Republic of Yemen

Yemen is one of the poorest countries in the Arab region facing multiple challenges and crisis. Recently it witnessed a decline in the humanitarian and livelihood conditions, due to natural and human-made disasters, including armed-conflict and political unrest. The economy is dominated by the oil sector, which covers 27% of the Gross Domestic Product and 70% of export revenues. More than half of the population is below 15 years of age. Based on the poverty update (Dr. Heba El-Laythy Annex 6 of the 4th Development Plan for Poverty Reduction, July 2011); the proportion of the poor increased according to the 2010 food poverty line (extreme poverty) from 12.46% to 16.15% or about 30% compared to UNDP/World Bank/Government of Yemen, Poverty Assessment for 2005-2006. Both the poverty gap and severity also increased by a more accelerated rate than that of the proportion of the poor. This means that the poor have become poorer in the period 2006-2010 in terms of the food poverty line. While people living below the lower poverty line has slightly decline from 40.09% (2005/06) to 38.59% (2010), the poverty update indicated that prices of basic commodities and services increases to 15% as was the case in 2011 due to political unrest in Yemen, the lower poverty line can get worse to level beyond that of 1998, which is 42.5%. Unemployment is estimated at 52.9% and 44.4% among the 15-24 and 25-59 age groups respectively. Unemployment is fairly broad, cutting across urban and rural areas and was much exacerbated by the political unrest of 2011. According to the preliminary results of WFP Comprehensive Food Insecurity Survey, approximately 5 million of the population is food insecure. Although population growth rate has slightly decline 2.9 % (2010), it is still considered to be among the highest in the World and any annually adds additional new mouths to feed and new labor force seeking for employment opportunities, which does not match with economic growth estimated at negative as much as 20% in 2011.

The situation was further deteriorated following the demonstrations that started in Yemen in January 2011. The protests initially focused on unemployment, poor economic conditions and corruption and then resulted in open calls for political change. Growing social and political unrest in the country poses challenges to local development and creates an environment for further deterioration of livelihood and increase of humanitarian needs across the country.

UNDP has supported the Government of Yemen to diversify its economy and minimize its dependence on declining oil production that started in 2002. Two key strategies on agriculture and fisheries sectors were developed through systematic and consultative processes. Almost all policies and actions of the strategies were pro-poor and promoted employment and earning opportunities generation for poorer segments of society. Raising awareness of local communities in rural areas in the respective sectors, especially those of fisheries and agriculture, was one of the main elements during the processes. Gender mainstreaming was promoted in a human rights based approach.

UNDP has also in close consultation with the respective national counterpart agencies and other partner agencies aligned its development strategies for equitable, pro-poor and inclusive growth to address emerging and urgent needs within a frame of multi-dimensional initiatives while setting grounds for medium and long term goals. Focus will be given to increasing job creation opportunities contributing to improvement of livelihoods, and stimulation of local economy that will accelerate poverty reduction.

UNDP with its partners is also working with local communities to empower them socially and economically, especially the disadvantaged women and youth in market oriented technical, entrepreneurial and managerial skills, and confidence building, as well as empowering skills, to improve their access to productive resources and sustainable earning potential.

The following are some UNDP projects that aim to reduce poverty in Yemen:

Service Line 1.3: Local Poverty Initiatives, Including Microfinance

• Youth Economic Empowerment Project

Last Modified on 2013-05-18