Rethinking Yemen development projects and priorities

As the world watches the escalating political instability and civil unrest in Yemen, the foreign aid and international development community should be rethinking its strategies for the country. The reality is that Yemen, the Arab world’s poorest nation with over 23 million citizens, has not traditionally received the aid attention that some might expect and it remains to be seen how today’s dynamics will impact aid flows and project implementation in the future. Even before long-time President Ali Abdullah Saleh’s regime began to fracture, Yemen’s socio-economic condition was desperate. While Yemen’s oil and natural gas reserves have buoyed its economy over the years, essential services, particularly water, have always been scarce across the geographically isolated and desert dominated country located at the southern tip of the Arabian Peninsula. Since the unrest began, a New York Times article confirmed that water is the most needed of all supplies in Yemen, with food and cooking gas high on the list as well. Devex procurement and project data indicates that the World Bank, United Nations, and EuropeAid have been the most active agencies in Yemen over the course of the last 10 years. The data further reveals that since 2003 the World Bank has been focusing its efforts on water-related projects in Yemen. In fact, since last year, 31 percent of World Bank projects in Yemen have focused on improving water access for households and the agricultural sector. >> Devex procurement and project data The stakes in Yemen are raised significantly due to the country’s deep history of rebellion as well as the presence of what Washington calls the most active terrorist cell in the world. Accordingly, the U.S. Agency for International Development scaled up its programs in Yemen beginning in 2010 with a focus on education, governance, job creation and youth-oriented projects. USAID’s official funding requests have increased significantly year-on-year from $80.3 million in 2010 to $106.6 million in 2011 to $120.2 million in 2012. As unmanned American drones continue to launch attacks against terrorist targets on Yemeni soil and with counter terrorism remaining a top U.S. government priority, approximately $50 million of both the 2011 and 2012 USAID budget requests will be directed to peace and security programs. Of course, all aid allocations to Yemen are subject to conditions on the ground as both the United States and the Netherlands intend to freeze funding for development projects until the situation stabilizes. Health and social programs for internally displaced people will be the international development community’s focus in the short-term. The U.N. Office for the Coordination of Humanitarian Affairs reports that humanitarian agencies have significantly downsized their international staff presence, but capacity still exists as some local non-governmental organizations remain active. Approximately $6.3 million of the U.N. Central Emergency Response Fund has been issued in response to Yemen’s civil unrest and about $126 million has been pledged to the Yemen Humanitarian Response Plan managed by the Yemen humanitarian country team. While 2011 procurement and project figures appear to be roughly on pace with 2010 rates, the longer-term financing and procurement outlook for Yemen is impossible to define at this unpredictable and volatile juncture. What is clear, however, is that the post-Arab Spring Yemen will require major increases in foreign aid and an innovative and coordinated development strategy that has never been tested in the country. Louie-An Pilapil contributed to this report.