ABSTRACT

The largely unknown twin-island republic of São Tomé and Príncipe is the second smallest country in Africa, with a total area of 1,001 km2 and a population of 155,000 (Instituto Nacional de Estatística, 2007). With GNI of $60.4 million and per capita income of $390 (2005) its economy is the smallest in Africa (World Bank, 2006). The former Portuguese colony derives some income from cocoa production and tourism, however, it has been largely dependent on international aid. Since 1991 the impoverished country has been a multiparty democracy. Elections have been held regularly and peacefully, and have been considered as free, fair, and democratic by international observers. Multiparty democracy in the archipelago has been marked by continuous political instability, weak institutions, widespread rent-seeking and the misappropriation of development funds (Seibert, 2006). Economic growth has been modest, while mass poverty has increased in recent years. A survey on poverty conducted in 2001 claimed that 54 per cent of the population lived in poverty, whereas in 1991 this figure had been 36 per cent (EIU, 2002, p. 29).