New Working Paper on Understanding Yemen's Economy

Published

This working paper, authored by Richard Barltrop, TPP Associate and LSE Middle East Centre visiting senior fellow, explores how the prevailing picture of Yemen's economy is incomplete and misleading. Economic estimates ignore between half and two-thirds of the country. Analyses overlook Yemen’s relative strengths in infrastructure, agriculture and remittances, and overestimate the importance of oil and gas. This inaccurate picture of Yemen’s economy, which ignores the political context, has significant consequences. It contributes to an international misapprehension, whereby the country’s economy is seen primarily in terms of precarity and humanitarian emergency, with capabilities and resilience under-recognised. 

The paper makes four recommendations to the international community:

1. Take a political economy perspective, combining analysis of Yemen’s economy with an understanding of the actual political and governance situation in the country.

2. Move away from unexamined assumptions and clichés about Yemen, and instead find and use new sources of data.

3. Draw on more accurate understandings of Yemen’s economy to contribute to peace efforts.

4. Use these fuller understandings to rebalance assistance to Yemen, with a shift from humanitarian towards development and peace-supporting aid.