Definition/Scope: North Yemen became independent of the Ottoman Empire in 1918. The British, who had set up a protectorate area around the southern port of Aden in the 19th century, withdrew in 1967 from what became South Yemen. Three years later, the southern government adopted a Marxist orientation. The massive exodus of hundreds of thousands of Yemenis from the south to the north contributed to two decades of hostility between the states. The two countries were formally unified as the Republic of Yemen in 1990. A southern secessionist movement in 1994 was quickly subdued. In 2000, Saudi Arabia and Yemen agreed to a delimitation of their border. Yemen, one of the poorest countries in the Arab world, reported average annual growth in the range of 3-4% from 2000 through 2007. In 2008, growth dropped below 3% as the price of oil declined and the slowing global economy reduced demand for oil. Yemen's economic fortunes depend mostly on declining oil resources, but the country is trying to diversify its earnings. In 2006 Yemen began an economic reform program designed to bolster non-oil sectors of the economy and foreign investment. As a result of the program, international donors pledged about $5 billion for development projects. A liquefied natural gas facility is scheduled to open in 2009. Yemen has limited exposure to the international financial system and no capital markets, however, the global financial crisis probably will reduce international aid in 2009. Aden is a city in Yemen, 170 kilometers east of Bab-el-Mandeb. Aden's ancient, natural harbour lies in the crater of an extinct volcano which now forms a peninsula, joined to the mainland by a low isthmus. This harbour, Front Bay, was first used by the ancient Kingdom of Awsan between the 5th and 7th centuries BC. The modern harbour is on the other side of the peninsula. Aden now has a population of about 800,000 people. Aden encloses the eastern side of a vast, natural harbor that comprises the modern port. The volcanic peninsula of Little Aden forms a near-mirror image, enclosing the harbor and port on the western side. Little Aden became the site of the oil refinery and tanker port. Both were established and operated by British Petroleum until they were turned over to Yemeni government ownership and control in 1977. Aden was the capital of the People's Democratic Republic of Yemen until that country's unification with the Yemen Arab Republic. On that occasion, the city was declared a free trade zone. Aden gives its name to the Gulf of Aden.
Broader Terms:USS Cole