The 115 islands of the Seychelles, lying in the Indian Ocean, support unique flora and fauna, including the giant tortoise and the world's largest seed, the coco-de-mer. Formerly a UK colony and then under one-party rule for 16 years, the Seychelles became a multiparty democracy in 1993. The economy relies on tourism.

The Seychelles islands were uninhabited before French settlers arrived in the 1770s. Today, the population is markedly homogeneous as a result of intermarriage between different ethnic groups. The Creoles are the descendants of the French settlers and of the Africans who were settled on the islands by British administrators. There are small Chinese and Indian minorities.

Almost 90% of Seychellois live on Mahé. Population growth has been very low, as about 1000 people a year have been emigrating. The transition to democracy may reverse this trend.

Strengths

Tourism. Fish exports, especially shrimps and tuna. Profitable re-export trade. International Trading Zone attracting foreign industrial interest. Copra, cinnamon, tea.

Weaknesses

Growing deficits in early 1990s, caused by drop in tourism following 1991 Gulf War, spending on hosting 1993 Indian Ocean Games, and cost of four elections. High debt servicing costs. Reliance on food imports, especially for tourist industry. Copra production declining. Reliance on expatriate labor.

In 1993, the Seychelles returned to democracy after 16 years of one-party socialist rule under President René, who had seized power soon after independence. Opposition divisions in the 1993 elections allowed René to retain the presidency. His SPPF retained its majority in the 1998 elections – having dramatically abandoned its leftist ideology, and adopted wide-ranging reforms, encouraging privatization and legalizing trade unions. The highlight is a scheme to develop Seychelles as an International Trading Zone, with free-port facilities and new industry.

The Seychelles is nonaligned, but its strategic location encourages competing world powers to seek its friendship. It claims the Chagos Archipelago from Britain. Trade accords exist with other Indian Ocean states.

The Seychelles has a 200-strong army, and a paramilitary guard. The latter includes the coast guard made up of air and sea forces. The army, set up in 1977, was initially trained by Tanzania, and Tanzanian troops were brought in for three years after a coup attempt in 1981. North Korea provided advisers until 1989.

There are virtually no mineral resources. All fuel is imported; only three islands have electricity. Offshore discoveries of natural gas have spurred a search for oil. Natural habitat and free trade environment are tremendous assets.

The Seychelles has been praised for its commitment to conservation. It has two natural World Heritage sites, and helped promote the idea of whale sanctuaries.

Nine islands have airstrips. The public transportation fleet and roads are being renewed. Victoria's deep-sea harbor is one of the best run in the region.

State health care is free. Private medicine is allowed under new social legislation. Life expectancy is over 70 years.

The 1995–2008 Educational and Training Plan places special emphasis on increasing levels of female enrollment. National Youth Service is mandatory for entry to higher education.

Violent crime is rare in the Seychelles. The main concern is the increasing rate of petty theft.

Living standards are the highest among AU states. There are no slums in the Seychelles, and the state welfare system caters for all.

Since Mahé international airport was opened in 1971, tourism has become the mainstay of the economy, and employs 30% of the workforce. New hotels must comply with laws to protect the islands' beauty and unique wildlife. There is substantial foreign investment.

The French claimed the islands in 1756. Franco-British rivalry for control ended when France ceded them to Britain in 1815.

• 1952 Political parties formed, led by F. A. René (pro-independence) and James Mancham (pro-UK rule).
• 1965 UK returns Desroches, Aldabra, and Farquhar islands, which are leased to USA to 1976.
• 1976 Independence. Coalition with Mancham president, René premier.
• 1977 René takes over in coup.
• 1979 One-party socialist state.
• 1979–1987 Several coup attempts.
• 1992 Politicians in exile return.
• 1993 Democratic elections.
• 2001 René reelected in early presidential elections.