Lying on Africa's west coast, impoverished Guinea-Bissau, a former Portuguese territory, is bordered by Senegal to the north and Guinea to the south and east. Apart from savanna highlands in the northeast, the country is low-lying. The PAIGC initiated a process of change to multiparty democracy in 1990, and elections were held in 1994. A military coup in 1999 followed army rebellion the previous year, but legislative and presidential elections have since been held.

About 98% of Guinea-Bissau's people come from indigenous ethnic groups. The largest is the southern Balante, who form almost one-third of the population. Mixed-race mestiço and European minorities make up just 2% of the population. Although small in number, the mestiços – many of whom derive from Cape Verde, Portugal's other former west African colony – still dominate the bureaucracy. Resentment at this, especially among the Balante, who provided most of the PAIGC troops in the independence war, was one cause of the 1980 coup. The majority of the population live and work on small family farms, grouped in self-contained villages. The bulk of the urban population live in the capital, Bissau.

Strengths

Minimal at present, but good potential in fisheries and timber. Offshore oil potential.

Weaknesses

Lack of sufficiency in rice staple. Fish stocks depleted by poaching. Few exports, mainly cashew nuts, groundnuts. Minimal industry. High illiteracy. Poor state economic management.

Twenty years of one-party rule ended in 1994, when opposition groups disputed the ruling PAIGC's win in multiparty elections. A period of instability led to an army rebellion in 1998 and eight months of fighting between loyalists of President João Bernardo Vieira and the army chief, General Ansumane Mane, which displaced about half the population. ECOWAS troops intervened and a national unity government was formed, only to be overthrown in May 1999. Mane, the coup leader, convened elections won by the PRS, whose candidate Kumba Yalla was elected president in January 2000. Mane was killed in another, failed, coup attempt, but Yalla now faces resistance from the Assembly itself over his increasingly erratic style of government.

Relations with Sierra Leone and Liberia are extremely tense due to the activities of various rebel militias along the southern borders. Senegalese and Guinean troops intervened in mid-1998 to suppress an antigovernment army rebellion.

There are around 9000 troops. The army led coups in 1980 and 1999, and suffered internal rebellions in 1998 and 2000, continuing a history of military interference in politics. ECOWAS soldiers have intervened to restore order on a number of occasions.

Fish and timber are the main natural resources, but local exploitation is only 10% of the sustainable levels of 250,000 tonnes and 100,000 tonnes a year. Considerable hydropower potential is also underexploited.

Drought and locust plagues are serious natural hazards. A small population and minimal industry mean that there are few serious environmental problems.

The many waterways and islands make water transportation as vital as the roads. Both are being improved.

Guinea-Bissau's health statistics are among the world's worst, due partly to the minimal medical facilities. Average life expectancy is just 45 years; infant mortality is 127 per 1000 live births; the maternal death rate is high. In mid-2000 the AfDB provided $500,000 in funding for an emergency health program.

Around 65% of children receive rudimentary education. Guinea-Bissau has no university.

The death penalty was abolished in 1993. Reform of the legal system is in progress to make it more independent of the PAIGC. The government has been criticized for human rights abuses.

Living conditions for the majority of Guinea-Bissau's people are extremely poor; over 70% of the population are unable to meet their basic needs. The tiny elite is mainly mestiço.

Lack of tourist facilities means that the country remains a destination for only the most independent of travelers.

Explored by the Portuguese in the 15th century, Portuguese Guinea was established in 1879. A war for independence began in the 1960s.

• 1974 Independence. PAIGC takes power.
• 1980 Military coup.
• 1990 Multiparty politics accepted.
• 1994 Multiparty elections.
• 1998 Army rebellion led by General Mane. ECOWAS intervention.
• 1999 Transitional government. May, army seizes power. November, PRS defeats PAIGC in elections.
• 2000 Kumba Yalla president. Mane killed in failed coup attempt.