War of Secession

The 1994 War of Secession in Yemen was a conflict between northern and southern political leaders that escalated into armed conflict in the spring of 1994. Southern politicians, led by Vice President al-Bayḍ, attempted to secede, but their forces were defeated by early July. This resulted in the exile of most southern leaders and left the General People's Congress (GPC) and Islah coalition, dominated by President Ali Abdullah Saleh, in control of unified Yemen. The war exacerbated Yemen's economic collapse, with GDP halving between 1990 and 1995. Despite efforts to stabilize the economy through IMF and World Bank reforms, corruption and a lack of political will hindered progress, leading to high unemployment and poverty.12