Yemen Socio-Economic Update, Issue 50 - July, 2020 [EN/AR]

Situation Report
Originally published


Limited Regional and International Funding for the Yemen Humanitarian Response Plan and its Repercussions on the Socio-Economic Situation

In this edition:

I: The Economic and Financial Position
II: Funds Provided to Yemen by Donors and Humanitarian Partners during 2011-2019
III: Evolution of Plans to Address the Humanitarian situation and Responses by Yemen’s Partners
IV: Humanitarian Actions in Yemen 2020 and Limited Funding
V: Limited Funding and Its Ramifications
VI: Strategic Directions Needed for Efficient Regional and International Funding

For most of the past years, or since the second decade of the 3rd millennium to be specific, Yemen’s economy has been, and is still, experiencing stormy and unstable socioeconomic and political tumults. These events have syphoned off most of the sources needed for economic growth and they hindered natural, human, geographical and historical resources from being invested to their full potential, and relatively squandered the development gains made so far. The pace of these crises since 2014 and the severe imbalances and challenges they brought have aggravated to an unprecedented level. Ever since, the country has entered into the fray of conflict and war, with its collateral damage on the infrastructure and production and service capabilities, as well as the diversion of the development path backward for years more likely to last long, should such conditions continue, which might compromise stability, peace and sustainable development.

Given all these factors combined, amongst others, the economic activity has contracted by more than 50%, while the per capita share of the GDP decreased by about two-thirds in today’s dollar. In addition, poverty has spread among 80% of the population, with the middle class being relatively eroded, especially public servants who depend on their salaries as a main source of income, while unemployment rates have risen to critical levels and investments fled the country in search of safe havens abroad.

These implications have also extended to the social and humanitarian spheres, where the total number of people facing severe acute food insecurity increased to over 67% of Yemen’s population(1), while this number could drop to 53% in the presence of humanitarian food assistance.

Malnutrition rates have also jumped with some 24 million people had their livelihoods deteriorated and are now in need of some form of humanitarian assistance. Moreover, there are 3.6 million IDPs now and one million+ displaced people outside Yemen. The crisis has also triggered a significant wave of brain drain, mainly scientists and professionals, who managed to search for decent work opportunities and stable life, let alone the breach in the wall of the social fabric, which begins to threaten social stability, the national identity and inspirational cultural values.
This issue of the YSEU Bulletin sheds some light on the regional and international financial support for response plans designed to alleviate the humanitarian crisis and prevent further deterioration, as well as looking at strategic transformations needed to promote the efficiency and role of regional and international funding.