Changes

===Political Conditions===

===Political Conditions===

Laurent Gbagbo has been President since October 26, 2000. Gbagbo took power following a popular uprising supporting his election victory after junta leader Gen. Robert Guei claimed a dubious victory in the 2000 presidential elections. General Guei had assumed power on December 25, 1999, following a military coup d'etat against the government of former President Henri Konan Bedie. Coup attempts in 2001 and 2002 escalated into a rebellion and crisis which culminated in the January 2003 signing of an accord for a power-sharing national reconciliation government. Implementation of the 2003 accord has made halting progress, and Ivory Coast remains divided, with rebels occupying the northern half of the country. French Licorne and UNOCI peacekeeping troops observe a green line between government and New Forces positions.

Laurent Gbagbo has been President since October 26, 2000. Gbagbo took power following a popular uprising supporting his election victory after junta leader Gen. Robert Guei claimed a dubious victory in the 2000 presidential elections. General Guei had assumed power on December 25, 1999, following a military coup d'état against the government of former President Henri Konan Bedie. Coup attempts in 2001 and 2002 escalated into a rebellion and crisis which culminated in the January 2003 signing of an accord for a power-sharing national reconciliation government. Implementation of the 2003 accord has made halting progress, and Ivory Coast remains divided, with rebels occupying the northern half of the country. French Licorne and UNOCI peacekeeping troops observe a green line between government and New Forces positions.

Ivory Coast's relations with the U.S. have traditionally been excellent, but have been somewhat strained since Section 508 restrictions curtailed nonhumanitarian aid following the December 1999 military coup. The restrictions were not lifted following the 2000 elections due to questionable governmental interference before and during the election.

Ivory Coast's relations with the U.S. have traditionally been excellent, but have been somewhat strained since Section 508 restrictions curtailed nonhumanitarian aid following the December 1999 military coup. The restrictions were not lifted following the 2000 elections due to questionable governmental interference before and during the election.

The 1994 devaluation of the CFA franc helped return Ivory Coast to rapid economic growth until the slowdown evident by 1999. Increased aid flows, rigorous macroeconomic policies, and high international commodity prices, along with devaluation, yielded 6%-7% annual GDP growth rates from 1994-98. Ivory Coast also benefited from Paris Club debt rescheduling in 1994, a London Club agreement in 1996, and the 1997 G-7 decision to include Ivory Coast in the IMF-World Bank debt forgiveness initiative for highly indebted poor countries.  

The 1994 devaluation of the CFA franc helped return Ivory Coast to rapid economic growth until the slowdown evident by 1999. Increased aid flows, rigorous macroeconomic policies, and high international commodity prices, along with devaluation, yielded 6%-7% annual GDP growth rates from 1994-98. Ivory Coast also benefited from Paris Club debt rescheduling in 1994, a London Club agreement in 1996, and the 1997 G-7 decision to include Ivory Coast in the IMF-World Bank debt forgiveness initiative for highly indebted poor countries.  

In the past several 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 2.3% in 2000. The government signed a Staff Monitoring Program with the IMF in July 2001, but plans for a subsequent Poverty Reduction and Growth Facility were disrupted by the onset of the crisis in September 2002. The signs of economic and business recovery were encouraging in the mid-year of 2002, but the political and social crisis that began in September 2002 undermined all the efforts to resume cooperation with international donors. The economy has been in a slow decline since the outbreak of the armed rebellion in late 2002, with a cutoff of most external assistance (except humanitarian aid), mounting domestic and foreign arrearages, and a drastic slowdown in foreign and domestic investment.  

In the past several 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'état 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 2.3% in 2000. The government signed a Staff Monitoring Program with the IMF in July 2001, but plans for a subsequent Poverty Reduction and Growth Facility were disrupted by the onset of the crisis in September 2002. The signs of economic and business recovery were encouraging in the mid-year of 2002, but the political and social crisis that began in September 2002 undermined all the efforts to resume cooperation with international donors. The economy has been in a slow decline since the outbreak of the armed rebellion in late 2002, with a cutoff of most external assistance (except humanitarian aid), mounting domestic and foreign arrearages, and a drastic slowdown in foreign and domestic investment.  

The country is in substantial arrears to the World Bank and other international financial institutions. GDP growth is anemic, reaching 1.6% in 2005, buoyed largely by growing oil and gas revenues, along with steady cocoa exports. Strong economic growth is not expected until peace is firmly reestablished and international financial institutions conclude agreements to reduce the country’s large debt profile. However, with the gradual reintegration of the country, the economy in the north may begin to revive after a prolonged slump caused by the four-year-long division of the country.

The country is in substantial arrears to the World Bank and other international financial institutions. GDP growth is anemic, reaching 1.6% in 2005, buoyed largely by growing oil and gas revenues, along with steady cocoa exports. Strong economic growth is not expected until peace is firmly reestablished and international financial institutions conclude agreements to reduce the country’s large debt profile. However, with the gradual reintegration of the country, the economy in the north may begin to revive after a prolonged slump caused by the four-year-long division of the country.