Policy paper

UK–Yemen development partnership summary, July 2023

Published 17 July 2023

Introduction

The Strategy for International Development (IDS) places development at the heart of the UK’s foreign policy. It sets out a new approach to development, anchored in patient, long-term partnerships tailored to the needs of the countries we work with, built on mutual accountability and transparency. This approach goes beyond aid and brings the combined power of the UK’s global economic, scientific, security and diplomatic strengths to our development partnerships. Our 4 priorities are to deliver honest, reliable investment, provide women and girls with the freedom they need to succeed, step up our life-saving humanitarian work, and take forward our work on climate change, nature, and global health. The Integrated Review Refresh (IR23) reiterates that sustainable development is central to UK foreign policy and sets out how the UK will go further and faster on development to reduce poverty and reinvigorate progress towards the SDGs. This Country Development Partnership Summary details how the IDS and IR23 will be put into practice with Yemen.

Country context

Yemen is currently ranked as the second most fragile country in the world ^{[footnote 1]} and remains one of the least developed. The current conflict stems from decades of long-standing grievances over corruption, elite capture of resources, and tribal, regional, and sectarian divisions ^{[footnote 2]}. The war is itself a complex aggregation of conflicts, exacerbated by religious, regional, and tribal components and the existence of multiple non-state armed groups with tangled front lines. Conflicts include:

1. the conflict between the Houthi movement, which controls most of North Yemen, and the Internationally Recognised Government of Yemen (IRG), which controls part of Central and South Yemen and shares power based on a fragile agreement with a secessionist movement, the Southern Transitional Council (STC)

2. violent extremist organisations which receded over the last years

3. local conflicts based on tribal divisions and power dynamics ^{[footnote 3]}

After 8 years of violent conflict, the humanitarian crisis is now one of the worst in the world – with three-quarters of the population in need of humanitarian assistance. According to the 2023 Humanitarian Needs Overview analysis ^{[footnote 4]}, 21.6 million people in Yemen are estimated to require humanitarian assistance in 2023 – of whom, 13.4 million people are assessed to be in acute need. Yemen ranks 155 out of 156 in the World Economic Forum’s Global Gender Gap Index (2021) (PDF, 12.9 MB), above only Afghanistan. Women experience high levels of inequality and are disproportionately affected by the economic and humanitarian crisis. Increasing restrictions on their freedom of expression and movement, particularly in Houthi controlled areas, put them at risk of gender-based violence.

The conflict in Yemen has devastated the economy, starving it of resources, exhausting foreign reserves, and exacerbating the trade deficit with disruptions to oil production. A severe shortage of hard currency, combined with weakened and fragmented policy capacity, and economic warfare, have pushed the costs of food and other necessities to record highs. Across Yemen, a shortage of foreign reserves, weak policy environment, and persistent fiscal deficits since conflict intensified in 2015 have contributed to a rapid depreciation of the currency and rampant inflation. This has severely weakened the purchasing power of people in Yemen ^{[footnote 5]}. In addition, fragile economic activity is increasingly at risk due to severe liquidity shortages.

Social inequalities and political and economic exclusion have contributed to Yemen’s fragility. Cultural norms have prevented the full participation of women and marginalised groups, such as religious minorities, refugees and migrants, and persons living with disabilities, in political, social, and economic life over several decades, and hindered the implementation of more progressive social policy. Discrimination against women is reflected in legislation, whilst groups such as the Muhamasheen ^{[footnote 6]} are frequently excluded from public service provision, land rights, and housing.

The UK is a key player in efforts to broker an end to the conflict, with strong relationships with all the key actors. The UK holds the pen on Yemen related issues at the United Nations Security Council (UNSC). We take the lead in driving political direction in the international arena, maintaining influence with the United Nations (UN) and partners. We also provide direct support to the UN Special Envoy’s team to facilitate an effective and inclusive peace process in Yemen, including at the subnational level. Yemen is one of the priority countries in the UK’s National Action Plan (NAP) for Women, Peace, and Security (WPS). The WPS agenda aims to respond to the disproportionate impact of conflict on women and girls and support the crucial role women play in conflict prevention through to resolution.

The UK is one of largest contributors to the humanitarian response, having contributed over £1 billion since the start of the conflict. The UK works with UN agencies, non-governmental organisations (NGOs) and other donors to respond to urgent humanitarian needs, deliver basic services and build resilience.

Why and how: the UK’s development offer with Yemen

The UK is supporting efforts to bring all parties back to the negotiating table to achieve an inclusive, political solution that delivers a peaceful future for the people of Yemen. Reducing conflict will ease the humanitarian crisis and allow the government and partners to focus on recovery, reconstruction, and development. Opportunities will depend on whether a number of local settlements or national settlement is agreed, and the conflict deescalates (scenario one), or whether the peace process largely stalls, and the conflict becomes more entrenched (scenario two).

Under both scenarios, the UK role in Yemen is guided by a cross UK Government strategy with 4 aims:

1. advance peace

2. alleviate the humanitarian crisis

3. boost economic stability and recovery

4. promote security

Advance peace

We will expand our diplomatic role and influence our partners to help build on 12 months of truce and truce-like conditions into a formal ceasefire. We will aim to steer the Quadrilateral Security Dialogue (Quad) ^{[footnote 7]}, Quint ^{[footnote 8]}, P5 ^{[footnote 9]} and other international groupings in support of the UN-led peace process. We will strengthen the Office of the Special Envoy of the Secretary-General for Yemen’s (OSESGY) ability to steer an inclusive and durable peace process. Our assistance and diplomatic support for national, sub-national, and local peacebuilding will underpin peace, stability, and inclusivity.

Alleviate humanitarian crisis

We will provide humanitarian assistance to save the lives of vulnerable people in Yemen and protection services for women and girls who have experienced, or are at risk of, violence. Our diplomatic engagement will improve access, protect civilians, and advocate for the respect of International Humanitarian Law. We will improve livelihoods, expand access to basic services, and build the resilience of vulnerable households and communities. Our research, monitoring, learning, and technical assistance will improve partner performance, accountability, and early warning.

Boost economic stability and recovery

Our programming and economic diplomacy will facilitate access to, and best use of, external finance and domestic resources. This will support delivery of services, including through credible reform programmes led by the Government of Yemen. Our support to the UN-led process will support the establishment of an economic track with agreements established on economic issues. Our leadership and programming will establish effective coordination and financing mechanisms for economic stabilisation, inclusive recovery, and economic incentives for peace.

Promote security

We will enhance maritime and border security to counter illicit smuggling in Yemen by building gender-inclusive capacity of the coast guard and other Yemeni institutions. We will explore options on how we can work with internal security institutions to promote approaches to stability, ensuring that our programming prioritises women and other vulnerable groups. Our diplomatic support and technical and financial assistance will contribute to the resolution of the risk posed by the SAFER Oil tanker.

Who we work with

The UK provides direct support to the UN Special Envoy’s team to facilitate an effective and inclusive peace process in Yemen, including at the subnational level. The UK also works with our allies in the region and with the international community, the Five Permanent members of the UN Security Council, in support of these efforts.

Through our partnerships with UN agencies (WFP and UNICEF), local and international Non-Governmental Organisations (NGOs), and WB, we are responding to urgent humanitarian needs, delivering essential services, and preventing further deterioration of the economy. We are also working with UNDP to find a solution to the decaying SAFER oil tanker. As part of our efforts to preserve key Yemeni institutions, we have partnerships with national partners including the Central Bank of Yemen and the Social Fund for Development. We aim over time to develop more partnerships with national actors as we explore more sustainable, Yemen-led solutions to humanitarian and development challenges.

Key programmes

We have simplified our development assistance portfolio to focus on food security, protection of women and children, strategic support (including technical expertise, monitoring, and data and evidence) to the peace process, and institutional capacity building. These better reflect UK comparative advantage and have enabled programmes to be more flexible, with the ability to scale up or down as needed to respond to humanitarian needs and funding availability.

The main programmes in our portfolio are outlined below:

Food Security Safety Net Programme (FSSN)

This programme will provide cash transfers to up to 1.5 million of Yemen’s most food insecure households. It will be the UK’s flagship programme and the backbone of our humanitarian response. The programme will continue provision of immediate life-saving assistance to those most in need (including women and marginalised groups) and ensure a more sustainable response to on-going high humanitarian needs and unexpected shocks in this protracted crisis context.

Responding to the needs of women and children in Yemen

The programme will deliver 2 outcomes:

1. reduce preventable disease and death in women and children. The programme will provide health care, including nutrition, water sanitation and hygiene, and sexual and reproductive health services, to the most vulnerable in Yemen

2. increase protection for women and children. The programme will prevent and respond to gender-based violence, assist and protect people in conflict, and increase compliance with International Humanitarian Law

Affordability of Food and Finance in Yemen (AFFY)

Yemen’s economic crisis exacerbates humanitarian need and political instability. The programme will provide funding to preserve and strengthen institutional capacity and help maintain access to trade finance, enabling the continued flow of imports and stabilise food prices. Improved policies will help to stabilise the exchange rate and macroeconomy, reduce food price inflation, and avoid further escalation of humanitarian needs. The programme will benefit populations across the country, by lowering the cost of food, and increase access to hard currency.

Conflict, Stability and Security Fund (CSSF)

CSSF Yemen seeks to improve opportunities for an inclusive, durable peace by supporting formal and informal peace processes, and increasing the effective participation of women. This programme supports the UN directly, funding technical assistance (economic and military advisors) and peace support mechanisms delivered by UNDP and United Nations Office for Project Services (UNOPS). It also includes complementary ‘Track 2’ activity to reduce political and social divisions in key governorates. As well as mainstreaming a focus on gender across the portfolio, we have a dedicated WPS project to explore barriers to women’s participation in the peace process, seeking to strengthen positive mechanisms and expand women’s roles. We are also supporting efforts to mitigate the risks from the decaying SAFER Oil Tanker through our CSSF programme, working in partnership with UNDP.

Financial information

Initial allocations have been set internally to deliver the priorities set out in the International Development Strategy (May 2022) and the Integrated Review Refresh 2023, based on the FCDO’s Spending Review 2021 settlement.

The department’s spending plans for the period from 2022 to 2023 to 2024 to 2025 have been revisited to ensure His Majesty’s Government continues to spend around 0.5% of Gross National Income (GNI) on ODA. This was in the context of the significant and unexpected costs incurred to support the people of Ukraine and Afghanistan escape oppression and conflict and find refuge in the UK, and others seeking asylum. The Government provided additional resources of £1 billion in 2022 to 2023 and £1.5 billion in 2023 to 2024 to help meet these unanticipated costs. The Government remains committed to returning ODA spending to 0.7% of GNI when the fiscal situation allows, in line with the approach confirmed by the House of Commons in July 2021.

The Country Development Partnership Summaries include the breakdown of programme budgets allocated to individual countries for 2023 to 2024 and 2024 to 2025. These allocations are indicative and subject to revision as, by its nature, the department’s work is dynamic. Programme allocations are continually reviewed to respond to changing global needs, including humanitarian crises, fluctuations in GNI and other ODA allocation decisions.

It should be noted that these figures do not reflect the full range of UK ODA spending in these individual countries as they do not include spend delivered via core contributions to multilateral organisations, or regional programmes delivered by the FCDO’s central departments. Other UK Government departments also spend a large amount of ODA overseas. Details of ODA spent by other UK government departments can be found in their Annual Report and Accounts and the Statistics for International Development.

FCDO ODA allocation

Our bilateral Official Development Assistance (ODA) programme funding for financial year 2023 to 2024 and financial year 2024 to 2025 will be £87 million and £104 million. We will use the allocation to respond to some of Yemen’s most critical needs, and to help maintain UK influence over key partners and donors. Of our bilateral programme funding, 99% is classed as ‘Humanitarian Assistance’ in financial year 2022 to 2023.

In financial year 2022 to 2023, 47% of ODA spend in Yemen was marked as being principally or significantly focused on promoting gender equality which we expect to increase over the next 2 years.

Allocated ODA budget financial year 2023 to 2024	Indicative ODA budget financial year 2024 to 2025
£87 million	£139 million

ODA Spend in Yemen, financial year 2022 to 2023

Figure 1. ODA Spend in Yemen, financial year 2022 to 2023: Humanitarian Assistance, 99%; Conflict Prevention, 1%

Supporting information sources:

• British Embassy Sana’a
• DevTracker
• D-portal
• FCDO Evaluation Repository

1. Fragile States Index 2023. ↩

2. World Bank Engagement Note for Yemen 2022/23. ↩

3. Ibid. p7. ↩

4. UN Yemen Humanitarian Needs Overview 2023 (December 2022) [EN/AR] - Yemen ReliefWeb ↩

5. International Crisis Group (2022), Brokering a Ceasefire in Yemen’s Economic Conflict Crisis Group ↩

6. The Muhamasheen are the largest national ethnic minority in Yemen, thought to have originally descended from African societies. They have experienced wide-spread discrimination, poverty, and exploitation. ↩

7. The Quadrilateral Security Dialogue, also known as the Quad, is an informal strategic forum between the United States, Japan, Australia, and India, established in August 2007 and re-launched in 2017. ↩

8. The Quint is an informal decision-making group consisting of the US and the Big Four of Western Europe (France, Germany, Italy, and the UK).it operates as a governing board of various entities such as NATO, OECD and the G7/G20. ↩

9. The P5 are the 5 permanent members of the UN Security Council: The United States, China, France, Russia, and the UK. ↩