Is the average Yemeni getting poorer? [Archives:2002/17/Business & Economy]

BY MAHYOOB AL-KAMALI
YEMEN TIMES STAFF
Since it was formed 12 months ago, Abdulqader Bajammals new government has been criticized by opposition parties of doing nothing to fight poverty in Yemen.
Official reports state that 35 per cent of families in Yemen are below the poverty line.
Economic hardship continues to plague such Yemeni people, as they fight to remain employed and above the poverty line.
Each year they have more challenges.
Yemens currency is devaluing, despite work with treasury bonds and privatization.
The new government maintains it has done its best to review a new strategy of poverty accurately and several policies have been adopted to fight poverty.
It has recently discussed the poverty alleviation strategy prepared by the Ministry of Planning and Development in collaboration with international organizations.
Yet the average person has not felt an difference from the governments action on the issue
The new strategy coincides with the Five Second Year Plan, but the majority of Yemenis are upset about current economic conditions, and poverty alleviation has not made a difference yet.
Basic costs like food prices are higher than that of previous year and there is a rise in prices of oil products and mineral article.
Diesels price skyrocketed by 70%in August 2001, and there was a high increase in the prices of water, electricity and phone calls.
The government also intends to increase the price of gas.
Foreign debts have reached US $4.9 billion as of June 2001.
Treasury bonds have increased to 69% of internal debts. The government insists on issuing treasury bonds turning a deaf ear to economists and experts cries.
The stagnating economy in the country has also resulted in a sharp increase in bankruptcies.
And since the new government has imposed high university fees, it has created a sense of fear among our students.
Meanwhile, unemployment in Yemen has become one of the highest rates in the world (42%).
Political observers said that investment opportunities have been greatly crippled. Financial and administrative structures have not been well integrated, and the private sector has also suffered.
The government is now depending on oil resources which constitutes 35 percent of Yemens total production and 95 per cent of its exports.
At the same time, other agricultural and industrial sectors have been either marginalized or ignored.
No tangible changes in taxes and customs have been generated yet as it is promised by the government.
A rapid review of essential services granted to families, definitely displays the governments inability to fulfill its promises properly.
Only 43% of Yemens population enjoy electricity facilities. Similarly only 35% of total population of the country have access to water services, 82% to schools, 25% to hospital, 30% to clinics, 38% to pharmacies, 25% to paved roads.

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