LYCOS RETRIEVER 
Eritrea: East Africa
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Eritrea has adopted in principle the full panoply of free market disciplines recommended by the IMF - but these remain somewhat superfluous in an economy which is largely on a military footing, supported by agriculture. The army itself, 200,000 strong, is the largest in Africa in absolute terms and the largest in the world measured as a percentage of population.
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Eritrea has accepted an OAU peace plan under which both countries would withdraw from disputed territory, but Ethiopia has questioned the technical arrangements, thereby continuing to sabotage the peace process. True stability can only come in the Horn of Africa if Ethiopia will show real commitment to peace.
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Unlike other African countries, Eritrea spends little on the trappings of power. President Isaias is informal, preferring open-neck shirts and occasionally having a drink in a local bar across the street from his modest presidential offices.
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