Yemen’s economy: Unable to balance the books

Posted: June 17, 2014 in economy
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FOR months residents of Sana’a, Yemen’s capital, have been complaining about deteriorating security, shortages in fuel and electricity and the rising cost of living in the Arab world’s poorest country. On June 10th an attack by tribesmen on a power plant that supplies the city with electricity brought frustrations to a head.In the midst of a 36-hour blackout the day after, young men set up roadblocks, first in the backstreets and then on the city’s main roads and squares, bringing activity to a halt. “We are here because there is no fuel, no electricity, no water, everything is expensive, there are no jobs and the government does nothing to help us,” says 24-year-old Muhammad Saleh. “Something needs to change.Abd Rabbo Mansour al-Hadi, Yemen’s president, responded with a government reshuffle and announced that more fuel would be brought into the capital from the western port of Hodeidah. The protesters left the streets, but they are likely to return. Government officials gloomily predict worsening shortages—and unrest—in the coming months. The simple fact, they admit, is that Yemen is running out of cash.Since 2011 attacks by tribesmen on an export pipeline linking the oil-rich Mareb province in central Yemen with export facilities on the country’s west coast have cut off lucrative oil sales on the international market as well as the supply of cheap oil to Yemen’s …

via Economic Crisis


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