Despite pledges of aid amounting to several billions of dollars by the international community, Yemen is still struggling to finance its economic recovery said Suleiman al-Qutabery, assistant Deputy Minister of Yemen Planning and International Cooperation for Development Projects.
“Discussions between the government and donors on how to allocate and channel the aid are continuing, with the issue of establishing good mechanisms to absorb aid set as a priority at the moment,” he noted.
The issue is actually an recurrence in Yemen. Back in 2012, the World Bank complained that while Yemen was sinking further into recession millions of dollars were sitting on the shelves awaiting to be spent. While help is at hand, Yemen is failing to come up with the necessary plans and structures to unlock earmarked funds, preventing development and hindering a much needed recovery.
With over 40% of its population living below the poverty line and a million of its children suffering form malnutrition, Yemen cannot afford to delay any further the flow of aids.
Yemen officials have stressed that while they were hard at worked establishing the Transitional Program for Stabilization and Development 2012-2014 to facilitate the absorption of aids, instability throughout Yemen provinces and the threat of al-Qaeda were still a cause of major concerns.
“Security is one of the key factors for accelerating aid. I think donors are right because no projects can be implemented in unsafe areas,” an official explained.
Economists are warning that while international aids will play a defining part in Yemen's economic recovery, the government will need to improve its investments climate and focus on stabilizing inflation and controlling its deficit.
Eqbal Yasin, Yemen Deputy Minister of Industry and Trade, said "the country has well-prepared strategies to forge its economic links with other countries, mainly rich neighbors such as Saudi Arabia as well as China ... Through bilateral committees with each country and free trade zone including the Arab free trade zone, Yemen will build stronger links with other countries."
Economist Omar al-Mahalawi said Yemen needs to explore new partnerships in the region, especially with Turkey - the main regional power-house - "Turkey would be a natural partner for Yemen, economically, politically and geographically. With its vast market, stable growth, large investors' pool and oil and gas expertise a commercial alliance with Ankara will prove lucrative to Yemen."