>> Keeping people alive is important, but creating an environment in which they can recover, that a new generation can learn and be prepared for a postwar situation is also important.

We have to prepare for the future as well as keeping people alive today.

♪♪ >> Hello and welcome to "GZERO World."

I'm Ian Bremmer.

And today, as Afghanistan's implosion was making international headlines, another desperate conflict raged on in the background.

Seven years of continuous war and today Yemen is called the world's worst humanitarian crisis.

80% of the population needs aid to survive.

Two thirds of all Yemenis are hungry.

Nearly half don't know when they will eat their next meal.

More than 10,000 children have been killed or maimed by fighting, and there's no end in sight.

I speak to David Gressly -- he's the U.N.'s Resident Coordinator in Yemen -- about whether the world can put an end to this intractable conflict.

And then your cafe mocha was named after Yemen's port of Mocha.

It's a coffee hub dating back to the 1300s.

We talk to some entrepreneurs in Brooklyn who are bringing coffee back to its Arabian roots.

Don't worry, I've also got your "Puppet Regime."

>> Ho, ho, ho!

All the boys and girls want gas this year.

>> But first, a word from the folks who help us keep the lights on.

>> Major corporate funding provided by founding sponsor First Republic.

At First Republic, our clients come first.

Taking the time to listen helps us provide customized banking and wealth-management solutions.

More on our clients at firstrepublic.com.

Additional funding provided by... ...and by... >> And what's the problem with his hands?

What happened?

Oh, my gosh, it's red raw.

Why is he eating his fingers?

>> Yemen, according to UNICEF, is the most difficult place in the world to be a child.

Crumbling infrastructure from regular air strikes leading to poor sanitation, outbreaks of infectious disease, cholera, diphtheria.

COVID has hit the country hard, and inflation is so bad that even those with money struggle to afford food.

Those are the issues that Yemenis face if they're lucky enough to make it through the day.

The United Nations estimates the total death toll so far will hit 377,000 by the end of the year.

How did things get this bad and how did Yemen, which is a beautiful country on the Red Sea known for its coffee, its honey, become a proxy war for regional powers and international actors?

It's complicated, and there are a lot of parties involved.

The conflict in Yemen's roots can be traced back to the Arab Spring in 2011, when Yemenis protested against their longtime leader, Ali Abdullah Saleh.

Demonstrations were mostly peaceful, but 50 people were killed.

Saleh himself survived an assassination attempt.

Then in comes the Gulf Cooperation Council, the GCC.

That's kind of the regional organization that matters, a handful of Sunni majority monarchies with the bloc's most powerful player, Saudi Arabia, usually taking the lead on regional geopolitical issues.

The GCC struck a deal with Yemen's embattled leader to hand over the country to his vice president, Abdrabbuh Mansur Hadi, in exchange for immunity.

Groups like the Houthis, a Shia Muslim movement in the north of Yemen, saw this as a move to reinstall the same political elites in power, and they came out strongly against Hadi.

And in a "Game of Thrones" style twist, the Houthis joined forces with their former rival, the deposed President Saleh, in hopes that their alliance would topple the new Saudi-backed government.

The Houthis, with the help of Saleh loyalists, took the capital, Sanaa, and President Hadi was forced to flee to Saudi Arabia, who had been supporting him.

In response, the Saudis formed a coalition that initially included the UAE, Egypt, Qatar and Jordan, with support from the United States, the U.K. and France in the form of logistics, intelligence, training and weapons.

Seeing the odds stacked quickly against the Houthis, Saleh eventually disavowed the group in favor of negotiations back with the Saudis.

Two days later, he was killed.

Saudi Arabia says that its primary objective in Yemen is to contain Iran's influence in the region, and they say Iran openly supports the Houthis, though the Iranians implausibly deny giving the group any military support.

One incident back in 2019 brings the Iranian claim into serious doubt.

>> A twin attack at night with drones on two major Saudi oil facilities, one of them the largest in the world.

>> The Houthis took responsibility for the attack, but investigations by the United Nations, by the U.S. and by the Saudis all concluded Iran was to blame.

After seven years of fighting, Saudi Arabia and Iran continue to use Yemen as a theater of war, and civilians are caught in the crossfire.

Since the war began, more than 24,000 Saudi-led coalition air strikes have hit Yemen.

One in 2018 hit a school bus and killed 26 young children, injured 19 more in a busy market.

In response, aid groups have repeatedly called on the international community to ban weapons sales to Saudi Arabia, and they're saying that the United States, the United Kingdom and France are at least partly to blame for the scale of human suffering that we are seeing today.

David Gressly is the United Nations Resident Coordinator in Yemen, and he has seen what life is like on the ground and the consequences of this endless battle.

Here's our conversation.

David Gressly, thanks so much for joining us on "GZERO World."

>> It's a great pleasure.

Thank you very much.

>> Tell us a little bit what life is just like day to day in Yemen right now.

>> It's really hard, frankly.

I've had the privilege actually of traveling extensively inside Yemen, and I see every day the impact the war has had on people.

I see it in the schools that have been destroyed.

I see it in infrastructure, roads and bridges that are not functional, but more important I see the people.

I remember one trip up towards Hudaydah on the Red Sea coast.

I was traveling in an area that very few people had been able to get into, and that was the whole purpose, was to get there and just traveling and talking to people.

They're worried about land mines in their fields or land mines in the schools, the unexploded ordnance that kills and maims people nearly every day.

They don't have access to water because of the front lines.

They can't cross over to where their fields are or where their schools are, or where their health clinics are.

It's sad because as I travel around, many people, particularly mothers, grabbed my arm physically and just say, basically they have a story they want to tell about what they're facing, trying to keep their children alive, to give their children an education, to get the medical attention that they need.

It's just devastating.

And it's just every year the war goes on, it gets worse for all of these Yemeni people.

>> And I mean, what does government feel like for the average citizen on the ground?

Who are they looking to for any relief at this point?

>> Outside of the international assistance that's coming in, which is considerable -- over $2 billion of assistance a year, which is important to keep in mind that it's a civil war.

So, there's two governments.

There's the recognized government headquartered in Aden right now and then the controlling authority in the north based in Sanaa, and both are quite challenged, frankly, to provide basic services.

We do a lot of that.

We provide the fuel, we provide for hospitals, for water systems.

It's very hard to find the funding to keep these operations going.

Those governments don't have the resources.

In the southern part of the country, you have a currency that continues to decline.

The real has hit lows as much as 1,700 to the dollar.

And it was not so many years ago about 250.

Purchasing power has considerably declined.

So the cost of food has gone up for everyone.

The cost of transportation, distribution has all been complicated by the conflict, so it's very expensive to buy food.

So these impediments, combined with the loss of income for people, means that their incomes have gone down, prices have come up, and it's basically what's creating food insecurity that we see throughout the country, infecting 20 million people.

So it's really hard to see how these two different governments that are currently fighting each other can significantly contribute to the social welfare of the people on either side of the front lines.

>> You've said that the U.N. is providing about $2 billion a year.

How much can you not do?

What is the most urgent that just can't in any way be provided, given the resources you presently have?

>> We're looking actually this year for $3.6 billion just for Yemen alone, of which we've got about $2.1 billion.

So there is that gap of $1.5 billion.

That means people do not get a full ration of food.

We're having to do half or three quarter rations, so that's a major problem.

But the bigger problem really is on the healthcare side.

There isn't sufficient money for keeping hospitals operating or clinics in rural areas operating.

The hospitals are overrun now because most of the clinics are closed.

We're only getting about 20% of the money that we are asking for for health.

The same is true for water supplies, clean water.

Between health and clean water, if you don't have adequate resources and we don't, only about 20%, that contributes as much to mortality as lack of food, and support for the internally displaced -- four million people.

We can't support four million people at this point in time with the resources that we have.

We do as much as we can, but the shelter that they require, we don't have funding really for that.

So simple things like the dignity that people have from a basic shelter or privacy for women is missing.

Education for the displaced, missing livelihoods for the displaced -- missing.

So there are big pieces that are missing.

Keeping people alive is important, but creating an environment in which they can recover.

A new generation can learn and be prepared for a postwar situation is also important.

We have to prepare for the future as well as keeping people alive today.

All of that is missing right now.

>> Now, one of the stats I saw that quite surprised me was some 1.2 million civil servants in Yemen.

They're not being paid, but they go to work every day now.

I mean, you're obviously working with a lot of these people.

What's keeping them going?

>> Many things keep them going, actually.

One is just a sense of responsibility.

They know that they're the ones that are keeping people alive if they're working in a hospital or their teachers educating a new generation so they continue to try to do what they can.

But there are limits to that and bit by bit the people do stop coming to work.

If we lose them, then then our ability to support the population also collapses.

So for multiple reasons, we need to work and we're looking to work with both the governments, but also with international partners on how we can overcome that particular problem I see as one of the more serious problems that the country faces today.

>> So let me make you put your diplomat analyst hat on.

You know, this war has been going on for seven years, which doesn't sound like much in the context of Afghanistan, but for the Yemeni people, it sure does.

So, I mean, we had some cease-fires, but we haven't had any breakthroughs.

What do you think needs to happen for the reconciliation efforts, either from the U.N. or through the GCC to bear fruit?

>> Well, what is playing out today on the ground is the really intense battle in the city of Marib, which is in the eastern part of the country.

It's currently held by the internationally recognized government.

The Ansar Allah is trying to capture it.

Both sides desperately want to win this battle and it will continue until some sort of resolution comes through.

That's why we're seeing the level of displacement there.

And that's why I think until some resolution is there, we're likely to see a continuation of the conflict.

But more medium term, what's required is a peace process and a peace process that doesn't focus only on military and security issues.

It's extremely important, if you want a sustained peace, to deal with the issues of reconciliation, and there has to be built into the process, whether it's in the cease-fire or in the ultimate peace settlement.

But also, I think it's important to deal with the economic issues and to find to build into a peace settlement, a more equitable access to the economy for Yemenis, see that citizens, because that was one of the factors that that drove the initial conflict.

So if you don't build those elements in, you're not likely to have a sustained peace, it's likely to revert back to conflict at some point in the future.

>> Now we are seeing some change from the U.S. perspective.

Under the Biden administration, the Houthis have been delisted as a terrorist organization makes it easier for the Americans to be seen as an honest broker, at least to some degree.

And furthermore, the U.S. no longer providing support in terms of offensive weapons to the Saudis in fighting the war in Yemen.

Do either of those two things actually make a difference on the ground?

>> Primarily looking at it from a humanitarian angle, and I think from that point of view, yes, it's been very, very helpful.

However, any honest observer of all initiatives to try to jump-start a peace process, but we'd have to say that so far this has not worked, and it's not from a lack of trying, that's for sure.

But it just shows you the underlying difficulty of addressing this problem.

The fact that it hasn't worked yet doesn't mean it won't ultimately work, and these things are difficult.

I've been in, as I mentioned, several conflicts before.

Things really don't move forward until there's a will on all parties side to go forward to say now is the time for peace.

And so continued advocacy by those who have influence with different -- with the parties in conflict, in the regional players, I think is necessary to continue to push for for peace.

Secondly, I think there are things that can be done and certainly we've been receiving support from member states, including the U.S., on what can we do to open up the economy even during the conflict to reduce the burden of the conflict on the people?

And like you mentioned earlier, the issue of salaries for the civil service, that's another step that I think we can take that helps solidify economic well-being for people even in the midst of conflict and does lay the groundwork for an ultimate peace.

So here we're getting really good support, I believe.

But it's difficult discussions and negotiations to try to achieve that.

>> If we were able to bring this war to an end.

I mean, does the Yemeni economy have honest, sustainable prospects going forward?

>> I think so.

They're very talented people throughout Yemen.

I've been struck by that.

So, the human capital part, I think, is actually there.

The problem is the war itself, in many ways.

So I don't think it would be that difficult to regenerate an economy if there is a real peace.

Yemen may not be agriculturally self-sufficient, but it can generate enough income to pay for imports.

And I think that a lot of success can be had and there are certain industries like the fisheries industries.

I mean, there's the Red Sea coast and the Arabian Coast that provide ample fishing opportunities that used to be the third largest export earner, in fact, for Yemen was the fisheries sector.

And that should be fairly straightforward also to resurrect it in the context of peace.

So I am not at all pessimistic about Yemen.

It has oil, it has untapped oil reserves and gas reserves, as well as what it's currently exporting.

So the potential, I think, is quite quite good.

>> Is there hope?

I mean, beyond the challenges of getting the two sides together inside Yemen, is there hope that we could see a real fundamental breakthrough between the minorities and the Saudis on the one side, Iran on the other?

And that changes the ballgame?

>> Well, I think if that were to happen, it certainly would change things on the ground.

I do have to say as a bit of a caveat -- only a partial one -- that the authority, the controlling authorities in Sanaa do try to demonstrate a degree of independence from Iran and do resist some of that pressure that I think you're implying.

And I do think it's a way forward.

To find a way forward would be at least in part through the regional countries involved.

But it also requires work internally if we're going to really see it to be successful in the long term.

>> Well, 20 million Yemenis certainly thankful that you're there and doing the good work that you are.

I hope you get a little -- a little bit of downtime over the holidays as you go back in very short order.

Thank you so much for joining us today.

>> It's been great talking to you, thank you very much.

♪♪ >> Yemeni coffee is said to be among the best in the world.

Yemenis say that.

That's right, they do.

Bags of it can fetch upwards of $200 a pound.

Oh, my God.

And some Yemeni Americans in Brooklyn, New York, have traded selling cups of standard bodega brew for high end beans from their native country.

♪♪ >> Welcome to the Diwan Cafe.

I'm Jabr Zanta.

I'm one of the founders of this business.

>> My name is Wisam Hatem, and my partner/cousin, Jabr Zanta, we are the owners of Diwan Cafe, which is located in downtown Brooklyn.

And we make every cup from scratch, so it's not like the typical coffee pour-over.

Every cup is made on the spot to give you the fresh experience of Yemeni coffee.

We import our coffee beans from Yemen, from Haraz, and it's considered one of the top quality coffee beans in the world.

What's interesting about the Yemeni coffee is the different blends like different parts of Yemen.

As far as our cafe, the most popular blend, I would say, is the Mufowar because of the darker roast with the cardamom, and then the milk gives the coffee the rich consistency, and then the cardamom gives it the aroma and the flavor.

All the flavors in the coffee bean.

Then on top of that, just mix it with a little bit of love.

I was born here and actually one time, and when I was very young, I spent my childhood, my teen years over there, and that's what helped me understand the culture, the traditions.

It's what helped me get inspired by the Yemeni coffee.

For me and Jabr was a bit of an opposite experience.

He was born in Yemen and came to this country when he was very young.

>> My uncle, what he would do, I remember growing up that they would always bring suitcases.

Sometimes full of not just the coffee bean but the coffee husk.

>> We actually do, like, little campaigns where we save money ourselves and also from friends and family.

And then we send it over to people that were there that we know over there.

And you know, they give out the money and shout-out and big ups to those people.

They really helped a lot.

They had different locations in different cities, and they made bread.

And then they have the kitchen where they haven't made food and they feed people every day.

This is happening in Yemen, but it's from here, right, from campaigns here, and it started from some young generation of Yemeni people.

>> And now to "Puppet Regime," where it looks like Joe Biden is not the only person who has to bargain with Vladimir Putin these days.

Even Santa is on his way to the Kremlin.

>> Europe is facing an energy crisis, spiking gas prices, soaring electricity bills.

>> Ho, ho, ho!

All the boys and girls want gas this year.

Oh, I can't let them down.

Oh, but who has trillions of cubic meters of gas?

>> So you have come to me to save Christmas?

Oh, Vladimir, I'm so glad you can help.

I knew you wouldn't let the boys and girls of Europe down.

>> Oh, really?

You knew?

Was it in the Steele dossier?

[ Rimshot ] >> Oh, please, Vladimir, find it in your heart to help.

This is for the children.

>> Wrong.

This is for business.

>> Business?

But -- But I'm Santa.

I have nothing to give.

Most of my toys are stuck at the Port of Los Angeles anyway.

>> No toys.

I want power.

Give me the North Pole.

>> What?

You want to annex my home?

Never!

>> [ Fake cries ] The children are so very sad.

[ Children crying ] Can you hear their freezing little cries, Santa Claus?

>> No!

it's like an icicle in my heart.

Oh, please make it stop.

I'll take you off the naughty list.

>> I was born naughty.

Give me North Pole.

>> [ Gasps ] The elves will never agree.

>> Wrong.

They have already started new jobs at my troll farm.

>> [ Gasps ] Oh, Vladimir, please understand, the elves in the North Pole are all I have.

Jeff Bezos already took Rudolph from me.

[ Cries ] >> Okay, this is -- this is a little hard to watch.

Pull yourself together, Santa!

I will sweeten the deal.

You can join the board of my new highly corrupt North Pole shipping company.

You can buy Rudolph back.

>> Really?

I'll do it -- for Christmas!

For the children!

For the cash.

>> "Puppet Regime"!

>> That's our show this week.

Come back next week, and if you like what you see, check us out at gzeromedia.com.

♪♪ ♪♪ ♪♪ ♪♪ >> Major corporate funding provided by founding sponsor First Republic.

At First Republic, our clients come first.

Taking the time to listen helps us provide customized banking and wealth-management solutions.

More on our clients at firstrepublic.com.

Additional funding provided by... ...and by...