Gazeteer of Chad

Background
Chad, part of France's African holdings until 1960, endured three decades of ethnic warfare as well as invasions by Libya before a semblance of peace was finally restored in 1990. The government eventually suppressed or came to terms with most political-military groups, settled a territorial dispute with Libya on terms favorable to Chad, drafted a democratic constitution, and held multiparty presidential elections in 1996 and 1997. In 1998, a new rebellion broke out in northern Chad, which sporadically flares up despite two peace agreements signed in 2002 and 2003 between the government and the rebels. Despite movement toward democratic reform, power remains in the hands of a northern ethnic oligarchy. more

Economy
Chad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline projects that began in 2000. Over 80% of Chad's population relies on subsistence farming and stock raising for its livelihood. Cotton, cattle, and gum arabic provide the bulk of Chad's export earnings, but Chad will begin to export oil in 2004. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves estimated at 1 billion barrels in southern Chad. Oil production came on stream in late 2003.