The chapter on Yemen by Omar Abdulaziz Hallaj in “Local Governments and Public Goods: Assessing Decentralization in the Arab World” provides a comprehensive analysis of Yemen's unique path from traditional governance to a modern state without passing through a strong, centralized pre-modern state. The chapter details the complex interplay of tribal loyalties, regional influences, and the impact of colonization on Yemen’s political and governance landscape.

The chapter delves into the intricacies of the decentralization process in Yemen, initiated as a part of the political pact during the country's unification in 1990. This process was influenced significantly by the tribal structures in the North and British colonial policies in the South, leading to a complex and fragmented governance system. The South’s dependency on the Soviet Union and the North’s tribal dynamics played crucial roles in shaping the decentralization process. The unification of Yemen, a pivotal moment, led to an eventual merger of the two distinct systems of governance, creating a unique decentralized model influenced by tribal and regional politics.

The chapter highlights the role of powerful tribal federations in shaping the political landscape, particularly in the demarcation of electoral districts and the formation of patronage networks. The emergence of the republican system post-unification, heavily influenced by the North's model, was marked by a blend of centralized and decentralized elements. President Ali Abdullah Saleh's political strategies, including the formation of the General Congress Party and its dominance in the parliament, significantly impacted the decentralization process, making it a tool for political maneuvering rather than genuine democratization.

The legal and administrative framework for decentralization, as outlined in the chapter, underwent significant evolution following Yemen’s unification. The chapter describes how the legal framework, particularly the law for local governance passed in 2000, aimed to establish a comprehensive system for effective local governance. However, the implementation faced challenges due to the lack of a legally mandated plan and the slow pace of transferring jurisdictions from the center to localities.

The chapter further details how various services were decentralized, each with different models and legal frameworks. For example, solid waste collection was decentralized earlier than other services, while urban water management was handled by local corporations. This part of the chapter emphasizes the complexities and challenges in the decentralization of services and the varying degrees of success in different sectors.

Overall, Mr. Hallaj’s chapter offers a detailed and nuanced understanding of Yemen's path toward decentralization, highlighting the interplay of historical, tribal, and political factors that shaped its unique approach to governance.