long history of political animosity; this is a history that continues until our present day.
29More
How long can Saudi Arabia afford Yemen war? - Al-Monitor: the Pulse of the Middle East - 14 views
-
-
Yemen's treasury was burdened by the costs of unification such as paying for southern civil servants to move to the new capital, Sanaa, and paying interest on its massive debt. On top of its other economic challenges, Yemen was to absorb the shock of 800,000 returnees and their pressure on the already weak job market. With their return, the estimated $350 million a month in remittances
-
Civil war broke out in the summer of 1994 in what could be interpreted as a symptom of economic failure.
- ...20 more annotations...
-
By 1995 the Yemeni government implemented a program of macroeconomic adjustment and structural reforms with support from the World Bank and the International Monetary Fund and reduced spending on defense and civil service and cut subsidies. The Yemeni economy started showing signs of recovery and stability.
-
Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, wrote in 2012 that “fiscal sustainability will be an issue” for Gulf Cooperation Council countries. In its 2012 regional economic outlook, the IMF recommended to “curtail current expenditures while protecting the poor” as a response to the risk of declining oil prices.
-
Policies to cut spending were unlikely to be introduced in a monarchy like Saudi Arabia, especially after the Arab Spring, where tax-paying citizens along with non-tax-paying Bahrainis and next-door Yemenis went out on the streets to claim their rights in shaping the policies that govern their daily lives. The risk of people demanding more political rights was growing and cutting spending was not the optimal strategy for the kingdom.
-
As the kingdom continued its generous fiscal policy by providing more benefits to its citizens in response to the people’s dissatisfaction with the economic and political situation, it ran a deficit of 3.4% of GDP in 2014 due to a fall in oil revenues.
-
The kingdom's economic reforms of raising gas and diesel prices, cutting fuel subsidies in half and supporting the introduction of a GCC-wide value-added tax might ease the pressure of sustaining a war for nine months and perhaps longer. These structural reforms were long overdue and their introduction at this time is revealing.
-
CIG pg. 120 -> "We live in a world with many layers of linkages between countries. Nations will exchange goods and services through trade and will engage in cross-border investments from bank loans to setting up businesses. Each of these linkages can serve as a transmission mechanism in a time of crisis."
-
-
the political inclusion of the taxpaying citizen. It's a price the kingdom is now willing to pay, as we have seen Saudi women not only
-
and suffered an uprising fueled by anger at economic failure. The Saudi economy is trying to absorb
-
As they introduce revenue-collecting mechanisms, they should also reform mechanisms of capital transfer to the public to minimize the gap between the rich and the poor, as it is known that the poor are the most affected by tighter revenue-collecting policies. Otherwise, the Saudi war on Yemen will mark the beginning of an economic downturn that will surely spill over onto its political system in the long run.
-
"So the young revolutionaries fight on, until all their demands are met and they are free to build their State: a state founded on social justice and equality between all citizens where Saleh's reign is just a page in the history books." pg 129
-
CIG pg. 116 -> "Globalization, in the shape of freer trade and multinational investments, has been generally a force for good and economic prosperity. But it has also advanced, rather than harmed, social agendas"
-
-
-
But it became apparent that Saleh was not going to leave me to my own devices. He declared war in mid-1994, occupying the South and defeating the Socialist Party. Everything was finished, or so I believed. Its property stolen by the regime, the paper shut down, and once more I found myself broken, defeated and without hope. Worse, I was a known employee of the Socialist Party through my work at the paper. In the region where I lived agents for the regime had been hunting down and detaining anyone who had belonged to the Socialist Party or getting them fired from their jobs. Although I had not been a party member myself, just worked at a party newspaper, the regime made no distinction. My mother intervened, however, and hid me. She wouldn't let me out of the house. My mother always protects me. (2013-12-31). Diaries of an Unfinished Revolution: Voices from Tunis to Damascus (p. 115). Penguin Publishing Group. Kindle Edition.
-
-
-
Civil War: in 1994 Jamal currently in high school, describes the times as a world, when the color of his skin would define him. The Civil War, "interpreted as a symptom of economic failure", was evident in the reading when Jamal described the lack of jobs as a college graduate, members of the socialist party were completely shut out when Saleh took the presidency, depriving hard workers the ability to integrate into the economy.
-
-
-
-
-
This paragraph, while not highlighted, is important to the idea of globalization and why the war is not stopping. There is a flow of revenue from these oil prices that Yemen is reliant on, but they are also competing with countries that produce higher amounts of oil. This would have happened during the time Sanaa was in College writing scathing articles
-
-
-
-
-
-
-
-