About the CBI

September 2005
 Background Note: Eritrea

Flag of Eritrea is red isosceles triangle (based on the hoist side) dividing
the flag into two right triangles; the upper triangle is green, the lower one
is blue; a gold wreath encircling a gold olive branch is centered on the
hoist side of the red triangle.

PROFILE

OFFICIAL NAME:
State of Eritrea

Geography
Area: 125,000 sq. km. (48,000 sq. mi.); about the size of Pennsylvania.
Cities: Capital--Asmara (est. pop. 435,000). Other cities--Keren (57,000);
Assab (28,000); Massawa (25,000); Afabet (25,000); Tessenie (25,000);
Mendefera (25,000); Dekemhare (20,000); Adekeieh (15,000); Barentu (15,000);
Ghinda (15,000).
Terrain: Central highlands straddle escarpment associated with Rift Valley,
dry coastal plains, and western lowlands.
Climate: Temperate in the highlands; hot in the lowlands.

People
Nationality: Noun and adjective--Eritrean(s).
Population (2005 est.): 4.5 million.
Annual growth rate: 2.5%.
Ethnic groups: Tigrinya 50%, Tigre 31.4%, Saho 5%, Afar 5%, Beja 2.5%, Bilen
2.1%, Kunama 2%, Nara 1.5%, and Rashaida .5%.
Religions: Christian 50%, mostly Orthodox, Muslim 48%, indigenous beliefs 2%.
Education: Years compulsory--none. Attendance--elementary 57%; secondary 21%.
Health: Infant mortality rate--75/1,000. Life expectancy--52 yrs.
Work force: Agriculture--80%. Industry and commerce--20%.

Government
Type: Transitional government.
Independence: Eritrea officially celebrated its independence on May 24, 1993.
Constitution: Ratified May 24, 1997, but not yet implemented.
Branches: Executive--president, cabinet. Legislative--Transitional National
Assembly. Judicial--Supreme Court.
Administrative subdivisions: Six administrative regions.
Political party: People's Front for Democracy and Justice (name adopted by
the Eritrean People's Liberation Front when it established itself as a
political party).
Suffrage: Universal, age 18 and above.
Central government budget (2000 est.): $442 million.
Defense: $107 million.

Economy
Real GDP (2004 est.): $700 million.
Annual growth rate (2004 est.): 1%.
Per capita income: $900 (on a purchasing power parity basis).
Avg. inflation rate (2004 est.): 18.2%.
Mineral resources: Gold, copper, iron ore, potash, oil.
Agriculture (12% of GDP in 2004): Products--millet, sorghum, teff, wheat,
barley, flax, cotton, papayas, citrus fruits, bananas, beans and lentils,
potatoes, vegetables, fish, dairy products, meat, and skins. Cultivated
land--10% of arable land.
Industry (25% of GDP in 2004): Types--processed food and dairy products,
alcoholic beverages, leather goods, textiles, chemicals, cement and other
construction materials, salt, paper, and matches.
Trade: Exports (2004)--$39 million: skins, meat, live sheep and cattle, gum
arabic. Major markets--Middle East (Saudi Arabia, Yemen), Europe (Italy),
Djibouti, and Sudan. Imports (2004)--$335 million: food, military materiel,
and fuel, manufactured goods, machinery and transportation equipment. Major
suppliers--U.A.E., Saudi Arabia, Italy, Germany, Belgium.

GEOGRAPHY
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 landmass. 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 26o C (80o 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.

PEOPLE
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
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.

HISTORY
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 from Ethiopia 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 Liberation Front (ELF) led the Eritrean
independence struggle. In 1970, some members of the group broke away to form
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, with Isaias Afwerki as its leader. The EPLF used material
captured from the Ethiopian Army to fight against the government.

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 of which 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--advanced 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. Later that
month, the United States chaired talks in London to formalize the end of the
war. The four major combatant groups, including the EPLF, attended these
talks.

Having defeated the Ethiopian forces in Eritrea, EPLF troops took control of
their homeland. In May 1991, the EPLF established the Provisional Government
of Eritrea (PGE) to administer Eritrean affairs until a referendum could be
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.

A high-level U.S. delegation 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
assistance for Mengistu limited the level of Eritrean interest in seeking
Soviet support. The fall of communist regimes in the former Soviet Union and
the Eastern Bloc convinced them it was a failed system. The EPLF (and later
its successor, the PFDJ) expressed its commitment 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.

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, and Eritrea officially
celebrated its independence on May 24, 1993.

GOVERNMENT AND POLITICAL CONDITIONS
Eritrea's Government faced formidable challenges following independence. With
no constitution, no judicial system, and an education system in shambles, the
Eritrean Government was required to build institutions of government from
scratch.

On May 19, 1993, the PGE issued a proclamation regarding the reorganization
of the government. The government was reorganized, and after a national,
freely contested election, the Transitional 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 PGE declared that during
a 4-year transition period it would draft and ratify a constitution, draft a
law on political parties, draft a press law, and carry out elections for a
constitutional government.

In March 1994, the PGE created a constitutional commission charged with
drafting a constitution flexible enough to meet the current needs of a
population suffering from 30 years of civil war as well as those of the
future, when prospective stability and prosperity would change the political
landscape. Commission members traveled throughout the country and to Eritrean
communities abroad holding meetings to explain constitutional options to the
people and to solicit their input. A new constitution was ratified in 1997
but has not been implemented, and general elections have not been held. The
government had announced that Transitional National Assembly elections would
take place in December 2001, but those were postponed and new elections have
not been rescheduled.

The present government structure includes legislative, executive, and
judicial bodies. The legislature, the Transitional National Assembly,
comprises 75 members of the PFDJ and 75 additional popularly elected members.
The Transitional National Assembly is the highest legal power in the
government until the establishment of a democratic, constitutional
government. The legislature sets the internal and external policies of the
government, regulates implementation of those policies, approves the budget,
and elects the president of the country. The president nominates individuals
to head the various ministries, authorities, commissions, and offices, and
the Transitional National Assembly ratifies those nominations. The cabinet is
the country's executive branch. It is composed of 17 ministers and chaired by
the president. It implements policies, regulations, and laws and is
accountable to the Transitional National Assembly. The ministries are
agriculture; defense; education; energy and mines; finance; fisheries;
foreign affairs; health; information; labor and human welfare; land, water,
and environment; local governments; justice; public works; trade and
industry; transportation and communication; and tourism.

Nominally, the judiciary operates independently of both the legislative and
executive bodies, with a court system that extends from the village through
to the district, provincial, and national levels. However, in practice, the
independence of the judiciary is limited. In 2001, the president of the High
Court was detained after criticizing the government for judicial
interference.

In September 2001, after several months in which a number of prominent PFDJ
party members had gone public with a series of grievances against the
government and in which they called for implementation of the constitution
and the holding of elections, the government instituted a crackdown. Eleven
prominent dissidents, members of what had come to be known as the Group of
15, were arrested and held without charge in an unknown location. At the same
time, the government shut down the independent press and arrested its
reporters and editors, holding them incommunicado and without charge. In
subsequent weeks, the government arrested other individuals, including two
Eritrean employees of the U.S. Embassy. All of these individuals remain held
without charge and none are allowed visitors.

Principal Government Officials
President of the State of Eritrea and Chairman of the Executive Council of
the PFDJ--Isaias Afwerki
Director, Office of the President--Yemane Ghebremeskel
Minister of Defense--Sebhat Ephrem
Minister of Foreign Affairs--Ali Said Abdella
Minister of Finance--Berhane Abrehe
Minister of National Development--Dr. Woldai Futur

Eritrea maintains an embassy in the United States at 1708 New Hampshire Ave.,
NW, Washington, DC 20009 (tel. 202-319-1991) headed by Ambassador Girma
Asmerom.

ECONOMY
The Eritrean economy is largely based on agriculture, which employs 80% of
the population but currently may contribute as little as 12% to GDP.
Agricultural export include cotton, fruit and vegetables, 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 and other private transfers from abroad currently contribute
about 32% 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 1998-2000 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 communication infrastructure is outmoded and
deteriorating, although a large volume of intercity road-building activity is
currently underway. 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.

According to the IMF, post-border war recovery has been impaired by four
consecutive years of recurrent drought that have reduced the already low
domestic food production capacity. There are now some encouraging signs that
the drought may be ending. Eritrea currently suffers from large structural
fiscal deficits caused by high levels of spending on defense and on emergency
reconstruction and humanitarian programs, which have resulted in the stock of
debt rising to unsustainable levels. Exports have collapsed, mainly owing to
the border conflict with Ethiopia and border tensions with Sudan; however,
large and persistent transfers from Eritreans living abroad have cushioned
the impact.

In Massawa, the port has been rehabilitated and is being developed. In
addition, the government has begun to export fish and sea cucumbers from the
Red Sea to markets in Europe and Asia. A newly constructed airport in Massawa
capable of handling jets could facilitate the export of high-value perishable
seafood.

DEFENSE
During the war for independence, the EPLF fighting force grew to almost
110,000 fighters, about 3% of the total population of Eritrea. In 1993,
Eritrea embarked on a phased program to demobilize 50%-60% of the army, which
had by then shrunk to about 95,000. During the first phase of demobilization
in 1993, some 26,000 soldiers--most of who enlisted after 1990--were
demobilized. The second phase of demobilization, which occurred the following
year, demobilized more than 17,000 soldiers who had joined the EPLF before
1990 and in many cases had seen considerable combat experience. Many of these
fighters had spent their entire adult lives in the EPLF and lacked the
social, personal, and vocational skills to become competitive in the work
place. As a result, they received higher compensation, more intensive
training, and more psychological counseling than the first group. Special
attention has been given to women fighters, who made up some 30% of the
EPLF's combat troops. By 1998, the army had shrunk to 47,000.

The moves to demobilize were abruptly reversed after the outbreak of war with
Ethiopia over the contested border. During the 1998-2000 war, which is
estimated to have resulted in well over 100,000 casualties on the two sides,
Eritrea's armed forces expanded to close to 300,000 members, almost 10% of
the population. This imposed a huge economic burden on the country. The
International Monetary Fund (IMF) estimates that the economy shrank by more
than 8% in 2000, although it rebounded somewhat in 2001. The war ended with a
cessation of hostilities agreement in June 2000, followed by a peace
agreement signed in December of the same year. A UN peacekeeping mission, the
UN Mission in Ethiopia and Eritrea (UNMEE), was established and monitors a
25-kilometer-wide Temporary Security Zone separating the two sides. Per the
terms of the cessation of hostilities agreement, two commissions were
established: one to delimit and demarcate the border and the other to weigh
compensation claims by both sides. The Eritrea-Ethiopia Boundary Commission
announced its decision in April 2002. Demarcation was expected to begin in
2003 but has been delayed by a stalemate between Ethiopia and Eritrea.

The government has been slow to demobilize its military after the most recent
conflict, although it recently formulated an ambitious demobilization plan
with the participation of the World Bank. A pilot demobilization program
involving 5,000 soldiers began in November 2001 and was to be followed
immediately thereafter by a first phase in which some 65,000 soldiers would
be demobilized. This was delayed repeatedly. In 2003, the government began to
demobilize some of those slated for the first phase. The World Bank has not
yet approved the demobilization program, and funding for it from other donors
is uncertain.

U.S. military cooperation with Eritrea, which was suspended following the
outbreak of hostilities with Ethiopia and a UN embargo on military
cooperation with either side, has resumed on a modest basis.

FOREIGN RELATIONS
Eritrea is a member of the African Union (AU) and the Common Market of
Eastern and Southern Africa (COMESA). It has had close relations with the
United States, Italy, and several other European nations, including the
United Kingdom, Germany, Norway, and the Netherlands, which have become
important aid donors. Relations with these countries became strained as a
result of the 2001 government crackdown against political dissidents and
others, the closure of the independent press, and by the expulsion of the
Italian Ambassador to Eritrea. Efforts have been made to repair relations
with donor countries.

Eritrea's relations with its neighbors other than Djibouti also are somewhat
strained. Although a territorial dispute with Yemen over the Haynish Islands
was settled by international arbitration, tensions over traditional fishing
rights with Yemen resurfaced in 2002. Relations with Sudan also were colored
by occasional incidents involving the extremist group, Eritrean Islamic Jihad
(EIJ)--which the Eritrean Government believes is supported by the National
Islamic Front government in Khartoum--and by continued Eritrean support for
the Sudanese opposition coalition, the National Democratic Alliance.

U.S.-ERITREAN RELATIONS
The U.S. consulate in Asmara was first established in 1942. In 1953, the
United States signed a mutual defense treaty with Ethiopia. The treaty
granted the United States control and expansion of the important British
military communications base at Kagnew near Asmara. In the 1960s, as many as
4,000 U.S. military personnel were stationed at Kagnew. In the 1970s,
technological advances in the satellite and communications fields were making
the communications station at Kagnew increasingly obsolete. In 1974, Kagnew
Station drastically reduced its personnel complement. In early 1977, the
United States informed the Ethiopian Government that it intended to close
Kagnew Station permanently by September 30, 1977. In the meantime, U.S.
relations with the Mengistu regime were worsening. In April 1977, Mengistu
abrogated the 1953 mutual defense treaty and ordered a reduction of U.S.
personnel in Ethiopia, including the closure of Kagnew Communications Center
and the consulate in Asmara. In August 1992, the United States reopened its
consulate in Asmara, staffed with one officer. On April 27, 1993, the United
States recognized Eritrea as an independent state, and on June 11, diplomatic
relations were established, with a chargé d'affaires. The first U.S.
Ambassador arrived later that year.

The United States has provided substantial assistance to Eritrea, including
food and development. In FY 2004, the United States provided over $65 million
in humanitarian aid to Eritrea, including $58.1 million in food assistance
and $3.47 million in refugee support.

U.S. interests in Eritrea include consolidating the peace with Ethiopia,
encouraging progress toward establishing a democratic political culture,
supporting Eritrean efforts to become constructively involved in solving
regional problems, assisting Eritrea in dealing with its humanitarian and
development needs, and promoting economic reform.

Principal U.S. Officials
Ambassador--Scott H. DeLisi
Deputy Chief of Mission--Sue K. Brown
Political/Military Officer--Joey Hood
Consular Officer--Elaine French
Management Officer--Michael McCarthy
Public Affairs Officer--George W. Colvin, Jr.
USAID Director--Michael Sarhan
Defense Attache--vacant
Security Assistance Officer--MAJ Tony Curtis

The address of the U.S. Embassy in Eritrea is 28 Franklin D. Roosevelt
Street, P.O. Box 211, Asmara (tel. 291-1-120-004; fax: 291-1-127-584).