Report No. 3570-YDR FILE COPY
People's Democratic Republic of Yemen
Economic Memorandum
January 29, 1982
Country Programs I
Europe, Middle East and North Africa Region
FOR OFFICIAL USE ONLY
Document of the Wbrld Bank
This document has a restricted distribution and may be used by recipients
only in the performance of their official duties. Its contents may not otherwise
be disclosed without World Bank authorization.
CURRENCY EQUIVALENTS
Currency Unit: Yemen Dinar (YD)
YD 1 = 1,000 Fils
Currency Equivalents Since February 1973
YD 1 = US$2.90
US$l = YD 0.345
NOTE: Beginning 1976 the fiscal year, previously ending March 31, was
changed to coincide with the calendar year. The 1975 fiscal year
was for nine months (April-December 1975) to cover the transitional
period between 1974/75 and 1976.
FOR OFFICIAL USE ONLY
PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN
ECONOMIC MEMORANDUM
TABLE OF CONTENTS
Page No.
BAbIC DATA
MAP
INTRODUCTION 1
PHYSICAL SETTING 2
RESOUkCE MOBILIZATION 2
-Domestic Revenue 2
-Foreign Assistance 3
-Labor Income and Private Transfers 4
DEVELOPMENT EXPENDITURES 5
ECONOMIC GROWTH AND MAJOR SECTORAL DEVELOPMENTS 7
-Agriculture and Fisheries 8
-Manufacturing 10
-Energy 11
-bocial Services 12
PRODUCTION FACILITIES BY OWNERSHIP 14
EXTEkNAL BALANCES 15
SECOND FIVE-YEAR PLAN, 1981-85 18
STATISTICAL APPENDIX 21
This report was prepared by Mr. S. Rangachar (economist), following his
visit to People's Democratic Republic of Yemen (PDRY) during the first half
of April 1981. The draft of this report was discussed with the Government
in December 1981.
This document has a restricted distribution and may be used by recipients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
D.
Page I of 2
PDRY: COUNTRY DATA
AREA (Thousand Sq. Km.) POPULATION DENSITY
Total 333.0 1.9 million
(mid-1980) 5.6 persons
per sq. km
Agricultural 93.3
Rate of Growth: 2.6% (from 1973 to 1979)
POPULATION CHARACTERISTICS (1978) HEALTH (1978)
Crude Birth Rate (per 1,000) 46.4 Population per physician 5967
Crude Death Rate (per 1,000) 16.0 Population per hospital bed 1438
ACCESS TO PIPED WATER (1979) ACCESS TO ELECTRICITY (1979)
% ot Population 24 % of Populatron - total 22.0
- rural 1.6
NUTRT'FION (1979) EDUCATION (1976)
Calorie intake as % of requirements 81 Adult literacy rate (%) 32
Per capita protein intaKe (grams/day) 55 Primary school enrollment (%) 72
GNP PER CAPITA IN 1980 2/ $424
NATIONAL ACCOUNTS Avt.rage Annual Growth (%)
1980 14BO (Constant Prices)
US3million % USfmililon % 1974-79
GNP at Market Prices 853 100 GDP at Factor Cost 570 100 6
Gross Domestic Invest. 249 29 Of which:
Gross National Savings -17 -2 Agri. Fisheries 74 13 0
Exports of Goods + NFS 96 11 Industry c/ 81 14 9
Imports of Goods + NFS 696 81 Construction 78 13 23
Transport 87 15 12
Govt. Services 140 23 7
GOVERNMENI' FINANCE
Budget
Estimates
(In million Yemeni Dinars) 1974/75 1975 d/ 1976 197;' 1978 1979 1980
Total Receipts e/ 23.6 16.9 32.1 43.4 56.0 68.0 107.2
Current Expenditures 27.6 25.6 39.2 47.4 61.4 76.2 96.0
Current Deficit -4.0 -8.7 -7.1 -4.0 -5.4 -8.2 11.2
Development Expenditures 19.6 18.9 39.2 57.3 59.7 52.0 74.2
Overall Deficit -23.6 -27.6 -46.3 -61.3 -65.1 -60.2 -63.0
Borrowing from Banking System 10.4 12.5 15.6 1.5 13.2 27.6 19.0
External Financing 13.2 15.1 30.7 42.8 51.9 32.6 44.0
MONEY AND CREDIT 1974 1975 1976 1977 1978 1979 1980
(Million YD., Outstanding, End Period)
Money and Quasi-money 55 67 98 140 168 217 256
Bank Credit to Government 24 37 62 72 87 110 127
Bank Credit to Non-Gov't Sector f/ 19 24 31 49 59 61 98
a/ World Bank Atlas methodology.
b/ Rough estimates.
c/ Includes manufacturing, petroleum refining, mining, electricity and
Water.
d/ The fiscal year was April 1-March 31 until March 31, 1975 when it became April
1-December 31, 1975 and thereafter is on a calendar year basis.
e/ Includes current and development revenues from domestic sources and self-financing
ot public enterprises.
f/ Includes public sector agencies.
Page 2 of 2
BALANCE OF PAYMENTS (US$ million) 1974 1975 1976 1977 1978 1979 1980
Exports 1/ 8 8 26 24 17 20 38
Imports 1/ -190 -178 -268 -365 -386 -411 -650
Trade Deficit -182 -170 -242 -341 -369 -391 -612
Non-factor Services, net 22 14 20 10 17 14 14
Factor bervices, net 48 18 43 76 111 142 176
Labor Income (41) (15) (37) (69) (103) (131) (146)
Investment Income (7) (3) (6) (7) (8) (11) (30)
Current Account Deficit -112 -138 -179 -255 -241 -235 -421
Transfers 1 52 125 174 191 205 284
Official 1 10 46 55 36 23 83
Private -- 42 79 119 155 182 201
Official h ana Lt Capital, net 65 31 73 70 94 59 76
Gross Disbursements (65) (32) (75) (71) (95) (64) (86)
Repayments (0) (-1) (-2) (-1) (-1) (-5) (-10)
Other Capital (incl. E & 0) 38 42 4 29 45 -8 86
Changes in Official Reserves
(- = increase) 8 13 -27 -18 -89 -22 -24
Memo Item:
Gross Official Reserves (end year) 67 54 81 99 188 210 234
MERCHANDIbE EXPORTS Average 1978-79
US Million Percent
Fish and Fish Products 9 47
Agricultural Products 8 42
Other 2 11
19 100
EXTEkNAL DEBT (DECEMBER 31, 1980) US$ Million
External Public Debt Outstanding 1,241
of which: Disbursed 499
Debt bervice Payments in 1980 15
Debt Service Ratio (Exports of Goods
ana Services) 4.4 Percent
1/ Net of re-exports.
2/ Workers' remittances.
IBRD 15175R
TJRKEY u U S S R 5DR AUGUST 1981
SYRIAN y. PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN
iSRAEL-_ j I DA-ASSISTED PROJECTS BY SECTOR
X NEUTRAL<<Yn \<> g , PROJECTS O~ECT
\ X 9AH R a l N > .$ r rt3 A g r F~~~~~-C= Ag, c u I t re
ARE SAUD AE H 4 F,sher,es
ARARIA ( Petroleurn Explorot.on Ass,stance
SUDAN V \ A EdAcOt,on
( YA/9%'{ ASAI/AN SEA Highways
JE lOPOAUT I Power Stations R- /
Transm,ss,on Lnes J - , ' OAM A N
C] Water Supply '....\
4. Port Development / |
/ * * X-- /\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ /
tLS tH) X #/ Nx � O f>Thomud B \ ~~~~~~~~~~~~~~~Th m.
< \ YE-MEN . /
+ ) ~ARAB FREP. /1/-S {t-
I-ISCAL
PROJECT YEAR APPROVED
HIGHWAYS I 1971A DAH
FISHERIES I 15973
16' EOUCATION 1 1975
HIGHWAYS 11 1975 j f shtun
ADEN PORT REHABILITATION 1976
WADI HADRAMOUT AGRICULTURE 1976
WADI TURAN AGRICULTURE 19R78
WADI HADRAMOUT POWER 1978
WATER SUPPLY ENGINEERINGS 1978 /,
TECHNICAL ASSISTANCE
EDUCATION 1 1979I
FISHERIES 11 1979_______ _EITN_ETR5
PETROLEUM DEVELOPMENT Ataq Governorate Cap,tals
ASSISTANCE s hh
ADEN WATER SUPPLY I � \' \ -' 1A S i1 Notional Capital
WADI BEIHAN AGRICULTURE 1981 As S ELEVATION (Meterfl
MUKALLA WATER SUPPLY 1981 Rvers ond Wds
ENGINEERING .'200__ Pr-mary Roads
r Al, 2wdor3 X / '1\ _ 1000 - Secondary Roads
---- Governorate Boundcioes
- -ThutO J /Internot,onal Boundaries
ta (; KersA} \ ))/ a < 100 200~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~10 0
\, 0> N .J IBAR GUL F 0/1 A D N KILOMETERS
E-T HI OA g $2 s2DEN 46- so- 'CeOdnrenlstichbou4 50'
INTRODUCTION
1. Over the past decade, The People's Democratic Republic of Yemen
(PDRY) has consistently pursued a strategy of developing the country within
the context of a planned economic system. The principal objectives of the
Government have been (a) to satisfy the basic needs oE the population for
food, essential consumer goods, shelter, employment, health care and the
social services; (b) to develop the production capaciity of the economy,
especially in agriculture, industry, construction and minerals; (c) to
strengthen the infrastructure sectors, i.e. transport, power and
telecommunications; (d) to raise education standards, emphasizing technical
and higher education; and to increase exports of domestic products. Thus
the direction and pace of economic and social development in PDRY has been
strongly influenced by institutional reforms which greatly expanded the
public sector and gave it a leading role in urban pro-duction, distribution
and services. Simultaneously, traditional feudal structures in rural areas
were largely replaced by cooperatives and state-owned farms.
2. PDRY has completed two planning cycles: the three year development
plan (1971/72-1973/74) and the first five-year plan (1974/75-1978/79).
During this period, the economy enjoyed a substantial rate of growth. Gross
domestic product at constant factor cost is estimated to have grown by about
60 percent between 1973 and 1979, or an average annual rate of 6 percent.
Gross national product grew at much higher rates and has probably more than
doubled during the same period. Even though the economy slowed down during
1978 and 1979 reflecting the increasing scarcity of labor, real GNP grew by
an average rate of approximately 9 percent per annum.
3. The Government also succeeded in mobilizing relatively large amounts
ot financial resources domestically and abroad. These resources permitted a
rapid expansion of public expenditures strengthening the country's tenuous
infrastructure and promoting investment in agriculture, fishing and
manufacturing. Special emphasis was given to the expansion of education and
to manpower development. Social programs were initiated to secure food
supplies for the population, improve public health services, and establish a
more equitable income distribution. More recently, effective policies were
introduced to attract labor income and private transfers (workers'
remittances); this has significantly eased the country's foreign exchange
constraint.
4. Impressive as these achievements are, PDRY is faced with some
serious difficulties in its development process. One of the more serious
constraints which PDRY is now facing is a critical shortage of skilled labor
and in some sectors even of unskilled workers. The labor shortage is the
result ot both emigration to neighboring oil-surplus countries and rising
economic activity within. To some extent, the manpower constraint is
exacerbated by inefficiencies in utilizing labor, e.g., overstaffing in
public offices and enterprises. Another important issue with which the
authorities have been confronted for some time is low productivity. In many
instances the returns on investments in agriculture, fisheries and industry
have been less than expected. To a large extent this is the result of
inadequate incentives. Other reasons for low productivity are inefficient
management, weak financial controls, inadequate equipment, poor maintenance,
inefficient marketing and to some extent due to adverse natural factors.
5. A third issue which is becoming increasingly pressing is energy.
PDRY has no known commercial energy resources and presently imports
virtually all her energy requirements. Exploration for oil and gas is under
way in areas which hold some promise; the Government has also introduced
measures to economize on energy consumption. But energy imports are now
creating a serious burden on the balance of payments, which is likely to
rise further if no domestic energy resources are discovered.
6. Last but not least there is the question of the role of the private
sector in the development process. Past experience has demonstrated the
relatively higher efficiency of the private sector and its ability to
operate profitably. The recent increase in labor income and private
transfers has broadened the capital base of the private sector and opens the
prospects for productive investment of such funds in private enterprise.
The Government has in the past few months attempted to provide more positive
inducements to the development of the private sector through the
promulgation of an Investment Promotion Law.
PHYSICAL SETTING
7. PDRY is located in the southernmost part of the Arabian peninsula
with an estimated area of 333,000 square km. Topographically the mainland
may be divided into two parts; (i) the coastal zone, about 12-25 km wide,
stretching along the Arabian sea for about 1,200 km; and (ii) the plateaus
and high lanas of the interior. Much of its territory is rugged and
mountainous while the climate is arid with high temperatures and very little
precipitation. Natural vegetation is scarce and more than 50 percent of the
country is barren. Less than one percent of the area is suitable for crop
proauction. No significant mineral deposits of commercial quantities have
yet been discovered. But its long coastline provides PDRY with substantial
potential for fishing.
RESOURCE MOBILIZATION
Domestic Revenue
8. A key element of PDRY's strategy has been the mobilization of
domestic and foreign resources for the financing of development
expendltures. btarting from a very low level at the beginning of the 1970s
when the economy was severely depressed, the Government made a determined
effort to increase domestic revenue. A general import tariff was
introduced; corporate taxes were revised; new excise taxes were imposed and
rates of existing ones increased; individual income taxation became more
progressive; and assessment and collection of taxes was strengthened and
improved.
9. These measures together with a general expansion in economic activity
and gradually rising price levels led to a sharp increase in public revenue.
In 1980 it had reached YD 107 million, almost ten times the amount collected
in 1969/70 (YD 11 million). Public revenue more than quadrupled in real terms
during the decade. It also increased as a percentage of GNP, ie., from an
estimated 11 percent in 1969/70 to about 30 percent in recent years. Given
the relatively low level of per capita income in PDRY ($424 in 1980) this is a
remarkable performance.
Table 1: REbOURCES FOR THE FINANCING OF PUBLIC EXPENDITURES
(YD million and percent)
1969/70 1976 1977 1978 1979 1980 1/
Domestic Revenue (YD mln) 10.7 32.1 43.4 56.0 68.0 107.2
ot which (in h)
Tax Revenue 73 61 65 60 63 63
Public Enterprises 9 24 18 19 20 21
Other Receipts 18 15 17 21 17 18
Foreign Assistance (YD mln) 2.6 36.0 43.2 44.9 28.3 54.9
of which (in %)
Grants . 44 44 28 28 52
Loans (net) . 56 56 72 72 48
Total Resources (YD mln) 13.3 68.1 86.6 100.9 96.3 162.1
as . of GNP 14 47 46 47 38 55
of which
Domestic Revenue 11 22 23 26 27 36
Foreign Assistance 3 25 23 21 11 19
1/ Preliminary
10. About two thirds of the domestic resources came from tax revenue,
much of it from import duties although income and production taxes have also
become major sources of government revenue (see Table 5.2 in the Statistical
Appendix). Income of public enterprises have contributed an average of 21
percent to total domestic resources during 1976-80, compared with only 9
percent in 1969/70. This reflects the growing share of the public sector in
overall economic activity, as well as government efforts to strengthen the
financial viability of public entities. The remaining receipts (averaging
about 16 percent of the total) consist mostly of administrative fees, various
charges for public services and sales of government property.
Foreign Assistance
11. The Government's efforts to mobilize domestic resources were almost
matched by its success in attracting foreign assistance to its development
programs. Atter the discontinuation of British budgetary support, following
- 4 -
the country's independence in 1967, foreign aid had fallen to a very low level
(YD 2.6 million in 1969/70). In subsequent years, however, the Government
managed to obtain much larger amounts. Thus, by 1976 total foreign assistance
had risen to YD 36 million, exceeding domestic resources by about YD 4
million. Foreign aid inflows declined sharply in 1979 (YD 28 million) but
recovered in 1980 (YD 55 million).
12. The major donors were international organizations (IDA, IMF, UNDP),
socialist countries (especially the USSR and China), and since the mid 1970s
Arab countries, including Arab Funds.l/ Much of it was provided on
concessional terms, some as outright grants. Debt service payments have
therefore remained at relatively low levels, claiming an average of only 4
percent of total domestic revenue during 1978/80. More recently, however, the
debt service burden has been rising and is expected to increase further in the
next few years.
13. Foreign aid declined in 1979 for two reasons. First, reduction of
the substantial official grants which PDRY received during 1976/78. Another
major factor was that with the slowdown in development spending (see para. 22
below) lesser amounts were drawn from outstanding loan commitments. As a
result the share of foreign assistance in total resources available to the
public sector fell trom 53 percent in 1976 to 29 percent in 1979; in terms of
GNP foreign aid declined from 25 percent to 11 percent, respectively.
Labor Income and Private Transfers
14. Since the mid 1970s labor income and private transfers2/ have
increased sharply opening yet another important resource channel to the
economy. To a large extent, the increase has been the result of changes in
government policies. Before 1976, emigration of workers was severely
restricted while the purchasing power of local currency obtained in exchange
for remittances and transfers, was very limited. Starting in 1976, the
Government introduced a series of measures aimed at liberalizing the flow of
emigration and providing larger material benefits to the recipients of such
funds. Thus, selective new emigration was permitted; returning workers were
allowed to import merchandise duty free up to YD 200 per person; the supply of
imported consumer goods available to the population was substantially
increased; construction materials were made available for private housing;
investment in some areas of private business, e.g., transport, was encouraged;
and some emigrants were allowed to maintain convertible foreign exchange
accounts in local banks at preferential interest rates.
1/ More information on foreign aid is given in the Balance of Payments
Section of this memorandum (see paras. 47 and 50-51).
2/ Following the United Nation's System of National Accounts labor income is
aefined as payments coming from short-term migrants (abroad for less than
one year) whereas private transfers (Workers' remittances) are defined as
payments coming from longer-term migrants.
- 5--
15. As a result, the number of emigrants resident: abroad is estimated to
have risen from about 125,000 in 1975 to an estimted 210,000 in 1980.1/
Combined with rising wage levels in the oil exporting countries where most of
the emigrants are employed, this has led to an inflow of labor income and
private transfers which in 1980, was equivalent to about one half of the gross
domestic product.
16. Given PDRY's strict toreign exchange controls, virtually all labor
income and private transfers are initially absorbed by the state-owned banking
system. Corresponding amounts of local currency are paid to the recipients or
to returning workers, as the case may be. In this way the state gains full
control over the foreign exchange that enters the country through remittances
or transfers, and these resources are then used according to the priorities
set in the foreign exchange budget. Labor income and private transfers have
also contributed to the augmentation of tax revenue, mainly through import
duties and excise taxes.
17. Equally important are the benefits of labor income and private
transfers to the private sector. They have allowed increasing levels of
private consumption, and became the single most important source for the
financing of private investment, especially in the housing sector.
DEVELOPMENT EXPENDITURES
18. The successful mobilization of domestic and foreign resources enabled
a rapid increase in public spending, with emphasis given to development
expenditures. Total public sector spending increased from YD 18.7 million in
1969/70 to YD 170.2 million in 1980; in real terms it more than quadrupled
during that period.
Table 2: PUBLIC EXPENDITURES
(YD million and percent)
1969/70 1976 1977 1978 1979 1980
Total Expenditures (YD m) 18.7 78.4 104.8 121.2 128.1 170.2
of which (in Z)
Development 19 50 55 49 41 44
Education 10 8 8 10 11 10
Social servicesz/ 5 4 4 5 6 6
Defense 44 22 19 25 28 25
Other 22 16 14 11 14 15
1/ Mission estimates.
2/ Health, social and community services.
- 6 -
19. Trends in public expenditure during 1970-77 can be distinguished from
those after 1977. During 1970-77 development expenditures became the most
important item, reflecting the priority given by the Government to the
economic and social development. Their share in total public spending rose
from 19 percent in 1969/70 to 55 percent in 1977; the latter was equivalent to
approximately 25 percent of GNP. The Government also allocated substantial
resources to education and social services which represented about 15 percent
of total public expenditures during the past decade. Defense spending, on the
other hand, was successfully contained; its share in total expenditure
declined from 44 percent in 1969/70 to 25 percent in 1980.
20. Between 1977 and 1980, however, development expenditures declined as
a share of total public spending. Even though development expenditures
increased in absolute terms in 1980 reflecting the special efforts of the
Government to complete ongoing projects, in real terms they were still
substantially lower than 1977. Defense spending, on the other hand increased.
Table 3: DEVELOPMENT AND DEFENSE EXPENDITURES
(YD million)
1977 1978 1979 1980
Development Expenditures 57.3 59.8 52.0 74.0
Defense Expenditures 20.0 30.8 36.1 42.7
21. The composition of development expenditures underlines the
Government's desire to develop the country's productive sectors while at the
same time, strengthening its infrastructure. During the first 5-year plan
(1974-78) more than half of the development budget was spent for agriculture,
fisheries ana inaustry, including geological and mineral surveys.
Infrastructure accounted for 32 percent of the total with the bulk going to
the transportation sector. The remaining 17 percent were invested in social
services, including education and health. During 1980, the pattern of
resource allocation was roughly the same as in the first five-year plan.
Table 4: STRUCTURE OF DEVELOPMENT EXPENDITURES
Five-Year Plan
1974/78 1980
YD m x YD m 2
Agriculture 43.2 22 )17.9 24
Fisheries 25.5 13 )
Industry 32.2 16 18.3 25
bub-total (100.9) (51) (36.2) (49)
Infrastructure 61.7 32 21.0 28
bocial Services 34.2 17 17.5 23
Total Expenditures 195.9 100 74.2 100
-7 -
22. The decline of development expenditures after 1977 was partly due to
the postponement by two years, of the second five-year plan. More important,
however, was the serious labor constraint that developed in the late 1970s.
It was felt particularly strongly in the construction sector, and delayed the
completion of ongoing development projects. There wiere several reasons for
the labor shortage. One was the resumption of labor migration to neighboring
oil countries which followed the easing of government restrictions (see para.
14). Another important reason was the surge in private investment activity,
especially in the housing sector, which was fuelled lby rising labor income and
private transfers which in turn has caused a growing gap in wage rates between
public and private sector employees particularly in construction. Finally,
two additional years of schooling were introduced between 1977 and 1980; this
reduced the number of new entrants into the labor market.
23. The decline in public investment was partly offset by the growing
volume of private investments. Total fixed capital formation, therefore, may
not have declined in absolute terms, although it probably declined as a
percentage of GNP. The increased share of the private sector also affected
the composition of investment. Increasing amounts were spent for housing--a
sector much neglected in the past--while investments in infrastructure and
industry were cut back. The slowdown of some of these investments may well be
temporary, and was perhaps justified in view of difficulties in utilizing
existing capacities (see the following section).
ECONOMIC GROWTH AND MAJOR SECTORAL DEVELOPMENTS
24. The increase in public spending and, more recently, the sharp rise of
labor income and private transfers have had a major impact on the level of
economic activity in PDRY. Gross domestic product at constant factor cost is
estimated to have grown by about 60 percent between 1973 and 1979, or an
average annual rate of 6 percent.!! Gross national product grew at much
higher rates and has probably more than doubled during the period under
consideration. Towards the end of the period, i.e., during 1978 and 1979,
economic expansion apparently slowed down significan,tly, reflecting the
increasing scarcity of labor. But real GNP still rose at an average rate of
approximately 9 percent per annum.
1/ Although PDRY's national accounts are rather tenuous and contain
substantial margins of error they allow a broad assessment of
macro-economic and sector trends.
- 8 -
Table 5: RATES OF ECONOMIC GROWTH
(percent)
As % of GDP Annual Average Growth
1980 1974/79 1978/79
Gross National Product 150 13 9
Gross Domestic Product 100 6 2
of which:
Government Services 23 7 21
Transport 15 12 9
Industry 14 9 3
Construction 13 23 35
Agriculture and Fisheries 13 0 -15
25. The principal domestic growth sectors were government services
(including defense), construction and transport. Activities in these sectors
are largely determined by public expenditures and more recently, by the inflow
of private remittances and transfers. Industrial production also grew at a
fairly rapid pace reflecting the expansion of public sector enterprises.
Agriculture and fisheries, on the other hand, showed virtually no growth
notwithstanding large investments in these sectors (see Table 4). The net
result has been a substantial increase in real incomes both in absolute terms
and on a per capita basis. These incomes are, however, increasingly based on
foreign savings (i.e., private remittances and transfers as well as official
aid) while the contribution of local productive sectors has been declining in
relative terms.
Agriculture and Fisheries
26. Agriculture and fisheries are the two most important productive
sectors for which a local resource base exists. Although a harsh climate
severely limits the area available for cultivation, there is scope for
increasing agricultural output through higher yields and by substituting cash
crops for subsistence agriculture. Since the early 1970s the Government has
invested about YD 80 million in this sector, mostly financed with foreign
assistance, including credits from the International Development Association.
The bulk of these investments went into irrigation schemes, land improvement,
machinery and equipment. In addition, extension services were strengthened
and increasing amounts of fertilizer, pesticides and other production inputs
were made available to state farms and cooperatives.
27. Unfortunately, the returns on these projects appear to have been less
than expected. While the production of vegetables and some fruits has been
increasing since the mid-1970s other major crops such as cotton, dates and
cereals appear to have been declining. The constant price value of total crop
production appears to have stagnated, and little gains have been achieved in
livestock production. However, since an increasing amount of produce is being
marketed directly, the output statistics may increasingly understate the level
of production and thus the performance of the agriculture sector.
- 9 -
Table 6: OUTPUT OF MAIN CROPS
(thousand tons)
1975 1980
Cotton 11 5
Wheat 10 8
Other Cereals 25 20
Dates 20 8
Other Fruits 19 23
Vegetables 20 25
The past shortfalls have been caused by a variety of factors such as
imposition of delivery quotas and inadequate production incentives at the farm
level; inexperienced farm managers; shortage of groundwater resources; poor
maintenance of farm machinery; inefficient management of cooperatives and
state farms and more recently, seasonal labor shortages.
28. The fisheries sector has gone through a similar experience although
here the unexploited resource base is much larger than in agriculture. In
developing the sector the Government has followed a three-pronged approach.
First, it has endeavored to support small-scale coastal fishing through
cooperatives. Second, the public sector acquired a mcdern deep-sea fishing
fleet which in 1980 included 18 vessels. Third, foreign companies were
allowed to fish either under concession agreements (Japan) or in joint
ventures with the public sector (USSR). About YD 35 million have been
invested in the fishing industry (largely in the public sector) mostly to buy
modern boats and fishing gear, and to improve shore facilities. As in
agriculture, these investments were largely foreign financed.
29. However, as the following table shows, the production gains of
cooperatives have been small so far. The catch of the! public sector fleet has
actually been declining and the boats are presently operating at a fraction of
their capacity. Only foreign companies and joint ventures have been able to
increase their production significantly. The principal constraints to
domestic fish production are lack of transport and marketing facilities,
including refrigeration (cooperatives), inefficient matnagement, lack of
incentives and poor maintenance (public sector).
Table 7: FISH CATCHES
(thousand tons)
1976 1978 1980
Cooperatives 33 26 35
Public bector 14 12 12
Joint ventures 3 2 5
Foreign companies 14 9 22
Private Sector n.a. 15 15
- 10 -
30. Starting in 1978 the Government has changed some of its policies to
overcome present production constraints in agriculture and fishing. Above
all, it has increased producer prices significantly (see Annex tables 7.7 and
7.8) which not only compensate for higher cost but also offer larger profit
margins. In addition, farmers and fishermen are now allowed to sell part of
their output in the open market at even more attractive prices. The
management of the public fishing sector has been changed and wages have been
linked to actual production thus providing productivity incentives. The price
and marketing policy changes since 1978 have given an incentive to fishing
cooperatives to increase the catch. In 1980 fish was once again readily
available in the local markets and fishermen who left the trade are applying
to rejoin the cooperatives in increasing numbers. Further policy changes are
under consideration.
Manufacturing
31. The manufacturing sector in PDRY is relatively small, representing
about 15 percent of GDP and employing approximately 12,000 workers. In
addition, some 15-20 thousand people are engaged in small-scale industries and
hanaicrafts. The major sub-sectors are petroleum refining, food processing,
textiles as well as sundry minor consumer goods industries. This structure is
the result of historical factors as well as of investments undertaken since
inaependence. Changing conditions within the country and abroad have,
however, affected the economic viability of several enterprises.
32. A prominent example is the refinery in Aden which is by far PDRY's
largest industrial enterprise (1,700 employees). The refinery was
commissioned by British Petroleum in 1954 and served mainly to provide
bunkering oil for ships passing through the port of Aden. The closure of the
buez Canal in 1967 caused a drastic decline in demand for the refinery's
output which recovered only partly after the Canal's reopening in 1975. The
refinery was transferred by mutual consent to the Government in 1977 and has
since been operated as a public sector enterprise. Only about 30-40 percent
of the refinery's technical capacity (8 million tons) is presently used.
Operating costs are high and are not being covered by processing fees. Much
ot the installed equipment is old and technologically outdated. The
Government is studying the feasibility of a number of schemes to upgrade the
refinery.
33. Other industrial sub-sectors have been affected by shortfalls in the
supply of domestic raw materials. This has been a problem especially with
fish processing where substantial capacities were installed in the 1970s which
are now used only fractionally. The decline in cotton production has caused a
reduction in the capacity utilization of the plants for vegetable oil and oil
cakes as well as the spinning and weaving factory near Aden. The tomato paste
factory appears to be in a similar difficulty. Besides domestic supply
constraints the manufacturing sector has experienced other problems. The more
important ones are low labor productivity, poor marketing, weak financial and
- 11 -
management control systems, shortage of skilled labor, low product quality,
poor maintenance of machinery and equipment, and inefiicient distribution
systems.
34. As a result of these difficulties, the rate of growth of
manufacturing production in PDRY has slowed down perceptibly in the last few
years. This development has mostly affected public sector corporations.
Private companies which represent about one fourth of total industrial output,
have generally fared better suggesting greater efficiency. A recent Bank
mission has reviewed the manufacturing and construction sectors, and has
presented its findings to the Government.
Energy
35. PDRY has no known commercial energy resources (petroleum, gas, coal
or hydro). It has only traditional fuels such as firewood, animal dung or
vegetable waste. The geological conditions of the country indicate potential
for hyarocarbon deposits. Oil exploration activities have been carried out
for some time with the assistance of foreign firms but so far no commercial
quantities have been discovered. Geological surveys to determine the
potential for minerals including coal, are under way. There is almost
unlimited potential for solar energy in the long run.
36. Petroleum accounts for over 90 percent of PDRY's energy consumption,
all of which is imported. Per capita consumption levels are relatively low,
about six percent of the average consumption of industrialized countries.
Intormation on the growth of energy demand is contradictory. Official data
report an increase in the consumption of gasoline and diesel oil by 3 percent
p.a. since 1976, and of fuel oil by 3-1/2 percent (see Appendix table 8.3).
Information on the two principal consumers, i.e., traLnsport and electricity
which account for over two thirds of energy demand, suggests higher rates of
growth. Thus, the number of registered vehicles increased by some 13 percent
p.a. in recent years, while electricity consumption grew by 7 percent p.a.
The Government indicates that consumers in PDRY have become more fuel
etticient, partly because of rising domestic fuel prices. But some of the
aifference could also be explained by incomplete reporting of total energy
supplies.
37. The Government continues vigorously its search for domestic energy
resources. Recognizing that it has neither the financial nor the technical
resources to undertake intensive oil exploration on its own, it has issued
legislation to permit the participation of foreign companies through
production sharing or joint venture agreements. On this basis a Soviet Petrol
Company and AGIP (the Italian National Oil Company) are now active in the
eastern part of the country and offshore. Exploratory wells drilled by AGIP
encountered encouraging signs of oil and gas and exploration is continuing.
In addition, an IDA project approved in June 1980, slupports the Government's
search for oil and gas and assists it in strengthening the planning and
management of the petroleum sub-sector.
- 12 -
Social bervices
38. PDRY has a relatively small population estimated at 1.9 million in
1980 or less than six persons per square kilometer. The majority of the
people (approximately two thirds) live in rural areas while Aden, the nation's
capital and only major city, houses approximately 15 percent of the total.
Population growth is assumed by the Government to be about 2.6 percent per
annum. There is presently no active family planning program in PDRY.
39. The economically active labor force - excluding women who are part
time employed in agriculture - is estimated to have been 410,000 in 1980. Not
surprisingly given the country's stage of development, over 40 percent were
employed in agriculture and fishing. Employment in public services was also
rather high (21 percent) reflecting the rapid expansion of the public sector
during the past decade. Other major sectors are industry, construction, trade
and transport, each of them accounting for approximately 7 to 9 percent of the
labor force.
Table 8: LABOR FORCE BY SECTOR, 19801!
(thousands)
1980
Agriculture and fisheries 180
Public Services 86
Industry 35
Construction 34
Trade, hotels, etc. 37
Transport and communications 29
Others 9
Total Active Labor Force 410
1/ Mission estimate
40. The above figures exclude migrants who live mostly in neighboring
oil producing countries. For 1980 their total number has been estimated at
210,000 people. As the majority of the migrants are men who leave their
dependents at home, the number of economically active Yemenis abroad is
probably equal to one half of the domestic labor force. This represents a
very large drain on PDRY's human resources, especially since the share of
semi-skilled and skilled workers is relatively high among emigrants.
Moreover, the export of labor yields high financial returns in terms of
labor income and private transfers which helps to sustain economic activity
in PDRY. On balance, therefore, the net benefits of emigration for PDRY's
economy are very substantial. This is recognized by the Government
which--as was mentioned before--tolerates emigration and encourages the
inflow of remittances and transfers.
- 13 -
41. The technical skills of PDRY's labor force ar-e still very low. The
Government therefore quite correctly gives high priority to education and
training. Student enrollment in primary and preparatory schools increased by
over 70 percent during the 1970s and now represents approximately three
quarters of the respective age groups. The number of students in secondary
schools and colleges increased seven times reaching some 18,000 and 3,000,
respectively in 1979/80. Enrollment in technical institutes, agricultural and
commercial schools remains very low, however, and is completely inadequate for
the country's needs. The Government also launched an adult literacy program
which reachea impressive proportions in the mid-1970s 'but has since slowed
down. PDRY receives substantial bilaterial and multilateral support
(including from IDA) for its education and training program.
Table 9; EDUCATION INDICATORS
Student Enrollment (1,000)
1970/71 1975/76 1979/80
Primary and Preparatory 148 238 253
becondary schools 3 10 18
Higher education 0.2 1.3 3.4
Technical schools 0.3 0.7 n.a.
Literacy Program 2 86 15
42. The Government's efforts in the field of health have been
significant since 1973. Available major health indicators show that at the
ena of the first five year plan period, i.e., 1978, th(ere were 310
physicians in PDRY (one physician for 5,967 inhabitants) as compared to 136
in 1973. Health facilities in 1978 included 24 hospitals with 2,134 beds,
22 health centers with 275 beds and 237 health units. Preventive medicine
tacilities have been provided in all Governorates. Despite limited
resources, a preventive program against cholera, smallipox and malaria has
been carried out fairly efficiently.
43. Despite these efforts, health conditions in PDRY remain poor
measured in terms of life expectancy at birth, morbidity and mortality
levels. The life expectancy at birth is still only 46 years; crude death
rate is about 16 per thousand; the infant mortality rate is 152 per 1,000
live births and the maternal mortality is 10 per 10,001) births. Factors
influencing poor health status include poor environmental conditions,
inadequate health knowledge and practices, lack of clean and safe water,
inadequate health services coverage including inadequate protection from
communicable diseases. The nutritional status of children under one year is
low and is a major factor contributing to the high mortality rate in this
group. Malaria is a leading cause of morbidity.
- 14 -
44. During the second five year plan, the Government intends to
strengthen the health system further with emphasis on Primary Health Care.
The Plan also calls for the construction of five new health centers, 51 health
units and eight outpatient clinics. It is also planned during this plan
period to modernize the existing health facilities, improve their
administration and reorganize the Ministry of Health to enable it to provide
better health services. Facilities at the existing hospitals are to be
improved through additional equipment.
PRODUCTION FACILITIES BY OWNERSHIP
45. Private sector has played quite an important role in the development
process of PDRY. At present it accounts for almost half of the nation's
production of goods and services (excluding government services). Private
enterprise can be found in almost every sector and is strongly represented by
agriculture, construction, trade and transport. In agriculture there are
still many private farmers who are usually members of service cooperatives. A
few medium-sized private construction firms compete with larger public
corporations for government contracts, while a large number of small private
contractors carry out most of the private house construction. The bulk of
retail trade and a large part of wholesale trade are in private hands. Most
passenger cars and trucks are privately owned and are often used for
transporting passengers and freight against pay.
Table 10: PRODUCTION BY OWNERSHIP, 1980
(percent)
Private Public Cooperative
Agriculture 52 16 32
Fisheries 16 72 12
Industry 27 73 0
Construction 57 43 n.a.
Transport 43 56 n.a.
Trade 63 30 7
Total 45 49 6
46. Cooperation between public and private capital is encouraged by the
Government in some areas such as light industries, and a limited number of
joint ventures are now active. Foreign investors have been invited to
participate in oil exploration and the fishing industry.
47. Private sector activity continues to be regulated by the
Government. Private farmers belonging to service cooperatives, for example,
have been guided by cropping patterns prescribed by the Ministry of
Agriculture, and have had to sell most of their crops to the state. Prices
- 15 -
have been generally controlled by the authorities as are supplies of raw
materials and other production inputs. However recently production and
marketing of agricultural crops and fish has been somewhat liberalized
permitting a substantial portion of output to be sold directly by the
producers and the cooperatives on the free market. Private enterprise has
generally operated efficiently and has demonstrated flexibility in the face
of changing market conditions.
48. The experience of the 1970s suggests that the private sector could
indeed play a larger role in the future development of the country. There
are many opportunities for private enterprise not only in the service
sectors (trade, transport, tourism) but also in manufacturing, construction,
agriculture and fishing. Most private sector activities would be largely
self-financing, and would require little support from the state. Indeed, a
revival of the private sector is likely to attract substantial foreign
capital mainly from Yemenis who are presently living abroad. A new
Investment Promotion Law has recently been promulgated providing incentives
to private investors. In order to encourage private investors to
participate in productive investment, the Investment Promotion Law provides
the following concessions and facilities:
- protection to local products
- income tax exemption up to first eight years
- low electricity tariffs
- exemption of import duties for capital investment, spare parts
and raw materials imports
- access to credit facilities
In the field of agriculture and fisheries, the private sector will have
access to credit, extension services and improved seeds and fertilizer
facilities that are usually provided by the Government and state farms and
cooperatives.
EXTERNAL BALANCES
49. PDRY's balance of payments has strengthened considerably in the
second half of the 1970s. This was largely the result of a rapid increase
in foreign exchange earnings which rose from $40 million in 1975 to $228
million in 1980. By far the most important item in this context were factor
incomes (mostly labor income) which in 1980 accounted for almost 80% of
total exchange earnings. Commodity exports, on the other hand, remained
insignificant reflecting the country's poor resource endowment and the
declining share of commodity producing sectors in the economy, especially
agriculture and fisheries.
- 16 -
Table 11: SUMMARY BALANCE OF PAYMENTS
(US$ million)
1975 1978 1979 1980
Foreign exchange earnings 40 145 176 228
of which:
Factor incomes, net (18) (111) (142) (176)
Other services, net (14) (17) (14) (14)
Commodity exports (8) (17) (20) (38)
Official capital inflows 41 130 82 159
of which:
Grants (10) (36) (23) (83)
Loans (net) (31) (94) (59) (76)
Private transfers 42 155 182 201
Other capital (incl. E&O) 42 45 -8 86
Total import capacity 165 475 433 674
Commodity imports -178 -386 -411 -650
Change in reserves 13 -89 -22 -24
(- = increase)
50. Official capital inflows also increased substantially, from $41
million in 1975 to $159 million in 1980. About one-third of it was provided
in the form of grants while the other two-thirds were given as loans. The
share of official capital inflows in total foreign exchange available,
however, declined almost continuously; in 1980 it was 41 percent compared with
50 percent in 1975. Private transfers (from migrants permanently resident
abroad) increased almost five fold between 1975 and 1980.
51. Accounting for errors and omissions PDRY's total import capacity rose
sharply allowing not only a large increase in commodity imports but also a
strengthening of foreign exchange reserves. The latter more than quadrupled
between 1975 and 1980 reaching an amount of $238 million (excluding gold) or
the equivalent of 4-5 months' imports.
- 17 -
52. Commodity imports rose from $178 million in 1975 to $650 million in
1980. Accounting for world inflation they increased by about two thirds in
real terms. The increase was accompanied by some structural changes.
Imports of foodstuffs remained the principal category but their share in
total imports appears to have declined over time. The share of petroleum
imports, on the other hand, has risen reflecting the exceptionally sharp
increase in international prices for crude oil and its products. For 1980
the cost of fuel imports were estimated at $150 million, equal to 23 percent
of total imports. Capital goods imports reached a peak in 1977 and declined
thereafter both in nominal and real terms. This would be consistent with
recent trends in public investment (see para. 22).
Table 12: COMPOSITION OF COMMODITY IMPORTS
(percent)
1975 1977 1979 1980
Total imports 100 100 100 100
of which:
Foodstuffs 35 24 28 31
Petroleum products 19 18 22 23
Capital goods 17 35 20 20
Others 29 23 30 26
53. PDRY's external debt (excluding undisbursed amounts) stood at $499
million at the end of 1980. Of this $163 million was owed to multilateral
agencies, mostly Arab Funds and IDA. Disbursed bilateral loans amounted to
$336 million, the major creditors being the USSR ($153 million), China ($84
million), other socialist countries ($64 million) and Arab countries ($35
million).
54. The terms of the outstanding loans vary considerably. Multilateral
credits are extremely concessionary and place a small burden on the country's
debt service capacity. Many bilateral loans, on the other hand, are more in
the nature of suppliers' credits. Moreover, while these credits are usually
denominated in nonconvertible currencies, service payments will have to be
maae in convertible currencies.
55. Debt service payments in 1980 were still rather low, i.e.,
$15 million or the equivalent of 4.4 percent of total foreign exchange
earnings. Service payments are, however, expected to rise sharply in the next
few years adding a significant burden to the balance of payments. No
estimates of future debt payments have been provided to the mission.
- 18 -
SECOND FIVE-YEAR PLAN, 1981-85
56. PDRY's second five-year plan was approved by the People's Supreme
Council in May 1981. The plan was originally envisaged to cover the 1979--83
period.l/ However, following a recommendation by the Council on Arab
Economic Unity asking Arab countries to synchronize their five-year
development plans, the second five-year plan has been rescheduled for
1981-85. The plan's basic objectives are similar to those of the first
five-year plan (1974-78), i.e., to (a) satisfy the basic needs of the
population for food, essential consumer goods, shelter, employment, health
care and other social services; (b) develop the production capacity of the
economy, especially in industry, agriculture and fisheries; (c) strengthen
the physical infrastructure; (d) explore the country's mineral resources,
especially fuels; (e) raise education standards and technical skills of the
labor force; and (f) increase exports of domestic products. As in the past,
these objectives are to be achieved mainly through a further expansion of the
public and cooperative sectors whereas the role of the private sector is to be
reduced.
57. The quantitative plan targets are ambitious. Total development
expenditures are to reach YD 508 million or the equivalent of almost $1.5
billion. In real terms that would be approximately twice as much as has
actually been spent during the preceding five-year period. To overcome recent
constraints in the construction industry the plan proposes that 43 percent of
the civil works contracts be given to foreign firms. Another 50 percent is to
be carried out by public enterprises while only 7 percent of the contracts
would be carried out by the private sector. The large volume of construction
to be undertaken by the public sector clearly exceeds the present capacity of
state owned construction firms.
1/ bee bpecial Economic Report, The Second Five-Year Plan (1979-83), January
12, 1980, No.2683-YDR.
- 19 -
Table 13: DEVELOPMENT EXPENDITURES, 1981-85
(YD million, constant 1980 prices)
First Five-Year
Sectors YD million % Plan, x
Industry 133 26 16
Electric power (69) (14) n.a.
Manufacturing (36) (6) n.a.
Minerals (28) (5) n.a.
Agriculture 60 12 22
Fisheries 27 5 13
Sub-total 220) 43 51
Transport 91 18 n.a.
Water supply 21 4 n.a.
Traae 21 4 n.a.
Sub-total 133 26 32
Education, health 41 8 n.a.
Housing 9( 18 n.a.
Other services 24 51 n.a.
Sub-total 155 31 17
Total Expenditures 508 100 100
58. The sectoral allocation of investment shows significant structural
change if compared with actual expenditures during the first five-year plan.
The share of industry is to increase from 16 percent. of the total to 26
percent while the shares of agriculture and fisheries are to be reduced from
35 percent to 17 percent, respectively. The new plan also proposes large
investments in public housing (18 percent) which was insignificant during the
past. On the other hand, investments in physical infrastructure (transport,
water supply, trade) are to decline from 32 percent to 26 percent of the
total. This shift in sectoral allocations reflects an appropriate response to
PDRY's evolving economic and social needs.
59. The major industrial projects will be in the power sector.
Production of electric power is to double during the five-year period. In
manufacturing, a number of existing factories are to be modernized and
expanded. The principal new project would be a cement plant. Continued
investments will also be made in mineral exploration. Investments in the
agricultural sector are concentrated on irrigation and land reclamation
whereas the fisheries sector will continue to invest: in shore facilities,
boats and fishing gear with the emphasis still on the industrial fleet. The
plan further proposes to pave more than 600 km of roads, and to improve
another 150 km. Port and airport facilities will be expanded and upgraded.
Investments in social sectors are to continue on a substantial scale,
especially for education and health.
- 20 -
60. The plan's production targets are summarized in the table below. It
is stated that these objectives in part will be reached through increased
labor productivity. Education and training programs are to provide the
necessary skills.
Table 14; PRODUCTION TARGETS, 1985
(Percent)
1985 over Annual Annual Growth
1980 Growth Rate 1974-79
Gross national product 165 10-1/2 13
Gross production 163 10 6
of which:
Industry 182 13 9
Agriculture 152 9 )
Fisheries 212 16 )�
Transport 154 9 12
61. These targets look quite ambitious in the light of actual
developments during the last few years. As the above table shows, domestic
production growth is planned to accelerate sharply, especially in agriculture
and fisheries. Labor shortages are likely to continue, especially in the
skilled categories which will constrain project implementation. Even more
important, however, is the fact that the plan does not envisage a change in
the present organization of economic planning and management. It also fails
to spell out effective changes in productivity incentives which are urgently
required.
62. Given the uncertainties on the production side, the plan's export
targets also appear to be ambitious. Commodity exports - mostly fish and
agricultural products - are to reach $90 million in 1985 which would be a
little more than three times as much as was actually exported in 1980 ($27
million). Import requirements are estimated to increase by about 55 percent
between 1980 and 1985. Among others this reflects the growing demand for fuel
by the power and transport sectors. Actual import growth may be less if
investments lag behind schedule, and economic growth turns out to be lower
than planned. Still, the foreign trade deficit can be expected to grow
substantially over the medium run. To some extent these deficits will be
financed through larger private transfers and remittances. But the inflow of
such funds is likely to grow at a slower pace than in the past reflecting
increasing saturation of labor markets in the oil producing countries.
63. Approximately 70 percent of the planned development expenditures
(i.e., over $1 billion) are expected to be financed through foreign loans.
The bulk of these funds is to come from socialist countries. If the terms of
such loans were to remain similar to those of the past (see para. 51) this
could lead to a substantial increase in PDRY's debt service burden. The
Government is aware of this problem and taking it into account has arranged
for a restructuring of its foreign debt.
- 21 -
STATISTICAL APPENDIX
Table
No.
1.1 Population Estimates
2.1 Gross Domestic Product at current prices
2.2 Gross Domestic Product at constant prices
3.1 Balance of Payments ($ million)
3.2 Balance of Payments (YD million)
3.3 Composition of Exports and Re-exports
3.4 Composition of Imports
3.5 Services, Receipts and Payments
4.1 External Public Debt Outstanding as of December 31, 1980
5.1 Consolidated Public Sector Finances
5.2 Central Government Ordinary Revenues
5.3 Central Government Ordinary Expenditures
5.4 Public Sector Development Expenditures
5.5 Financing of Development Expenditures
7.1 Output of Main Crops
7.2 Cultivated Area of State and Cooperatives by Governorates
7.3 Number of Wells Drilled by Governorates
7.4 Egg and Poultry Meat Production by the State Poultry Corporation
7.5 Production of Fish by Sector
7.6 Production and Exports of Fish
7.7 Farmgate Prices of Selected Fruits and Vegetables
7.8 Fish Prices
8.1 Production of Main Industries
8.2 Production of the Aden Refinery
8.3 Consumption of Petroleum Products
8.4 Number of Registered Vehicles by Type
9.1 Enrollments in Primary, Preparatory and Secondary Schools
9.2 Statistical Indicators on Teachers Training and Technical Education
9.3 Higher Education Enrollment and Faculty
9.4 Literacy Programs
10.1 Cost of Living and Wholesale Price Indices for Aden
- 22 -
Table 1.1: POPULATION ESTIMATES
(Thousands)
1973 1/ 1978 1980
Total Population 1,590 1,808 1,903
of which;
Urban 529 n.a. n.a.
Rural 905 n.a. n.a.
Nomad 156 n.a. n.a.
Male 787 895 942
Female 803 913 961
Population by Governorates
Aden (First) 291 331 348
Lahej (Second) 274 312 328
Abyan (Third) 311 354 373
Shabwa (Fourth) 162 184 194
Hadramout (Fifth) 491 558 588
El-Mahra (Sixth) 61 69 73
Memo Item: UN estimates
of total population. 1,590 1,850 1,970
1/ Census year.
bource: Central Statistical Organization.
- 23 -
Table 2.1: GROSS DOMESTIC PRODUCT AT CURRENT PRICES
(In millions of Yemeni dinars)
1973 1975 1976 1977 1978 1979 19801/
Conmooity bectors 29.6 35.1 46.4 59.4 68.2 70.7 80.2
Agriculture & Fisheries 16.4 17.7 24.5 25.4 19.7 23.4 25.6
Inaustry 2/ 8.9 8.7 11.5 18.7 22.9 23.3 27.8
Construction 4.3 8.7 10.4 15.3 25.6 24.0 26.8
Distribution sectors 22.4 29.3 37.7 47.6 48.2 62.6 68.1
Transport &
Communication 6.0 9.5 13.5 18.3 21.3 27.5 30.0
Trace, Hotels, Catering 15.1 19.2 23.0 27.5 24.3 30.6 32.2
Finance 1.3 0.6 1.2 1.8 2.6 4.5 5.9
bervices bector 23.6 24.8 28.3 33.0 34.6 42.9 48.3
Government 18.6 18.3 21.5 25.7 31.0 39.4 44.5
Housing 2.4 2.5 2.6 2.8 2.2 2.0 2.0
Other 2.6 4.0 4.2 4.5 1.4 1.5 1.8
GbP at tactor cost 75.6 89.2 112.4 140.0 151.0 176.2 196.6
Net lIroirect Taxes 8.5 11.6 15.2 20.2 25.2 29.9 36.8
GDP at Market Prices 84.1 100.8 127.6 160.2 176.2 206.1 233.4
Net tactor income 12.9 6.3 15.1 26.4 38.4 48.9 60.8
GNP at Market Prices 97.0 107.1 142.7 186.6 214.6 255.0 294.2
1/ Preliminary.
2/ Incluces electricity, water, mining and petroleum.
bource; Gentral statistical organization.
- 24 -
Table 2.2: GROSS DOMESTIC PRODUCT AT CONSTANT PRICES
(In millions of Yemeni dinars)
1973 1975 1976 1977 1978 1979
Commodity Sectors 34.1 38.8 47.0 52.7 57.1 57.6
Agriculture 13.0 14.8 14.4 14.2 13.1 14.5
Fisheries 5.7 6.2 11.3 10.5 3.9 4.1
Industry 1- 10.3 9.9 12.5 15.9 18.5 17.0
Construction 5.1 7.9 8.8 12.1 21.6 22.0
Distribution Sectors 35.9 33.0 40.7 52.9 43.4 46.0
Transport &
Communication 9.7 9.2 13.2 16.2 17.7 19.1
Trade, Hotels, Catering 21.7 20.6 24.0 26.9 22.0 21.7
Finance 4.5 3.2 3.5 9.8 3.7 5.2
Services Sector 26.0 22.9 25.0 26.8 30.2 35.0
Government 22.8 18.8 20.9 22.8 29.0 33.8
Housing 3.0 3.6 3.6 3.5 1.2 1.2
Other 0.2 0.5 0.5 0.5 - -
GDP at factor cost 96.0 94.7 112.7 132.4 130.7 138.6
Net Indirect Taxes 7.4 8.8 11.1 16.1 19.8 25.7
GDP at Market Prices 103.4 103.5 123.8 148.5 150.5 164.3
1/ Includes electricity, water, mining and petroleum.
Source: Ministry of Planning
- 25 -
Table 3.1: BALANCE OF PAYMENTS
(In millions of US dollars)
1973 1974 1975 1976 1977 1978 1979 1980
Exports!/ 13.9 7.8 8.4 25.5 24.1 17.1 19.7 38.3
ke-exports (11.0) (9.6) (11.3) (18.9) (22.9) (22.3) (24.7) (21.2)
Imports!/ -119.8 -190.2 -178.6 -267.7 -365.1 -386.3 -410.4 -649.9
Trace Deticit -105.9 -182.4 -170.2 -242.2 -341.0 -369.2 -390.7 -611.6
Non-Factor
bervices, net 6.5 22.0 14.2 19.7 9.9 16.8 13.9 13.9
Eactor bervices, net 37.4 48.1 18.3 43.8 76.6 111.3 141.8 176.3
Labor Income (33.4) (41.2) (15.4) (37.4) (69.3) (103.2) (131.1) (146.5)
Investment Income (4.0) (6.9) (2.9) (6.4) (7.3) (8.1) (10.7) (29.8)
Current A/c Deticit -52.0 -112.3 -137.7 -178.7 -254.5 -241.1 -235.0 -421.4
Transters 0.3 0.9 52.8 125.0 174.3 191.2 205.3 284.5
Ofticial (0.3) (0.9) (10.2) (46.4) (55.1) (36.3) (23.2) (82.9)
Private 2/ (0.3) (0.9) (42.6) (78.6) (119.2) (154.9) (182.1) (201.6)
Otticial M<
Capital, net 24.7 47.9 31.3 58.0 70.1 94.0 58.9 76.3
Gross Disbursement (24.7) (48.2) (31.9) (59.5) (71.6) (95.1) (63.5) (85.6)
kepayments (-) (-0.3) (-0.6) (-1.5) (-1.5) (-1.1) (-4.6) (-9.3)
IMF Credit, net 11.3 17.1 17.4 15.4 - -6.4 -17.7 -11.6
bDk Allocations - - - - - - 5.8 4.9
Misc. Capital
(incluoing E&O) 23.0 37.9 23.5 7.8 28.1 50.7 4.4 91.6
Change in Reserves
(- = increase) -7.3 8.5 12.8 -27.5 -17.8 -88.6 -21.8 -24.3
Memo Item:
Gross Otticial Reserves 75.3 66.8 54.0 81.5 99.3 187.9 209.7 234.0
1/ Net of re-exports.
2/ beginning 1975, the breakdown of labor income and private transfers is
based on Mission estimates.
bource: IMF ana Bank of Yemen
- 26 -
Table 3.2: BALANCE OF PAYMENTS
(In millions of Yemini dinars)
1973 1974 1975 1976 1977 1978 1979 1980
Exports.!/ 4.8 2.7 2.9 8.8 8.3 5.9 6.8 13.2
he-exports (3.8) (3.3) (3.0) (6.5) (7.9) (7.7) (8.5) (7.3)
lmports 1/ -41.3 -65.6 -61.6 -92.3 -125.9 -133.2 -141.5 -224.1
lrace Deticit -36.5 -62.9 -58.7 -83.5 -117.6 -127.3 -134.7 -210.9
Non-Factor
bervices, net 5.7 7.6 4.9 6.8 3.4 5.8 4.8 4.8
Factor bervices, net 12.9 16.6 6.3 15.1 26.4 38.9 48.9 60.8
Labor Income (11.5) (14.2) (5.3) (12.9) (23.9) (35.6) (45.2) (50.5)
Investment Income (1.4) (2.4) (1.0) (2.2) (2.5) (2.8) (3.7) (10.3)
Current A/c Deticit -17.9 -34.7 -47.5 -61.6 -87.8 -83.1 -81.0 -145.3
Transters 0.1 0.3 18.2 43.1 60.1 65.9 70.8 98.1
Utticial (0.1) (0.3) (3.5) (16.0) (19.0) (12.5) (8.0) (28.6)
Private 2/ (-) (-) (14.7) (27.1) (41.1) (53.4) (62.8) (69.5)
Utticiai M&L'1
Capital, net 8.5 16.5 10.8 20.0 24.2 32.4 20.3 26.3
Gross Disbursement (8.5) (16.6) (11.0) (20.5) (24.7) (32.8) (21.9) (29.5)
hepayments (-) (-0.1) (-0.2) (-0.5) (-0.5) (-0.4) (-1.6) (-3.2)
1IF Creolt, net 3.9 5.9 6.0 5.3 -- -2.2 -6.1 -4.0
bDkh Allocations -- -- -- -- -- -- 2.0 1.7
Misc. Capital
(inclucing E&U) 7.9 13.0 8.1 2.7 9.7 17.5 1.5 31.6
Change in heserves
(- = increase) -2.5 3.0 4.4 -9.5 -6.2 -30.5 -7.5 -8.4
Memo ltem:
Gross Utticial Reserves 26.0 23.0 18.6 28.1 34.3 64.8 72.3 80.7
1/ Net ot re-exports.
2/ beginning 1975, the breakdown of labor income and private transfers is
basea on lission estimates.
bource: IMF ana bank of Yemen
- 27 -
Table 3.3: COMPOSITION OF EXPORTS AND) RE-EXPORTS
(In thousands of Yemeni dinars)
1973 1974 1975 1976 1977 1978 1979 1980
Fooa & live animals 2 ,8577 2, 2,592 5,640 7,527 3,627 5,558 7,646
Driea tish 225 241 182 123 23 49 9 --
Fresh tish 1,382 1,997 1,472 3,907 5,844 2,074 3,412 6,387
Uottee 495 380 669 1,170 1,209 591 1,256 341
Other 475 214 269 440 451 913 881 918
beverages & tobacco 57 38 65 112 183 520 598 957
Cruae materials
(except tuel) 3,044 970 1,021 4,301 1,963 2,416 1,916 4,321
Hiaes & skins 328 289 226 222 179 226 180 151
Cotton lincers
& seeds 2,139 231 472 3,565 1,263 1,426 1,024 3,083
balt 117 181 52 99 193 358 189 191
hetal scrap 108 73 15 -- -- -- 79 141
Other 352 196 256 415 328 406 444 755
Petroleum proaucts 131 54 24 5,262 5,807 5,227 4,574 --
Animal & veg. oil 2 = 6 34 8 61 39 40
Chemicals 57 40 24 28 4 17 16 33
Manutacturec goods 561 250 75 39 18 507 171 422
lextiles 383 139 13 3 -- 41 64 108
Other 178 111 62 36 18 466 107 314
Mach'ery & transp. equip. 77 32 21 6 230 28 11 32
Passenger cars 13 6 5 2 -- -- --
lrucks 3 -- -- -- 217 -- -- --
Uther 61 26 16 4 13 28 11 32
Misc. manut. articles 273 170 59 70 30 282 269 219
Clothing 191 89 22 13 11 166 233 152
Footwear 8 2 1 -- -- 11 20 --
Other 74 79 36 57 19 105 16 67
Unclassitiea items 104 -- 19 4 3 44 -- --
IOTAL 6,883 4,386 3,906 15,496 15,773 12,195 13,152 13,670
hemo ILem:
he-exports 2,095 1,088 1,050 6,786
looa & beverages 678 376 732 1,116
Inoustrial supplies 782 487 229 346
Consumer goods 340 148 28 9
Other 295 77 61 5,265
bource: IMF and Central btatistLical Organization.
- 28 -
Table 3.4: COMPOSITION OF IMPORTS
(In thousand of Yemeni dinars)
1973 1974 1975 1976 1977 1978 1979 1980
Fooa & live animals 16,709 25,307 21,940 22,235 28,568 46,016 43,395 70,435
Live animals 790 552 820 1,504 1,862 1,850 2,663 3,201
Ghee 775 1,833 1,912 1,610 3,542 5,350 4,317 4,318
Wheat & wheat tlour 3,566 7,250 3,606 5,398 6,051 6,993 3,204 18,906
Rice 2,401 5,841 4,673 3,072 3,315 6,957 8,748 4,043
ketinea sugar 2,685 4,291 4,757 2,349 2,882 2,956 2,575 10,862
Cottee 261 355 794 1,277 502 663 1,263 151
Tea 1,343 673 923 1,531 2,223 3,178 1,610 2,158
bpices 574 567 472 457 966 1,196 909 574
Milk powder -- -- -- 2,009 2,767 6,159 9,304 9,470
Other 4,314 3,945 3,983 3,028 4,458 10,714 8,802 16,752
beverages & tobacco 1,118 1,098 955 1,242 1,312 3,213 3,548 5,338
Cruae materials,ineoible,
(except tuel) 1,393 2,591 1,970 2,531 2,928 3,912 5,462 9,537
Hiaes & skins 7 51 47 14 11 -- -- --
besame seeds 829 1,292 666 1,270 553 1,854 2,734 3,450
Wooa 296 914 861 978 1,840 1,719 2,066 5,575
Other 261 334 396 269 524 339 662 512
Petroleum products 3,157 14,428 11,641 21,189 22,082 18,136 34,655 51,920
Animal & veg. oils 328 896 683 730 1,222 1,847 1,612 1,179
chemicals 1,616 2,447 2,785 3,221 3,488 5,951 7,944 8,103
htg. gooas classLtiea
chietly by materials 6,105 8,615 10,602 11,368 15,182 17,854 19,281 25,698
Textiles 2,608 3,016 1,363 1,462 3,428 3,903 4,441 5,006
Cement 410 1,424 959 974 844 1,287 1,821 960
Other 3,087 4,175 8,280 8,932 10,910 12,664 13,019 19,732
Mach. & transp. equip. 2,958 8,257 10,316 20,103 42,231 30,865 31,242 44,267
Machinery 1,263 3,113 4,490 8,689 5,829 17,021 11,372 13,511
Passenger vehicles 222 340 273 1,149 1,977 1,326 4,081 2,967
lrucks 91 1,182 1,324 2,623 10,067 2,069 2,985 3,190
Other 1,382 3,622 4,229 7,642 24,358 10,449 12,804 24,579
Misc. manut. articles 2,598 1,985 1,198 2,393 4,434 6,348 7,577 8,802
Clothing 943 646 288 517 1,480 1,782 2,420 3,405
Footwear 248 200 161 372 364 778 568 304
Other 1,407 1,139 749 1,504 2,590 3,788 4,589 5,093
Unclassitiea items 18 40 54 95 -- -- -- --
Qat -- -- 7 80 -- -- -- --
Other 18 40 47 15 -- -- -- --
TOTAL 36,000 65,664 62,144 85,107 121,329 134,142 154,716 225,259
bource: IMF and Central Statistical Organization.
- 29 -
Table 3.5: SERVICES, RECEIPTS AND ]PAYMENTS
(In millions of Yemeni dinars)
1975 1976 1977 1978 1979 1980
Investment Income, net 1.0 2.2 2.5 2.8 5.2 10.3
Receipts 1.6 3.2 3.5 4.3 7.0 12.0
Payments -.8 -1.0 -1.0 -1.5 -1.8 -1.7
Workers' Remittances2/ net 20.3 41.2 64.7 89.0 108.3 120.4
Receipts 21.4 41.7 66.1 90.0 110.1 122.1
Payments -1.1 -.5 -1.4 -1.0 -1.8 -1.7
Transportation, net 1.2 1.7 2.5 3.7 5.0 5.6
Receipts 2.0 2.5 3.1 4.3 7.9 10.3
Payments -.8 -.8 -.6 -.6 -2.9 -4.7
Other Services, net 4.3 4.3 3.3 5.8 4.1 6.4
kecelpts 6.0 6.6 6.9 10.6 10.3 13.8
Payments -1.7 -2.3 -3.6 -4.8 -6.2 -7.4
Government n.i.e, net -0.5 0.8 -2.4 -3.0 -6.0 -7.2
Receipts 2.6 4.1 4.3 2.0 2.2 2.2
Payments -3.1 -3.3 -6.7 -5.0 -8.2 -9.4
1/ Includes labor income and private transfers.
bource: Central Bank of Yemen.
- 30 -
Table 4;1: EXTERNAL PUBLIC DEBT OUTSTANDING
AS OF DECEMBER 31, 1980
(Million $)
Public Debt Outstanding
Including Undisbursed Disbursed
Multilateral Loans 321.0 162.5
IDA 85.5 35.1
Kuwait Fund 54.7 37.0
Arab Fund 75.8 31.1
Abu Dhabi Fund 25.3 8.9
Islamic Bank 28.3 6.0
OPEC bpecial Fund 12.4 8.4
European Common Market 3.0 -
IMF Trust Fund 36.0 36.0
bilateral Loans 889.1 336.5
USSR 573.3 152.5
China 125.9 83.9
German Democratic Republic 49.1 21.8
Bulgaria 53.8 24.7
Czechoslovakia 29.4 9.6
Hungary 17.4 7.7
Iraq 19.5 19.4
Libya 19.7 16.9
Algeria 1.0 -
United Arab Emirates 30.6 -
Total External Loans 1,240.7 499.0
bource: Bank of Yemen.
- 31 -
Table 5.1: CONSOLIDATED PUBLIC SECTOR FINANCES
(In millions of Yemeni dinars)
1974/75 1975 1/ 1976 1977 1978 1979 1980
Current revenues2/ 23.60 16.82 32.07 43.42 56.01 67.97 107.22
Current expenditures 27.61 25.55 39.15 47.37 61.40 76.16 96.01
Public savings -4.01 -8.73 -7.08 -3.95 -5.39 -8.19 11.21
Development expenditure 19.60 18.90 39.23 57.34 59.75 51.96 74.22
Overall aeficit -23.61 -27.63 -46.31 -61.29 -65.14 -60.15 -63.01
Financed through:
Local banks 10.44 12.48 15.55 18.53 13.68 27.60 18.56
External sources 13.17 15.15 30.76 42.76 51.46 32.55 44.45
1/ April-December.
2/ Ordinary revenue (Table 5.2) plus domestic revenue of Development
Fund and self financing by Public Enterprises (Table 5.5).
bource: Ministry of Finance.
- 32 -
Table 5.2; CENTRAL GOVERNMENT ORDINARY REVENUES
(In thousands of Yemen dinars)
1974/
1975 1975 1/ 1976 1977 1978 1979 1980 2/ 1981 3/
Tax revenue 14,165 11,248 19,685 28,282 33,589 43,036 67,846 65,516
lax on income
& protits 4,873 4,143 7,591 9,036 10,047 12,474 24,098 23,040
Corporations 3,787 3,319 5,569 6,608 7,244 9,267 20,443 18,P27
ot which;
Public sector
entities (2,378) (2,727) (4,600) (5,855) (6,315) (8,204) (19,137) (17,820)
Individuals 253 222 191 396 409 463 549 550
Wages
& salary income 833 602 1,831 2,032 2,394 2,744 3,106 (3,663)
Taxes on gooas
& services 3,070 2,773 4,811 6,569 7,900 9,675 12,180 14,226
Cotton 26 23 146 213 5 204 138 190
Cigarettes 1,221 1,230 2,200 3,345 4,320 4,907 6,126 7,150
Petroleum products 960 661 1,051 1,193 1,100 1,975 2,093 1,780
Fruits & vegetables 101 100 349 381 249 248 275 262
Qat 468 398 662 657 1,033 1,257 1,530 1,700
Other 294 361 403 346 518 484 1,251 540
InaustrLal products -- -- -- 434 675 600 767 2,604
Taxes on international
traae 5,691 3,852 6,355 11,369 14,052 19,187 29,320 26,250
Import duties 5,691 3,852 6,355 11,369 14,052 19,187 29,320 26,250
Other taxeb 532 480 928 1,308 1,590 1,700 2,248 2,000
btamp duties 532 480 928 1,308 1,590 1,700 2,248 2,000
Non-tax revenue 4,301 2,608 6,029 6,607 12,920 11,176 18,170 19,974
Public sec. entrties 1,239 785 2,400 2,190 3,135 4,267 6,339 8,002
ot which:
bank ot Yemen (300) (225) (312) (266) (771) (271) (2,340) (--)
Non-industrial sales
& charges 2,234 1,120 2,766 3,075 8,214 5,522 6,171 8,377
Administrative tees 547 464 619 1,056 1,154 1,072 1,370 1,595
bales ot government
property 280 239 244 286 417 315 4,290 2,000
TOTAL hEVENUEb 18,466 13,856 25,714 34,889 46,509 54,212 86,016 85,490
1/ April-December.
2/ Provisional.
3/ budget Estimates.
bource; Ministry ot Finance.
- 33 -
Table 5.3; CENTRAL GOVERNMENT ORDINARY EXPENDITURES
(In millions of Yemeni dinars)
1974/
1975 1975 1/ 1976 1977 1978 1979 1980 2/ 1981 3/
by Aaministrative &
tunctional category 27.61 25.55 39.15 47.37 6L.40 76.16 96.01 116.83
General Aamin. 5.52 5.38 9.67 11.94 9.66 12.96 19.25 28.68
betense & security 13.19 12.09 17.13 20.03 30.80 36.06 42.71 46.74
Education & guldance 4.49 4.29 6.33 8.21 11.80 14.18 17.49 19.96
health 1.50 1.41 2.24 2.67 3.51 5.13 6.27 6.10
bocial services 0.34 0.31 0.48 0.52 0.53 0.78 1.06 1.83
Community services 0.55 0.47 0.64 1.38 1.35 1.70 2.08 2.09
Economic services 1.76 1.39 2.32 1.97 2.79 3.17 4.11 5.37
Other unallocable
aebt service 0.26 0.21 0.34 0.65 0 96 2.18 3.04 6.06
Economic classit'n. 27.61 25.55 39.15 47.37 61.40 76.16 96.01 116.82
Wages & salaries 15.12 13.40 20.24 24.35 29.78 37.77 50.80 56.08
Materials & supplies 11.42 11.25 16.73 20.60 28.60 30.91 38.78 42.87
Transter payments 1.05 0.89 2.14 2.25 2.57 6.04 10.68 12.87
hepayment ot public
debt--principal 0.02 0.01 0.04 0.17 0.45 1.44 2.20 5.00
Financed trom:
Ordinary revenue 18.47 13.86 25.71 34.89 46.51 54.21 86.01 85.49
bank credlt, net 9.14 9.30 13.44 12.48 14.89 21.95 10.00 31.33
Other -- 2.39 -- -- -- -- --
i/ April-December.
2/ Provisional.
3/ buaget Estimates.
bource: Ministry ot Finance.
- 34 -
Table 5.4; PUBLIC SECTOR DEVELOPMENT EXPENDITURES
(In million of Yemeni dinars)
sector 1974/75 1975 1/ 1976 1977 1978 1979 1980
Agriculture 4.97 4.27 7.87 12.02 14.84 17.99 2/ 17.90 2/
Fisheries 3.04 2.85 8.43 6.54 5.36 -- --
Industry 5.07 4.28 6.81 9.79 8.02 6.80 18.27
Manutacturing (2.58) (2.56) (3.28) (2.26) (3.77) (3.15) (--)
Electric power (2.18) (0.94) (1.31) (1.78) (1.18) (1.02) (--)
Oil & minerals (0.31) (0.78) (2.22) (5.75) (3.07) (2.63) ()
Transport, communi-
catlons & construction 4.67 4.08 10.36 17.29 20.35 15.69 21.0
Water supply 0.11 0.54 0.81 0.45 0.90 1.49 --
Eaucation 0.44 1.19 1.83 3.20 3.39 4.50 --
health 0.30 0.28 0.38 0.77 1.08 1.06 --
Housing & other services 1.00 1.41 2.74 7.28 5.81 5.89 --
Total Development Exp. 19.60 18.90 39.23 57.34 59.75 51.96 74.22
1/ April-December.
2/ Incluaing Fisheries.
bource: Ministry ot Planning.
- 35 -
Table 5.5: FINANCING OF DEVELOPMENT EXPENDITURES
(ln thousands of Yemeni dinars)
1974/75 1975 1/ 1976 1977 1978 1979 1980
Domestic bources 6,430 3,750 8,473 14,581 7,803 19,413 29,774
Development Funa 2,610 1,480 4,593 6,721 7,786 12,153 16,490
Contributions from
Salaries of
Public Servants (394) (571) (689) (804) (300) (515) (280)
50X of net protits
of Public Entities (2,099) (883) (3,903) (4,164) (6,449) (9,491) (15,620)
Other (117) (26) (11) (1,753) (1,037) (2,147) (590)
belt Financing by
Public Enterprises 2,520 1,480 1,760 1,810 1,713 1,600 5,240
banking System 1,300 790 2,120 6,050 -1,696 5,660 8,044
External bources 13,170 15,150 30,757 42,759 51,457 32,547 44,446
Development Funa 6,740 10,710 17,317 26,129 32,597 12,612 16,356
Cash Loans (4,153) (350) (700) (700 (7,857) (28) (--)
Commocity Loans (845) (202) (1,294) (6,682) (9,429) (3,123) (1,130)
Grants (Commidity
& Cash) (730) (4) (6) (2,700) (156) (1,900) 8,550
Other Foreign
Grants (1,012) (10,154) (15,317) (16,047) (15,155) (7,561) (6,676)
Project Loans 6,430 4,440 13,440 16,630 19,350 19,935 28,090
TOTAL 19,600 18,900 39,230 57,340 59,750 51,960 74,220
1/ April-December.
bource: Ministry ot Planning.
- 36 -
Table 7:1: OUTPUT OF MAIN CROPS
(Thousand tons)
1974 1975 1976 1977 1978 1979 19801/
Cotton 10.3 10.8 9.3 4.9 10.4 6.6 4.6
besame 1.2 2.1 1.9 3.1 1.9 1.7 1.5
Wheat 9.0 8.8 10.0 8.6 6.8 7.4 7.8
Cereals 18.3 17.6 18.1 22.8 19.9 21.2 19.9
Fodder 44.2 66.7 98.9 51.5 73.1 111.5 134.7
Vegetables 12.3 16.1 31.3 30.3 33.1 34.4 25.3
Melons 5.3 5.7 9.0 9.8 9.9 9.9 8.6
Fruits 9.6 9.6 14.0 11.7 13.2 13.8 14.8
Dates 20.0 18.3 13.1 13.5 8.9 7.4 7.9
Qa 2/ 0.9 1.1 1.3 0.9 1.7 1.0 1.0
1/ Preliminary.
2/ Based on proceeds of taxes on qat production.
bource: IMF and Central Statistical Organization.
Table 7:2: CULTIVATED AREA OF STATE FARMS AND COOPERATIVES BY GOVERNORATES
I -9t-aII III IV V Total
State State State State State State
Farms Coops. Farms Coops. Farms Coops. Farms Coops. Farms Coops. Farms Coops.
1973/74
Cultivated Area (Acre) -- 500 1,947 10,160 2,449 34,083 370 11,902 150 27,522 4,916 84,167
Irrigated by: wells -- 500 1,553 2,612 2,379 3,176 310 4,014 150 23,606 4,392 33,908
floods -- -- 394 7,548 70 31,007 60 7,888 -- 3,916 524 50,359
1974/75
Cultivated Area (Acre) 618 500 2,923 17,010 3,190 41,894 1,487 9,567 683 26,898 8,901 95,869
Irrigated by: wells 618 500 2,568 2,551 2,810 4,842 824 4,939 683 20,482 7,503 33,314
floods -- -- 355 14,459 380 37,052 663 4,628 -- 6,461 1,398 62,555
1975/76
Cultivated Area (Acre) 618 2,347 18,261 5,380 42,568 1,138 6,404 1,358 25,021 10,841 92,254
Irrigated by: wells 618 -- 2,347 3,504 3,080 4,837 563 3,899 1,358 16,644 7,966 28,884
floods -- _- -_ 14,757 2,300 27,731 575 2,505 -- 8,377 2,875 53,370
1976/77
Cultivated Area (Acre) 618 -- 3,488 18.593 4,990 26,446 1,C45 7,860 1,971 25,318 12,112 78,217
Irrigated by. wells 618 - 3,488 4,138 4,330 5,961 573 5,029 1,961 17,365 10,970 32,493
floods -- -- -- 14,455 660 20,485 472 2,831 10 7,953 1,142 45,724
1-P-P (70
Cultivated Area (Acre) 643 3 3,856 23,256 5,770 45,942 2,585 7,895 2,103 24,814 12,957 101,907
Irrigated by: wells 643 __ 3,699 5,250 5,106 5,835 396 6,267 1,627 19,064 11,471 36,416
floods -- -- 157 18,006 664 40,107 189 1,628 476 5,750 1,486 65,491
1978/79
Cultivated Area (Acre) 550 - 8,881 23,541 5,428 39,177 799 6,689 1,871 22,826 17,529 92,233
Irrigated by: wells 550 -- 4,484 4,716 5,348 7,119 719 5,797 1,552 17,642 12,653 35,474
floods -- -- 4,397 18,829 80 32,058 80 892 319 4,984 4,876 56,759
Source: Statistical Yearbook 1980, PDRY.
- 38 -
Table 7.3: NUMBER OF WELLS DRILLED BY GOVERNORATES
Governorates I II III IV V VI Total
1971/72 - 38 27 8 19 - 92
1972/73 - 22 37 3 28 - 90
1973/74 - 20 28 22 33 - 103
1974/75 - 21 19 19 13 - 72
1975/76 18 14 16 24 16 - 88
1976/77 7 11 34 15 35 5 107
1977/78 - - 30 - 30 - 60
1978/79 - 14 16 9 24 - 63
1979/80 11 8 15 17 3 54
Total 25 151 215 115 215 8 729
source: Department of Irrigation, Ministry of Agriculture and
Agrarian Reform.
- 39 -
Table 7.4: EGG AND POULTRY MEAT PRODUCTION BY THE STATE
POULTRY CORPORATION, 1970-1980
Egg Poultry Meat
Production Production
Year (Millions) (1,000 kg)
1970 0.8 4.8
1971 1.8 8.2
1972 1.1 6.0
1973 1.4 8.3
1974 2.0 22.8
1975 7.6 75.7
1976 18.9 218.9
1977 7.2 119.2
1978 12.7 102.0
1979 3.8 97.8
1980 16.0 134.8
bource: Poultry Development General Corporation.
- 40 -
Table 7.5; PRODUCTION OF FISH BY SECTOR
(in tons)
Public Joint Foreign
Year Cooperatives Sector Venturea/ Companiesb/ Total
1976 32,492 14,301 3,085 14,264 64,142
1977 31,449 15,693 2,848 13,996 63,986
1978 25,634 11,599 1,937 8,883 48,053
1979 30,771 7,816 2,620 10,393 51,600
1980 34,872 12,433 5,436 21,944 74,685
a/ Public sector companies in partnership with the USSR and Iraq.
b/ Nichiro and Tayo Companies of Japan.
bource; Ministry of Fish Wealth.
- 41 -
Table 7.6; PRODUCTION AND EXPORTS OF FISH
(Quantity in tons - Value in $million)
Exports/b ?Foreign Exchange
Year Production/a Quantity Value Earnings/c
1976 64,142 7,533 4.4 12.8
1977 63,986 8,906 6.1 17.9
1978 48,053 5,415 2.5 7.3
1979 51,600 3,616 3.6 10.6
1980 74,685 6,729 6.2 18.1
a/ Fresh weight.
b/ Exports of processed fish, fish meal and fish oil. It excludes exports
of Japanese Nichiro Company.
c/ Includes royalties paid by the Nichiro Company and is net of certain
payments made abroad.
bource: IMF, Ministry of Fish Wealth.
- 42 -
Table 7.7; FARMGATE PRICES OF SELECTED FRUITS AND VEGETABLES
Crops 1976 1977 1978 1979 1980 1981
Cereals
YD per ton
borgum 70 70 70 75 160 160
Wheat 75 95 95 100 170 175
Maize 70 70 70 75 75 115
besame 135 175 175 185 500 500
Vegetable Crops
Fils per kg
Winter Tomatoes 25 35 40 40 50* --
Summer Tomatoes 60 60 75 100 125*
Oct/Nov. Tomatoes 70 70 90 120 150* --
Red Onions 40 50 70 95 140 --
Eggplant 20 20 25 25 50 --
Winter Okra 30 45 70 75 125 --
bummer Okra 30 35 -- -- 100 --
Dry Red Pepper 200 300 450 450 -- --
Cabbage 25 25 35 35 45 --
Carrots 30 30 40 40 45
Cauliflower 30 30 45 45 45 --
Leeks 50 100 150 150 45 --
Green bquash 20 20 -- -- -- --
Cucumbers 50 50 65 65 -- --
Garlic 145 180 -- 250 -- --
Potatoes 80 80 -- 150 100 --
Fruits
Bananas 20 30 30 45 55
Papaya 20 20 20 45 55
Guava 25 25 25 90 90
Cantaloupes 30 35 -- 45 85
Watermelons 15 15 15 20 50
Oranges 100 100 -- 250 275
Limes 100 100 100 160 160
Peaches (local) 75 75 75 115 90
Peaches (Indian) 100 100 -- -- 90
Apricots 80 80 -- -- --
Coconuts 20 20 -- -- --
Dates (fresh, ripe) 60 60 40 60 90 --
YD per ton
Cotton -- -- -- 155 155 223
Note: Prices which were first fixed in 1973 were not changed until
February, 1977.
* Beginning from November 1980.
hource: Department of Planning and Statistics, Ministry of Agriculture
and Agrarian Reform.
- 43 -
Table 7.8: FISH PRICES (WET FISH) FOR COOPERATIVES
(Fils per kg)
Until Feb. 1977 1979-80
species 1977 (June-Oct) (June-Oct)
King Fisb and other
large fish/l 70 80 200
bhark 25-40 50 105
Catfish n.a. 25 40
bardines for Canning 15 25 40
Sardines tor Fish Meal 15 15 40
1/ Tuna, rock cod, black runner, red snapper, et. al.
2/ Consumer prices remained fixed at 150 fils per kg for all edible fish.
Lobsters are not marketed internally except in a fe!w tourist hotels at
YD1.76 per lb.
Source: Ministry of Fish Wealth.
- 44 -
Table 8.1; PRODUCTION OF MAIN INDUSTRIES, 1973-80
Unit 1973 1974 1975 1976 1977 1978 1979 1981 l/
Cotton Tons 4,266 3,597 3,979 2,943 1,809 3,535 2,240 2,240
Vegetable
oils " 5,257 4,681 3,286 3,956 2,593 n.a. n.a. n.a.
Ollcakes " 14,648 10,138 9,217 6,134 6,101 n.a. n.a. n.a.
Fishmeal "- - - - 1,568 1,364 626 1,368
Aluminum
utensils " 127 139 250 373 399 507 402 287
Tomato
canning " - - - - 1,119 1,203 1,361 1,228
Fish
canning " - - - - 305 592 57 216
Flour
milling " - - 4,347 34,862 37,595 38,440 31,138 31,763
Wheat bran " - - - - 5,194 8,849 9,514 11,063
Fish oil " - - - - 412 606 317 424
Paper bags " - - 217 261 455 426 436 521
Plastic
utensils " - - 58 69 109 149 188 266
Nails " - - 111 224 153 327 240 297
Foam
rubber " - - 162 295 431 501 680 619
Tiles 585 270 418 1,116 942 869 870 1,456
Shirts '000 124 191 356 382 574 472 429 322
Leather " 114 93 151 149 35 28 43 78
balt
mining '000 tns. 43 34 7 37 101 65 25 15
Leather
shoes '000 prs. - - 6 47 76 134 143 94
Plastic
shoes '000 prs. 202 358 590 800 978 1,378 763 122
Rubber
sandals '000 prs. - - - - 228 378 927 633
Matches " gross 191 231 192 358 323 332 193 400
Dairy
products " litre 653 787 2,961 4,538 5,945 4,369 3,600 5,153
PaiLnts " " 229 398 461 508 680 1,194 1,302 1,516
Pertumes " " - - - 10 27 26 11 8
Textiles " meters - - - 2,644 5,192 3,291 2,500 1,890
Cement
blocks pcs. - - 330 175 295 327 330 502
Cigarettes mln. 137 318 487 678 768 982 1,089 1,248
Electricity mln.kwh. 136 134 141 153 163 198 197 223
'Water mln.ltr. 7,344 15,293 17,051 16,170 17,030 19,412 18,469 19,547
Aeratea
water mln.bot. 15 18 19 24 28 34 38 16
bhips repaired 326 350 363 415 369 422 330 309
Liquid
batteries - - - - 11,957 20,448 18,000 12,778
1/ Preliminary.
Source: Central Statistical Organization.
- 45 -
Table 8.2: PRODUCTION OF THE ADEN REFINERY
(Millioo long tons)
1973 1974 1975 1976 19I77 1978 1979
Gasoline 0.5 0.5 0.2 0.2 0.3 0.4 0.7
Jet Fuel 0.3 0.3 0.3 0.2 0.2 0.5 0.9
Fuel Oils 2.0 1.8 1.1. 1.2 1.3 1.0 1.8
Total Production 2.8 2.6 1.6 1.6 1.8 1.9 3.4
1/ bource: Central Statistical Organization.
- 46 -
Table 8.3; CONSUMPTION OF PETROLEUM PRODUCTS
('000 tons)
Residual
Year Gasoline Diesel Fuel Oil Total
1976 56.1 170.7 120 0 405.8
1977 53.2 166.0 119.3 415.3
1978 55.9 175.0 125.3 436.1
1979 59.0 183.0 131.5 457.9
1980 61.6 192.1 138.1 480.8
1981 1/ 110.0 200.0 200.0 600.0
1/ Estimates as of February 1981.
Source: Yemen National Oil Company.
- 47 -
Table 8.4: NUMBER OF REGISTERED VEHICLES BY TYPE
Type 1975 1976 1977 1978 1979 1980
Private 9,342 9,637 9,94-6 10,518 11,730 12,783
Taxi 1,902 1,944 2,147 2,229 2,482 2,920
Buses 243 385 5Cl4 586 708 788
Commercial trucks (lorries) 7,240 7,896 9,560 11,182 13,912 16,287
Total vehicles 18,727 19,862 22,157 24,515 28,832 32,778
Motor cycles 3,561 3,627 3,947 4,289 7,120 9,537
Tractor & Cranes 916 1,006 1,1E;1 1,523 1,895 2,482
bource: Central Statistical Organization.
- 48 -
Table 9.1: ENROLLMENTS IN PRIMARY, PREPARATORY AND SECONDARY SCHOOLS
Primary Preparatory Secondary
Male Female Total Male Female Total Male Female Total
1968/69 84,392 16,889 101,281 6,208 1,738 7,946 1,169 391 1,560
1970/71 107,925 26,597 134,522 10,944 2,664 13,608 2,344 679 3,023
1973/74 136,577 47,167 183,744 18,537 4,703 23,240 5,509 1,424 6,933
1975/76 135,653 67,964 203,617 26,623 7,725 34,348 7,568 2,199 9,767
1976/77 134,827 71,531 206,358 32,628 10,782 43,410 8,620 2,527 11,147
1977/78 138,576 74,219 212,795 37,897 12,990 50,887 9,885 3,616 13,501
1978/791/ 148,823 77,917 226,740 25,396 8,964 34,360-2/ 11,107 4,064 15,171
1979/80./ 159,573 76,672 236,245 12,215 4,348 16,5632/ 12,262 5,476 17,738
Distribution by
Governorate 1979/80
First 30,874 25,192 56,066 3,058 2,361 5,419 4,217 3,889 8,106
Second 39,337 14,171 53,508 2,021 318 2,339 2,181 532 2,713
Third 24,339 11,427 35,766 1,193 441 1,634 1,104 275 1,379
Fourth 13,822 1,242 15,064 839 - 839 415 - 415
Fifth 47,219 22,978 70,197 4,921 1,183 6,104 4,082 762 4,844
Sixth 3,982 1,662 5,644 183 45 228 263 18 281
1/ Primary for 1978/79 7 year's education and 1979/80 8 years education.
2/ Preparatory for 1978/79 2 year's education and 1979/80 1 year education.
Source: Central Statistical Organization.
Table 9.2: STATISTICAL INDICATORS ON TEACHERS TRAINING AND TECHNICAL EDUCATION
1966/67-1979/80
Teachers Training: No. of Technical Insts. Commercial Schools Agric. Schools
Schools Teachers Students No. of No. of No. of
M F Teachers Students Teachers Students Teachers Students
1966/67 3 45 150 90 39 223 -- -- -- --
1970/71 4 24 264 122 30 93 15 143 10 64
1973/74 4 35 278 130 46 133 15 137 20 136
1974/75 5 47 462 169 33 312 14 190 16 152
1975/76 6 62 563 231 27 357 19 204 15 157
1976/77 6 72 214 369 49 477 19 250 -- 198
1977/7A 6 57 700 370 29 580 21 295 10 177
1978/79 6 84 855 364 64 721 20 333 17 155
1979/80 6 70 878 288 48 691 24 326 25 114
-- Not available.
Source: Ministry of Education and Maalla Technical Institute.
- 50 -
Table 9.3: HIGHER EDUCATION ENROLLMENT AND FACULTY
1970/71-1979/80
No. of
Academic Year Total Male Female Teachers Colleges
1970/71 150 n.a. 2
1971/72 200 n.a. 2
1972/73 287 n.a. 2
1973/74 383 n.a. 3
1974/75 934 92 5
1975/76 1,262 185 6
1976/77 1,937 208 6
1977/78 2,487 239 6
1978/79 2,870 321 7
1979/80 of which 3,355 326 7
by faculty:
Education 1,396 147 2
Agriculture 174 43 1
Econ. & Public Adm. 682 29 1
Medicine 330 41 1
Engineering 643 50 1
Law 130 16 1
bource: Central Statistical Organization.
- 51 -
Table 9.4 LITERACY PROGRAMS, 1970/71-1976/77
No. of Classes Enrolment Total
M F Total M F Total Grads.
1970/71 45 20 65 1,392 600 1,992 270
1971/72 74 31 105 22,046 1,170 3,416 563
1972/73 207 111 318 5,799 3,292 9,091 2,049
1973/74 1,002 840 1,842 28,148 29,499 57,647 5,218
1974/75 656 1,261 1,917 16,632 39,565 56,197 10,746
1975/76 1,271 2,414 3,685 26,066 59,605 85,671 21,780
1976/77 735 1,575 2,310 19,326 35,453 61,044 12,683
1977/78 568 1,433 2,001 9,138 34,897 44,035 11,774
1978/79 398 1,198 1,596 7,103 25,616 32,719 4,827
1979/80 287 682 969 4,113 10,524 14,637 2,238
Source: Central Statistical Organization.
- 52 -
Table 10.1: COST OF LIVING AND WHOLESALE PRICE INDICES FOR ADEN
(1969 = 100)
Relative
Weights 1975 1976 1977 1978 1979 1980
General Index 100.0 187 194 204 217 238 264
Foodstuffs 50.9 196 201 203 217 230 256
Fuel, water &
lighting 3.5 202 207 216 227 261 341
Rent 6.0 75 75 75 75 75 75
Clothing 9.0 309 349 389 407 409 435
Household supplies 3.6 177 184 208 210 254 268
Qat, tobacco &
alcoholic bev'gs. 10.0 201 201 209 230 298 347
Other 17.0 127 125 147 156 181 194
Wholesale Price Index
General Index 100.0 271 287 306 307 324 350
Foodstuffs 48.5 271 279 286 307 305 321
Raw materials 13.1 114 166 255 196 254 246
Industrial
products 23.2 352 384 394 398 395 397
Building
materials 5.5 318 279 299 299 381 388
Fuel 9.7 265 265 265 244 315 502
bource: IMF and Central Statistical Organization.