PART 1: GENERAL INFORMATION I. BACKGROUND AND SOCIO-ECONOMIC ASPECTS 1. HISTORICAL OVERVIEW 10. In ancient times, the current territory of the Republic of Djibouti was part of a geographical region that historians called “the land of Punt”, which was a peripheral trade centre of ancient Egypt reputed for its incense and myrrh. 11. Like many African countries, its contemporary history is marked by the phenomenon of colonialism with the installation of a French base in Obock (1862). In 1896, the colonial administration moved to Djibouti-city to develop port activities along the French Somali Coastland (CFS). The impact of the railway and salt trade reinforced its status as capital city of the colony. 12. The first political leaders were from trade unions though their influence on key decisions regarding the colony, notably providing the colony with its own currency, the Djiboutian Franc (DJF) pegged to the dollar (1949), was only felt from the Second World War. 13. Despite growing claims to independence during the ‘50s and ‘60s, the colonial system prevailed by means of violent repressions, electoral manipulations (1958 and 1966 referendums) and imposed new statutes on the colony. The French Territory of the Afars and the Issas (TFAI) was hence established in 1967. The country gained independence in 1977 through joint actions of political movements and armed organizations such as the Front for the Liberation of the Somali Coast (FLCS) with support from international institutions (UN) and regional institutions such as the Organisation of African Unity (OAU) and the Arab League. 14. Hassan Gouled took up the reins of power in a context of great regional instability seriously inhibiting the effective implementation of his development policy. The Horn of Africa is deeply affected by conflicts and crises in Somalia and Ethiopia and their populations take refuge in Djibouti. 15. The civil war opposing the regular army to the Front for the Restoration of Unity and Democracy (FRUD) strongly affected the country’s socio-economic situation as early as 1990 (loss of human lives, deterioration of infrastructure and public finances…). 16. Following the 1994 peace accords, a government of national unity was established and FRUD members joined this government thereby making it de facto a legal political party. Forces were demobilized and war-affected zones rehabilitated. 17. The coming into power of Ismail Omar Guelleh (1999) is a new step towards greater reconciliation and giving new impetus to the democratization process as well as national development. 9