Options for an economic track of the Yemen peace process

This report has been prepared by the International Growth Centre’s (IGC) State Fragility initiative following a request of Foreign Commonwealth and Development Office (FCDO) Yemen in coordination with the Office of the Special Envoy of the Secretary General to Yemen (OSESGY) to explore options for an economic track to the Yemen Peace process.

This work is based on interviews held with Yemeni and international stakeholders, from thought-leaders, local and international academics, representatives of the business and banking sectors, members of the parties to the peace process (in their personal capacity), and senior staff of donor agencies, that were conducted during March 2021. Their contributions critically substantiated this report by offering a thorough analysis of the political economy surrounding the peace process, its challenges and opportunities, and the main economic priorities for the country. They also offered insights on lessons learned from previous efforts in the peace process and from comparable experiences of other contexts. Finally, the discussions highlighted the value and urgency to establish an economic track in Yemen and identified options for its development, in terms of focus, structures, and enabling conditions.

Based on these discussions, this paper identifies the rationale and merit of establishing an economic track of the Yemen peace process, details the potential framework that would underpin such track, and highlights the risks and necessary enabling conditions to establish such track.