Britain and the US have pledged to prop up the regime in Yemen as diplomats warn the country is running out of water and money at the same time as it is facing pressure on three fronts from insurgents and terrorists.
By Duncan Gardham, Security Correspondent
Published: 8:12PM GMT 27 Jan 2010
Hosting a conference in London for 20 foreign ministers David Miliband, the Foreign Secretary said al-Qaeda had been "exploiting the insecurity" of Yemen but its problems did not begin and end there.
The conference was called in the wake of the attempted Christmas Day bombing by Umar Farouq Abdulmutallab, a former student at University College London, over Detroit.
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The Korean crisis is China's chance to show the world it has changedHillary Clinton, the US Secretary of State, said the Yemenis had been "brutally honest about the problems they face" and had submitted one paper labelled "appalling indicators."
"It has given us an unvarnished view of what they are up against," she added.
Yemen's Foreign Minister Abu Bakr Abdullah al-Qirbi said the meeting had addressed how to tackle the country's economic problems which had led to "political problems and the biggest problem of all, terrorism."
The country is facing a rapidly growing population and already has two thirds under the age of 24 and massive unemployment.
Much of the water produced for irrigation is used to grow the drug khat rather than food and officials fear that Yemen could be the first country to run out of water.
Oil reserves are likely to run out in ten years time, which is particularly worrying because it accounts for 70 per cent of the country's income.
In addition the country has faced an insurgency from the shia Houthis in the north, a secessionist movement in the south fighting to re-establish divisions from before the civil war of 1994, and the growing threat from al-Qaeda terrorists.
Among those allegedly recruiting for al-Qaeda is the preacher Anwar al-Awlaki, who is said to have had a significant influence on Abdulmutallab and dozens of British extremists.
Despite the pledge of $5bn (£3.1bn) in aid at a conference in London four years ago, much of it has gone unspent because of Yemen's inability to identify suitable projects and fears of corruption.
Diplomats say the president, Ali Abdullah Saleh, has demonstrated a "masterly grasp of tribal dynamics" to stay in power for the last 11 years but he has only "scant control over certain parts of the country" and "corruption is endemic".
They warn that Yemen's problems are on the same level as those in sub-Saharan Africa and there are no "quick fix solutions."
The country's links with the failing state of Somalia, across the Gulf of Aden, are also a concern.
While Britain gives around £40 million a year in aid, only around £8m goes on "policing and justice"
At the conference the Yemeni government promised to pursue its "reform agenda," and to initiate discussion of an IMF programme.
Its neighbours in the Gulf Cooperation Council pledged to host a meeting in Riyadh, Saudi Arabia on 27 and 28 February to address the spending of aid money.
Britain, the US and the rest of the international partners have formed a Friends of Yemen group and promised to support the fight against al-Qaeda and other forms of terrorism.
It came as Saudi Arabia declared victory over the Houthi following a truce offer from the insurgents, who said they had withdrawn from all Saudi territory.
"We achieved a clear victory," Saudi Assistant Minister of Defence Prince Khaled bin Sultan told journalists, adding that the rebels had been forced from Saudi land. "We cleansed the area ... Withdrawal was not an option for them."
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