Abstract

In the 1960s the end of the reign of the imam in the north of Yemen brought about the establishment of a republic, which took first steps toward introducing a modern, market-oriented commercial and civil law. At the same time, the socialist government that took power in the south following the end of the British mandate established a legal regulatory system based on central planning and extensive government control over production. Thus the unification of the country in 1990 required the merging of two very different legal systems. The product was a complex and ineffective regulatory environment, combining elements of modern Western law with sharia and tribal law, and at the onset of the 1990s an array of controls covered all economic sectors. For a large set of commodities, prices were administratively fixed by the government, to keep basic consumer and input prices low and to suppress inflation.

From Unification to Economic Reform
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