Executive Board of the United Nations Development Programme and of the United Nations Population Fund

Introduction

1. The formulation of the 2007 - 2011 Country Programme Document (CPD) is guided by the Government of Eritrea (GOE)'s priority needs and challenges as identified in the 2005 Common Country Assessment (CCA), the 2007- 2011 United Nations Development Assistance Framework (UNDAF) as well as the 2005 Millennium Development Goals (MDG) Report and other prior policy frameworks. The CPD is therefore derived from documents and processes entailing extensive consultations and meetings between senior government officials, representatives of civil society and United Nations agencies. I. Situation analysis 2. The Government's long term goal remains that of poverty reduction through rapid economic growth and accelerated human development. Embarking steadfastly on the path to economic growth and development is therefore the key challenge ahead for Eritrea. Without the resumption of rapid economic growth, the gains made so far to achieve the MDGs are at risk. 3. According to the first MDG report,i Eritrea is on track to achieve the MDGs dealing with gender equality at the primary school level, child health, maternal mortality, HIV/AIDS, malaria and other major diseases, and access to safe water. However, it remains off-track with respect to the eradication of extreme poverty and achievement of universal primary education, two critical goals towards human and economic development. Lack of adequate data on environmental sustainability did not permit a clear assessment of progress in this area. 4. Immediately after independence in 1993 and up to 1997, Eritrea formulated and implemented socio-economic policies and strategies, attaining an average annual growth in GDP of 7% and other marked improvements throughout key sectors. However, the border war (1998-2000) and the ongoing border stalemate, compounded by recurring droughts, have reversed positive post-independence gains. Since the end of the war, annual growth in GDP, a key factor of poverty reduction, has been low, averaging 1% (1998 - 2004),ii thereby intensifying the vulnerability of Eritrea's 3.66 million population.iii Internally displaced persons (IDPs), expellees and returnees from Ethiopia, the urban poor, the disabled, pastoralists, female-headed households, orphans and high-risk HIV/AIDS groups have been particularly hard hit. In 2003, Eritrea was designated one of the four countries to be supported in the implementation of a joint UN transitional recovery response effort; the 4Rs (repatriation, reintegration, rehabilitation and reconstruction). 19,000 of the 60,000 IDPs left in camps were recently resettled.download