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This is the third report on Angola under the Country Advisor Agreement between the Norwegian Agency for Development Cooperation (NORAD) and Chr. Michelsen Institute. The report consists of a part I synthesising and assessing existing information regarding political, economic and social developments in Angola, and a Part II focussing on development aid in a context of peace. This is done through contributions on the economy, the state and civil society by leading social scientists on Angola, originally presented at the seminar "Preparing for Peace. Workshop on Future Swedish and Norwegian Development Cooperation with Angola" hosted by CMI 8-9 April 2002.