Yemen is the poorest country in the MENA region, where nearly half of the population lives on less than $2 a day. While basic human development indicators lag behind, the World Bank and International Monetary Fund (IMF) have encouraged the government to cut expenditure and pursue investor-friendly economic reforms.
Because of Yemen's dependence on donor funds, the World Bank and its sister institution, the International Monetary Fund (IMF), have 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 economic reforms prescribed by these institutions, such as the removal of fuel subsidies in 2005 which culminated in widespread, violent protests.
As Yemen faces a number of critical development challenges, including high unemployment, diminishing oil reserves and depletion of water resources, these international financial institutions (IFIs) have persuaded the government to adopt a series of economic reform measures that would cut government expenditure and aim to encourage foreign investment. The proposed reforms, however, could significantly impact the provision of basic services to the poor and raise the cost of living.
BIC's Middle East & North Africa (MENA) Program has identified Yemen as one of the key countries in the region where civil society engagement is necessary to monitor the activities and projects of the World Bank and other IFIs.
Following an outreach visit to Sana'a in October 2007, BIC has assisted local civil society organizations in monitoring and engaging the World Bank to make their voices and demands heard. These interactions have led to some early successes in exposing violations of Bank policies and gaining traction in a push to make crucial Bank documents available in Arabic.
Download BIC's country study for NGOs to find out more about the work of the IFIs in Yemen: