Corruption deprives Yemen of advantages of donations [Archives:2005/905/Business & Economy]
Mahyoub Al-Kamali
President Ali Abdullah Saleh lashed out at those he described as corrupt and threatened to hold them accountable before the 7th general conference of the People's General Congress, Yemen's ruling party. The president pledged forming a committee composed of specialized authorities, public and private sectors and civic organizations in an effort to prevent and uproot corruption. He also strongly threatened those who talk about corruption yet practice it themselves.
Yemen loses a large amount of external assistance and grants due to spreading corruption. The World Bank recently reduced assistance to Yemen by 34 percent, from its present $420 million to $280 million in coming years. The WB ascribed this measure to the Yemeni government's failure to achieve indicators of speed in realizing reforms, improving the investment environment and fighting corruption. The WB demanded the Yemeni government give priority to fighting corruption, especially in preparing the investment environment, the state's budget usage and dealing with it transparently.
It should be noted that the term corruption was not created by the opposition, practiced by opposition forces or concealed by authorities. Its exaggerated spread has created urgency in facing it by authorities, opposition and foreign donors. However, much talk of corruption has resulted in its increased dissemination, giving the impression that the president's speeches and threats of holding the corrupt accountable are just for consumption and an assurance to those responsible for corruption to maintain what they are doing.
The WB described Yemen's performance last year and the first half of this year as not what it wanted, affirming that it will be difficult for Yemen to achieve scheduled millennium goals, as is the case with many other countries. It demanded Yemen accomplish quicker growth, attaining eight percent, in order to overcome the population growth problem that devours the proportion of growth the Yemeni economy presently achieves. The WB deputy spelled out these estimates in his last visit to Yemen. He mentioned that Yemen is among a few countries where population growth is 3.2 percent, adding that with such an existing rate, Yemen's economy will realize no progress. He demanded Yemen's government, civic organizations and journalists fight corruption, noting the country's performance indicators will improve if efforts are exerted. He added that the best solution is if the government can combat corruption itself, doing so with or without help from the WB. As for the negative impression Yemenis have about WB policies endeavoring to harm the world's poor, the WB vice president said this is not correct, noting that 90 percent of WB activity supports the poor.
Official and international reports warned of the danger of increasing accounting disorders in the Finance Ministry, which is entrusted to carry out financial and administrative reform. The Finance Ministry described all such reports as unrealistic. But a report prepared by a joint team from the WB, the Dutch government and donors, in agreement with and participation by the Yemeni government, to evaluate financial questions in the Finance Ministry proved the accuracy of previous reports, disclosing many financial and accounting disorders and revealing much fear about the position of public resources citizens have entrusted to their government. The report stressed that the government's executive apparatus must guarantee sound and proper use of resources via a reliable organizational and legal framework that encourages exercising wise financial judgment in both the economy's private and public sectors. This framework is to be within general financial accountability. A condition is that this system provides enough confirmation to concerned parties, donors and supporters that financial operations are conducted in proper form and revenues accurately managed and protected against cheating and misuse.
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