Resource information
High and sustained rate of economic
growth in Yemen is a necesary, though not sufficient,
condition for reduction of the high incidence of poverty and
for raising the living standards of Yemeni citizens.
Evidence in this report suggests that the main obstacle to
rapid and sustained economic growth is the weak governance
that characterizes Yemen in addition to the weaknesses in
domestic security, property rights, and rule of law systems.
Weak governance in Yemen is characterized/manifested by
widespread corruption, lack of transparency and
accountability, inefficiency in the interaction of public
officials and private business, ineffective or absent market
promoting institutions such as those enforcing contracts
(courts, tribunals, etc.), poor performance of the public
sector in terms of delivering essential goods and
implementing programs, associated lack of incentives and
skills in the civil service, and weak enforceability of
contracts and rulings. Along with ordering the governance
situation, there are areas that should receive government
priority in the short and medium term, including: 1)
enhancing domestic security to boost economic activity in
all economic sectors; 2) removing excessive and arbitrary
regulations to strengthen basic infrastructure and other
services and to attract private investment into these
sectors; 3) legal and judicial reform; and 4) sustained
implementation of civil service reforms.
