Arete Volume One Fall 2022

Αρετή (Arete) Journal of Excellence in Global Leadership | Vol. 1 No. 1 | 2022

it’s a coastal country, Djibouti holds a globally strategic location. Hughes et al. (2018) found that localized response to global policies like the SDGs was influenced by neighboring governments; successes were adopted by those in proximity to witness the process. Given Djibouti’s central global positioning, its ability to successfully implement SDG targets has the potential to influence surrounding countries to follow suit. The service industry accounts for 80% of Djibouti’s GDP; its port and related infrastructure (Oil and water pipelines and railway) are an important source of revenue for the country. Located beside the Bab el-Mandeb strait, Djibouti has unparalleled access to the Suez Canal trade route —one of the world’s busiest shipping routes. Global telecommunications fiber-optic cable lanes run concurrently along the shipping lanes; three international cables meet south of the Bab el-Mandeb strait adding an additional dimension of importance to the country’s position (Styan, 2020b) . The Port of Djibouti is key to the country’s geopolitical and strategic position. Although Djibouti has few traditional natural resources, Djibouti’s port gives the country some level of control over others’ resources— increasing their social and econom ic power (Rice, 2007). Landlocked Ethiopia is equally reliant on Djibouti’s port for access to the sea. The railroad connecting Ethiopia and Djibouti delivers 90% of Ethiopia’s trade. Djibouti’s geographic location also makes it an attractive locale for crisis mitigation and one of the reasons foreign military installations are interested in Djibouti. Djibouti is host to more foreign military bases than any other country in the world (Boujrada, 2018). The countries with bases in Djibouti include France, Italy, Japan, China, and the United States. France has multiple bases and hosts contingents from Germany and Spain (CIA, 2022). International relations associated with the militaries extend beyond brick-and-mortar bases to include Egypt, India, Iran, Israel, South Korea, Russia, Saudi Arabia, Turkey, the UAE, and the UK (refer to Melvin, 2019). Foreign military base rental fees alone contribute an estimated $125 million annually to the country’s revenue (Blanchard, 2022). The military bases also of fer security and protect the busy trade routes from piracy. Active military presence creates a relatively safe and stable environment compared to neighboring countries. The pocket of relative safety also results in transient populations. More than 35,000 refugees and asylum seekers from Yemen, Somalia, and other neighboring states live in camps in Djibouti (Blanchard, 2022). Geological Advantages Throughout this study the descriptive term traditional has been used relative to natural resources . The need to specify the term reflects advances in socioeconomic development. As science, technology, and societies strive for cleaner energy processes, the types of resources used to achieve those processes have expanded. Traditional resources from the African continent included gold, diamonds, cobalt, copper, etc. Djibouti lacks natural resources in the traditional thinking of, and importance given to, natural resources. The exploration of renewable energy sources such as wind, solar, or geothermal energies has not only increased the need

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