Great-Power Basing in Djibouti

Djibouti became independent from France in 1977 and retained the French garrison. Its location beside the Bab el-Mandeb strait, through which a large share of European-Asian shipping passes, acquired new value after 2001 and again during the Somali piracy surge: the United States established Camp Lemonnier in 2002, Japan opened its first overseas base since 1945 in 2011, and China began construction in 2016. Base rents became a central component of government revenue, and Djibouti also serves as the outlet for landlocked Ethiopia's trade, giving it a second form of positional income. The concentration produced friction — American officials have complained of lasers directed at aircraft from the Chinese facility — and heavy Chinese lending for port and rail infrastructure raised questions about debt exposure to one of the tenants.

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