Yemen has become a hotbed where human trafficking, piracy, illegal arms trade and terrorism are creating huge challenges for the country. Furthermore, deteriorating economic development has transformed the Yemeni economy into a war economy where different entrepreneurs are seeking to enrich themselves through illegal activities.

Unless its negative spiral is broken soon, Yemen will probably suffer the same fate as neighbouring Somalia. Increased instability leads to a stronger terrorist presence and a growth in illegal activities, developments that inevitably will affect nearby countries negatively.

Yemen’s weakened economic strength and political instability attract foreign actors and militant groups. Terror networks are able to acquire more political influence, the longer Yemen remains as a power vacuum. The FOI report “Yemen in Crisis – Consequences for the Horn of Africa” draws the conclusion that the lack of economic development is one of the major causes for Yemen’s current political turmoil.

“A combination of falling oil production and growing domestic petroleum consumption has impaired Yemen’s ability to obtain hard currency,” says Alexander Atarodi, security policy analyst at FOI. He explains that Yemen is further weakened by a domestic rebel movement in the north, a separatist movement in the south and increased Al-Qaida activities. The difficult economic situation for ordinary people nourishes political instability.

The report also describes the dynamics of the political relations with the adjacent countries in a regional context. “Yemen needs international support, both political and economic, to deal with the serious economic problems and the widespread common poverty and to stimulate a development that will improve daily life for the quickly growing population,” concludes Alexande Atarodi.

Read the report Yemen in Crisis – Consequences for the Horn of Africa by Alexander Atarodi.