Country Report Guinea-Bissau April 2011

Outlook for 2011-12: International relations

Relations with Guinea-Bissau's development partners, which had improved markedly in the wake of Mr Sanhá's election victory in July 2009, are deteriorating once more, primarily because of the appointment of General Indjai and Admiral Na Tchuto as army and navy chief respectively. Although the World Bank and the IMF remain actively engaged in the country, donors have suspended aid and involvement in SSR, as well as a proposed roundtable to raise pledges for national reconstruction. The gap in funding is being partly filled by China and Angola. China has offered generous budget support and credit lines as part of efforts to expand its influence across the region. Both countries could soon displace Portugal as Guinea-Bissau's key development partner and advocate on the world stage. The interest of the US and the EU in the country will remain focused on its position as a nexus in trafficking networks run by South American drug cartels. ECOWAS, which has long played a leading role in aiding the democratic transition, is trying to revive international support for SSR and will remain the country's ultimate guarantor of security for the foreseeable future. Senegal is an important regional partner: its president, Abdoulaye Wade, favours co-operation between the two countries' military forces in order to crush dissident rebel movements in the Casamance region, which borders northern Guinea-Bissau.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT