Yemen Heads to Catastrophe Are we Aware? [Archives:2000/51/Viewpoint]

The statistical figures given by the state offices about the situation in all aspects of our life indicate that our country is heading to catastrophe of which our officials are considerably heedless.
There is a constant and accelerating increase in the number of the poor people below the poverty line. They were estimated at 38 % of population in 1999. That is, there is over 667 families which are not able to even make both ends meet and get the basic needs of living. This, of course, resulted in a number of complicated problems.
The number of unemployed people soared up to 35% while the economic growth rate detreiorated dramatically and the GDP rate fell from 8.1% in 1997 to 4.9% in 1998 and 1999; the volume of the fall is approximately 50%. The number of the poor people who can not obtain the basic needs of living is roughly estimated at 9 million of which 3 million hardly could keep their soul and body together depending mainly on alms-seeking.
Yemeni economists expect this number to rise to 4,5 million in the year 2010 and 8 million in 2025 as long as the economic growth rate remains the same and doesnt pick up to comply with the recent level of population growth rate(3,5%), a good indicator of absent population strategy.
The value of the Yemeni Riyal (YR) against the US dollar went down from YR10 in 1990 to YR 165 right now. Therefore, the monthly average income per capita fell to US$ 40 which puts the YR fall rate at 18%.
Not only this, the growth rate of agriculture has decreased now to 00,88% in comparison with 13.7% in 1998. The industrial growth rate went down to less than one percent (0.68%) compared to 3,8% in 1998. A number of local factories and companies closed down as a result the recent stagnation of local industry hit by the unorganized and smuggled flow of foreign products into the Yemeni markets. The list can go on.
Economists believe that corruption and absence of accountability and honest guys at the power center, except for a select few, is the major factor behind all these problems we are all going through.
The economic reform package was initiated in 1995 to revitalize the Yemeni economy and safeguard it against collapse. However, because of the crooked cronies at the power center our efforts of reform failed to hit the nail on the head.
We believe Yemens economy can be revitalized if the public resources are made use of appropriately and their revenues are channeled to the public treasury. Then, this could make a difference to improve our economy instead of asking Saudi Arabia and other countries to handle our development process.

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