Sao Tome and Principe
Type of Government: Republic
Independence: 1975 from Portugal
Head of State: President Fradique De Menezes (since November 3, 2001)
2007/2008 UN Development Index ranking (out of 177 countries): 123
2007 TI Corruption Perception Index (out of 179): 118
Political Development: While independence was achieved in 1975, democratic reforms were not instituted until the late 1980s. Although the first free elections were held in 1991, the political environment has been one of continued instability with frequent changes in leadership and coup attempts in 1995 and 2003. The recent discovery of oil in the Gulf of Guinea promises to have a significant impact on the country’s economy.
Adult HIV Rate: N/A
Life Expectancy: 67.64
GDP: $71.38 million
Inflation: 23.1%
Poverty: 54%
Petroleum: N/A
Leading Export Partner: Portugal (48.8%)
Economic Note: This small, poor island economy has become increasingly dependent on cocoa since independence in 1975. Cocoa production has substantially declined in recent years because of drought and mismanagement, but strengthening prices helped boost export earnings in 2003. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. Over the years, it has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years. Sao Tome is optimistic about the development of petroleum resources in its territorial waters in the oil-rich Gulf of Guinea, which are being jointly developed in a 60-40 split with Nigeria. The first production licenses were sold in 2004, though a dispute over licensing with Nigeria delayed Sao Tome’s receipt of more than $20 million in signing bonuses for almost a year.
