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Country Commercial Guides for FY 2000: Cote d'Ivoire Report prepared by U.S. Embassy Abidjan, released July 1999

CHAPTER III:   POLITICAL ENVIRONMENT

1.   Nature of Political Relationship with the United States

Côte d'Ivoire has shown remarkable political stability since its independence from France in 1960, in a region where political systems have otherwise been noted for their frailty. Its relations with the United States have been excellent. When many other countries in the region were undergoing repeated military coups, experimenting with Marxism, and developing ties with the Soviet Union and China, Côte d'Ivoire under Felix Houphouët-Boigny (president from independence until his death in December 1993) maintained a close political alliance with the West. President Bédié knows the United States from his time as Côte d'Ivoire's Ambassador to Washington and later as special adviser to the President of the World Bank. In addition, hundreds of younger Ivoirians study in America.

2.   Major Political Issues Affecting Business Climate

Looking toward the future of Côte d'Ivoire, the fundamental issue is whether Ivoirian society will maintain the political stability which is the sine qua non for investor confidence and further economic development. Côte d'Ivoire evolved, with relatively little violence or dislocation, from a single-party to a pluralistic state, beginning in 1990. Opposition parties, independent newspapers, and independent trade unions were legalized at that time. Since those major changes, the country's pace of political change has been slow. Whether further democratic reform will take place and be adequate to meet future challenges is unknown.

As is generally true in the region, the business environment is one in which personal contact and connections remain important, where rule of law does not prevail with assurance, and where the legislative and judicial branches of the government remain weak. The political system is highly centralized, with the presidency dominating the ruling party, the legislature and judiciary, and regional administration. Côte d'Ivoire's efforts to relinquish state control of the economy are undermined by its continued dominance of the political system.

Like some neighboring countries, Côte d'Ivoire faces the social and economic challenges of rapid population growth (by birth and immigration), crime (particularly in Abidjan), AIDS, illiteracy, ethnic diversity (several of the 60-odd ethnic groups have affinities in neighboring countries), differing local rates of development, and religious differences associated with region and ethnic group. These factors will put increasing stress on the political system, especially if the economy, still largely dependent on international cocoa and coffee prices, takes another plunge.

3.   Brief Synopsis of Political System, Schedule for Elections, and Orientation of Major Political Parties

The political system in Côte d'Ivoire today is dominated by the president. The prime minister concentrates on coordinating and implementing economic policy. The key decisions -- political, military, and economic -- are made by President Bédié, as they were once made by President Houphouët-Boigny. But political discourse is freer today than prior to 1990, and the opposition press is vocal in its criticism of the regime.

The Ivoirian constitution affords the legislature theoretical independence, but this has never been exercised. Until 1990 all legislators were members of the ruling party, the PDCI (Democratic Party of Côte d'Ivoire). After the 1995-96 elections, the PDCI continues to hold 149 out of 175 seats. The PDCI's "core" region is the terrain of the Baoulé tribe in the country's center, home of both Houphouët-Boigny and Bédié. However, the PDCI is well-entrenched in all parts of Côte d'Ivoire.

The remaining 26 seats in the National Assembly are divided equally between the two opposition parties of national scope, the FPI (Ivoirian Popular Front) and RDR (Republican Rally). The oldest is the FPI, a moderate party tinged with socialism but more concerned with democratic reform than radical economic change. The FPI is strongest in the west-central lands of its leader Laurent Gbagbo's Bété ethnic group and in the southeast. The non-ideological RDR was formed in September 1994 by former members if the PDCI's reformist wing, who hoped that former Prime Minister Alassane Ouattara would run and prevail in the 1995 presidential election. However, he chose not to run in the face of subsequent legislation requiring five years' residency. The RDR, strongest in the predominantly Muslim north, has said it will support Ouattara in the next elections.

The FPI and RDR boycotted the presidential election of October 1995 because of Ouattara's disqualification and the absence of an independent electoral commission, among other grievances. Their "active boycott" produced some violence and hundreds of arrests. In June 1998, the National Assembly voted constitutional changes apparently designed to protect the ruling party's dominance, including a change to extend the presidential term from 5 to 7 years and a requirement that both of a candidate's parents must be Ivoirian. In early 1999, rising labor and student unrest was expressed in frequent strikes, mainly over economic issues. With presidential and congressional elections scheduled for October 2000, most opposition grievances remained unaddressed, and the prospect for transparent and peaceful elections appeared doubtful.