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Yemeni economist proposes strategy to tackle unemployment

Dr. Mohammed Ali Jubran prepared study on unemployment which includes a strategy to tackle unemployment. Jubran said " it is easy to criticize the Yemeni government's position and progress in fighting unemployment since the results are negative.

And despite the scarcity of data, the available indicators suggest that the problem is getting worse". Components and elements of the proposed strategy are clarified hereunder according to Jubran;

First: key elements for the strategy's success:

•All parties of the political arena in Yemen have to sit around a table to define a proper ruling system which will allow all the political factions to participate constructively tot eh debate without igniting tensions.

•Effective counter corruption mechanisms shall be adopted.

• In order to prevent a further worsening of the economy, all parties should come up with a new management system, allowing the quick implementation of the chosen strategies.

•Opening the hearts of the GCC population towards the Yemeni people before their pockets and convincing them that the Yemeni people are great and hard working and can live with minimum requirements once they have to.

Second: the Strategy's tracks:

-A Yemeni economic reform and working towards increasing the growth rate.

-Increasing productivity: productivity is the driving force of GDP. Such could be increased through improving the quality of employment, efficient use of natural resources, technological improvement and improving the administration and allocation efficiency.

-Increasing the rates of saving and investment.

-Government intervention.

-Exploitation of the location of Aden and handing over its administration to a competent and efficient body that is capable of attracting substantial international investments.

-Focusing and paying attention to the promising sectors.

-Financial and monetary reform.

Third: replacing the Asian workers with Yemenis: the GCC countries, especially Saudi Arabia, UAE, Kuwait and Qatar could assimilate one to two million Yemeni workers within one year if they truly were interesting in helping Yemen solve its unemployment issue. This plan could be put in action immediately if indeed there was political will.

Fourth: establishing a fund to solve the unemployment and poverty problems in Yemen:

In the possibility that the GCC countries would refuse to open their work market to Yemen then the government would need to organize a Fund which aim would be to find solutions to this troubling matter.
Expected results of the project to solve unemployment and poverty problems:

-Absorption of about three million workers in the agricultural and grazing activities at a cost of 3 billion USD.

-Expansion in the small industrial, commercial and service projects that can assimilate up to one million workers at an estimated cost of two billion USD.

-Infrastructure projects to be financed by the Fund will assimilate 500 thousand workers.

-Once security, stability and infrastructures are all available along with the establishment of industrial zones, this will attract huge investments that could absorb 200 thousand workers.

-Once the funding is available for agriculture, industrial and small projects, the number of poor people will be cut down and hence the number of those who need financial assistance will be small and will be limited to those who can't work, elderly people or those with chronic diseases and disabilities.

© Yemen Observer 2012