Balancing Evolving Priorities to Enhance the Value for Money of Human Development Financing in Yemen

Juul Pinxten, Ugo Gentilini, Andras Bodor, Sameh El-Saharty and Nicholas Hans Buhne

No 213182, The Social Policy and Labor Discussion Paper Series from The World Bank

Abstract: Yemen’s prolonged conflict, institutional fragmentation, and sharp decline in humanitarian and development financing have intensified the need to maximize the value for money (VfM) of scarce human development (HD) resources. Drawing on a review of World Bank operational experience between 2008 and 2022, international evidence, implementation assessments, and dedicated studies on systems integration, targeting, and donor alignment, this note examines how VfM considerations can guide financing decisions in fragile and conflict-affected settings. The analysis presents a framework centered on balancing three interconnected strategic choices: (i) strengthening national systems while continuing to leverage third-party implementers; (ii) concentrating resources on the most vulnerable populations and locations while maintaining sufficient reach and integrating interventions across sectors; and (iii) meeting urgent operational needs while investing selectively in learning, evidence generation, and delivery systems. The note highlights opportunities to improve effectiveness, efficiency, equity, sustainability, and delivery costs through greater interoperability of cash transfer systems, geographic targeting, integrated service delivery packages, stronger local institutional capacities, and coordinated donor engagement. It argues that, in a context of declining external support, enhanced coordination and strategic prioritization can help preserve human capital outcomes and improve development returns on limited financing. The findings offer practical lessons for national stakeholders, development partners, humanitarian actors, and implementing agencies seeking to maximize the developmental impact of investments in fragile settings.

Date: 2026-07-31
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