Seychelles: A president in paradise
BEST known as a destination for honeymooners in search of perfect white beaches and swaying palms, the Seychelles islands rarely make any sort of headlines. Few tourists would even have noticed the presidential election on July 30th, in which James Michel, leader of the Seychelles Peoples Progressive Front, was returned with 54% of the ballot. For Mr. Michel, it was the first time he had faced the islands 62,000odd voters, having been promoted from vicepresident two years ago by his predecessor, Albert René, who had ruled the islands for 27 years since taking power in a coup in 1977.
To the casual eye, Seychelles seems both fortunate and wellgoverned. The 115 islands, most of them uninhabited, cover a mere 445 square kilometers (175 square miles) of the Indian Ocean, north of Madagascar, and enjoy several advantages over most of the rest of Africa. The weather is never extreme. There is no malaria. The islanders have free education and health care. Their multiracial society is pretty harmonious. With GDP at around $8,000 a head, there is almost no discernible poverty.
But this standard of living has come at a cost: the IMF says its public debt is too high and may be unsustainable. Mr. Michels main opposition, the Seychelles National Party, which scored 46% in the elections, claims that Seychelles, per person, is the worlds most indebted country; with some $590m of external debt for just 82,000 people, it is certainly one of them. A black market in foreign currency already exists as speculation persists that the government, unable to meet its obligations, may be forced to devalue. Basic consumer goods sometimes run out. If, as the IMF predicts, GDP falls by over 1% this year, Mr. Michel may find his next five years in power more testing than he had hoped.
The country needs more ways of making money. In the cold war, it was easy. The Seychelles played each side off against the other, remaining a
