DefinePK

Abstract

Djibouti, a small country in the Horn of Africa, has acquired substantial geopolitical importance owing to its strategic position near the Bab el-Mandeb Strait, a vital maritime chokepoint linking the Red Sea with the Gulf of Aden. Due to its location at the intersection of significant international trade and energy pathways, Djibouti has drawn the attention of world powers such as the United States, China, France, and Japan. These powers have set up military bases within the country, providing a significant contribution to Djibouti’s economy via lease payments. Foreign military installations, starting with France and later joined by the US, Japan, China, and others, have turned Djibouti into a rentier state that heavily depends on foreign military rents and port services. The method of data collection used is the documentary method, and collected data is analyzed by a qualitative descriptive method that includes a description of secondary sources of data. Djibouti’s approach of multilateralism to host foreign military bases has been in its favor so far, as the premium on these bases is the basic source of national income, which has contributed to flourishing its economy.