World Bank approves 2006-2009 Country Assistance Strategy [Archives:2006/957/Local News]

June 22 2006

SANA'A, June 21 ) The World Bank's board of directors announced the new 2006-2009 four-year country assistance strategy for Yemen. The strategy has been revised on the basis of Yemen's steady progress in implementing economic, financial, and administration reforms over the past three years.

The strategy indicates that important steps have been taken in laying the groundwork for civil service reform and in setting up decentralized fiscal entities, in addition to successfully restoring and maintaining macroeconomic stability. The new Country Assistance Strategy gives focus to enhancing harmonization with the poverty reduction strategy paper in order to achieve the required growth needed to reach the Millennium Development Goals.

The new strategy keeps in mind that Yemen is still heavily dependent on oil as a foreign currency earner (83 percent of total exports), coupled with declining production and limited reserves.

Mustafa Rouis, Yemen Country Manager for the World Bank, said that “governance will be a key focus for Yemen in the short term to ensure long-term development effectiveness.”