotoméan people, and installed a transitional government dominated by the party. An exodus of the Portuguese settler population, as well as of elite Sãotoméans, followed. Independence was proclaimed on July 12th 1975, with Mr Pinto da Costa as president and Miguel Trovoada as prime minister. Transition to single-party Marxist rule was almost immediate and socialist economic policies were introduced. The MLSTP government was riven by factional stri fe and leading fi gures were fo rce d i nto exi le. Transition to economic reform, In 1985, faced with economic deterioration and pressure from popular opinion political pluralism and Western donors, political and economic reforms were introduced by the ruling party (now known as the MLSTP-PSD). A democratic constitution was established and the first multi-party legislative election was held in January 1991. A newly formed opposition party, Partido da Convergência Democrática- Grupo de Reflexão (PCD-GR), won the legislative election and in March Mr Trovoada, standing as an independent, but with the support of the PCD-GR, was elected unopposed as president.