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Angola is slowly rebuilding its country after the end of a 27-year civil war in 2002. Fighting between the Popular Movement for the Liberation of Angola (MPLA), led by Jose Eduardo DOS SANTOS, and the National Union for the Total Independence of Angola (UNITA), led by Jonas SAVIMBI, followed independence from Portugal in 1975. Peace seemed imminent in 1992 when Angola held national elections, but UNITA renewed fighting after being beaten by the MPLA at the polls. Up to 1.5 million lives may have been lost - and 4 million people displaced - in the quarter century of fighting. SAVIMBI's death in 2002 ended UNITA's insurgency and strengthened the MPLA's hold on power. DOS SANTOS has pledged to hold legislative elections in 2006.
GOVERNMENT
chief of state: President Jose Eduardo DOS SANTOS (since 21 September 1979); note - the president is both chief of state and head of government
head of government: President Jose Eduardo DOS SANTOS (since 21 September 1979); note - the president is both chief of state and head of government; Fernando de Piedade Dias DOS SANTOS was appointed Prime Minister on 6 December 2002, but this is not a position of real power
cabinet: Council of Ministers appointed by the president
elections: president elected by universal ballot for a five-year term; President DOS SANTOS originally elected (in 1979) without opposition under a one-party system and stood for reelection in Angola's first multiparty elections 29-30 September 1992 (next to be held September 2006)
election results: DOS SANTOS 49.6%, Jonas SAVIMBI 40.1%, making a run-off election necessary; the run-off was not held and SAVIMBI's National Union for the Total Independence of Angola (UNITA) repudiated the results of the first election; the civil war resumed
ECONOMY
Angola's high growth rate is driven by its oil sector, but record oil prices and rising petroleum production have occurred without improved performance in other parts of the economy. Oil production and its supporting activities, contribute about 45% to GDP and more than half of exports, and much of the country's infrastructure is still damaged or undeveloped from the 22 year-long civil war. Remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace has been established after the death of rebel leader Jonas SAVIMBI in February 2002. Subsistence agriculture provides the main livelihood for 85% of the population, but much of the country's food must still be imported. In 2005, the government started using a $2 billion line of credit from China to rebuild Angola's public infrastructure, and several large-scale projects are scheduled for completion by 2006. The central bank in 2003 implemented an exchange rate stabilization program using foreign exchange reserves to buy kwanzas out of circulation, a policy that was more sustainable in 2005 because of strong oil export earnings, and has significantly reduced inflation. Consumer inflation declined from 325% in 2000 to about 18% in 2005, but the stabilization policy places pressure on international net liquidity. To fully take advantage of its rich national resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. The government has made sufficient progress on reforms recommended by the IMF, such as promoting greater transparency in government spending, and continues to be without a formal monitoring agreement with the institution. Increased oil production supported 12% growth in 2004 and 14% growth in 2005.
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