Background:
Almost five centuries as a Portuguese colony came to a close with
independence in 1975. Large-scale emigration by whites, economic
dependence on South Africa, a severe drought, and a prolonged civil
war hindered the country's development. The ruling party formally
abandoned Marxism in 1989, and a new constitution the following year
provided for multiparty elections and a free market economy. A
UN-negotiated peace agreement with rebel forces ended the fighting
in 1992. Heavy flooding in both 1999 and 2000 severely hurt the
economy. Political stability and sound economic policies have
encouraged recent foreign investment.