Specialist in Middle Eastern Affairs
With limited natural resources, a crippling illiteracy rate, and high population growth, Yemen faces an array of daunting development challenges that some observers believe make it at risk for becoming a failed state in the next few decades. Between 2007 and 2008, it ranked 153 out of 177 countries on the United Nations Development Programme’s Human Development Index, a score comparable to the poorest sub-Saharan African countries. Over 43% of the population lives below the poverty line, and per capita GDP is estimated to be between $650 and $800. Yemen is largely dependent on external aid from Persian Gulf countries, Western donors, and international financial institutions, though its per capita share of assistance is below the global average.
As the country’s population rapidly rises, resources dwindle, and terrorist groups take root in the outlying provinces, the Obama Administration and the 111th Congress are left to grapple with the consequences of Yemeni instability. Traditionally, U.S.-Yemeni relations have been tepid, as the lack of strong military- to-military ties, commercial relations, and cross cultural exchange has hindered the development of strong bilateral ties. During the early years of the Bush Administration, relations improved under the rubric of the war on terror, though Yemen’s lax policy toward wanted terrorists has stalled large scale U.S. support.
Over the past several fiscal years, Yemen has received on average between $20 and $25 million annually in total U.S. foreign aid. For FY2010, the Obama Administration has requested significant increases in U.S. assistance to Yemen. The State Department’s FY2010 budget request seeks an estimated $50 million in total aid. The request includes $10 million in Foreign Military Financing, $35 million in Development Assistance, $4.8 million in Global Health-Child Survival funds, and about $2 million in other aid.
P.L. 111-17, the Consolidated Appropriations Act, 2010, provides a total of $52.5 million in economic and military assistance to Yemen, including $35 million in Development Assistance, $12.5 million in Foreign Military Financing, and $5 million in Economic Support Funds.
As President Obama and the 111th Congress reassess U.S. policy toward the Arab world, the opportunity for improved U.S.-Yemeni ties is strong, though recurring tensions over counterterrorism cooperation and lack of U.S. interest in Yemen within the broader foreign policy community persist.
Date of Report: December 30, 2009
Number of Pages: 29
Order Number: RL34170
Price: $29.95
Document available electronically as a pdf file or in paper form.
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