Tensions, both within Ethiopia and between Ethiopia and its neighbours, are rooted in history.
All Eritrean men between the ages of 18 – 50 have to serve in the army for more than 20 years, forcing thousands to flee. But things look set to change.
Relations between Ethiopia and Eritrea have improved thanks to efforts made by Ethiopia's new premier.
If peace is achieved between Ethiopia and Eritrea, it will help stabilise the Horn of Africa, and the broader East Africa region.
For the first time in years Ethiopia's ruling coalition faces real political competition from two parties within its own ranks. Can they usher in democracy after nearly 30 years of authoritarianism?
The growing Arab military, political and religious influence is only the latest example of an external force taking hold in the Horn of Africa.
Will the latest Ethiopia-Eritrea conflict spiral into a large-scale military confrontation? The odds are highly unlikely: neither side believes it would gain from such an eventuality.