Yemen's uncertain future | The Economist
- 5 years ago
Violence in Yemen has largely subsided but the country continues to suffer severe economic disruption and crippling fuel shortages
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After four months of protests calling for the country's president to stand down and ten days of fierce tribal fighting that left hundreds dead, an uneasy peace has descended on the streets of Sanaa but Yemen's fragile economy has reached a breaking point. The economic disruption caused by the violence has sent living costs to the Yemenis soaring.
Yemen is one of the world's hungriest and since the unrest food prices have risen sharply. More than 40% of Yemenis earn less than $2 a day. With millions already short of food more expensive bread could mean starvation for many. Being able to afford fresh water is another problem.
Only two months ago a tank of water that lasted a household of five to ten people a few days cost 1500 Yemeni riyals (about $15).
One reason that things are getting more expensive is because of fuel shortages. The result of anti-government tribes in the oil-producing area of Marib bombing an oil pipeline. Oil cannot be transported to be refined. Petrol and cooking gas are now in short supply and the cost of bringing in food and water has soared. The roads are empty and Yemeni spend hours waiting to fill up with petrol.
Their frustration is evident.
Things may yet get worse. The central bank's reserves are dwindling jeopardising the government's ability to import vital commodities like wheat and rice. Amid the uncertainty people are stockpiling food, fuel, and water.
Speaking off the record, one senior official said it's a miracle the economy have not collapsed entirely but with oil and tax revenues down and expenditure up, as fuel now has to be imported, an implosion may not be far off.
Many Yemenis hope for financial help from their wealthy neighbour, Saudi Arabia, which has come to their rescue in the past.
For the time being, there's a sense that the country's future is on hold. Whether Mr Saleh is gone for good remains to be seen. In the meantime, his opponents and the forces that remain loyal to him are preparing for more fighting.
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After four months of protests calling for the country's president to stand down and ten days of fierce tribal fighting that left hundreds dead, an uneasy peace has descended on the streets of Sanaa but Yemen's fragile economy has reached a breaking point. The economic disruption caused by the violence has sent living costs to the Yemenis soaring.
Yemen is one of the world's hungriest and since the unrest food prices have risen sharply. More than 40% of Yemenis earn less than $2 a day. With millions already short of food more expensive bread could mean starvation for many. Being able to afford fresh water is another problem.
Only two months ago a tank of water that lasted a household of five to ten people a few days cost 1500 Yemeni riyals (about $15).
One reason that things are getting more expensive is because of fuel shortages. The result of anti-government tribes in the oil-producing area of Marib bombing an oil pipeline. Oil cannot be transported to be refined. Petrol and cooking gas are now in short supply and the cost of bringing in food and water has soared. The roads are empty and Yemeni spend hours waiting to fill up with petrol.
Their frustration is evident.
Things may yet get worse. The central bank's reserves are dwindling jeopardising the government's ability to import vital commodities like wheat and rice. Amid the uncertainty people are stockpiling food, fuel, and water.
Speaking off the record, one senior official said it's a miracle the economy have not collapsed entirely but with oil and tax revenues down and expenditure up, as fuel now has to be imported, an implosion may not be far off.
Many Yemenis hope for financial help from their wealthy neighbour, Saudi Arabia, which has come to their rescue in the past.
For the time being, there's a sense that the country's future is on hold. Whether Mr Saleh is gone for good remains to be seen. In the meantime, his opponents and the forces that remain loyal to him are preparing for more fighting.
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The Economist videos give authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them.