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Seychelles flag

SEYCHELLES

A lengthy struggle between France and Great Britain for the islands ended in 1814, when they were ceded to the latter. Independence came in 1976. Socialist rule was brought to a close with a new constitution and free elections in 1993. The most recent presidential elections were held 31 August-2 September 2001. President RENE, who has served since 1977, was re-elected. On 14 April 2004 RENE stepped down and Vice President James MICHEL was sworn in as president.

LOCATION

Eastern Africa, group of islands in the Indian Ocean, northeast of Madagascar2.5 times the size of Washington, DC

POPULATION

80,832 (July 2004 est.). Roman Catholic 86.6%, Anglican 6.8%, other Christian 2.5%, other 4.1%

NATURAL RESOURCES

Fish, copra, cinnamon trees

NATURAL PROBLEMS

Lies outside the cyclone belt, so severe storms are rare; short droughts possible. Water supply depends on catchments to collect rainwater

ECONOMICS

Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years the government has encouraged foreign investment in order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. A sharp drop illustrated the vulnerability of the tourist sector in 1991-92 due largely to the Gulf war, and once again following the 11 September 2001 terrorist attacks on the US. Other issues facing the government are the curbing of the budget deficit, including the containment of social welfare costs, and further privatization of public enterprises. Growth slowed in 1998-2002, due to sluggish tourist and tuna sectors. Also, tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The black market value of the Seychelles rupee is half the official exchange rate; without a devaluation of the currency the tourist sector should remain sluggish as vacationers seek cheaper destinations such as Comoros, Mauritius, and Madagascar.

Revenues: $338.7 million
Expenditures: $323.3 million, including capital expenditures of NA (2004 est.)

Coconuts, cinnamon, vanilla, sweet potatoes, cassava (tapioca), bananas; broiler chickens; tuna fishfishing; tourism; processing of coconuts and vanilla, coir (coconut fiber) rope, boat building, printing, furniture; beverages

Debt - external: $213 million (2004 est.)

Economic aid - recipient: $16.4 million (1995)

Internet hosts: 264 (2003)

Internet users: 11,700 (2002)

CONFLICTS

Together with Mauritius, Seychelles claims the Chagos Archipelago (UK-administered British Indian Ocean Territory)