The World Bank (W.B.)The World Bank (W.B.)

Akhtar, who visited Yemen this week, said the bank is intent on strengthening its partnership with Yemen by helping to boost the country's development and assisting it in its comprehensive economic, financial, and administrative reforms.

The meeting in Sana'a addressed the World BankWorld Bank's support for development projects in Yemen as well as the major economic obstacles that Yemen faces in the present time, particularly those caused by the global financial crisis. The Deputy Prime Minister for Economic Affairs and the Minister of Planning and International Cooperation also attended the meeting.

During the meeting, Prime Minister Mujawar reviewed the government's efforts to diversify the country's resources and ration its spending, including its efforts to reduce oil subsidies by establishing gas power plants instead of the traditional oil-dependent stations.

Akhtar's four-day visit (November 6th through the 9th) included field visits to on-going projects funded by the World BankWorld Bank in various governorates, as well as meetings with some high-ranking Yemeni officials.

In her meeting with the Prime Minister, Akhtar highlighted key issues such as the government's progress in implementing reforms and the World BankWorld Bank's support for collaboration between Yemen, the GCC, and other development partners. Akhtar also reiterated the bank's support for the government's plans to focus on equity, social issues, and potential future projects with the bank.

Specifically, Akhtar said that the World BankWorld Bank supports Yemen in two ways: first, through grants and financial allocations, and second, through helping the government increase its capacity for absorbing grants allocated for development projects. Regarding the latter issue, she explained that Yemen lacks the capacity to absorb these grants and that the government and the bank have identified certain stalled projects as a result. Consequently, they've made an agreement to either rehabilitate these projects or close them down.

Akhtar also discussed the global financial crisis and its effects on developing countries, especially those that are oil producers. She said that the increase of the deficit in the public budget is the main problem that developing countries face. Akhtar explained that the World BankWorld Bank is working with the government to face the negative effects of the crisis by increasing the welfare safety net for the poor and creating more jobs in order to achieve sustainable development.

Regarding economic reforms that are being implemented by the Yemeni government, Akhtar stressed that the World BankWorld Bank only plays an advisory role, as the government has its own plans for reform.

Furthermore, while she acknowledged the prevalent political and security concerns in the country, Akhtar encouraged the government to persevere in its reform efforts with particular focus on effectively controlling fiscal deficit by reducing public expenditures on salaries and oil subsidies, enhancing the business and investment environment, and improving governance.

In a separate meeting with the Governor of the Central Bank of Yemen (CBY)Central Bank of Yemen (CBY), Ahmed al-Samawi, Akhtar voiced the World Banks readiness to support Yemen and the CBY in their efforts to reform the banking system throughout the country.

Additionally, she discussed the possibility of World BankWorld Bank support for the CBY in adapting to the new changes in the regional and international banking arenas, which would include providing the CBY with technical assistance for updating its controls, information technologies, payment systems, and management of foreign exchange reserves.

CBY Governor al-Samawi highlighted the developments that have been made in the country's banking systems, and pointed out that they have not been affected by the global financial crisis.

Akhtar also met with civil society organizations, members of parliament, various academics, Yemeni NGOs, development partners, and members of the private sector and the media. She was also accompanied by Mr. David Craig, the new Country Director for Egypt, Djibouti, and Yemen.

By Zaid al-Alaya’a

© Yemen Observer 2009

 

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