Small enterprise and the second five year plan (2001-2005) [Archives:2000/30/Business & Economy]

July 24 2000

Preparations are being made to outline the second five-year plan for the economic and social development (2001-2005) as part of the implementation of article (9) of the constitution which stipulates the establishment of the country’s economy on scientific methods. The plan aims at ensuring a better and proper utilization of the economic resources: both financial and human, and developing these resources to face all challenges posing on the way of achieving a sustainable development.
The Yemeni governments have been really serious to achieve this concept through efforts last of which has been the stress on applying methods of the indicatory planning which depends on the market powers to guide and direct the country’s economy as it was mentioned in the preparation guide of the five-year plan. In this context, it is highly important to encourage the spirit of initiative within people to help lessen the current economic and social problems and help achieve development.
The indicatory planning requires a suitable ground to get the aspired benefit for the country and its tools represented in the national capitals participating in the development process. This can not happen unless a proper utilization of human, financial and natural resources is ensured. Such resources are considered to be a connected chain.
The connection and improvement of these resources came as a must due to the need of the advanced countries of the market economy after the second industrial revolution at the end of the 1960s. The negative impact of the technology revolution on the social life was marked by the ejection of a great number of manpower to the streets due to the appearance of robots as an alternative in industry. This coincided with a number of political, economic and social problems in those countries. Chief among those problems were the increase in unemployment, poor’s number of people below the poverty line and the decrease in market size due to the fall of individual consumption function. In order to get rid of this crisis, economists thought of strategies for integration of all kinds of establishments. This means exploiting resources beforehand to achieve sustainable development.
In comparison with Yemen, today and those countries at that time we can observe the following common points:
1- Increase in poverty rate.
2- variance of living standards.
3- Fall of consumption indicator
4- depressed markets
5- Increase in population
In addition, there are common circumstances which are:
1- Availability of natural resources, agricultural, marine and tourist.
2- Availability of national and foreign capitals for investment.
3- Availability of laws and legislations which encourage investment.
4- Availability of clever manpower.
5- Availability of internal and external consumption markets
It is clear that integration of small and big establishment is a must. To achieve this, there should be an agreement on the importance of small enterprise establishment and its connection with the big establishment and that they can not be separated. Many big establishments have closed down in our country due to lack of this awareness and this proves credibility of what has been mentioned above.
It is a time to cope with the new market economy which exploits and utilizes all available resources disregarding their size. This can be applied through the implementation of the five-year plan for the economic and social development (2001-2005).
The second five-year plan should create an integration of all projects disregarding their size in order to:
1- Create new job opportunities.
2- decrease unemployment and poverty rate
3- achieve more people’s participation.
4- properly use available resources.
5- Activate the supply and order mechanism of the market
6- achieve reasonable development at all levels.
7- intensify efforts of the government and people.

Farouq Al-Kamali