It has a massive foreign debt and an economy which relies heavily on foreign aid.

Compounding this, the country experienced a bitter civil war in the late 1990s in which thousands were killed, wounded and displaced.

OVERVIEW

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Formerly Portuguese Guinea, Guinea-Bissau won independence from Portugal in 1974 after a long struggle spearheaded by the left-wing African Party for the Independence of Guinea and Cape Verde (PAIGC). For the next six years post-independence leader Luis Cabral presided over a command economy.

AT-A-GLANCE Politics: President Joao Bernardo Vieira's current term began when he won elections in 2005. He seized power in 1980 and was ousted in 1999. Country's most recent (bloodless) coup was in 2003 Economy: Political instability and mismanagement have undermined the economy. Country is dependent on primary crops - mainly cashew nuts - and subsistence agriculture. Government often struggles to pay wages. International: The army has clashed with Casamance separatists from neighbouring Senegal, prompting thousands of civilians to flee the border area in 2006 Timeline

In 1980 he was overthrown by his army chief, Joao Vieira, who accused him of corruption and mismanagement. Mr Vieira led the country towards a market economy and a multi-party system, but was accused of crony capitalism, corruption and autocracy. In 1994 he was chosen as president in Guinea-Bissau's first free elections.

Four years later he was ousted after he dismissed his army chief, thereby triggering a crippling civil war. This eventually ended after foreign mediation led to a truce, policed by West African peacekeepers, and free elections in January 2000.

The victor in the poll, Kumba Yala, was ousted in a bloodless military coup in September 2003. The military chief who led the coup said the move was, in part, a response to the worsening economic and political situation.

The country's vital cashew nut crop provides a modest living for most of Guinea-Bissau's farmers and is the main source of foreign exchange.

FACTS

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• Full name: The Republic of Guinea-Bissau
• Population: 1.6 million (UN, 2005)
• Capital: Bissau
• Area: 36,125 sq km (13,948 sq miles)
• Major languages: Portuguese, Crioulo, African languages
• Major religions: Indigenous beliefs, Islam, Christianity Life expectancy: 43 years (men), 46 years (women) (UN)
• Monetary unit: 1 CFA (Communaute Financiere Africaine) = 100 centimes
• Main exports: Cashew nuts, shrimp, peanuts, palm kernels, sawn timber
• GNI per capita: US $180 (World Bank, 2006)
• Internet domain: .gw
• International dialling code: +245

LEADERS

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President: Joao Bernardo Vieira

Elections in June 2005, intended to cap years of coups and military dictatorships, marked the end of a caretaker government that took over after former president Kumba Yala was deposed in 2003.

Former military ruler and recent exile Joao Bernardo Vieira was declared the winner of the poll. Election officials said he won 52% of a run-off vote, beating his rival Malam Bacai Sanha.

Ex-military ruler Joao Bernardo Vieira

Rival supporters clashed in the capital over the initial results and Mr Sanha's party alleged fraud. But EU observers declared the poll to be free and fair and the president took office in October, promising to foster reconciliation and national unity.

Mr Vieira returned to Guinea-Bissau in April 2005 after six years of exile in Portugal. He said he had come back as a "soldier of peace".

He ran as an independent, campaigning among the young and unemployed.

Mr Vieira, sometimes known as "Nino", ruled Guinea-Bissau for 19 years after taking power in a military coup in 1980. He liberalised markets and introduced multi-party politics; however, critics accused him of human rights abuses.

Having trained in China, he was a guerrilla commander in the country's campaign for independence. He led the armed forces after independence in 1974.