Ethiopian-Eritrean Relations: Reading the balance sheet

This report by the Institute for Security Studies analyzes the fragile peace between Ethiopia and Eritrea following the 2000 Algiers Peace Accord. It focuses on the failure to physically demarcate the border, specifically the symbolic and contested town of Badme, and the lack of political dialogue between the two nations, which the author argues creates a high risk of renewed conflict.

• The Algiers Peace Accord, signed on 12 December 2000, ended a two-year border war and established a Border Commission to delimit and demarcate the international border based on colonial treaties from 1900, 1902, and 1908.
• The Border Commission's April 2002 ruling placed the symbolic town of Badme within Eritrean territory, a decision Ethiopia has rejected as a "blatant miscarriage of justice" and "wrong and unjust."
• Physical demarcation of the border has been stalled due to opposition from the Ethiopian government and specifically the Regional State of Tigray, which currently administers Badme and has threatened to block the commission's officials.
• Badme holds immense symbolic importance because it is where the war began; the country awarded the town is perceived as having been "right about the war."
• Relations between the two countries remain practically nonexistent, characterized by a "cold peace" with no political dialogue, the closure of the Ethiopian embassy in Asmara in 2003, and mutual support for opposition groups.
• The conflict has caused significant economic damage: Ethiopia lost its most direct outlet to the sea, increasing port costs, while Eritrea lost its largest export destination and saw a decline in foreign currency reserves.

APA

Dersso, S. A. (2004). Ethiopian-Eritrean Relations: Reading the balance sheet. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/ETHERITJAN04.PDF

Chicago

Dersso, Solomon A. Ethiopian-Eritrean Relations: Reading the balance sheet. Institute for Security Studies, 2004. https://issafrica.s3.amazonaws.com/site/uploads/ETHERITJAN04.PDF.

Wikipedia

{{cite report |last1=Dersso |first1=Solomon A. |title=Ethiopian-Eritrean Relations: Reading the balance sheet |publisher=Institute for Security Studies |date=13 January 2004 |url=https://issafrica.s3.amazonaws.com/site/uploads/ETHERITJAN04.PDF |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dersso2004ethiopianeritrean, author = {Dersso, Solomon A.}, title = {{Ethiopian-Eritrean Relations: Reading the balance sheet}}, institution = {Institute for Security Studies}, year = {2004}, month = jan, url = {https://issafrica.s3.amazonaws.com/site/uploads/ETHERITJAN04.PDF}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }