It is the fulcrum on which regional access and transportation links depend. Djibouti's strategic location, strong cultural, economic and political ties to Ethiopia, Eritrea, and Somalia and ties to Somali culture throughout East Africa ensure that everything that happens, or does not happen, in Djibouti impacts on its neighbors. Even more importantly, its small size, coupled with the nomadic traditions and legacy of the region, ensures that the actions of its larger neighbors have an immediate and direct impact on Djibouti's fortunes. These attributes are also the necessary precursors to further development and integration in the region. Former President Gouled of Djibouti was instrumental in the founding of the regional grouping, IGAD, chartered in 1986.
Members are Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Sudan and Uganda.
Since 1986 the organization has worked to strengthen cooperation and mutual problem-solving among its members in the areas of food security and economic cooperation and integration. This concept was further refined at the U.S.-Africa March 1999 Ministerial in Washington in which IGAD's Executive Secretary participated and Djibouti's Foreign Minister represented both Djibouti and the IGAD chair. Subsequently in 1998, the Puntland region of Somalia began establishing limited functioning institutions of governance. In September 1999 in his maiden UNGA speech, Djibouti's president, Ismail Omar Guelleh, launched an initiative under IGAD auspices for peace and reconciliation in neighboring Somalia. This step in an ongoing reconciliation process culminated in August 2000 in the creation of a transitional assembly and election of a transitional president.