Test Drive | Page 72

Chapter  4:  Context  and  contextual  changes     3. Followed  by  an  outer  circle  of  selected  Hashid  and  Bakil  tribal  elite  and  religious  elite  (who  are  critical   as  a  group,  but  not  necessarily  individually  important  to  Saleh’s  decision-­‐making),     4. And   finally   inconsistent   collective   influence   from   political   dynasties,   traditional   merchants,   technocrats,  political  party  elite,  and  dissenting  tribal  and  other  groups  at  the  outer  most  ring.     Informal   negotiation   processes   were   constantly   taking   place   among   the   different   layers   of   circles,   as   the   coalition  of  elites  used  the  state  to  maximize  their  own  interest  at  the  expense  of  the  broader  Yemeni  society.     The   patronage   system   was   built   on   rents   from   oil   exports   and   access   to   the   newly   liberalized   economy:     around   ten   key   families   and   business   groups   with   close   ties   to   Saleh   controlled   more   than   80   percent   of   imports,  manufacturing,  processing,  banking,  telecommunications  and  the  transport  of  goods  (Hill  et  al.,  2013).   Saleh’s   dominance   over   the   political   processes   was   also   strengthened   by   this   strong   system   of   patronage   (UN,   2011),  as  the  provision  of  patronage  to  elites  enhanced  the  regime’s  ability  to  contain  violence  and  maintain   its  centralized  rule.   Saleh   maintained   a   delicate   balance   of   power   between   his   close   family   members   and   his   inner   circle.   Thiel   (2012)   argued   that   the   increasing   concentration   of   power   around   Saleh’s   immediate   family   breached   unwritten   power-­‐sharing   agreements   within   the   regime’s   inner   circle   and   eventually   led   to   veteran   regime   insiders  defecting  to  the  democracy  movement  in  2011.       At   the   moment,   Yemen   also   lacks   operational   institutions   to   exercise   restraints   on   these   groups.   Although   Yemen   has   supported   a   multiparty   political   system   since   1990   and   elections   have   been   held   regularly,   favouritism  towards  the  ruling  party  means  that  elections  have  not  resulted  in  the  accountability  of  officials  or   the  government  at  large,  or  have  offered  any  real  alternation  of  power  (BTI,  2014).  The  checks  and  balances  to   be  enforced  by  an  informed  civil  society  with  political  oversight  are  lacking,  which  increases  the  potential  for   abuse  in  the  exploitation  of  natural  resources,  including  water.       Furthermore,   potential   revenues   from   natural   resources   are   diverted   out   of   Yemen   in   the   form   of   illicit   financial   flows,   instead   of   being   utilized   by   the   government   for   investment   in   social   and   economic   development.   Corruption   can   be   the   source   by   which   illicit   funds   are   generated   and   laundered   (Reed   and   Fontana,  2011).     Nepotism,  patronage,  and  corruption  are  relevant  to  water  conflicts  in  Yemen  for  three  reasons:     1. A   direct   impact   is   that   rent-­‐seeking   groups   are   formed,   which   do   not   always   take   measures   in   the   interest   of   the   society   at   large,   but   with   personal   gains   in   mind.   Over   time,   the   powerful   coalitions   of   rent-­‐seeking   groups   become   greedier   and   demand   an   even   larger   influence   over   national   economic   policies  to  consolidate  their  advantage  (Lane  and  Tornell,  1996).       2. Indirectly,   family   members   and   other   affiliates   are   often   appointed   to   positions   despite   a   lack   of   qualifications.  In  terms  of  water  management,  nepotism,  patronage  and  corruption  may  lead  to  a  sub-­‐ optimal  use  of  water  and  subsequently  poor  development  outcomes  in  terms  of  economic  growth  or   poverty  reduction  (Kolstad  et  al.,  2008).     3. Finally,   nepotism,   patronage,   and   corruption   will   have   likely   resulted   in   a   general   distrust   by   civil   society  in  the  formal  institutions  relevant  to  the  use  of  water  as  well  as  water-­‐related  disputes.       The  political  context  of  Yemen  cannot  be  understood  without  mentioning  the  tribal  structure.  Tribes  are  major   social   forces   in   Yemen.   Tribes   are   mainly   realities   of   the   northern   and   eastern   parts   of   Yemen,   whilst   the   west   and   the   south   of   the   country   consist   of   landlords   and   peasants   (Al-­‐Zwaini,   2012).   Tribal   customary   laws   strongly  affect  the  implementation  of  legislation  and  contribute  to  the  regulation  of  conflicts  (Al-­‐Dawsari,  2012   and   Al-­‐Zwaini,   2012).   Traditional   tribal   leaders,   sheikhs,   are   selected   based   on   a   combination   of   heredity,   The Political Economy in Yemen of Water Management: Conflict Analysis and Recommendations  59  of  241