Angola is rebuilding its country after the end of a 27-year civil war in 2002. Fighting between the Popular Movement for the Liberation of Angola (MPLA), led by Jose Eduardo DOS SANTOS, and the National Union for the Total Independence of Angola (UNITA), led by Jonas SAVIMBI, followed independence from Portugal in 1975.
Peace seemed imminent in 1992 when Angola held national elections, but fighting picked up again by 1996. Up to 1.5 million lives may have been lost - and 4 million people displaced - in the quarter century of fighting. SAVIMBI's death in 2002 ended UNITA's insurgency and strengthened the MPLA's hold on power. President DOS SANTOS held legislative elections in September 2008 and, despite promising to hold presidential elections in 2009, has since made a presidential poll contingent on the drafting of a new constitution.
Peace seemed imminent in 1992 when Angola held national elections, but fighting picked up again by 1996. Up to 1.5 million lives may have been lost - and 4 million people displaced - in the quarter century of fighting. SAVIMBI's death in 2002 ended UNITA's insurgency and strengthened the MPLA's hold on power. President DOS SANTOS held legislative elections in September 2008 and, despite promising to hold presidential elections in 2009, has since made a presidential poll contingent on the drafting of a new constitution.
Angola's high growth rate in recent years was driven by its oil sector, and high international oil prices. Oil production and its supporting activities contribute about 85% of GDP. Increased oil production supported growth averaging more than 15% per year from 2004 to 2007. The global recession and lower prices led to a contraction in GDP in 2009.
A postwar reconstruction boom and resettlement of displaced persons has led to high rates of growth in construction and agriculture as well. Much of the country's infrastructure is still damaged or undeveloped from the 27-year-long civil war. Remnants of the conflict such as widespread land mines still mar the countryside even though an apparently durable peace was established after the death of rebel leader Jonas SAVIMBI in February 2002.
Subsistence agriculture provides the main livelihood for most of the people, but half of the country's food must still be imported. Since 2005, the government has used billions of dollars in credit lines from China, Brazil, Portugal, Germany, Spain, and the EU to rebuild Angola's public infrastructure. Although consumer inflation declined from 325% in 2000 to under 13% in 2008, the stabilization policy proved unsustainable and Angola abandoned its currency peg in 2009. Angola became a member of OPEC in late 2006 and in late 2007 was assigned a production quota of 1.9 million barrels a day (bbl), somewhat less than the 2-2.5 million bbl Angola's government had wanted. In November 2009 the IMF announced its approval of Luanda's request for a Stand-By Arrangement; the loan of $1.4 billion aims to rebuild Angola's international reserves. Corruption, especially in the extractive sectors, is a major challenge.
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