Disputes - international: most of the southern half of the boundary with Somalia is a Provisional Administrative Line; territorial dispute with Somalia over the Ogaden; dispute over alignment of boundary with Eritrea led to armed conflict in 1998, which is still unresolved despite arbitration efforts

Illicit drugs: transit hub for heroin originating in Southwest and Southeast Asia and destined for Europe and North America as well as cocaine destined for markets in southern Africa; cultivates qat (chat) for local use and regional export, principally to Djibouti and Somalia