Lying on the shores of the Red Sea, Eritrea's landscape is one of rugged mountains, bush, and desert. A former Italian colony later annexed by Ethiopia, Eritrea fought a long war to win independence in 1993. Like its southern neighbor, Eritrea is prone to recurring droughts and the threat of famine. War with Ethiopia in 1998–2000 brought heavy losses on both sides, until the signing of a comprehensive peace agreement in December 2000.

Tigrinya-speakers, mainly Orthodox Christians, form the largest of Eritrea's nine main ethnic groups. A strong sense of nationhood has been forged by the 30-year struggle for independence. Women played an important role in the war; from 1973, 30,000 fought alongside men, some in positions of command. The nomadic peoples of the Danakil desert remain fiercely independent. Over 80% of people are subsistence farmers.

Strengths

Resourceful, hard-working population. Strategic position on Red Sea – tourism and transportation. Potential for mining and oil industry. Government committed to cutting dependence on food aid.

Weaknesses

Legacy of war – infrastructure and equipment destroyed. Port of Massawa heavily bombed. Dependent on aid. Most of population living at subsistence level. Susceptibility to drought and famine. Some 750,000 refugees have now returned.

A former Italian colony, Eritrea was dominated by Ethiopia in a federation set up in 1952. Ethiopia annexed the country in 1961, prompting a long secessionist struggle. The Eritrean People's Liberation Front (EPLF) and its Tigrean allies helped defeat the Ethiopian regime in 1991. A referendum held in 1993 overwhelmingly supported independence.

Pending multiparty elections, the country is run by a core leadership from the EPLF (now the PFDJ), with the National Assembly only convening sporadically. The 1997 constitution forbids parties based on religious or ethnic affiliations. Issaias Afewerki, a Christian, has been careful to include Muslims in his transitional cabinet. He lashed out at political opponents in 2001, and faced unprecedented criticism even from within the PFDJ.

Eritrea's secession represented the first major redrawing of borders established by Africa's colonizers. Attracting Western and Arab aid for reconstruction is a priority. A border conflict with Ethiopia erupted into open warfare in 1998. Under the 2000 UN-sponsored peace accord, a new border is to be established. In February 2001 Ethiopia completed its troop withdrawal. Work started on border demarcation in spring 2002.

Defense expenditure is massive. The 50,000-strong permanent army (of whom about a third are women) is swelled by vast numbers of conscripts. Troops were being reintegrated into the economy on "food for work" schemes until the latest war with Ethiopia, which inflicted heavy losses. Mass demobilization was restarted in 2002.

Eritrea has substantial copper reserves, and lesser ones of silver, zinc, and gold. High-quality silica, granite, and marble deposits could be exploited. Onshore and offshore oil deposits are believed to exist, but exploration work is at an early stage. There is potential for power generation from geothermal sources.

Deforestation and soil erosion are major problems. The Ethiopian army uprooted trees to destroy the cover they provided for Eritrean soldiers. Since 1991, 22 million seedlings have been grown in a replanting scheme. The Red Sea coast is a conservation priority.

All transportation infrastructure requires massive investment. Ports have potential as transit points for Ethiopia.

The risk of famine overrides normal health concerns. Eritreans built their own hospitals during the independence struggle. Health provision is basic.

Very few schools functioned during the war. There is one university. In an attempt to reduce potential ethnic tension, all children above the age of 11 are being taught in English.

Crime has not been a problem since independence. The judiciary and police answer to the PFDJ. There are a number of political prisoners.

Over 80% of Eritrea's population are subsistence farmers. A few of the 150,000 refugees who fled to Arab and Western countries have built up some personal savings.

There is currently very little tourism, but considerable long-term potential, especially along the Red Sea coast, with its underwater attractions, and in the spectacular Danakil depression. Guides are essential.

British military rule replaced Italian colonial authority in 1941.

• 1952 Ethiopia absorbs Eritrea.
• 1961 Beginning of armed struggle.
• 1987 EPLF refuses offer of autonomy; fighting intensifies.
• 1991 EPLF takes Asmara.
• 1993 Formal independence.
• 1998 Border war with Ethiopia.
• 2000 OAU peace treaty signed.
• 2001 Ethiopia completes troop withdrawal.
• 2002 Border demarcation begins.