DJIBOUTI

Republic of Djibouti

République de Djibouti Jumhouriyya Djibouti

CAPITAL: Djibouti

FLAG: A white triangle, with a five-pointed red star within, extends from the hoist; the remaining area has a broad light blue band over a broad light green band.

ANTHEM: No information available.

MONETARY UNIT: The Djibouti franc (dFr) of 100 centimes is the national currency. There are coins of 1, 2, 5, 10, 20, 50, 100, and 500 Djibouti francs, and notes of 500, 1000, 5000, and 10,000 Djibouti francs. dFr1 = $0.00563 (or $1 = dFr177.72) as of 2004.

WEIGHTS AND MEASURES: The metric system is in use.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; Independence Day, 27 June; Christmas Day, 25 December. Movable religious holidays are Milad an-Nabi, Laylat al-Miraj, 'Id al-Fitr, 'Id al-'Adha', and Muslim New Year (1st of Muharram).

TIME: 3 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Djibouti (formerly known as French Somaliland and then as the Territory of the Afars and the Issas) is situated on the east coast of Africa along the Bab al-Mandab, the strait that links the Red Sea with the Gulf of Aden. It is bordered by Eritrea to the n, Ethiopia n, w, and s, by Somalia on the se, and by the Bab al-Mandab, Gulf of Tadjoura, and Gulf of Aden on the e. Djibouti encompasses approximately 22,000 sq km (8,494 sq mi) and has a total boundary length of 830 km (516 mi), which includes a coastline of 314 km (195 mi). Comparatively, the area occupied by Djibouti is slightly smaller than the state of Massachusetts.

Djibouti's capital city, Djibouti, is located in the eastern part of the country.

TOPOGRAPHY

Originally formed by volcanic action that accompanied the uplifting and faulting of the East African shield and the Rift Valley system, Djibouti consists of a series of high, arid tablelands surrounding faults, within which are low plains. Many areas exhibit thick layers of lava flow. There are three principal regions: the coastal plain, less than 200 m (656 ft) above sea level; the mountains, averaging about 1,000 m (3,300 ft) above sea level; and the plateau behind the mountains, rising 300–1,500 m (984–4,921 ft). The highest point, Mt. Moussa Ali, rises to 2,028 m (6,654 ft) on the northern frontier. The saline Lake Assal, at 155 m (509 ft) below sea level, is the lowest point in Africa and the second-lowest in the world.

In general, the terrain is bare, dry, desolate, and marked by sharp cliffs, deep ravines, burning sands, and thorny shrubs. There is very little groundwater except in an area along the southern border with Somalia, and Djibouti is dependent on saline subterranean aquifers. Located above the meeting point of the Arabian and African tectonic plates, low magnitude earthquakes are common.

CLIMATE

The climate is torrid, and rainfall is sparse and erratic. During the hot season, from May to September, daytime temperatures in the capital average 31°c (87°f) and the northeastern monsoon blows. During the warm season, from October to April, average daytime temperatures moderate to 37°c (99°f). Humidity is high all year, but annual rainfall averages less than 13 cm (5 in).

FLORA AND FAUNA

Over 90% of the land in Djibouti is desert. On Mt. Goda, near Tadjoura, there are rare giant juniper trees, acacias, and wild olive trees. However, most of the vegetation is typical of the desert and semidesert, consisting of thorn scrubs and palm trees.

In its animal reserves, Djibouti has antelopes, gazelles, hyenas, and jackals.

ENVIRONMENT

Djibouti's most significant environmental problems are deforestation, desertification, water pollution, and the protection of its wildlife. Djibouti's forests are threatened by agriculture and the use of wood for fuel. The rare trees on Mt. Goda are protected within a national park. The water supply is threatened by increasing salinity. Underwater reserves have been established in the Gulf of Tadjoura to prevent overfishing of tuna, barracuda, grouper, and other species. No hunting of wild animals is permitted, but abuses continue. Haramous-Loyada is a Ramsar wetland site.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included four types of mammals, six species of birds, nine species of fish, and two species of plants. Threatened species include the spotted eagle, several species of sharks, the green turtle, the spotted hyena, and Grevy's zebra.

POPULATION

The population of Djibouti in 2005 was estimated by the United Nations (UN) at 793,000, which placed it at number 155 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 41% of the population under 15 years of age. There were 100 males for every 100 females in the country. According to the UN, the annual population growth rate for 2005–2010 was expected to be 1.9%, a rate the government viewed as too high. The projected population for the year 2025 was 1,107,000. The population density was 34 per sq km (89 per sq mi). The vast majority lives in and around the capital, with much of the rest of the country inhabitable.

The UN estimated that 82% of the population lived in urban areas (primarily Djibouti) in 2005, and that urban areas were growing at an annual rate of 1.81%. The capital city, Djibouti, had a population of 502,000 in that year.

The prevalence of HIV/AIDS has had a significant impact on the population of Djibouti. The UN estimated that 7.1% of adults between the ages of 15–49 were living with HIV/AIDS in 2001, with an estimated 11% of those ages 15–24 infected with the virus. The AIDS epidemic causes higher death and infant mortality rates, and lowers life expectancy.

MIGRATION

The peoples of Djibouti, Somalia, and Eritrea are historically nomadic, migrating with flocks of camels and goats across borders that now separate their nations. Somalis from Djibouti have also historically sought work across the Gulf of Aden in Yemen and the Persian Gulf sheikdoms.

In mid-1993, some 18,000 Afar refugees from Djibouti fled into northeastern Ethiopia because of ethnic clashes and the civil war. A peace agreement was signed in 1994. Almost all voluntarily repatriated to Djibouti by the end of 1997.

Between September 1994 and November 1996, the United Nations High Commissioner for Refugees (UNHCR) helped repatriate 31,617 Ethiopian refugees from Djibouti; 2,500 remained. In 2004, Somalian refugees numbered 25,444, of which 8,448 were voluntarily repatriated. At of the end of 2004, there were 18,035 refugees in Djibouti, and no asylum seekers. In 2005 the estimated net migration rate was zero migrants per 1,000 population, a considerable change from the -11.4 migrants per thousand in 1990.

ETHNIC GROUPS

The Issa branch of the Somali people and related clans constitutes 60% of all Djibouti's inhabitants; most live in southern Djibouti or in the capital. The Afars, a related people of north and west Djibouti, who also live in the Danakil depression of neighboring Ethiopia, number about 35%. The remaining 5% consists of French (about 3%), Arabs of Yemeni background, Ethiopians, and Italians.

LANGUAGES

Although French and Arabic are the official languages, the home languages of the vast majority of Djiboutians are Somali and Afar, both of Cushitic origin.

RELIGIONS

Over 99% of the population practices Islam, which is the state religion. However, the constitution provides for freedom of religion and there is not widespread discrimination against other faiths. A small number of Djiboutians are Roman Catholic, Protestant, or affiliated with the Baha'i Faith. A large foreign community also supports Greek and Ethiopian Orthodox churches. Proselytizing is not prohibited, but is discouraged. Christmas is the only non-Muslim holiday that is officially recognized. Religious groups must register with the Ministry of the Interior. The Ministry of Muslim Affairs oversees all Muslim activities.

TRANSPORTATION

Djibouti had about 100 km (62 mi) of single-track, narrow gauge railway in 2004, which linked the capital with Addis Ababa. It was closed during the Somali-Ethiopian War of 1977–78; by the time it reopened, the Ethiopians had developed their port of Assab (now part of Eritrea), so traffic did not return to its former level. However, in 1998, Djibouti and Ethiopia announced plans to revitalize the century-old railroad that links their capitals.

Djibouti had 2,890 km (1,796 mi) of road in 2002, 364 km (226 mi) of which was paved. A tarred road runs most of the distance from Djibouti city to Dikhil, Yoboki, and Galafi, on the Ethiopian border, where it connects with the main Assab-Addis Ababa highway. Except for the 40-km (25-mi) road from Djibouti city to Arta, all other roads are rough. A secondary road connects Obock and Tadjoura, on the northern side of the Gulf of Tadjoura, with Randa and Dorra in the northern interior. A highway between Djibouti city and Tadjoura was completed by 1991.

Djibouti's improved natural harbor consists of a roadstead, outer harbor, and inner harbor. The roadstead is well protected by reefs and the configuration of the land. The inner harbor has five outer and six inner berths for large vessels. A quarter of Ethiopia's imports and half of its exports move through the port. Car ferries ply the Gulf of Tadjoura from Djibouti city to Tadjoura and Obock, which are ports of minor commercial importance. As of 2005, Djibouti had one cargo ship totaling 1,369 GRT.

Also in 2004, there were an estimated 13 airports, only 3 of which had paved runways as of 2005. Ambouli Airport, about 6 km (4 mi) from the city of Djibouti, is the country's international air terminal. There are local airports at Tadjoura and Obock. Air Djibouti, partly government-owned and partly owned by Air France, provides domestic service to six centers and flies to a number of overseas destinations.

HISTORY

Somali (Issa) and Afar herders, nomadic, Muslim and Cushiticspeaking, lived in and around Djibouti for hundreds of years before European explorers in the 19th century brought the region to the attention of the modern West. Obock and, later, Djibouti city were recognized as ports of great usefulness on the sea routes to India, Mauritius, and Madagascar. The Italians and British were active colonizers farther south along the Somali coast, and Britain was gaining control in what are now Yemen, the Sudan, and Egypt. France decided to establish its colonial foothold in 1862 along what is now the northeastern coast of Djibouti. This tentative venture became in 1884–85 the protectorates of Obock and Tadjoura, which were merged to form French Somaliland.

The administrative capital of French Somaliland was moved from Obock to Djibouti in 1896, a year before the boundaries of the colony were officially demarcated between France and Ethiopia. In 1898, a French consortium began building the narrowgauge railway that finally reached Addis Ababa in 1917. During the Italian invasion and occupation of Ethiopia in the 1930s and during the early part of World War II, there were constant border skirmishes between French and Italian forces. In December 1942, French Somaliland forces joined the Free French under Gen. Charles de Gaulle.

After World War II, French Somaliland gradually gained a measure of local autonomy. In 1957, it obtained a territorial assembly and a local executive council to advise the French-appointed governor-general. The following year, the voters of French Somalil- and opted to join the French Community as an overseas territory, electing one deputy and one senator to the French National Assembly. In late 1958, the first elections to the local assembly were held under a system of proportional representation. In the second elections, held in 1963, plurality voting based on party lists in seven districts replaced proportional voting. The result was the election of an Afar leader as head of the executive council; the more numerous Issas felt they had been prevented by the new electoral procedures from gaining control of the council. In 1967, 60% of the voters in a special referendum opted to retain the colony's association with France, but the Issas again complained that the franchise lists had been unfairly restricted in a way that favored the Afars. After the referendum, French Somaliland became known as the Territory of the Afars and the Issas.

The country's independence movement had been led throughout the postwar period by the Issas, but their movement had been opposed by Ethiopia, which wanted French control to continue, and by the Afars, who feared Issa domination. Finally, in 1975, the French began to accommodate increasingly strident demands for independence. The territory's citizenship law, which had favored the Afar minority, was revised to admit more Issas. In a referendum in May 1977, the now-enlarged Issa majority voted decisively for independence, which was officially established on 27 June 1977, as the country officially became the Republic of Djibouti. Hassan Gouled Aptidon, the territory's premier, had been elected the nation's first president by the territorial Chamber of Deputies three days earlier. Although Gouled, an Issa, appointed Afar premiers and the cabinet was roughly balanced, the dominance of the Issas in administration led to political conflict, including cabinet crises. Gouled was reelected without opposition by universal suffrage in June 1981 and April 1987. A one-party Chamber of Deputies list, elected without opposition in May 1982, consisted of 26 Issas, 23 Afars, and 16 Arabs. Only 12 seats were won by newcomers in the April 1987 election of a one-party list.

A new constitution was voted on in 1992, although the vote was boycotted by opposition parties. In December, legislative elections were held, which, according to the constitution, were to have been open to all parties. Due to administrative restrictions and opposition resolve not to participate, by election time only two parties had been officially allowed to contest seats: the ruling People's Rally for Progress Party (RPP) and the newly formed Democratic Renewal Party (PRD). Due to the antidemocratic nature of the electoral process, more than half the electorate refused to vote. The RPP was said to have won all 65 seats.

Presidential elections were held in March 1993. Five candidates contested the elections for president. The leader of the PDR, Mohamed Elabe, was Gouled's main opponent. But, again, fewer than half the electorate voted, and Gouled was reelected with officially 60% of the vote.

Dissatisfaction with Gouled grew in the late 1980s and contributed to an uprising by Afar guerrillas of the Front for the Restoration of Unity and Democracy (FRUD) in late 1991. FRUD gained control of some areas of the north and west. In February 1992, France deployed forces in Djibouti, and the Afars declared unilaterally a cease-fire. Yet, fighting continued and a government counteroffensive checked the FRUD by July. Rebel bases in the north were occupied, and many opposition leaders were imprisoned, including Ali Aref Bourhan, for an alleged coup attempt. He was released in December 1993. By the end of 1993, about 35% of the central government's budgetary expenditures went toward maintaining "security"; that is, the military occupation of the north by troops of Somali origin.

In 1993, the FRUD suffered severe losses to a government offensive. In 1994, its leadership split over the issue of negotiations with the government. A more moderate wing then entered into negotiations and called a cease-fire. In March 1995, in compliance with the peace accords signed in December 1994, the majority of the FRUD disarmed, and the military integrated a segment of the insurgents into its ranks. Two FRUD leaders accepted ministerial posts. In March 1996 the FRUD was given legal recognition as a political party. A radical wing of the FRUD, (FRUD-Renaissance) led by Ahmed Dini, remains opposed to the cease-fire. Djibouti and Ethiopia jointly attacked the FRUD rebels in October 1997, and skirmishes continued in 1998.

The human rights record of the authoritarian Gouled regime came increasingly under attack in the late-1980s and 1990s, with allegations of beatings, rapes, arbitrary, prolonged, and incommunicado detentions, extra-judicial killings and disappearances of political/ethnic opponents of Gouled, and union leaders. Journalists have also been harassed, intimidated, and detained.

Gouled became ill in December 1995 and spent several months in hospital in France. During this period there appeared a succession struggle between Ismael Omar Guelleh and Ismael Godi Hared, both close advisors of the president. In part to cut down on inter-party fighting, Gouled elected to remain at the helm after his convalescence. In February 1999 he announced his intention to retire and that he would not be a candidate for the scheduled April 1999 elections. At that point the RPP named Guelleh, a key advisor and chief of staff to the former president for over 20 years, as its candidate. The FRUD, in alliance with the RPP, accepted Guelleh as its candidate, as well. An opposition coalition, which included the PRD (Democratic Renewal Party), the PND (National Democratic Party), and (unofficially) the FRUDRenaissance slated Moussa Ahmed Idriss as their candidate. An estimated 60% of the electorate participated, with Guelleh garnering 74% of the votes cast to 26% for Idriss. There was no official boycott of the elections, for the first time since Djibouti's independence from France in 1977.

In January 2003 Djibouti held a new round of parliamentary elections that the opposition claimed was highly fraudulent. By the official tally, the UAD opposition coalition was only 4,939 votes away from beating the presidential movement. Yet because of Djibouti's winner-takes-all system, the RPP won all 65 seats. For the first time in Djibouti's history, seven women won seats in the parliament.

In the presidential elections that followed on 8 April 2005, the opposition alleged irregularities and intimidation in the run-up to the contest, and boycotted the polls on election day. With the absence of any opposition, President Guelleh was elected to another six-year term. In an effort to validate his victory, Guelleh claimed a 79% voter turn-out. However, given a turnout of 48% in the parliamentary election just two years earlier, his claim was not credible. Following the election, Guelleh attempted to mend fences by announcing that he would step down after his second term and that he would not amend the constitution to seek a third term.

The electoral victories cemented a nearly complete domination of government by the President's sub-clan, the Issa Mamassans, and severely restricted political space and economic opportunities for the Afar people. In 2005 reports began to surface of rebel insurrections allegedly led by disaffected elements of the FRUD. Among the leaders of the insurgency was Aramis Mohamed Aramis, an Afar and the son of a former FRUD commander, who was killed in 1991.

Djibouti is situated in one of the least stable regions of the world, and it occupies a highly strategic location facing the Saudi Arabian peninsula, straddling the choke point between the Red Sea and the Gulf of Aden. President Guelleh maintained harmonious relations with neighbors and superpowers. In 2004, the government signed a bi-lateral treaty with Eritrea promising economic, political and social cooperation, and Djibouti continued to benefit from the significant transit of goods to and from land-locked Ethiopia via its well-developed seaport. Although a potential magnet for terrorists, the presence of French and American military bases in the country has served to dampen potential threats from Somalia's clan rivalries, which have destabilized greater Somalia and its self-declared autonomous states of Somaliland and Puntland.

GOVERNMENT

Under the 1981 and 1992 constitutions, Djibouti is a parliamentary republic. The president, who according to the constitution must be an Issa, is elected by universal adult suffrage; the prime minister, who heads the cabinet, must be an Afar. The legislature consists of the unicameral Chamber of Deputies, whose 65 members are elected for five-year terms. Before 1992, candidates came from a single list submitted by the ruling party, the Popular Rally for Progress (RPP).

In January 1992, the Gouled government named a committee to draft a new constitution that would permit multiparty democracy, limit presidential powers, and establish an independent judiciary. On 4 September 1992, 75% of the voters approved the new constitution in a referendum. According to Djibouti's winner-takes-all electoral rules, the party obtaining a majority in a given district is awarded all the seats within that district, which explains how the FRUD won 36.9% of the vote in 2003, but took no seats in the parliament.

POLITICAL PARTIES

Personalities and clan identities trump party labels, but the system is dominated by the ruling party and its coalition, the Union for the Presidential Majority (UMP), an alliance that includes the People's Rally for Progress (Rassemblement Populaire pour le Progrès—RPP), the Front for the Restoration of Unity and Democracy (FRUD), originally formed in 1991, PSD and PND. The opposition coalition, the Union for Democratic Changeover (UAD) is composed of the ARD, MRDD, UDJ, and formerly the PDD (expelled in December 2004).

Ruling party dominance harks back to October 1981 when a law was enacted that restricted political activity to the ruling RPP. That year, the government temporarily detained the leaders of and banned the Djiboutian People's Party (Parti Populaire Djiboutien). Illegal Issa and Afar parties, including an Ethiopianbacked Afar party-in-exile and a Somali-backed Issa party-in-exile, waited in the wings. For the 1987 elections to the Chamber of Deputies, a single list of candidates was drawn up by the RPP, headed by President Gouled; about 90% of the nation's 100,985 voters cast ballots.

Despite the 1992 constitutional changes that legalized opposition parties, Djibouti remained tightly controlled by the RPP (People's Rally for Progress). On 18 December 1992, legislative elections were held, with the RPP gaining 74.6% of the vote and the Democratic Renewal Party (PRD) 25.4%. Other parties boycotted the elections on the grounds that Gouled did not consult the opposition in the "democratization" process. Most Afars did not vote. The RPP, therefore, won all 65 seats. Gouled was reelected, although not convincingly, on 7 May 1993. The four losing parties and FRUD, at the time a paramilitary organization in the north (Front for the Restoration of Unity and Democracy) accused the government of election fraud, a charge supported by international observers. Only 50% of the eligible voters were reported to have turned out.

In the December 1997 legislative elections, which generally were not considered to be credible, the RPP won 54 seats to the FRUD's 11, though their campaigns were supported by the RPP in alliance. The PRD and PND contested the elections and received 19.2% and 2.3% of the votes, respectively, but won no National Assembly seats. There were no female candidates in the election.

In February 1999 President Gouled designated his successor, longtime advisor Ismael Omar Guelleh, who was then duly elected president on 9 April 1999 and installed on 8 May 1999. His cabinets reflected the proportional ethnic composition required by the constitution, with continued dominance of his sub-clan of the Issas. Barkat Gourad Hammado, the prime minister, was replaced by Mohamed Dileita Dileita on 4 March 2001.

Two groups, the Democratic Renewal Party (PRD) and the Democratic National Party (PND) have contested elections since 1992. FRUD-Renaissance, which separated from the FRUD in 1996, signed a peace accord in Paris on 7 February 2000 with the government, which also included a general release of prisoners held by both sides. The Movement for Unity and Democracy (MUD) allegedly is associated with the Somali National Movement operating out of northern Somalia. It is a coalition of Afaroriented and Issa-oriented dissidents.

In the country's first full multiparty parliamentary elections held 10 January 2003, the UMP led by the RPP garnered 62.2% of the vote to 36.9% for the FRUD, which won no assembly seats. In the capital, Djibouti-Ville, the opposition Union pour une Alternance Démocratique (UAD) took 44.9% of the votes, and the UMP 55%. President Ismail Omar Guelleh ran unopposed in the 8 April 2005 elections, guaranteeing him another six-year term in office. His appointed prime minister was Mohamed Dileita, who held the position as head of government since 4 March 2001. The next parliamentary elections were scheduled for January 2008, and the next presidential elections were due April 2011.

LOCAL GOVERNMENT

There are five cercles, or districts, with councils and appointed administrators: Ali Sabîh, Obock, Dikhil, Tadjoura, and Djibouti.

JUDICIAL SYSTEM

The judicial system consists of courts of first instance, a High Court of Appeal, and a Supreme Court. Each of the five administrative districts also has a customary court. The legal system is a blend of French codified law, Shariah (Islamic law) and customary law of the native nomadic peoples.

The 1992 constitution is modeled on the 1958 French constitution. The judiciary is not completely independent of the executive branch. A state security court handles political trials and cases involving purported threats to national security. Political trials may be applied to the Supreme Court.

The Constitutional Council rules on the constitutionality of laws. The constitution states that the accused enjoys a presumption of innocence and has the right to counsel.

ARMED FORCES

In 2005, Djibouti's armed forces of 9,850 active members was divided into an 8,000-man army, an estimated 200-man navy with seven patrol craft, and a 250-man air force with no combat aircraft. Paramilitary forces included 1,400 personnel in the gendarmerie and a national security force of an estimated 2,500. A total of 2,850 French troops were based near the city of Djibouti to deal with threats to French interests in the region. The defense budget in 2005 totaled $25.8 million.

INTERNATIONAL COOPERATION

Admitted to the United Nations on 20 September 1977, Djibouti belongs to ECA and all the nonregional specialized agencies except the IAEA. It is also a member of the WTO, the African Development Bank, G-77, the Arab League, the ACP Group, the Arab Monetary Fund, the Intergovernmental Authority on Development (IGAD), the Organization of the Islamic Conference (OIC), COMESA, the Community of Sahel and Saharan States (CENSAD), and the African Union. Djibouti is part of the Nonaligned Movement. In 1981, treaties of friendship and cooperation were signed with Ethiopia, Somalia, Kenya, and the Sudan. In environmental cooperation, Djibouti is part of the Convention on Biological Diversity, CITES, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change and Desertification.

ECONOMY

Djibouti has a market-based, free-enterprise economy. Its economy is dependent upon its strategic position at the narrow straits at the southern entrance to the Red Sea. The French military base in Djibouti is the country's largest single source of economic and commercial activity. The remainder of the money economy is service oriented and centered upon the free port of Djibouti, the railway terminus there, the airport, and government administration. The free port features a deep-water container terminal; France has committed substantial funds to its continuing modernization. There is also an active construction industry.

There is little arable farm land in Djibouti, and the country is subject to periods of severe drought. As a consequence, Djibouti produces only 3% of its food needs. Over half of the population derives its income from livestock: goats, sheep, and camels. A fishing industry has emerged, and the Islamic Development Bank helped finance a canning factory.

Since 1990, recession, civil war, and a high population growth rate combined to reduce per capita consumption by 35%. The unemployment rate exceeded 50% as of 2004 (some estimates placed it at over 70%). The border conflict between Ethiopia and Eritrea disturbed the normal commerce in which Djibouti allowed Ethiopia the use of its port and conducted regular trade relations. As a consequence, average annual growth of GDP between 1988 and 1998 was -3.1%, and the economy was at zero growth in 2001. The GDP growth rate reached 3.5% in 2002; the inflation rate that year was 2%.

Due to the fact that Djibouti has few exploitable natural resources and little industry, it is heavily dependent upon foreign aid to finance development projects and support its balance of payments. The country has fallen behind on its debt payments and has had difficulty meeting the reform requirements set by foreign aid donors. Ethiopia has developed other trade routes, limiting Djibouti's port activity.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Djibouti's gross domestic product (GDP) was estimated at $619.0 million. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $1,300. The annual growth rate of GDP was estimated at 3.5%. The average inflation rate in 2002 was 2%. It was estimated that agriculture accounted for 3.5% of GDP, industry 15.8%, and services 80.7%.

It was estimated that in 2001 about 50% of the population had incomes below the poverty line.

LABOR

Labor in the cash economy is concentrated in the city of Djibouti, particularly on the docks and in shipbuilding and building construction. In 2002, (the latest year for which data was available) the labor force numbered 282,000. The railway is a significant employer, as is the national government. However, there is no data available on the occupational breakdown. Unemployment and underemployment are widespread; unemployment was estimated at 50% in 2004.

As of 2005 workers were free to join unions and strik, e provided they complied with prescribed legal requirements. All unions must be legally sanctioned by the government and 48 hours advance notice must be given to the Ministry of the Interior of a planned strike. Independent unions continue to be suppressed. In addition, those who participate in strikes may be arrested. Collective bargaining rarely occurs.

In 2005, the monthly minimum wage for unskilled workers was approximately $125, which had not changed since its inception in 1976. By law, the standard workweek is 40 hours, often spread over six days. A weekly rest period of 24 consecutive hours is also mandated by law, as is the provision of overtime pay. However, these regulations affect only the small fraction of the population that is involved in wage employment. The minimum age for child labor is 14 years old, although the lack of labor inspectors means that compliance is left largely to market forces. The government also lacks inspectors to enforce workplace safety standards, therefore many workers face hazardous work conditions.

AGRICULTURE

Agriculture in Djibouti is very limited, due to acute water shortages in rural areas. In 2003, agriculture contributed only a little more than 4% to GDP. In 2004, some 25,464 tons of vegetables were produced. Tomatoes are grown for domestic consumption. Date palms are cultivated along the coastal fringe. Famine and malnutrition in Djibouti have created a reliance on the distribution of food aid for millions of its people. In 2004, grain imports totaled 87,115 tons.

ANIMAL HUSBANDRY

Cattle, fat-tailed sheep, goats, and camels are grazed in the interior; hides and skins are exported. In 2004, Djibouti had an estimated 512,000 goats, 466,000 sheep, 297,000 cattle, and 8,800 asses. Meat production in 2004 totaled 11,244 tons, of which beef accounted for 6,050 tons. An estimated 13,950 tons of milk were produced in 2004, along with 1,990 tons of cattle hides, sheepskins, and goatskins.

FISHING

There is no local tradition of commercial fishing or seafaring, although the Gulf of Tadjoura, the Gulf of Aden, and the Red Sea are potentially rich sources of commercial and game fish. The catch was 350 tons in 2003.

FORESTRY

There are protected forests on the slopes of the mountains north of the Gulf of Tadjoura. Less than 1% of the country's total land area is forested.

MINING

Mining and manufacturing accounted for 3% of the gross domestic product (GDP) in 2004, which stood at around $1.6 billion. Djibouti has been known to produce occasional small quantities of clays, granite, limestone, marble, salt, sand and gravel, and crushed and dimension stone for domestic construction projects. There was no cement production in the country; most imports came from Persian Gulf countries. Other mineral occurrences of potential economic interest included diatomite, geothermal fluids and mineral salts, gold, gypsum, perlite, petroleum, and pumice. Salt was the only mineral produced in 2004. Extracted from evaporated pans by artisanal miners in the marshes of Tadjoura, salt production fell sharply from the 173,099 metric tons produced in 2001 to an estimated 30,000 metric tons in 2004. The government hoped to establish, by the end of 2002, a fiscal, institutional, and legal framework to support the development of domestic natural resources. The government also planned to promote the use of local materials in construction and public works. The outlook for the mineral industry was for little growth in the short run; constraints included small domestic markets, minimal known natural resources, and slow GDP growth.

ENERGY AND POWER

Located in the Horn of Africa region, Djibouti had no proven reserves of oil or natural gas, or refining capacity, as of 1 January 2003. In addition, Djibouti has no known reserves of coal. The country's energy and power sector is dominated by electrical power generation. According to an August 2003 Energy Information Administration (EIA) analysis brief, Djibouti has an installed electrical power generating capacity of 85 MW, which is generated from an oil-fired generating station in the capital. In 2002 electical power output was put at 0.232 billion kWh, with consumption at 0.216 billion kWh. All petroleum products are imported. In 2002, imports of refined petroleum products totaled 11,410 barrels per day, with consumption placed at 11,400 barrels per day. There were no natural gas imports for that year. The port in Djibouti's capital city is an important oil shipment and storage site. The Dubai Ports Authority, which in 2000 was awarded a longterm contract to manage the port, hoped to increase its handling capacity to 300,000 metric tons per year over the next 20 years through modernization and expansion of port facilities.

INDUSTRY

Shipbuilding and urban construction traditionally have been industrial undertakings. The two main factories in 2006 were a mineral-water bottling facility and a dairy, although small plants produce food, beverages, furniture, building materials, and bottled gas.

With the help of France, Italy, the World Bank, OPEC, and the United Nations Development Program, Djibouti was promoting a project to develop geothermal energy resources. Interest was focused on the Goubet-Lac Assal region and, through this project, Djibouti hoped to become self-sufficient in energy. Industry accounted for 15.8% of GDP in 2001.

SCIENCE AND TECHNOLOGY

Because Djibouti is an active volcanic zone, its two principal research organizations—the Higher Institute for Scientific and Technical Research and the Bureau of Geological and Mineral Research—concentrate on the earth sciences.

DOMESTIC TRADE

As of 2001, about 80.7% of the GDP was contributed by the service sector, primarily those services related to international import/export trade. The main commercial centers are around the Port of Djibouti, the international airport, and the railroad. Domestic trade is dominated by traffic in live sheep and camels, dates, and melons. The government maintains price controls on a number of essential commodities, including wheat flour, bread, sugar, and petroleum products. French citizens dominate the commerce of the city of Djibouti. Business hours normally are 7:30 am to noon and 3:30 to 6 pm, Sunday through Thursday. Banks are open Sunday–Thursday from 7 am to 12 pm. Banks and offices are closed on Fridays and Saturdays.

FOREIGN TRADE

About 75% of imports are consumed or used in Djibouti, while the remainder is forwarded to Ethiopia or northern Somalia. Exports include hides and skins, and coffee. Imports are vegetable products, foodstuffs, beverages, vinegar, tobacco, machinery and transportation equipment, and mineral products.

In 2004, Djibouti's primary export partners were: Somalia (63.8%), Yemen (22.6%), and Ethiopia (5%). The primary import partners were: Saudi Arabia (19.7%), India (12.4%), Ethiopia (11.8%), China (8.1%), France (5.6%), and the United States (4.8%).

BALANCE OF PAYMENTS

Since independence, Djibouti has run large trade deficits, which have been offset by surpluses on services and by transfers attributable to the French base, port receipts, the national airline, the national airport, and grants from donors.

In 2004, Djibouti's exports were valued at $250 million, and imports at $987 million. In 2002, the country had an external debt burden of $366 million. In 2001, Djibouti received $36 million in economic aid.

BANKING AND SECURITIES

The Djibouti franc was created in 1949 by the government of France. The Djibouti Treasury was replaced in 1983 as the bank

of issue and central bank by the new National Bank of Djibouti. There were five commercial banks in 1993 and a National Development Bank, 51% government owned. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $161.2 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $318.3 million.

There is no securities exchange.

Both the pace and content of economic reforms are inconsistent. Failures to meet the financial criteria established with the IMF led to a postponement of the disbursal of the second installment of a $6.6 million credit agreed in April 1996. Wrangling over conditionality with France also delayed payment of part of the $9.3 million assistance package agreed upon in September 1996. The attitudes of the IMF and France, combined with problems in rescheduling debts to France, provided a rather somber backdrop to the negotiation of the 1997 budget.

INSURANCE

The State Insurance Co. of Somalia and about 10 European insurance companies provide most of the insurance coverage.

PUBLIC FINANCE

Increased military expenditures, declining tax receipts, and political unrest in bordering countries have exacerbated the deterioration of public finance in recent years. France, a major provider of aid to Djibouti, has insisted that future aid packages be conditional on an overhaul of the country's muddled finances.

The US Central Intelligence Agency (CIA) estimated that in 1999 Djibouti's central government took in revenues of approximately $135 million and had expenditures of $182 million. Revenues minus expenditures totaled approximately -$47 million. Total external debt was $366 million.

TAXATION

The individual income tax, payable by the employer, is collected by withholding from wages and salaries. In addition, the employee and the employer contribute to a medical and pension fund. There is a separate system for civil servants and soldiers. Private corporations and personal companies, as well as public companies and limited companies, pay a flat tax. Other taxes include property, stamp, and registration taxes. There is also an ad valorem consumption tax of 8–30% (as of August 2003) with a surtax on luxury items.

CUSTOMS AND DUTIES

Formerly a "Free Zone," although the term only applied to the port, Djibouti now levies customs duties on most commodities, with most import taxes ranging from 5–40%. Luxury goods, such as cigarettes and alcoholic beverages, are taxed at higher rates, as much as 160%. Additionally, Djibouti requires import licenses for all those wishing to import or sell in the country.

FOREIGN INVESTMENT

Foreign investment is predominantly French, largely in connection with the military base and the port. Saudi Arabia, Pakistan, China, Korea, and Uganda have cooperation agreements. Bilateral investment agreements (BITs) were concluded with Egypt and Malaysia in 1998 and with Switzerland in 200l. Official development assistance (ODA) was $42 million in 2000 and $36 million in 2001. There are no exchange controls and investors are allowed to transfer their profits freely without tax. Tax relief is offered to some investors.

In 1998, annual foreign direct investment (FDI) inflow rose from $2.4 million in 1997 to $3.5 million and then peaked at a record $4.2 million in 1999. FDI inflow averaged $3.35 million for 2000 and 2001. As of 2003, the total stock of inward FDI was $52 million, and inward FDI flow in 2003 was $11 million.

ECONOMIC DEVELOPMENT

In 1990, the Djibouti government significantly expanded its public investment program. Projects in communications, agriculture, and fisheries, as well as in social and environmental areas, were planned. Execution of these plans was put on hold as a result of subsequent domestic disturbances. The Persian Gulf War of 1991 also disrupted investment programs sponsored by Iraq, Kuwait, and Saudi Arabia.

French budgetary support of the Djibouti economy is crucial to its stability, providing some 45% of foreign aid. The long-standing French financial commitment has weakened since 1989, and the International Monetary Fund (IMF) has expressed serious concern over key budget and trade deficits. In 1999, Djibouti negotiated a three-year $26 million Enhanced Structural Adjustment Facility (ESAF, subsequently Poverty Reduction and Growth Facility—PRGF) with the IMF.

Per capita consumption dropped an estimated 35% over the 1998–2005 period, due to recession, civil war, and a high population growth rate (including immigrants and refugees). The government has fallen in arrears on long-term external debt and struggles to meet the demands of foreign aid donors.

SOCIAL DEVELOPMENT

Despite full legal protection, women generally play a subordinate role in the workplace and in the household. Customary law favors men in areas of inheritance and property rights. Domestic violence against women is treated as a family problem. As many as 98% of women have undergone female circumcision, also known as female genital mutilation (FGM), a painful and potentially life-threatening procedure. Although the procedure is illegal, no one has been prosecuted under those provisions. The government provides no funds to advance children's welfare.

Discrimination against minority ethnic clans in Djibouti is pervasive. The dominant clan, the Issa, control most government positions and are dominant in the military forces as well. Djibouti'shuman rights record remains poor, despite the transition to a multiparty system. There are reports of police brutality, deplorable prison conditions, and illegal detentions.

HEALTH

Malnutrition is severe and the incidence of tuberculosis high. Malaria is endemic. There were 3,111 reported cases of tuberculosis in 1994. The city of Djibouti's publicly supplied water is suspect because the system is in disrepair.

In 2004 there were an estimated 13 physicians, 2 dentists, 65 nurses, and 2 pharmacists per 100,000 people. Djibouti's government has developed plans to improve public health and the management of hospitals, train more staff, and rehabilitate existing facilities.

In 2005 life expectancy was estimated at 43.10 years, one of the lowest in the world. That year the infant mortality rate was 104.13 per 1,000 live births. The death rate was 14.4 deaths per 1,000 inhabitants. As of 2002, the birth rate was estimated at 40 births per 1,000 people.

The HIV/AIDS prevalence was 2.90 per 100 adults in 2003. As of 2004, there were approximately 9,100 people living with HIV/AIDS in the country. There were an estimated 690 deaths from AIDS in 2003.

There were 1,007 cases of malaria in 1994. Between the mid1970s and the mid-1990s, 23% of children under five were underweight. In Djibouti nearly every woman has had female genital mutilation.

HOUSING

Djiboutian nomads generally live in branch-framed, transportable huts (toukouls ), which are covered with woven mats or boiled bark pulled into fine strands and plaited; they are carried from place to place on camels. Good-quality urban housing is in short supply. Construction of 5,000 low-cost dwellings was planned for the 1981–86 period, but only 729 were built. In the past, housing costs have often been subsidized by the government, particular for government or civil employees. This status has begun to change since the late 1990s as the government has imposed housing taxes as part of a greater economic reform package sponsored in part by the International Monetary Fund. In 2000, nearly 100% of the total population had access to improved water sources; about 99% of urban and 50% of rural dwellers had improved sanitation systems.

EDUCATION

Education is compulsory for six years at the primary level followed by seven years of secondary education. Primary school enrollment in 2001 was estimated at about 32% of age-eligible students; 36% for boys and 28% for girls. The same year, secondary school enrollment was about 16% of age-eligible students; 20% for boys and 13% for girls. It is estimated that about 35% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 34:1 in 2003; the ratio for secondary school was about 28:1. In 2003, private schools accounted for about 15.5% of primary school enrollment and 21% of secondary enrollment.

The University of Djibouti is the primary institute of higher education. In 2003, only about 1% of the tertiary age population were enrolled in some type of higher education program. In 2003, the adult literacy rate was estimated at 67.9%; 78% for men and 58.4% for women.

As of 2003, public expenditure on education was estimated at 3.5% of GDP.

LIBRARIES AND MUSEUMS

No information is currently available.

MEDIA

From the city of Djibouti, telephone connections are available by satellite to Europe and the West and by land line to the main cities and towns of the interior; there were 9,500 mainline telephones and 23,000 cellular phones in use throughout the country in 2003.

All media are government controlled. In 1983, Djibouti inaugurated a powerful state-owned AM radio transmitting station, built with French and FRG funds. A television service was first introduced in 1967. Both are state run and broadcast in French, Afar, Somali, and Arabic. As of 2001, there were 1 AM and 2 FM radio stations and 1 television station. In 1997, there were 77 radios and 37 television sets per 1,000 population. Internet access was available to about 6,500 subscribers in 2003.

Djibouti has one primary weekly newspaper, the government-owned La Nation de Djibouti, which had a circulation of 4,300 in 2000. Each political party is allowed to publish a public journal. There are several opposition-run weeklies and monthlies that operate freely. The constitution provides for freedom of speech and the press, and the government is said to generally uphold these rights.

ORGANIZATIONS

A chamber of commerce and industry, founded in 1912, has its headquarters in the capital. Youth organizations include the Association of Youth Homes in Djibouti, Djibouti Scout Association, and Red Crescent Youth of Djibouti (JCRD).There are some sports organizations in the country as well. The Eglise Protestante (Protestant Church) offers educational and social welfare programs as well as religious evangelism. Volunteer service organizations, such as the Lions Clubs International, are also present. There are national chapters of the Red Crescent Society, Caritas, and UNICEF.

TOURISM, TRAVEL, AND RECREATION

In addition to several seldom-visited sandy beaches along the Gulf of Tadjoura, tourist attractions include swimming and snorkeling off the islands in the Gulf of Tadjoura and the Bab al-Mandab. At Goubbet al-Kharab, at the western end of the Gulf of Tadjoura, there are steep cliffs and a bay turned dark green by black lava. Inland from this point is Lake Assal with a number of active volcanoes nearby. The Forest of the Day is a national park for rare trees on Mt. Goda. In the south, the alkaline Lake Abbé is visited by flocks of flamingos, ibis, and pelicans. Near Ali Sabîh are the famous red mountains and a national park full of various gazelles. Passports and visas are required; visas must be secured in advance. Antimalarial precautions are advisable and yellow fever vaccinations are required if traveling from an infected area.

In 2005, the US Department of State estimated the cost of staying in Djibouti at $278 per day, depending upon the choice of hotel.

FAMOUS DJIBOUTIANS

Hassan Gouled Aptidon (b.1916) was president from independence in 1977 until 1999, when he decided to step down; his nephew and handpicked successor, Ismael Omar Guelleh (b.1947) was elected to the office in April 1999.

DEPENDENCIES

Djibouti has no territories or colonies.

BIBLIOGRAPHY

Alwan, Daoud A. Historical Dictionary of Djibouti. Lanham, Md.: Scarecrow Press, 2000.

Kalb, Jon (ed.). Bibliography of the Earth Sciences for the Horn of Africa: Ethiopia, Eritrea, Somalia, and Djibouti, 1620–1993. Alexandria, Va.: American Geological Institute, 2000.

Koburger, Charles W. Naval Strategy East of Suez: The Role of Djibouti. New York: Praeger, 1992.

Woodward, Peter. The Horn of Africa: Politics and International Relations. New York: I.B. Tauris, 2003.

Zeilig, Leo and David Seddon. A Political and Economic Dictionary of Africa. Philadelphia: Routledge/Taylor and Francis, 2005.