The Yemeni economy throughout the 1960s was described by many as ‘very weak’ and poorly structured. The Republican-Royalist wars, years before the establishment of the Republic of Yemen in 1962 added a heavy burden in an already exhausted nation. With high population density , sluggish economic growth, widespread illiteracy and repeated conflicts, the country’s economy was collapsing. Additionally, the Cold War had a significant impact on the Yemeni economy. The Arab Republic of Yemen in the north supported by the Egyptian leader Gamal Abdel Nasser, along with Saudi Arabia-althugh that didn’t last much- and the USA were facing a Soviet support in the south of Yemen attempting to promote socialism in the region. People were preoccupied with waging wars which led production to deteriorate, as a result Yemen’s GDP fell dramatically. Following the end of the Republican-Royalist wars, the Yemeni economy being drained by extensive military spending needed an urgent financial prop up. The Arab Republic of Yemen in the north received financial and military support from Saudi Arabia and began to coordinate diplomatic and economic relations with Yemen and the rest of the USA while South of Yemen was still eager to build further strong links with the other side of the cold war, the communist countries at the time. The north-south wars have weakened the agricultural and commercial economy in Yemen, conflicts have also depleted the public treasury.
The average growth rate of GDP during the 1960s was estimated at 1.31% per annum and GDP per capita growth rate of 1.17 compared with a negative growth rate of 0.76 in 1950-1959. Population density was estimated at 5 million and eight hundred thousand
Yemen’s Prime minsters in the 1960s:
Abdullah Al-Sallal
In office from 23-9-1962 to 30-10-1962 From 31-31-1962 to 24-4-1963From 18-19-1966 to 11-10-1967
From 12-10-1967 to 4-11-1967
Abdullatif Daifallah
In office from 25-4 1963 to 4-10-1963
Hassan Hussein Al-Omari
In office from 10-3 1964 to 2-5-1964
From 6/1/1965 to 10/4/1965
From 20-7-1965 to 15-4-1966
From 16.4.1966 to 17-9-1966
From 21-12-1967 to 13-9-1968
From 14-9-1968 to 2-4-1969
From 2-4-1969 to 1-9-1969
Abdulrahman Al-Eryani
In office from 5-10 1963 to 9-2-1964
Ahmed Mohammed Al – Nu’man
In office from 7/4/1965 to 19/7/1965
From 3-5-1971 to 22-8-1971
Brigadier General Hamoud Al-Jaifi
In office 3 – 5 1964 to 5-1-1965
Faisal Abdul Latif Al Shaabi
In office from 6-4 1969 to 22-6-1969
Mohsen Ahmed Al-Aini
In office from 5-11 1967 to 20-12-1967
From 5-2-1970 to 2-5-1971
From 18-9-1971 to 20-12-1972
From 21-6-1974 to 25-1-1975
Mohammed Ali Haitham
In office from 23-6 1969 to 29-12-1969
30-12-1969 to 1-8-1971
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Yemen’s economy continued to be influenced by regional and international influence policies in the 1970s. When the United States and Britain felt the threat of the Soviet Union’s takeover of southern Yemen . After the end of the civil war in April 1970, the Yemeni government sought international relations through Saudi Arabia to gain support for the wrecked economy. There were no US motives for linking ties with Yemen, but Saudi Arabia convinced Washington to link ties with the northern government of Yemen, headed by Judge Al-Eryani, fearing a growing Iranian presence in Oman. This led to a Yemeni-US relationship, in which the United States provided $ 16 million in economic aid and Saudi Arabia provided $ 400 million in development aid. In addition, many Yemenis were able to work in Saudi Arabia, which was suffering from a shortage of labor at that time. The expatriate income had a significant impact on the transition from the total dependence on the agricultural economy to the development of commercial networks locally and internationally and the economic growth of Yemen. The number of expatriates at the end of 1970 was 1.8 million.
Regionally, this era was fraught with instability, due to the Cold War between Moscow and Washington, which both used the region to extend its influence and link relations with the energy producers countries . While the US and Saudi Arabia were supporting the northern government of Yemen, the Soviet Union supported the Socialist Party in southern governments. In the 1970s Ali Abdullah Saleh was appointed president of the Arab Republic of Yemen in 1978.
Heads of Governments of the 1970s:
Abdullah Hussein Al-Karashmi
In office from 2-9 1969 to 4-2-1970
Abdul Salam Sabra
26 February 1971- 3 May 1971
Mohsen Al-Aini
5 February1970 – 26 February 1971
Judge Abdullah Al-Hajri
In office from 31-12 1972 to 2-3-1974
Dr. Hassan Mekki
In office from 3-3-1974 to 20-6-1974
Abdulaziz Abdul Ghani Saleh
In office from 26-1-1975 to 29-5-1978
From 30-5-1978 to 14-10-1980
From 12-11-1983 to 30-7-1988
From 431-7-1988 to 21-5-1990
From 6-10-1974 to 14-5-1997
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The 1980’s is largely famous by, at least economically, the oil discovery in Yemen. The first oil export operation in Yemen in 1987 was ‘the window of hope’ for a poor, non-peaceful, and underdeveloped country that was still depending on aid as a main source for development. This period was characterized by a notable development in the private sector economy accompanied by a large wave of rural-urban migration and a fashionable increase in demand for education. Yemen was then estimated at 8 million people and GDP was estimated at $ 3 billion and an annual per capita GDP of only $ 283. Despite the deterioration in labour working in the agricultural sector, exports witnessed a significant increase in the growth of Yemeni relations with the neighboring countries. Growth was not confined to agricultural exports, it also included industrial and energy exports to reach 606 million dollars in 1989, compared with only 22 million dollars in 1980. However, Yemen recorded, throughout the 1980s, a negative trade balance, which hindered economic growth.
Prime ministers in the period 1980-1990:
Abdulaziz Abdul Ghani Saleh
Period of government
From 30-5-1978 to 14-10-1980
From 12-11-1983 to 30-7-1988
From 431-7-1988 to 21-5-1990
From 6-10-1974 to 14-5-1997
Abdulkarim Al-Eryani
Period of government from 15 October 1980 to 24 August 1982
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The unification of Yemen on May 22, 1990 brought great changes to the Yemeni economy. From currency standardising to establishing strong government system, Yemen was pleasantly experiencing its busiest economic developing phases since a long time.
Governments benefited from large foreign investments and grants on infrastructure building and capacity building. With transport roads between the north and the south now been liberated , many wonderful and geographically diverse places became accessible. Tourism revenues rose from 19 million dollars in 1994 to 69 million dollars in 1997.
But not all economic indicators were satisfactory in the period between 1990-1999. This period witnessed the largest decline in the Yemeni currency, with exchange rate fell from 13 riyals on 1990 to 135 riyals to the dollar o 1988.
Between 1990 and 1999, Yemen faced four economic shocks, which contributed significantly to the deterioration of the economic growth . The most drastic was the excessive spread of khat cultivation as a substitute for cash crops exported by Yemen. The area cultivated with khat increased from 8 thousand hectares in 1970 to 91,000 hectares in 1996.
One of the problems Yemen suffered in the 1990s was the excessive reliance on oil revenues as a source of income, accounting for 93% of Yemen’s exports and 70% of government income. Indeed, for the 90s Yemen, the second economic shock was the Asian economic crisis of 1998, which caused a decline in the demand for oil. The Asian crisis had a significant impact on the Yemeni economy, where Asian countries share was 76% of Yemen’s oil exports. This led to a sharp drop in the price of the barrel to an all-time-low of $ 10 in 1999.
The declaration of a united Yemen was a call for political stability and an end for a series of crises that impacted the Yemeni economy in both the north and south, however, crisis kept status quo. The war in 1994 contributed significantly to the decline of tourism revenues to only $ 19 million. The total cost of the Yemeni treasury in the ’70-day blockade’, apart from the tragic human losses, was estimated at a minimum of 7 million dollars, and the GDP dropped from 28 billion dollars in 1994 to only 8 billion dollars in 1999.
The Yemeni government was able to restore its balance right after the war of 1994 in several economic aspects, most notably was the tourism sector. Media campaigns financed by the government for tourism promotion programs were able to restore a healthy tourism sector and developing revenues to 69 million dollars by 1997.
Domestic economic crises were not the only concerns for the Yemeni governments, Yemen struggled to maintain sound relations with the countries neighbouring countries given the complex regional conflicts at the time. The Gulf war in the early nineties was one of the most important roadblocks in Yemen. The Yemeni government had to take a side towards the crisis and that decision had a major economic impact, most notably was the return of expatriates from the Gulf countries and cutting off the assistance provided by the United Nations.
In fact, surviving these crises by it self is a remarkable success, even if not as sufficient, but the question is how would Yemen economy would have looked like avoiding these crises.
In addition, one of the most important successes of the governments of 1990-1999 was the reduction on the public debt ratio from $ 6 billion right after Yemen’s unity (45% of which owed Russia to support the Socialist Party in the south) to only $ 2 billion in 2000.
Heads of Government of the 1990s :
Haidar Abu Bakr Alatas
Period of government from 22-5-1990 to 9-5-1994
Mohammed Saeed Al Attar
The period of government from 10-5-1994 to 6-10-1994
Faraj Saeed bin Ghanem
The period of government from 15-5-1997 to 29/4/1998
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2000-2018 … .. to be continued
Qalansiyah 
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