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The Government’s vision for the overall
development is described in the First Five Years (FFYR 1996-2000), which was
endorsed by the cabinet in 1996. Reflecting the country’s socio-economic
conditions and Islamic values, the Plan defines the role of the state in two
areas of a market economy. First, to create a macroeconomic framework which will
allow a free interaction of demand and supply guided by free movement of prices.
Second, to create physical infrastructure, bring about human resource
development through provision of basic health and education services, and
protect the environment.
The objectives of the FFYR are to
accelerate the rate of growth of the economy, create employment, improve
education and public heath services, and protect the environment and water
resources from deterioration and pollution. As discussed in the Plan, meeting
these objectives will require a further deepening and acceleration of the
policies implemented over the past two years in the following areas :
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The tax/expenditure policies would be
designed to maintain the current low level of fiscal deficit. Further, the
structure of expenditure needs to be changed to increase resources for public
investment, for basic education and health and for operations and maintenance
in almost all sectors to enable full utilization of both the existing
capacities and those coming on stream.
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The process of administrative reform currently
underway would be accelerated to improve the delivery of public services and
rationalize the wag structure of Government employees. In parallel, the
Government would launch a process of decentralization of administrative and
fiscal decision making to improve the working of the Government in general.
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Over the next three of five years, the Government
plans to implement a reform of the financial sector. Measures are being
planned to improve the legal framework for loan recovery, improve prudential
regulation, and increase competition in the banking system. The resulting
improved financial intermediation should both increase financial saving and
their efficient allocation, thereby laying the basis for growth.
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The program of privatization would be accelerated.
The Government plans to privatize 70% of the 212 public enterprises (PEs) by
the years 2000. To achieve this target, the Government plans to strengthen
institutional capacity at the center as well as in the line ministries,
accelerate the privatization of some of the larger PEs such as airlines,
airports, telecom, ports and dockyards, and creating conditions for attracting
non-local investors into the process.
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The ongoing program of poverty alleviation would be
accelerated. This includes conserving financial resources through better
targeting of subsidies increasing allocations for basic health and education,
expanding the ongoing public works program, and establishing the Social
Welfare Fund to create employment amongst the very poor by encouraging
micro-enterprise development.
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A set of high priority investment projects would be
implemented to create the physical and social infrastructure necessary for
growth.
More economic factors that would lead
to a bright future…
The recent Geological survey conducted by
a number of International Companies, confirms a significant amount of reserve
in crude oil, Gas and other minerals…at present several US and other oil
companies are working in the oil field…
Current production of crude oil is
400,000 B.P.D.
On Natural gas, a six billion dollars
project has been signed between the Government and several International
Companies, including EXXON.
Yemen has a number of Sea Ports among
them the Port of Aden which once was one of busiest ports in the world…last
year the Government signed a contract with several international enterprises
including a US venture to develop the Free Zone in the Port of Aden.
Tourism and Fishing industries being one
of the ancient countries, Yemen has many historical sight and natural beauty
Sceneries plus a lot of attractions, and a long coastline stretches from the
Red Sea to the Indian Ocean which provide a substantial potential for Tourism
and fishing industries.
Yemen has about 16% of arable land in
various regions and different climates in the country, also unlimited
inexpensive unskilled and semi skilled man power – which gives the country the
comparative advantage for Agriculture and Agro-Industries
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