Economic

The Yemen Review March 3, 2022 279:55 MIN The Graveyard of Hubris – Yemen Annual Review 2021 Through most of 2021, the armed Houthi movement appeared unstoppable. As their forces pushed relentlessly toward Marib city, the fall of the last government stronghold in the north began to seem inevitable. Rich in oil and gas, its loss would be a mortal blow to the spiraling economy and political legitimacy of the internationally recognized government. Along frontlines across the country, Houthi forces either held their ground or advanced, showing a cohesiveness, discipline and effectiveness unmatched by the motley array of armed groups opposing them. Houthi drones and ballistic missiles flew across the border into Saudi Arabia, and continued even in the face of retaliatory airstrikes, heightening the cost of conflict for the coalition. Houthi military efforts were buttressed by… Continue reading Main Publications September 6, 2021 17:28 MIN Local Economic Councils: A Tool to Improve Business Productivity in Yemen Even before the events of 2014 and 2015 that led Yemen into the ongoing civil war, its economy was fragile. The years of hardship that have haunted the country ever since have been devastating. Yemen is now rated as one of the hardest places in the world for businesses to operate and is last or near last in a host of global business competitiveness indexes. From January 25-27,2021 the seventh Development Champions Forum, held virtually, focused on this dire national situation. To help address local economic challenges, the Development Champions discussed the possibility of establishing Local Economic Councils. According to their analysis, between the existing community-level local development committees (which guide targeted, small scale infrastructure investment from development funds such… Continue reading The Yemen Review July 14, 2021 94:51 MIN Eye on the East – The Yemen Review, June 2021 Through periods of tolerance and persecution, marginalization has remained a constant in the treatment of racial and religious minorities in Yemeni society. During the ongoing conflict, however, violence and subjugation against these marginalized groups has increased dramatically, to the point that it is fundamentally reshaping Yemeni society. For Yemen as we know it to continue to exist it needs to assure the existence of its minorities, as something fundamental to the makeup of a nation dies when its minorities perish. Yemen’s Jewish community, with a history tracing back millennia, played a foundational role in developing Yemeni culture and commerce, and creating much of the artisanal industries for which the country is known. While the community had already been dwindling in… Continue reading Main Publications May 25, 2021 01:34 MIN Priorities for the Recovery and Reform of the Electricity Sector in Yemen By Akram M. Almohamadi Electricity is the backbone of any economy and one of the necessities of modern life. Poor electricity services in Yemen, even before the war, have been one of the key barriers to sustainable economic development and basic service provision (e.g., water supply, health care, education). This paper aims to lay out the top priorities for restoring electricity sector services and reforming the sector after the war. TWhe paper starts with an assessment of the electricity status prior to the war. It subsequently discusses the impact of the war on the electricity sector performance and the 1990s Power Sector Reform Model, followed by an identification of the key barriers faced by the sector. The paper argues that the electricity sector, or… Continue reading Analysis October 22, 2020 56:41 MIN Marib: A Yemeni Government Stronghold Increasingly Vulnerable to Houthi Advances By Casey Coombs, and Ali Al-Sakani Marib, a centrally-located governorate connecting Al-Bayda, Shabwa, Hadramawt, Al-Jawf and Sana’a, has undergone a drastic transformation since the war started in 2015, emerging as a booming economic, social, political and military center. Natural resources including irrigation from the Marib dam and oil and gas reserves were instrumental in building a bustling metropolis in Marib city over a short period. But it was the autonomy afforded by decentralization under Governor Sultan al-Aradah that harnessed those resources for local development. Obtaining its share of the national gas and oil revenues, for example, has helped fund the improvement of infrastructure, pay civil servants' salaries and build government institutions. Though hardly insulated from the war, Marib has become a haven for displaced people and… Continue reading Main Publications August 5, 2019 17:41 MIN Transitional Government in Post-Conflict Yemen By Osamah Al Rawhani, Anthony Biswell, and Rafat Al-Akhali This policy brief offers recommendations to maximize the effectiveness of governance in post-conflict Yemen – whatever the composition or structure of the government. It presents three case studies on government models previously introduced in Yemen, Tunisia and Lebanon after periods of instability. These case studies offer useful lessons on the challenges, risks and opportunities of forming transitional governments in post-conflict contexts. The two most apparent options for the composition of an immediate post-conflict government to lead a transitional period in Yemen are a consensus government with cabinet seats divided among the key Yemeni political factions, or a technocratic caretaker government appointed by a consensus prime minister. The case studies in Yemen and Lebanon illustrate that while power sharing agreements can… Continue reading The Yemen Review October 8, 2018 34:33 MIN The Yemen Review – September 2018 In September, the Yemeni rial’s recent decline accelerated precipitously, with the currency’s value dropping to record lows by month’s end. While the rial has been under multiple, intensifying pressures stemming from the war for several years, a large increase in the money supply – through a 30 percent increase in civil servant salaries – and the collapse of peace talks last month appear to have spurred a rial sell-off in the market (see ‘Domestic Currency Hits Record Low’). A nation-wide fuel shortage ensued. Retail fuel stations closed en masse and prices for available petrol on the black market jumped an average of 130 percent relative to August, and as much as 230 percent in some areas (see ‘Fuel Shortages and… Continue reading The Yemen Review September 6, 2018 30:09 MIN The Yemen Review – August 2018 In the last six days of August the Yemeni rial entered one of its steepest and most rapid declines in value since the conflict began, resulting in sudden price spikes for basic foodstuffs. Given Yemen’s overwhelming dependence on imports to feed the population, such changes in the rial’s value have direct implications for the country’s humanitarian crisis (see ‘The Yemeni Rial’s Rapid Decline and Food Prices Surge’). Both the internationally recognized Yemeni government in Aden and the Houthi authorities in Sana’a took actions through last month targeting unlicensed money exchange firms – that have proliferated since the conflict began in 2015 – in an effort to curb their destabilizing effect on the currency market (see ‘Attempts to Curb the Influence… Continue reading The Yemen Review August 5, 2018 39:19 MIN Yemen at the UN – July 2018 Review At the end of July the Yemen conflict seemed poised to take on much broader regional and global dimensions, as Saudi Arabia halted oil shipments through the Bab al-Mandeb Strait off Yemen’s Red Sea coast. Iran declared the sea “no longer secure,” and Israel threatened military intervention if Houthi forces attempted to close the strait to shipping (see ‘Riyadh Halts Bab Al-Mandeb Oil Shipments After Houthi Attacks’). Earlier in July, the Saudi-led military coalition and associated ground forces had temporarily halted their campaign to dislodge Houthi fighters from Hudaydah city and capture Yemen’s busiest port. The United Nations Special Envoy for Yemen Martin Griffiths spent the rest of the month shuttling between the various stakeholders in the conflict in a… Continue reading Main Publications July 29, 2018 22:35 MIN Challenges for Yemen’s Local Governance amid Conflict By Maged Al-Madhaji, and Anthony Biswell Local councils are among Yemen’s most important state institutions. Responsible for providing basic public services to millions of Yemenis, local councils represent official governance and the Yemeni state for much of the population. The intensification of the conflict between the internationally recognized government, its regional backers and the Houthi group since March 2015, however, has heavily impacted funding and security for local councils, undermining their ability to provide services effectively in most areas of the country. In many areas, this absence of effective official governance has created fertile ground for non-state actors to exert their influence. In the areas under Houthi control, Houthi supporters closely monitor local council activity. In the southern coastal city of Aden, local councils are caught… Continue reading The Yemen Review June 4, 2018 38:08 MIN Yemen at the UN – May 2018 Review In May, Houthi forces were clearly on the defensive across most of Yemen, in particular losing ground in Hudaydah governorate as various anti-Houthi groups, backed by Emirati airpower, advanced on Hudaydah city. A Saudi-led coalition plan for a military offensive on the city last year was derailed due to a lack of US support and international outcry over the likelihood of massive humanitarian fallout. Last month, however, a Western official confirmed to the Sana’a Center that Washington and London had given the green light for the current offensive to take Hudaydah city, but with the caveat that the ports were not to be attacked (see ‘Coalition-Backed Forces Advancing on Hudaydah Port’ and ‘Anti-Houthi Forces Make Gains in Taiz’). On May… Continue reading The Yemen Review January 22, 2018 98:45 MIN A Year of Hunger and Blood: Yemen at the UN / Special Issue – 2017 in Review In early 2017 the United Nations (UN) declared that Yemen was enduring the single largest humanitarian crisis in the world. By year’s end, UN agencies estimated that 17.8 million people in Yemen were food insecure and 8.4 million were at risk of famine. Economic and public service collapse left more than 16 million Yemenis without access to safe water and sanitation, and 16.4 million without proper healthcare. All of these factors played into an outbreak of cholera in 2017 that surpassed 1 million suspected cases by December – the largest cholera epidemic ever recorded in a single year. The UN’s 2017 humanitarian appeal for Yemen amounted US$2.3 billion, of which the international community had funded 70.5 percent by year’s end… Continue reading