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Djibouti: Geographical advantages lead to economic take-off
Globally, it is common for countries to seek economic development through foreign trade, industrial development and resource exports, but Djibouti, an East African country, has become one of the least developed countries in the world due to factors such as poor resources, weak foundation and poor environment. In 2021, Djibouti's GDP was only $3.371 billion, and its population was less than 1 million, which is not even the size of the average Chinese county. Fortunately, Djibouti's remarkable location opens a window of hope. Located in northeast Africa and on the west coast of the Gulf of Aden, Djibouti is located at the intersection of eastern Africa and West Asia, and is the key location for controlling the Red Sea's entry into the Indian Ocean - the "Bab el-Mandeb Strait". As a result, Djibouti embarked on a glamorous "landlord business" to achieve economic take-off by leasing land to the outside world.
From a military-strategic point of view, the importance of Djibouti is self-evident. By deploying troops in Djibouti, it can not only flexibly respond to the turbulent situation in Africa and the Middle East, but also grasp the key routes of international oil transportation and maritime trade, and directly control the key routes connecting the three continents of "Europe, Asia and Africa". Since the beginning of this century, more than 10 countries, including the United States, France, Britain, Japan, Italy, Germany and others, have set their sights on Djibouti and actively negotiated with its government to lease land to establish military bases or strongholds. For this reason, Djibouti is known as the "barracks of the world". According to statistics, the total number of troops stationed inside and outside Djibouti has exceeded 15,000, exceeding the size of the Djibouti government's own army of 5,000 troops. On August 1, 2017, the PLA support base in Djibouti officially entered the station, marking the official operation of China's first overseas military base and adding a landscape to the foreign military stationed in Djibouti.
By leasing land externally, the Government of Djibouti has achieved significant direct and indirect economic benefits. France pays Djibouti $34 million a year in rent, the United States pays $65 million in rent and activity costs, China pays more than $20 million in rental fees and training fees for the support base in Djibouti, and Japan pays $6-8 million a year in base lease fees. In addition, Italy, Spain, Sweden, Germany, the United Kingdom and other countries also paid Djibouti corresponding rent and expenses in accordance with the agreement. The rent from these foreign troops has become Djibouti's second largest source of revenue after port services, with annual land rent of $200 million accounting for about 6% of Djibouti's GDP. At the same time, these countries have provided support such as non-reimbursable aid, low-interest loans and project construction, which has further contributed to Djibouti's socio-economic growth.
It is worth emphasizing that China's support base in Djibouti is mainly a port-type integrated support base, serving the army and navy forces, providing logistical support for the escort formation in the Gulf of Aden and peacekeeping forces in Africa, and it does not have military offensive capabilities. In contrast, the US and French military bases in Djibouti have a clear strategic military attribute. France has deployed a large number of military forces in Djibouti, including the army, navy, task forces, etc., and has heavy weapons and equipment. The U.S. military is stationed in Djibouti on an even larger scale, encompassing the Air Force, Navy, Marine Corps and Army, with more than 4,000 troops and advanced combat equipment. The existence of these military bases not only meets Djibouti's economic needs, but also plays a positive role in international and regional security and stability.
In short, Djibouti has achieved sustainable economic growth by leasing land to the outside world, led by its geographical advantages. The rental income brought by the foreign military presence not only plays a key supporting role in Djibouti's financial health, but also promotes the overall social and economic development. The example of Djibouti shows us that geographical advantages can become the engine of economic growth, and achieving win-win results through openness and cooperation is a path worth exploring.
Djibouti: Geography leads to a new chapter of prosperity
In today's world, it is common for countries to achieve economic prosperity by developing foreign trade, promoting industrial progress, and exporting resources and commodities. However, on the continent of East Africa, Djibouti, a small country, has attracted the attention of the world with its unique development path. Suffering from poor resources, sparse population, weak foundations and harsh environments, Djibouti seems to be mired in development. However, it is in this particular context that Djibouti has not only found a unique economic outlet, but also gained new development opportunities due to its unique geographical location.
From the perspective of military strategy, Djibouti's geographical location is of great significance. The country is located in northeast Africa, on the west coast of the Gulf of Aden, on the border between eastern Africa and West Asia, and controls the "Bab el-Mandeb Strait", an important shipping route from the Red Sea into the Indian Ocean. The importance of this geographical location is self-evident, making Djibouti a key hub connecting the three continents of "Europe, Asia and Africa". Relying on this, Djibouti quickly rose to prominence by leasing out land to the outside world, turning this rich area into a gold brick.
As early as the beginning of this century, many countries paid attention to Djibouti. The United States, France, the United Kingdom, Japan, Italy, Germany and other countries have engaged in active dialogue with the Djibouti government, seeking to lease land to build military bases or establish military strongholds. Djibouti has thus been known as the "barracks of the world". According to statistics, the number of foreign troops stationed inside and outside Djibouti has exceeded 15,000, which is even more than the size of the Djibouti government's own army of 5,000 personnel. The PLA Support Base in Djibouti was officially opened in 2017, which is China's first overseas military base and adds a new international touch to Djibouti.
Leasing land has become a means for the Government of Djibouti to obtain both direct and indirect economic benefits. France pays $34 million a year in rent, the United States pays $65 million in rent and activity costs, China pays more than $20 million in rent and training costs, and Japan pays $6-8 million a year in base lease fees. In addition, Italy, Spain, Sweden, Germany, the United Kingdom and other countries also pay Djibouti corresponding rent or fees according to the agreement. The rent generated by these foreign troops has become Djibouti's second largest source of revenue, with an average annual land rent of $200 million accounting for about 6% of Djibouti's GDP. At the same time, these countries have provided support such as non-reimbursable aid, low-interest loans and project construction, which has further boosted Djibouti's socio-economic development.
However, the U.S. and French military bases in Djibouti are more aggressive than the PLA support base in Djibouti. France has a large military presence in Djibouti, including heavy weapons and equipment, and the US military in Djibouti is even larger, with more than 4,000 troops and a range of modern combat equipment. The existence of these military bases not only meets Djibouti's economic needs, but also plays an active role in maintaining international and regional peace and stability.
To sum up, Djibouti has achieved new economic growth by leasing land to the outside world, relying on its unique geographical advantages. The rental income generated by the foreign military presence not only provides strong financial support for Djibouti, but also promotes the overall social and economic development. Djibouti's development path fully proves that geographical advantages have great potential in economic development, and the open attitude of win-win cooperation will surely bring a brighter future to the country.
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