Economy
Guinea-Bissau's GDP per capita is one of the lowest in the world, and its Human Development Index is one of the lowest on earth. More than two-thirds of the population lives below the poverty line. The economy depends mainly on agriculture; fish, cashew nuts and ground nuts are its major exports. A long period of political instability has resulted in depressed economic activity, deteriorating social conditions, and increased macroeconomic imbalances.
Guinea-Bissau has started to show some economic advances after a pact of stability was signed by the main political parties of the country, leading to an IMF-backed structural reform program. The key challenges for the country in the period ahead would be to achieve fiscal discipline, rebuild public administration, improve the economic climate for private investment, and promote economic diversification. After becoming independent from Portugal in 1974 due to the Portuguese Colonial War and the Carnation Revolution, the exodus of the Portuguese civilian, military and political authorities brought tremendous damage to the country's economic infrastructure, social order and standard of living.
After several years of economic downturn and political instability, in 1997, Guinea-Bissau entered the CFA franc monetary system, bringing about some internal monetary stability. The civil war that took place in 1998 and 1999 and a military coup in September 2003 again disrupted economic activity, leaving a substantial part of the economic and social infrastructure in ruins and intensifying the already widespread poverty. Following the parliamentary elections in March 2004 and presidential elections in July 2005, the country is trying to recover from the long period of instability despite a still-fragile political situation.
Beginning around 2005, drug traffickers based in Latin America began to use Guinea-Bissau, along with several neighboring West African nations, as a transshipment point to Europe for cocaine. The nation was described by a United Nations official as being at risk for becoming a "narco-state". The government and the military have done little to stop drug trafficking, which has increased since the 2012 coup d'état.
Guinea-Bissau is a member of the Organization for the Harmonization of Business Law in Africa (OHADA).
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