IV. Political Environment Swaziland has a bilateral agreement with the United States with respect to the official American presence (USAID, and Peace Corps). However, there is no bilateral economic or commercial agreement in effect between the two countries. It is difficult if not impossible to discern political issues in Swaziland as separate from the explicit control and actions of the public authorities that are generally well disposed towards business and actively supportive of major business interests. Well entrenched business interests of long standing are in fact the basis on which both the political system in Swaziland and the more recent economic developments have been built. Both the political system and the economic development have led to a gap in living standards between the 30% of the population that has an active part in both the political system and the formal economy and the remainder of the society. This gap is widening and would by western reckoning be a potential source for political conflict even though at present there is no explicit evidence of this. Fortunately, there is no evidence of ethnic conflict in Swaziland. Swaziland is a dual monarchy and the King and Queen Mother have very extensive powers in all three branches of government. In the executive branch the ministers and many other officials hold their positions at the King's pleasure and the same applies de facto if not de jure in the judicial branch. The parliament is in part appointed by the King and elections for those parliamentary seats that the King does not fill directly are held at his pleasure - generally every five years. This past year saw a dramatic change in the nature of parliamentary election through the use of a secret ballot. Political parties are illegal. The few political movements afoot are often critical of the political climate and specific actions of the public authorities but not consistently enough to provide evidence of or basis for organized political activity. Clearly the King and Queen Mother do not act alone nor are utterly unchecked in their exercise of their extensive powers. What is not clear is the role of traditional advisory councils and the cabinet and their respective influence on the decisions of the monarchs.