The Agriculture and Economics of Qat

Abstract

Qat is by far the most important cash crop in North Yemen, even though the entire production is distributed and consumed within the country. Until 1971 qat contributed to the country’s balance of trade through exports to Aden (now PDRY). However, since the ban on it in that country instituted in 1971, the popular plant no longer brings in any foreign currency to the Yemen Arab Republic. This is one of the facts martialled by Western economists and some Yemeni government officials in their bitter arguments against the drug. That consumption is totally local is also frequently cited as evidence that qat has little real importance to the economy. The true magnitude of its economic role in the economy has not been understood or appreciated by outside observers.