Disputes - international:
Eritrea and Ethiopia agreed to abide by the 2002 Eritrea-Ethiopia Boundary Commission's (EEBC) delimitation decision, but neither party responded to the revised line detailed in the November 2006 EEBC Demarcation Statement; the undemarcated former British administrative line has little meaning as a political separation to rival clans within Ethiopia's Ogaden and southern Somalia's Oromo region; Ethiopian forces invaded southern Somalia and routed Islamist Courts from Mogadishu in January 2007; "Somaliland" secessionists provide port facilities in Berbera and trade ties to landlocked Ethiopia; civil unrest in eastern Sudan has hampered efforts to demarcate the porous boundary with Ethiopia
Refugees and internally displaced persons:
refugees (country of origin): 66,980 (Sudan); 16,576 (Somalia); 13,078 (Eritrea)
IDPs: 200,000 (border war with Eritrea from 1998-2000, ethnic clashes in Gambela, and ongoing Ethiopian military counterinsurgency in Somali region; most IDPs are in Tigray and Gambela Provinces) (2007)
Illicit drugs:
transit hub for heroin originating in Southwest and Southeast Asia and destined for Europe, as well as cocaine destined for markets in southern Africa; cultivates qat (khat) for local use and regional export, principally to Djibouti and Somalia (legal in all three countries); the lack of a well-developed financial system limits the country's utility as a money laundering center