Resources and Trade

Abstract

Situated along the Red Sea, Eritrea has over 600 miles of coastline making it ideally located for trade. While, in its early history the region played an important role in connecting trade routes along the Horn, Red Sea, and connecting the surround regions to the Arab world, the country has not developed a functioning economy as one might expect with the variety of resources it possesses within its borders. The various reasons for this lack of development are further discussed in the blog.

                                                                        Summary

Eritrea is rich with salt, copper, gold, silver, zinc as well as other minerals. The country has been exploited for its resources at various times throughout its history. Situated along the Red Sea, Eritrea has over 600 miles of coastline making it ideally located for trade. Historically, several trade posts along the coast connected Eritrea to larger regional trade routes. Trade was common throughout the Horn, Eritrea’s trade commerce has been strongest with Arabian nations dating back centuries. Evidence of trade in the region is documented in the Periplus of the Erythraean Sea which has been dated to the 1^st century A.D. in which the ports of Adulis and Avalites, now modern day near modern day Masawwa and Assab are referenced as key trade posts.

While, in its early history the region played an important role in connecting trade routes along the Horn, Red Sea, and connecting the surround regions to the Arab world, the country has not developed a functioning economy as one might expect with the variety of resources it possesses within its borders. “These failures can be attributed to a wide-range of causes including historical factors, socio-political dynamics, ethnic based rivalries, internal mismanagement, and debilitating external meddling” (Amahazion 2013).

While under Italian colonial rule, the country had a briefly prosperous economy with textile, food and beverage, as well as manufacturing taking center stage. However, the country’s flourishing economy was not to last; thirty years of revolution destroyed any semblance of commerce and trade. Ports were blocked, and trade with Eritrea and neighboring nations became difficult.  More recently in the country’s history, the Eritrean government has created policies in an effort to develop the economy; while situated in an ideal geographic location for trade, and harboring a wealth of resources the country as not been able to secure stability.

In a recent article the continued problems that plague the country and limit its ability to develop into a stable and developed nation are discussed citing, “challenges such as food security and poverty are immediate areas the country continues to focus on, while the prolonged illegal occupation of Eritrean land by Ethiopia represents an unnecessary and harmful distraction from broader development goals” (Amahazion 2013).

Britannica. Eritrea. http://www.britannica.com/EBchecked/topic/191577/Eritrea/37654/Religion#toc283087 (accessed April 8, 2015).

“Eritrea: National Resources and Development”, http://www.tesfanews.net/eritrea-natural-resources-and-development/. Accessed April 8, 2015