The protracted conflict in Yemen has intertwined with a deepening economic crisis; manifest in a reduction of the country’s industry and agricultural infrastructure, a substantial proportion of Yemenis losing their jobs in the private sector, devaluation of the Yemeni currency, insufficient liquidity for government agencies to consistently pay public sector workers and a drop in livelihoods that has meant many Yemenis cannot afford basic food items. However, economic activities have not ceased, but have adapted to reflect the nature and needs of the crisis, with some benefiting from economic opportunities that did not exist before the violence. Importantly, this shift in economic activity represents both a threat to sustainable peace – for example, as war is conducted through economic means – and an opportunity, as economic activities have the potential to drive interaction and cooperation across divides.

 

In 2019-2020, CPCS MENA undertook research in Yemen to understand both societal costs and potential opportunities provided by this shift in economic activities. The research had the purpose of identifying measures that could be taken in the economic sphere to build confidence across divides and promote peace. This research was conducted jointly with a Yemeni specialised research centre under the umbrella of the GIZ-implemented programme ‘Peace Process Support for Yemen: Improving the capacities for non-violent conflict resolution in Yemen’. Funding was provided by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU).

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For more information on GIZ's program in Yemen, please click here.

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The final research report can be found here.