Background: The French Territory of the Afars and the Issas became Djibouti in 1977. A peace accord in 1994 ended a three-year uprising by Afars rebels.
Natural hazards: earthquakes; droughts; occasional cyclonic disturbances from the Indian Ocean bring heavy rains and flash floods
Geography Note: strategic location near world's busiest shipping lanes and close to Arabian oilfields; terminus of rail traffic into Ethiopia; mostly wasteland
Political parties and leaders: Democratic National Party or PND [ADEN Robleh Awaleh]; Democratic Renewal Party or PRD [Mohamed Jama ELABE]; People's Progress Assembly or RPP [Hassan GOULED Aptidon] - the governing party
International organization participation: ACCT ACP AfDB AFESD AL AMF ECA FAO G-77 IBRD ICAO ICFTU ICRM IDA IDB IFAD IFC IFRCS IGAD ILO IMF IMO Intelsat (nonsignatory user) Interpol IOC ITU NAM OAU OIC OPCW UN UNCTAD UNESCO UNIDO UPU WFTU WHO WMO WToO WTrO
Flag description: two equal horizontal bands of light blue (top) and light green with a white isosceles triangle based on the hoist side bearing a red five-pointed star in the center
Economy overview: The economy is based on service activities connected with the country's strategic location and status as a free trade zone in northeast Africa. Two-thirds of the inhabitants live in the capital city the remainder being mostly nomadic herders. Scanty rainfall limits crop production to fruits and vegetables and most food must be imported. Djibouti provides services as both a transit port for the region and an international transshipment and refueling center. It has few natural resources and little industry. The nation is therefore heavily dependent on foreign assistance to help support its balance of payments and to finance development projects. An unemployment rate of 40% to 50% continues to be a major problem. Inflation is not a concern however because of the fixed tie of the franc to the US dollar. Per capita consumption dropped an estimated 35% over the last seven years because of recession civil war and a high population growth rate (including immigrants and refugees). Also renewed fighting between Ethiopia and Eritrea has disturbed normal external channels of commerce. Faced with a multitude of economic difficulties the government has fallen in arrears on long-term external debt and has been struggling to meet the stipulations of foreign aid donors.
Telephone system: telephone facilities in the city of Djibouti are adequate as are the microwave radio relay connections to outlying areas of the country