Page 28 - What Kind of Yemen ?

What Kind of Yemen?

ditions such as Yemen, is built upon interest. The high-interest loans

granted by the IMF, World Bank or other international organizations
all too often have seriously adverse effects on national economies.
Such assistance is generally used in providing finance for essential
imports, paying public sector salaries and closing the budget deficit.
These are all short-term measures and cause the country to fall into an
even greater spiral of debt. No country has ever closed its budget
deficit with high-interest foreign loans.

Various technical matters that need to be borne in mind if Yemen
is to develop and overcome the poverty that has become a feature of its
national life are as follows:
• Immediate legal amendments strengthening freedoms to meet
Yemenis' material and non-material needs;
• Investments and support directed toward regeneration being
spread across Yemen rather than restricted to a narrow region;
• Measures to ensure Yemenis being able to provide for them-
selves instead of expecting material support from wealthy nations or

international organizations;
• Financing from overseas being used in revenue-generating
development programs, and the prevention of their being used by indi-
vidual institutions and of abuse;
• All cultural or sectarian groups in Yemen, and especially
women, being given respect and equality of opportunity;
• Prevention of damage to natural resources such as water, air

and soil.
Putting these arrangements into practice at once will provide a ray
of hope for Yemen. Otherwise, an economy in which there is high infla-
tion and interest rates, where investment is next to zero and where
money is stuffed in safes or under mattresses will almost inevitably
bring with it such problems as a high cost of living and inflation.
If there is production, however, there will be a general improve-
ment in the national economy; the markets will come to life and that

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