Revitalizing Eritrea's Development Strategy
It is no exaggeration to say that Eritrea is at a cross-roads today. The war with Ethiopia meant that the development plans and programs gradually put into place since independence were disrupted. The signing of the peace agreement in December 2000...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/06/10262206/revitalizing-eritreas-development-strategy http://hdl.handle.net/10986/15533 |
| Summary: | It is no exaggeration to say that
Eritrea is at a cross-roads today. The war with Ethiopia
meant that the development plans and programs gradually put
into place since independence were disrupted. The signing of
the peace agreement in December 2000, and the ruling of the
boundary commission on April 13, 2002, are all-important,
but it is clear that the conditions facing Eritrea are
significantly more difficult than prior to the war. Not only
are the direct costs of the war very high, but the break in
economic relations with Ethiopia and the loss of investor
confidence will continue to exact a price for some years to
come. It is in this context that the Government has decided
to review its development strategy and has asked for World
Bank input into this process. In response, the Bank has
prepared this Country Economic Memorandum (CEM). It follows
the first CEM on Eritrea (World Bank 1994) that provided a
Bank and donor input as independent Eritrea refined its
development strategy. The CEM is divided into three
chapters. The first is a review of Eritrea's
development experience since independence, organized along
the lines of the recommendations of the previous CEM. These
recommendations covered nine major areas ranging from
achieving macroeconomic stability to improving the
environment. The second chapter is a review of government
expenditure in Eritrea. A notable feature of this first Bank
effort to review the public expenditures of Eritrea is an
attempt to assess the composition of expenditures in Eritrea
by reassigning them from original budget heading to a
programmatic classification. The third chapter outlines a
learning strategy for Eritrea. This is not meant to replace
Eritrea's existing strategy. The learning strategy is
meant to supplement the existing strategy based on the
experience of actual implementation over the last ten years,
but also on Eritrea's post-war reality. |
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