Almost five centuries as a Portuguese colony came to a close with independence in 1975. Large-scale emigration by whites, economic dependence on South Africa, a severe drought, and a prolonged civil war hindered the country's development. The ruling party formally abandoned Marxism in 1989, and a new constitution the following year provided for multiparty elections and a free market economy. A UN-negotiated peace agreement with rebel forces ended the fighting in 1992. Heavy flooding in both 1999 and 2000 severely hurt the economy. Political stability and sound economic policies have encouraged recent foreign investment.

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