History Country Brief last updated March 2008 
São Tomé and Príncipe comprise two small tropical islands in the Gulf of Guinea, 400 kilometers from Gabon. The total population, estimated at 160,000 as of end-2005, is growing at about 2.1 percent per year.
The official language is Portuguese, and the currency is the Dobra. São Tomé and Príncipe is ranked 126/177 in the 2003 UNDP Human Development Index.
As of end 2004, life expectancy at birth was 63 years, adult literacy rate 83.4 percent, and the gross enrollment ratio for education was 62 percent. Upon attaining independence from Portugal in 1975, São Tomé and Príncipe inherited an economy based exclusively on agriculture and the production and export of a single crop, cocoa. Both the education and health indicators have generally been good compared to African averages, although they declined during the 1990s because of a lengthy economic crisis. Political Environment Since the constitutional reforms of 1990 and the elections of 1991, Sao Tome has made great strides toward developing its democratic institutions and further guaranteeing the civil and human rights of its citizens. Sao Tomeans have freely changed their government through peaceful and transparent elections. And while there have been disagreements and political conflicts within the branches of government and the National Assembly, the debates have been carried out and resolved in open, democratic, and legal fora, in accordance with the provisions of Sao Tomean law. São Tome and Príncipe held its fourth presidential election since the introduction of multi-party politics in 1990 on 30 July 2006. Incumbent Fradique de Menezes, first elected in 2001, won more than 60 per cent of the votes, while his main challenger, Patrice Trovoada (a former president's son) got just over 38 per cent of the votes. The third candidate, Nilo Guimarães, got less than 1 percent of the votes. The March 26 legislative elections gave a plurality of seats in the National Assembly to a coalition of parties, the Democratic Movement of Forces for Change/Party for Democratic Convergence (MDFM/PCD), supporting President De Menezes. The MDFM/PCD subsequently formed a government. On August 27, for the first time in over a decade, local elections were held; on the same date regional elections were held on Principe. The MDFM/PCD won control of five of the six districts in these elections; the principal opposition party, the Movement for the Liberation of Sao Tome and Principe (MLSTP/PSD) won one district; and a new party, Novo Rumo, won the presidency of the regional government on the island of Principe. Economic Development São Tomé and Príncipe's economy is fragile, having been burdened by a high debt per capita with a debt to GDP ratio of over 600 percent. The country’s productive base is undiversified, as it relies almost exclusively on cocoa exports and external donations. This has substantially increased the country's vulnerability to exogenous shocks. A long period of decline in the world price of cocoa, combined with increased import petroleum prices, put severe strains on incomes and living standards. Additional economic activities include modest fishing, and small but growing construction and tourism sub-sectors. Following a decade of large macroeconomic imbalances and state intervention in the economy, the Sãotomean Government has pursued economic reforms since 1998 that have helped increase real GDP growth, lower inflation, and push forward key structural reforms, with support from international donors. In 2005, economic performance remained strong (real GDP growth of 6 percent), although inflation picked up (17 percent) against the background of sharp increase in international oil prices that were passed on to domestic consumers. Growth reached an estimated 8 percent in 2006, and inflation flared up to 21.4 percent as a consequence of election-related expenditures and accommodating monetary policy. In the second half of the year, the new government re-established fiscal and monetary discipline. Prospective off-shore oil production could significantly modify the medium and long-term economic outlook. However, so far, a first exploratory well in Block 1 in early 2006 has been deemed commercially non-viable for now. Other blocks (2, 3 and 4) have also been contracted recently. Negotiations on two additional blocks (5 and 6) are suspended until further notice. Aid coordination The main donors include Portugal, France, the EU, AfDB, the World Bank and the UN family, as well as Taiwan, Province of China. The United States has also become an active donor in the past three years, with São Tomé and Principe poised to benefit from the United States Millennium Challenge Corporation (MCC) threshold program. The last UNDP-sponsored Round Table meeting took place in Brussels in November 2005. Three UNDP-sponsored sectoral Round Tables (in education, infrastructure and governance) took place in December 2006. World Bank partnership São Tomé and Principe joined the Bank and IDA in 1977 and became a borrower in 1985. The Bank's previous involvement included structural adjustment operations, as well as support in the agriculture, health, and education sectors. The country reached the HIPC decision point in December 2000 and Completion Point in March 2007, at which time the International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA) agreed to provide US$314 million in debt relief under the Enhanced HIPC Initiative, topping up and MDRI. The country's PRSP was promulgated by the President of the Republic in January 2003 and presented to the IMF and Bank Boards in April 2005. The current IDA Country Assistance Strategy (CAS), adopted by the Bank Board in early June 2005, and covering the period 2006-2009, supports the government in promoting the implementation of the PRSP, focusing on strengthening the macroeconomic and public finance management, and building the required institutions and capacity to ensure the sustainable use of expected future oil revenues. To date, the World Bank has approved fourteen IDA credits for São Tomé and Príncipe for a total amount of approximately US$83.3 million. Current IDA commitments for the two ongoing projects amount to US$11.5 million with US$3.2 million undisbursed as of August 2007. The Social Sector Support Project of US$6.5 million assists the country in achieving the human development goals as defined at the UN Millennium Summit. The Governance Capacity Building Project, in an amount of US$5 million equivalent, supports São Tomé's public finance management and helps build the institutional framework of the nascent petroleum sector. A Development Policy operation of US$6 million providing budgetary support is under preparation. Contacts Ms. Mary Barton-Dock
Country Director
World Bank Street 1.792, No.186, Ekoudou-Bastos
Yaoundé, Cameroon
Tel. (237) 22-20-38-15/ 22-20-16-36
Fax: (237) 22-21-07-22
Email: mbarton@worldbank.org Mr. Olivier Fremond
Country Manager
Quartier Palais de Justice
Section RG
Parcelle No. 222
Libreville , Gabon
Phone: +241-73-81-71
Fax: +241-73-81-69
Email: ofremond@worldbank.org Ms. Dorsati Madani
Country Economist
1818 H Street NW
Washington , DC 20433 USA
Tel : +1-202-473-7925
Fax: +1-202-473-8136
Email: dmadani@worldbank.org Ms. Kathryn Hollifield
Country Program Coordinator
Tel: +1-202 458 1731
Fax: +1-202 474 5452
Email: khollifield@worldbank.org Ms. Janet Dooley
Senior Country Officer
Tel:+1-202-458-4626
Fax: +1-202-473-5452
Email: jdooley1@worlbank.org Mr. Rafael Munoz Moreno
Country Economist
Tel: + 1- 202-458-8928
Fax: +1-202-473-8136
Email : rmunozmoreno@worldbank.org Ms. Nellie Sew Kwan Kan
Senior Program Assistant
Tel: +1-202-473-4756
Fax: +1-202-473-5452
Email: nsewkwankan@worldbank.org |
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