The Studies and Economic Media Center (SEMC) has voiced deep regret over the World Bank’s decision to suspend its operations in Yemen in view of the most recent security and political developments the country has seen. The Center further expressed concern that the Yemeni economy would further worsen due to the political conflict raging on in the country.
It called for all political parties to expedite action to find a political solution to the crisis that has crippled the country, and for the state institutions to resume their operations given the economic deflation, faltered investment ventures, the bankruptcy of small and medium business, and rising unemployment. It projected a minus economic growth of % 12- during the year 2015.
It made it clear that Yemen would stand to lose the World Bank’s support to its economy, pointing out that the suspension of the WB’s operations is serious, not only because the financial grants would stop, but because the bank used to play a vital role in coordinating efforts among donors, let alone the fact the decision would affect Yemen’s reputation in the short and long run.
“Though we are usually critical of the World Bank’s blunders in Yemen as evidenced by our most recent investigative report on the WB’s non-compliance with protectionism when it financed the rural road network in the country,” it noted.
In 2014, the World Bank offered a total of $ 40 million in grants to Yemen, and in 2012, it pledged $ 400 million in aid to the country, $158 million of which had already been expended.
It also pledged an extra aid of $ 269 million, of which $ 27 million have thus far been spent. The bank provides funding to some 17 projects in Yemen, 7% of the total projects financed by donors in the country.
The donor-funded projects cover a variety of economic sectors, including good governance and nation building (55%), emergency humanitarian needs (34%), social security (24%), health (17%), water networks (16%), and power (13%).
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