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Yemen + 2 more

Cash Consortium of Yemen (CCY) - Economic Drivers of Displacement in Yemen

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Introduction:

As Yemen enters its eighth year of conflict, the country faces interconnected social and economic crises, severely limiting the government’s ability to sustain vital public services and a stable employment market. Additionally, Yemenis’ purchasing power has dramatically reduced due to exchange rate volatility and increased global prices, driving many into food insecurity. Yemen’s economic decline is compounded by additional domestic and international shocks such as climate change, the COVID-19 pandemic and its aftermath, and the conflict in Ukraine. Yemen is also experiencing a humanitarian and displacement emergency, with about 23.4 million Yemenis (73% of the population) reliant on humanitarian assistance and about 4.3 million people displaced from their homes to other parts of Yemen as of March 2022. While estimates vary, from January to July 2022 - a period which covers the start of the truce in Yemen - 7,002 households (42,012 individuals) were displaced at least once according to the International Organisation for Migration’s (IOM) Displacement Tracking Matrix (DTM). However, the United Nations Population Fund and the Internal Displacement Monitoring Centre estimate the figure could be as high as 220,000 individuals. While projected displacement estimates in 2022 based on IOM figures represent a slight drop in the number of internally displaced person(s) (IDP) compared to 2021 (157,555), displacement and loss of homes and livelihood remain a reality for many. Many IDPs are displaced within their own districts, testing established definitions of displacement, which exclusively include individuals that move between governorates. For the purposes of this report, economic displacement can be defined as ‘displacement that arises when a household is forced to displace not as a result of conflict, due to economic opportunities no longer allowing households to afford basic, sometimes lifesaving, needs. This report aims to outline the factors behind economic displacement in Yemen by utilising humanitarian reports, news articles, and key informant interviews. The report concludes with recommendations for further research and best practices for developing humanitarian interventions for programs targeting IDPs.

Livelihoods as a Driver of Displacement:

According to a recent IOM study on IDP intentions in Hudaydah governorate, insecurity in place of origin remained the primary driver of displacement for about 72% of IDPs. However, 30% stated that livelihood opportunities in the location of displacement were the secondary reason for their continued displacement. Of those who cited livelihood opportunities in the location of displacement, 23% said a lack of livelihood opportunities in their location of origin is the reason they have not returned to their homes. Economic hardship also is a primary motivator for many IDPs to return to their original residence, despite being exposed to conflict-related risks. Alongside direct economic drivers, about 1,800 returnees in 2020 and 3,000 returnees in 2021 reported that shelter conditions in the location of displacement were the main reason for returning to their place of origin, potentially driven by high rent prices and lack of livelihood opportunities.

Despite these interconnected crises, the dynamics of economic drivers of displacement in Yemen remain unclear. According to the IOM DTM, a lack of livelihood opportunities is a contributing factor, with 22% of IDPs displaced between April and July reporting that economic considerations were the main drivers of their initial displacement. This has placed considerable pressure on host communities, particularly as Taiz and Hudaydah - the top two IDPs host destinations in 2022 and in close proximity to front lines - are already facing severe food insecurity as well as shortages of services. Studying displacement patterns while accounting for economic factors other than debt and income will provide a better understanding of these displacement patterns and help humanitarian actors design durable programmes.