Dog Has Problem Around Eye, What Is It?

OK, I have a German Shepard mixed with a Collie, and he's a little over 16 years old. I have seen the normal health issues for such an older dog, but something new has come up. Around his right eye all the hair is gone, and it is very pink and looks almost slightly swelled. The hair is gone about three centimeters all around, and it looks slightly crusted. Is there some reason for this? Or what could I do?

My parents dog - also a german shephard - had something like this and it was called conjuntivitis (excuse my spelling) and the vet gave him an ointment called brolene. I'd make sure to take it to the vet, just to be sure, in case its more serious.

Dog Breeding - Hereditary Eye Problems