Yemen Resilience, Recovery, and Reconstruction Multi-Donor Trust Fund Umbrella Program - Proposal for IDA Board Approval

Jul 19, 2026

Proposal to establish and administer the Yemen Resilience, Recovery, and Reconstruction Multi-Donor Trust Fund (the Yemen Fund) as the anchor trust fund under the Yemen Umbrella Program for an initial ten-year period. Grounded in Yemen’s seventh-year conflict and compounding shocks, the paper explains how multi-donor trust funds can reduce aid volatility through risk management, efficiency, common assessments, and joint policy dialogue. With US$2.5 billion, the fund pools partners’ resources to strengthen resilience, support early recovery and reconstruction, and advance a transition toward sustainable peace and development.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

Program Description

Fund-level Program Development Objective

Program Components and Complementarity

Structure and Pillars

Pillar 1-Inclusive Service Delivery

Pillar 2-Equitable Economic Opportunities and Jobs

Public Disclosure Authorized Public Disclosure Authorized Yemen Resilience, Recovery, and Reconstruction Multi-Donor Trust Fund Umbrella Program (The Yemen Fund) 1. This paper proposes the creation and administration by the International Development Association (IDA) of the Yemen Resilience, Recovery, and Reconstruction MDTF (the Yemen Fund), which will serve as the anchor Trust Fund under the Yemen Umbrella Program over an initial period of ten years. This paper is submitted for Board of Executive Directors’ approval, on an absence-of-objection basis, as the establishment of the Yemen Fund, in the current context of Yemen and IDA’s engagement under the Policy on Development Cooperation and Fragility, Conflict, and Violence (FCV Policy),“presents novel or significant policy issues which warrant Executive Directors’ consideration”. 1 2. The conflict in Yemen now in its seventh year has caused a major humanitarian crisis, devastated the country’s economy, infrastructure, and social fabric, and fragmented core government functions. Stemming from decades of poor governance and unaddressed grievances coupled with tribal, regional, and sectarian divides, it has further undermined the legitimacy of public institutions and weakened a historically fragile social contract. The situation has been recently compounded by the COVID-19 pandemic as well as massive flooding and locust infestation, which emphasize Yemen’s vulnerability to climate-related disasters. 3. International experience has demonstrated the value of early engagement of development actors in conflict settings to complement short-cycle humanitarian interventions and peacemaking efforts. Cross-country evidence also shows that countries affected by fragility, conflict, and violence (FCV) experience more volatility in their aid and that multi-donor trust funds (MDTFs) can help to mitigate some of this unpredictability, while also bringing benefits in terms of risk management, efficiency, common assessments, and joint leverage in policy dialogue. 4. With a program totaling US$2.5 billion and significant results for millions of Yemenis throughout the whole territory, IDA has been the leading financier in the development space since 2016. Building on the World Bank’s track record and convening power, the Yemen Fund will pool resources from Development Partners (DPs) to jointly invest in Yemen’s resilience now, expand the knowledge base for programming, and lay the basis for a transition towards sustainable peace, recovery, reconstruction, and development. 5. The umbrella is proposed to be established at this juncture of the conflict in recognition of the need for a flexible and coordinated response to the fluid situation on the ground and the critical importance of early readiness for agile post-conflict turnaround. 6. The Yemen Fund will implement the key principles of the World Bank Group FCV Strategy for remaining engaged in crisis situations and helping countries transition out of fragility. Consistent with IDA20 priorities, the initiative is also aligned with the Fragility and Conflict pillar of the World Bank’s framework of support for the Middle East and North Africa (MENA) region, and it will operationalize the integrated and people-centered methodology of the Building for Peace in MENA Report. 1 As per World Bank Policy on Trust Funds (Trust Funds Policy) . I. Program Description 7. Fund-level Program Development Objective: Provide a financing and convening platform to address resilience, recovery, and reconstruction needs for all Yemenis, especially the most vulnerable. 8. More specifically, the Yemen Fund will complement IDA resources and other partners’ programs to: • Foster institutional, human capital, and socio-economic resilience; promote early recovery; and support the reconstruction process by strengthening the evidence base and institutional capacity to plan, monitor, and implement reforms and reconstruction activities, and co-financ

FAQs

What is the purpose of the Yemen Resilience, Recovery, and Reconstruction Multi-Donor Trust Fund?

It is proposed as the anchor trust fund under the Yemen Umbrella Program to provide a financing and convening platform for resilience, recovery, and reconstruction needs for all Yemenis, especially the most vulnerable.

Why is a flexible umbrella trust fund proposed at this stage of the conflict?

The proposal emphasizes the need for a coordinated and adaptive response to rapid on-the-ground changes, including early readiness for an agile post-conflict transition.

How will the Yemen Fund support peace, recovery, and reconstruction?

It will foster institutional and human capital resilience, promote early recovery, strengthen evidence and institutional capacity for reforms and reconstruction, enhance aid effectiveness through convening, and address drivers of fragility to promote incentives for peace wherever possible.

Jul 19, 2026

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