Planning & indicators of economic development in YemenA new vision [Archives:2003/643/Business & Economy]

June 19 2003

Mahyoub Al-Kamaly
The Yemeni government has drawn up an integrated vision for the state general policy aimed at consolidating the base of partnership in development between the public sector and the private sector in addition to civil society organizations. The plan is adopted in context of the integration between the national, regional and international economy according to a number of certain criteria and goals. These criteria and goals are:
– developing the national economy at a rate estimated at 407% against 603% for the non-oil gross domestic product (gdp) in the period of 2003-2005.
-reducing population growth rate to 3% by the year 2005 expected to lead to increase the individual share of the gdp, improve the living standard and reducing the rate of poverty by around 13% by the end of 2005.
-setting up a comprehensive plan for development of rural areas to create job opportunities in littoral areas and mountainous residential gatherings and reminders of Yemen's regions.
-granting the private sector a pioneering role in the economic activity and implementing the program of restructuring the economic units, in addition of controlling inflation, stability of currency exchange rate, encouraging local investment and attracting foreign capital. The program also aims at maintaining rationing the public spending structure and reforming taxation and customs system. Other goals of the program are to remove the remaining restraints on investment, raising the rate of government investment, as well as finalizing studies and required measures for establishing stock exchange markets and encouraging foundation of stocks companies.
The government vision has also drawn features of a trade policy and conditions of incorporation and globalization. The government has set up mechanisms for the execution of this vision dependent on continuation in the policies of trade liberalization, encouragement of exports, increase of foreign investments and work for establishment of a grand Arab free trade zone, intensification of programs and campaigns of internal and external promotion for investment in the free zone in Aden.
The government vision also pledged to found a formula for a dialogue frame between the state and the private sector in order to be as a coordinative council to enhance relationship of the state and its various establishments as part of this vision the Yemeni government would in the coming period on preparing a national plan for waters and environment, boosting the productive capacity of oil and gas and encouraging foreign investments in these two areas.
In agricultural area the vision aims during the coming two years at implementing land reclamation, combating desertification and improving the efficiency of irrigation. It also aims at implementing the plans of the five agricultural crops, namely, date-palms, coffee, mango, olive and honey, and also to develop crops like cotton, cereals and expanding in building marketing projects. The government intends to conduct overall studies on fish reservoir and encourage investment in fish culture, expand network of local and external marketing in addition to development of manufacturing industries and treatment of the situation of floundering economic and industrial projects. Efforts are also directed to develop services in the seaports and the completion of building a wharf in the island of Socotra, development of Mukalla port, enacting a system on ensuring safety of sea navigation, protecting Yemeni coasts against acts of piracy and combating sea pollution.