Yemen is a country that has faced numerous challenges in recent years, ranging from humanitarian and political difficulties to economic and infrastructure woes. The ongoing conflict in the country has only exacerbated these issues and left the Yemeni population in dire need of assistance on numerous fronts. While the international community has been active in trying to address the situation, there remains much to be done to help the Yemeni people recover and rebuild.
CIPE’s Managing Director of Programs Abdulwahab Alkebsi offers his insights.
Yemen: A Crisis in Search of a Solution
One of Yemen’s most pressing challenges is the need for a stable and effective state structure. The conflict in the country has left many areas without functioning government institutions, leading to a vacuum of authority and a proliferation of armed groups. And this has created significant difficulties for the Yemeni private sector, which has struggled to provide the goods and services that the population needs.
Despite the challenging environment, many businesses have been stepping up to find solutions for filling important gaps
Despite the challenging environment, many businesses have been stepping up to find solutions for filling important gaps. For instance, the Studies and Economic Media Center reports that small and medium-sized enterprises have been providing critical food supplies and other necessities to citizens. The Yemen Economic Reform Team has documented private sector efforts to support the health sector, providing medical supplies and equipment to hospitals and clinics.
There is hope that peace negotiations between Saudi Arabia and the Huthis, as outlined in a recent report by the International Crisis Group, are an indication of new possibilities for the country to move forward. The brief is entitled How Huthi-Saudi Negotiations Will Make or Break Yemen, and while the political risks associated with the talks are significant, the potential benefits for the Yemeni people are even greater.
For the peace process to be successful, the Yemeni economy must be given the opportunity to recover and grow
The success of these negotiations will depend not only on the political track, but also on the economic track. For the peace process to be successful, the Yemeni economy must be given the opportunity to recover and grow. Experts agree this will require leadership from the country’s private sector, in addition to support from the international community, especially the United Nations and United States Special Envoys to Yemen.
The private sector can help rebuild the country and provide a better future for the Yemeni people by creating jobs and spurring economic growth. Creating work for the country’s rapidly growing youth population will be essential, as many have been swept up in the conflict and earn a living through those activities. Women’s access to employment and other freedoms are among the other growing concerns that must be addressed, in addition to monetary policy and anti-corruption.
The international community plays a critical role in strengthening Yemen’s private sector. This includes investing in infrastructure, providing access to finance and capital for businesses, and other forms of support for entrepreneurship and job creation. The Center for International Private Enterprise is among the organizations that have helped document and develop numerous approaches to help implement meaningful reform, working with local partners and business communities. For example, CIPE recently opened a Yemen Hub based in Amman, Jordan to hold various dialogues among stakeholders and other activities.
Meanwhile, countries that are successfully rebuilding their economies post-conflict offer examples of how Yemen may approach its own recovery and a common thread is strong private sector involvement. Among the examples: Bosnia and Herzegovina, Kosovo, and Sierra Leone.
Private sector efforts show remarkable resilience and demonstrate that business should play an essential role in Yemen’s reconstruction
In conclusion, Yemen is facing significant challenges, but private sector efforts show remarkable resilience and demonstrate that business should play an essential role in Yemen’s reconstruction. For this to happen, the international community must be willing to support the private sector and invest in Yemen’s future. This happens by engaging Yemen’s private sector in the development of strategies and plans for improving the country’s economy. By doing so, we can help to create a better future for the Yemeni people and ensure that the country never again faces the kinds of difficulties it is currently experiencing.
Abdulwahab Alkebsi is CIPE’s Managing Director for Programs and oversees the organization’s projects in more than 80 countries, including Yemen, Egypt, Nigeria, Ethiopia, Slovakia, Philippines, Cambodia, Colombia, and Guatemala.
Banner image: Santiago Urquijo/Getty Images
Published Date: February 11, 2023