Economic Priorities for a Sustainable Peace Agreement in Yemen

Economic Priorities for a Sustainable Peace Agreement in Yemen

The Development Champions Forum stresses that the sustainability of a peace agreement in Yemen will, amongst others, depend on two critical insights: First, in a conflict that is largely over access to resources, the issues of distribution and control of those resources can make or break peace. Second, where peace agreements lack provisions that create overall economic stability, warfare can resume during the fragile implementation period. This infographic summarizes the Development Champions’ key recommendations on economic provisions that need to be included in the peace agreement.

This infographic is based on RYE Policy Brief 20.


Microfinance in Yemen

Microfinance in Yemen

Since its introduction to Yemen in 1997, microfinance has been viewed as a strategic tool to alleviate poverty and reduce unemployment, for it provided a means for the financial inclusion and economic empowerment of small and micro entrepreneurs by expanding financial services to them. However, persistent challenges facing the microfinance industry have stunted its development, reach within the population, and overall socioeconomic impact. To better place the industry to achieve its socioeconomic aims in the near term and contribute to Yemen’s recovery post-conflict, the Development Champions Forum puts forth several recommendations in four areas, namely, capacity building, financing, program design, and research.

This infographic is based on RYE White Paper 06.


Developing Yemen’s Fishing Industry

Developing Yemen’s Fishing Industry

Yemen’s fisheries sector holds untapped promise in contributing to the national economy, with a coastline of more than 2,500 kilometers and rich fishing grounds offshore. Yet the sector has long faced many structural challenges that have limited its production and potential contribution to overall economic output, which have been exacerbated during the ongoing conflict. This infographic provides an overview of the industry’s most important challenges as well as recommendations about how the sector could be developed now and in the future.

This infographic is based on RYE Policy Brief 19.


Developing Human Capital

Developing Human Capital

Human capital in Yemen has long been at the lowest levels across all indicators due to the successive conflicts in the country and the weak investment in human development. Over five years since the onset of the ongoing war in Yemen, human capital accumulation has continued to regress. This video emphasizes that human capital is the foundation of development and the essence of the economic prosperity of future generations and stresses that continued neglect of investment in human capital will inevitably continue to undermine sustainable development in Yemen.

This infographic is based on RYE Policy Brief 18.


Reforming the Business and Investment Climate

Reforming the Business and Investment Climate

The surest means of laying the foundations for private sector recovery in Yemen, and indeed recovery for the country overall, is to end the ongoing conflict and reunify public institutions and governance mechanisms. While the conflict is ongoing, however, there are still practical, realistic steps national and international stakeholders can take to support the Yemeni private sector. Doing so would in turn help spur economic growth and job creation for a destitute population. It would also potentially initiate a cascade of positive developments in Yemen: easing the humanitarian crisis, bolstering socio-economic and political stability, and restarting formal financial cycles, among others.

This infographic is based on RYE Policy Brief 15.


Restructuring Public Finances in Yemen

Restructuring Public Finances in Yemen

Even before the current conflict, Yemen’s public finances suffered from an overdependence on energy exports, one of the lowest tax collection rates in the world, and chronic budget and balance of payments deficits. The ongoing conflict has complicated an already dire situation. Energy exports have almost collapsed, while general economic and state collapse saw a precipitous decline in tax revenues. Public debt has thus risen, while the fracturing of state institutions across frontlines has hobbled public revenue collection as well as fiscal and monetary policy. In this infographic, these challenges are highlighted and urgent and long overdue deep structural reforms to Yemen’s collapsing public finances are recommended.

This infographic is based on RYE Policy Brief 17.


Corruption in Yemen

Corruption in Yemen

Corruption, or the abuse of power for private gain, has been deeply entrenched in the Yemeni political economy for decades. Over the course of the ongoing conflict, however, state capture in Yemen has become far more complex, and new patronage networks have emerged with interests that have extended across national borders and crossed the frontlines of the war themselves, indicating collusion among supposed adversaries. As greater numbers and a wider variety of actors profit from illicit activity in the war economy, vested economic interests in continued conflict become more entrenched. Given the multifaceted pervasiveness of corruption in Yemen, any anti-corruption agenda must aim to understand the complex configuration of patronage networks in Yemen, to be introduced gradually, and to get the buy-in of as wide a group of Yemenis as possible.

This video is based on RYE Policy Brief 9 and RYE White Paper 4.


Private Sector in Yemen

Private Sector in Yemen

The impact of the conflict on Yemen’s economy and private sector have been calamitous, and, as a result, the economic output has dropped precipitously since its onset. The increased costs for businesses have been spurred by a lack of security and a scarcity of business inputs, while a loss of customer base and demand as well as general purchasing power decline have driven a loss in revenue. Physical damage to public and private infrastructure has also severely affected the ability of businesses to operate. And yet many businesses continue to operate; indeed, the private sector’s resilience is a major reason that the country’s humanitarian crisis–the largest in the world–is not a lot worse than it would have been in the absence of the vital role that the private sector continues to play despite all challenges.

This video is based on RYE Policy Brief 15, RYE Policy Brief 7 and RYE White Paper 3.


The Essential Role of Remittances in Mitigating Economic Collapse

The Essential Role of Remittances in Mitigating Economic Collapse

Scarce opportunities to earn a viable livelihood in Yemen continue to drive hundreds of thousands of Yemenis abroad in search of work, especially to neighboring countries. Over time, remittances from Yemeni expatriates have become one of the most important sources of foreign currency inflows into Yemen and have played an essential role in mitigating economic collapse during the ongoing war. Since approximately 90% of total remittances come from neighboring countries, the forcible deportation of Yemeni workers en masse; labor market nationalization campaigns that impose greater restrictions on the number of job categories open to expatriate workers; and very high fees to live and work for legally documented workers and their families have resulted in a decline of these remittances on which millions of Yemenis depend and therefore in huge losses to the country’s economy.

This infographic is based on RYE Policy Brief 17.


Generating New Employment Opportunities II: Labor Force, Labor Market and Expatriates

Generating New Employment Opportunities II: Labor Force, Labor Market and Expatriates

Decades of political instability and cyclical armed conflict have curtailed Yemen’s economic growth, job creation and labor productivity. Sharing a collective sense of urgency to address Yemen’s worsening economic and humanitarian crises, 22 of Yemen’s leading socioeconomic experts convened as part of the Rethinking Yemen’s Economy initiative to discuss job creation in Yemen and develop potential strategies to combat increasing levels of unemployment and economic hardship. This video is the second of two parts. It provides an overview of the impact of the current conflict on the job market and livelihoods and recommends means for generating new employment opportunities in Yemen.

This infographic is based on RYE Policy Brief 13 and RYE Policy Brief 8.


Transitional Government in Post-Conflict Yemen

Transitional Government in Post-Conflict Yemen

To maximize the effectiveness of governance in post-conflict Yemen, two options stand out for the composition of an immediate post-conflict government to lead a transitional period in the country. First, a consensus government with cabinet seats divided among the key Yemeni political factions. Second, a technocratic caretaker government appointed by a consensus prime minister. In both cases, there are several recommendations to help the government during this period play the critical role of stabilizing the country and delivering peace dividends to Yemenis.

This infographic is based on RYE Policy Brief 14.


Generating New Employment Opportunities I: Yemeni Labour Market

Generating New Employment Opportunities I: Yemeni Labour Market

Decades of political instability and cyclical armed conflict have curtailed Yemen’s economic growth, job creation and labor productivity. Before the current conflict, much of the country’s working population was engaged in unskilled labor, working in rural agriculture or informally employed in small businesses. Sharing a collective sense of urgency to address Yemen’s worsening economic and humanitarian crises, 22 of Yemen’s leading socioeconomic experts convened as part of the Rethinking Yemen’s Economy initiative to discuss job creation in Yemen and develop potential strategies to combat increasing levels of unemployment and economic hardship. This video is the first of two parts. It provides a brief overview of Yemen’s labour force, labour market, and expatriate workforce.

This infographic is based on RYE Policy Brief 13 and RYE Policy Brief 8.


The Development Champions

The Development Champions

The Development Champions are a group of senior Yemeni experts and professionals from various backgrounds and with established expertise in development and economy. The Development Champions discuss priorities for intervention by national and international policymakers, issue respective recommendations and are thus at the heart of the Rethinking Yemen’s Economy initiative. The aim of this initiative is to contribute to peacebuilding and conflict prevention, (economic) stabilization, and sustainable development in Yemen by building consensus in crucial policy areas through engaging and promoting informed Yemeni voices from all backgrounds in the public discourse on development, economy, and post-conflict reconstruction in Yemen and by positively influencing local, regional, and international development agendas.


The Road to Reconstruction

The Road to Reconstruction

The ongoing conflict in Yemen has imposed grievous costs on Yemenis, damaging lives, property, and infrastructure, and collapsing the country’s already fragile economy. And yet the conflict will eventually subside. Previous reconstruction efforts in Yemen following conflict or natural disaster have suffered from lack of coordination with and unrealistic expectations from international donors, as well as the Yemeni government’s limited capacity for aid absorption and project implementation; as a result, there was little tangible long-term impact. Post-conflict reconstruction following this war must therefore address the basic needs and rights of the Yemeni population and put the country on a well-prepared path toward sustainable peace and development.

This video is based on RYE Policy Brief 5 and RYE Policy Brief 12.


Civil Servant Salaries

Civil Servant Salaries

The rising wage bill for the public sector is a timebomb that threatens future economic stability in Yemen. The public sector is one of the main employers in Yemen and accounted for 32% of total government spending on average during the period from 2001 to 2014. This very heavy burden on public expenditure calls for long-overdue structural reforms in Yemen’s public administration and state budget, including the removal of double-dippers and ghost workers from the payroll. This video presents the key outcomes of the Development Champions’ discussions on this matter.

This infographic is based on RYE Policy Brief 16 and RYE Policy Brief 11.


Local Governance in Yemen

Local Governance in Yemen

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 vast swathes of the population. The intensification of the conflict since March 2015, however, has undermined the councils’ ability to operate effectively in most areas of the country. Given the central role that local councils previously played in providing public services to their communities, their currently reduced capacity is cause for much concern as the conflict rages on and Yemen’s economic and humanitarian crises deepen. Although most local councils in Yemen are not fully functional, local councils remain important instruments for the communities they represent.

This video is based on RYE Policy Brief 6 and RYE White Paper 2.