Yemen is the poorest country in the MENA region, where nearly half of the population lives on less than $2 a day. With the political turmoil in 2011 causing a severe economic crisis in the country, the new Yemeni government is turning to the World Bank for technical and financial support.
While Yemen has typically relied on oil revenues for approximately 70% of its GDP, it has also been heavily reliant on donor funds from bilateral and multilateral sources. The World Bank has had enormous influence over the policies and programs of the government and the country’s ability to receive further loans or aid. To date, Yemen has had a turbulent experience implementing some of the reforms prescribed by the Bank and its sister institution, the IMF, and the country has not had the capacity to absorb all of the money it has received in grants.
As Yemen faces a number of critical development challenges, which have been compounded by the 2011 events, The World Bank is providing assistance to the Yemeni government in developing its economic development plans for the coming years. The Bank will also be a leader in coordinating donor finance to Yemen and these roles make transparency, accountability and participatory mechanisms for civil society at the World Bank critical at this moment especially.
BIC's Middle East & North Africa (MENA) Program is working to ensure that these spaces are available at the Bank and is working closely with Yemeni civil society in making use of these spaces.
In 2011, the Bank had 35 active projects in Yemen but closed its doors temporarily since adequate implementation and monitoring were not possible at the time. The Bank re-opened its doors recently and will be evaluating its portfolio re-starting some of the active projects while considering halting others all together if deemed to be unsuccessful.
In 2007, BIC produced a country study for NGOs to find out more about the work of the International Financial Institutions in Yemen and is currently preparing an updated study based on the recent political events.
Read the 2007 version below and stay tuned for the 2012 country study.