IV.  Political Environment

-Bilateral Relationship

The United States has a close and cooperative bilateral relationship with
Suriname.  The United States and U.S. investors have a long history of
involvement in Suriname, dating back to the early part of this century.

-Major Political Issues Affecting the Business Climate

The government of Suriname is publicly committed to implementing a
structural adjustment plan.  Important elements of this plan, especially
the proposed new investment law, could have a positive impact on the
business climate.  The government of Suriname welcomes foreign
investment.

-The Surinamese Political System

Suriname is a democracy governed by a president, assisted by cabinet
ministers, a parliament or national assembly, and an independent court
system.  The current government, headed by President Ronald Venetiaan
and Vice President Jules Ajodhia, is a coalition of four parties - the
Creole NPS, the Hindustani VHP, the Javanese KTPI, and the SPA labor
party.   The governing New Front coalition holds thirty seats in the 51-
seat National Assembly.

The Venetiaan/Ajodhia government was elected in 1991 to replace a
regime installed by the military following a bloodless coup on December
24, 1990.  Its five-year term will expire in 1996.  Suriname was
democratically governed from its independence from the Netherlands in
1975 to 1980.  A military regime ruled the country from 1980, when it came
to power through a coup, to 1987, when democratic elections were held.

Suriname's current government has moved effectively to establish
civilian control of the military establishment.  In May 1993, the president
appointed Col. Arthy Gorre military commander to replace Col. Desi
Bouterse, who had led both coups.  The new commander has emphasized
the military's subordination to civilian authority.  Efforts are underway
to improve military training and living standards, which had suffered
from neglect.  Military cooperation with the Netherlands and the United
States has been restored.  The Defense Minister has announced that he
intends to propose to the parliament a comprehensive law concerning the
military and its rights and responsibilities.

Former president and military commander Bouterse leads the National
Democratic Party (NDP), the largest opposition party in the National
Assembly.  A campaign he led in the fall of 1993 to force the resignation
of the government failed for lack of popular support.  Since then, while
continuing to criticize the government, he has expressed a willingness to
cooperate with it in addressing Suriname's economic problems.  The NDP
and several of the other opposition parties are expected to contest the
1996 elections strongly and to attract significant support.