But the rebels in question, who hail from Tigray, a northern province, have run Ethiopia since 1991.

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But, according to Eritrea, militiamen from the border province of Tigray persistently encroached on Eritrean territory, ignoring polite requests to withdraw.

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The party is dominated by former Marxist rebels from Tigray, even though Tigrayans, among them Mr Meles, make up only 6% of Ethiopia's population.

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Settlers seem to be doing well in places such as Tigray in the north, where the authorities have provided strong support since the scheme was launched last year.

ECONOMIST: Ethiopia