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Yemen

Beyond oil score(out of 100 points) 31.5
Index ranking(out of 26 countries ranked) 24
Overall status*  
General Economic Framework  
Political Framework  
Society and Future Skills  
(Beyond) oil related factors  


Yemen is one of the poorest countries of the Middle East and the Arab world. Oil is Yemen's biggest income earner as it provides 70% of government revenues whilst constituting 87% of the total goods and services exports. However according to a number of estimates, Yemen's oil resources will be depleted by the year 2015.
Yemen does have gas resources, however their development has only recently started.

Beyond-oil investments to drive future growth

Looking at Yemen's current economic plans and natural resources, there are no other industries planned which will be able to generate the same amount of income and energy as oil currently does for Yemen. Although Yemen has recently started to develop its gas industry, nevertheless by the time oil runs out, gas income will in no way be sufficient to make up for the loss of oil income. Tourism is another area where Beyond Oil income is expected, however Yemen’s lawlessness which has led to kidnappings of foreigners, plus a number of internal uprisings, has meant that the tourism sector’s contribution is very small. This problem is expected to stay as apart from lawlessness, there are estimated to be 40 million guns in Yemen, majority of which are unregistered. That 2 guns per Yemeni. Meanwhile the agriculture sector is expected to suffer major setbacks. Due to lack of water management, its estimated that by year 2011 Yemen's water resources will have reached critically low levels.

The Yemeni government does bear some of the responsibility for the problems at home. Economic progress is made even more difficult due to high levels of corruption. According to Transparency International, Yemen is the 113th least corrupt country, putting Yemen amongst the world's most corrupt countries. Also lack of population management has meant that on a number of years, population growth has outstripped economic growth. Meanwhile lack of investment in rural areas has turned into one of the factors which contribute to growth of militant movements.

Beyond Oil Summary

Yemen’s Beyond Oil future is bleak. The biggest cause of this prognosis is lack of comprehensive planning by the Yemeni government to plan the country’s infrastructure and economy to address the day when oil runs out. Although Yemen has suffered from ailments such as terrorism and poverty for decades, nevertheless the government through active planning and participation could do a better job of restructuring the economy and the country’s legal system in order to attract investment. So far such efforts have been absent at worst, and ineffective at best.

  Indicates high preparedness   Indicates deficits but potential for development   Indicates unfavourable preconditions.
 
     
   
 
 
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