Yemen’s markets, repulsive of the poor [Archives:2002/36/Business & Economy]

YEMEN TIMES STAFF
A report compiled by Human Development organization on Yemen (2000-2001) has disclosed that Yemeni markets under applications of the free market since 1995, have failed in achieving justice among people because of their bias towards those entertaining higher purchasing power at the expense of the poor and those of limited incomes.
The report, a copy of which the Yemen Times received, considered Yemeni markets as repulsive of those of limited incomes, who already suffer from unemployment. Therefore, the report indicates things related to distribution of results of growth and development and receiving social services, should not be confined to markets alone but must be undertaken by the government and civil society.
The report indicated that deficiency in the markets is attributed to that the market does not take into consideration rights of the coming generations and neglect ecological considerations and exhausting resources.
As for the private sector, pays much interest to costs the economic activity bears, disregarding expenses of damage and burdens caused by pollution. On the other hand the private sector tends and stresses on monopoly and getting the biggest amount of profits, using in some case illegal measures pertaining to ways of commercial forfeiting.
Government vision of market
The report reviews the government’s vision of the market, summing it up by:
-markets are built on economic efficiency criteria,
-increase prices fluctuations,
-lead to negative impact at the stage of economic change,
-unable to exploit resources and exposed to crises, and
-require integrated legislative and organizational system.
The human development report that the ministry of planning and development has supervised its preparation mentions that consumer rights in Yemen are breached and expose to danger his safety and health because the market contains fake commodities and goods and uses unlicensed trade marks. The report also warns against dangers of deceiving the consumer by exaggeration in giving publicity on goods and services in a way exceeding their specifications or through an unreal discounts in prices of commodities piled up in storehouses.
The policy of liberalization of trade has led to some negative results especially in relation to unparalleled competition between the local product and the imported in a market lacking an effective system of specifications and standardization.
Intensive competition between exports and imports has revealed a drop in the Gross Domestic Product from around 64% in 1995 to 92% in 2000 as proportion of manufactured exports have not exceeded 1%, during the same period.
This state of imbalance resulted to a tilt by the market towards imported commodities lacking required specifications and standardization and conditions of health safety.
The report has also affirmed that the Yemeni market needs a re-habilitation to be capable of competition and serving people. It has considered the trade record as an essential means for protecting the product from cheating. With the expectation of a growth in civil society contribution to offering educational, health and cultural services there would be an enhancement of equal partnership in the markets to protect individuals and the poor against the chaos prevalent in the local market.
However, the report has praised the private sector role in supporting charity acts for mitigating the burdens of markets on people of limited income and asserted the importance of continuation in support offered to charitable societies and civil society organizations on part of businessmen.
The report has, on the other hand, regarded weakness of institutional structure and administrative organization of the state as precluding the creation of convenient circumstances to assist the private sector in utilizing available resources and performing its social and development role as well as participation in achieving human development.
The report concludes by emphasizing the importance of increasing participation of the private sector in supporting and funding activity of civil society organizations and founding a private sector-state joint mechanism aimed at removing difficulties facing its activity and re-organization of the local market to rid it of the chaos prevailing in it.

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