U.S. Department of State Background Notes: Cote d'Ivoire, April 1995 Bureau of Public Affairs April 1995 Official Name: Republic of Cote d'Ivoire PROFILE Geography Area: 124,500 square miles (322,500 sq. kms.); slightly larger than New Mexico. Cities: Capital--Yamoussoukro (official). Other cities--Abidjan, Bouake, Daloa, Gagnoa, Korhogo, Man. Terrain: Mostly flat. Climate: Tropical. People Nationality: Noun and adjective--Ivorian(s). Population (est.): 13.2 million. Annual growth rate: 3.8% (with immigration). Ethnic groups: More than 60. Religions: Indigenous 25%, Muslim 39%, Christian 20%. Language: French (official) local dialects. Education: Years compulsory--to age 16. Attendance--76%. Literacy-- 60%. Health: Infant mortality rate--95/1,000. Life expectancy--52 yrs. Government Type: Republic. Independence: December 7, 1960. Branches: Executive--president (chief of state and head of government). Legislative--unicameral National Assembly. Judicial-- Supreme Court (4 Chambers: constitutional, judicial, administrative, auditing). Administrative subdivisions: 50 departments; 135 communes. Political Parties: Parti Democratique de la Cote d'Ivoire (PDCI) ruling party; Front Populaire Ivoirien (FPI); Parti Ivoirien des Travailleurs (PIT); Rallies des Republicaines (RDR) numerous other smaller political parties operate in Cote d'Ivoire. Suffrage: Universal at 21. Economy GDP (1994): $7 billion. Annual real growth rate (1994): 1%. Per capita income: $475. Natural resources: Petroleum. Agriculture (33% of GDP): Products--cocoa, coffee, timber, rubber, corn, rice, tropical foods. Industry (20% of GDP): Types--food processing, textiles. Trade (1993): Exports--$2.6 billion: cocoa, coffee, timber, rubber, cotton, palm oil, pineapples, bananas. Major markets--France, Germany, Netherlands, U.S. Imports--$1.6 billion: consumer goods, basic food stuffs (rice, wheat), capital goods. Major suppliers--Francy live in the central region around Bouake. The Bete, in the Krou division, and the Senoufo in the north are the second and third largest groups, with roughly 18% and 15% of the national population, respectively. Most of the principal divisions have centers in neighboring countries. Of the more than 5 million non-Ivorian Africans living in Cote d'Ivoire, one-third to one-half are from Burkina Faso; the rest are from Ghana, Guinea, Mali, Nigeria, Benin, Senegal, Liberia, and Mauritania. A non- African expatriate community includes roughly 18,000 French and at least 100,000 Lebanese. The number of school-aged children attending classes increased from 22% in 1960 to 55% in 1988. HISTORY The early history of Cote d'Ivoire is virtually unknown, although it is thought that a neolithic culture existed there. France made its initial contact with Cote d'Ivoire in 1637, when missionaries landed at Assinie near the Gold Coast (now Ghana) border. Early contacts were limited to a few missionaries because of the inhospitable coastline and settlers' fear of the inhabitants. In the 18th century, the country was invaded by two related ethnic groups--the Agnis, who occupied the southeast, and the Baoules, who settled in the central section. In 1843-44, Admiral Bouet-Williaumez signed treaties with the kings of the Grand Bassam and Assinie regions, placing their territories under a French protectorate. French explorers, missionaries, trading companies, and soldiers gradually extended the area under French control inland from the lagoon region. However, pacification was not accomplished until 1915. French Period Cote d'Ivoire officially became a French colony in 1893. Captain Binger, who had explored the Gold Coast frontier, was named the first governor. He negotiated boundary treaties with Liberia and the United Kingdom (for the Gold Coast) and later started the campaign against Almany Samory, a Malinke chief, who fought against the French until 1898. From 1904 to 1958, Cote d'Ivoire was a constituent unit of the Federation of French West Africa. It was a colony and an overseas territory under the Third Republic. Until the period following World War II, governmental affairs in French West Africa were administered from Paris. France's policy in West Africa was reflected mainly in its philosophy of "association," meaning that all Africans in Cote d'Ivoire were officially French "subjects" without rights to representation in Africa or France. During World War II, the Vichy regime remained in control until 1943, when members of Gen. Charles De Gaulle's provisional government assumed control of all French West Africa. The Brazzaville conference in 1944, the first Constituent Assembly of the Fourth Republic in 1946, and France's gratitude for African loyalty during World War II, led to far-reaching governmental reforms in 1946. French citizenship was granted to all African "subjects," the right to organize politically was recognized, and various forms of forced labor were abolished. A turning point in relations with France was reached with the 1956 Overseas Reform Act (Loi Cadre), which transferred a number of powers from Paris to elected territorial governments in French West Africa and also removed remaining voting inequalities. Independence In December 1958, Cote d'Ivoire became an autonomous republic within the French community as a result of a referendum that brought community status to all members of the old Federation of French West Africa except Guinea, which had voted against association. Cote d'Ivoire became independent on August 7, 1960, and permitted its community membership to lapse. Cote d'Ivoire's contemporary political history is closely associated with the career of Felix Houphouet-Boigny, President of the republic and leader of the Parti Democratique de la Cote d'Ivoire (PDCI). He was one of the founders of the Rassemblement Democratique Africain (RDA), the leading pre-independence inter-territorial political party in French West African territories (except Mauritania). Houphouet-Boigny first came to political prominence in 1944 as founder of the Syndicat Agricole Africain, an organization that won improved conditions for African farmers and formed a nucleus for the PDCI. After World War II, he was elected by a narrow margin to the first Constituent Assembly. Representing Cote d'Ivoire in the French National Assembly from 1946 to 1959, he devoted much of his effort to inter-territorial political organization and further amelioration of labor conditions. After his 13-year service in the French National Assembly, including almost three years as a minister in the French government, he became Cote d'Ivoire's first Prime Minister in April 1959, and the following year was elected its first President. In May 1959, Houphouet-Boigny reinforced his position as a dominant figure in West Africa by leading Cote d'Ivoire, Niger, Upper Volta (Burkina), and Dahomey (Benin) into the Council of the Entente, a regional organization promoting economic development. He maintained that the only true road to African solidarity is through step- by-step economic and political cooperation, recognizing the principle of nonintervention in the internal affairs of other African states. GOVERNMENT Cote d'Ivoire's 1959 constitution provides for a strong presidency within the framework of a separation of powers. The executive is personified in the president, elected for a five-year term. The president is commander in chief of the armed forces, may negotiate and ratify certain treaties, and may submit a bill to a national referendum or to the National Assembly. According to the constitution, the President of the National Assembly assumes the presidency in the event of a vacancy, and he completes the remainder of the deceased president's term. The cabinet is selected by and is responsible to the president. The unicameral National Assembly is composed of 175 members elected by direct universal suffrage for a 5-year term concurrently with the president. It passes on legislation introduced by its own members or by the president. The judicial system culminates in the Supreme Court. The High Court of Justice is competent to try government officials for major offenses. For administrative purposes, Cote d'Ivoire is divided into 50 departments, each headed by a prefect appointed by the central government. There are 135 communes, each headed by an elected mayor. National Security The small Ivorian armed forces include an army, navy, air force, and gendarmerie. The army, the largest of the organizations, has four light infantry battalions, located in Abidjan, Bouake, Daloa, and Korhogo. Each battalion falls within one of the country's four military regions and is headquartered at one of these four principal cities. Specialized army units include an armored battalion, artillery battalion, engineer battalion, air-defense, and a special unit composed of a para- commando company, and a rapid intervention deployment force. The army staff serves as the joint staff at Ivorian Armed Forces Headquarters at Abidjan, with a major general acting both as the commander of the army and chief of staff. Command of the various military units stationed throughout Cote d'Ivoire is exercised through the army military region commanders (all colonels). The gendarmerie, the second largest military service, is a national police force responsible for territorial security, especially in rural areas. It is composed of a headquarters in Abidjan, commanded by a major general, and four gendarmerie legions that correspond to the four military regions. The Ivorian air force and Air Ivoire, the national airline, function within a single organization. The military/civil inventory consists of five alpha jets, 12 transport/utility aircraft, and two helicopters. The Ivorian navy, the smallest of the armed services, is equipped with four patrol craft and one small landing ship. The Ivorian Navy also owns about 20 small craft that are used for traffic on the lagoon, immigration, and narcotics control. The navy's primary mission is patrolling the 340-mile shoreline. The total strength of the uniformed services (which includes the military forces and the gendarmerie but not the police) is 16,000. A mutual defense accord signed with France in 1961 provides for stationing French forces in Cote d'Ivoire, and a French Marine Infantry Battalion currently is based near Abidjan. Principal Government Officials President--Henri Konan Bedie Prime Minister and Minister of Economy, Finance and Plan--Daniel Kablan Duncan Ambassador to the United States--Moise Koumoue Koffi Ambassador to the UN--Gervais Jean-Marie Kacou Cote d'Ivoire maintains an embassy at 2424 Massachusetts Avenue, NW, Washington, D.C. 20008 (202-483-2400). POLITICAL CONDITIONS Cote d'Ivoire is a stable, multiparty democracy which achieved independence from France in 1960. President Felix Houphouet-Boigny, a moderate leader of considerable stature in Africa, assumed power at independence and ruled unopposed until 1990. Until that time, Houphouet's Democratic Party of Cote d'Ivoire (PDCI) was the sole permitted party in the country. In 1990, Houphouet liberalized the political system and called for multiparty elections. Several dozen parties formed following the announcement, including the Ivorian Popular Front (FPI), the largest of the opposition parties. The opposition won 10 seats in the National Assembly out of a possible 175, and Houphouet was reelected. Despite some accusations of irregularities, the final results were accepted by all participating political parties. In 1993, Houphouet died and was replaced by his constitutional successor, National Assembly President Henri Konan Bedie. The constitution calls for Bedie to serve out the rest of Houphouet's term, which ends in October 1995. Preparations are currently underway for presidential, legislative, and municipal elections in late 1995. The ruling party, the PDCI, is a centrist party without strong ideological identification. The major opposition party, the FPI, is a moderate "socialist" party more concerned with political issues than with radical economic change. The Ivorian Workers' Party, which has one deputy in the National Assembly, is more left-leaning. Few of the 80 or so other Ivorian parties have made much of an impact on the Ivorian political scene. ECONOMY Agriculture has provided the impetus for Cote d'Ivoire's development into one of Africa's most prosperous economies, with annual real growth of nearly 7% from 1960 to 1980. Cocoa, coffee, and timber woods were key exports during this era and continued to account for 51% of export earnings in 1993, despite impressive diversification efforts. To reduce dependence on this limited range of export goods, the government has encouraged, with minimal success until recently, the production of bananas, palm oil, cotton, pineapples, coconuts, rubber, and sugar. Yields of cotton, sugar, and rubber have increased significantly in recent years. In 1993, agriculture accounted for approximately 33% of Cote d'Ivoire's GDP. Agriculture also continues to be a critical source of employment, accounting for two out of every three jobs. A decade of impressive economic growth for Cote d'Ivoire came to a halt in the early 1980s. From 1981, the economy contracted in real terms. Over-ambitious state investment in the 1970s, at a time of high coffee and cocoa prices, was financed largely by external borrowing. When world prices for coffee and cocoa plummeted in the early 1980s, the government, hopeful of a recovery, continued its practice of external borrowing. A continued decline in commodity prices, high external debt obligations incurred during the boom years, and a two- year drought contributed to Cote d'Ivoire's deep recession and concomitant financial crisis during the early 1980s. Conditions for what proved to be a transitory recovery were laid by a stringent austerity program and structural adjustments in association with the International Monetary Fund (IMF) and the World Bank. Record export crops in 1985 spurred a return to real growth of about 5%, followed by a 2%-3% increase in 1986. The collapse of coffee and cocoa price in the latter half of 1986, however, plunged the economy into a recession from which it has only recently begun to emerge. In 1989, Cote d'Ivoire embarked upon a new IMF adjustment program and a new World Bank structural reform program to be supported by substantial amounts of bilateral assistance and official and commercial bank rescheduling. The IMF and the World Bank, however, suspended disbursements under these programs primarily because of concerns about the country's overvalued currency. IMF and World Bank agreements required the restoration of "competitiveness" in the Ivorian export sector. These conditions have not been met, primarily because of currency overvaluation. Economically, 1994 has been a year of unprecedented change for Cote d'Ivoire. In January 1994, the CFA franc was devalued by 50%, after 46 years of fixed parity with the French franc. The devaluation brought an end to a period of drift in the country's economic and political management while opening avenues of opportunity blocked by the overvalued exchange rate. With the currency devalued, cooperation resumed with the major multilateral lending institutions, which in turn, opened the way for substantial new concessional credits. Official creditors then agreed at the Paris Club to a substantial rescheduling and reduction of the country's crushing debt burden. Private interests, meanwhile, contributed by reversing the capital outflow, which had been driven by the inevitability of the CFA franc's devaluation. Fortunately, over the same period, the prices for key Ivorian commodities (cocoa, coffee, and cotton) started rising to levels that had not been seen for years. As this was occurring, an American firm announced oil and gas discoveries that may make Cote d'Ivoire self- sufficient in natural gas and electrical power. SIR, the Ivorian oil refinery which moved in 1985 from being a loss center to generating some profits, also stands to benefit significantly from the discovery. In the mining sector, a U.S. firm increased its output of gold significantly in 1994. In the short term, agriculture and agro-industry stand to gain the most from the new conditions. The traditional cash crops, which are mostly exported, are not only rebounding on world markets but have doubled in value in local currency terms as a result of the devaluation. Domestic demand for local fruit, vegetables, and meat should strengthen significantly. With urban wages rising, on average by only 10% in nominal terms after the devaluation, Ivorian consumers can be expected to turn from expensive imports toward local alternatives. The devaluation has also improved the prospects for light manufacturing, especially in textiles. Over the long term, the more competitive macroeconomic environment is likely to lead to new investment in sectors that were previously overlooked or where production did not employ modern technologies. Good examples would be rice production and food processing. However, as long as the government maintains subsidies on imported rice for urban consumers, there will be significant disincentives to domestic rice and other food crop production. The new competitiveness and concomitant in the economy (lower real cost of doing business) should also add to Abidjan's attractiveness as a regional center for foreign businesses operating in the area; Abidjan is the home to a number of foreign firms; and there is evidence of an increased interest on the part of multinational corporations in relocating their regional management operations from Europe to Abidjan. Regulatory reform could also lead to growth. The arrival of new American investment in gold mining and petroleum extraction could be followed by more. The new government has made reform of the mining and hydrocarbons codes a high priority, and the new activity underway has helped pioneer a new way of thinking about the future development of underground resources. Available evidence points to significant deposits of oil, gas, gold, diamonds, nickel, and other minerals. Given the right regulatory framework, rapid growth could follow. Rapid economic development since 1950 was assisted by the opening of the Vridi Canal, which made Abidjan a deepwater port, and the Abidjan-Ouagadougou Railroad, which traverses the center of the country. Railroad operations have not been successful. The national rail company, SICF, has suffered from continued losses and is targeted for privatization. A system of highways, most of which are paved, now connect the major urban centers, many of which are also served by the national airline, Air Ivoire. Air Afrique and other African carriers provide regular intracontinental service. Intercontinental air service is available daily between Abidjan and Paris; less frequent flights connect Abidjan with Rome, Geneva, Zurich, Brussels, London, Madrid, and New York. Tied to satellite communications, dialing direct to Western Europe and North America provides the business traveler and tourist with instant communications. Cote d'Ivoire has a well developed transportation and communication infrastructure. The government welcomes foreign private investment, and has embarked on an ambitious program of privatization in 1990, promising to sell off two-thirds of the 140 public companies. The government has already sold its majority shares in the electricity, water, and other select parastatals. Almost immediately after the devaluation, the government privatized its shares in SAPH, the rubber parastatal; this trend is expected to continue, particularly in the export sectors. There are no formal investment treaties in force in Cote d'Ivoire. The U.S. has neither investment nor tax treaties, but does have an OPIC agreement in force. When Cote d'Ivoire became an overseas territory under the Fourth French Republic, it benefited from the French Overseas Development Fund and the Investment Fund of Economic and Social Development. The country has continued to benefit from considerable French assistance and also receives important aid from the European Community, the World Bank, and other donors. Public organizations and private firms have found Abidjan well situated as a headquarters for their regional activities. Among those located in the city are the West African office of the World Bank, the African Development Bank, the multinational Air Afrique, the African Regional Satellite Organization (RASCOM), a satellite office of the Central Bank of the West African Monetary Union, and the secretariat of the Council of the Entente. Although the French dominate, the spectrum of the Organization for Economic Cooperation and Development (OECD) countries are represented, as are a number of developing countries. About 50 U.S. firms operate in Abidjan. Aside from the manufacturers and an oil company are a bank, six accounting firms, and many local and regional sales representatives. Cote d'Ivoire's currency is the CFA franc, issued by the Central Bank of the West African Monetary Union. The CFA franc is fully convertible with the French franc, at a fixed parity of 100 CFAF=1FF. International payments are readily made. With the devaluation of the CFA franc and the resumption of cooperation with major multilateral lending institutions, 1994 may well be noted among the most eventful economic periods in Cote d'Ivoire's history. FOREIGN RELATIONS Cote d'Ivoire's foreign policy has been generally favorable toward the West. The country became a member of the United Nations in 1960 and participates in most of its specialized agencies. It maintains a wide variety of diplomatic contacts, and, in 1986, announced the re- establishment of diplomatic relations with Israel. Cote d'Ivoire has also sought change in South Africa through dialogue, and its newly named ambassador was one of the first to be accredited to post-apartheid South Africa. The Ivorian Government has traditionally played an important role in Africa. President Houphouet-Boigny was active in the mediation of regional disputes, most notably in Liberia and Angola, and had considerable stature throughout the continent. President Bedie has only just begun to set the post-Houphouet foreign policy agenda. Bedie's first official travel took him to Tunis in June 1994 for the Organization of African Unity (OAU) summit, where he was named First Vice President. Cote d'Ivoire was also made a member of the newly created OAU conflict resolution mechanism. Cote d'Ivoire continues to maintain extremely close relations with France. President Houphouet, who was a minister in the French Government prior to independence, insisted that the connection remain unsevered. Concrete examples of Franco-Ivorian cooperation are numerous: French is Cote d'Ivoire's official language, Ivorian security is enhanced by a brigade of French marines stationed in Abidjan, some 18,000 French expatriates continue to make their home in Cote d'Ivoire, and the country's currency, the CFA franc is tied to the French franc. In July 1994, President Bedie traveled to France for an official state visit, during which he was accorded an especially warm welcome by President Mitterrand and the French Government. French Prime Minister Balladur followed up with a visit to Abidjan shortly thereafter. Cote d'Ivoire belongs to the UN and most of its specialized agencies, the Organization of African Unity (OAU), West African Economic and Monetary Union (UEMOA), African and Mauritian Common Organization (OCAM), Council of Entente Communaute Financiere Africaine (CFA), Economic Community of West African States (ECOWAS), Nonaggression and Defense Agreement(ANAD), INTELSAT, Nonaligned Movement, African Regional Satellite Organization (RASCOM), InterAfrican Coffee Organizations (IACO), International Cocoa Organization (ICCO), Alliance of Cocoa Producers, African, Caribbean and Pacific Countries (ACP), and Association of Coffee Producing Countries (ACPC). Cote d'Ivoire also belongs to the European Investment Bank (EIB) and the African Development Bank; it is an associate member of European Union. U.S.-IVORIAN RELATIONS U.S.-Ivorian relations are friendly and close. The United States is sympathetic to Cote d'Ivoire's program of rapid, orderly economic development as well as its moderate stance on international issues. Bilateral U.S. Agency for International Development (USAID) funding, with the exception of self-help funds, has been phased out and replaced by regional AID projects, such as training, energy initiatives, child survival and vaccination programs, and housing loan guarantees. The United States and Cote d'Ivoire maintain an active cultural exchange program, through which prominent Ivorian Government officials, media representatives, educators, and scholars visit the United States to become better acquainted with the American people and to exchange ideas and views with their American colleagues. This cooperative effort is furthered through frequent visits to Cote d'Ivoire by representatives of U.S. business and educational institutions, and by visits of Fulbright-Hays scholars and specialists in various fields. A modest security assistance program provides professional training for Ivorian military officers in the United States. Principal U.S. Embassy Officials Ambassador--Hume Horan Deputy Chief of Mission--Charles O. Cecil Administrative Counselor--Kenneth Scott Economic Counselor--Kenneth Kolb Political Counselor--Michele J. Sison Defense Attache--Col. Kenneth Hibl Commercial Attache--Margaret Hanson-Muse Consular Affairs Officer--Andrew Passen Director, AID Regional Development--Willard Pearson Public Affairs Officer--Thomas Hart The U.S. embassy is located at 5 Rue Jesse Owens, Abidjan, Cote d'Ivoire (tel. 21-09-79; telex, 23660; telefax, 22-23-59); mailing address is 01 B.P. 1712, Abidjan 01, Cote d'Ivoire. 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A broad range of foreign policy information also is carried on the BBS, operated by the U.S. Government Printing Office (GPO). By modem, dial (202) 512-1387. For general BBS information, call (202) 512-1530. National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the internet (gopher.stat-usa.gov and on CD-ROM. Call the Help-Line at (202) 482-1986 for more information. ========================================== Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC -- April 1995 -- Managing Editor: Peter A. Knecht -- Editor: Leila C. Wombacher Department of State Publication 8119 -- Background Notes Series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated. 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