Updated study pinpoints impediments facing economy:Unemployment, poverty, low scientific research, infrastructure weakness [Archives:2003/644/Business & Economy]
A recently published economic report mentions that deformations and shortcomings that impede growth of Yemen economy form a chain of links posing as hindrances before financial and economic reforms the government has embarked on since 1995.
The report highlighted scarcity of water resources atop the impediments and ascribing it to drop in rates of rainfall. Added to that is the increased rate of population growth that amounts to 3.5% annual average. This is against limited economic revenues, a situation increasing economic consumption and curbing ability to saving and investment. High rate of unemployment which amounts to an overall proportion of 37% of the work force has complicated and doubled the volume of economic problems.
The report has further mentioned that volume of apparent unemployment reached 11.9% and disguised unemployment at 25.1%, as a resultant of labor power growth by 4.3% a year.
The report considered the low-level of qualifying human resources as one of the factors hindering development of Yemen's economy. This factor is embodied by high rate of illiteracy, drop in proportion of joining general and vocational education, and education curricula and teaching program lagging behind scientific developments and labor market needs. The report also pointed to the growing proportion of poverty in the society which rates at 27.3% and 34.9% consecutively.
Among the impediments facing the Yemen economy are underdeveloped services of roads, electricity, water, sewage system and communications. The report concluded that backwardness of the system of sciences and technology, weakness of scientific research and development activities are among the hindrances that intercept developing performance of economy in Yemen in general.