World Bank Conference at Sana University (By Andrew)

Yesterday I attended a World Bank conference held at Sana University. The main theme of the conference was “Yemen Development Policy Review and Country Social Analysis.” There were several key speakers including the President of Sana University Khaled Tamim and Yemen’s World Bank Country Manager Dr. Mutahar Al-Abbasi. The reports discussed at the meeting were regarded as highly controversial, infeasible, and necessary all at the same. Dr. Ali Al-Abdulrazzaq of the World Bank described how Sana University prepared the reports in which the World Bank builds on, but these reports should have appeared in circulation six months earlier. However, writing the reports is no easy task.

Dr. Yahia Al-Anssi, a professor at Sana University, described the pressures of human populations increase and the possibility of oil resources, which account for 90% of exports, disappearing in a few years. After describing the difficulties facing his country, Dr. Yahia ended on a positive note by saying “there is a possibility that this dark picture changes.”

Other key topics of concern included weaknesses in the quality of administration. Dr Yahia raised the question of why does Yemen have the lowest quality of administration in the Middle East and is considered a Democratic country? This rhetorical question was not meant to persuade the audience to reconsider Democracy, rather to reconsider the current measures against anti-corruption in the government. One central component to increasing economic stability in Yemen is to cut all oil subsidies. On the other hand, it is near impossible to cut all oil subsidies when the people already remember the tremendous damaged caused by removing food subsidies in the 1990’s. According to Dr. Yahia, the average Yemeni wants his life to remain on a certain level and does not care about these changes to increase long run economic stability. Thus, there is a major tradeoff in terms of oil subsidies. Either cut the subsidies and hurt the average Yemeni but increase economic stability, or leave the subsidies and help the citizens but hurt economic stability.

The critique of these World Bank reports was equal to if not less than the critique of the Yemeni government. One panel member described how the Ministry of Commerce and the Ministry of Planning are working in two separate canyons. In addition to separation within government ministries, corruption (as mentioned before) continues to prove extremely detrimental to any economic improvements. The same panel member estimated that corruption costs the Yemeni government 128 billion reyal each year.

After several questions from the audience, mainly directed at cutting oil subsidies, a World Bank representative agreed to answer the questions now rather than at the end of the conference. He agreed that it would be unrealistic and “suicidal” to cut all oil subsidies before strengthening the safety net of society. He went on to say the public must trust the government to use funds in a credible manner. After this comment I asked myself, why should the public trust the government when near 128 billion reyal is lost every year solely due to corruption?

Overall, the conference was both informational and enlightening. However, I felt I had left with more questions remaining unanswered. After hearing the information presented and questions by the audience, I too hope there is a possibility that this dark picture changes.