The Third Five Year Plan
Candy will fall from the sky and all will be well. No I’m joking, actually its dollars that are supposed to fall from the sky.
News Yemen:
The Government has assured that the five-year plan would have been based on making an annual growth rate 7.1 percent.
In an explanation to the Parliament last Wednesday, the Ministry of Planning and International Cooperation said the scenario of growth based on two points: increasing the foreign aids rate, according to the commitment of the donor countries to support Yemen to achieve MDGs, and the expected increase in foreign investments in Yemen.
The ministry said its scenario based also on government’s extendable financial policies; earnestly achieving the national reforms package; dropping of oil production to 4.5% during the plan; achieving the project of Liquefied Natural Gas; predicted stable oil price at 59.2 dollars per a barrel during the five years; reducing the population growth rate to 2.75% in 2010 and covering the financial gap estimated at 10.2 billion dollars by foreign resources.
The ministry said the growth rate (7.1%) will increase the annual portion per an individual of the real GDP to nearly 4.2 percent, and that the plan seeks to raise local and foreign investments form 46 percent to 62 percent in 2010.
It also aims at developing other national non-oil revenues, 40-45%, and controlling the budget deficit with 3% of the GDP.
The plan assured that the foreign loans would be limited to soft loans and urgent facilities for the purpose of development according to specific guarantees. It said the foreign debts would not exceed 60 percent of GDP.
According to the plan, measures to establish a stock market and privatize some state-run institutions and companies will continue. It also recommends that banks have to be encouraged to share the state investment projects in promising sector.
In addition, the plan will increase the revenues of the agricultural sector to 4.5%
during the plan through exploiting different agricultural resources and increasing the livestock production to 4.6% and 5% in frequency.
It aims to raise average of fishery sector production 7% and fishery exports 9%.
The plan targets other sectors and seeks to make development in many walks of life.
The plan, which was praised by some members of the Parliament and Shura council, was also sharply criticized by some others who said “it has failed before it begins”.
MP Mohammad al-Afandi said the plan “is abortive because its projects depend upon foreign funds that represent 60 percent of financial resources”.
“The plan depends upon unstable resources”, said al-Afandi.
He wondered how the plan might obtain 7.1% annual growth as the second plan, he said, could obtain only 4.1%, less than expected.
We can call it economic report, not economic plan, because any economic plan requires a clear method which this plan lacks for”, said al-Afandi. He called for transparent assessment of the first and second plans to know the shortcomings.
MP Edarous al-Naqib, said the plan did not include true numbers about the national strategy of reducing poverty.
“The government is talking about corruption without thinking of solutions”, said al-Naqib.
