Browse

You are looking at 1 - 10 of 23 items for :

  • Yemen, Republic of x
Clear All
Mr. Harald Finger and Ms. Daniela Gressani

The changing political landscape in the Arab world has created opportunities for economic transformation by tackling long-standing economic issues. Nevertheless, three years after the onset of political transition, implementing necessary economic policies has proven to be challenging. This paper lays out key elements of economic policy reform for Arab countries in transition.

Mr. Harald Finger and Ms. Daniela Gressani
The changing political landscape in the Arab world has created opportunities for economic transformation by tackling long-standing economic issues. Nevertheless, three years after the onset of political transition, implementing necessary economic policies has proven to be challenging. This paper lays out key elements of economic policy reform for Arab countries in transition.
Mr. Harald Finger and Ms. Daniela Gressani
Les mutations du paysage politique dans le monde arabe ouvrent des perspectives pour transformer l'économie en remédiant à des problèmes économiques de longue date. Néanmoins, trois ans après le début de la transition politique dans le monde arabe, force est de constater qu'il a été difficile de gérer les transitions et de mettre en œuvre les réformes économiques nécessaires. Ce document présente des éléments de réformes essentiels dans le domaine de la politique économique pour les pays arabes en transition.
Mr. Carlo A Sdralevich, Miss Randa Sab, Mr. Younes Zouhar, and Ms. Giorgia Albertin
In the Middle East and North Africa (MENA) countries price subsidies are common, especially on food and fuels. However, these are neither well targeted nor cost effective as a social protection tool, often benefiting mainly the better off instead of the poor and vulnerable. This paper explores the challenges of replacing generalized price subsidies with more equitable social safety net instruments, including the short-term inflationary effects, and describes the features of successful subsidy reforms.
Ms. Nada Choueiri, Mr. Klaus-Stefan Enders, Mr. Yuri V Sobolev, Mr. Jan Walliser, and Mr. Sherwyn Williams

Abstract

The decade of the 1990s was surely one of the most dramatic periods in Yemen‧ s rich history. Unification of the two Yemens, rapid development of an oil sector, and a radically changed external environment fundamentally transformed the opportunities and challenges the Yemeni people face. This paper summarizes economic developments in Yemen during the 1990s, takes stock of the many structural changes in the economy during the decade, and identifies reforms that are needed if Yemen is to move to a path of rapid and sustainable growth, reduce rampant poverty, and responsibly manage the highly volatile economic rents from its oil wealth. It is hoped that this paper will contribute to the ongoing debate in Yemen on the appropriate development strategy for the coming years.

Ms. Nada Choueiri, Mr. Klaus-Stefan Enders, Mr. Yuri V Sobolev, Mr. Jan Walliser, and Mr. Sherwyn Williams

Abstract

Economic developments in Yemen in the 1990s were driven largely by dramatic changes in the political sphere—in particular, by unification and civil war—and by external events, chief among which was the Gulf crisis at the beginning of the decade. A third major influence was the massive debt overhang inherited from the previous political regimes.

Ms. Nada Choueiri, Mr. Klaus-Stefan Enders, Mr. Yuri V Sobolev, Mr. Jan Walliser, and Mr. Sherwyn Williams

Abstract

The macroeconomic policy mix in Yemen in the first half of the 1990s differed radically from that in the second. Unification of the YAR and the PDRY in 1990 joined two countries each of which already faced considerable macroeconomic policy challenges of its own in the late 1980s. The budget deficits of the YAR ranged from 15 to 20 percent of GDP in 1988 and 1989, about two-thirds of which were financed by the central bank, keeping inflation in double digits. In the centrally planned economy of the PDRY, the fiscal deficit exceeded 50 percent of GDP in both 1988 and 1989, of which 25 to 30 percent was domestically financed. (Price controls kept official inflation subdued, however.) Unification added new problems related to the merger of the two civil services and tax systems as well as the large number of publicly operated enterprises in the southern governorates. Since unification had resulted from negotiation between two sovereign governments, each of which received equal weight in the new joint government, many conflicts inherent in the different economic philosophies were resolved only after the 1994 civil war.29 The Gulf crisis of 1990 also added strains to both public and private financial balances in the early 1990s, with the return of workers from the Gulf countries and the drying up of most external financial assistance. Faced with financial crisis, after some early price liberalization efforts during 1990–91, the authorities centered the macroeconomic policy mix in the first half of the decade around attempts to manage financial imbalances through direct control of the economy, affecting in particular imports, the exchange rate, interest rates, and investment. The attempt to defend the nominal exchange rate led to a sharp appreciation in terms of the real effective exchange rate in the first half of the 1990s (Figure 3). As it became increasingly clear that multiple exchange rates and foreign exchange controls were intensifying the negative impacts of external shocks, in 1993—94 the authorities took some partial steps to achieve positive real interest rates and more realistic exchange rates.

The June issue of the IMF Research Bulletin looks at the role of IMF programs and capacity building in fostering structural reforms and the economics of Arab countries undergoing political transitions. The Q&A analyzes the neutral interest rate through the experiences of several Latin American countries. The Research Bulletin also includes its regular features: a listing of IMF Working Papers and Staff Discussion Notes, information on the forthcoming IMF Economic Review and the Fourteenth Jacques Polack Annual Research Conference, and recommended readings from IMF Publications.
Padamja Khandelwal and Agustin Roitman
Over the past two years, ongoing political transitions in many Arab countries have led to social unrest and an economic downturn. This paper examines comparable historical episodes of political instability to derive implications for the near- and medium-term economic outlook in the Arab countries in transition. In general, past episodes of political instability were characterized by a sharp deterioration in macroeconomic outcomes and a sluggish recovery over the medium term. Recent economic developments in the Arab countries in transition seem to be unfolding along similar lines, although the weak external environment and large fiscal vulnerabilities could result in a prolonged slump.