International funds to Yemen may be up to $5.5 billion, Al-Arhabi says [Archives:2006/1003/Front Page]

By: Yasser Al-Mayasi
SANA'A, Nov. 28 ) “International donations to Yemen to fund the third plan for its economic and social development may amount to as much as $5.5 billion,” Minister of Planning and International Cooperation Abdulkarim Al-Arhabi said earlier this week. “Yemen's program to carry out reforms and fight corruption is one of the most important factors behind the success of the London Donors Conference,” he added.

Al-Arhabi said Parliament currently is discussing corruption combating, financial liability and tender laws. “Reforming the tender system has been given top priority since it's responsible for embezzling public funds,” he explained, “The government has taken serious steps to reform the tender system in cooperation with U.S. and British firms.”

Among the factors helping to make the donors conference a success was judicial reform, as well as reforms in several other areas concerning donors. The most recent presidential and local elections, which expanded the scope of public participation in decision making, also constituted one of the factors behind the conference's success, according to Al-Arhabi.

He noted that Yemen's 2006 elections garnered both regional and international respect, particularly as several nations considered it a distinct experience in the Arab world.

“Had these elections not taken place successfully, the Donors Conference would've had little chance of succeeding. President Ali Abdullah Saleh's presence also had its effect on making the conference a success,” Al-Arhabi recounted.

He expects international funding for Yemen's 2006-20015 economic and social development plan to amount to as much as $5.5 billion thanks to sincere commitments from regional and international development funds. According to Al-Arhabi, such funds are some of the main sources in the plan's funding scheme.

He revealed that donors welcomed Saleh's declaration that Yemen will join the Extractive Industries Transparency Initiative (EITI) for mining. “For the first time in its history, Yemen has an investment program based on proper policies and standards,” he noted, “In the past, we prepared a five-year plan and included in it a list of items to purchase.”

Al-Arhabi clarified that U.S. funds to Yemen will come via the Millennium Challenge Account (MCA), for which it failed to qualify in the past. “This year, we met with MCA officials, gained their trust and took important steps in this regard. We've been assured that Yemen will qualify for the MCA,” he explained.

The minister pointed out that after receiving these funds, Yemen faces great challenges related to how to use them and achieve goals sought. “We have two documents about the capacity and implementation mechanism, as well as a clear vision of how to use the funding,” he noted.

He admitted that the government system suffers numerous problems, which in turn compelled the government to come up with an ambitious administrative reform project. According to Al-Arhabi, the project will take much time to improve the state's administrative system. He said Yemen has a well-known and distinct experience manifested by special implementation units and the Social Fund for Development.

“These mechanisms are competent and can operate with the help of good policies and funds management,” Al-Arhabi ascertained, “Some Yemeni investment projects received international awards in recognition for their success and distinction and its experience was offered to others to learn from it.”

He disclosed that human resources and both rural and basic service development top the Yemeni government's agenda, which was prioritized in light of available funding.

“A six-month meeting with donors will assess work progress according to plan, as well as serve as a kind of monitoring by donors or the government. The government agreed to hold a meeting with donors every other year under the name, 'Donors Conference,' to assess what's been implemented,” Al-Arhabi went on, “The London conference was different than previous conferences because it coincided with Yemen's efforts to join the Gulf Cooperation Council (GCC).”

Yassin Sa'eed Noman, Secretary-General of the Yemeni Socialist Party (YSP), confirmed that the opposition values all government efforts thus far expended in tackling economic issues, indicating that tackling the country's economic situation is everyone's duty.

According to Noman, both opposition and civil community forces seek partnership in mechanisms aimed at improving the economy but they don't seek government posts. He stressed the necessity of implementing comprehensive national reforms, as previously discussed in a Joint Meeting Parties (JMP) project.

Islah Party Secretary-General Abdulwahab Al-Anisi ascertained that Al-Arhabi's remarks were objective and he urged concerned parties to create a national partnership base.

“Reforms concern everyone. Everyone has the right to participate in implementing political and economic reforms to create a better future for Yemen,” Al-Anisi stated, “It's impossible to separate political reform from economic or social reforms.”

“For the government to carry out real reform, it should get closer to citizens and establish a partnership with them,” Sultan Al-Atwani, Secretary-General of the Nasserite Unionist Organization, added, “Fighting corruption and reforming the state administrative system can help make extra money available to fund development projects.”

He pointed out that the Yemeni government responds to conditions set by other nations, but doesn't consider any advice from local parties.
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