A Hawthi Shiite rebel holds his weapon while standing guard near a protest site in Sanaa, Yemen, Sept. 19, 2014.

UNITED NATIONS – When North and South Yemen merged into a single country under the banner Yemen Arab Republic back in May 1990, a British newspaper remarked with a tinge of sarcasm: “Two poor countries have now become one poor country.”

Since its birth, Yemen has continued to be categorised by the United Nations as one of the world’s 48 least developed countries (LDCs), the poorest of the poor, depending heavily on foreign aid and battling for economic survival.

“This double game was well known to the Americans. They went along with it. It is what allowed AQAP to take Jar and other regions of Yemen and hold them with some ease.” —Vijay PrashadBut the current political chaos – with the president, prime minister and the cabinet forced to resign en masse last week – has threatened to turn the country into a failed state.

And, more significantly, Yemen is also in danger of being split into two once again – and possibly heading towards another civil war.

Charles Schmitz, an analyst with the Middle East Institute, was quoted last week as saying: “We’re looking at the de facto partitioning of the country, and we’re heading into a long negotiating process, but we could also be heading toward war.”

In a report released Tuesday, the Brussels-based International Crisis Group said the fall of the government has upended the troubled transition and “raises the very real prospect of territorial fragmentation, economic meltdown and widespread violence if a compromise is not reached soon.”

The ousted government of President Abdu Rabbu Mansour Hadi was a close U.S. ally, who cooperated with the United States in drone strikes against Al-Qaeda in the Arabian Peninsula (AQAP) holed up in the remote regions of Yemen.

The United States was so confident of its ally that the resignation of the government “took American officials by surprise,” according to the New York Times.

Matthew Hoh, senior fellow at the Center for International Policy (CIP), told IPS, “I don’t know if Yemen will split in two or not. [But] I believe the greater fear is that Yemen descends into mass chaos with violence among many factions as we are seeing in Afghanistan, Iraq, Libya and Syria, all nations that have been the recipient of interventionist U.S. foreign policy.”

According to an Arab diplomat, the Houthis who have taken power are an integral part of the Shiite Muslim sect, the Zaydis, and are apparently financed by Iran.

But the country is dominated by a Sunni majority which is supported by neighbouring Saudi Arabia, he said, which could trigger a sectarian conflict – as in Syria, Iraq and Lebanon.

Ironically, all of them, including the United States, have a common enemy in AQAP, which claimed responsibility for the recent massacre in the offices of a satirical news magazine in Paris.

“In short, it’s a monumental political mess,” said the diplomat, speaking on condition of anonymity.

Vijay Prashad, George and Martha Kellner Chair in South Asian History and Professor of International Studies at Trinity College, told IPS it is very hard to gauge what will happen in Yemen at this time.

“The battle lines are far from clear,” he said.

The so-called pro-U.S, government has, since 2004, played a very dainty game with the United States in terms of counter-terrorism.

On the one side, he said, the government of former President Ali Abdullah Saleh and then Hadi, suggested to the U.S. they were anti al-Qaeda.

But, on the other hand, they used the fact of al-Qaeda to go after their adversaries, including the Zaydis (Houthis).

“This double game was well known to the Americans. They went along with it. It is what allowed AQAP to take Jar and other regions of Yemen and hold them with some ease,” Prashad said.

He dismissed as “ridiculous” the allegation the Zaydis are “proxies of Iran”. He said they are a tribal confederacy that has faced the edge of the Saleh-Hadi sword.

“They are decidedly against al-Qaeda, and would not necessarily make it easier for AQAP to exist,” said Prashad, a former Edward Said Chair at the American University of Beirut and author of ‘Arab Spring, Libyan Winter.’

Hoh told IPS: “Based upon the results from decades of U.S. influence in trying to pick winners and losers in these countries or continuing to play the absurd geopolitical game of backing one repressive theocracy, Saudi Arabia, against another, Iran, in proxy wars, the best thing for the Yemenis is for the Americans not to meddle or to try and pick one side against the other.”

American foreign policy in the Middle East, he said, can already be labeled a disaster, most especially for the people of the Middle East.

“The only beneficiaries of American policy in the Middle East have been extremist groups, which take advantage of the war, the cycles of violence and hate, to recruit and fulfill their message and propaganda, and American and Western arms companies that are seeing increased profits each year,” said Hoh, who has served with the U.S. Marine Corps in Iraq and on U.S. embassy teams in Afghanistan and Iraq.

When the two Yemens merged, most of the arms the unified country inherited came from Russia, which was a close military ally of South Yemen.

Yemen’s fighter planes and helicopters from the former Soviet Union – including MiG-29 jet fighters and Mi-24 attack helicopters – were later reinforced with U.S. and Western weapons systems, including Lockheed transport aircraft (transferred from Saudi Arabia), Bell helicopters, TOW anti-tank missiles and M-60 battle tanks.

Nicole Auger, a military analyst monitoring Middle East/Africa at Forecast International, a leader in defence market intelligence and industry forecasting, told IPS U.S. arms and military aid have been crucial to Yemen over the years, especially through the Defense Department’s 1206 “train and equip” fund.

Since 2006, she pointed out, Yemen has received a little over 400 million dollars in Section 1206 aid which has significantly supported the Yemeni Air Force (with acquisitions of transport and surveillance aircraft), its special operations units, its border control monitoring, and coast guard forces.

Meanwhile, U.S. military aid under both Foreign Military Financing (FMF) and the International Military Education and Training (IMET) programme has risen substantially, she added.

Also, Yemen is now being provided assistance under Non-Proliferation, Anti-Terrorism, De-mining, and Related programmes (NADR) and International Narcotics Control and Law Enforcement (INCLE) programmes.

According to the U.S. Congressional Budget Justification – U.S. support for the military and security sector “will remain a priority in 2015 in order to advance peace and security in Yemen.”