World Bank: Yemen Among Poorest Country in the World

Millions of Yemenis suffer from economic shocks and food insecurity. (United Nations)
Millions of Yemenis suffer from economic shocks and food insecurity. (United Nations)
TT

World Bank: Yemen Among Poorest Country in the World

Millions of Yemenis suffer from economic shocks and food insecurity. (United Nations)
Millions of Yemenis suffer from economic shocks and food insecurity. (United Nations)

Yemen is one of the most food insecure, and possibly poorest countries in the world, a recent World Bank report showed.

The report, Poverty and Equity Assessment 2024, placed Yemen in the company of Afghanistan, Haiti, Somalia, South Sudan, Sudan and the Sahel countries, each among the poorest 15 percent of countries worldwide.

Yemen was a poor country before war broke out, and ten subsequent years of conflict and crisis have had dire effects on living conditions with many millions of Yemenis suffer from hunger and poverty.

But according to World Bank experts, a lack of data makes it hard to estimate exactly how many people are poor, or to analyze the main drivers of poverty.

It said Poverty Assessment synthesizes multiple novel data sources to assess how the Middle East and North Africa’s (MENA) poorest country likely became one of the most impoverished countries worldwide; and how ordinary Yemenis cope—or attempt to cope—with multiple, overlapping deprivations.

The World Bank said a decade ago, Yemen was already a low-income country and 49 percent of Yemenis lived below the national poverty line.

Given the significant deterioration in economic conditions over the course of the war, it concluded that poverty has risen in the intervening years—particularly through ten years of war.

Also, efforts to end the complex, internationalized conflict, have been repeatedly spurned.

It said cautious optimism that an informal, but enduring, truce could be converted into a permanent ceasefire in 2023 has diminished.

As the report was being completed, many World Bank observers warned that the country could be significantly impacted by the Middle East conflict and local repercussions. This is not an eventuality that ordinary Yemenis can afford.

The report found that unreliability of income, livelihoods and food on the one hand, and the vulnerability of ordinary Yemenis to the many economic shocks experienced since the start of the war have been the main drivers of poverty.

By August 2015, after just a few months of war, 48 percent of Yemenis had a poor food consumption score, a more than four-fold increase from the year before, in line with a broader collapse in economic output.

It also showed that food insecurity reached its lowest point in 2018 when the war’s physical and economic dimensions intersected.

But after improvements in 2019 and 2020, in part due to a huge influx of aid, the situation deteriorated due to several major shocks: the Houthi militias’ military campaign in Marib, the COVID-19 pandemic, the 2022 Russian invasion of Ukraine and accompanying price shocks.

The World Bank report admitted that food insecurity has improved since a truce was announced in 2022, but said that Yemen remains among the countries with the most hunger in the world, with around half of the population suffering poor or inadequate food consumption.

It said the food security crisis is fundamentally one of access—people’s ability to pay for goods in local markets—but with some caveats.

While basic food items continue to be imported and provided through humanitarian assistance, the World Bank said food prices have risen sharply over the course of the conflict and household incomes have failed to keep pace with inflation.

On the other hand, food supply has fallen over the course of the conflict, particularly as domestic agricultural productivity weakened, while Yemen’s population has grown by an estimated 18 percent since 2015.

The report said economic conflict has become an important factor in driving food insecurity.

During the first few years of the war, it said Houthi-controlled areas demonstrated the worst food security outcomes.

It added that in 2019, the Houthi ban on new banknotes drove a surge in the price of basic goods and hence food security.

In Yemen, the report said access to water, sanitation, electricity, education, and healthcare have all become much more limited since the beginning of the war, despite some gains made just before the conflict started.

In particular, access to electricity through the public network has deteriorated significantly, as 15 percent of Yemenis are connected to the grid in 2023, compared to 78 percent in 2014.

Meanwhile, the report said that given significant data-gathering constraints, the poverty estimate in Yemen cannot be considered definitive.

Data-gathering constraints make it impossible to calculate monetary poverty levels using conventional methods, the World Bank noted, warning that data gaps and a lack of reliable information from the ground are a significant barrier to poverty and other forms of economic analysis.

There have been several attempts to estimate poverty in Yemen, but these rely on outdated data and several assumptions.

For example, the report said statistical modelling conducted for the last World Bank Country Economic Memorandum for Yemen extrapolates a headcount poverty rate as high as 74 percent in 2022, which could reach between 62 and 74 percent by 2030, depending on the trajectory of the conflict and various scenarios of either continued conflict or recovery.

The report also showed that in dire humanitarian emergencies such as Yemen’s, monetary poverty often converges with measures of food access, as a greater share of available income is used to cover basic nutrition.

It added that there is also a strong and nearly universal pattern of the share of food expenditure increasing as income declines. Food security data is also among the highest-quality and most uniformly and frequently gathered in Yemen, the report noted.



Iraq Preoccupied with Potential Broad Israeli Attack

Iraqi PM Mohammed Shi al-Sudani at an emergency national security council meeting. (Iraqi government)
Iraqi PM Mohammed Shi al-Sudani at an emergency national security council meeting. (Iraqi government)
TT

Iraq Preoccupied with Potential Broad Israeli Attack

Iraqi PM Mohammed Shi al-Sudani at an emergency national security council meeting. (Iraqi government)
Iraqi PM Mohammed Shi al-Sudani at an emergency national security council meeting. (Iraqi government)

Baghdad has been preoccupied this week with serious possibilities that Israel may expand its war on Gaza and Lebanon by striking several targets in Iraq in retaliation to attacks by Iran-backed armed factions.

Concern has been high that Israel may attack government buildings, oil fields and strategic locations, not just the positions of the armed factions that have previously launched attacks against Israel, said sources close to the pro-Iran ruling Coordination Framework.

Media sources have spoken of government speculation that Iraq could come under “300 Israeli attacks”.

The fears in Iraq have been compounded by an Israeli complaint to the United Nations Security Council against seven armed factions and holding Baghdad responsible for the attacks they have carried out against it.

This prompted the government, through the foreign ministry, to send an official letter to the Security Council, UN Secretary-General, Arab League and Organization of Islamic Cooperation in response to the Israeli threats.

The ministry said on Saturday that Iraq is “the cornerstone of stability in the region and world and it is one of the countries that are most committed to the UN Charter.”

“The Zionist entity’s letter to the Security Council is part of a systematic policy aimed at creating claims and excuses in an attempt to expand the conflict in the region.”

It said Iraq has turned to the Security Council out of Iraq’s keenness on the international body carrying out its duty in maintaining international peace and security and the need to rein in the “Zionist aggression in Gaza and Lebanon.”

Moreover, it stressed that Iraq has been keen on exercising restraint when it comes to the use of its airspace to attack a neighboring country.

Israel has used Iraqi airspace to launch attacks against Iran in October.

Iraq underscored the importance of the international community stepping in to “stop this hostile behavior that is a flagrant violation of international law.”

It called for international efforts to stop the Israeli escalation in the region and ensure that international laws and treaties are respected to consolidate security and stability.

Meanwhile, a source close to the Coordination Framework said the main Shiite parties are taking the Israeli threats “very seriously”, urging Prime Minister Mohammed Shia al-Sudani's government to take “all the necessary measures to avert a potential Israeli strike.”

All leaders of armed factions, as well as Shiite leaders, have taken up alternative locations and are moving under great secrecy, confirming that they have changed the majority of their military positions, said the source.

It also dismissed claims that Israeli jets have overflown Iraq, saying nothing has been confirmed, but not ruling out the possibility, especially since US forces have control over Iraqi skies and Iraq is helpless against stopping these violations.

Iraq had submitted a formal complaint to the UN and Security Council over Israel’s use and violation of its airspace to attack Iran.

Analyst and former diplomat Ghazi Faisal said the pro-Iran armed factions have been gathering their forces in the Sinjar province, which is strategic for Iran’s arms deliveries and logistic support to Syria where attacks can be carried out against American forces and the Israeli-occupied Golan Heights.

Sinjar is one of the most important strategic bases for the Iranian Revolutionary Guards Corps, he added.

Furthermore, he noted that the armed factions insist on continuing the war against Israel, rejecting government calls for calm and neutrality.

The government’s statements are aimed at delivering a message that it “is not directly responsible for the strategy of these factions,” which follow Iran’s policies.

Iraq has repeatedly said that it refuses for its territory to be used to attack another country, but some observers believe that it may allow Iran to do so should Israel strike.