Yemen’s Conflict: Cascading Economic Crises

By Ammar Abdulla
Submitted to Session P6404 (Forgotten War’s Tragedies in Yemen, 2021 Annual Meeting
Econ
Yemen;
LCD Projector without Audio;
Yemen’s economy has been significantly affected by the ongoing conflict. The destruction of the infrastructure and production facilities coupled with the disruption of economic and investment activities has been shattering. This persistent and rapid destruction has occurred within different sectors and taken various forms, resulting in a series of economic and social crises causing what is often described as “the worst humanitarian crisis”. Acute shortages in essential goods and services, such as health care, education and oil derivatives, have become the daily norm for Yemenis.

Moreover, the currency devaluation led to the deterioration of purchasing power among citizens. More people slid below the poverty line; the majority of households suffer extreme poverty and severe food insecurity, unable to afford food or any other essentials, which exacerbates the growing humanitarian crisis.

In this paper, I intend to investigate the grave implications of the conflict on the economy and living standards using both qualitative and quantitative analysis. I will review the up-to-date literature, reports and statistics published by governmental and non-governmental stakeholders. Deriving from the outcomes of this research, I will provide recommendations and insights for possible opportunities and initiatives to neutralize the economy and its institutions as well as to bring the warring parties to agree on certain arrangements to mitigate the impact of the war on the economy and alleviate people’s suffering.