The Failed State of Yemen: Poverty, Security, Regional Concerns & Outlook
Yemen’s instability is a risk for the whole Middle East region. Both western and regional powers have been too focused on Yemen’s perceived security threats, focusing on military solutions only. The problems are more complex and rooted in Yemen’s failure to develop institutions, weakening the State. This has resulted in instability and factionalism.
• Yemen and its international backers must now choose whether to continue along the path of instability by upholding a presidential legacy based on security concerns alone, or whether to embrace change and address the socio-economic problems that have rendered Yemen unstable in the first place.
• Because of the limitations of Yemen’s current econom, foreign investors are not exposed as they are limited to a handful of players. Yet, Yemen has a high potential for resource development, which will have to be the focus of support from Saudi Arabia and the US in an effort to stablize and grow the country; Yemen needs considerable infrastructure improvements, which would serve as an investment opportunity for regional governments and corporations in order to help prepare the country for longer-term economic stability.
• Investment should aim to improve agriculture, create the conditions favoring export crops such as coffee, which has suffered considerable neglect in recent years, address a chronic water shortage and ultimately improve employment prospects for youth. The continuation of current policies aimed squarely at security favor autocrats and
This report for MEA Risk Advisory Service looks at Yemen in its current position and future outlook. Details of the report are available here. Follow this link.