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War-Torn Eritrean Economy - Some Issues and Trends

Man and Development, Vol. 29, No.1, pp.171-181, March 2007

10 Pages Posted: 27 Oct 2008 Last revised: 7 May 2015

Prof. Ravinder Rena

North-West University; Polytechnic of Namibia; University of the Western Cape; Papua New Guinea University of Technology

Date Written: March 2007


The three decades of armed struggle, the subsequent drought, and deliberate policies of neglect and mismanagement by the last two regimes in Eritrea made growth of the Eritrean economy practically impossible. After independence, the country achieved a steady growth for some years. However, due to the border conflict with Ethiopia, the economy was characterised by severe macroeconomic imbalances and unusually high level of public expenditure. Poverty and inflation also increased many folds. Both domestic and external public debts reached unsustainable levels. Thus, an attempt is made in this paper to delve into some important trends of the Eritrean economy before and after 1998. The paper highlights some of the key economic issues like education, health, infrastructure, unemployment, poverty etc., and provides some concluding remarks.

Keywords: War Torn Eritrean Economy, Economic growth, Human Development, Economic Integration

JEL Classification: E2; E6; E24

Suggested Citation

Rena, Prof. Ravinder, War-Torn Eritrean Economy - Some Issues and Trends (March 2007). Man and Development, Vol. 29, No.1, pp.171-181, March 2007. Available at SSRN:

Ravinder Rena (Contact Author)

North-West University ( email )

Hoffman Street
Potchefstroom, 2520
South Africa


Polytechnic of Namibia ( email )

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Private Bag 13388
Windhoek, Khomas 13388


University of the Western Cape ( email )

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Economics, Faculty of Economic and Management Scie
Bellville, Western Cape 7535
South Africa
0027219593624 (Phone)
0027219593201 (Fax)


Papua New Guinea University of Technology ( email )

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Lae, Morobe 411
Papua New Guinea


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