• China lends Nigeria Dollars 2bn in exchange for oil talks. • Ft com site : China oils Nigeria talks with loan

investigators found China had acquired sensitive technologies from U.S.-built commercial satellites then being launched by the Chinese.
The new rules put commercial communications satellites, subsystems and components on a munitions list subject to State Department licensing even if similar products could be easily bought worldwide.
The U.S. State Department had no immediate comment on the report.
In the global communications satellite market -- where the United States enjoyed a technical edge over international competitors in the 1990s -- the gap with competitors has "significantly closed" in the last decade, the report said.
The U.S. share of global space markets is steadily declining and U.S. companies are increasingly hard-put to cash in on foreign markets, it said. "U.S. preeminence in space is under challenge in many areas."
The export-control regime is designed to enhance U.S. national security but "did not do what it intended," said Pierre Chao, one of the study's three co-chairs, at a briefing on the findings. "In some cases, it had the opposite effect."
For instance, Russia was sharing relevant know-how with China, Europe and India even as the United States had shied from doing so, the report said.
The study said the overall financial health of the top manufacturers in the U.S. space industrial -- by implication, companies like Lockheed Martin Corp , Boeing Co and Northrop Grumman Corp -- was "good," despite the U.S. industry's loss of share overseas.
But it said U.S. access to foreign innovation and "human capital" was getting tougher. The U.S. space industrial base is largely dependent on U.S. national-security spending, it added.
The study found space-faring nations were continuing to make strides even without access to U.S. technology that once made the United States part of a "very exclusive club."
For instance, Russia, France, Israel, South Korea and India all now possess commercial imaging satellites sharp enough to pick out objects on the ground one meter (one yard) long or less, the report said.
In addition, Canada, the European Space Agency, Italy, Germany and Japan each possess civil radar imaging satellites, with India and Argentina soon to join the list, it said.
Since 1999, China, for its part, has launched an indigenous navigation system, conducted its first manned spaceflight, tested an antisatellite missile, sold the first Chinese-built satellite to a foreign buyer (Nigeria) and launched its first lunar probe. China also has launched two military radar imaging satellites, the report said.
Jeffrey Foust, a space and telecommunications expert at Futron Corp, a Bethesda, Maryland consultancy, said U.S. policy had backfired in space.
"The U.S. is actually hurting national security by making it more difficult for the space companies it depends on to compete in the global market," he said. (Reporting by Jim Wolf; Editing by Tim Dobbyn)
USA-SPACE/|LANGEN|G|RBN|ABN|E|U|RNP|DNP|PGE|PCO
Document LBA0000020080219e42j001ku
Investment Adviser: Hunting in deepest Africa.
African indices are giving Brics a run for their money, with the continent offering low valuations and top opportunities

1,321 words

18 February 2008

Investment Adviser

INVADV

English

(c) 2008 Investment Adviser
Africa has come to mean a number of different things to investors. For some, it refers to the entire continent, while for others only to sub-Saharan countries, with North Africa counting as part of the Middle East. Some see it as a high-risk investment demanding high returns, and some as a hedge against the rest of the world, given Africa's traditionally low correlation to other markets.
However investors define Africa, there is no doubt its stock performance over the last decade has proved a match for the more prominent Brics. If one compares the performance of Brazil, Russia, India and China to South Africa, Nigeria, Morocco and Egypt on the basis of the S&P/ICFG country indices, which measure the performance of the most active emerging market stocks, the African nations' results are enviable over three and five years and since the indices were launched nine years ago.
Impressive results
Over three years, the S&P/ICFG China index has returned 233.3 per cent, slightly behind the top-performing Nigerian index return of 238.2 per cent. The Moroccan and Egyptian indices have performed similarly to their Russian, Indian and Brazilian equivalents, but are currently surging ahead. The South African index is the lowest performer, but this still means an excellent 113.3 per cent return in a market with low risk relative to emerging market standards.
Over five and nine years, there have been some remarkable outperformers, but these are divided fairly evenly between Africa and the Brics. Over nine years, Russia has returned 4514.1 per cent, compared with 2427.9 per cent for second top performer Nigeria. But over five years, Egypt has returned 1404.3 per cent, compared with 555.8 per cent for second-top performer India.
The path African countries trace towards these cumulative performance figures is also very different to the one traced by the Brics. As indicated by the five and nine year indices, African and Bric nations attain peak levels of development at very different times to one another, producing a more stable effect together, rather than separately.
That is not to understate the risks of investing in Africa. The warning issued by New Star for its Heart of Africa fund is a prime example: "This fund is high risk and therefore only suitable for investors who are able to bear the loss of all or part of their capital investment. Many sub-Saharan African markets are small, have low liquidity and may demonstrate significant price volatility, particularly when compared with more developed markets. As a result, the fund is likely to be more volatile than other funds that invest in more developed regions. Some of these countries may have relatively unstable governments and economies based on only a few industries. Many emerging countries do not have well-developed regulatory systems, and disclosure standards may be less stringent than those of developed countries. The risks of expropriation, nationalisation and social, political and economic instability are greater in emerging countries than in more developed countries."
Funds such as New Star's, however, have a huge area to invest in and comparatively few stocks to select, so although Africa may undoubtedly be risky from a top-down level, it is possible to find companies that display little political risk and great economic opportunity on a bottom-up basis.
Strong potential
Managers currently see South Africa as a real source of potential. Although the S&P/ICFG South Africa index has returned 623.1 per cent over nine years, compared with China's 390.9 per cent return, it has underperformed the Brics over three and five years and some now see valuations as attractively low, with a better political risk profile than others, such as Kenya.
Mark Hammond, investment director on the Fidelity Emerging Europe, Middle East and Africa fund, says Fidelity does not currently permit the fund to invest directly in any sub-Saharan stocks outside South Africa, although it has invested in Nigeria through an alternative mechanism. This apparently pessimistic view on sub-Saharan Africa is actually confounded by the fund's extraordinary bullishness on South Africa itself, in which it has invested 44.9 per cent of its portfolio.
Mr Hammond says the fund's manager Nick Price has found many more bargains in South Africa than in any other country in which he can invest, particularly in platinum-related stocks, which constitute 12-13 per cent of the fund. Constrained platinum supply and rising demand have focused managers' minds on the South African markets, where Graham Birch, head of natural resources at BlackRock Merrill LynchInvestment Managers, has also been making his mark.
Despite the global natural resources boom, which has seen big players, such as China, invest heavily in the region, managers have been finding an array of profitable stocks in other sectors. Nick Clay, manager of the Newton Managed fund, a global vehicle with a UK weighting of at least 50 per cent, says he has natural resources exposure through Anglo American and Xstrata - two of his top 10 holdings. He has, however, also gained exposure to financials through Standard Chartered Bank, which has a good deal of African business.
Mr Clay says some of the weaknesses of South Africa and the rest of the region have turned into potential opportunities for business. The desperate need for electricity in South Africa favours construction companies with utility expertise, such as Group Five. Poor landline infrastructure and retail banking communications have boosted mobile telecommunications companies such as Millicom and MTN, which has its own back-up batteries in case of power shortages.
"As with all our African investments we look for the long-term structural growth story," Mr Clay observes. He also uses in-house Newton analysts to assess companies' corporate governance and social-responsibility characteristics, not because his fund is an SRI vehicle, but because the details help expose potential risks. Mr Clay says he tends to invest in South Africa as it is a more transparent market.
William Calvert, manager of the Axa Framlington Emerging Markets fund, says in South Africa and elsewhere in the continent, investors need to be focused to make the most of opportunities. He missed out on the spectacular growth story in Nigerian banks because valuations became very expensive very quickly, although his fund currently has 4.5 per cent in South Africa and roughly 3 per cent in Egypt.
Nigeria, Egypt and South Africa are also the most important African stories in Peter Eerdmans' Investec Emerging Markets Debt fund, although the fund has additional investments in Ghana. Mr Eerdmans says South Africa is the most developed African country, from a debt perspective, as its bonds have a wide variety of maturity dates and the derivatives market is relatively mature. "It is probably one of the most liquid markets," he says. "You can hedge and unhedge any bond investments."
As he invests in Africa within a diversified emerging markets debt vehicle, Mr Eerdmans can also lower his exposure to certain African countries if he wishes to. For instance, he has cut his exposure to longer-dated futures in South Africa as longer-dated bonds now typically have lower interest rates than shorter-dated bonds, which is a strong indicator of an upcoming economic slowdown. In the meantime, holding government debt in Nigeria and Egypt enables him to capture the regions' growth stories with greatly reduced risk.
Unlike African equities, however, which have attracted a recent wave of UK retail money, Mr Eerdmans does not believe the African debt market is ready for a specialist retail fund, although he does not rule out Investec Asset Management launching one in the future.
Nick Rice is features and supplements writer at Investment Adviser
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Document INVADV0020080222e42i00020
Background Notes : Chad (02/08)
6,048 words

15 February 2008

State Department Press Releases And Documents

STDP

English

Copyright (c) 2008 Federal Information & News Dispatch, Inc.
State Department Press Release
Background Notes : Chad (02/08)
flag of Chad: three equal vertical bands of blue, yellow, and red, with blue on the hoist side.
PROFILE
OFFICIAL NAME:
Republic of Chad
Geography
Area: 1,284,634 sq. km. (496,000 sq. mi.); about twice the size of Texas.
Cities: Capital--N'Djamena (pop. 1 million est.). Other major cities--Moundou, Abeche, Sarh.
Terrain: Desert, mountainous north, large arid central plain, fertile lowlands in extreme southern regions.
Climate: Northern desert--very dry throughout the year; central plain--hot and dry, with brief rainy season mid-June to mid-September; southern lowlands--warm and more humid with seasonal rains from late May to early October.
People
Nationality: Noun and adjective--Chadian(s).
Population (July 2007 est.): 10,800,000. Annual growth rate (2007 est.): 2.32%.
Density: 6.6 per sq. km. (17 per sq. mi.).
Ethnic groups: 200 distinct groups. In the north and center, Gorane (Toubou, Daza, Kreda), Zaghawa, Kanembou, Ouaddai, Arabs, Baguirmi, Hadjerai, Fulbe, Kotoko, Hausa, Boulala, and Maba, most of whom are Muslim. In the south, Sara (Ngambaye, Mbaye, Goulaye), Moudang, Moussei, Massa, most of whom are Christian or animist. About 1,000 French citizens live in Chad.
Religions: Muslim 51%, Christian 35%, animist 7%, other indigenous beliefs 7%.
Languages: French and Arabic (official); Sara (in the south), more than 120 indigenous Chadian languages and dialects.
Education: Years compulsory--6. Attendance--primary school 68% (1998); secondary school 5.5% (1995); higher education n/a. Literacy (2003 est.)--48%.
Health: Life expectancy (2007 est.)--47.2 yrs. Infant mortality rate (2007 est.)--10.2%. Work force (approximately 48% of population): Agriculture--more than 80%; largely subsistence agriculture.
Government
Type: Republic.
Independence: August 11, 1960 (from France).
Branches: Executive--president (head of state), prime minister, Council of Ministers. Legislative--National Assembly (unicameral). Judicial--Supreme Court; Court of Appeals; criminal courts; magistrate courts president (head of state, president of the council of ministers), council of ministers.
Major political parties: About 60, of which Patriotic Salvation Movement (MPS) is dominant. Other major parties include the Federation Action for the Republic (FAR); Party for Liberty and Development (PLD); Rally for Development and Progress (RNDP); Union for Democracy and the Republic (UDR); National Union for Development and Renewal (UNDR); Rally for Democracy and Progress (RDP); Viva Rally for Development and Progress, or Viva RNDP.
Suffrage: Universal over 18. Administrative subdivisions: 18 regions.
Economy
GDP, current prices (2007 est.): $6.426 billion.
Natural resources: Petroleum, natron (sodium carbonate), kaolin, gold, bauxite, tin, tungsten, titanium, iron ore. Agriculture (2006 est., 32.5% of GDP): Products--cotton, gum arabic, livestock, fish, peanuts, millet, sorghum, rice, sweet potatoes, cassava, dates, manioc. Arable land--30%.
Industry (2006 est., 26.6% of GDP): Types--meat-packing, beer brewing, soap, cigarettes, construction materials, natron mining, soft-drink bottling.
Services (2006 est.): 40.8% of GDP.
Trade: Exports--$4,219 million (f.o.b., 2007 est.): oil, cotton, livestock, gum arabic. Major markets (1999)--Portugal, Germany, Thailand, Costa Rica, South Africa, France, Nigeria, Cameroon. Imports--$1,157.3 million (f.o.b., 2007 est.): petroleum products, machinery and transportation equipment, foodstuffs, industrial goods, textiles. Major suppliers (2004)--U.S., France, Cameroon, Nigeria.
Central government budget (2006 est.): Revenues--$617.3 million.
Expenditures--$877.6 million.
Defense (2002): $31 million.
National holiday: Independence Day, August 11. Fiscal year: Calendar year.
U.S. aid received (FY 2007): Total USAID and State humanitarian assistance to Chad--$19,970,000. Economic, food relief--$238 million from all sources (including $30 million committed by African Development Bank).
GEOGRAPHY
Chad is a landlocked country in north central Africa measuring 1,284,000 square kilometers (496,000 sq. mi.), roughly three times the size of California. Most of its ethnically and linguistically diverse population lives in the south, with densities ranging from 54 persons per square kilometers in the Logone River basin to 0.1 persons in the northern B.E.T. desert region, which is larger than France. The capital city of N'Djamena, situated at the confluence of the Chari and Logone Rivers, is cosmopolitan in nature, with a current population nearing one million people.
Chad has four bioclimatic zones. The northernmost Saharan zone averages less than 200 mm (8") of rainfall annually. The sparse human population is largely nomadic, with some livestock, mostly small ruminants and camels. The central Sahelian zone receives between 200 and 600 mm (24") rainfall and has vegetation ranging from grass/shrub steppe to thorny, open savanna. The southern zone, often referred to as the Sudanian zone, receives between 600 and 1,000 mm (39"), with woodland savanna and deciduous forests for vegetation. Rainfall in the Guinea zone, located in Chad's southwestern tip, ranges between 1,000 and 1,200 mm (47").
The country's topography is generally flat, with the elevation gradually rising as one moves north and east away from Lake Chad. The highest point in Chad is Emi Koussi, a mountain that rises 3,100 meters (10,200 ft.) in the northern Tibesti Mountains. The Ennedi Plateau and the Ouadda highlands in the east complete the image of a gradually sloping basin, which descends toward Lake Chad. There also are central highlands in the Guera region rising to 1,500 meters (4,900 ft.).
Lake Chad is the second-largest lake in West Africa and is one of the most important wetlands on the continent. Home to 120 species of fish and at least that many species of birds, the lake has shrunk dramatically in the last four decades due to the increased water use and low rainfall. Bordered by Chad, Niger, Nigeria, and Cameroon, Lake Chad currently covers only 1,350 square kilometers, down from 25,000 square kilometers in 1963. The Chari and Logone Rivers, both of which originate in the Central African Republic and flow northward, provide most of the water entering Lake Chad.
PEOPLE
There are more than 200 ethnic groups in Chad. Those in the north and east are generally Muslim; most southerners are Christians or animists. Through their long religious and commercial relationships with Sudan and Egypt, many of the peoples in Chad's eastern and central regions have become more or less Arabized, speaking Arabic and engaging in many other Arab cultural practices as well. More than three-quarters of the Chadian population is rural. Near the eastern border there are over 280,000 refugees and 180,000 displaced persons caused mostly by spillover from the Darfur crisis.
HISTORY
Chad has a long and rich history. A humanoid skull found in Borkou was dated to be more than 3 million years old. Because in ancient times the Saharan area was not totally arid, Chad's population was more evenly distributed than it is today. For example, 7,000 years ago, the north central basin, now in the Sahara, was still filled with water, and people lived and farmed around its shores. Cliff paintings in Borkou and Ennedi depict elephants, rhinoceroses, giraffes, cattle, and camels; only camels survive there today. The region has been known to traders and geographers since the late Middle Ages. Since then, Chad has served as a crossroads for the Muslim peoples of the desert and savanna regions, and the animist Bantu tribes of the tropical forests.
Sao people lived along the Chari River for thousands of years, but their relatively weak chiefdoms were overtaken by the powerful chiefs of what were to become the Kanem-Bornu and Baguirmi kingdoms. At their peak, these two kingdoms and the kingdom of Ouaddai controlled a good part of what is now Chad, as well as parts of Nigeria and Sudan. From 1500 to 1900, Arab slave raids were widespread. The French first penetrated Chad in 1891, establishing their authority through military expeditions primarily against the Muslim kingdoms. The first major colonial battle for Chad was fought in 1900 between the French Major Lamy and the African leader Rabah, both of whom were killed in the battle. Although the French won that battle, they did not declare the territory pacified until 1911; armed clashes between colonial troops and local bands continued for many years thereafter.
In 1905, administrative responsibility for Chad was placed under a governor general stationed at Brazzaville in what is now Congo. Although Chad joined the French colonies of Gabon, Oubangui-Charo, and Moyen Congo to form the Federation of French Equatorial Africa (AEF) in 1910, it did not have colonial status until 1920. The northern region of Chad was occupied by the French in 1914. In 1959, the territory of French Equatorial Africa was dissolved, and four states--Gabon, the Central African Republic, Congo (Brazzaville), and Chad--became autonomous members of the French Community. On August 11, 1960 Chad became an independent nation under its first president, Francois Tombalbaye.
A long civil war began as a tax revolt in 1965 and soon set the Muslim north and east against the southern-led government. Even with the help of French combat forces, the Tombalbaye government was never able to quell the insurgency. Tombalbaye's rule became more irrational and brutal, leading the military to carry out a coup in 1975 and to install Gen. Felix Malloum, a southerner, as head of state. In 1978, Malloum's government was broadened to include more northerners. Internal dissent within the government led the northern prime minister, Hissein Habre, to send his forces against the national army in the capital city of N'Djamena in February 1979. The resulting civil war amongst the 11 emergent factions was so widespread that it rendered the central government largely irrelevant. At that point, other African governments decided to intervene.
A series of four international conferences held first under Nigerian and then Organization of African Unity (OAU) sponsorship attempted to bring the Chadian factions together. At the fourth conference, held in Lagos, Nigeria, in August 1979, the Lagos accord was signed. This accord established a transitional government pending national elections. In November 1979, the National Union Transition Government (GUNT) was created with a mandate to govern for 18 months. Goukouni Oueddei, a northerner, was named President; Colonel Kamougue, a southerner, Vice President; and Habre, Minister of Defense. This coalition proved fragile; in January 1980, fighting broke out again between Goukouni's and Habre's forces. With assistance from Libya, Goukouni regained control of the capital and other urban centers by year's end. However, Goukouni's January 1981 statement that Chad and Libya had agreed to work for the realization of complete unity between the two countries generated intense international pressure and Goukouni's subsequent call for the complete withdrawal of external forces. Libya's partial withdrawal to the Aozou Strip in northern Chad cleared the way for Habre's forces to enter N'Djamena in June. French troops and an OAU peacekeeping force of 3,500 Nigerian, Senegalese, and Zairian troops (partially funded by the United States) remained neutral during the conflict.
Habre continued to face armed opposition on various fronts, and was brutal in his repression of suspected opponents, massacring and torturing many during his rule. In the summer of 1983, GUNT forces launched an offensive against government positions in northern and eastern Chad with Libyan support. In response to Libya's direct intervention, French and Zairian forces intervened to defend Habre, pushing Libyan and rebel forces north of the 16th parallel. In September 1984, the French and the Libyan governments announced an agreement for the mutual withdrawal of their forces from Chad. By the end of the year, all French and Zairian troops were withdrawn. Libya did not honor the withdrawal accord, and its forces continued to occupy the northern third of Chad.
Southern rebel commando groups (CODO) in southern Chad were broken up by government massacres in 1984. In 1985 Habre briefly reconciled with some of his most powerful opponents, including the Chadian Democratic Front and the Coordinating Action Committee of the Democratic Revolutionary Council. Goukouni also began to rally toward Habre, and with his support Habre successfully expelled Libyan forces from most of Chadian territory. A cease-fire between Chad and Libya held from 1987 to 1988, and negotiations over the next several years led to the 1994 International Court of Justice decision granting Chad sovereignty over the Aouzou strip, effectively ending Libyan occupation.
However, rivalry between Hadjerai, Zaghawa, and Gorane groups within the government grew in the late 1980s. In April 1989, Idriss Deby, one of Habre's leading generals and a Zaghawa, defected and fled to Darfur in Sudan, from which he mounted a Zaghawa-supported series of attacks on Habre (a Gorane). In December 1990, with Libyan assistance and no opposition from French troops stationed in Chad, Deby's forces successfully marched on N'Djamena. After 3 months of provisional government, Deby's Patriotic Salvation Movement (MPS) approved a national charter on February 28, 1991, with Deby as president.
In the following 2 years, Deby faced at least two coup attempts. Government forces clashed violently with rebel forces (including the Movement for Democracy and Development, MDD, National Revival Committee for Peace and Democracy (CSNPD), Chadian national Front (FNT), and the Western Armed Forces, FAO) near Lake Chad and in southern regions of the country. Earlier French demands for the country to hold a national conference resulted in the gathering of 750 delegates representing political parties (legalized in 1992), the government, trade unions, and the army to discuss creation of a pluralist democratic regime.
Unrest continued, however, sparked in part by large-scale killings of civilians in southern Chad. The CSNPD, led by Kette Moise and other southern groups, entered into a peace agreement with government forces in 1994, which later broke down. Two new groups, the Armed Forces for a Federal Republic (FARF) led by former Kette ally Laokein Barde and the Democratic Front for Renewal (FDR), and a reformulated MDD clashed with government forces 1994-95.
Talks with political opponents in early 1996 did not go well, but Deby announced his intent to hold presidential elections in June. Deby won the country's first multi-party presidential elections with support in the second round from opposition leader Kebzabo, defeating General Kamougue (leader of the 1975 coup against Tombalbaye). Deby's MPS party won 63 of 125 seats in the January 1997 legislative elections. International observers noted numerous serious irregularities in presidential and legislative election proceedings.
By mid-1997 the government signed peace deals with FARF and the MDD leadership and succeeded in cutting off the groups from their rear bases in the Central African Republic and Cameroon. Agreements also were struck with rebels from the National Front of Chad (FNT) and Movement for Social Justice and Democracy in October 1997. However, peace was short-lived, as FARF rebels clashed with government soldiers, finally surrendering to government forces in May 1998. Barde was killed in the fighting, as were hundreds of other southerners, most civilians.
From 1998 to 2003, Chadian Movement for Justice and Democracy (MDJT) rebels skirmished periodically with government troops in the Tibesti region, resulting in hundreds of civilian, government, and rebel casualties, but little ground won or lost. Following an accord with the government in 2003, several hundred rebels rejoined the Chadian Army. Armed remnants of the MDJT linger in the Tibesti region, but no active armed opposition has emerged in other parts of Chad.
In May 2001, Deby won a flawed 63% first-round victory in presidential elections after legislative elections were postponed until spring 2002. Six opposition leaders were arrested (twice), and one opposition party activist was killed following the announcement of election results. However, despite claims of government corruption, favoritism of Zaghawas, and security forces abuses, opposition party and labor union calls for general strikes and more active demonstrations against the government were unsuccessful.
In May 2004, the National Assembly voted in favor of an amendment to the Constitution that would allow President Deby to run again. The amendment was approved in a national referendum June 2005 and abolished presidential term limits. In the last 3 years, Deby faced at least three coup attempts. In April 2006, the capital city of N'djamena was attacked by the United Front for Democratic Change--which was led by the Tama ethnic group--coordinating with another Chadian rebel organization from President Deby's Zaghawa ethnic group. The government put down the attacks. On May 3, 2006 Deby was elected to his third presidential term with a substantial majority, according to Chadian election officials. Provisional figures showed Deby receiving 77.6% of the vote. More than 60% of Chad's 5.8 million registered voters cast ballots. Frequent bouts of fighting between rebel groups characterized 2006. On October 26, 2007 a peace agreement was signed by four Chadian rebel groups and the Government of Chad. Hosted by Libyan leader Muammar Gaddafi, the talks took place in the Libyan city of Sirte. (See Foreign Relations for information about the 2008 rebel attacks.)
GOVERNMENT AND POLITICAL CONDITIONS
The constitutional basis for the government is the 1996 Constitution. A strong executive branch headed by the president dominates the Chadian political system. Following his December 1990 military overthrow of Hissein Habre, Idriss Deby in the mid-1990s gradually restored basic functions of government and entered into agreements with the World Bank and the International Monetary Fund (IMF) intended to carry out substantial economic reforms, including the Doba Basin oil extraction project.
The president has the power to appoint the prime minister and the Council of State (or cabinet), and exercises considerable influence over appointments of judges, generals, provincial officials and heads of Chad's parastatal firms. In cases of grave and immediate threat, the president, in consultation with the National Assembly President and Council of State, may declare a state of emergency. Most of the Deby's key advisers are members of the Zaghawa clan, although some southern and opposition personalities are represented in his government.
According to the 1996 Constitution, National Assembly deputies are elected by universal suffrage for 4-year terms. Parliamentary elections were last held in April 2002, with President Deby's MPS party winning a large majority. The Assembly holds regular sessions twice a year, starting in March and October, and can hold special sessions as necessary and called by the prime minister. Deputies elect a president of the National Assembly every 2 years. Assembly deputies or members of the executive branch may introduce legislation; once passed by the Assembly, the president must take action to either sign or reject the law within 15 days. The National Assembly must approve the prime minister's plan of government and may force the prime minister to resign through a majority vote of no confidence. However, if the National Assembly rejects the executive branch's program twice in one year, the president may disband the Assembly and call for new legislative elections. In practice, the president exercises considerable influence over the National Assembly through the MPS party structure.
Despite the Constitution's guarantee of judicial independence from the executive branch, the president names most key judicial officials. The Supreme Court is made up of a chief justice, named by the president, and 15 councilors chosen by the president and National Assembly; appointments are for life. The Constitutional Council, with nine judges elected to 9-year terms, has the power to review all legislation, treaties and international agreements prior to their adoption. The Constitution recognizes customary and traditional law in locales where it is recognized and to the extent it does not interfere with public order or constitutional guarantees of equality for all citizens.
Principal Government Officials
President--Idriss Deby
Prime Minister--Nouradine Delwa Kassire Koumakoye
Minister of Foreign Affairs and African Integration--Ahmad Allam-mi
President of the National Assembly--Nassour Guelengdouksia Ouaidou
Ambassador to U.S.--Mahamat Adam Bechir
The Republic of Chad maintains an embassy in the United States at 2002 R Street, NW, Washington, DC 20009 (tel: [phone]; fax [phone]).
DEFENSE
Under President Hissein Habre, members of Gourane, Zaghawa, Kanembou, Hadjerai, and Massa ethnic groups dominated the military. Idriss Deby, a member of the minority Zaghawa-related Bidyate clan and a top military commander, revolted and fled to Sudan, taking with him many Zaghawa and Hadjerai soldiers in 1989. The forces that Deby led into N'Djamena on December 1, 1990 to oust President Habre were mainly Zaghawa (including a large number of Sudanese), many of whom were recruited while Deby was in the bush. Deby's coalition also included a small number of Hadjerais and southerners.
Chad's armed forces numbered about 36,000 at the end of the Habre regime but swelled to an estimated 50,000 in the early days of Idriss Deby. With French support, a reorganization of the armed forces was initiated early in 1991 with the goal of reducing the size of the armed forces. An essential element of this effort was to make the ethnic composition of the armed forces reflective of the country as a whole. While the military's size has been reduced to approximately 25,000 soldiers, leadership positions are still dominated by the Zaghawa.
Following Idriss Deby's rise to power, Habre loyalists continued to fight government troops and rob civilians around Lake Chad. In the mid- and late-1990s, a rebellion in the south by the FARF delayed the promised oil development until crushed by government forces. Most recently, the Movement for Democracy and Justice in Tchad (MDJT) launched the most serious threat to Deby's hold on power, but little progress was ever made on either side. In January 2002, the government and the MDJT signed a formal peace accord. Although remnants are still present in the North, active rebellion there has been negligible since late 2003.
Long, porous borders continue to render Chad vulnerable to incursions. In March 2004, the Algerian terrorist organization, the Salafist Group for Preaching and Combat (GSPC), strayed into Chadian territory, where they were engaged by Chadian armed forces. Since the 2003 outbreak of the Darfur crisis in Sudan, armed militias have occasionally crossed into Chad, resulting in small-scale skirmishes. In response to such ongoing threats Chad has joined in the Pan Sahel Initiative (PSI), a U.S. Government military-to-military assistance program which helps participant countries counter terrorist operations, border incursions, and trafficking of people, illicit materials, and other goods. Initial PSI training was completed in Chad in July 2004.
ECONOMY
In 2007, Chad's GDP was estimated at approximately $6.426 billion. Oil, cotton, cattle, and gum arabic are Chad's major exports.
The effects on foreign