Since Eritreas independence, Eritrea and Ethiopia had disagreed about the exact demarcation of their borders, and in May 1998, Eritrea initiated border clashes that developed into a full-scale war that left more than 80,000 dead and further destroyed both countries ailing economies. After a costly and bloody two-year war, a formal peace agreement was signed in Dec. 2000. The United Nations provided more than 4,000 peacekeeping forces to patrol the buffer zone between the two nations. An international commission defined a new border between the two countries in April 2002. Ethiopia disputed the new border, escalating tensions between the two countries once again. In Dec. 2005, an international Court of Arbitration ruled that Eritrea had violated international law in attacking Ethiopia in the 1998 war.

In 2003, in an effort to solve its chronic shortage of food and to lessen its dependence on international aid, Ethiopia began relocating 2 million farmers from their parched highland homes to areas with more fertile soil in the western part of the country. The largest relocation program in African history, however, has turned into a disaster. The majority of those resettled are still unable to support themselves, and, most alarmingly, much of the fertile regions where the farmers have been resettled are rife with malaria.