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201. Restructuring Public Finances in Yemen

Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
Even before the current conflict, Yemen’s public finances suffered from an overdependence on energy exports, one of the lowest tax collection rates in the world, and chronic budget and balance of payments deficits. The government’s consistent operating deficits were funded through domestic debt instruments – drawing investment away from the private sector – borrowing from its own central bank, and foreign loans. Meanwhile, current (or recurring) expenditures dominated government spending relative to capital investments, indicating the state’s poor track record in development initiatives.
Topic:
Development, Economics, Tax Systems, Exports, Economic Development, and Capital Controls
Political Geography:
Asia, Yemen, and West Asia

202. Inflated Beyond Fiscal Capacity: The Need to Reform the Public Sector Wage Bill

Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
This policy brief addresses the issue of Yemen’s bloated public sector. Due to decades of corruption and patronage appointments, among other factors, public sector salaries were already a source of fiscal stress prior to the ongoing war. Previous efforts to downsize the public sector, notably those supported by the World Bank, produced few tangible results, as this brief outlines. During the conflict, the internationally recognized Yemeni government and the armed Houthi movement have added to the public sector payroll — particularly in the military and security apparatus — as the economy has contracted. Amid consistently large budget deficits, the inflated public sector wage bill is fiscally unsustainable and threatens to undermine economic recovery and future stability in Yemen.
Topic:
Economics, World Bank, Budget, Inflation, Public Sector, Fiscal Policy, and Economic Development
Political Geography:
Asia, Yemen, and West Asia

203. Priorities for Private Sector Recovery in Yemen: Reforming the Business and Investment Climate

Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
The business and investment climate for private sector actors in Yemen has long been challenging. The current conflict has expanded and magnified these changes such that today Yemen is last or near last in a host of global business competitiveness indexes. Many businesses across the country have closed and moved their capital elsewhere, while many of those that remain open have had to make drastic cuts to their workforces. However, relative to the public sector – which has seen the near collapse of most government institutions – the private sector has shown a far greater degree of resilience. Businesses have stepped in to replace absent government services in many areas, allowing access to basic commodities and providing livelihoods for millions of Yemenis.
Topic:
Economics, Business, Economic Development, and Private Sector
Political Geography:
Asia, Yemen, and West Asia

204. Transitional Government in Post-Conflict Yemen

Author:
Rafat Al-Akhali, Osamah Al-Rawhani, and Anthony Biswell
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
This policy brief offers recommendations to maximize the effectiveness of governance in post-conflict Yemen – whatever the composition or structure of the government. It presents three case studies on government models previously introduced in Yemen, Tunisia and Lebanon after periods of instability. These case studies offer useful lessons on the challenges, risks and opportunities of forming transitional governments in post-conflict contexts.
Topic:
Conflict Resolution, Economics, Government, Peacekeeping, Transitional Justice, Conflict, Peace, and Transition
Political Geography:
Asia, Yemen, and West Asia

205. The Repercussions of War on Women in the Yemeni Workforce

Author:
Hannah Patchett and Dr. Fawziah Al-Ammar
Publication Date:
07-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
This policy brief sheds light on how the ongoing conflict in Yemen has affected women’s participation in the workforce. It finds that the protracted conflict has, on the one hand, pushed more women into the workforce and new labor markets, in some cases into professions previously dominated by men. While some women have established new enterprises, often home-based businesses, others have engaged in poorly paid physical work in response to the economic crisis and the loss of male breadwinners. On the other hand, the war has imposed new constraints on an already low women’s participation rate. This policy brief recommends that micro-economic initiatives to bring women into the workforce must be accompanied by long-term efforts to address socio-economic structures that have historically constrained women’s access to the workforce. Interventions must be guided by local consultations with women and men from all demographics, and must promote work that is fairly paid and provides security and social protection. Quota systems could ensure that women play an active role in recovery and reconstruction efforts; women must also be engaged at all decision-making levels in peace building efforts and in post-conflict Yemen.
Topic:
Economics, Gender Issues, Women, Microeconomics, and Economic Development
Political Geography:
Asia, Yemen, and West Asia

206. Reconstruction and Recovery in Yemen: Recommendations from the Development Champions

Publication Date:
04-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
Nearly five years of conflict in Yemen have created a humanitarian catastrophe that has brought the country to the brink of famine. The economy has collapsed and fighting has ravaged the country’s infrastructure. The reconstruction and recovery of Yemen will demand rebuilding the economy, restoring state institutions and infrastructure and repairing the social fabric. As yet, no official, donor-led, comprehensive reconstruction process is underway. The Development Champions emphasize that reconstruction and recovery efforts must begin immediately, even while the conflict is ongoing. Urgent humanitarian interventions should be linked to Yemen’s long-term economic recovery. The reconstruction of Yemen should aim to transform the country, and not only to restore the status quo ante. Yemenis and local institutions must be involved in this process from the planning stages to ensure legitimacy and local ownership; ultimately, local actors will be responsible for implementing these plans. With these factors in mind, the Development Champions held in-depth discussions to develop recommendations and guidelines to ensure the reconstruction and recovery of Yemen is a comprehensive, effective process that has a long-term positive impact. This policy paper presents those recommendations. They include measures to link immediate humanitarian interventions to Yemen’s long-term economic recovery; mechanisms to address fiscal challenges and enhance social protection; guidelines to create new jobs, rebuild infrastructure and strengthen the rule of law; and strategies to enhance local governance and local inclusion in the reconstruction process.
Topic:
Economics and Economic Development
Political Geography:
Asia, Yemen, and West Asia

207. Economic Confidence Building Measures – Civil Servant Salaries

Author:
Mansour Ali Al Bashiri
Publication Date:
03-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
In December 2018, 23 of Yemen’s leading socioeconomic experts convened in Amman during the Fourth Development Champions Forum to discuss economic confidence-building measures in the peace process in Yemen. The discussions at the Forum, which is part of the Rethinking Yemen’s Economy initiative, touched on a number of economic mechanisms that could be implemented to build confidence. These included supporting the Central Bank as an independent institution that serves all of Yemen; ensuring the deposit of public revenues in all governorates at the Central Bank headquarters in Aden; and opening ports and ensuring the free movement of goods, humanitarian aid and people between governorates. The Forum focused on the payment of salaries and pensions to all civil servants due to the critical importance of the issue; this policy brief presents the outcomes of this discussion. As a key step to simultaneously address the humanitarian crisis in Yemen and build confidence between the parties engaged in the peace process, the Development Champions recommend that the Yemeni government resumes salary payments to all civil servants working in the administrative apparatus of the state registered in the Ministry of Civil Service database of 2014 across Yemen, prioritizing payments to education and health workers. The Yemeni government should also continue to provide liquidity to guarantee the payment of pensions to all public sector retirees. Meanwhile, Ansar Allah should allow all state revenues in areas under their control to be deposited into the accounts specified by the Central Bank of Yemen temporarily headquartered in Aden, and all parties should work toward the restoration of the Central Bank as a national institution that serves all of Yemen. The Development Champions call on regional and international donors to cover any funding gap to support the payment of salaries and pensions.
Topic:
Civil Society, Economics, Labor Issues, Income Inequality, and Economic Development
Political Geography:
Asia, Yemen, and West Asia

208. Priorities for Government Policy in Yemen

Publication Date:
02-2019
Content Type:
Policy Brief
Institution:
Sana'a Center For Strategic Studies
Abstract:
This policy brief outlines recommendations for the immediate priorities of the Government of Yemen, both to achieve quick wins and to prepare the ground for medium and long-term success. These recommendations are the outcomes of in-depth discussions held during the fourth Development Champions Forum convened on December 8-11, 2018, in Amman, Jordan. They are designed to offer Prime Minister Maeen Abdulmalik Saeed and his cabinet a set of practical measures to help the government build on the momentum and increased visibility it achieved in the final quarter of 2018. The immediate priorities recommended by the Development Champions include steps to support the stabilization of the local currency. an area in which tangible progress has already been made. The Champions also urge the government to regularize the payment of public sector salaries and pensions. Another immediate priority for the government should be to take steps to stabilize and transform Aden, the Champions suggest, based on the shared consensus that the southern coastal city could become a model for the rest of Yemen. The Champions emphasized that developing Aden would depend on improving the level of security across the governorate. While recognizing that the government faces immediate challenges that demand attention in Aden and across the country, the Development Champions urge the government to plan and implement procedures to prepare for the country’s medium and long-term future. These strategies should address the root causes of Yemen’s socio-economic instability, and not just its symptoms. Among the most important actions to prepare for long-term priorities is the expansion of the roles and responsibilities of local government authorities, the Champions concluded. During the conflict, decision-making authority has filtered down to the local level and become far more decentralized. The government should build on this new reality to reconfigure the state and its relationship with local government authorities.
Topic:
Economics, Government, Public Sector, and Economic Development
Political Geography:
Asia, Yemen, and West Asia

209. Resurgent Asia: Diversity in Development

Author:
Deepak Nayyar
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
In 1820, Asia accounted for two-thirds of world population and over half of world income. The subsequent decline of Asia was attributable to its integration with a world economy shaped by colonialism and driven by imperialism. By 1970, Asia was the poorest continent in the world, marginal except for its large population. Its demographic and social indicators, among the worst anywhere, epitomized its underdevelopment. A deep pessimism about Asia’s economic prospects, voiced by Gunnar Myrdal in Asian Drama, was widespread at the time.
Topic:
Economics, History, Economic Growth, and Economic Transformation
Political Geography:
Asia

210. Global Energy in Transition: How the EU Should Navigate New Realities and Risks

Author:
Andreas Goldthau
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Global energy demand is shifting to Southeast Asia. This new trade flow is altering market power because it not only follows natural economic development, but also results from strategic trade and investment policies that promote national interests. In this context, the EU needs to account for the geo-economic side effects of the new European Green Deal.
Topic:
Climate Change, Economics, Energy Policy, European Union, Risk, and Trade
Political Geography:
Europe, Asia, and Southeast Asia