- Change in Djibouti’s economic and strategic options has been driven by four factors: the Ethiopian–Eritrean war of 1998–2000, the impact of Ethiopia's economic transformation and growth upon trade; shifts in US strategy since 9/11, and the upsurge in piracy along the Gulf of Aden and Somali coasts.
- With the expansion of the US AFRICOM base, the reconfiguration of France's military presence and the establishment of Japanese and other military facilities, Djibouti has become an international maritime and military laboratory where new forms of cooperation are being developed.
- Djibouti has accelerated plans for regional economic integration. Building on close ties with Ethiopia, existing port upgrades and electricity grid integration will be enhanced by the development of the northern port of Tadjourah.
- These strategic and economic shifts have yet to be matched by internal political reforms, and growth needs to be linked to strategies for job creation and a renewal of domestic political legitimacy.
Author David Styan discusses his paper with The Economist.