The aim of this article is to identify which economic model is applied in Eritrea. The government claims to follow the market economy model(s), however, the actual practice seems to be different and casts doubts on the government's commitment to market economy. Against this background, the author has examined Eritrea's economic development model. Confirming to his doubts, the author found out that the government is applying a militarist command economy model, however, in an improperly planned, poorly coordinated and extremely mismanaged approach, with its serious negative impacts on the economic, social, cultural, diplomatic and political conditions in the country.