Yemen... Economic stakeholders spoil progress towards peace and economic recovery
English - Wednesday 23 February 2022 الساعة 08:57 am
Aden, NewsYemen, special:
An international report said that the Yemeni economy has now become politicized, and there are deep-rooted economic interests concentrated in a small number of powerful individuals, blocking pathways to alleviate the humanitarian situation and spoiling progress towards peace and economic recovery.
The report of the United Nations Development Program, "The Economic Dimensions of the Conflict in Yemen", obtained by NewsYemen, confirmed that these interests are concentrated in sectoral terms in fuel and gas imports and exports, currency exchange and commodity imports.
"This relates in particular to the operation of war economies by various parties and associated military units that prioritize financing the war effort as well as personal enrichment.
The report stated that deep economic interests strongly affect monetary policy and the functioning of the banking system, stressing that the business community is largely divided into partisan camps, with the exception of a few trying to remain equal among all parties.
He said, it is not possible to make any major economic deal without obtaining a percentage of the leadership of government institutions, the main and only gateway to development and humanitarian programs and international organizations in Yemen, which reflects the nature of the "closed access economy."
The report explained that these individuals work unchecked, enabling them to amass large fortunes that are used to further consolidate their power.
He pointed out that the Houthi militia's efforts to control the economy are designed more as part of a political vision to perpetuate its de facto rule in the areas it controls in the north of the country.
He noted that economic agendas are often linked to the struggle for control of revenues, stressing that the generation of assets and institutions that manage the economy were a driver of conflict dynamics.
The report pointed out that technocrats in Yemen have the ability to manage the economy, but their work is hampered by divisions at the highest political levels.
Technocrats are individuals who possess an abundance of technical skills, leadership qualities, scientific certificates, and technological knowledge with the intent of solving social problems facing citizens, to advance society and increase the level of well-being in it.
The report emphasized that day-to-day transactions by SMEs or merchants are also affected by entrenched economic interests as they have to interact with various parties or security authorities at the local level, on a daily basis resulting in increased transportation costs, illegal checkpoints, double taxation and dual currency costs.
