Financial Crime World

Yemen’s Corruption Epidemic: A Cancer That Devours the Nation

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In the midst of war-torn Yemen, a different kind of battle is being waged. It’s a fight against corruption, which has become a way of life for many officials and businesspeople in the country.

The Corrupt System

Corruption has become a shocking reality in Yemen. A medical professional shared a disturbing story about a hospital in Sana’a where an aid worker was paying bribes daily to a military officer in charge of the facility, while over-billing an aid agency. The doctor chose not to report the corruption, fearing it would lead to instability and potentially harm innocent people.

  • This situation is not unique: Yemen’s central bank has raised capital from private banks by selling treasury bills and bonds at high interest rates, resulting in massive profits for a few elite businessmen.
  • This has deterred other investors from applying for loans, further stifling economic growth.

The Devastating Impact of Corruption

A World Bank report in 2014 highlighted the devastating impact of corruption on Yemen’s economy. It stated that influential individuals strong-arm investors, forcing them to pay protection money, which drives away foreign investment and leads to unemployment and poverty.

  • This has also led to a brain drain, with many skilled professionals fleeing the country due to lack of transparency and accountability.
  • The US State Department expressed concern over the lack of laws protecting government employees who report corruption in 2013.
  • The Human Rights report on Yemen noted several instances of reprisals against those who reported corruption.

Efforts to Combat Corruption

Despite these challenges, there are efforts underway to combat corruption in Yemen. The National Dialogue Conference, launched in 2009, aimed to develop a national plan for fighting corruption and improving governance. However, critics argue that the process was too slow and lacked teeth.

  • Civil-society activists have taken up the fight against corruption, staging regular protests and calling for greater transparency and accountability.
  • One such activist, Tawwakul Karman, won the Nobel Peace Prize in 2011.

Conclusion

As Yemen struggles to rebuild after decades of war and political instability, tackling corruption is critical to its future prosperity. Without a concerted effort to eradicate this cancer, the country risks remaining mired in poverty and underdevelopment for generations to come.

  • “Fighting the Culture of Corruption in Yemen” (World Bank)
  • “Corruption in Yemen: Screening of Destructive Beast” (Carnegie Endowment for International Peace)
  • “Yemen’s Saleh netted $60bn through corruption” (Middle East Monitor)
  • Transparency International
  • United Nations Convention against Corruption
  • OECD Anti-Bribery Convention