Country Report Seychelles June 2011

Outlook for 2011-12: Political stability

James Michel, re-elected by a comfortable 55:41% margin in the presidential election on May 19th-21st, will now start a second five-year term. The victory-by a larger margin than in 2006-will cement the hold of the president and the long-term ruling People's Party (PP; also known as Parti Lepep) on the Seychelles' political scene, although parliamentary elections scheduled in 2012 will provide an additional test. The presidential election was free of violence and conducted in a transparent manner, according to observers from the Southern African Development Community (SADC) and the Commonwealth-and turnout was high at about 83%, lending legitimacy to the outcome. Wavel Ramkalawan, the losing candidate of the opposition Seychelles National Party (SNP), whose share of the vote slipped from 46% in 2006, claims that voters were bribed. However, this is a perennial complaint and largely reflects the PP's control of government, including the state-run media and the civil service, rather than outright fraud. Relations between the two parties will remain fractious but peaceable, and squabbling does not post a threat to political stability. The electorate clearly rewarded Mr Michel for the rebound in the economy following a severe debt crisis and the launch of tough sweeping reforms in 2008. The PP's decision to embrace reforms, which had long been advocated by the SNP-and their success in terms of robust growth, a debt write-off, lower inflation, a now stabilised currency and higher foreign-exchange reserves-removed a key campaigning weapon from the opposition's armoury.

The SNP will retain the support of a significant portion of the electorate but, having lost ground since its high-water mark in 2006, faces a challenging future. Mr Ramkalawan, defeated by the ruling-party candidate in four consecutive elections, may step aside, although will probably not make a final decision until prior to or immediately after next year's parliamentary ballot. The SNP will continue to campaign for a non-politicised civil service and for liberalisation of the media. For Mr Michel, the election is a positive endorsement of his personality and policies, and will make it easier for him to impose his will on the PP (which still harbours both quasi-socialist and mercantilist elements opposed to free markets) and push ahead with reforms. This, in turn, will ensure that Seychelles maintains good relations with key donors. The socio-economic reform process should help to turn Seychelles into a more transparent and less partisan society, although some key challenges remain, notably those of building a more independent judiciary and continuing tentative steps towards improving press freedom.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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