Economic Reforms Little Help in Reducing Poverty
Without addressing corruption and misallocation of resources, economic reforms further impoverished the poor.
SANA’A, June 28 (UPI) - A policy of economic reforms adopted by Yemen has had the negative — and unintended — effect of further impoverishing the poorest of all Arab countries.
A study prepared by Dr. Abdo Ali Othman, a sociology professor at Sanaa University, Wednesday showed that the economic reforms programs, in place since 1995, have mainly harmed Yemen’s poor and middle classes.
Yemen is not expected to achieve its development objectives and aspirations in the first quarter of the current century under the existing conditions and in light of the reduction of assistance by international donors, which constituted the main financial support for the country’s development programs, the report said.
The study noted that the reforms programs did not achieve the aspired results as they failed to secure steady development, aimed at reducing poverty, and that sponsors of the programs had punished Yemeni society by reducing due assistance.
At the same time, the sponsors had failed to provide real solutions to the causes of the development crisis — financial and administrative corruption and the rampant waste of Yemen’s capacities and resources.
The study indicated that the sterile economic reforms policies resulted in weakening and reducing the middle class, which largely slipped into poverty as a result, further increasing the number of Yemeni’s living in abject poverty.
But the study did note a number of positive results stemming from the reforms programs, notably an improved image of the country in the eyes of investors, the restoration of confidence in the local currency, the encouragement of local savings and increased deposits in Yemeni banks.
But these positive features, coupled with a slow economy, failed to prevent an increase in poverty and unemployment and the descent of a significant portion of the middle class into poverty.
The study pointed out that 42 percent of Yemenis live below the poverty line, with the majority of those coming from rural areas.
More from News Yemen on the study.
Similarly, foreign aid without rule of law does little to enhance development as per this article.
