Businesses struggle in an endemic culture of corruption
U.S. News senior writer Kevin Whitelaw recently visited Yemen, an impoverished Muslim nation on the Arabian Peninsula that became a surprising U.S. ally in the wake of September 11. The Yemeni government has made some impressive strides when it comes to fighting terrorism, despite a few serious lapses like an embarassing prison break last month when 23 al Qaeda prisoners escaped through a tunnel. But now, Yemen is facing questions about its own crisis, as mounting poverty, declining oil resources, and suffocating corruption combine to threaten the nation's democratic progress–and perhaps its very existence. Whitelaw spent time with Yemenis from all walks of life – those in government, security, business, and education, along with a few of Yemen's legion of unemployed.
ADEN, YEMEN–Everyone in Yemen, it seems, has a tale of corruption. Businessmen in Aden estimate that 10 to 15 percent of their revenues are lost to corruption.
"I pay more money because of corruption than I pay to the state in taxes," says Abdulla Salem al-Rammah, a businessman in Aden and vice chairman of the Aden Chamber of Commerce. "It's like there is a shadow government. I have to pay. Otherwise, I can't get anything done." Hotels pay a massive series of bribes to ensure delivery of their liquor consignments.
"If you go to any kind of government office and you want something done, you have to pay," says Nabil al-Sofee, editor of the independent NewsYemen Web site. "It has become part of the value system, and it has been accepted."
Even simple projects require rounds of payoffs. Ahmed Awadh, who is managing a project to build a small hotel in Aden, says it is mostly midlevel officials who do the dirty work. "The local authority, the housing department, the State Land Authority, the police, other security agencies—they all want money," he says. "If the total cost of the project is 1 million, you are expected to pay 250,000 in bribes."