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| World Bank Headquarters in Washington, DC [PHOTO: Shiny Things] |
The Interim Strategy Note (ISN) discussed by the World Bank
Board of Directors will guide Bank engagement throughout the critical period of
the next 18 months during which Yemen will draft a new constitution and
organize elections.
“Our strategy is tailored to match the transition timeline,”
said Hartwig Schafer, World Bank Country Director for Yemen. “It will allow us
to concentrate on short-term actions that boost the credibility of the
transitional government while laying the foundations for future, sustainable
development.”
The Government of National Reconciliation, formed after the
resignation of President Ali Abdullah Saleh, faces the formidable task of
uniting the country in the face of a humanitarian crisis and ongoing
instability. At the request of the transitional government, the World Bank led
a joint effort with its development partners to assess the social and economic
impacts of the revolution. This assessment informed the government’s own
reconstruction plan and medium-term priorities.
The ISN is firmly anchored in the government’s program and
represents an overall shift in the World Bank strategy to align it with
post-revolutionary needs and development priorities. It is also designed to
help the government address the causes of the recent upheaval.
The strategy is guided by three overarching principles which
will be integrated into all future programs. The first is a commitment to
promoting social inclusion and participation, especially for women and young
people. In recognition of the vital role of good governance, the second is a
focus on increasing transparency and accountability, while strengthening
institutions. The third principle is to maintain flexibility in all World Bank
programs, to ensure that they are able to adapt as needs and priorities evolve.
The ISN further identifies a set of key priorities for
immediate action. These include measures to address rising levels of poverty,
food insecurity and unemployment by creating short-term jobs, restoring basic
services and improving access to social safety nets. These will be complemented
by efforts to improve local service delivery by building up capacities, and
making services more responsive to citizens’ needs.
“Yemen is still very fragile,” said Wael Zakout, Sana’a
based World Bank Country Manager. “The government’s ability to improve the
lives of ordinary Yemenis through jobs and improved services will be vital for
stability, and they will need the full support of the international community
to achieve this. The World Bank is committed to assisting Yemen at this
critical moment.”
Stabilizing the economy and creating the conditions for
growth will continue to be a primary goal. This will include programs aimed at
revitalizing economic management to maintain macro stability, and strengthening
fiscal policies and public financial management. Creating an enabling
environment for the private sector as the engine of growth and the best
potential source for the number of jobs needed is another immediate challenge.
This will be especially critical for Yemen’s large youth population which is
expected to double in the next 40 years. In view of the importance of the
private sector, the ISN was developed jointly with the International Finance
Corporation (IFC), the World Bank Group’s private sector arm.
"IFC has a large advisory program in Yemen and the
investment portfolio has also grown over the last few years,” said Mouayed
Makhlouf, IFC Regional Director for the Middle East and North Africa. “While
the operating environment for the private sector remains difficult, IFC will
continue to focus on capacity building,
support for small and medium enterprises, and the training of entrepreneurs,
while exploring opportunities for investment with regional and international
partners, including on PPP transactions."