Eritrea
Type of Government: Transitional
Independence: 1993 from Ethiopia
Head of State: President Isaias Afworki (since June 8, 1993)
2007/2008 UN Development Index ranking (out of 177 countries): 157
2007 TI Corruption Perception Index (out of 179): 111
Political Development: A 30-year struggle for independence ended in 1991 with Eritrean rebels defeating governmental forces; independence was overwhelmingly approved in a 1993 referendum. A two-and-a-half-year border war with Ethiopia that erupted in 1998 ended under UN auspices in December 2000. A border dispute continues and in November 2006, the international commission informed Eritrea and Ethiopia they had one year to demarcate the border or the border demarcation would be based on coordinates. The dispute continues. Eritrea has also exhibited a poor human rights record and has shown extensive censorship.
Adult HIV Rate: 2.7%
Life Expectancy: 59.55
GDP: $1.244 billion
Inflation: 15%
Poverty: 50%
Petroleum: N/A
Leading Export Partner: Italy (26.7%)
Economic Note: Eritrea has faced the economic problems of a small, desperately poor country, accentuated by the recent implementation of restrictive economic policies. Eritrea has a command economy under the control of the sole political party, the People’s Front for Democracy and Justice (PFDJ). Like the economies of many African nations, the economy is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. In January 2005, the government essentially banned all imports. The government strictly controls the use of foreign currency, limiting access and availability. Few private enterprises remain in Eritrea. Eritrea’s economy is heavily dependent on taxes paid by members of the diaspora.
