Angola

Background:

Angola has long been a country in conflict: guerilla warfare against the Portuguese colonial regime from 1961 to 1975, followed shortly after independence by 27 years of civil war between the MPLA (Popular Movement for the Liberation of Angola) government and UNITA (National Union for the Total Independence of Angola). A lasting peace was finally established with the signing of the ceasefire agreement in April 2002.

The most daunting task facing the country is national reconciliation. The government must reintegrate the approximately 100,000 UNITA soldiers and their families and other refugees. Added to this are the challenges of rebuilding the infrastructure destroyed in the war, implementing a democratic society, reducing widespread poverty and promoting stable economic growth. Angola has the potential to become one of the richest countries in Africa because of its large gold, diamond, oil and natural gas deposits, but industry is underdeveloped and the country imports almost everything it needs, primarily from South Africa and Portugal. Although real GDP growth for 2004 is forecast at 13.7%, the inflation rate is expected to hit 90%.

Angola is sub-Saharan Africa's second-largest producer of oil. Oil profits account for 60% of GDP and 90% of government revenues. Despite the wealth generated by the country's oil, there has been little social development as a result of poor management of public funds, needs connected with the funding of the civil war, and above all, corruption. According to observers, nearly a quarter of government revenues have disappeared from public accounts. The Angolan government today faces international pressure to implement the reforms necessary for the country's socio-economic development.

Angola's humanitarian record is an area of concern and Angola is one of the world's poorest countries. Close to half of its children suffer from malnutrition and life expectancy at birth is only 47 years. HIV/AIDS affects 5.5% of adults aged 15 to 49.