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Country Highlights

Yemen: Strategies For Rebuilding the Economy

Rebuilding Yemen’s economy following an end to conflict will be an immense long-term challenge requiring coordinated domestic and international support.

Restoring essential services and addressing humanitarian needs must take priority. This involves repairing ports, roads, power/water systems, and strengthening food/fuel imports. Coordination between UN agencies, Gulf donors, and Yemen’s government is needed.

Rehabilitating agriculture and fisheries should focus on input subsidies, equipment, training and market access to restart rural livelihoods critical to food security. Reparations for looted/destroyed assets can encourage returns.

Infrastructure investment partnerships between Yemen, Gulf states and multilateral lenders can help modernize ports, airports, rail and facilitate regional/global trade integration vital for economic recovery.

Public finance and debt restructuring, within the country of Yemen, are urgent to allow government salaries and services to resume. Coordinated debt relief and budget support from international creditors and institutions can enable this.

Private sector led industrial and service sector growth requires legal/regulatory reforms, skills training programs, special economic zones and targeted tax incentives over the medium-term.

In Yemen – Monitoring and evaluation of progress, coupled with continued security cooperation and political reconciliation between Yemeni parties will also be important to sustain recovery momentum over the long-run.

More in-depth sectoral analyses and feasibility studies are needed to design bankable projects that can attract investment to the rebuilding phase. Lessons from other post-conflict contexts should also be considered.

Public works programs through cash-for-work or food-for-work schemes can employ many Yemenis in clearing rubble, rebuilding infrastructure and rehabilitating agricultural lands. This revives livelihoods and community self-reliance while stimulating local economies.

Microfinance initiatives specifically targeting women can help compensate for lost income and assets during the war. Experience shows empowering women spurs multiplier effects like better healthcare and education for children. war. Experience shows empowering women spurs multiplier effects like better healthcare and education for children.

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Featured Reports

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