Country Report Djibouti November 2006

Economic policy: High food prices and education costs hurt the poor

In its most recent report, on October 20th, the Famine Early Warning Systems Network (FEWS Net), funded by the US Agency for International Development (USAID), highlighted that the main problem for the urban poor was the continued rise in prices of essential food and non-food items, compounded by the resumption of education-related expenses following the reopening of schools. It said that the situation was most acute in the poor quarters of Djibouti city, such as Balbala and PK 12. The food security situation is improving in most pastoral areas, but FEWS Net reported that there are still problems in the north-west, because pastoralists there were forced to sell their livestock during the drought. Their situation is expected to remain precarious for at least six months.

© 2006 The Economist lntelligence Unit Ltd. All rights reserved
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