The World Bank Group's Horn ofAfrica Regional Initiative promotes resilience and economicopportunity in one of the world’s most challenging regionsfor security and development. Within the region, extremepoverty, vulnerability, fragility, and food insecurity aredisproportionately concentrated in the arid and remoteborder regions. But despite its challenges, there are areasin the borderlands with real economic potential. Forexample, the region's international borders have longallowed communities to benefit from price differentialsthrough licit and illicit trade (Scott-Villiers 2015).Pastoralism and trade, the dominant livelihoods in the Hornof Africa, require the easy movement of people and goodswithin and across borders—and continue to heavily rely oncross-country clan and ethnic affiliations. Localinstitutions therefore still play a key role in regulatingand facilitating economic activity and managing conflict,especially as the formal institutions are often weak orabsent. Even in areas at the periphery of state control, theborderlands remain highly connected to circuits of globalcapital and exchange.
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