Yemen: Background and U.S. Relations

With limited natural resources, a crippling illiteracy rate, and high population growth, Yemen faces an array of daunting development challenges that some observers believe make it at risk for becoming a failed state. As the country's population rapidly rises, resources dwindle, and terrorist groups take root in the outlying provinces, the Obama Administration and the 111th Congress are left to grapple with the consequences of Yemeni instability. Traditionally, U.S.-Yemeni relations have been tepid, as the lack of strong military-to-military partnership, trade relations, and cross cultural exchange has hindered the development of strong bilateral ties. During the early years of the Bush Administration, relations improved under the rubric of the war on terror, though Yemen's lax policy toward wanted terrorists and U.S. concerns about governance and corruption have stalled large-scale U.S. support. Over the past several fiscal years, Yemen has received on average between $20 and $25 million annually in total U.S. foreign aid. For FY2010, the Obama Administration requested significant increases in U.S. economic and military assistance to Yemen. P.L. 111-117, the Consolidated Appropriations Act, 2010, provides a total of $52.5 million in economic and military assistance to Yemen, including $35 million in Development Assistance, $12.5 million in Foreign Military Financing, and $5 million in Economic Support Funds.
CRS Report for Congress.