Strategic Location and Neopatrimonialism in Djibouti

Abstract

This thesis discusses how Djibouti, a country with minimal resources, survives by using its geostrategic location. The money Djibouti uses to survive is obtained through three revenue earners: The International Port of Djibouti, Rents from Foreign Military Bases, and Djibouti–Ethiopia relations. The nature of the relationship between the government and these three sectors was described, along with the political structure of the patrimonial government and its relation to the country’s larger economic development. I also examined the political side of Djibouti to better ascertain its neopatrimonial role and how that adversely affects the economy. I then examined public, political, and economic challenges of the country in the international and public contexts. This analysis of the economic and political system revealed how neopatrimonialism and Djibouti’s role as a rentier state allow sustainability of the country despite minimal natural resources. Last, I assessed Djibouti’s potential in renewable resources and how those resources could pull Djibouti away from a neopatrimonial institution to a true democratic government.