TNEMPOLEVED

A COUNTRY IN THE

CIMONOCE
MIDDLE EAST

YEMEN
YEMEN
YEMEN
GROUP 11
RIO, STEPHEN JAY C.
BADANOY, APRIL
DENIEGA, MATT LAURENCE

BSMA-1A
PROF. MELBA ROSE BARTOLOME
 ABOUT:
The present Republic of Yemen came into being in
May 1990, when the Yemen Arab Republic (North
Yemen) merged with the People’s Democratic
Republic of Yemen (South Yemen). By stipulation
of the unification agreement, Sanaa, formerly the
capital of North Yemen, functions as the political
capital of the country, while Aden, formerly the
capital of South Yemen, functions as the
economic centre. The two components of Yemen
underwent strikingly different histories: whereas
North Yemen never experienced any period of
colonial administration at the hands of a European
power, South Yemen was a part of the British
Empire from 1839 to 1967. The contemporary
borders are largely a product of the foreign policy
goals and actions of Britain, the Ottoman Empire,
and Saudi Arabia. Postunification Yemen has been
burdened by chronic corruption and economic
hardship. Divisions based on religion, tribalism, and
geography continue to play an important role in
Yemeni politics, sometimes leading to violence.
YEMEN'S ALL ABOUT

Yemen, country situated at the

southwestern corner of the Arabian
Peninsula. It is mostly mountainous
and generally arid, though there are
broad patches with sufficient
precipitation to make agriculture
successful. The people speak
various dialects of Arabic and are
mostly Muslims
In many places there is evidence of volcanic
activity from as recently as a few hundred
years ago; the existence of hot springs and
fumaroles (volcanic vents) attests to continued
subterranean activity. Moreover, the country
sits astride one of the most active fault lines in
the Red Sea region (Great Rift Basin) and has
experienced several severe earthquakes in
modern times, including one that shook the
Dhamar area in December 1982, killing about
3,000 people and largely destroying several
villages and hundreds of smaller settlements.

Yemen is an arid country, and there are no permanent

watercourses. The regular rainfall that occurs in some
areas drains, in the northern part, westward toward the
Red Sea through five major watercourses (wadis) and, in
the southern part, southward into the Gulf of Aden and
the Arabian Sea through three major watercourses. The
largest of the latter is the Wadi Ḥaḍramawt
(Hadhramaut Valley), which has been renowned since
antiquity for its frankincense trees and which
historically has been the locus of a number of
sophisticated city-states. Together with their tributaries
and lesser neighbours, these intermittently flowing
channels slice the highlands and central massif into a
large number of plateaus and ridges.
 HISTORY,
ECONOMY &
CURRENCY
For the first few years after the unification of Yemen,
both the (northern) Yemen Arab Republic Rial and the
(southern) Democratic Republic of Yemen Dinar
remained legal tender. A Dinar was worth 26 Rials. In
1993, the first coins were issued by the Republic of
Yemen, replacing the 1 and 5 rial notes. 10 rial and 20
rial coins were issued in 1995 and 2004, respectively.
On June 11, 1996, the Dinar was withdrawn from
circulation and the Rial became the official currency
of the combined entity.
Yemen is one of the poorest and least developed in the
Arab world, with a 35% rate of employment, declining
natural resources, and a relatively young and rapidly
growing population.
Yemen’s oil supply is much more limited than its Middle
Eastern peers, leading to a much weaker economy than
its neighbours.
Yemen's economy depends heavily on oil it produces, and
his government receives most of its revenue from oil
taxes. But Yemen's oil reserves are expected to be
depleted by 2017, possibly leading to economic collapse.
Yemen has large reserves of natural gas. Liquefied
natural gas production began in October 2009.
The official currency of
Yemen is the Yemeni Rial.
The Rial is sub-divided into
100 fils, although fils coins
have not been issued since
the unification of Yemen in
1990.
 NATURE,
POPULATION,
RELIGION &
LANGUAGE
Soils throughout the country vary from sandy to
loamy, and most are low in organic matter, thus
limiting agricultural options. In some areas, however,
elaborate agricultural terraces cover the mountains
from base to peak. The high agricultural productivity
of this system is largely attributable to the soil that
has been collected and enriched with compost over a
period of centuries. In the modern period, neglect and
civil conflict have taken their toll on the earthworks,
which are particularly vulnerable to erosion. Still, the
terraces are largely intact and are a breathtaking
feature of mountainous Yemen.

Yemeni Arabic, the primary

language of Yemen, is very
close to classical Arabic and
is a dialect spoken in Yemen,
southwestern Saudi Arabia
and the northern part of
Somalia.
Yemen is an Islamic society.
The population of Yemen was Nearly all Yemenis are Muslims,
about 28 million according to with approximately 65% belonging
2018 estimates, with 46% of the to the Shafi'i Sunni school of
population being under 15 years thought and approximately 35%
old and 2.7% above 65 years. In belonging to the Zaydi Shia school
1950, it was 4.3 million.By 2050, of thought. Others put the
the population is estimated to numbers of Shias at 25%. There
increase to about 60 million. are also approximately 1,000
Christians and 50 Jews.
 2021 INDEX OF ECONOMIC
FREEDOM IN YEMEN
Numerical grading of Yemen’s overall economic freedom ended in 2015, and

the continuing lack of reliable economic statistics for the country has

prevented the resumption of grading in the 2021 Index. Prospects for an end to

Yemen’s civil war and a peaceful rebuilding of its economy remain bleak.

The civil war has devastated the economy and destroyed critical infrastructure.

Even before the current conflict, however, years of mismanagement and

corruption and the depletion of oil and water resources had led to chronic

poverty, underdevelopment, and minimal access to such basic services as

electricity, water, and health care in much of the country. The conflict has

aggravated that situation, and significant international assistance will likely be

needed when the civil war ends.

Quick Facts:
Population:
29.2 million
GDP (PPP):
$72.1 billion
2.1% growth
-7.9% 5-year
Yemen, one of the poorest Arab countries, is highly dependent on
compound
declining revenues from its relatively small oil and gas reserves. Since
annual growth
$1,910 per
2014, a complex and intense civil war has created a humanitarian crisis

and exacerbated economic problems, unemployment, and shortages

of food, water, and medical resources. The Houthis, an Iran-backed

capita
Zaydi Shia rebel movement, ousted President Abed Rabbo Mansour Unemployment:
Hadi’s government in January 2015. A military coalition led by Saudi Inflation (CPI):
Arabia attempted to restore Hadi to power in March 2015, but the
10.0%
FDI Inflow:
Houthis retained significant territorial gains. There are now two

opposing governments: Hadi’s, based in Aden, and the Houthis in

Sanaa. Al-Qaeda in the Arabian Peninsula (AQAP) and the smaller

$-371.0
Islamic State terrorist group have flourished in the resulting chaos.
million
HOW TO IMPROVE
THE ECONOMY?
Yemen's economy and government were both heavily reliant on oil exports. Yemen's

economy has grown significantly during the previous two decades as a result of its reliance

on oil. Indeed, even in the face of tremendous population expansion, well-being as

measured by health, education, and wealth improved dramatically.

The Yemeni economy and state, however, were also perverted by oil. Commerce and

transportation—those industries that permitted the import of consumer goods—were mostly

responsible for economic expansion outside of oil. Because labor productivity has little

relationship to development in Yemen's oil economy, the oil years did little to increase

Yemeni labor's productive potential. Oil income also allowed the government to avoid having

to rely on an effective state to collect taxes from the general public. Yemen's lack of

institutional capability is one of its most distinctive characteristics. The president and his

supporters controlled through their own personal networks, which circumvented institutions

and slowed their growth. Yemen faces a tremendous task in terms of generating money

through taxation. The state must not only build the bureaucratic tools for taxing, but also

earn the legitimacy essential for efficient taxation.

With oil earnings diminishing, Yemen's economy will rely more heavily on local labor. This is a

beneficial trend since a more diversified economy is more resilient and less reliant on volatile

single sources of revenue. However, Yemen's increasingly diversified economy will

necessitate the development of domestic labor productivity, which will necessitate a

significantly more competent state. The ability of the state to control economic growth

based on domestic labor will be critical to the economy's long-term success.

Despite the fact that oil has been a cornerstone of Yemen's progress thus far, economic

growth is not reliant on natural resources. Natural resources can be beneficial to the

economy, but their value is contingent on the capacity to employ them productively for long-

term growth. Yemen's revenues have mostly been spent for current consumption rather than

long-term investment.

Yemen has achieved substantial progress over the previous four decades, despite the

recurring impression of a stagnating development disaster. In the previous two decades, all

markers of well-being have consistently increased, and significant progress has been made.

According to World Bank data, literacy rates increased from 34% in 1994, the year of

Yemen's civil war, to 62 percent in 2010. Literacy rates are highest among young women, at

82 percent (compared to 87 percent in Puerto Rico). Life expectancy has increased, infant

mortality has decreased, and fertility rates have decreased. Yemenis are far healthier, more

educated, and considerably richer than they were even twenty years ago, when the Republic

of Yemen was established. Yemenis are much healthier, are better educated, and are

significantly wealthier than even twenty years ago when the Republic of Yemen was

established.

A capable and legitimate state is even

more essential to Yemen’s economic future
than the presence of natural resources.
 Economic Problem:
Since 2015, the violence has
resulted in thousands of deaths
and displacements, significant
food insecurity, disease
epidemics, and millions on the
verge of famine. This terrible
humanitarian situation has
aggravated already-existing
human rights issues.

Arbitrary detention, enforced

disappearance and torture
remain areas of concern.
Violations have been
perpetrated against journalists,
human rights defenders and civil
society activists, with the
situation worsening as the
conflict has progressed.

The conflict and consequent mass Protecting children’s education is

displacement have placed women
and girls in positions of extreme risk.
To alleviate loss of livelihoods,
families have increasingly resorted
to child marriage. Legal protections
of freedom of expression and media
independence also remain
outstanding.
also of crucial importance. A lack
of salary payment has
contributed to a shortage of
teachers, and the damage,
destruction and repurposing (for
the displaced or armed groups)
of schools has led to a shortage
of learning facilities.
 YEMEN

It is a security, political, economic, and moral obligation to alleviate

the humanitarian crisis in Yemen. The most efficient method, aside
from ending the war through a negotiated political settlement, is to
increase household purchasing power. To accomplish so, more basic
commodities must be available on the market, commodity prices
must fall, the currency must remain stable, and household income
must rise. Even in the midst of a battle, this economic strategic
strategy is not hard to implement. These initiatives could assist the
Yemeni people in re-engaging in their economy and, as a result,
create an environment conducive to political accommodation.

ADVICES &
RECOMMENDATION:
REFERENCES:
HTTPS://WWW.BRITANNICA.COM/PLACE/YEMEN

HTTPS://WWW1.OANDA.COM/CURRENCY/ISO-
CURRENCY-CODES/YER

HTTPS://WORLDCOINSINFO.COM/WORLD/YE
MEN-COINS.HTML

HTTPS://WWW.HERITAGE.ORG/INDEX/COUNTRY/
YEMEN

HTTPS://VISUAL.LY/COMMUNITY/INFOGRAPHICS/
POLITICS/YEMEN-CRISIS-FACTS-AND-FIGURES

HTTPS://CARNEGIEENDOWMENT.ORG/2012/04/0
3/BUILDING-BETTER-YEMEN-PUB-47708

HTTPS://WWW.WORLDBANK.ORG/EN/COUNTRY/
YEMEN/OVERVIEW#2

RIO, STEPHEN JAY C.

BADANOY, APRIL
DENIEGA, MATT LAURENCE
BSMA-1A