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This is the first report on Angola under the Country Advisor Agreement between the Norwegian Agency for Development Co-operation (NORAD), the Chr. Michelsen Institute (CMI) and the Nordic Consulting Group (NCG). The report consists of two parts. Part I comprises an assessment and a synthesis of basic information regarding economic, political and social developments in the country. It devotes particular attention to the current politico-military situation in which UNITA seems to be suffering decisive military defeat, and the options for using Angolas vast oil income for economic and social development in a situation where relative peace appear promising. Part II gives an overview over the system of tertiary education and existing social science capacity in Angola. It is argued that the lack of updated and relevant information about socio-economic conditions in the country will be a major constraint in the planning and implementation of development policies and programmes.