Cote d'Ivoire

Cote d'Ivoire has more than 60 ethnic groups, usually classified into five principal divisions: Akan (east and center, including Lagoon peoples of the southeast), Krou (southwest), Southern Mande (west), Northern Mande (northwest), Senoufo/Lobi (north center and northeast). The Baoules, in the Akan division, probably comprise the largest-single subgroup with 15%-20% of the population. They are based in the central region around Bouake and Yamoussoukro. The Betes in the Krou division, the Senoufos in the north, and the Malinkes in the northwest and the cities are the next largest groups, with 10%-15% each of the national population. Most of the principal divisions have a significant presence in neighboring countries.

Of the more than 5 million non-Ivoirian 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. The non-African expatriate community includes roughly 20,000 French and possibly 100,000 Lebanese. The number of elementary school-aged children attending classes increased from 22% in 1960 to 67% in 1995.

The early history of Cote d'Ivoire is virtually unknown, although it is thought that a Neolithic culture existed. France made its initial contact with Cote d'Ivoire in 1637, when missionaries landed at Assignee 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 Akan groups--the Agnes, who occupied the southeast, and the Bales, who settled in the central section. In 1843-44, Adm. 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) until his death on December 7, 1993. 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 3 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 road to African solidarity was through step-by-step economic and political cooperation, recognizing the principle of nonintervention in the internal affairs of other African states.

The Ivoirian economy is largely market-based and depends heavily on the agricultural sector. Between 60%-70 % of the Ivoirian people are engaged in some form of agricultural activity. The economy performed poorly in the 1980s and early 1990s, and high population growth coupled with economic decline resulted in a steady fall in living standards. Gross national product per capita was $727 in 1996 but has fallen to below $660 by 2001. (It was substantially higher two decades ago.) A majority of the population remains dependent on smallholder cash crop production. Principal exports are cocoa, coffee, cotton, pineapples, tuna, and tropical woods. Principal U.S. exports are rice and wheat, plastic materials and resins, Kraft paper, agricultural chemicals, telecommunications, and oil and gas equipment. Principal U.S. imports are cocoa and cocoa products, petroleum, rubber, and coffee.

Foreign Direct Investment Statistics
Direct foreign investment (DFI) plays a key role in the Ivoirian economy, accounting for between 40% and 45% of total capital in Ivoirian firms. France is overwhelmingly the most important foreign investor. In recent years, French investment has accounted for about one-quarter of the total capital in Ivoirian enterprises, and between 55% and 60% of the total stock of foreign investment capital.

Infrastructure
By developing country standards, Cote d'Ivoire has an outstanding infrastructure. There is an excellent network of more than 8,000 miles of paved roads; good telecommunications services, including a public data communications network; cellular phones and Internet access. There are two active ports. Abidjan is the most modern in West Africa and the largest between Casablanca and Cape Town on the West African littoral; rail links from the port north into Burkina Faso which are being upgraded; regular air service within the region and to and from Europe; and modern real estate developments for commercial, industrial, retail, and residential use. Cote d'Ivoire's location and easy, reliable connection to neighboring countries has made it a preferred platform from which to conduct West African operations. Abidjan remains one of the most modern and livable cities in the region. Its school system is good by regional standards and includes an excellent international school based on U.S. curriculum and several excellent French-based schools.

Recent political and economic problems have delayed Cote d'Ivoire's planned public investment program. The government's public investment plan accords priority to investment in human capital, but it also will provide for significant spending on economic infrastructure needed to sustain growth. Continued infrastructure development has been brought into question because of private sector uncertainty. In the new environment of government disengagement from productive activities and in the wake of recent privatization, anticipated investments in the petroleum, electricity, water, and telecommunications sectors, and in part in the transportation sector, will be financed without any direct government intervention. A return to political and economic stability is critical if Cote d'Ivoire is to realize its potential in the region.

Major Trends and Outlooks
Since the colonial period, Cote d'Ivoire's economy has been based on the production and export of tropical products. Agriculture, forestry, and fisheries account for more than one-third of GDP and two-thirds of exports. Cote d'Ivoire produces 40% of the world's cocoa crop and is a major exporter of bananas, coffee, cotton, palm oil, pineapples, rubber, tropical wood products, and tuna. The 1994 devaluation of the CFA franc and accompanying structural adjustment measures increased the international competitiveness of the agricultural, light industrial, and service sectors. However, reliance on raw cocoa and coffee exports, which account for 40% of total exports, exposes the economy to the ups and downs of international price swings. To reduce the economic exposure to price variability, the government encourages export diversification and intermediate processing of cocoa beans.

The 1994 devaluation of the CFA franc helped return Cote d'Ivoire to rapid economic growth. Increased aid flows, rigorous macroeconomic policies, and high international commodity prices, along with devaluation, yielded 6%-7% annual GDP growth rates from 1994-98. Cote d'Ivoire also benefited from Paris Club debt rescheduling in 1994, a London Club agreement in 1996, and the 1997 G-7 decision to include Cote d'Ivoire in the IMF-World Bank debt forgiveness initiative for highly indebted poor countries (HIPC).

With the economic improvement, Cote d'Ivoire began turning the corner on its daunting debt load. For several years running, it met its IMF targets for growth, inflation, government finance, and balance of payments. Government revenues increased, which in combination with spending restraint resulted in 3 years of primary surpluses (i.e., receipts minus expenditure, excluding borrowing and debt service). Following a concerted government repayment effort, domestic arrears were virtually eliminated by the end of 1996. The pre-devaluation stagnation which caused local businesses and potential outside investors to delay capital expenditures accentuated the post-devaluation investment boom.

Lower inflation followed as the government kept a tight lid both on salary increases and on the size of the public sector work force devaluation and has continued with the economic slow down of the last 2 years. The consumer price index measure of inflation slide from 13.6% in 1995 to 5.4% in 1997 and 0.7% in 1999. Through the first three quarters of 2001 inflation is 4.0%, according to the Ivoirian Institute of Statistics.

In the past 2 years, economic decline has resulted in declining living standards. Falling commodity prices along with government corruption and fiscal mismanagement brought the economy to its knees by the end of 1999. At that point, the coup d'etat and the subsequent institution of the military junta government caused the loss of foreign assistance. Private foreign investment declined precipitously. Government internal and external debt ballooned. As a result, the Ivoirian economy contracted 2.5% in 2000. The government signed a Staff Monitoring Program with the IMF in July 2001. That may lead in early 2002 to a Poverty Reduction and Growth Facility, which could include substantial budget support. Meanwhile, the European Union is cautiously resuming aid, and the government has worked down its arrears with the World Bank which will likely soon once again begin disbursing on several million dollars worth of projects that have been on hold.