A second spectacular Al Qaeda attack on Yemeni government security buildings in less than a month is a worrisome sign that the terrorist group may be trying to take advantage of a country splitting at the seams. U.S. officials are concerned that Yemen, like neighboring Somalia, may become a failed state due to a myriad of challenges, including a separatist movement in the south, tensions over government corruption charges, competition for dwindling natural resources, and one of the fastest growing populations in the world.

Wells Running Dry

Water shortages have become commonplace in Yemen. Last year, the Sunday Times reported that Yemen could become the first modern state to run out of water, “providing a taste of the conflict and mass movement of populations that may spread across the world if population growth outstrips natural resources.”

Earlier this year, government forces came to blows with locals over a disputed water well license in the south. Twenty homes were damaged and two people were killed during the resulting eight day stand-off, according to Reuters.

The heavily populated highlands, home to the capital city of Sanaa, face particularly staggering scarcity. Wells serving the two million people in the capital must now stretch 2,600 – 3,200 feet below the surface to reach an aquifer and many have simply dried up, according to reports.

Yemeni Water and Environment Minister Abdul-Rahman al-Iryani told a Reuters reporter that the country’s burgeoning water crisis is “almost inevitable because of the geography and climate of Yemen, coupled with uncontrolled population growth and very low capacity for managing resources.”

Nineteen of Yemen’s 21 aquifers are being drained faster than they can recover, due to diesel subsidies that encourage excessive pumping, loose government enforcement of existing drilling laws, and growing population demand. Qat farmers in particular represent an excessive portion of water consumption; growing the popular narcotic accounts for 37 percent of agricultural water consumption. Meanwhile, according to a study by the World Food Programme this year, 32.1 percent of the population is food insecure and the country has become reliant on imported wheat.

Yemen’s other wells – the oil variety – have long been the country’s sole source of significant income. According to ASPO, oil has historically represented 70-75 percent of the government’s revenue. But recent exploration efforts have failed to uncover significant additions to Yemen’s reserves, and as a result oil exports have declined 56 percent since 2001. The steep decline has pushed Yemeni authorities to look to other natural resources, such as rare minerals and natural gas, but the infrastructure to support such projects will take significant time and money to develop.

The Fastest Growing Population in the Middle East

Despite the country’s limited resources, Yemen’s population of 22.8 million people is growing faster than any other country in the Middle East. According to projections from the Population Reference Bureau, by 2050, Yemen’s burgeoning population is expected to rival that of Spain.

Fully 45 percent of the current population is under the age of 15 – a troubling ratio that is expected to grow in the near future. The charts from the U.S. Census Bureau embedded below illustrate the dramatic growth of the country’s youth bulge from 1995 through 2030.

A poor record on women’s rights and a highly rural, traditional society contribute to these rapid growth scenarios. According to Population Action International’s Elizabeth Leahy Madsen, only 41 percent of Yemeni women are literate and their total fertility rate is well over the global average. A recent survey from Social Watch ranking education, economic, and political empowerment rated Yemen last in the world in gender equity. Yemeni scholar Sultana Al-Jeham pointed out during her Wilson Center presentation, “Yemeni Women: Challenges and Little Hope,” that there is only one woman in a national parliament of 301 members and that ambitious political women routinely face systematic marginalization.

A contributing factor is that 70 percent of Yemen’s population live outside of cities – far more than any other country in the region – making access to education and healthcare difficult, especially in the large swaths of land not controlled by the government.

External migration from war-torn east Africa adds to Yemen’s demographic strains. According to IRIN, approximately 700,000 Somali refugees currently reside in country, and that number may grow as the situation in Somalia continues to escalate. Within Yemen’s own borders, another 320,000 internally displaced people have fled conflict-ridden areas, further disrupting the country’s internal dynamics.

Corruption and Rebellion

Competition over resources, perceived corruption, and Al Qaeda activity have put considerable pressure on the Saleh regime in Sanaa. The government faces serious dissidence in both the north and the south, and the Los Angeles Times reports that talk of rebellion is both widespread and loud:

Much of southern and eastern Yemen are almost entirely beyond the central government’s control. Many Yemeni soldiers say they won’t wear their uniforms outside the southern port city of Aden for fear of being killed. In recent months, officials have been attacked after trying to raise the Yemeni flag over government offices in the south.

USAID rates Yemen’s effective governance amongst the lowest in the world (below the 25th percentile), reflecting Sanaa’s poor control and high levels of corruption. Some reports claim that up to a third of Yemen’s 100,000-man army is made up of “ghost soldiers” who do not actually exist but whose commanders collect their salaries and equipment to sell on the open market.

The West and Al Qaeda

In testimony before Congress earlier this year, Assistant Secretary of State Jeffrey Feltman called on the Yemeni government to take a comprehensive approach to “address the security, political, and economic challenges that it faces,” including its natural resource and demographic challenges.

The Yemeni government is poised to receive $150 million in bilateral military assistance from the United States. But some experts are critical of that approach: Dr. Mustafa Alani of the Dubai-based Gulf Research Center told UN Dispatch that, “you are not going to solve the terrorist problem in Yemen by killing terrorists,” calling instead for investing in economic development.

USAID has budgeted $67 million for development assistance, economic support, and training programs in Yemen for FY 2010 and has requested $106 million for FY 2011 (although about a third is designated for foreign military financing).

While Yemen’s Al Qaeda presence continues to captivate Western governments, it is the country’s other problems – resource scarcity, corruption, and demographic issues – that make it vulnerable to begin with and arguably represent the greater threat to its long-term stability. The United States and other developed countries should address these cascading problems in constructive ways, before the country devolves into a more dangerous state like Somalia or Afghanistan. In keeping with the tenets of the Obama administration’s National Security Strategy, an exercise in American soft power in Yemen might pay great dividends in hard power gains.

Sources: Association for the Study of Peak Oil – USA, Central Intelligence Agency, Congressional Research Service, Guardian, IRIN, Los Angeles Times, New York Times, Population Action International, Population Reference Bureau, ReliefWeb, Reuters, Social Watch, Sunday Times, U.S. Census Bureau, U.S. Department of State, UN Dispatch, USA Today, USAID, World Food Programme.

Photo Credit: “Yemen pol 2002” via Wikimedia Commons courtesy of the U.S. Federal Government and “Yemen youth bulge animation” arranged by Schuyler Null using images courtesy of the U.S. Census Bureau’s International Data Base.

“The role of intergenerational transfers, land, and education in fertility transition in rural Kenya: the case of Nyeri district” in Population & Environment by Karina M. Shreffler and F. Nii-Amoo Dodoo, explores the reasons for a dramatic and unexpected decline in fertility in rural Kenya. In one province, total fertility rate (TFR) declined from 8.4 to 3.7, from 1978 to 1998. The study found numerous contributing factors for this decline, which occurred more quickly and earlier than demographers expected, but land productivity seemed to be the primary motivator. A growing population and the tradition of dividing family land among sons made continuing to have large families unrealistic for these Kenyan families. “Family planning is, therefore, not the primary causal explanation for limiting the number of children, but rather serves to help families attain their ideal family sizes,” the authors conclude.

Watch below or on MHz Worldview

According to last week’s guest on Dialogue, restoring environmental order and eradicating global poverty have become the two defining challenges of our era. The environmental horror unfolding in the Gulf of Mexico illustrates just how difficult it is to balance economic progress and protection of the planet. It provides an alarming example of how the search for resources and profit can lead to the plunder of nature. Host John Milewski speaks with Oxford University economist Paul Collier on his latest book, The Plundered Planet: Why We Must and How We Can Manage Nature for Global Prosperity. Scheduled for broadcast starting June 30th, 2010 on MHz Worldview channel.

If we were to actually use less fossil fuel, what would happen to today’s petrostates? “If the oil revenues dry up or even decline a little bit you might have a real serious crisis,” said Stacy VanDeveer of the University of New Hampshire, during an interview with ECSP. We spoke to VanDeveer following his presentation at the Wilson Center event, “Backdraft: The Conflict Potential of Climate Mitigation and Adaptation.”

As the world moves toward clean energy alternatives, companies in the United States and China are working to develop new, more cost-efficient manufacturing processes and increase their shares of the domestic and export markets for new renewable energy technologies. Controlling production lines and growing market share will certainly have important economic implications for both countries. But over the long term, a broader perspective suggests that cooperative initiatives to increase the capacity and reduce the cost of renewable energy technologies may produce benefits on both sides of the Pacific.

The Indian government’s battle with Maoist and tribal rebels – which affects 22 of India’s 35 states and territories, according to Foreign Policy and in 2009 killed more people than any year since 1971 – has been largely ignored in the West. That should change, as South Asia’s “other” insurgency, fomenting in the world’s largest democracy and a key U.S. partner, offers valuable lessons about the role of resource management and stable development in preventing conflict.

In the wake of The New York Times article detailing a potential mineral bonanza in Afghanistan, Senators Ben Cardin and Dick Lugar earlier this week published an op-ed in support of a bill that would create “an international standard for transparency in law” by requiring oil, gas, and mining industries to report amounts paid for drilling/mining rights in their SEC filings. A similar program, albeit a voluntary one, already exists – the Extractive Industries Transparency Initiative (EITI). The senators, however, raised questions about the ability of EITI to ensure transparency and accountability of payments for future mining rights to Afghanistan’s government. Joining EITI was a “good first step,” they say, “but too many countries and companies remain outside this system.”

The European Union’s biofuel goal for 2020 “is a good example of setting a target…without really thinking through [the] secondary, third, or fourth order consequences,” said Alexander Carius, co-founder and managing director of Adelphi Research and Adelphi Consult. While the 2007-2008 global food crisis demonstrated that the growth of crops for fuels has “tremendous effects” in the developing world, analysis of these threats are underdeveloped and are not incorporated into climate change policies, he said. [Video Below]