Ethiopia and Eritrea embrace peace

This week’s formal reopening of the border between Ethiopia and Eritrea cements a stunning reconciliation.


This week's formal reopening ofthe border between Ethiopia and Eritrea cements a "stunning reconciliation", says The Daily Telegraph. Relations between the former rivals have improved rapidly since April, when Abiy Ahmed, Ethiopia's new prime minister, said that his country would "fully embrace a peace deal that ended a 1998-2000 border war that killed tens ofthousands".

The reopening is the latestexample of how Ahmed "has pursued an aggressive, reformist agenda" that seeks "torewrite Ethiopia's old, authoritarian social contract and unite the country's fractured society", says Michael Woldemariam in Foreign Affairs. Seeking peace is just another step in the drive for "national reconciliation" although the move is also "driven by hard realities". Ethiopia's landlocked position means that "its economic future depends on integrating its economy with those of its neighbours".

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Don't get carried away, says the Economist. Ahmed enjoys 90% approval ratings and something of a "personality cult", but "there are signs thathis honeymoon may beending" as shown by an assassination attempt in June. Recently, "federal troops clashed with local security forces in Ethiopia's Somali region, triggering tit-for-tat killings and displacing thousands", while the state's response to rising ethnic violence has been "feeble".

Even Ahmed's reformist credentials don't look entirely robust: he "never gives interviews and has yet to hold apress conference", while "non-state outlets complain that they are no longer invited to official press briefings".




How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019

Brace yourself – the global economy might be healthier than it looks

Investors have been worried about a global recession since the start of the year. But the latest indicators suggest things might not be so bad. John S…
2 Apr 2019

The charts that matter: the Powell put is in place

The Federal Reserve has done not so much a U-turn as a handbrake turn on monetary policy this week. John Stepek looks at how that’s affected the globa…
2 Feb 2019
EU Economy

Investors needn’t fear the rise of Europe’s green parties

Green parties across Europe are finding the centre-right to be natural allies. That will be great for business, says Matthew Lynn.
12 Jan 2020

Most Popular


Currency Corner: how high can the pound go against the euro in 2020?

In the month in which we should finally leave the European Union, Dominic Frisby takes a look at the pound vs the euro and asks just how high sterling…
13 Jan 2020

Money Minute Wednesday 15 January: UK inflation and house prices

In today’s Money Minute, we look ahead to the latest UK inflation and house price figures, plus we have Germany’s GDP data for 2019.
15 Jan 2020

Money Minute Thursday 16 January: a batch of company results

Today's Money Minute looks ahead to results from a host of UK companies, plus the latest unemployment figures from the US.
15 Jan 2020

Money Minute Friday 17 January: UK weakness likely to continue

Today's Money Minute previews UK retail sales figures the UK, inflation data from Europe and industrial production from the US.
17 Jan 2020