CEIP, Sep 09: Yemen: Avoiding a Downward Spiral
Key Conclusions:

- There are increasing indications that al-Qaeda is regrouping in Yemen. Recent counterterrorism measures in Saudi Arabia have forced extremists to seek refuge elsewhere, with a steady flow relocating to Yemen’s under-governed areas.

- The ceding of authority by the weak central government to local government has proved counterproductive by limiting control over volatile under-governed territories.

- The security situation is rapidly deteriorating. Fighting with Shi’i rebels in north Yemen has strained the army, and Yemen is unable to protect its coast from the recent surge in piracy.

- The poorest in the Arab world, with unemployment at 35 percent, Yemen’s economy has been severely effected by the dramatic fall in oil prices and has few sustainable post-oil, economic options.

- Yemen is running out of water. Rising domestic consumption, poor water management, corruption, the absence of resource governance, and wasteful irrigation techniques are creating frequent and widespread shortages.

- Yemen’s lack of food and water is complicated by the population’s dependence on qat, a quick-cash crop that requires heavy irrigation to thrive. Farmers devote so much land to qat production that Yemen is now a net food importer.