Friends of Yemen pledge $4 billion in aid

Yemeni Prime Minister Mohammed Salem Basindwa (left), Saudi Foreign Minister Saud al-Faisal and British Foreign Office Minister Alistair Burt attended the Friends of Yemen conference. [Fahad Shadeed/Reuters]

Yemeni Prime Minister Mohammed Salem Basindwa (left), Saudi Foreign Minister Saud al-Faisal and British Foreign Office Minister Alistair Burt attended the Friends of Yemen conference. [Fahad Shadeed/Reuters]

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More than 40 countries and organisations pledged $4 billion in aid to Yemen during a donor conference on Wednesday (May 23rd) in Riyadh.

Donor countries and organisations attending the Friends of Yemen conference vowed to provide technical, logistical and financial support to help achieve reconciliation and support reconstruction efforts.

Attendees discussed political, economic, humanitarian and security developments in Yemen and reaffirmed the regional and international commitment to help the transition process and help Yemen overcome the effects of its political conflicts.

According to the closing statement, the donors will support development projects included in the country's two-year transition plan, establish a trust fund and provide aid to Yemen to help it fight terrorism and piracy.

Participants also condemned the Monday (May 21st) attack that left nearly 100 soldiers dead in Sanaa's Sabeen Square, and affirmed their strong commitment to fighting extremism and its roots.

'Yemen is counting on its brothers and friends'

During the conference, Yemeni Prime Minister Mohammed Salem Basindwa addressed the country's deteriorating economic situation and declining growth rates, saying Yemen prepared a programme for 2012-2013 as a short-term plan to revive the economy and stabilise its economic, security, social and political environment.

"Yemen is counting on its brothers and friends to contribute to financing the projects included in the [GCC] plan so Yemen can keep up with the march of progress that is taking place in the world," he said.

Alistair Burt, the British foreign office minister, said that Britain will contribute $44 million in addition to the amount it pledged before the conference.

Saudi Foreign Minister Saud al-Faisal said the kingdom pledged $3.25 billion in aid to Yemen.

Dr. Mohammed Saeed al-Saadi, the minister of planning and international co-operation, presented a programme for stability and development, which addressed the successive crises the Yemeni economy faced in recent years and the development challenges.

He said the growth rate of Yemen's gross domestic product (GDP) declined 10.5% in 2011, noting it represents an unprecedented loss in the country's history since its unification in 1990.

The unemployment problem is one of the most serious challenges facing the development process because it undermines the nation's political stability and security, especially since it is concentrated among youth, al-Saadi said.

"The government presented an economic recovery programme that features specific urgent development projects. It identified a funding gap of $10 billion to revive the economy," Abdullah Hassan al-Shater, under-secretary for the ministry of planning and international co-operation for programming projects, told Al-Shorfa.

He welcomed Saudi Arabia's pledged financial assistance.

"In order to avoid the obstacles that arose after the London donor conference in 2006 when donor countries, citing unmet funding conditions, did not honour their pledges, we presented three mechanisms at this conference," al-Shater said.

"The first calls for donors to complete the projects and hand them over to the government, the second calls for a joint mechanism to oversee those projects and the third calls for their implementation by existing executive boards or the establishment of new boards," he said.

Dr. Mohammed Effendi, a former economy minister, told Al-Shorfa the Riyadh conference "affirmed the solidarity among the Friends of Yemen to help it overcome its current circumstances and break out of its bottleneck through a peaceful transition of power by implementing the government's economic recovery programme that was approved by the conference".

The urgent economic recovery plan focuses on restoring basic services to citizens such as electricity, oil derivatives, roads and water, he said.

The next conference meeting will be held September 27-28th concurrent with the 67th session of the United Nations General Assembly.

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  • READER COMMENTS

    كمال حسني

    2012-6-16

    The outbreak of the popular uprising against the former Yemeni regime and the deterioration of the security situation had a detrimental effect on the Yemeni economy and led to the current dire economic situation the country is facing. The demonstrations and the unrest that prevailed have affected the economic situation and the Yemeni citizen is solely bearing the burden of deteriorating economy, especially with the absence of political stability; needless to emphasize the positive impact that political stability will have on all economic sectors.

  • مقداد

    2012-6-13

    Arab countries must help Yemen militarily to face the extremists who today threaten the stability of Yemen and tomorrow will threaten the stability of the rest of these states should they restrain from helping Yemen getting rid from the grip of those militants, who want to convert Yemen into a terrorist Emirate governed by their head and subjecting the people to their will as the case was during deposed Ali Abdullah Saleh.

  • رفيق عادل

    2012-6-13

    Arabs can help Yemen by the following: First, helping the Yemeni people and government with money and technology available to the Arab States and their non-Arab friends, so that Yemen will be able to get out of its current economic setback after the Glorious Revolution in Yemen, and the stepping down of Ali Abdullah Saleh from power, through the direct grants to the treasury of Yemen to support the state budget as a whole, or grants directed to specific projects that serve the Yemeni people, such as those directed to the construction of infrastructure and economic housing for young people, or grants that are channeled to the health sector and education. Such funds can be in the form of easy loans or totally interest-free loans with a long period for repayment, or deposits with central banks for periods of more than ten years, and this is almost all on the shoulders of the wealthy Arab states such as Kuwait and Saudi Arabia, UAE, Qatar and the other countries that produce oil and natural gas. and not on countries with high population density which conducted the revolutions such as Tunisia, Egypt, Libya and other countries which are poor as compared with the above-mentioned ones.

  • مؤيد صلاح

    2012-6-12

    The economic situation in Yemen has worsened in an incredible way during this period because of the Yemeni revolution that started against the former Yemeni President. Many businesses have closed disturbing the Yemeni economic activity and causing its severe deterioration and pushing the country into reaching the poverty line. In addition, other problems are affecting Yemen, especially the rise of terrorist operations that have significantly worsened the situation. They aggravated the situation by stirring panic among the citizens, and having a bad impact on the economy. Many shops and factories have closed and losing contracts, whether internally or externally. The Yemeni market needs lots of effort to recover which will strengthen the national economy. The government must work to develop projects that will increase the savings of the country and the citizen who is affected by the poor conditions prevailing now in Yemen.

  • شهاب

    2012-6-11

    There is no alternative to the unity of Yemen. Those who speak about unity of Yemen do not understand that Yemen cannot be divided into southern and northern parts in any way. The united Yemen is the only guarantee for all parties in the Arabian Peninsula because all states in the region are in the same boat.

  • عبدالغني

    2012-6-11

    Yemen will never stand on its feet again and providing the needs of its people without solving the problem of instability that resulted from the current security and political challenges. The plans of Yemen must include conducting a national dialogue that includes all the Yemenis in order to reach unanimity regarding the constitutional reforms and the elections. We also wished to see progress as to the transitional justice law, which aims at facilitating the national reconciliation. It is necessary to achieve these reforms according to the agreed schedule as part of the GCC Initiative.

  • صالح وحيد

    2012-6-10

    The fate of Yemen affects millions of Yemenis who are starving but cannot find job opportunities and safe havens to live in. In fact, this situation will also have wider implications in the future in terms of the security and prosperity of the region as a whole. If ever this country fails to survive the transition process and to achieve stability, there will be a real risk of slipping into a civil war that will have a devastating impact on the steadfast people of Yemen. The latter have been suffering for a long time. Such a war would endanger the interests of its neighbors and limit the international efforts to aiming at eradicating the threat of violent extremism. Indeed, civil war would make it easier for the followers of al-Qaeda in the Arabian Peninsula to use Yemen as a harbor to threaten the stability of the region. Thus, the danger goes beyond the internal situation in Yemen and the economic crisis facing the country, which features the largest Arab community in the region of the Arabian Peninsula. We should consider the repercussions of the crisis on the region as whole. The bottom line is that the GCC countries generally recognize that the deterioration of the internal situation in Yemen would not serve their own interests. Indeed, such a decline would inevitably have bad implications for the security of the region. In this sense, all the GCC countries are supposed to know that it is not logical to accept the gap between their economy on the one hand and the Yemeni situation on the other hand. Therefor, they should give Yemen much aid. In fact, any aid is welcome. Nevertheless, the GCC must develop an integrated plan that could enable Yemen to play a real role in bridging the imbalance of population in the Gulf. The plan should provide opportunities to the Gulf States, led by Saudi Arabia, to employ Yemeni labor. This measure would help significantly to revitalize the Yemeni economy and ease the pressure on authorities there. Besides, the plan will enable them to address their internal problems in a better situation. It is essential to create an atmosphere of dialogue and openness and to take into account the possibility to commit correctable mistakes.

  • حسيب

    2012-6-9

    The difficult economic situation is the fundamental reason behind the outbreak and the continuing political and security challenges in Yemen. Firstly, there is the problem of unemployment among young people, as well as the prevalence of poverty in the country. The Yemeni economy also suffers from the problem of high inflation on the one hand and high indebtedness on the other hand. Add to this the failure of the Yemeni economy to achieve positive results in many international indicators, which adversely affects the country's reputation and prestige. In detail, the Yemeni bilateral economy suffers from unemployment and poverty, but this duality is a threat to the living situation where you find groups of stragglers, which include the young unemployed and relatively poor grasping at an opportunity to achieve their goals, leading terrorist movements to recruit them. There is also the continuing rise in the general price level or, in other words, the continued decline in the value of money.

  • صباح

    2012-6-7

    It is necessary to put in place a comprehensive plan, which should then be analyzed scientifically, even if seeking foreign experts for help becomes necessary. At the end of the day, we see that Yemen needs the support of Arab states, particularly the Gulf States. The latter should take responsibility for this vital task, in light of the close ties of kinship between Yemen and these states. It is also necessary to form a high quality monitoring system to execute the projects that are funded by foreign aid. This will result in positive and useful results, and will fulfill the Gulf States’ promises and their humanitarian roles. Nobody is in doubt that the GCC states have always been there for their Arab brethren. In my opinion, I think this is a good chance to put the Yemeni delegation and Yemeni citizens in the picture as to the realities on the ground. The Yemeni delegation is on a mission to secure foreign aid and bail out the declining economy. Helping Yemen should come before personal interests and regimes in all forms and shapes. We should comprehend that protecting Yemen protects the Middle East at large and the GCC states in particular from imminent threats. These threats will transpire in the event that Yemen is left out in the cold and placed at the mercy of foreign powers aiming at the destruction of the Arab World, one nation at a time. Yemen is suffering from the weakness of its security forces and needs help from other countries so that Yemeni forces will not be an easy target. The Arab countries should be vigilant and attentive to the plots being hatched to sabotage Yemen and Arab countries and to attain certain goals. The Arab countries should not allow this to happen and should prevent it at any cost. We pray to god to protect Yemen and its people from all of the problems they are facing, and to keep them safe and sound in their country.

  • مدحت غانم

    2012-6-6

    Confrontation of Al-Qaeda in Yemen is not the responsibility of this country with its deteriorating economy and difficult situation. This is the responsibility of the Gulf neighboring states in the first place, because the security problems that affected these states will take place again with Al-Qaeda if it had a chance to extend its activities and collaborate with those who work hard to impose siege on the Arab Gulf States through shaking their security. Iran does not even hide this wish after it prepared Iraq to be a base for support and Yemen as a base for war through the support offered to both the Houthi rebels and Al-Qaeda. Of course, we cannot overlook this thereat.

  • صالح

    2012-6-5

    Where are the aid efforts, Arab governments are supposed to carry out in Yemen especially as it is an Arab country; brother has rights and duties? We, just like any Arab state, must cooperate to improve the situation in Yemen. Many Arab countries are sending lots of financial aids to Yemen in order to face increased risks of poverty caused by the population growth. Joint political, economic and scientific Arab efforts are required in order to overcome this problem, determine the priorities in Yemen's reconstruction plan, help rationalizing investments, and develop Yemen's economy. Moreover, efforts are required to ensure the development of technology and to use the latest technologies in education and other sectors in Yemen. The social situation in Yemen suffers from a lot of burdens, both in terms of living conditions and the bad security situation.

  • فواز ياسين

    2012-6-3

    The security conditions in Yemen and its deteriorating security circumstances have severely affected the economic infrastructure. Hence, the stable and developed states must help the Yemeni economy through offering investments to improve the infrastructure. There must be economic support on part of the developing states to form a bridge for communication and exchange of benefits and interests. We have to support the will of the peoples in the region and worldwide to help these countries to be bridges for the communication and exchange of the mutual benefits to all people for the sake of freedom, unity, and comprehensive development. Hence, we should support the Yemeni economy and develop the investment environment, because this is a duty on the rich Arab states. These states should help the Yemeni economy and investment sector in order to achieve the balanced development and mutual interests. This is the only way to peace and stability as well as the human determination and happiness of the peoples, tolerance, and good relationships. Hence, there should be official efforts to prepare the Yemeni islands as fields for investment in all economic, production, and service sectors. There also should be social, environmental, educational, and cultural development to raise the investment in Yemen.

  • عماد

    2012-6-2

    The poor country of Yemen; the things that happened there cannot be forgotten at all and their ruler, the unjust ruler has done things that no one else did and he thought that he had escaped when he got the immunity, but the Yemeni people did not forget what he did to them at all.

  • سجاد منصور

    2012-6-2

    Yemen is one of the powerful countries, but what makes her stand still like that and without progress to do something important and powerful is because the funding and administration there all need large financing and greater support from the Arabs or the European governments, so that Yemen and the Yemeni people could get out of the difficult situation which they are experiencing. And I call upon Allah, the Highest and the Greatest, to rid Yemen and the Yemeni people of the great worry that they are experiencing, and I want to say that the duty of the Arab countries is to help Yemen with all that they have to get back what it was in the past and even better, so that Yemen would be among the countries that can do something in order to preserve the lives of her citizens.

  • عاصم حبيب

    2012-6-2

    The Arab spring has been witnessed by some Arab countries that have gone through very difficult situations and things must be different in order to maintain Yemen. We have to stand by this country, so that she would not be destroyed and that al Qaeda would entirely dominate it.

  • شوكت عساف

    2012-6-2

    Al-Qaeda has exploited Yemen in that issue because they know that Yemen is a poor country, which no one has funded with money and moral support in order to become one of those powerful states, and al-Qaeda is the weakest creature on earth because it is looking for everything that is cheap and easy and the power that it used to have started to end because its financial situation worsened greatly and they must think of something new, which no one but Allah knows what it is. Allah willing, the situation will be different everywhere and Yemen will remain one of the best Arab countries and the nicest among them, and it would be so if there was large and strong support from the Arab states that have to stand by Yemen and support her through all that they can afford. Allah willing, safety, security and stability will be restored to Yemen because it is one of the most deserving Arab countries for her really heroic positions. And the most important thing is the insistence of the Yemenis as they want Yemen to be one of the best and the nicest Arab states, Allah the Almighty willing; she will be so, Allah willing.

  • شاهد

    2012-6-2

    The increased operations of Al-Qaeda in Yemen is a dangerous indication and cause for concern, especially that the stability of Yemen is critical for the Gulf Cooperation Council countries, in addition to the fact that it controls one of the most important straits in the world, which is the Bab El-Mandeb Strait, situated between Yemen and the Horn of Africa, and the maritime routes of the Suez Canal passes through it, as do the huge oil tankers. The matter that is of most concern for the International Community is the exploitation by Al-Qaeda of the current transitional circumstances in Yemen in order to gain power and threaten the navigation in the straits, and subsequently, negatively impact on global trade, and give a boost to piracy which is already very active in the Gulf of Aden and the Read Sea.

  • عباس قاضي

    2012-5-30

    There are many problems that the Yemeni citizens suffer from, and they need a quick solution to them, such as education. Most of Yemeni society suffers from ignorance and illiteracy. This makes the Yemeni people unable to develop their nation. Even the student who is still studying cannot understand the subjects or the syllables. Education is the foundation of developing the economy, because through education you can bring up a creative and thoughtful generation that can find solutions at any time. The government has to realize the new developmental conditions that they have to offer to the Yemeni citizens, who suffer from many things. As for the problem of the Yemeni justice system, which almost does not exist except against the simple people, it makes Yemen lag thousands of light years behind progress. The time of Saleh was very long, and it ruined complete systems. He was living while the rest of the people were being killed. The government has to have multiple purposes and thoughts to be able to build their country. But sadly, the ruling party is controlling everything. They want to control all the Yemeni people by force. There are some steps that have to be taken by the Yemeni government in order to improve the economic conditions, to improve the national security, provide the necessary needs for the citizens, and to continue growth. This means we need a plan that will establish the difficult balance between the three elements of defense, consumption and investment. We have to be careful not to picture the economic development as economic independence, industrialization or keeping the old assets. The plan for economic development is basically defined by reaching a number of modernization goals, i.e. necessities, such as increasing production, establishing a degree of economic and social equality, establishing the modern knowledge and developing the service and production institutions. It is common to read the plan of the economy based on some secondary purposes, such as the number of citizens under the poverty line, the minimum limit of consumption, the maximum limit of unemployment, the distribution of incomes and the shapes of consumption and diversity in the national economy. The policies of the plan have to produce and keep high rates of growth without high rates of inflation. These policies have to create an accurate balance between merging with the world economy and the risks of this openness for the potentials of the national industry.

  • شامل اكرم

    2012-5-30

    It's supposed that the countries that have a lot of natural resources that cause in making their economy better, to contribute to saving a lot of aid and sending it to Yemen by providing them with more appropriate means of production to increase its investments in Yemen, or by sending security support through the supply of Yemeni government with weapons and expertise that improves the situation quickly and helps the return of stability to Yemen.

  • ريان

    2012-5-27

    The United States and Western countries have lent a helping hand to Yemen to mitigate the severity of poverty and unemployment that exist in that nation. These issues are key factors that contribute to the recruitment of new people to carry out violent operations for al-Qaeda. Therefore, the neighboring countries, such as Saudi Arabia and Oman, as well as Western countries that have interests in the region and are the dominant players in this part of the world should strive to alleviate the burdens on the new Yemeni government. These parties should help and support the Yemeni people and their government financially and otherwise, and should provide assistance necessary for building the infrastructure. They should also provide Yemen with expertise so that Yemeni government may make advancement and be able to create job opportunities for its people. Subject to receiving such help, the Yemeni government can assume its responsibilities away from sectarianism and tribalism. Yemenis can then have a sense of productiveness and will then relinquish terrorist organizations, tribalism and sectarianism. These are true messages from the poor Yemeni people to Arab countries, particularly the wealthy and affluent Gulf States. Their message is to help and support their helpless nation.