Republic of Yemen

Country Information

Yemen is one of the poorest countries in the Arab region,though it is ranked 154 on the Human Development Index (HDI), which places among medium human development countries. Ever since reunification of the country in 1990 its relative position on the HDI index has remained steady, with very slow progress towards attaining the MDG goals. At 2.9%, the country has one of the highest population growth rates globally, with the population expected to double in 23 years to around 40 million. This increases the demand for educational and health services, drinking water and employment opportunities, as well as the already harsh environment, which will result in emerging new challenges as the result of climate change phenomena. Moreover, Yemen faces a severe water shortage, with available ground water being depleted at an alarming rate. The Yemeni economy is caught in a jobless slow growth cycle leading to stagnant per capita incomes and rising levels of unemployment, particularly amongst the youth and women.

The analysis contained in the Common Country Assessment (CCA) 2011 has identified the following four underlying reasons for the poor outcome of development interventions in Yemen:

• Inclusive and diversified economic growth with a social dividend;
• Sustainable and equitable access to quality basic social services to accelerate progress towards MDGs;
• Women and youth empowerment; and
• Good governance and social cohesion.

As a result of 2011 political crisis and based on the Gulf Cooperation Council (GCC) Initiative and its Implementation Mechanism that was signed by all political parties on 23 November 2011 in Riyadh, requested a formulation of Transitional Plan for Stabilization and Development (2012-2014). Subsequently, a Joint UN Framework to Support the Transition in Yemen (2012-2014) was operationalized with following focus areas:

• Political dialogue and transition;
• Democratic governance and elections;
• Sustainable livelihoods and basic social services; and
• Transitional justice, rule of law and security sector reform.

The 2011 mass protests in Yemen demanded better governance, voice, and economic opportunities, and culminated in a simultaneous political, social, and economic crisis exacerbating an overall difficult country environment. Although the causes underlying the Arab Awakening are complex and multi-faceted, economic and governance factors are particularly salient. While the protests were initially led by students and young Yemenis giving voice to their grievances and demands for a better Yemen, they turned quickly into a mass movement including many parts of a complex Yemeni society. The immediate impact has stressed the fragile stability of the country and caused a still unfolding humanitarian emergency.

The deepened conflict situation caused significant disruptions in the supply and production chains, causing economic activity to contract by almost 10.8 percent, leading to higher unemployment especially among women and youth. The reduction in fuel availability, particularly diesel, further aggravated shortages in electricity and water supplies. The repeated sabotaging of the pipelines in the Mareb and Ras Issa areas and continued road insecurity led to a sharp decrease in crude oil production by about 25 percent in 2011. The agricultural, service, and industrial sectors faced significant cost increases for inputs such as irrigation, transportation, and marketing, which ultimately reduced production and exports. Production processes were disrupted, leading to the closing of businesses and dismissal of workers. The fiscal deficit increased to around US$1.4 billion, while foreign exchange earnings from tourism, development aid, and foreign direct investment all declined.

Poverty, already raising at the time the crisis broke out, is estimated to have further increased from 42 percent of the population in 2009 to 54.5 percent at the end of 2011. This has been accompanied by an increase in the number of female-headed households. According to the U.N. World Food Program (WFP), approximately 45 percent of the population (10 million people) was food insecure in March 2012, a significant increase from the nearly 32 percent of food insecurity in 2009. Nearly one million children under age five are acutely malnourished. According to the UNHCR, an estimated 806,600 people are now considered most vulnerable due to current and previous conflicts, including children who have been directly involved in or affected by the infighting and violence, as well as 213,000 vulnerable returnees and war-affected persons in the north, 203,900 refugees and asylum seekers, 4 and approximately 150,000 displaced people in the South.