With limited natural resources, a crippling illiteracy rate, and high population growth, Yemen faces an array of daunting development challenges that some observers believe make it at risk for becoming a failed state in the next few decades. As the country's population rapidly rises, resources dwindle, and terrorist groups take root in the outlying provinces, the Obama Administration and the 111th Congress are left to grapple with the consequences of Yemeni instability. As President Obama and the 111th Congress reassess U.S. policy toward the Arab world, the opportunity for improved U.S.-Yemeni ties is strong, though recurring tensions over counterterrorism cooperation and lack of U.S. interest in Yemen within the broader foreign policy community persist.

This report discusses the political future of various countries in the Middle East-North Africa (MENA) region. A change in the leadership in these countries could significantly affect their policies toward the United States and their willingness to cooperate with the United States in achieving the stability needed to advance U.S. interests in this important region.

This report summarizes Yemen's domestic situation, foreign relations, and ties with the United States. With limited natural resources, a crippling illiteracy rate, and high population growth, Yemen faces an array of daunting development challenges that some observers believe make it at risk for becoming a failed state in the next few decades.

This report provides an overview and analysis of U.S.-Yemeni relations amidst evolving political change in Yemeni leadership, ongoing U.S. counterterrorism operations against Al Qaeda in the Arabian Peninsula (AQAP), operatives at large in Yemen's hinterlands, and international efforts to bolster the country's stability despite an array of daunting socio-economic problems.