A propos of Yemen, check out this email from a UNDP governance adviser a few days ago (the author has given permission for this to be posted on the www):

Dear PRNet members,

The UN system in Yemen has been approached by the Government of Yemen for assistance as a common UN system to assist with the short and longer term implications of rapidly rising international food prices. Yemen, unfortunately, has seen its domestic production of basic food staples, such as cereals plummet and is now over 75% dependent on imports for feeding its population of over 20 million people. The Government, as part of its IMF sponsored adjustment programme, did away with food subsidies in the late 1990s and nowadays food is imported and distributed on purely market driven terms. The recent steep rise in international wheat prices in particular has led to an increase in the price of a 50 Kg bag of wheat from Yemeni Rials 2,200 to 6,000 within a span of one year. Given the importance of food in the consumption basket of the majority of Yemenis who live on less than one dollar a day, this price rise is expected to be reflected in a sever increase in the poverty rate in the country.

We are currently exploring what options there are open to the Government to deal with this issue, in order to address the rising need for social protection in the interest of maintaining social stability, while mindful of the fiscal sustainability of any such measures. In this context it should be added that this burden is being faced by the Government at a time when it is already struggling with the impact of fuel subsidies that are expected to absorb 30% of government expenditures in 2008, against a backdrop of declining revenues due to a combination of reduced production and rising local consumption of oil and its derivatives.

As the phenomenon of rising food prices is an international one, we are interested in learning how other countries, particularly LDCs, have attempted to deal with it. Given the urgency of getting back to the Government with some options to consider, an early response to this query would be most appreciated.

Mohammad Pournik,

Principal Economic and Governance Advisor,

UNDP, Yemen

More on food prices at http://www.globaldashboard.org/category/scarcity/