Donors follow up implementation of poverty strategy [Archives:2003/658/Business & Economy]

August 11 2003

Representatives of donor countries and organisations in Yemen follow up what has been implemented by the technical committee entrusted with implementation of the strategy of alleviation of poverty.
The two sides have held a series of meetings and they would maintain them in September and November and beginning of the next year. These meetings are carried out in context of an integrated mechanism to follow up the strategy. At the conclusion of meetings a report would be prepared to be presented to the Yemeni ministerial council.
The council of ministers had last year approved implementation of the strategy after the government had received guarantees of granting it $2.6 billion during Paris meetings that decided to support the Yemeni economic reforms.
The council had limited a time span for implementing development policies and programs at phases, including the national strategy for alleviation of poverty during 2003-2005 as it is an overall introduction to the millennium development.
The strategy has set up indicators achieving purposes of human development; many sides take part in implementing it. The most significant of those indicators are the mitigation of poverty by about 13.1 percent and increasing the individual income of the gross domestic product by percentage of 1.2-1.7 per cent per year, in addition to increasing the income from agriculture, fish and the contribution of industry and tourism in increasing the domestic product.
Those sides would also carry out measures leading to cover 65 percent with health services and reducing population growth rate to 3 percent. The measures also aim at increasing girls' enrollment to elementary education to 55 percent, raising the portion of water supply coverage to 69 percent in urban areas and 65 percent in urban areas, as for electricity to 40 percent in cities and 22 in countryside and addition of 3300 km of paved roads, 2950km gravel-paved roads and maintenance of 3194 km.
According to the strategy there would be increase in number of cases benefiting from Social Welfares Fund to 600600 and expansion of the organisation of securities to cover 529000 employees and workers, 70000 workers in the private sector.
In order to solve the problem of job creation the ministry of civil service would activate the pension law and work for ending cases of employees having more than one job and control outputs of employment according to scientific criteria. All this to enhance regulations of social protection for alleviation of poverty. The concerned sides hope that the strategy of mitigating poverty would contribute to increase the volume of social spending to13.2 percent of the gross domestic product, including the social care fund to 1.4 percent. To develop administration, rule and enhance participation and cooperation the strategy prepared for the executive sides a number of measures aimed at application of laws and regulations and modernize the state's administrative apparatus by adopting systems of fair wages and incentives and enhancing role of the local authority and institutions supporting the poor.
Specialists view that Yemen's0 success in implementing the poverty alleviation strategy is linked to stable economic development and regular inflow of assistance and gift from donor countries and organisations in order to bridge the financial gap the country is suffering from along with continued budget of the state.