Monday, August 3, 2020

Yemen's Multilayered War: The First Civil War of Yemen

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Anant Jani

Article Title

Yemen's Multilayered War: The First Civil War of Yemen

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Global Views 360

Publication Date

August 3, 2020

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The tribals of South Yemen

The tribals of South Yemen | Source: Tribes of the World via Flickr

This is the 2nd part of a short explainer article series on the current crisis in Yemen. To read the 1st part of the series click on the link.

After the overthrow of the monarchy in 1968,  Yemen existed as two countries — North Yemen and South Yemen.  These two countries united in 1990, after several years of conflict with one another.

Unified Yemen: Simmering discontent between North & South

A unified government was formed and the work on constitution progressed, however the relations continued to be strained between the two regions. It's important to note that unification was finally achieved after the defeat of the former Marxist state of South Yemen at the hand of North Yemen with active collaboration of Saudi Arabia.

South got a raw deal in the post unification reconstitution and re construction of the country. The government controlled lands, enterprises and other resources in the South were confiscated and given to the ruling elites belonging to the North. However some political representation and economic benefits were given to the southern elites as well.

1st Elections of Unified Yemen: Cracks in unity

The first elections to elect a new parliament of unified Yemen began in 1993. This election was won by the pro-Unification group led by the former President of North Yemen, Abdullah Saleh. The Yemen Socialist Party (YSP) which represented the interests of former South Yemen, was able to win only 54 of the 301 seats.

After losing the democratic election, the leader of YSP, Ali Salim Al-Beidh, withdrew to his base in Aden. He refused to return to the capital unless his grievances of economic marginalization of the south and violence against his party members did not end. This conflict among the ruling elite impacted the general security situation and created an opportunity for the tribal leaders to make a space for themselves as well.

This sense of marginalisation and victimhood of Southern leadership and assertiveness of tribal leadership created a fertile ground for the first civil war of Yemen.

The First Civil War of Unified Yemen

Unlike the political forces, the armed forces of North and South Yemen were not unified at the time of political unification of the country. The political differences between the pro-unification forces and the southern faction led by YSP reached the Northern and Southern armed forces as well. The political infighting soon turned into armed conflict where the armed forces used heavy equipment and air power against each other.

Southern faction leaders withdrew from the reunification and on May 21, 1994, established the Democratic Republic of Yemen (DRY). However they failed to win recognition from the international community. After heavy fighting in the southern part, the government forces captured Aden on July 7, 1994. This led to the collapse of resistance and thousands of political and military leaders left the country. They tried to revive the secessionist movement from Saudi Arabia, but failed to make any impact.

The Ceasefires were called from nearly all sides, including the USA and Russia. The war finally ended in 1994, with Abdullah Saleh being elected as president after an amnesty signing with the Yemen Socialist Party leaders.

However, the YSP was left toothless post-elections, a grievance that would later lead to the forming of the Southern Seperatist Movement (also known as al-Hirak) in 2007.

Keep tune in for the 3rd part of the series.

Link to the first part.

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February 4, 2021 4:48 PM

Kenyans turning to mobile loans in times of COVID-19

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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