Although relatively stable, Djibouti’s extreme poverty, high unemployment, chronic food deficits and humanitarian and social needs make it susceptible to instability. Djibouti’s arid climate and rocky soil are inhospitable to agricultural and large-scale livestock production. The only natural resources of note are salt and the deep water port. Djibouti’s population is estimated to be 700,000 of which 85 percent live in urban areas. Djibouti also harbors 9,600 refugees from Somalia and Ethiopia. Though social indicators are showing modest improvements due to increased donor and government investments, Djibouti is still ranked 150 out of 174 countries in the UNDP’s Human Development Index. Among the most important challenges are Djibouti’s low health and low skills levels, a high population growth rate and sluggish economic growth. The USAID/Djibouti program, re-established in mid FY 2003, is focused on improving basic education and enhancing essential health services in rural areas. USAID is also providing food security assistance in Djibouti through the Famine Early Warning System Network (FEWSNET) project.