YEMEN: BACKGROUND, ISSUES AND AL QAEDA ROLE -- YEMEN: BACKGROUND, ISSUES AND AL QAEDA ROLE -- LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA -- CONTENTS -- PREFACE -- Chapter 1 YEMEN: BACKGROUND AND U.S. RELATIONS -- SUMMARY -- COUNTRY OVERVIEW -- A Perpetually Failing State: Yemen and the Dilemma for U.S. National Security Policy -- LATEST DEVELOPMENTS -- Attempted Christmas Day Airline Bombing: Background and Connection to Yemen -- Overview -- Recent U.S.-Yemeni Counterterrorism Cooperation against AQAP -- Attempted Christmas Day Airline Bombing and Alleged Yemeni Involvement -- Administration and Congressional Response -- Additional U.S. Foreign Aid to Yemen -- Yemeni Detainees in Guantanamo Bay, Cuba -- U.S. Political Support to President Saleh -- U.S. Policy Options -- MANIFESTATIONS OF STATE FAILURE IN YEMEN -- Terrorism and Al Qaeda -- The USS Cole Bombing -- Initial U.S.-Yemeni Counterterrorism Cooperation -- Al Qaeda's Resurgence -- Al Qaeda in the Arabian Peninsula -- Assessing the AQAP Threat -- Profiles of AQAP Leaders and Other Radical Yemeni Islamists -- Nasir al Wuhayshi -- Sa'id al Shihri -- Shaykh Abd al Majid al Zindani -- Anwar al Awlaki -- The Al Houthi Revolt in Northern Sa'da Province -- Operation Scorched Earth -- Iranian Involvement? -- Saudi Arabian Involvement -- Unrest in the South -- The Major Challenges: Water Depletion, Declining Oil Revenues, Rising Food Prices, and Qat -- Poor Governance and Uncertainty over Presidential Succession -- FOREIGN RELATIONS -- Somalia: Piracy, Terrorism, and Refugees -- Al Shabab and Possible Ties to AQAP? -- Relations with the Gulf Cooperation Council (GCC) -- Arab-Israeli Conflict -- U.S. RELATIONS AND FOREIGN AID -- Yemeni Detainees in Guantanamo Bay -- U.S. Foreign Aid to Yemen -- Military Aid -- Economic Aid -- End Notes -- Chapter 2 COUNTRY PROFILE: YEMEN -- COUNTRY.

HISTORICAL BACKGROUND -- Medieval History -- Former North Yemen -- Former South Yemen -- Road to Unification -- Unrest and Civil War -- 1994 to Present -- GEOGRAPHY -- Location -- Size -- Land Boundaries -- Disputed Territory -- Length of Coastline -- Maritime Claims -- Topography -- Principal Rivers -- Climate -- Natural Resources -- Land Use -- Environmental Factors -- Time Zone -- SOCIETY -- Population -- Demography -- Ethnic Groups and Languages -- Religion -- Education and Literacy -- Health -- Welfare -- ECONOMY -- Overview -- Gross Domestic Product (GDP) -- Government Budget -- Inflation -- Agriculture, Forestry, and Fishing -- Mining and Minerals -- Industry and Manufacturing -- Energy -- Services -- Banking and Finance -- Tourism -- Labor -- Foreign Economic Relations -- Imports -- Exports -- Trade Balance -- Balance of Payments -- External Debt -- Foreign Investment -- Currency and Exchange Rate -- Fiscal Year -- TRANSPORTATION AND TELECOMMUNICATIONS -- Overview -- Roads -- Railroads -- Ports -- Inland Waterways -- Civil Aviation and Airports -- Pipelines -- Telecommunications -- GOVERNMENT AND POLITICS -- Political System/Overview -- Constitution -- Branches of Government -- Administrative Divisions -- Provincial and Local Government -- Judicial and Legal System -- Electoral System -- Politics and Political Parties -- Mass Media -- Foreign Relations -- Membership in International Organizations -- Major International Treaties -- NATIONAL SECURITY -- Armed Forces Overview -- Foreign Military Relations -- External Threat -- Defense Budget -- Major Military Units -- Major Military Equipment -- Military Service -- Paramilitary Forces -- Foreign Military Forces -- Military Forces Abroad -- Police -- Internal Threat -- Terrorism -- Human Rights -- Chapter 3 AL QAEDA IN YEMEN AND SOMALIA: A TICKING TIME BOMB -- LETTER OF TRANSMITTAL.

EXECUTIVE SUMMARY -- 1. AL QAEDA RECONSTITUTED -- Background -- A Continuing Threat in Pakistan -- 2. YEMEN: EXPLOITING WEAKNESSES -- A Multifaceted Threat to U.S. Interests -- Al Qaeda Transformation Underway in Yemen -- A History of Violence and Extremism -- 3. SOMALIA: FAILURE BREEDS EXTREMISM -- Alliance or Not, a Specific Threat to Americans Exists -- State Failure Offers Further Opportunities for Terrorists -- 4. CONCLUSION -- End Notes -- Chapter 4 FOLLOWING THE MONEY IN YEMEN AND LEBANON: MAXIMIZING THE EFFECTIVENESS OF U.S. SECURITY ASSISTANCE AND INTERNATIONAL FINANCIAL INSTITUTION LENDING -- LETTER OF TRANSMITTAL -- EXECUTIVE SUMMARY -- Yemen -- Lebanon -- INTRODUCTION -- YEMEN -- Background -- U.S. SECURITY ASSISTANCE TO YEMEN -- Trends in U.S. Assistance to Yemen -- Red Flags -- Recommendation -- Pros and Cons of Increasing the Military Involvement in Foreign Assistance -- Civ-Mil Coordination Within the Embassy -- Regional Expertise and Continuity of Effort -- Recommendation -- FMF vs. 1206 -- Recommendation -- Constructive Criticism from Host Government End Users -- An Avoidable Problem in Provision of Excess Defense Articles (EDA) -- 1206: Consultations with Host Government vs. Managing Expectations -- IFI LENDING -- Overview of Development Issues and International Donor Assistance -- The World Bank's Program -- Need for Private Sector Investment -- Recommendation -- World Bank Investigative Panel: Oversight Run Amuck -- Recommendation -- Parliamentary Oversight -- Empowering Reform from Within -- Recommendation -- LEBANON -- Background -- Recommendation -- RED FLAGS -- Recommendation -- U.S. SECURITY ASSISTANCE TO LEBANON -- Trends in U.S. Assistance -- Continuing Oversight Leads to Improved Operations -- Recommendation -- Internal and External Coordination -- FMF vs. 1206 -- Recommendation -- Recommendation.

Assistance to the Internal Security Forces -- Reining in Contractor Expenses -- Constructive Criticism from Host Government End Users -- IFI LENDING -- Economic Situation -- Overview of International Donor Assistance -- The World Bank -- The IMF in Lebanon -- Oversight -- Recommendation -- APPENDIX I. INTERLOCUTORS IN YEMEN -- APPENDIX II. INTERLOCUTORS IN LEBANON -- APPENDIX III. ACRONYMS -- End Notes -- Chapter 5 OPENING STATEMENT OF CHAIRMAN JOHN F. KERRY, U.S. SENATE COMMITTEE ON FOREIGN RELATIONS, HEARING ON YEMEN* -- Chapter 6 OPENING STATEMENT OF DICK LUGAR, U.S. SENATOR FOR INDIANA, U.S. SENATE COMMITTEE ON FOREIGN RELATIONS, HEARING ON YEMEN* -- Chapter 7 TESTIMONY OF AMBASSADOR JEFFREY D. FELTMAN, ASSISTANT SECRETARY OF STATE FOR NEAR EASTERN AFFAIRS, AND AMBASSADOR DANIEL BENJAMIN, COORDINATOR FOR COUNTERTERRORISM, SENATE COMMITTEE ON FOREIGN RELATIONS* -- CONTEXT FOR U.S. POLICY TOWARD YEMEN -- A TWO-PRONGED STRATEGY -- CHALLENGES AHEAD -- ADDITIONAL ELEMENTS OF U.S. RESPONSE -- CONCLUSION -- Chapter 8 BEWARE OF FALSE ANALOGIES: WHY YEMEN IS NOT IRAQ, AFGHANISTAN OR SOMALIA....IT'S YEMEN* -- A REVIEW OF THE BASICS -- POLITICAL HISTORY AND CURRENT EVENTS -- THE US AND YEMEN -- YEMEN'S CHALLENGES -- US OPTIONS -- Water -- Energy -- Population -- Political Structure -- WHERE SHOULD THE US FOCUS? -- SOME FINAL THOUGHTS AND CAUTIONARY TALES - CIVILIAN CAPACITY NOT JUST MILITARY CAPABILITY -- Chapter 9 TURMOIL IN YEMEN: HOW UNDERSTANDING THE CHALLENGES CAN HELP US UNDERMINE AL-QA'IDA AND THE RADICAL PARADIGM* -- YEMEN -- Regime -- Demographics -- Islamic Radicalism -- Radical Salafism -- The Houthi Shia Uprising -- Southern Movement -- REGIONAL CONTEXT -- AL-QA'IDA -- What Does This Mean and What to Do about It? -- Chapter 10 HOW TO APPLY SMART POWER IN YEMEN.

Chapter 11 TESTIMONY OF GREGORY D. JOHNSEN, PHD. CANDIDATE, NEAR EASTERN STUDIES, PRINCETON UNIVERSITY, BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE* -- INTRODUCTION -- I. ELITE RIVALRY -- II. SECURITY CHALLENGES -- A. Al-Qaeda -- The First Phase: 2001 - 2003 -- The Second Phase: 2006 - Present -- 2006-2007 -- 2008 -- 2009 -- B. Al-Huthi Conflict -- Background -- The Huthi Rebellion -- The Huthis -- III. FOUNDATIONAL CHALLENGES -- The Loss of Oil and Water -- The Economy -- CONCLUSION -- End Notes -- INDEX.