Ethiopia, Africa: The nation continues to be torn with social, political and economic crises:

  1. a) Hostilities with neighbors Eritrea and Somalia cripple efforts to revive and modernize the country. The Eritrean war was immensely costly in money and lives for no real gain. Embroilment in the civil conflict in Somalia could become a huge expense.
  2. b) Ethnic fragmentation remains a possibility. Regionalization brings greater autonomy to the major ethnic groups – Amhara, Tigrinya, Oromo, Somali and Afar. Some scenarios could see federal power break down and tribalism increase.

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