Eritrea

Eritrea is located in the Horn of Africa and is bordered on the northeast and east by the Red Sea, on the west and northwest by Sudan, on the south by Ethiopia, and on the southeast by Djibouti. The country has a high central plateau that varies from 1,800 to 3,000 meters (6,000-10,000 ft.) above sea level. A coastal plain, western lowlands, and some 300 islands comprise the remainder of Eritrea's land mass. Eritrea has no year-round rivers.

The climate is temperate in the mountains and hot in the lowlands. Asmara, the capital, is about 2,300 meters (7,500 ft.) above sea level. Maximum temperature is 26^o C (80^o F). The weather is usually sunny and dry, with the short or belg rains occurring February-April and the big or meher rains beginning in late June and ending in mid-September.

Eritrea's population comprises nine ethnic groups, most of which speak Semitic or Cushitic languages. The Tigrinya and Tigre make up four-fifths of the population and speak different, but related and somewhat mutually intelligible, Semitic languages. In general, most of the Christians live in the highlands, while Muslims and adherents of traditional beliefs live in the lowland regions. Tigrinya and Arabic are the most frequently used languages for commercial and official transactions, but English is widely spoken and is the language used for secondary and university education.

Eritrea officially celebrated its independence on May 24, 1993, becoming the world's newest nation. Prior to Italian colonization in 1885, what is now Eritrea had been ruled by the various local or international powers that successively dominated the Red Sea region. In 1896, the Italians used Eritrea as a springboard for their disastrous attempt to conquer Ethiopia. Eritrea was placed under British military administration after the Italian surrender in World War II. In 1952, a UN resolution federating Eritrea with Ethiopia went into effect. The resolution ignored Eritrean pleas for independence but guaranteed Eritreans some democratic rights and a measure of autonomy. Almost immediately after the federation went into effect, however, these rights began to be abridged or violated.

In 1962, Emperor Haile Sellassie unilaterally dissolved the Eritrean parliament and annexed the country, sparking the Eritrean fight for independence that continued after Haile Sellassie was ousted in a coup in 1974. The new Ethiopian Government, called the Derg, was a Marxist military junta led by strongman Mengistu Haile Miriam.

During the 1960s, the Eritrean independence struggle was led by the Eritrean Liberation Front (ELF). In 1970, members of the group had a falling out, and a group broke away from the ELF and formed the Eritrean People's Liberation Front (EPLF). By the late 1970s, the EPLF had become the dominant armed Eritrean group fighting against the Ethiopian Government, and Isaias Afwerki had emerged as its leader. Much of the materiel used to combat Ethiopia was captured from the Ethiopian Army.

By 1977 the EPLF was poised to drive the Ethiopians out of Eritrea. That same year, however, a massive airlift of Soviet arms to Ethiopia enabled the Ethiopian Army to regain the initiative and forced the EPLF to retreat to the bush. Between 1978 and 1986, the Derg launched eight major offensives against the independence movement--all failed. In 1988, the EPLF captured Afabet, headquarters of the Ethiopian Army in northeastern Eritrea, prompting the Ethiopian Army to withdraw from its garrisons in Eritrea's western lowlands. EPLF fighters then moved into position around Keren, Eritrea's second-largest city. Meanwhile, other dissident movements were making headway throughout Ethiopia. At the end of the 1980s, the Soviet Union informed Mengistu that it would not be renewing its defense and cooperation agreement. With the withdrawal of Soviet support and supplies, the Ethiopian Army's morale plummeted, and the EPLF--along with other Ethiopian rebel forces--began to advance on Ethiopian positions.

The United States played a facilitative role in the peace talks in Washington during the months leading up to the May 1991 fall of the Mengistu regime. In mid-May, Mengistu resigned as head of the Ethiopian Government and went into exile in Zimbabwe, leaving a caretaker government in Addis Ababa. Having defeated the Ethiopian forces in Eritrea, EPLF troops took control of their homeland. Later that month, the United States chaired talks in London to formalize the end of the war. These talks were attended by the four major combatant groups, including the EPLF.

A high-level U.S. delegation also was present in Addis Ababa for the July 1-5, 1991 conference that established a transitional government in Ethiopia. The EPLF attended the July conference as an observer and held talks with the new transitional government regarding Eritrea's relationship to Ethiopia. The outcome of those talks was an agreement in which the Ethiopians recognized the right of the Eritreans to hold a referendum on independence.

Although some EPLF cadres at one time espoused a Marxist ideology, Soviet support for Mengistu had cooled their ardor. The fall of communist regimes in the former Soviet Union and the Eastern Bloc convinced them it was a failed system. The EPLF now says it is committed to establishing a democratic form of government and a free-market economy in Eritrea. The United States agreed to provide assistance to both Ethiopia and Eritrea, conditional on continued progress toward democracy and human rights.

In May 1991, the EPLF established the Provisional Government of Eritrea (PGE) to administer Eritrean affairs until a referendum was held on independence and a permanent government established. EPLF leader Isaias became the head of the PGE, and the EPLF Central Committee served as its legislative body.

On April 23-25, 1993, Eritreans voted overwhelmingly for independence from Ethiopia in a UN-monitored free and fair referendum. The Eritrean authorities declared Eritrea an independent state on April 27. The government was reorganized and after a national, freely contested election, the National Assembly, which chose Isaias as President of the PGE, was expanded to include both EPLF and non-EPLF members. The EPLF established itself as a political party, the People's Front for Democracy and Justice (PFDJ).

The Eritrean economy is largely based on agriculture, which employs 80% of the population but currently may contribute as little as 18% to GDP. Export crops include cotton, fruit, hides, and meat, but farmers are largely dependent on rain-fed agriculture, and growth in this and other sectors is hampered by lack of a dependable water supply. Worker remittances from abroad currently contribute 27% of GDP.

The Government of Eritrea states that it is committed to a market economy and privatization, and it has made development and economic recovery its priorities. Nevertheless, the government and the ruling PFDJ party play pervasive roles in the economy. The government has imposed an arbitrary and complex set of regulatory requirements that discourage investment from both foreign and domestic sources. The economy was devastated by war and the misguided policies of the Derg, which disrupted agriculture and industry. The more recent war with Ethiopia also has had a major, negative impact on the economy and further discouraged investment. Eritrea lost many valuable economic assets in particular during the last round of fighting in May-June 2000, when a significant portion of its territory in the agriculturally important west and south was occupied by Ethiopia. As a result of this last round of fighting, more than one million Eritreans were displaced. According to World Bank estimates, Eritreans also lost livestock worth some $225 million, and 55,000 homes worth $41 million were destroyed. Damage to public buildings, including hospitals, is estimated at $24 million. Much of the transportation and communications infrastructure remains outmoded and deteriorating. As a result, the government has sought international assistance for various development projects and has mobilized young Eritreans serving in the National Service to repair crumbling roads and dams.

Small businesses, such as restaurants, bars, Internet cafes, stores, auto repair shops, and crafts thrive in the Asmara area. A brewery, cigarette factory, small glass and plastics producers, several companies involved in making leather goods, and textile and sweater factories operate in the Asmara area. The textile and leather industries have made a partial recovery since independence. Most local industries rely on outmoded technology and suffer from a lack of capital investment.

In Massawa, the port has been rehabilitated. In addition, the government has begun to export fish from the Red Sea to markets in Europe and elsewhere. A newly constructed airport in Massawa capable of handling large jets could facilitate the export of high-value perishable seafood. Also in Massawa, in 2001, Seawater Farms Eritrea began to export shrimp to Europe and the Middle East. The farm is a joint venture between a group of international investors based in the United States and the Eritrean navy. It is an integrated project designed to grow shrimp, tilapia, and salicornia (a succulent that can be irrigated with seawater), and to foster the growth of mangrove wetlands. The project is expected to generate exports as well as employment opportunities for Eritreans. The investors also intend it to serve as the model for a new kind of sustainable, ecologically friendly, yet profitable operation.