World Bank Document

Report 2057a-YAR Yemen Arab IRepublic Development.. of- a- Traditi'onal' Economy (in,TWo Vblumes) Volume.- It: Annexes zund Stabstical Appendix F I L E P Public Disclosure Authorized December- 14,, 1976 ou- Country Peograriis Departrnentll' Europe,- Middle- Eastand_-N'0'rthI,Africa, Regiori FOR, OFFICIAL USE: ONLY

MNS

IVIT_j 01 Y

Public Disclosure Authorized x PR, s V ? PC'. .v

f o flV

-4

N, 17-4

Public Disclosure Authorized I

5,t

ag,

ri 7 -4

M, g4i 16--_Mplaz-.1 za .5

y7w, Document A L Public Disclosure Authorized I nd !!np lrp It 5, ,O,I -A rwise. 4

2 CURRENCY EQUIVALENTS

Currency Unit: Yemen Rial (YR) YR I = 100 Fils

Currency Equivalents I: Before February 1973 YR 1 US$0.20 US$1 YR 5..00.

Since February 1973 Yl 1 -US$0.22 US$L YR 4.50

Fiscal Year: July 1 to June 30

1/ No par value for the Yemen Rial. has yet been declared to the IMF. AUL exchange transactions are effected at the Central Bank rate which has been pegged to the US dollar since February 1973. FOR OFFICIAL USE ONLY

YEMEN ARAB REPTJBLIC: DEVELOPMENT OF A TRADITIONAL ECONOMY

TABLE OF CONTENTS

VOLUME II: ANNEXES AND STATISTICAL APPENDIX

PaRe No.

ANNEX I-1 Efficiency Prices for Labor, Capital and Foreign Exchange 1

ANNEX II-1 GNP per capita (World Bank Methodology) 3

ANNEX III-1 1975 Population and Housing Census 5 -2 Structure and Development of YAR's Education System 6 -3 Foreign Assistance in Education 14

ANNEX IV-1 The Planning Machinery in the YAR 17 --2 Functions prescribed by the CPO for its Five Departments 18 -3 List of Agencies of the Central Administration 20

ANNEX V-1 Development of Financial Institutions 21 Attachment A: Simmary of Tax System 30 Attachment B: Branches of Financial Institutions in YAR 34

ANNEX VI-1 Statistics for Foreign Trade and Payments 35 -2 Country Projects and UNDP Approved Projects as of June 30, 1976 37

ANNEX VIII-1 Principal Natural Regions in YAR 41 -2 Foreign Assistance in Agriculture 43

STATISTICAL APPENDIX 48

SELECTED BIBLIOGRAPHY 139

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.

- 1 - ANNEX I-l Page 1

EFFICIENCY PRICES FOR LABOR, CAPITAL AND FOREIGN EXCHANGE

1. The economy of YAR is largely directed by the interaction of market forces. Except for the exchange rate, Government intervention in the market mechanism is kept to a minimum. Thus, actual market prices reflect to a large extent, the relative scarcities of the country's production factors.

Labor

2. For YAR, as for many underdeveloped countries, a distinction must be made between skilled and unskilled labor. Givet the narrow base of tAR's modern education system, domestic supply of skilled labor (including profes- sionals and technicians) has traditionally fallen short of demand and much of the skills had to be imported (including Yemenis working abroad). The opportunity cost of skilled labor is therefore equal to the cost of attracting expatriates. This situation is likely to persist for some time to come not- withstanding substantial improvements in the country's education system.

3. Unskilled labor, on the other hand, had been plentiful only a few years ago and its opportunity cost was close to zero. With the massive emigration in the mid 1970s (see Chapter III), however, YAR's labor reserves have been largely exhausted. Even in remote areas of the country unskilled labor now commands a relatively high price and on occasion is not even available at the going market rate. In the circumstances it can be assumed that local wage rates now represent quite accurately the opportunity cost of unskilled labor. For future years, appropriate increases of local wages will have to be taken into consideration.

Capital

4. In the absence of a well functioning capital market it is difficult to estimate YAR's opportunity cost of capital. There is evidence that high rates of return are earned on investments in trade, real estate and to a lesser extent in agriculture and industry. However, the supply of capital from private and official sources presently exceeds local demand. This is reflected in an overall savings surplus (see Chapter V). Although domestic interest rates for bank credit have been raised in recent years (see Statis- tical Annex Table-6.4) they represent only a restricted market. Large amounts of investable funds are made available at much lower cost (see Chapter VI) and substantial savings surpluses are in'vested abroad. This together with the openness of the Yemeni economy and the full convertibility of the local currency suggests that as long as the overall savings surplus persists, international interest rates could be taken as a fair approximation of YAR's opportunity cost of capital.

Foreign Exchange

5. In the early years-of the Republic the rate of exchange for the Yemeni Rial (YAR) fluctuated freely. Since February 1973 it has been pegged through Central Bank intervention to the US$ at a rate of approximately - 2- ANNEX I-1 Page 2

$1 - YR 4.5. There are no exchange restrictions and import tariffs are essentially levied for fiscal reasons. Until recently, the official rate and before that, the market rate could be taken as approximations for the opportunity cost of foreign exchange.

6. However, since 1975/76 the Central Bank has started accumulating large amounts of foreign exchange (see Chapter VI). This suggests that the YR is presently undervalued and that its international price would appreciate if official intervention was to be discontiued. Given the fact that most of YAR's exchange earnings originate in Saudi Arabia, it can be assumed that the shadow exchange rate of the YR (opportunity cost of foreign exchange) would fall somewhere between the official rate ($1 - YR 4.5) and that of the Saudi Rial ($1 - SR 3.5). -3-

ANNEX II - 1 Page 1

GNP Per Capita, World Bank Atlas Methodology

1. In this Annex, t:he GNP per capita for the years 1974/75-1976/77 will be calculated on the basiEs of the World Bank Atlas methodology with 1975-1977 as the base period. Below is the formula used for this purpose.

n n

> XXy

Y76: = I t D76 76 '76 n n76

d> t EIYt t:a1 t 1

i i d d pj

Where Y i : GNP per capita in current US$ for the year 1;

Y : GNP (at market prices) in current prices, Yemeni rials;

Y :GNP (at market prices) in constant prices, Yemeni rials;

X :Exchange rate in Yemeni rial per US$;

D : US GNP deflator;

P :Mid-year population;

P :Price ratio needed to convert GNP series to average base d period prices;

Xd :The weighted average exchange -rate for the base period, here expressed in US$ per Yemeni rial; and

t :base period (l1975-1977). 4 - ANNEX II - 1 Page 2

2. The folloving information is ava±lable:

1-974/75 19-75/76 19-76177

Population ('000) 5,300 5,406 5,514 GNP (TR milion) Current Prices 5,388 7,338 11,000 1/ Constant (1975/76) Prices 6,067 7,338 8,580 1/ US Implicit GNP Deflator (1975-77 - 100) 0,94641 0.99625 1.05172 Exchange Rate (YR/$) 4.50 4.50 4.50

3. Therefore, Pd - 1.0792 and

Xd x 0.2222

Accordingl 4GNP per capita in 1976/77 - 392 GNP per capita in 1975/76 - 324 GNP per capita in 1974/75 - 260

1/ Tentative World Rasnk estimates. !1 Fiscal years 1974/75, 1975/76 and 1976/77 correspond, with regard to US implicit GNP deflator, to calendar years 1975, 1976 and 1977 respectively. - 5 - ANNEX III-1 Page 1

1975 POPULATION AND HOUSING CENSUS

1. In February 1975, the Central Planning Organization (CPO), with the help of the United'Nations Fund for Population Activities (UNFPA), conducted the first population and housing census in YAR. The census aimed at covering the demographic and economic aspects of human resources. With the exception of some areas in the eastern and northeastern parts of the country that were difficuLt to reach, the survey covered the whole country and all household familien were enumerated.

2. 'The census was carried out in accordance to a detailed plan and timetable that took 15 months of preparation. After thorough training, about 5,500 workers, mostly unviversity and secondary school students, par- ticipated in the census thiat lasted from midnight of January 31 to February 20, 1975. The enumeration was carried out on a de facto basis, i.e., each individual was recorded in the place he/she was at the time of reference.

3. Since enumeration was carried out in'February, a time of low agricultural activity in all t:he country except the Tihama, total resident population was at its minimum., A large number of Yemenis were outside the country at the time the census wail conducted. Moreover, for social reasons, a large number of females were not: enumerated. A Swiss technical team subsequently estimated the under-enumeirated and the uncovered portions of the population with the help of special s;urveys and aerial photographs.

4. The preliminary results of the census were published in December 1975; they are based on a sample that covered 3 percent of the recorded resident population. The processing of all the collected information commenced some time later with the help of a UNDP-supplied computer and technicians. Final results are expected to come out in 1979. But only minor changes in the preliminary results are expected when the final results are out.

5. The population s3urvey covered population data by governorate, city/ village, age, sex, maritaL status, educational attainment, and employment and occupational status. It was supplemented by a housing survey enumerating the number of rooms in living quarters, type of tenure (rental, ownership), house facilities (electricity, water, etc.) and type of housing (ordinary, cave, hut, public, etc.) by governorate'and major city. - 6 - ANNEX III-2 Page 1

STRUCTURE AND DEVELOPMENT OF YAR'S EDUCATION SYSTEM

1. The present education system of the Yemen Arab Republic is based on four stages, (a) 6 years of primary education (grades 1-6); (b) 3 years of preparatory education (grades 7-9); (c) 3 years of secondary education (grades 10-12); and (d) higher education. Transition within this structure is regulated at the completion of each stage. So far, almost all graduates from one stage can enter the next.

2. The Ministry of Education (MOE) and Sana'a University are primarily responsible for education in YAR. Religious and private schools play a minor role, while a number of other ministries independently administer training programs related to their special technical fields. The MOE has regional offices in each of the 10 Governorates. However, there is a considerable degree of centralization; and at both national and regional levels, administration is inadequate due to the lack of qualified personnel. About 20 percent of the MOE's staff have university degrees, of which only a few are in disciplines related to education. The majority of the MOE's staff lack even secondary school education. The Ministry is being supported by an expatriate Task Force supplied by UNDP/UNESCO under IDA's first educational project (Annex III-32. The Task Force is presently helping to introduce administrative and organizational reform. Higher education is the responsibility of Sana'a University, the only higher education institute in Yemen.

(1) Primary Education (grades 1-6)

3. Primary education and adult literacy programs are reviewed in Chapter VII of this report (Satisfying Basic Needs). In this annex it suf- fices to point out that presently a primary school graduate has the choice of joining (a) a preparatory school offering formal education, (b) a teacher training school that prepares students for primary school teaching, or (c) the technical school, which trains middle level technicians. Table 1 below suggests that many primary school graduates continue their education. How- ever, the numbers are somehow misleading since a large number, of the first year students in preparatory, teacher training and the technical schools may either be repeaters, have graduated abroad, or have graduated in previous years. Nonetheless, official estimates indicate that on average preparatory school entrants during the last five years (1971/72-1975/76) consisted to about 70 percent of primary schodl graduates. 7 ANNEX III-2 Page 2

Table 1: PRIMARY SCHOOL GRADUATES AND FIRST-YEAR POST-PRIMARY ENROLLMENTS

First Year Enrollment in Academic Primary School Preparatory Teachers Technical Year Graduates /1 Level Training School /2 TOTAL

1975/76 8,081 6,816 961 89 7,866 1974/75 5,809 5,159 325 81 5,565 1973/74 5,255 4,061 404 73 4,538 1972/73 3,552 3,155 286 82 3,523 1971/72 2,613 2,766 170 93 3,029 1970/71 2,254 1,933 66 92 2,091

/1 Primary schools graduates are for the previous academic year.

/2 The technical school is considered a secondary school, however, its first year entrants are graduates of primary schools.

Source: Ministry of Education.

(2) Second Level Education (grades 7 to 12)

4. In 1975/76, seccind level education, almost fully public, was provided at the preparatory stage (grades 7 to 9) in 134 formal schools and 8 teacher training institutes; and at the secondary stage (grades 10-12) in 27 formal-schools and 7 teacher training institutes. On the whole, the quality of school buildings is better than those of the primary level, but the schools still lack teaching equipment especially where science teaching is concerned.

5. Second level school enrollments have increased very rapidly from 5,532 in 1970/71 to 22,975 in 1975/76, an average annual increase of about 33 percent. The proportion of girls enrolled increased during the same period from an average of 5 percent to 12 percent of all second level enrollments (Tables 10.3-10.5 of Statistical Appendix).

6. Preparatory schools provide formal education leading to intermediate certificates. The quality of students in this level is better than that of -primary schools. After all, the students who join preparatory schools are among the top primary school graduates. Moreover, most teachers at preparatory schools are expatriates with at least a high school diploma and some experience in teaching. Consequently, both repeaters and dropout rates are relatively low while graduation rate is high. In 1975, 2,985 students (94 percent of grade 9 enrollments) graduated from the preparatory schools and about 78 percent of them proceeded to-secondary schools. The proportion of girls returning to family life has decreased markedly; almost all girls graduating from preparatory schools proceed to secondary education. - 8 - ANNEX III-2 Page 3

7. There were 134 preparatory schools during 1975/76, an increase of 36 schools over 1974/75. The increase in preparatory schools is recent for there were only 22 schools in 1970/71. However, the distribution of schools among Governorates is uneven. In Taiz alone there were 58 schools enrolling about 47 percent of all students. Sana'a and Hodeidah follow with 18 schools (enrolling 27 percent) and 17 schools (enrolling 13 percent) respectively.

8. Out of 711 teachers in preparatory schools in 1975/76, 17 were women. All teachers, except for those of reli-gion, were expatriates of whom about 90 percent were Egyptians. The pupil-teacher ratio of 22:1 is relatively good, but varies considerably among Governorates. The Governorate with the largest number of schools, Taiz with 58 schools, had the highest pupil-teacher ratio, 34:1. Sana'a and Hodeidah follow at 19:1 and 18:1 Tespectively. Nevertheless, since preparatory level schools have only been recently introduced to most of the Governorates with low pupil-teacher ratio, the ratio is expected to rise in these Governorates as future primary school graduates join preparatory schools.

9. Secondary formal education extends over three years after finishing preparatory education. Enrollments at this level increased from 1,189 in 1970/71 to 6,050 in 1975/76, an average annual increase of 39 percent p.a. Taiz, with 9 of the 27 secondary schools, accounts for 48 percent of total enrollments. Girls' enrollments began in 1970/71 and increased from about 2 percent to 8 percent in 1975/76. Participation of girls outside Sana'a, Taiz and Hodeidah is minimal. During the last four years, an average of 86 percent from the scientific section and 76 percent from the arts section have success- fully completed high school requirements. Most of these graduates proceeded to college education, either at University of Sana'a or abroad. The student- teacher ratio is 18:1 for the country as a whole, with the highest ratio in Sana'a at 22:1. Among the 332 teachers in 1975/76, there were only 12 Yemenis.

10. Teacher training is accomplished at both the preparatory and secondary levels. The first teacher training institute for boys at the preparatory level started in 1963 and its girls counterpart in 1966. Teacher's training at the secondary level started in 1968 with one institute for- each sex. In 1975/76, there were eight institutes (4 for boys and 4 for girls) at the preparatory level and 7 institutes (3 for boys and 4 for girls) at the secondary level enrolling 961 and 354 students respectively (Table 10.5 of Statistical Appendix). The schools are almost evenly distributed among the four major cities (Sana'a, Taiz, Hodeidah add Ibb) and they are staffed by 113 (53 at the preparatory level) expatriate teachers of whom 38 are females. The teacher- student ratio is 1:18 and 1:6 at the preparatory and secondary levels respectively.

11. Difficulties have been experienced in attracting students for teacher training institutes. The MOE had to close boys' institutes at the preparatory level during the early 1970s. Dropout rates in these institutes are high due to the low level of training, dissatisfaction with late disbursements of student stipends, and unattractive teacher salaries. Moreover,, potential male applicants consider that they have little chance for career - 9 - ANNEX III-2 Page 4 and educational advancement, particularly because whoeve- made it to the preparatory level is considered an able person who can be successful in the private business sector. However, the decreasing number of boys willing to enter primary teacher training is expected to be partly offset by the increasing intake of girls;.

12. In spite of the large number of unqualified primary school teachers, few attempts have been made to provide follow-up training for these teachers. Special short courses (up to six months) in specific subjects, notably arith- metic, have been conducted for limited numbers of teachers. With so few teachers available, the MOE finds it difficult to release teachers for such training, although the low educational level of most teachers makes supple- mentary training an urgent: need.

(3) Curriculum Development

13. The curriculum clevelopment branch within the Ministry of Education is responsible for the review, development and promulgation of curricula at all levels below the unive!rsity. Following the revision of the primary curricula in 1972, few attempts have been made to rewrite syllabi and textbooks on some subjects. The curriculum at this level is theoretical and fragmented in too many subject divisions with insufficient time devoted to developing skills of literacy-and numeracy. The extreme shortage of well-trained teachers and the almost complete absence of teaching materials are compounded by the use of textbooks written for countries and culture foreign to Yemen.

14. The curriculum consists predominantly of arts subjects. Arabic and religion are alloted 54 percent, 33 percent and 34 percent of total weekly hours taught in the primary, preparatory, and secondary levels respectively (Table 10.6 of Statistical Appendix). Mathematics and sciences are each alloted about 25 percent of the time in the primary and preparatory levels. In the final two years of the secondary cycle, two streams provide students with a choice between literature and science. In the former, mathematics and sciences are virtually non-existent while in the latter, where about 75 percent of students are enrolled, arts subjects still dominate. Laboratories and science equipment are inadequate and students have little opportunity to perform experiments.

15. The UNDP/UNESCO Task Force (see paragraph 2) is advising the MOE on developing cohesive policies at all levels. It is presently reviewing the process of curriculum development. Greater teacher involvement in planning curricula, revising syllabi and requiring textbooks emphasizing Yemeni content is envisaged at all levels. Coordination of these tasks with a review of the examination system and the more adequate provision of teaching materials and scientific equipment are urgent priorities facing the Government.

(4) Private Education

16. Private education has a relatively minor role in Yemen. In 1974/75, the total number of primary private students was less than one half percent of the number enrolled in primary public schools. There are only two private - 10 - ANNEX III-2 Page 5 schools, one in Sana'a and the other in Taiz. Both schools cover primary and preparatory levels with 1974/75 students enrollments of 938 and 347 respectively. The Government supervises the schools but does not control them, although it provides them with books as in the case of public schools.

(5) Religious Education

17. Religious education was the only form of post-primary education available before 1962. In 1974/75 there were 31 religious schools that enrolled 2,303 students at the preparatory and secondary levels. Religious schools allocate most of their time to Islamic teachings while hardly covering other subjects that are taught in public schools. Religious schools are attached to the MOE, but are financially supported by Arab countries, particularly Saudi Arabia. The graduates of these schools often become instructors for religion in public schools. Two religious institutes were recently established in Sana'a and Damar by the MOE to teach Islamic values with modern scientific methods.

(6) Technical Education

18. Technical education is offered at the five-year post-primary technical school in Sana'a (supported by the People's Republic of China) which enrolled 348 students in 1975/76, all of whom were boarders (Table 10.7 of Statistical Appendix). Entry is selective for primary certificate holders. Annual admission is about 90 and the capacity of the school is 450. Graduates of this school are granted a high school diploma in technical education which is equivalent to the formal education secondary certificate. The first graduates of the school (35 in 1975) were sent to China to continue a four- year university course before they return to Sana'a as instructors for the school. During 1975/76, there were 54 Chinese instructors and translators teaching technical subjects and 11 Yemeni teachers for general subjects. Training is provided mainly in construction (buildings and roads) and maintenance of heavy equipment. Practical work and design occupy 30-40 percent of the curriculum in the third and the fourth years and 70-80 percent in the final year when students participate also in pratical work pr.ojects. During 1974/75 the technical school came under the control of the MOE and the admission procedures were changed in 1976/77. New entrants are required to have a preparatory school diploma and are expected to stay three years before they graduate with a high school certificate in technical-education.

19. Vocational training under the MOE will commence with the establishment of two vocational training centers (Sana'a and Hodeidah) under IDA's first education project. The Centers will have an annual intake of 288 primary school graduates into a two-year full-time program offering six trade specializations. In addition, the centers will offer part-time courses to upgrade skills of workers already employed in industry and services. Two similar centers (in Taiz and Damar) were included under IDA's second education project. - 11 - ANNEX III-2 Page 6

20. In view of the gestation period required for the education system to respond to skilled manpower needs, and because of the shortages of skilled manpower, some ministries and government agencies initiated their own skill training schemes. Three vocational training programs are conducted by the Ministry of Public Works, two of which are UNDP assisted dealing with repair and maintenance of road-building equipment and motor vehicles; and the third, USAID assisted trai'ning skilled and semi-skilled workers for water supply projects. The NatiLonal Electricity Corporation has a training center for electricians and the Swedish Technical Assistance Mission also runs a training course for electricians, while the British-Yemeni Agricultural Center conducts some training for operators of power pumps and agricultural machinery. Other training institutions being planned are: a fisheries Development Training Center, under the Ministrv of Agriculture, which will train fishermen in boat building, gear technology and engine operation and maintenance and a Workers' Cultural Center to be established with Algerian asssistance under the Ministry of Labor and Social Services, which would include instruction of unskilled labor in technical occupat:ions and training in some trade specialization.

21. Agricultural education is not yet formally established in YAR. All Yemeni experts and technicians have been trained abroad. Under IDA's first education credit, an agricultural training center at Ibb has commenced its work in 1977. The Center offers (a) a three-year upper secondary agricultural service course; (b) a one-year course (grade 10) for training animal health assistants; (c) a one-year post primary course (grade 7) to train prospective young farmers on a pilot basis; (d) experimental short courses of 1 to 2 weeks duration for adult farmers; and (e) in-service training of 2 to 3 weeks duration for officiaLls of the Ministry of Agriculture. The Center is under the responsibility of the MOE in close cooperation with the Ministry of Agriculture.

22. Until 1974, there was no agricultural extension service in the country. The first extensEion program was established for Ibb and Taiz under a UNDP/FAO project. The Esame project set up an Extension Training Center in Taiz. The Center offers E. one year post preparatory course to train extension agents until the Ibb agricultural school starts turning out graduates. In Tihama, an extension agent's training course of 7 months duration (plus two months field training) is being carried by the Tihama Agricultural Development Project. Moreover, the Agricultural Services Project (UNDP/FAO) which aims to strengthen the organization of the Ministry of Agriculture in *the Governorate of Bodeidah, is also.training extension agents (one month pre- service, one month on-the-job training) to be stationed in the Governorate's extension centers.

23. Commercial education started in 1969/70 with one school in Sana'a and an enrollment of 5 students. Presently, there are 3 schools, one in each of the cities of Sana'a, Taiz and Bodeidah enrolling 218 male students (no female enrollment). Commercial schools buildings are parts of secondary schools in the above mentioned cities. Education in these schools extends to three years above preparatory level and leads to a secondary school certificate that permits its hclders to enter the school of Commerce and Economics - 12 - ANNEX III-2 Page 7 in Sana'a University. Up until 1974/75, 79 students have graduated from these schools and almost all of them have either found a job or proceeded to Sana'a University.

(7) Rither Education

24. Sana'a Unversity was established in 1970/71 with an initial enrollment of 61 students in the Schools of Law and Sharia (Islamic Law), Sciences and Arts. The Schools of Education and Commerce and Economics commenced in 1973/74. Total enrollment in that year reached 932 students, of whom 60 percent were enrolled on a full-time basis. During 1975/76, total enrollments reached 2,304 of whom about 71 percent were full-time students. The distribution of students and staff is, given in Table 5 below. Higher education is open to all holders of the secondary school certificates and a large number of these enroll at Sana'a University. Nonetheless, an increasing number of high school graduates are still seeking education abroad (para. 27).

Table 2: STUDENTS AND FACULTY AT SANA'A UNIVERSITY, 1975/76

Students Faculty Student/ School M F M F Faculty

Education 601 63 L ) Arts 288 94 27 5 ) 19 Sciences 52 13 26 1 ) Commerce & Economics 800 75 11 - 80 Law and Sharia 299 19 7 - 45

TOTAL 2.040 264 71 6 30

/1 Although the School of Education is independent, its students attend classes at the schools of Sciences and Arts, depending on their specialization.

25. The State of Kuwait is financing the development of the University and most of its recurrent expenses. It is also financing the construction of a new campus where equipment, books and references are expected to be adequate for all schools, particularly for the School of Sciences. Two more schools, Medicine and Engineering, are expected to commence with the academic years 1979/80 and 1980/81, respectively. The overall student-teacher ratio is 30:1. However, the ratio differs among schools, it ranges from a low of 19:1 in the schools of Arts, Sciences and Education, to 45:1 in the School of Law and Sharia, and to 80:1 in the School of Commerce and Economics. Finally, the university curriculum is being altered in favor of a credit system which is expected to facilitate the enrollment of working students and reduce the repeater and dropout rates.

26. Of the 264 female university students in 1975/76, 143 (53 percent) were Yemeni. Almost 40 percent of these Yemeni females were enrolled in the School of Education as fulltime students. University officials are encouraging - 13 - ANNEX III-2 Page 8 female enrollments by providing room and board and by facilitating the accept- ance of girls into the University. Although female university enrollments have been increasing, they still constitute a relatively small portion of total enrollments in Sana'a University. However, the trend of rising female enrollments is likely to continue. It is expected that most of the future female enrollments would be absorbed by the School of Education because it offers a guaranteed teaching job for its female graduates, who may otherwise have difficulties in finding jobs elsewhere.

27. Since the late a;ixties bilateral and multilateral fund6 have provided fellowships abroad lfor a large number of Yemeni students. In 1976/77, there were 2,314 Yemenis receiving higher education abroad versus the 3,014 Yemeni and expatriates enmolled in Sana'a University (expatriate students make up about 15 percent of total enrollments). Table 10.8 of the Statistical Appendix indicates that about two thirds of the Yemenis studying abroad are enrolled in Arab universities, particularly in Egypt where 657 students were enrolled in medicine (128), commerce (127), engineering (123), agriculture (109), and other subjects (170). Other major Arab countries that host Yemeni students were, Saudi Arabia (282, of whom 68 in law and sharia and 46 in engineering), Iraq (173, of whom 52 in economics and political sciences and 30 in medicine) and Syria (109, of whom 25 in agriculture and 24 in engineering). Socialist countries host 707 Yemeni students, or about 31 percent of the total. The majority of these students (476) were in Russia with 124 in medicine and 158 in engineering. The P.R. of China had 77 students, 70 of them were in engineering. Western countries train only 44 Yeme.nis, about half of them in the F.R. of Germany. 1/ Iran comes at the top of the non-Arab developing nations and trains 32 Yemenis, of them 17 in medicine. Of the students sent abroad, the majority specialized in subjects related to engineering, medicine, agriculture and economics.

1/ The geograhical distribution of Yemenis studying abroad is misleading since a large number of US AID supported students are enrolled at universities in Egypt, Lebanon and Turkey. - 14 - ANNEX III-3 Page 1

FOREIGN ASSISTANCE IN EDUCATION

1. Foreign assistance to the education sector amounted to YR 148.4 million, or 84 percent of total capital expenditures on the sector, during the 3-Year Program period, 1973/74-1975/76.

Capital Expenditures on Education, by Source, During the Three-Year Program, 1973/74-1975/76 (YR Million)

Source Amount Percent of Total

Yemeni Sources 28.1 15.9

Foreign Assistance 148.4 84.1

Total 176.5 100.0

An even larger amount (YR 357) is expected to be provided by foreign donors during the Five-Year Plan (see Tables 10.10, 10.12, 10.14 of Statistical Appendix). Below is a brief discussion of the major contributors.

International Development Association (IDA)

2. IDA is currently financing two education projects as follows:

(a) First Education Project - A $10.8 million credit of a total project cost of $16.95 million. The project provides for (i) building and equipping one secondary and three primary teacher training institutes, three upper secondary schools, two vocational and one agricultural training center; and three non-formal basic training centers; (ii) equipping of three primary teacher training institutes, three upper and lower secondary schools; and (iii) establishing of the Project Unit and providing technical assistance for-Project implementation. A key feature of the project is the establishment of a UNDP/UNESCO Task Force to advise the Govern- ment on the restructuring of the Ministry of Education and in developing a long-term strategy at all educational levels.

(b) Second Education Project - An $8.0 million credit of a total project cost of $11.9 million. The project provides for (i) constructing, furnishing and equipping (a) two primary teacher training institutes for girls; (b) four district training centers; (c) village level training facilities to be financed under a basic training fund; (d) two vocational training centers; and (e) one educational materials production centers; (ii) equipping four existing primary teacher institutes for boys; and (iii) related technical assistance. - 15 - ANNEX III-3 Page 2

3. The physical implementation of IDA's First Education Project is proceeding satisfactorily after initial delays in staffing the Project Unit and the UNDP/UNESCO Task Force. Construction of all project institutions is presently under way anc expected to be completed by Fall 1978. However, the realization of the Projects' objectives continues to be constrained by the uncertainty of the funding of technical assistance costs resulting from the UNDP financial crisis. As a result, further recruitment of Yemenis for training abroad and expatriates for the constructed institutions has been temporarily suspended. The YAR Government is aware of the seriousness and urgency of the problem and is actively seeking funds from other sources. As for IDA's Second Education Project, its physical implementation is proceeding on schedule despite the cost overruns resulting from the escalating construction costs.

UNDP and UNESCO

4. Of the four UNESICO technical projects only one large-scale project is presently under execution, the development of educational programs and institutions. The project is designed to support IDA's two educational projects. However, due tco reductions in UNDP's financial resources the Yemeni Government is presently supporting the project while new sources are expected to be found to continue the project after 1977. The project's objectives are: (i) to as¢sist in the reorganization of the Ministry of Education; (ii) to help in developing new curricula, teaching materials and methodology; (iii) to help in developing new designs for new school buildings and prepare plans and procedures for their construction and maintenance; and (iv) to study the requirements for non-formal education relevant to the Yemeni environment, to review advantages of multilateral secondary schools vis-a-vis other alternatives, and tc develop the most appropriate forms of women's education.

WFP and UNICEF

5. The education program receives substantial support from WFP and UNICEF. WFP has approved projects in the total amount of $3.2 million for providing food for school lunches. UNICEF, on the other hand, has been providing materials and incentive stipends for teachers and students involved with teacher training institutes and fellowships to study abroad for female students.

Federal Republic of Germary

6. The Federal Republic of Germany is a co-financier in IDA's first educational project. It contributed $0.6 million to provide staff and equipment for one vocational training center.

People's Republic of ChinE

7. The People's Republic of China (PRC) established and financed Yemen's first technical school in Sana'a. The school trains middle level technicians in a five-year post-primary course. The PRC is still supplying Chinese instructors and training some of the school's graduates in China. - 16 - ANNEX III-3 Page 3

USSR

8. The USSR supports a technical school in Taiz, similar to the one supported by the PRC in Sana'a. Moreover, along with other Communist countries, the USSR supplies a large number of university scholarships for Yemeni student to study, particularly in medicine and engineering.

Arab Countries

9. The State of Kuwait has been financing most of the capital and operational expenditures of Sana's University. Presently, Kuwait is committed to finance the construction and equipping of a new campus for the university. The size of the funds, as most Arab educational assistance to YAR is not known. Another regular Arab aid comes from Abu Dhabi ($1 million) which is financing part of the operational costs of IDA's First Educational Project.

10. Other Arab educational assistance to YAR has been substantial but unquantifiable. Most of Arab aid (mainly coming from Saudi Arabia, Kuwait, Libya, UAE, and Iraq) is directly allocated to executing the project with the related embassy as the executing agency. A large number of schools at all levels, particularly in the major cities, have been built by these kinds of grants. In addition, some of these countries provide the Yemeni Government with funds to hire teachers at all levels. Other countries, including Syria, directly provide teachers on grants bases. In all these cases there are no known records of the expenses. ANNEX IV - 1 THE PLANNING MACHINERY IN THE YAR Page 1

PRIME MINISTER L I -~~~~~~~~~~~~~~~~~~~~~

fHIGHERR I MINISTRIES ANDF, DEVELOPMENT D GOVERNMENT COMMITTEE DEPARTdMENTS _

MINISTER OF DEVELOPMENT AND CHAIRAN, CPO

STATISTICAL TECHNICAL TEAMS OF & PLANNING ASSISTANCE EXPERTS IN UNITS UNITS SPECIFIC DEPUTY PROJECTS CHAIRMAN, CPO

L INTERNAL DEPARTMENTS 7 l ~~OF CPO,

iBRACHES IOF CPO |

LANNING

---VROJECTS

FOREIGN AID

-in..STATISTICS

ADMINISTRATION

* The CPO has two regional branches in the governorates. - 18 - ANNEX IV-2 Page 1

FUNCTIONS PRESCRIBED BY THE CPO FOR ITS 5 DEPARTMENTS

Planning Department

Conduct economic studies for the preparation of the development plans.

Prepare plans to achieve the general goals of economic and social development, having regard to the available resources and potential- ities of the country.

Prepare economic and social policies and procedures which will help to develop the country and contribute to the achievement of the plans.

Projects Department

Study projects submitted by ministries, departments and public corporations, and determine project priorities in terms of the general plan.

Follow up on project implementation, according to agreed time- tables. Prepare reports on projects and their stage of implementation.

Determine the reasons for good project execution, or for shortfalls, and propose procedures for improved implementation.

Foreign Aid Department

Supervise the contracting of foreiga loans and technical aid, and direct the utilization of loans according to the development plan. Formulate the necesssary procedures for the proper utilization of loans, and provide for their repayment.

Coordinate, according to the provisions of the development plan, the applications for technical assistance submitted by the ministries, departments and public corporations.

Statistics Department

Conduct the census, partial and comprehensive surveys. Collect statistical data, analyze and publish them. This department is the formal source of all statistical data in the country.

Assist the ministries and government bodies in establishing their own statistical and planning units.

Coordinate the work of these statistical and planning units, so as to facilitate the supply of data for planning by the CPO. - 19 - ANNEX IV-2 Page 2

Administration & Public Finance Department

Organize the internal regulations, finance and accounting procedures of the CPO. Prepare the CPO's yearly budget.

Preserve the CPO records and documentation.

Undertake the personnel functions for CPO staff.

Source: Central Planning Organization. - 20 - ANNEX IV-3

LIST OF AGENCIES OF THE CENTRAL ADMINISTRATION

1. Ministry of Foreign Affairs 2. " " Internal Affairs 3. n of Economy 4. n t Finance 5. n Supply 6. n of Agriculture 7. n tt Comm mications 8. i " Education 9. " " Health 10. " " Works and Mumicipalities 11. to Social Affairs, Labor and Youth 12. " " Information 13. " " Justice 14. ReligiousR Endowments 15. Highway Authority 16. Mineral Resources Department 17. Customs Department 18. Taxes Department 19. Zakat Department 20. Central Planning for Control and Accounting 21. Central Planning Organization 22. General Secretariat of the Prime Minister's Office 23. General Secretariat of the Council of High Coinnd 24. Department of Possessions 25. Civil Service Department 26. National Institute for Public Administration 27. General Secretariat for Supreme Committee for Correction 28. Administrative Secretary 29. Puaishment Court 30. Office for Governorate Affairs 31. Office of the Legal Adviser 32. Office of Tribal Affairs 33. Office of Direction and Guidance

Source: Civil Service Department - 21 - ANNEX V-1 Page 1

DEVELOPMENT OF FINANCIAL INSTITUTIONS

1. Few of YAR's modern financial institutions have been in existence for more than five years. Most of them have not had much operating experience; their activities are restricted to limited geographical areas; and their effectiveness is severely constrained by staff shortages. Following is a brief review of the present institutional set-up and its historic evolution.

(1) Government Budget

2. The first comprehensive government budget to be published in YAR dates back only to 1973/74. Before the 1962 Revolution, no distinction was even observed between the personal finances of the Imam and those of the State, and between 1962 an 1972, financial data were not available for either public enterprises or municipalities. The 1973/74 budget was the direct result of the budgetary reform initiated in 1972 by the Government with technical assistance from the IMF, which led to the establishment of the Central Budget Bureau. The functions of the Bureau, which was directly attached to the Prime Minister's office, included the formulation of budgetary policies and the development of proper financial practices and procedures. In 1974, the Bureau was absorbed by the newly-established Ministry of Finance, which replaced the old Ministry of Treasury, an institution with archaic structures and methods. Other major recent improvements include the introduction of a comprehensive system of budgeting and accounting, supported by regulations and a manual of instructions, and the issuance of separate budgets for public and mixed enterprises following the same classification as the general budget.

3. The process of budget preparation begins in January, six months prior to the start of each fiscal year (July 1), when the Ministry of Finance issues a circular 'to all Government entities, stating the basic guidelines for the preparation of revenues and expenditures estimates. Once received, those estimates are consolidated by the Ministry of Finance (Budget Department) and reviewed by a High Cormmittee composed of the Ministers of Finance and Economy, the Heads of the Civil Service Commission and the Central Planning Organization (CPO), and various officials of the Ministry of Finance. The Ministry then submits the budget estimates to the Cabinet of Ministers and the Constituent Assembly for c:onsideration and review, and, after their approval, the budget is presented to the President for final approval.

4. The final budget: document is generally issued in June of each year and contains revenue estimates by department and by source, as well as expenditure estimates by department and by functional categories (defense, health, education, etc.). In addition, expenditures are also classified into five chapters: the f'irst three cover current expenditures; the fourth, capital expenditures financed by the budget (substantial amounts of capital expenditures are made fromt external loans and grants-on an extra budgetary basis); and the fifth, data on the Government's lending and borrowings, external grants, externally financed subsidy programs and subscriptions to the capital of regional and international organizations. - 22 - ANNEX V-1 Page 2

5. Budget accounts are recorded on a cash basis and kept within the Central Accounts Department of the Central Bank, which functions as the Gov- erament's fiscal agent. All resources of the Government must be deposited with branches of the Central Bank and all expenditures must be authorized by budget officers permanently attached to those branches and responsible to the Ministry of Finance.

(2) Tax System

6. There is presently no consolidated General Tax Code in YAR, although one is under preparation and is expected to be ready in 1978. The YAR tax system is the outcome of many changes and piece-meal reforms, most of which were introduced during the last seven years. It is still marked by a multi- plicity of taxing authorities and a variety of old and new taxes. Recognizing the main constraint faced by the Government in the development of a modern tax system, i.e. a severe shortage of skilled and experienced manpower, the IMP in a report on tax reform in the YAR (1974) emphasized the need for simplifica- tion in order to facilitate tax administration. Attachment A shows a summary of the tax system, as prepared by the IMF in 1974, and revised to take into account recent modifications.

7. The Religious Tax (Zakat), which is a traditional obligation levied in Moslem societies, takes the form of various wealth and poll taxes on agricultural crops, cattle and some personal property, still collected partly in kind, and is assessed on a voluntary basis. Since 1977, three-fourths of the Zakat receipts is turned over to local development associations to help finance expenditures for education, roads, public health, etc. The administration of the Zakat is under the-responsibility of an independent Government agency, the traditional Tax Department.

8. Income taxation is characterized by a schedular system, which dif- ferentiates between sources of income. Taxes on wages and salaries are with- held by the employer and based on a progressive rate scale (15 percent for higher brackets); the burden is, therefore, relatively higher on Government employees for whom assessment and collection are easier. Corporate tax rates are rather low (25 percent on higher brackets for non-concessionary enterprises and 35 percent for concessionary ones) and compliance is impaired by difficulties in assessment and collection (particularly in the case of small enterprises, which do not keep accounts on a regular basis). The IMF proposals (see paragraph 6 above) include replacement of the progressive rate scale by a uniform 40 percent flat rate regardless of the corporation's form and size of profits and lowering of personal exemptions for small businessmen.

9. More recently, the Government passed a law (No. 22, February, 1976) instituting a 1 percent turnover tax on transactions exceeding YR 100,000. Turnover tax payments are allowed as credit against the corporate tax; however, any amount exceeding the corporate tax obligation will be kept by the Treasury.

10. In the field of import taxation, which at present is by far the highest yielding form of taxation in YAR, important reforms were introduced - 23 - ANNEX V-1 Page 3

in 1972, leading to the current tariff schedule based on the Brussels Tariffs Nomenclature (BTN). Originally, all imports were subject to duties (at rates ranging from 1 percent to 167 percent), but foodstuffs were exempted in 1975. The Customs Department, whiich has been in existence for a longer period than the Tax Department, suffers to a lesser extent from the lack of competent and experienced staff, but has obvious difficulties in facing the recent increase in the volume of imported goods. Smuggling (mainly from Saudi Arabia, where duties are substantially Lower) has only been curbed partially, due to the difficulties in effectively controlling the borders.

11. Excise taxes are levied on specific products and services, such as cigarettes, hydrocarbon o:ils and motor vehicles. In addition, fees are charged for passports, driving licenses, identification cards and stamp duties are applied to juridical acts and other official papers. Finally, the Government has promulgated in January 1977, in an effort to curb real estate speculation, a decree imposing a 10 percent tax on sales of residential land and real estate in all major urban areas.

(3) Banking Sector

12. Prior to 1964, the only legal tender in YAR was the Maria Theresia Thaler 1/ which in the nineteenth century had become accepted as the principal medium of exchange in the Red Sea area. In February 1964, a law established the Yemen Currency Board and vested it with the exclusive right of issuing currency and enforcing exchange control regulations, while the Yemen Bank for Reconstruction and Development (see para. 15) acted as the Government's fiscal agent. The law designatecl the Yemeni Rial (YR) as YAR's currency and defined its value as equalling 0.829 g. of pure gold.

(a) Central BaiLk

13. A law promulgated in July 1971 revoked the gold parity provision and created the Central Bank. Established with the assistance of IMF experts, it now assumes all customary central banking functions, previously performed by the Yemen Currency Boazd and the YBRD. In addition to issuing currency, it regulates banking and credit and acts as a banker to the Government. The authorized capital of the Central Bank is YR 10 million.

14. The Central Bank's management is vested in a Board of Directors con- _sisting of a Governor (presently the Prime Minister), a Deputy Governor, a representative each from the Ministry of Finance and the Ministry of Economy, and three other directors nominated by the Minister of Finance. Both the Governor and the Deputy Governor are appointed by the President of the Republic for an initial period of f'our years and are eligible for reappointment. The Governor is the Chief Executive Officer and is responsible for implementation

1/ The Thaler is an Austrian silver coin with a metal composition of four- fifths silver and one-fifth copper; its value in the immediate post-World War II period varied between US$0.75 and US$0.95 depending on the market price for silver. - 24 - ANNEX V-1 Page 4 of the policies determined by the Board, which meets at least once every two months. The Central Bank completed its internal organization by 1973/74 and comprises the following departments: Central Accounts; Government Accounts; Foreign Relations; Treasury; Legal; Research; Banking Control; Internal Audit. A Credit Department (responsible in particular for rediscounting operations) is also planned. A Clearing House was created in September 1975 to handle, under the supervision of the Central Bank, interbank transfers for the city of Sana'a. The Central Bank has its headquarters in Sana'a and branches in each of the ten Governorates 1/; branchea are also planned in Mocha, Radaa and Salif.

(b) Commercial Banks

15. Although private banks had been operating intermittently in YAR before the revolution, a national banking system was started only in October 1962 with the establishment of the Yemen Bank for Reconstruction and Develop- ment. The YBRD was set up as a public sector institution, with a minority private Yemeni shareholding (49 percent), after the Government took over and renamed the National Commercial Bank (a Saudi private bank) which had been operating branches in Taiz, Hodeidah and Sana'a. It acted as the Government's agent for monetary policy and only depository until the creation of the Central Bank in 1971 and it retained its monopoly position in the area of commercial banking until 1972 when four foreign banks were granted licenses to open branches in the country. Moreover, YBRD is still the major development bank in Yemen, although this function will progressively be taken over by the Agri- cultural Credit Bank, the Yemen Industrial Bank and the Rousing Credit Bank.

16. Although it has lost its previous monopoly position, YBRD still remains the most important commercial bank in the country. With a capital of YR 100 million, it retained, as of December 31, 1975 the largest share of all commercial banks in both deposits (78 percent) and advances and loans (72 percent). As the Government's principal development bank, it has a number of participations in public and mixed enterprises (for about YR 17 million): Yemen Petroleum Co., National Tobacco and Matches Co., Yemen Drug Co., Yemen Printing and Publishing Co., General Cotton Co., Mocha Agriculture Co., Yemen Foreign Trade Co., Mareb Insurance Co. YBRD has been continuously generat- ing profits since 1962 and had accumulated YR 31 million in reserves as of December 31, 1975.

17. YBRD's Board of Directors consists of eleven members, six of whom represent the Government and are appointed by the Minister of Economy. The remaining five members are elected by the private shareholders. The Chairman of the Board, a Government appointee, is the chief executive. The organization of the Bank consists of the following departments: Research; Legal; Control and Inspection; Central Accounting; Administration; Credit; Foreign Relations; Investment. The YBRD has its headquarters in Sana'a and a network of six main

1/ A list of all branches of banks in YAR is given in Attachment B. - 25 - ANNEX V-1 Page 5 branches, which it intends to expand in the future; in addition, it provides limited banking facilities through its twelve agents located in smaller towns and villages. There are also plans for the opening of YBRD's first branch abroad, in Abu Dhabi. YTEIRD's staff includes approximately 1500 employees.

18. Seven foreimi banks now operate in YAR. The first experiences of foreign commercial banks in Yemen were short-lived; in 1949 Banque de l'Indo- chine (French) opened a branch in Hodeidah without much success and closed it after two years; the National Commercial Bank (Saudi) was taken over by the Government in 1962 (para 15); finally, Bank Misr, an Egyptian bank which had been operating in Sana'a from 1962, liquidated its activities in 1967 following the Egyptian disengagement from the war. The foreign banks presently functioning in YAR have come in two stages: in 1972 four banks-Habib Bank (Pakistan); United Bank (Pakistan); British Bank of the Middle East (U.K.); and Arab Bank (Jordan)--opened a total of six branches in Sana'a, Hodeidah and Taiz. In a second stage, three more banks followed: in 1975, the Bank of Credit and Commerce International (Saudi Arabian majority ownership) and the First National City Bank (U.S.) opened branches in Sana'a while the Banque de l'Indochine et Suez (French) opened a branch in Taiz; in 1976, the latter opened a second branch, in Eodeidah, and BBME its third branch, in Ibb. The Central Bank does not intend to grant licenses for new foreign banks in the near future, with the probable exception of Abu Dhabi Bank (as a reciprocity gesture for the opening of a YBRD branch in Abu Dhabi).

19. The foreign banks have not been as successful as YBRD in attracting deposits; this may be explained by: (i) YBRD's longer experience of operating in the country; (ii) restrictions imposed on foreign banks' branch expansion; and (iii) YBRD's monopoly on public enterprises' deposits. Foreign banks, on the other hand, play an increasing role in the financing of the private sector, due mainly to their knowledge and facilities in the foreign banking business (as of June 30, 1976, two-thirds of all outstanding loans to the private sector were-made to finance imports). Particularly active are the British Bank of the 1Middle East and Banque de l'Indochine et Suez, which benefit from long existing business relationships with Yemeni businessmen previously settled in other areas of the Red Sea (Aden, Ethiopia, Djibouti) and now returning to YAR. Their staff includes respectively 120 employees (of which 11 expatriates) for BBME and 150 (7 expatriates) for Banque de l'Indochine et Suez.

20. -The capital of a new privately owned Yemeni commercial bank, the National Bank of Yemen, is presently being subscribed among the Yemeni business community (YBRD may take a minority participation). This institution is still in the organizational stage, and it is assumed that its management would be composed of Arab Expatriates.

21. In recent years, substantial progress has been made in developing a system of specialized credit institutions. An Agricultural Credit Fund (ACF) was established in 1974, as an affiliate of the Central Bank, in con- nection with IDA's Tihama Development Project (IDA Credit No. 376-YAR). - 26 - ANNEX V-1 Page 6

Subsequently, an Agricultural Credit Bank (ACB) was established by the Govern- ment in September 1975, with the aim of ultimately extending agricultural credit to all regions of the country. More recently, in July 1976 and July 1977, the Government set up the Yemen Industrial Bank and the Housing Credit Bank as counterparts of the ACB for manufacturing and handicrafts and housing.

22. The Agricultural Credit Fund (ACF), established in 1974 under an agreement with IDA to administer credit provided in the Tihama Development Project, has since been selected as the financing channel for three other IDA Projects: the Southern Uplands Rural Development Project (SURDEP) (IDA Credit No. 545-YAR), the Grain storage and Processing Project (IDA Credit No. 636-YAR), and the Livestock Credit and Processing Project (IDA Credit No. 662-YAR). As of December 31, 1976, about YR 3.5 million had been provided to the Fund and loans disbursed were about YR 2.9 million, essentially under the Tihama and SURDEP Projects. Interest rates are 8 percent for long and medium- term loans, and 9 percent for short-term loans (up to one year); as a general rule, the loan applicant has to contribute 20 percent of the total investment costs in cash or kind, and has to provide the Fund with a certificate of land ownership as security.

23. The Fund's main policy making body is the Board of Directors of the Central Bank and its Chief Executive in title is the Governor of the Central Bank. The day-to-day management of the ACF is under the responsibility of the ACF Manager. The Fund's head office is in Sana'a but 26 of the 28 employees (including three expatriates) work in ACF's branches at Ibb, Wadi Zabid and Wadi Mawr. ACF also has a small office in Taiz.

24. The Agricultural Credit Bank (ACB) was established by the Government in September 1975, with a capital of YR 100 million (to be subscribed by the Government over a five-year period). The main objectives of the ACB are to extend credit in cash or kind to develop agriculture, irrigation, forestry, livestock production and agro-industries in all parts of the country (taking over, in particular, cotton crop financing, a function previously assumed by the Central Bank through the General Cotton Co.). It started operations in July 1976 and the first financial statements (audited by independent chartered accountants) were published in 1977. As of September 1978, ACB had committed YR 52 million (of which about half seasonal - short-term - loans). Until April 1978, interest rates were set at 8 percent for long and medium-term loans, and 9 percent for short-term loans. Presently, however, interest rates are set by the Central Bank at 6 percent and 7 percent respectively. Lending regulations are similar to ACF's, with the exception that the applicant must cover 25 percent of the investment cost with its own funds, instead of 20 percent required by ACF. In the future, ACB intends to accept deposits from farmers, although no decision has been taken yet as to the interest rates that would be paid.

25. ACB's policy making body is its Board of Management comprised of six official and one non-official members. The Chairman-Director is the Chief Executive and is assisted in the day-to-day management of the Bank by the Deputy General Manager. ACB's headquarters are in Sana'a and loans are processed through its own branches in Sana'a, Hodeidah and Beit-El-Faquih as well as through ACF's branches. The opening of a new branch in Damar is - 27 - ANNEX V-1 Page 7 planned for July 1977, andi ACB expects to have a branch in each Governorate before 5 years. The bank's staff presently numbers 59, including 4 expatriates.

26. There is presently some duplication in the functions performed by both ACF and ACB, callLng for the merger of those two institutions. (ACF was originally intendued, under the Tihama Project Agreement, to grow up ultimately into a permjnent national agricultural credit institution). In January 1977, the Government proposed to incorporate ACF within ACB and discussions are presently underway as to the modalities of such a merger, with the aim of ultimatell establishing a single, independent, and financially viable agricultural credil: institution.

27. The Yemen Indusl:rial Bank (YIB) was established by the Government in July 1976 and started operations in early 1978. Seventy percent of its authorized capital of YR 1L0 million will be subscribed by the Government (45 million within one year of establishment and another 25 million according to the needs of the bank). The remaining 30 percent of the capital is to be subscribed by the private sector (as of March 1977, YR 6 million had already been paid in). Commercial banks have been specifically invited to participate in the capital subscription, but there is no indication that any of the foreign banks would respond, probably due to the lack of financial incentives (YIB's dividends at -a guaranteed minimum rate of 6 percent are also limited to 10 percent by law).

28. The main objecti,ves of the bank are to encourage the development of new industrial projects; and the expansion of existing ones, and to promote local small industries and handicrafts. YIB's participation in industrial ventures will be through: (i) medium and long-term loans (up to 10 years); (ii) equity contributions (not to exceed 25 percent of the capital of any one corporation); (iii) technical assistance; (iv) providing guarantees and acting as a catalyst for the securing of financing from other sources, As of September 1978, the Bank has granted 20 loans totalling 67 percent of its paidt capital (YR 64 million). Until March 1978, interest rates ranged from 7.5 percent to 9 percent for medium and long-term loans, Since then, the rates are set at 6 and 7 percent: respectively; but YIB is charging one percent study fee on financed projects. In order to qualify for financing by the YIB, ownership of the venture will have to be at least 51 percent Yemeni, whether private or public.

29. YIB's Board of Management c'onsists of seven members, five of whom, including the Chairman, are Government appointees. The Chairman is the Chief Executive, assisted in the day-to-day management by the General Manager. The headquarters of the Bank are in Sana'a and no other office is to be opened in the foreseeable future. The organization of YIB consists of two main departments: the Research and Projects Department (including three divisions: Technical, Economic and Financial Analysis) and the Administration Department (including the Administrative Services Division and the Accounting Division). The bank's staff presently counts 14 employees, a number of whom are still under training with the Industrial Bank of Jordan. - 28 - ANNEX V-1 Page 8

30. The HousinR Credit Bank (BCB) was established by the Government in August 1977 with a capital of YR 100 million, of which the Government owns 70 percent. The remAining 30 percent is to be subscribed by the private sector. Lending rates range from 5-7 percent annually, and maturities between 7 years for institutions and up to 15 years for private citizens. For the latter group, preference will be given to borrowers who own a plot of land.

(4) Other Financial Institutions and Instruments

31. The insurance sector in YAR is in its early development stage. The only domestic insurance company is the Mareb Insurance Company, in which YBRD has a majority participation. Most of the trade insurance business (the only significant insurance business so far in the country), is still in the hands of foreign institutions, in spite of recent efforts by the Gover nent to promote domestic insurance; as a consequence, the importance of Mareb Company as a financial intermediary is still negligible.

32. There is presently in YAR no capital market in the proper sense. There has never been any bond issue, either public or private, and there is no formal market for the shares held by the public in a handful of mixed enterprises (whose private shareholding is believed to be relatively concentrated). The offering of YIB shares to the public, presently underway, could be the first step towards a nucleus of a stock market; YIB has plans to market its shares directly to migrant workers in Saudi Arabia (through the Association of Yemeni Migrant Workers), which could lead to a relative dispersion in their ownership.

33. The most significant development, however, might stem from the Gov- ernment's recent request to fiMF and IFC for a study of the possibilities to sell Government bonds to the non-bank public in order to tap the large amount of workers' remittances which are being hoarded mostly by the rural population. At this early stage of the study, it seems that the most promis- ing scheme would consist in promoting bonds through the network of local money dealers-agents, who presently transmit most of the workers' remittances (in lieu of the banking system, which does not yet provide sufficient physical facilities). The agents would be remunerated by a commission, and the financial instrument itself would be simple and understandable, bearing in mind the traditional attitudes of potential buyers of such bonds.

34. Finally, it should be mentioned that there exists in YAR neither a national social security scheme, nor any system of pension funds (either public or private). Civil servants, however, receive free medical and social services under regular budgetary allocations. This situation is not likely to change in the near future.

(5) The Informal Sector

35. Despite the increasing role played by financial institutions, both private and public, the existence of a relatively important "informal" sector remains a main characteristic of YAR's financial system. Money dealers, who - 29 - ANNEX V-1 Page 9-

before the establishment of the YBRD in 1962, were the main financial interme- diaries in the country, still handle a significant proportion of all foreign exchange transactions, private as well as commercial. In particular, they play an essential role in the channeling of workers' remittances from abroad.

36. The following is the description of the mechanism by which most of those remittances are transferred into YAR: typically, a Yemeni migrant worker would give Saudi Rials to a Yemeni money dealer in Saudi Arabia, and get from him in exchange a draft drawn in Yemeni Rials that he sends (via mail or messenger) to his relatives in a rural YAR town or village; this draft is then presented to and honored by the money dealer's correspondent (agent) in YAR (who travels regularly to the villages in his area). On the other side of the transaction, the money dealer in Saudi Arabia transfers the equivalent amount in foreign currency to his account in a Yemeni bank in order to honor the draft subsequently presented by the agent; in a final stage, the Yemeni bank will convert into local currency with the Central Bank, the foreign currency it has received.

37. The services provided by the money dealer and his agents are remunerated through the spread of foreign exchange, and fees charged from the transmission of funds. There are reportedly about 15 money dealers in each of the three largest cities (Sana'a, Hodeidah, Taiz), who have established a solid business reputation. An additional function performed by the money dealers, which is worth mentioning, is their providing the worker's relatives with advances (often interest free), while they are waiting for the remittances to arrive. Overall, in spite of the problems stemming from the fact that this "informal" sector is substantially out of the control of the Govern- ment, it appears to provide a useful and efficient service; in any case, it is more than likely that it will retain a predominant role, as long as YAR's banking infrastructure remnains weak. I .~~~~As A

Is- ~~ ~ ~ ~ ~ ~ ~ ~ ~ -.

a 1 j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~j1u

13HI~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 31 -

Attachment A Page 2

Am t in To n ial)

Tan etew. of Tax 3eptie and Dedoctist faks"

2. TAZS ON COWOSAN iVXCS

2.2 Solentiv xcise

2L21 Ciga4ettes An excis* 1.vd an the Qwowp Eam. 2 bukeb pe packee of 20 cigarettes La No. 13 of 1965 tion of lacally pioduod as I buka per packt of 10 cigrattes well as imported geSwttes. It is easesd and eOlleted by the Tex Deperkmnt. 122 Soft drinks A specific tax on locally po- Sam. 1 bukaba per bottle. (A goeinnt duced oft drink. decisim)

2.23 lydrocebo oils Specific tag on petroleum Sca.int 10 bukbs per liter Law No. 4 of 196t product emsemed in T_on. Laroeie 3 bukabs per liter as nded by Assessed *d colleted bY Terp nties: 2 buksba per liter La No. 11 of 196 Te Departunt althoug Ge0 oil ad groase: 9 bekbha per kilo Law No. 4 of 1973. there is nk refexy to Puel oil and other products 3 bukeha tb countrr. per liter. 2.3 Selective abcieoe on ervICes 2.31 Trensportation A Us an the purorse of Ticet issoed ftr oent per ticket. Las fo. 13 of 1969 evr_as tickets rerd- _loyes on official trvel lees of thb valu of the end for studentstudylas ticket. abroed. 1.32 Ta on entertaitnt A scific tax on adiesion 1oe. Mtovies: 2-5 bukabh La1. Do. ii of 1969 to mevies and stag, plays. Sheeter: 15 percent of the value of the ticket.

2.3 Motor v_hicl taxes An e al taz levied on eotor Vehicles med by fOVaMent, Prtvate cars: Tlis 55 for care witb La So. 27 of 1968 vehicles and bitayls at rates umbenr of dipl e eeticcorps, five osts or lss. plus TRIs 25 for varying according to the an officials of intarmtionel each additional seat. sage and n orf s"to. ornicetions *accordirsg to Taxis: OIls 125 per vehicle with specfic rul_. five _Ats or less pisc TRle 25 for Vehicles o_I by bhpitals1 n *ech Additional set. mdical issicai . Duasa: YU 25 per set. Trucka: The 150 per tome., provided capaecty does not xosed 1 1/2 tons. Fer eack afditioal ton, the rat is 15.1 350. Bicycles: fern TIs 10-25.

3. TAZS ON ITNSXXORAL TSADh AD IDANSACrIcNS 3.1 7 o vS-rtsm 3.11 Custom duties Virtually all tiports (excluding Iport by goctrmet* vesnicipeli- ates rp fern 1 prcet to 107 prernt Law No. 56 of 1972 foodstuffs) an subject to the ties end diplntic crps. dpendfn an the meessity to consumors rates icrlerated in the R"tion for five yers for and the ned for industrial dvelep_nt. Custom tartff consisting of rw otserials. capital equip- Rates no cirettes and tobacco are oe eln aedbased on the mnt. nd mchinery ted by 167 sod 107 percent, respectively. Brussels mnclatu. enterpries benefiting fto Dutiable baes is c-i.ff values. tbh ir_estnt I1. checked tagast adeiniatrative values datet-u4ed by the Custom Depert_et ith the collabortio of otbhr related agencies. Date aer ad valo2m witb s0 diffeen- tiation according eto the origin. Yen Is not a I_r of the GiT and consequently the Mot fevod nation clms is not ppitd.

5.12 Defener tax An edditincol tax levied an all Sw as udercost dt 5 peent of c.i.t. value or the Low No. 7 of 1969 imports. Prcedures of asses- administrative value. .t and collection ar the s 's thos of ozetem duty.

3.13 Statistical tax An edditio l duty levied en Sane under ete duty aend 2 preent of c..f. value of the Law No. 8 of 1969 iwports, defe tax. adxnistrative valu. - 32 -

AttachOst A Page 3

(_ts in l Uhs)

Toa Meturn of Sea t _tlma end Lots flate

3.2 Tmen as 3.21 Reet_ly dhls jevied e Got. an Aet expT oab tben bt. 12 p t l_ No. 56 of 1972 f.o.b. bests 3.22 Deie t_n An U1t11 day ied - anl NOm. 5 eromo l ge. 7 of 196"Orts imjldi thee. en- amStd km- I,p dyL based - th f.e.b. ve. end oolloeIMet -.t as tbee to _epect duts.

*. Om AMSl

4.1 RJlJjhg* t (shes) In t!edLtioil Notios moieties Zahet is a llgimsu obligaCm (Yaed) lawied ta 1sa ay end tise is jePartese to prspe. Tbi tern mo a _ of differet tSam t - km a poll 6= to a tm ae pite. Tie ptooe"e of ".msint l osileotim de Mt Lmd timealys to opehmsve aalyois but tbar vary considerably acoordie to tbh nature of aech Zalat. ColUetion is te cash or kind.

4.11 Agioultoel Sat An sinal 1ev O egricaltual Ose_ 10 pernet of the valu of crps elop. FolleL to 1962 urn lcd_eeed by rain, eud revlucim It i s asssed n 5 p of arps tr leand o self-beis sins tmpyers irtleated by eof for. bey to decla" thetr Sme 1p-Ca l Step.

4.U2 Cattle Zakt An cme tea a cea, mis. Cattle used In ag nitwal Tinmd for eab type of cettle, sheep, oa goats. sotvtty sobject to the be- el-ogh it nItlee aoo ding emtsud Sbet, to the mobr of tnd cattle. I.1S uIeth Zahn An cn t= lawted o ld, "old laes tias 20 dim. 2.5 oeof Lo. silv_, ad cepital uaed to Silvr lass thee 200 M. busimnes provided that tbey Personal Jewlry. Laccne a_e o d for at loan me o cttd in obtalng busne" 7 *r. captaL.

4.14 Poll ta An asmal t6 lt"d m elly RoeS alt Notic sad his depe. de=t. Peyable at the ed of _msas.

4.2 It-= duteos The e duty L applid to ell son The rStes biceb cam he Specifit l_w boe IS of 1963 pepr mn whih sae desscivi PROoftiml, or proge" is ore e ouded by 3m Mo. e ml jurLice actS. It t1 eutlined is tables aru cbad to of1964 end Lo O. 14 Also levie an oeais tids. the duty spoctbfo the nature Of 1969 setfis rgitratme, Sad of the duty to be cellected and printed ester. Payeso of the rots M Such tiessetio. the duty is svUdeo by a Table I stipIat-s docneuts stow or m ote _methoed, subject to stped peprs sod tbher etss. Table 2 towers pro- portiel sO progroresve duties. Tabls 3 and 4 dal wth dutis, en do_mnto related to &door siJig ed trOmortatIon. Teble 5 ticcr. pets the Opeofc *t_ oduties. 4.3 Ral uas:%t; ual a The t6 in epliod to tresa- Agrimitol lend. 10 p of veI_. D ef1977 a -tican all m-agriaultorl led within a spectfied rodius of te city emosi, ubchbwarie ties 20 miles cer Bodeitb oM 10 mils" t Sav -a. to 2 aule go Mbant. The Mistries of PbUe Moths cd Justte am require ewl,~ of te p bewo st titing tinsf deed. - 33 -

AttAcdu4lt A

Yin= Arab leoublici lS rv of Sax Systt

Name Conditions for Approval banfits to be Accorded

lnv.stment of foreign and national caLital Bnterpriese carrying on activities in industry, Import duties and txe agriculture, mining, tourim or any othar Law No. 12 of 1970 activity necessary for strengthening the Complete exption from *11 duties and taxes national ecoony and increasing the national on iaports levied for the bernfit of the ineme my apply for b efits accorded under central goverent budget on capital equip- this law. nant, machinery, and spare parts. The uption is for the first five yasre. Enterprises to be approved should carry on activities related to utiliation of local A reduction in the rate of Import duties and primtry materials, encouraging import sub- tas levied on ry materials necessary for stituting industries or increasing ezports. production, provided that the reduced rate They also should employ Y.A.R. netionAls should not exceed 10 percent of the c.i.f. and train thb for higher technical reepon- value. sibilities. Xini- invested capital should be YRlt. 100,000 and Yle L50,000 for No exemption from port fees and charges levied nAtional and foreign enterprises, respectively, by isnicipalities. and Yile. 250,000 for tourism enterprises. Profits tax

A ciplete eXeption for the first five years fri the tax on comercial and industrial profits. Enterprises with inested capital exceeding Tile. 2 million may be granted a 50 percent reduction for a period not exceding 5 yearn folloving the expiration of the above,-mntioned ezeption period. Other benefits Profits realized by approved enterprises can be transferred abroad in the original currency and at the prevailing rate of exchange. Ixpatriates eployed by approved enterprises can transfer abroad up to 50 percent of their wages and salaries.

Sggg: DnF BBAmtES OF fIIUICIAL IWI1UTISU 16 V.A.*. (As of 12/3111961)

Bano Da-Mr I b ain hodUdabih hweit 6 Lae Saada Horeb Beidah Rad. NHcha !Sa Bait el raSth Wadi Zabid Wiadi Niwr

Central Bank need Off. Branch Brach Branch Drach trench 3ranch branch Branch Branch Branch' Branch branch - --

Commercial Bank$: IIead Oft. 't.B.t.D.I B6ranchf 2 Oft. Breach Branb Ireach Branch - - - - - Branch

British Bank at the NH. Branch Brach Bead Off. ------

anque de L' indochine h'ed et Sue. Off. Breach ------

rivet National city Bank lead Off.

- - United Bank h'ead Off. ------

Arab Bank Head Ott. - Brach ------

Habib bank - eada- Ott. - - - - ______

Bank at Credit *nd Comerce International Head Off.

speclized Cradit inatitutnna

Agricult. Credit fund (ACt) 1e4d Oft. Office ------OOffice Office

A:ricu1t. Credit Bank (ACB) d Oct. Branch_ - - Branch -- nc

Tc..n In.Juatria Bank Head Oft. - - - - - _ _ _

* d 1lann.

1/ '.ttD l .in baa 12 a* nta in nanler rn.uoe*nd viliagee. - 35 - ANNEX VI-l Page 1

STATI'3TICS FOR FOREIGN TRADE AND PAYMENTS

1. A basic constraint to an analysis of the YAR's balance of payments is lack of a homogenous time series. Available information does not extend much before 1971/72. Even the more recent data suffer from a number of deficiencies. The very openness of the economy plus the freedom of men, money, and material to flow acroi;s national borders inhibit precise measurement. Equally important, the Central Bank of Yemen was established only as recently as in July 1971 and has yet to evolve a more sophisticated system of data collection and reporting.

2. Published data on the balance of payments relate only to transactions settled through the Central Bank of Yemen. And since trade is virtually unrestricted 1/ and there has never been any system of exchange controls, leakages through unrecorded trade and private transfers vitiate published data. A complicating circumstance is that private worker remittances are still for the most part hindled by the Yemen Bank for Reconstruction and Development (YBRD) which till recently was also the channel for all conver- sions of foreign exchange into local currency by the numerous aid agencies operating in YAR; the Central Bank now handles the latter transactions.

3. Data on "invisibles" are not broken down into "public" and "private"; hence, any attempt.at separating them out is largely judgmental. Information on private capital transactions just does not exist. Consequently, the item "Errors and Omissions" includes unidentified and unidentifiable amounts of private capital flows.

4-. The Central Banlc has endeavoured to correct some of these deficiencies through various adjustments; but these are for the most part based on subjective judgment. Thus; the statistics of recorded imports which are based on Customs data and relate exclusively to private imports are inflated by 10 percent for balance of payments purposes to allow for imports financed by foreign sources. To these figures are then added the Central Bank's estimates of imports on public accotnt; the latter are merely the counterpart of the drawings on foreign commodity and project loans and grants plus some Govern- ment purchases. But the data are not broken down either by type of commodity or by donor as in the case! of private imports. Similarly, export data are also adjusted to allow for unrecorded exports. Except for cotton and cotton- seed exports on which datai are firm, all other exports are inflated by a *factor of one-third to allow for such unrecorded exports. But no adjustment is made for any leakage in YAR's most important-single source of foreign exchange earnings i.e. worker's remittances.

1/ Under the new law (Nc. 23) enacted in 1975, the issuing of licenses for exports and imports has been transferred from the Central Bank to the Ministry of Finance. The latter will be guided by the national interest in the issue of such licenses. - 36 - ANNEX V1-1 Page 2

5. Furthermore, the Central Bank's method of evaluating foreign currencies, other than the US dollar to which it has been pegged (presently at YR 4.5625 to $1) through a system of cross-rates, results in differences in valuation. More significantly, inconsistencies arise in the case of capital transactions: whereas the original amounts of foreign loans are computed as of the exact date of transactions, service payments are based on the exchange rates that prevail on the last day of the quarter in -which they fall due. Thus, for example, a payment due, say, July 1 would be expressed in terms of the rate prevailing on September 30. Distortions of these kinds accouat for differences in IBRD data on service payments on external debt and for differences in the valuation of foreign assets as between the Central Bank of Yemen and the IMF. The Central Bank's presentation of data on foreign exchange reserves in its balance sheet differs from what is shown elsewhere. The dis- crepancies arise not merely from differences in classificaiton as between "convertible" and "other foreign exchange" reserves, but also because the balance sheet data are on a gross basis and do not include the YAR gold tranche position in the IMF. Per contra, the figures on YAR's foreign exchange reserves are on a net basis and include the gold tranche in the IMF. - 37 - ANNM VI-2 Page 1 YE"tEkt t 1. COUtlTP PRO E-CTS

AS OF JO JUMtE 19T6

Estimated __10nMwgSeco ExOculifi Dat EstlimBlad Udllr , Fegetnc7r a0 d comoletiofi - t _

UjjL;UtTRE.fl3P

YEM-71-511 LOWLANDS FARM DEVELOPMENT 50 FAC 06/71 01/76 470,93

YEM-71-512 FARM DEVELOPMENT OF THE IDLANOS 50 FAa 06/71 07175 582.23 242,fl YE*-71-513 FOOD AND NUTRITION PROGRAMME 60 FAO 01/71 12/75 1,576,64 3,402,38

*YEN-73-005 INSTITUTIONAL SUPPORT TO THE 60 IBRO 08/73 05/79 1,429,74 b36,8 MINISTRY OF AGRICULTURE

YEM-73-010 ESTABLISHWENT OF AGRICULTIRAL SERtVICES 60 FAO 08/73 01/80 2,961,115 474,25 AND OF A CENTRAL RESEARCH ORGANI.LATION

YEM-73-011 ESTABLISHENENT OF AGRICULTtRAL SIlRVICES 60 FAO 08/73 e2r7s 1,798,35 1.084,89 IN THE TIHANA REGION

YEf-T3-012 COTTON ADVISER 10 PAO 09/73 0177 72,50 28.17

YEN-74-003 FISHERIES DEVELOPMENT 30 FAD 11/74 03176 527,49 147,o4

YEM-74-004 COFFEE CONSULTANCY 10 FAO 02/75 05275 19,00

YEH-68-O06 TEACHER TRAINING 22 UNESC 12/68 03176 237,531

YEM-70-003 EDUCATIONAL PLANNING 10 UNESC 01/71 -04/74 1809

YEM-72-004 IIEP., EDUCATIONAL PLAN. SPECIALt ;TS 10 UNESCO 04/72 07/74 9,01

VEM-7J-0!4 DEVCLOPMENTVOF EDUCATIONAL 10 UNESC 12/73 01/78 2,199,34 2531 PROGRAMMES AND INST ITUTIONS

YEM-.S-0Gu3 STATISTICS l1 UN 09/69 01/75 BS,95

YEM-68-013 IAXATION 20 UN 07/69 02/76 143,50

YEN-71-OB LAW DRAFTING 20 UN 02/72 01/76 101,5b

*YE*72-010 UN VOLUNTEERS SUPPORT PROJECT 20 UNOP 10/72 0V/77 70B,39 *YEM-72-901 PROGRANMING MISSION 11 UNOP 10/72 11/73 4,12

*YEt-73-006 INSTITUTIONAL SUPPOR7 TO THE 20 UN 08/`3 01/77 96,48 MINISTRY OF PUBLIC WORKS

YEN-73-007 INSTITUTIONAL SUPPORT TO THE 20 UN 0ST/3 01/78 626,5 91, MINISTRY OF ECONOMY

YEM-7_-013 DIRECTOR OF CENTRAL STATISTICAL 11 UN 10/73 01/O7 135,30 8,4 DEPARTMENT (OPAS) SANA9A

YEN-73-018 PROCUREMENT OF PROJECT -VEHICLES 20 UNOP 01/74 01/78 447,27 *YEM-74-901 SPECIAL FINANCIAL MEASURES 20 UNOP 06/74 01/75 98,29 YfM-75-010 PRESS INSTALLATION AND-OPERATION AT THE NATIONAL 20 UNOP 05/75 07/75 8.00 INSTITUtE OF PUBLIC AOMINISTRATION YEM-75-021 ASSISTANCE IN DEVELOPMENT PLANNING 10 UNOP 03/76 06/79 218,05 31.9'

sPROGRAMME RESERVE PROJECT **SPECIAL MEASURES FOR LDC PROJFCT - 38 - ANNEX VI-2 Page 2

AS OF 30 JuE 1974

Estmoatra4.cI I P@ col C. ExecutingDate Esmrmad (US aoutla ewt,alaofi) dewo WIDP' cflntefaf

Te_-70-507 WATER SUPPLY SAIAA AND H010A 70 WHO 06/70 01/76 91784 1.75

yfp-TI-SIS INSTITUTE Of tffALTH ttRNPOWER D30 WHO 01/11 12/71 756*04

YTEt*-72-OO8 WATER SUPPLY ANO SEWERAGE SYSTEMS 70 WHO 02/73 01/7 701371 36.70 FOR SANA*A ANC MODEIDA

yttM-73-017 RURAL WATER SUPPLY TO WtO 01/74 01/7s 374.24 27.46

yE*-74-001 HOSPITAL AOMINISTRATION-ANO NURSING 10 WHO 11/74 01/79 553.96 1.871.SS SER V ICES YEM-74002 HEALIH MANPOWER IHSTITUTE-PHASF II 30 WH 09/74 C9/79 2.755.10 391,92

YTFP-71-803. COMPLEX SERVICE TEAM IN MAINTENANCE 30 UNIOC 08/71 02/T5 120.00 AND REPAIR OF INDUSTRIAL EQUIPMENT

T£P-72-012 INDUSTRIAL PROMOTION ANO ADVISORV UNIT 10 UNIlW 09/73 10/77 457,78B 43 6

YEN-73-911 AUTO REPAIR WORKSHOPS In SANA*A 30 UNOP 01/72 09/7O 75S960 15.T5 AND TAIZ

T*Y-74-008 ESTABLISHMENT OF MODERN BAKERIES 24 FAl 09/74 01/74 2.50t AND GRAIN STORACE FACILITIES

YEP-74-016 DEVELOPMENT OF SOFT ORIN"S INOUSTRY 24 tUNIDO 01/V5 05/75 9.00

*YEN-74-019 DEVELOPMENT OF WHEAT PULLING INDUSTRY 24 UNIDO 01/75 06/75 12.00

*StEM-75-003 ASSISTANCE TO THE FEODRATION OF INDUSTRIALISTS 30 UNIDO 01R75 05/75 9.00 AND CHAMBERS OF CCOMeRCE

*tEN-75-004 EXPERT IN TEXTILE TECHNOLOGY 30 UNIDO 01/75 06/75 10.00

*YEP75-S05 nEVELOPMIeNT Of THF PRtYTIN INOUSTRY 24 UtNIDO 0oVT5 05T75 9.00

*TEtf-5-O12 ESTABLISHNENT OF WILOINC MATERIALS INOUStPIES 21 UNIDO 06/75 10/75 12,00

*YEM-75-013 ASSISTANCE TO THE LEATHER INDUSTRY 21 UNIDO 06/75 10/175 12.00

TuITFRHATT?fNI Tu*flf f40onl %0t

YEM-71-011 TOURISM DEVELOPMENT 32 UN 01/72 06/75 37.15

I£tLf*DI R UACPNP#dT *110FlillVll t--nrUSdIA.vA

YE-68,-001 CLERICAL ANO SECRETARIAL TRAINING 50 ILO 05/69 07/75 17.22

YEt-71-007 LABOUR AOMINISTRATION 70 ILO W/71 01/77 9342C

tFI IFF *ATSTtVTFt AflOAto n s}

*tEM-tS-030 YEMENhFLOOD RELIEF ACTTON 40 UNOP 01/76 12/75 20,00 2.19

YE-73-004 ESTABLISHMENT OF METEOROLOCICAL SO WHO 06/73 01/79 79.09 SERVICES

VfE-74-006 ESTABLISHMENT OF METECROLOGICAL SERVICES 50 WHO 01/75 l1/c0 947,40 22.03

9ltAI ^ FI#IDT7Y AHO OTP '1M qgS3Vtet #70001

YEN-S-0,3 TOttN PLANtHiNC 30 UN 06/69 01/77 265.87

?eAuKpfsT AwnA efolumeirmnT t (POoA 7111h90

YTe-6-009 TELECOMMUNICATIOONS 50 ITU 01/70 01/O 8 322,56

TEN-71-0O1 CIVIL AVIATION TRAINING 40 IOAD 02/TI 12/75 8.04

TEtN-I-S10 VOCATIONAL TRAINING PROGRAMME FOR REPAIR AND MAINTENAACE OF 20 ILO 01/71 07/77 988,77 103.32 HEAVY ROAD BUILDING EOUIPMENT

YEN-71-701 ROAD IMPROVEMENT ITAIZ-TURtA) 20 IBRD 06/71 04/75 252,486

Yft-?3-003 CIVIL AVIATION ORGANtZATION 40 ICAC 06/73 07/77 1.599,17 11S.41 AND ADMINISTRATION

PPROGRAMME RESERVE PPOJECT' **SPECIAL MEASURES FOR LDC PROJECT - 39 - ANNE VI-2

YEMEN 4CONTINUEDO Page 3 11. COUNTRY PRUECTS AS OF 30 JUNE 19?h

EstUmatd projectCo`,j

Pro(~ twmb.r~ ~ and~ ~ ~ ~ ~ ~~~~ ~~~~~~Ea. (tdUS dollar 6Qu~i#fiot) < Ptolttsttrtta~~roledUlw hi Code O_evy approed kcmplw Goed _

'PYSM-73-008 SANA'A - KARIB ROAD 20 UNDP 08/73 08175 276.000

YEM-73-016 TELECOMNUNICATIONS FEASIBILITY STUDY 50 ITU 06/74 0176 6195S 2,3 YEM-?4-00? INVESTMENT FEASIBILITY STUDY FOR 30 I0RD 10/74 @41T4 139S00 PORTS DEVELOPMENT *YEM-74-007 PORTS DEVELOPMENT 30 ISRD 03/75 05/76 250,00e YER-74-011 IRAINING IN TCELEMORMUNICATION SYSTEMS TECHNOLOGY SO ITU 02/75 05176 68,400 AND ADMINISTRATION YEM-7"021 NATIONAL PLAN FOR AVIATION 40 ICAO OV/75 OltS 1450too0 17,sa

TOTAL 30,Z31,546 10,034*8,1

OF WHICH IPF PROJECTS PROCRAtME RESERVE PROJECTS 000-0t2 SPECIAL MEASURES FOR LDC PROJECTS

4PROGRAMME RESERVE PROJECT

330 Source: Uhited Nations Develomment Programme; Campenamum or Approved Projects as of June 30, 1976. - 40 - ATNIE VI-2 Page 4

I&: WUNDP Approved Projects as of Junm 30, 1976

- nillins of U.S. Dollar Equivalent - Sector Etimated Project Cost Zmber of anced by Oovermment Total Cost Projects UNDP Counterpart of Projects $ Contribution $

Agricultmze, Forestry and Fisheries 14 11.88 6.89 18.77 lEucation 4 2.46 -- 2.46 GOn. Econctic & Social Policy and Planning 12 2.67 0.24 2.91

Public Health 6 6.06 2.59 8.65 InIdstry 11 1.41 o.o6 1.47 International Trade 1 0.04 0.04 Labor Nkuagement and kbploymnit 2 0.29 -- 0.29 Relief Activities 1 0.02 0.02

Science & Technology 2 1.03 0.02 1.05 Social Security & Other Social Services 1 0.27 0.27 Transport & Cunicatians 11 4.11 0.24 4.35

Total 65 30.23 10.03 40.27

N.B. Totals may not add up because of rounding.

Source: Uhited Nations Development Programs; Campendium of Approved Projects as of June 30, 1976. - 41 - ANNEX VIII-1 Page 1

PRINCIPAL NATURAL REGIONS IN YAR

Geographical Regions

1. The Tihama Coastal Lowlands. This 20,000 km2 region is a 30 to 60 km wide area paralleling the Red Sea and the foothills of the central mountain range. The elevation ranges from sea level to 200 m at the foothills. The annual rainfall ranges between 50 mm to 300 mm, with adequate rainfall for millet and other drought resistant crops in one out of 3 years. The region has 70,000 ha under spate .irrigation and 25,000 ha under well irrigation. The area is thought to have at least 200,000 ha of land that is potentially irrig- able from improved diversion of wadi flows and through further exploitation of groundwater. The region is intersected by seven major wide shallow wadis, which are from North to South, Wadi Mawr, Wadi Sordud, Wadi Siham, Wadi Rima, Wadi Zabid, Wadi Risyan and Wadi Mawza.

2. The Foothills and Middle Heights of the-Western Slopes. This 55,000 km2 region lies between the Tihama coastal plains and the Highlands. The elevation ranges from 200 m to 1,500 m. The topography is very rugged, cut by deep wadis running through narrow gorges with very steep slopes. All the cultivated land on the slopes is terraced. In the south middle heights of this region drainage is to the south and east into the Gulf of Aden. The main wadis flowing to the Gulf are Wadi Bana and Wadi Tuban.

3. The Central Highlands. This 35,000 km2 region comprises the higher reaches of the central mountain range extending from Ibb in the south to Saudi Arabia in the north. The highest part of the region lies between Ibb and Sana'a where mountain peaks exceed 3,000 m. The western part of the region is rugged with steep slopes where most of the cultivable land is terraced. The region includes the so-called Intermontane Plains, a high plateau area above 2,000 m elevation. These high plains areas encompass most of the Governorates of Rada'a, Sana'a and Saada. The southern part of the region has the highest and most dependable rainfall and best climate of the country and good soils. In the northern part of the region rainfall is less and more erratic.

4. The Eastern Slopes, comprising 80,000 km2, are the largest region but poorest in agricultural potential. The land slopes gently eastward toward the empty quarter from about 2,000 m to 1,000 m elevation. Temperatures are high and rainfall is only about 100 mm to 200 mm. The main Wadis of the area -are Wadi Al Jouf, Wadi Ab-idah and Wadi Harib.

Rainfall Conditions

5. In the Tihama along the coast, the average annual rainfall as recorded over a long period is only about 100 mm. Heavy rains of 50 to 125 mm in this region are a rare phenomenon. Further inland the rainfall increases to about 200 mm annually. - 42 - ANNEX VIII-1 Page 2

6. The western slopes region, i.e. the mountainous escarpment extending from the Central Highlands down to the Tihama, receives the highest rainfall within Yemen. At the base of the escarpment the average annual precipitation ranges from 250 to 300 mm. The amount of rainfall increases as the elevation increases up to an average annual of 800 mm at an elevation of about 2,300 m. An average rainfall of 1,100 mm recorded in 1970/73 at the town of Ibb is considered to be the maximum on the Western slopes. In particularly wet years, annual rainfall up to 1,400 mm has been recorded.

7. The Central Highlands which may be described as mountain tablelands,- have erratic rainfall within the year as well as wide variations from year to year. The lower one-third of the Highlands receives an average annual rainfall of about 250 mm. The rainfall in the northern two-thirds of the High- lands rapidly decreases to about 100 mm.

8. Very little rainfall data is available on the Eastern Slopes Region. The region may be characterized as semi-desert to desert. The drainage pattern indicates a rapid decrease of rainfall from the Central Highlands in the direction from south to north and from west to east.

9. The Taiz province which typifies the southeastern and northern slopes of the Central Highlands, has the most favorable climate in all the country for agriculture. This humid-subtropical area receives abundant rainfall from the summer monsoon winds. The average annual rainfall of over 600 me is normally well distributed over the seven months from April to October. This concentration of rainfall is in contrast to the two distinct wet seasons elsewhere in Yemen, as noted above. - 43 - ANNEX VIII-2 Page 1

FOREIGN ASSISTANCE IN AGRICULTURE

International Development Association (IDA)

1. IDA is currently engaged in four major investment and one technical assistance projects as follows:

(a) Tihama Development Project - A US$40.8 million project to provide for (a) the improvement of existing spate irrigation in Wadi Zabid covering 17,000 ha, together with establishing agricultural research, plant protection and extension services and (b) a feasibility study in Wadi Mawr for the development of surface and groundwater irrigation to serve 60,000 ha. The feasibility study includes the drLlling of about 60 test tubewells. Work started on the project in 1973 and is scheduled to be completed at the end of 1978.

(b) Southern Uplands Rural Development Proiect - A US$23.2 million, five-year project to improve the standard of living of some 21,000 farm famLlies by increasing the crop production on 35,000 ha of farmland. The project provides credit for production inputs and farm investments, for rural works (including feeder roads), village water supply systems and irrigation works, and for technical services. The credit became effective on December 31, 1975, and the project is scheduled for completion in September 1981.

(c) Grain Storage and Processing Project - A US$21.8 milion, five-year project which became operational in October 1976. The project will provide (a) a 20,000-ton port silo at Bodeidah with ship un- loading and bagging equipment; (b) six regional warehouses with a total capacity of 18,000 tons; (c) two government-operated bakeries; (d) a bakery credit component to provide loans to private sector bakers; (e) a study to provide a nationwide storage investment program; and (f) a nutrition component.

(d) Livetock Credit and Processing Project - A US$32.1 million investment that will be dielbursed over a six-year period. The project will provide for: (CE) the formation of a-national Livestock Development Corporation which will set up eight 50-cow dairy farms, a livestock fattening dairy production farm, five milk collection centers and a poultry feed mill complex; (b) the development of three urban slaughterhouses and 154 municipal retail market stalls; (c) support of animal health services; (d) supervised credit to smallholder livestock and poultry owners and irrigated fodder crop producers and credit to retail butchers; and (e) establishment of a livestock and range improvement center. - 44 - ANNEX VIII-2 Page 2

(e) Institutional Support to the Ministry of Agriculture - Through a UNDP-financed and Bank-executed project commenced November 1973 and due to end September 1978, the 7-man expert team provided by the project includes 2 agriculturists, an irrigation engineer, a livestock development specialist, an agricultural economist, a statistician and an administrative and finance officer.

FAO and UNDP

2. FAD-executed UNDP technical assistance projects have been considerably curtailed over the past two years due to reductions of UNDP's financial resources. Only two large-scale projects remain approximately at full scheduled expert strength. One formerly large-scale fisheries project has only one development advisor and a UN volunteer assistant on fish preservation and handling. One FAO expert for vocational agriculture is assigned to the UNESCO-executed project on Development of Educational Programme and Institu- tions. One expert in agro-meteorology is working with the WMO team assisting the Civil Aviation and Meteorological Authority. The two nearly full-strength FAD-executed projects are:

(a) Central Agricultural Research and Training Organization - A nine- expert team is providing technical assistance support to the Bank's Uplands Rural Development Project as well as providing major institutional building support for the Ministry of Agri- culture. The present phase of the project is due to terminate in September 1978. The specialization of the experts includes soils, horticulture, extension training, sorghum breeder, wheat breeder, statistics and plant pathology. Nine UN volunteers are assisting the experts on the project.

(b) Establishing of Agricultural Services in the Tihama Region. A four-year duration project due to terminate at the end of 1977. The project has provided experts for periods of one to four years in agricutlural extension, cotton agronomy, crop protection, irrigation practices, horticulture, tobacco and farm management.

Federal Republic of Germany

3. Germany has been giving technical assistance to the agricultural sector since 1967. The Shoub Research Farm in Sana'a was reopened by Germany in 1969. German operation of the Shoub Farm is planned to continue over a ten-year period. In addition to carrying out experimental trials on crop varieties, vegetables and potatoes, the Shoub Farm is used as a center for extension and promotional work by the German team.

4. A first major effort of a German team of four experts stationed at the Shoub Farm was on the promotion of fertilizer use. Approximately 6,000 tons of fertilizer (20-20-0) were distributed through contracting with local - 45 - ANNEX VIII-2 Page 3 merchants. The merchants advanced the fertilizer to farmers for small fixed mark-up in price over their costs. Repayments by farmers exceeded 92 percent of advances.

5. The Shoub Farm is now being used to produce vegetable seedlings, tomatoes, onions, lettuce, cauliflower and cabbage. Approximately half a million vegetable seedlings are distributed each year. In 1974, ten tons of seed potatoes were imported and planted on 86 farmer plots. Yields obtained ranged from 13 to 31 tons per ha.

6. -The major emphasis of the German team in the future will be on plant protection. Insecticides are imported and distributed through local merchants. Six German experts are now (April 1977) stationed on the Sana'a Farm.

United Kingdom

7. The essential beginning of a veterinary service for the Ministry of Agriculture was commenced in December 1972 by British technical assistance. A team of veterinary speciaLists and a laboratory technician were provided to investigate animal diseases and to advise and assist the Government of Yemen to carry out disease cont:rol measures. A diagnostic laboratory was established to support the field activities of the team. The laboratory was equipped to do all diagnostic work except virology. A major campaign was carried out in 1974 in the vaccination oE cattle for Rinderpest. Rinderpest control has been expanded since with succes3s in preventing any major outbreak of this disease. Further British veterinarv assistance has been included as a part of the Bank's Livestock Credit and Processing Project.

8. A second major technical assistance effort of the British has been in the field of farm mechanization. Work was started with a small team in 1975 and plans are now to have a six-man team stationed at Taiz. A new headquarters building is being constructed adjacent to the Central Research and Training Organization. One of the successful efforts of the team thus far has been the testing of a newly-designed hand-powered thresher for cereal grains. The British team will be extension oriented with emphasis on assisting farmers in selecting the machinery best adapted for their circumstances and in teaching farmers how to use the equipment.

United States

9. USAID operations in Yemen were resumed in 1973 and have grown from an annual program of $1.7 million in 1973 to $16 million in fiscal year 1977. Their current program is concentrated on agriculture and nutrition in the rural areas, on domestic .water supply development in rural and urban areas, and manpower training for a wide spectrum of development activities. Their two main ongoing agricultural ,projects are:

(a) Sorghum and Millet Improvement. Following the completion of three years of basic research on sorghum and millet varieties, and expanded project was begun in 1976. The initial project - 46 - ANNEX VIII-2 Page 4

tested about 5,000 varieties, of which 50 showed a potential for increased yields. The new project will consist of continued adaptive research coupled with farm demonstration and extension. A research station is in operation in Sana'a (Bir al Ghoun) and one is planned for the Tihama.

(b) Poultry Planning. This project was initiated in 1975 to demon- strate the economic and technical feasibility of poultry production and to develop and extend appropriate techniques to rural areas. A demonstration/training center has been built in Sana'a and another is planned for Taiz. The center consists of several laying and chick-raising houses, a hatchery and feed mill. Hatching eggs are imported by airplane from England, Kenya and Italy. The project is now operating with two expatriate specialists and five counterparts. Trainees are brought in from the villages; and, after training, are returned with units of 50 birds as a nucleus for expanded poultry production.

USSR

10. A 1,000 ha experimental farm at Sordud in the Tihama was developed by USSR and a two-man team of mechanical engineers continues to assist in management of the farm, which is in full production. This farm was laid out for large-scale mechanization with a surface canal irrigation system. The farm has its own generation plant which is used for operation of irrigation pumps.

China

11. The Chinese are developing a 20-ha research farm near Hoth (El Bahana). The farm is being fully equipped and completely developed by level- ing and laying out an irrigation system. The farm is being used for introduction of new crop varieties. From six to eight experts have now been working for 18 months under a two-year agreement. The Ministry of Agriculture has one BS degree counterpart at the farm.

Netherlands

12. The Department of International Technical Assistance, Ministry of Foreign Affairs, The Netherlands, engaged ILACO of Arnhem to prepare a plan for rural development of the Rada area in 1976. The project area comprising some 2,600 km2 is principally the Rada Nahiya which was the former Rada Sub- district of the Al Bayda Governorate in southeastern Yemen. The district has a population of about 65,000 with 7,000-8,000 adult males working out of the country. The project is scheduled for a five-year implementation period at a cost of US$17 million. A 20-ha research and training center will be established at al Khabar (5-km south of Rada). A revolving fund would be established for supervised credit. Major civil works would include domestic water supply systems and feeder roads (271 km). - 47 - ANNEX VIII-2 Page 5

Future Projects

13. Other rural development projects under consideration for the 5-Year Plan include:

(a) Hajjah Integrated Rural Development (British aid);

(b) Wadi Rima Rural Development (IDA);

(d) Wadi Siham Rural Development (Kuwait Fund and Abu Dhabi Fund);

(e) Mahweet Rural Development (Arab Agricultural Development Organization);

(f) Sa'ada Rural Development (Arab Agricultural Development Organization);

(g) Wadi Sortdud Rural Development (German aid);

(h) Afforestation Project (Saudi Fund studying);

(i) Fisheries Project (IDA); and

(j) Wadi Mawr Development (IDA).

14. USAID has approved a fruit development project which will be a part of the Plan to take field trials of imported high-production plant materials and to improve cultural practices on existing orchards. The project has taken over the 8-ha Bir Al Shaif farm in Sana'a which was formerly operated with the assistance of Syria. An additional farm of about 50 ha at Sordud will give major emphasis to bananas and citrus, with minor emphasis on dates, papayas and mangoes. The Sana'a station will be devoted to grapes, apricots and selected nut crops, probably almonds, walnuts and pistachios. - 48 -

STATISTICAL APPENDIX

Table No.

I. HUMAN RESOURCES

1.1 Enumerated Resident Population by Age Group and Sex, 1975 1.2 Enumerated Resident Population by Sex and Governorate, 1975 1.3 Estimated Employment by Sector, January 31, 1975 1.4 Distribution of Resident Labor Force by Educational Status and Sex, 1975 1.5 Modern Sector Non-farm Employment, 1975 1.6 Government Employees by Ministries, Governorates and Sex, 1975 1.7 Educational Standards of Government Employees, 1975 1.8 Manpower Demand by Sector and Specialization During the Plan Period (1976/77 - 1980/81) 1.9 Manpower Demand and Supply during the Plan Period (1976/77 - 1980/81)

II. NATIONAL ACCOUNTS

2.1 Gross Domestic Product at Current Prices 2.2 Gross Domestic Production at Constant 1971/72 Prices 2.3 Expenditures on Gross National Product at Current Prices 2.4 Gross Investment at Current Prices

III. BALANCE OF PAYMENTS

3.1 Summary Balance of Payments (YR million) 3.2 St-ary Balance of Payments (US.million) 3.3 Commodity Composition of Recorded Exports 3.4 Commodity Composition of Private Imports 3.5 Aggregate Imports of Government and Private Account on a Payment Basis 3.6 Geographical Distribution of Exports 3.7 Geographical Distribution of Imports 3.8 Service Receipts and Payments 3.9 Techpical Assistance Received 3.10 Official Loans and Credits 3.11 Central Bank Reserves - 49 -

IV. EXTERNAL DEBT

4.1 External Public Debt Outstanding as of June 30, 1977 4.2 Service Payments, Commitments, Disbursements and Outstanding Amounts of External Public Debt as of June 30, 1977

V. PUBLIC FINANCE

5.1 summary of Government Finances 5.2 Governaant Revenues 5.3' Governamnt Expenditures 5.4 Gross Savings of Public and Mixed Enterprises

V:t. MONETARY STATISTICS

6.1 Monetary Survey 6.2 Pomposition of Money and Quasi-Money 6.3 Commerc:Lal Bank Advances and Investments 6.4 Interest Rate Structure

VII. AGRICULTURAL STATISTICS

7.1 Major Land Use by Governorates 7.2 Cultivated Land and Irrigation by Source of Water 7.3 Value of. Agriculture Production 7.4 Area and Production of Main Agricultural Crops 7.5 VariabiLity of Rainfall by Months, Southern Uplands 7.6 Variability of Rainfall by Months, Tihama Coastal Plainia 7.7 Variability of Rainfall by Months, Central Highlands 7.8 Mean, Maximum and Minimum Monthly Rainfall at Selected Stations 7.9 Motor Pumps and Fuel Consumption 7.10 Fertilis:er,and Insecticide Imports 7.11 Comparison with Other Countries of Average Fertilizer Use per Hectare of Arable Land and Land Under -Permanent Crops, 1974 7.12 Manpower Trained for Ministry of Agriculture Through June 30, 1976 7.13 Estimated Requirements for University Trained Manpower by Specialization over Next 5 Years 7.14 Estimatf!d Additional Trained Manpower Required For Ministry of Agriculture over Next 5 Years - 50 -

7.15 Anticipated Number of Agriculture Students Returning by Years and Specialization 7.16 Terms of Agricultural Credit Fund Medium and Long-Term Loans 7.17 Lending Activities of Agricultural Credit Fund and Agricultural Credit Bank 7.18 Agricultural Production Tzrgets During the Five- Year Plan, 1976/77-1980/81 7.19 Agricultural Input and Yield Targets During the Five-Year Plan, 1976/77-1980/81 7.20 First Five-Year Plan for Irrigation 7.21 Long-Range Irrigation Targets 7.22 Target for Expansion of Flood Irrigation 7.23 Target for Expansion of Perennial Irrigation 7.24 Target for Expansion of Well Irrigation

VIII. OTHER SECTORS

8.1 1975 Structure of Manufacturing Industry 8.2 Major Manufacturing Enterprises 8.3 Paved and Gravel Roads, 1977 8.4 Ports Traffic in YAR: 1969 - 1976 8.5 Sana'a International Airport Traffic, 1974-1976 8.6 Passengers carried by Yemen Airways

IX. PRICES

9.1 Consumer Price Index for Sana'a City

X. EDUCATION AND HEALTH

10.1 Primary Level Education 10.2 Primary School Teachers by Sex, Status and Educational Attainment 10.3 General Preparatory Level Education 10.4 General Secondary Level Education 10.5 Enrollments in Teachers Institutes 10.6 Subjects Studied at the Three Levels of Education 10.7 Enrollments in Technical and Commercial Schools 10.8 Distribution of Yemeni Students Abroad by Country and Specialty, 1976/77 10.9 Projected Student Enrollments During Five-Year Plan 1976/77-1980/81 10.10 Capital Expenditures on Education During the Plan Period 10.11 Distribution of the Ministry of Education Capital Expenditures by Level and Type of Education, During The Plan Period, 1976/77-1980/81 - 51 -

10.12 Capital. Expenditures by the Ministry of Education and Sana'a University by Source of Finance, During the Five-Year Plan, 1976/77-1980/81 10.13 Training of Yemenis Abroad during the Five-Year Plan, 1976/77-1980/81 10.14 Foreign. Grants on Manpower Development Oriented Current Expenditures, by Source of Supply, During the Five-Year Plan, 1976/77-1980/81 10.15 Public Expenditures on Education 10.16 Medical Personnel, 1976 10.17 Health Establishments by Governorates, 1976 - 52 -

Table 1.1: ENUMERATED RESIDENT POPULATION BY AGE GROUP AND SEX (Prel±minary Results of February 1975 Census; in Thousands)

Age Group Males Females Total

0 - 4 387 385 772 5 - 9 418 389 807 10 - 14 286 252 538 15 - 19 158 200 358 20 - 24 116 180 296 25 - 29 116 167 283 30 - 34 116 154 270 35 - 39 115 140 255 40 - 44 104 123 227 45 - 49 86 104 190 50- 54 70 84 154 55 - 59 57 65 122 60- 64 45 48 93 65 - 69 33 35 68 70 - 74 23 23 46 75 - 79 14 13 27 80 + 11 10 21

TOTAT. 2.155 2,371 4,526

Source: CPO. An Analvsis of Manpower Situation in YAR (December 1976) - 53 -

Table 1.2: ENUMERATED RESIDENT POPULATION BY SEX AND GOVERNORATE (Prelininary Results of February 1975 Census)

Governorate Governorate Capital Population Sex Ratio 1/ Percent of i Governorate (000) (percent) Total Pop. (000) (percent)

Sana'a 807,269 95.2 17.8 134,588 131.9 Damar 455,132 87.3 10.0 19,167 105.8 Ibb 789,518 88.4 17.4 19,066 116.1 Taiz 873,876 83.6 19.3 78,642 132.2 Bodeidah 676,693 102.2 15.0 80,314 145.0 Mahweet 174,639 85.7 3.9 2,421 109.2 Hajjah 396,578 95.8 8.7 5,813 107.3 Sa'adah 154,361 90.5 3.4 4,252 110.7 Marib 40,896 98.3 1.0 292 -- Beida 157,764 81.5 3.5 5,975 82.6

TOTAL 4,526,326 90.9 100.0 350,831 130.4

1/ Male/Female

Source: CPO, An Analysis of Manpower Situation in YAR (December 1976) - 54 -

Table 1.3: ESTIAZED EPL0YMENT BY SECTOR, JANUARY 31, 1975 (in Thousands)

Sector

Agriculture (incl. forestry, livestock & fishing) 785 Manufacturing (incl. mining, quarrying, power and water) 39 Construction & Building 47 Trade, Restaurants & Hotels 72 Transport, Storage & Commmnication 26 Finance, Insurance, Real Estate & Business Services 2 Community, Social & Personal Services 101 1,072 1/

1/ Esluding unemployed (64,000).

Source: CPO. An AnalYsis of Manpower Situation in YAR (December 1976) - 55 -

Table 1.4: DISTRIBUTION OF RESIDENT LABOR FORCE BY EDUCATIONAL STATUS AND SEX (February 1975)

Males Females Total

Illiterate 778,678 134,394 913,072 Unable to read-and write 667,473 132,727 800,200 Can read only 111,205 1,667 112,872 Literate 219,277 3,378 222,655 Can read and write 198,882 1,943 200,825 Finished primary 4,766 86 4,852 Finished preparatory 4,367 194 4,561 Finished secondary 5,046 599 5,645 Finished university 4,342 319 4,661 Not Stated 1,874 237 2,111 TOTAL 997,955 137,772 1,135,727

Source: CPO, An Analysis of Manpower Situation in YAR (December 1976) - 56 -

Table 1.5: MODERN SECTOR NON-FARM EMPLOYMENT, 1975

Economic Sector

Agriculture 200 Mining and Quarrying 51 Manufacturing 8,473 Electricity, Gas & Water 870 Construction 7,950 Wholesale and Retail trade 27,570 Transport, Storage & comunications 1,047 Finance, Insurance and Real Estate 1,126 Comunity and Personal Services 5,422

Total Private Sector 52,709 1/ Total Government Sector 31,315

GRAND TOTAL 84,024

1/ In the cities of Sana'a, Taiz, Hodeidah, Ibb and Dhmar.

Source: CPO, 1975 Manpower Survey (May 1976) Table 1.6: GOVERNMENT EHPWYEES BY HINISTRIES, GOVERNORATES AND SEX (1975,

TOTAL Sana'a Taiz Hodeida' lbb Damar Hajja Saada Beida Mahweet Mareb M F T

Offices of the President 700 - - - - - 682 18 7:0 & Prime Minister Interior 1/ 11,615 - _ - - - -_ 11,615 - 11,615 Justice 364 128 83 112 61 12S 62 22 28 - 986 - 986 Education 1,452 934 630 373 221 521 76 81 86 55 4,147 291 4,438 Health 907 581 381 144 79 70 17 20 - - 1,783 416 2,199 Agriculture 189 68 158 13 - - - I - 420 9 429 Public Work 592 413 292 19 4 15 - - - 1,321 14 1,335 Municipalities 826 319 608 146 56 64 13 47 18 5 1,833 269 2,102 Communications 816 264 181 124 47 45 29 7 - - 1.484 29 1,513 Local Administrations 187 178 78 190 67 102 96 34 34 18 976 2 978 Information 291 75 11 6 3 2 1 3 - - 385 7 392 Foreign Affairs 187 ------176 11 187 Economy 123 14 13 3 ------150 3 153 Finance 1,186 500 426 275 148 305 159 75 56 24 3,141 13 3,154 Supply 87 39 42 10 11 15 3 3 9 - 217 2 219 Soci I Affairs 100 15 8 6 ------129 - 129 Waqf 75 46 30 74 13 9 11 - - - 258 - 258 Central Planning Organization 140 ------128 12 140 Central Bank of Yemen 240 54 53 15 10 5 7 4 - - 328 60 388

TOTAL 20,077 3,628 3,003 1,510 714 1,279 474 297 231 102 30,159 1.156 31,315

I/ No regional distribution of employment available

Source: CPO, 1975 Mfanpower Survey (Hay 1976) - 58 -

Table 1.7: EDUCATIONAL STANDARDS OF GOVERNMENT EMPLOYEES (1975)

Govertment Employees Total Males Females

Illiterate 5,160 4,518 642

Informal Education (read and write) 21,178 21,106 72 Primary Education 1,584 1,425 159 Preparatory Education 1,162 1,062 100 Secondary Education 1,284 1,115 169 Post Secondary Educ'n 256 251 5 College or University Degree 691 682 9

TOTAL 31,315 30,159 1,156

Source: Central Planning Organization, 1975 Manpower Survey, (May 1976). Table 1.8: MANPOWER DEMAND BY SECTOR AND SPECIALIZATION DURING THE FIVE-YEAR PLAN (1976/77-i980/81)

High-Level Cadres Medium-Level Cadres Basic-Leval Cadres Technical Agricul- Techni- and turists & Medicine cal General Engi- Veteri- and Assis- Secondary Skilled Unskilled neers narians Pharmacy Others Total tants School Total Labor Labor Total TOTAL

Agriculture 128 328 - 83 539 560 998 1,558 19,120 1,334 20,454 22,551 Mining & Quarrying 20 - - 29 49 38 52 90 238 31 269 408

Hanufacruring 248 6 6 347 607 558 1,432 1,990 6,909 774 6,683 10,280 Electricity & Water 40 - - 75 115 106 294 400 559 179 738 1,253 Building & I Construction 268 2 11 197 478 209 1,245 1,454 17,168 1,325 18,493 20,425 1

Trade 21 - - 170 191 47 265 312 770 161 931 1,434 Transport & Communication 116 - - 233 349 672 593 1,265 2,352 605 2,957 4,571 Finance & Banking 4 5 - 121 130 11 157 168 231 - 231 529 Education 21 75 - 1,622 1,718 5,696 - 5,696 32 604 636 8,050 Health - - 233 62 295 1,142 76 1,218 2,469 22 2,491 4,004 Social Affairs - - 1 158 159 50 94 144 259 - 259 562 Information & Culture 16 - - 274 290 70 132 202 458 27 485 977 Public Administration 2 - 2 944 948 360 2,251 2,611 3,429 19,278 22,707 26,266 TOTAL 884 416 253 4.315 5.868 9,519 7.589 17.108 53,994 2 78.334 101,310 Source: CPO, First Five-Year Plan, 1976/77-1980/81. - 60 - 1 of 2 pages

Table 1.9: MANPOWER DEMAND AND SUPPLY DURING THE PLAN PERIOD (1976/77 - 1980/81)

Domestic Balance Demand SUPPly (Deficiencies)

I. High-Level Cadres

Engineers 884 345 539 Agricultural Sciences 360 146 214 Veterinary Sciences 56 6 50 Medicine & Pharmacy 1/ 253 253 - Natural Sciences 1/ 507 291 216 Economics & Commerce 1/ 1,461 1,126 335 Social Sciences 1/ 2,008 1,434 574 Other Sciences 339 7 332

Total High-Level Cadres 5,868 3,608 2,260

II. Medium-Level Cadres

(i) Technical Assistants: Mechanical 343 2 341 Chemical 184 2 182 Electrical 388 57 331 Civil Engineering 422 13 409 Agricultural & Veterinary 294 2 292 Health 1,249 773 467 Others 2/ 6,639 2,985 3,654

Total 9,519 3,834 5,685

(ii) Technical & General Secondary Schools Graduates: Industrial 2,542 481 2,061 Agricultural 919 69 850 Comercial 871 325 546 General 3,257 3,257

Total 7,589 4.132 3,457

Total Medium-Level Cadres 17,108 7,966 - 61 - 2 of 2 pages

Table 1.9: MANPOWER DEMAND AND SUPPLY DURING THE PLAN PERIOD (1976/77 - 1980/81)

Domestic Balance III. Basic-Level Cadres Demand Supply (Deficiencies)

(i) Skilled Labor: Production 22,474 17,247 5,227 Mechanical 1,953 951 1,002 Electtical 1,094 1,094 Construction 13,535 480 13,055 Drivers 3/ 5,976 - 5,976 Health Care 1,474 1,164 310 Public Administration 4,821 4,765 56 Services 2,667 1,910 757

Total 53,994 27,611 26,383

(ii) Unskilled Labor 24,340 24,083 257

Total Basic-Level Cadres 78,334 51,694 26,640

Total, All Cadres 101,310 63,268

1/ The balance for each profession does not indicate the exact high-level cadres needed because the numbers are aggregates and, therefore, do not: show shortages in some specialties and excess in others.

2/ Mainly includes primary and secondary schools teachers.

3/ Includes drivers of all kinds of automotive engines such as trucks, buses, cisterns, tractors, cement mixer, etc. It is unlikely that no drivers can be supplied domestically, in spite of emigration.

Source: CPO, First Five-Year Plan, 1976/77-1980/81 Table 2.1: GROSS DOMESTIC PRODWCT AT CURRENT PRICES (YR Hillion)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76

Commodity Sectors 884 1,143 1,324 1,532 1,977 2,760 2,834

Agriculture, Fishing & Forestry 742 969 1,113 1,263 1,582 2,335 2,305 Industry, Mining & Electricity 66 87 109 142 213 249 302 Construction 76 87 102 127 182 176 227

Distribution Sectors 331 366 453 577 795 1,060 1,512

Trade 283 300 360 460 629 826 1,220 Finance & Banking 13 19 25 40 57 96 141 Transport & Communication 35 47 68 77 109 138 151

Services Sectors 184 237 314 405 488 654 835

Government 91 127 185 252 291 401 509 llousing 64 73 83 94 118 150 199 Other Services 29 37 46 59 79 103 127

CDP at Market Prices 1,399 1,746 2,091 2,514 3,260 4,474 5,181

Net Indirect Taxes 50 75 113 151 202 283 453

CDP at Factor Costs 1,349 1,671 1,978 2,363 3,058 4,191 4,728

Source: CPO and ECWA. National Accounts of YAR. 1969/70 - 1975/76 Table 2.2: GROSS DOMESTIC PRODUCT AT CONSTANT 1971/72 PRICES (YR Million)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76

Commodity Sectors 1,004 1,283 1,324 1,449 1,376 1,667 1,604

Agriculture, Fishing & Forestry 832 1,091 1,113 1,208 1,091 1,401 1,305 Industry, Mining & Electricity 87 98 109 126 148 153 165 Construction 85 94 102 115 137 113 134

Distribution Sectors 388 416 453 491 513 557 677

Trade 322 337 360 386 394 411 511 Finance & Banking 21 26 25 32 41 59 75 Transport & Communication 45 53 68 73 78 87 91

Services Sectors 264 295 314 337 354 397 426

Government 146 169 185 201 212 247 271 Housing 78 81 83 86 89 92 94 Other Services 40 45 46 50 53 58 61

GDP at Market Prices 1,656 1,994 2,091 2,277 2,243 2,621 2,707

GDP Deflator (1971/72 = 100) 85 88 100 110 145 171 191

Source: CPO and ECWA. National Accounts of YAR, 1969/70 - 1975/76 Table 2.3: EXPENDITURES ON GROSS NATIONAL PRODUCT AT CURRENT PRICES (YR Million)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76

Consumption 1,639 1,839 2,160 2,607 3,380 4,422 5,581

Private 1,523 1,678 1,926 2,290 3,015 3,994 4,900 Government 116 161 234 317 365 518 681

Gross Investment 78 259 329 499 630 1,077 1,170

Gross Fixed Capital formation 162 235 324 342 472 586 773 Change in Stocks -84 24 5 157 158 491 397

Net Exports of Goods and N.F.S. -318 -352 -398 -592 -750 -1,025 -1,570

Exports of Goods & N.F.S. 30 40 87 94 175 221 293 Imports of Goods & N.F.S. -348 -392 -485 -686 -925 -1,246 -1,863

GDP at Market Prices 1,399 1,746 2,091 2,514 3,260 4,474 5,181

Net Factor Income 220 230 293 505 528 914 2,157

GNP at Market Prices 1,619 1,976 2,384 3,019 3,788 5,388 7,338

Memorandum Item

Gross Domestic Savings -240 -93 -69 -93 -120 52 -400

Gross National Savings -20 137 224 412 408 966 1,757

Source: CPO and ECWA, National Accounts of YAR, 1969/70-1975/76 and balance of paymen s data (Table 3.1) Table 2.4: GROSS INVESTMENT AT CURRENT PRICES (YR Million)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76

Agriculture -117 35 50 123 90 482 313 Fixed Capital Formation -17 30 87 27 27 95 106 Change in Stock -100 .5 -37 96 63 387 207

Industry 11 15 16 28 37 47 61 Fixed Capital Formation 7 9 10 18 23 35 51 Change in Stock 4 6 6 10 14 12 10

Construction 4 4 5 10 la 4 25 Fixed Capital Formation I I 1 2 .2 6 10 Change in Stock 3 3 4 8 17 -2 15

Transport & Communication 48 64 67 73 124 153 233 Fixed Cavital Formation 47 62 63 72 120 149 232 Change in Stock 1 2 4 1 4 4 1

Housing 111 99 128 183 250 235 286 Fixed Capital Formation 111 99 128 183 250 235 286 Change in Stock - - - - -

Other Sectors 21 42 63 82 110 156 252 Fixed Capital Formation 13 34 35 40 50 66 88 Change in Stock 8 8 28 .42 60 90 164

TOTAL 78 259 329 499 .3Q 1.077 1.170 Fixed Capital Formation 162 235 324 342 472 586 773 Change in Stock -84 24 5 .157 158 491 397

Memorandum Items Gross Public Investment 77 117 136 161 234 247 356 Gross Private Investment 1 142 194 338 396 830 814

Source: CPO & ECWA, National Accounts of YAR, 1969/70-1975/76 - 66 -

Table 3.1: SMThARY BALANCE OF PAYMENTS (YR million)

Fiscal Years Ending June 30 1971/72 1972173 1973/74 1974/75 1975/76 1976/77

1. Trade Balance -391 -539 -811 -1,105 -1,666 -3.200 Exports f.o.b. 42 34 62 58 55 84 Imports c.i.f. -433 -573 -873 -1,163 -1,721 -3,284 (Government) (-85) (-73) (-159) (-163) (-269) (-292) (Private) (-348) (-500) (-714) (-1,000) (-1,452) (-2,992)

2. Service Balance -7 -53 85 135 196 197

3. Private Transfers, Net 293 505 504 859 2,057 3,791 Receipts 1/ 328 564 595 1,013 2,363 4,561 Payments 35 59 91 154 306 770

4. Current Account Balance -105 -87 -222 -111 587 788 (1 + 2 + 3)

5. M< Capital, Net 174 105 277 566 712 659 Official Grants 74 67 148 419 513 470 Official Loans, Net 100 38 129 147 199 189 (Disbursements) (129) (58) (144) (164) (213) (208) (Repayments) (-29) (-20) (-15) (-17) (-14) (-19)

6. Other Capital,V/ Net 52 120 51 -15 -11 566 4/

7. Chanae in Reserves 3/ -121 -138 -106 -440 -1,288 -2,013

(increase - -) ---

1/ Largely workers' remittances. 2/ Including errors & omissiona.

3/ Held by Central Bank of Yemen; excluding balances with Central Bank of Egypt.

4/ Largely net borrowings by private banks.

Source: Central Bank of Yemen and INF. - 67 -

Table 3.2: SUMMARY BALANCE OF PAYMENTS

-~ (US$ million)

Fiscal Years Ending June 30 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77

1. Trade Balance -78 -180 -245 -370 711 Exports f.o.b. 8 7 14 13 12 19 Imports c.i.f. -86 -120 -194 -258 -382 -730 (Government) (-17) (-15) (-35) (-36) (-60) (-65) (Private) (-69) (-il5) (-159) (-222) (-322) (-665)

2. Service Balance -1 19 29 43 44

3. Private Transfers, Net 58 1Q5 112 191 457 842 Receipts 1/ 65 118 132 225 525 1,013 Payments 7 13 20 34 68 171

4. Current Account Balance -21 -18 -49 -25 130 175 (1 + 2 + 3)

5. M< Capital, Net 34 22 62 126 158 146 Official Grants 15 14 33 93 114 104 Official Loans, Net 19 8 29 33 44 42 (Disbursements) (25) tl2) (32) (37) (47) (46) (Repayments) (-6) (-4) (-3) (-4) (-3) (-4)

6. Other Capital,V Net 11 25 11 -3 -2 126

7. Change in Reserves.3/ -24 -29 -23 -98 -286 -447 (increase = _)

1/ Largely workers' remittances.

2/ Including errors & omissions.

3/ Held by Central Bank of Yemen; excluaing balances with Central Bank of Egypt.

4/ Largely net borrowings by private banks.

Source: Central Bank of Yemeln and IMF. Table 3.3: COMMODITY COMPOSITION OF RECORDED EXPORTS (YR thousands)

Fiscal Years ending June 30 71/2 72/73 73/74 74/75 75/76 76/77

Agricultural 22,703 23?693 51,648 41,982 41,582 43,205 Rav Materials Cotton 10,799 12,821 37,053 30,954 24,563 24,953 Cotton Lint 9 912) (10,785) (35,180) (28,188) (24,221) (24,593) Cotton Seeds 9187) (2,036) (1,873) (2,766) (362) (-) Coffee 5,534 5,469 6,461 4.972 7,588 10,223 Hides & Skins 3,271 3,325 6,241 4,404 8,00 6,129 Dried Fish 58 382 781 736 325 56 Live Animals 341 768 643 443 6 Potatoes 239 394 195 141 135 17 Fruits 66 224 143 116 164 26 Tobacco 25 44 74 172 382 668 Others 2,370 266 57 44 359 1,133 Processed Agricultural Products lOO -1,143 1,896 3,453 4,322 5,64.0 Cotton Products 100 317 325 1,590 1,384 637 ° Fabrics - -- (1 193) (775) (165) Sheets (OO}1 (317) (325) (257) (609) (472) Yarn - - - (14o) .. ( - ) Bissuits 636 1,315 1,131 29093 3,156 Confectionery 119 54 582 845 724 Oil Seed Cakes 71 202 150 - 1,123

Non-Agricultural Exports 1,98 433 1,838 7.531 4,159 1,689 Salt 1,412 27 26 - 1 Metal Scrap 247 102 356 9 343 - Others 239 304 1t456 7,522 39815 1,689 TOTAL 24,701 25,269 55,382 52s966 50,063 50,534

Source: Central Bank of Yemen. rage X or z Table 3.4: COMMODITY COMPOSITION OF PRIVATE IMPORTS (YR million)

Fiscal Years ending June 30 71/72 72/73 73/74 74/75 75/76 76/77

Foodstuffs: 93. 181.5 367.3 422.2 748.6 879.6

Cereals & Products 45.0 74.3 154.4 165.1 235.1 296.7 Sugar & Products 20.7 40.8 101.7 119.4 242.1 166.6 Fruits & Vegetables 9.1 18.6 32-3 43.5 70.4 180.4 Margarine & Edible Oils 9.6 22.3 33.8 40.5 95.0 75.3 Coffee, Tea, & Spices 5.9 16.4 23.4 24.7 48.1 29.1 Dairy Products & Eggs, 2.2 7.3 11.6 20.4 34.6 69.5 Meat R TLive O*3 njni1ln,7 0.7 2e2 13..3 4L,3 Fish & Fish Products 0.3 1.1 5.6 4.6 7.1 16.7 Others 0.1 ,. 0.8 1.8 2.9 1.0

Tobacco & Beverages 8.7 14.1 13.1 29.1 44.4 52.2 Tobacco & Products 7.9 13.7 12.5 27.9 43-.0 45.8 Beverages 0.8 0.5 o.6 1.2 1.4 6.4 Manufactured Consumer Goods: 23.7 61.8 114.1 151.3 271.2 425.9

Textiles 11.1 27.5 48.7 75.4 142.3 171.4 Clothing 3.2 10.4 22.7 29.5 51.0 94.1 Footwear 3.4 7.3 11.3 11.6 32.? 31.6 Soap & Cosmetics 3.3 9.4 20.3 20.7 22.9 42.5 Furniture & Lighting fixtures 1.8 3.7 5.9 5.8 10.7 35.5 Watches, jewelry, photo- graphic supplies, sound recorders, toys. 0.9 3.5 5.2 8.3 12.1 50.8 Mineral Fuel, Gas, & Lubricants 12.5 19.1 33.9 36.8 82.4 61.1

Chemicals: 6.o 16.1 25.3 15.0 57.2 112.8 Medicines 3 10.5 16.3 25.6 32 6 56.1 Fertilizers 0.6 0.4 1.3 6.6 6.8 1.4 Pesticides 0.6 1.2 2.1 1.9 4.0 12.4 Others 1.2 1.0 5.6 10.9 13.8 42.9 Page 2 of 2

Table 3.4: COMMDDITY COMPOSITION OF PRIVATE IMPORTS (YR million)

Fiscal Years Ehding 71/72 jhT71 U 74/75 75/76 76177 June 30

Rubber, Wood, Leather & Paper Products 111 67 33 52.1 70.6 186.0 Construction Materials 14.3 19.0 30.2 40.6 44.3 141.6

Cement 9.0 9.6 12.1 6.3 17.3 57.9 Iron Bars & Rods 4.1 6.6 12.2 27.8 16.0 54.6 Iron Pipes 1.2 2.8 5.9 6.5 11.0 29.1 Machinery and Equipment 25.2 56.5 85.9 3l49.6 289.6 965.6 Transport Equipment 13cs -p ". -727 70. 121.4j 527.2 Non-electrical Machines 8.3 17.9 25.9 50.2 123.5 333.4 Electrical Machines 3.3 10.8 17.2 28.5 44.7 105.0 Other Products 9.7 25.9 41.5 54.3 99.9 262.7 Total Private Imports (Customs basis) 204.4 410.7 745.0 981.0 1700.2 3087.5

Source: Central Bank of Temen, Annual Reports. Table 3.5: AGGREGATE IMPORTS OF GOVERNMENT AND PRIVATE ACCOUNT ON A PAYMENT BASIS (YR million)

Fiscal Years andinc 712 72/73 73/ 7h 74/"' June 30

Government Inports Financed out of:

Grants in kind 17." 8.4t 30.0 30055.2 Project & Commodity 59.6 57.6 125.6 115.4 213.1 Loans

Government's own account 8.6 7.5 2.9 l8.0 0.6 163.4 268.9 Total Government Inports 85.h 73-5 158.5

Frivate Import Payments 3i7. 499.5 71h.8 1000.0 1452.h

Total Import Payments 1432.9 573.0 873.3 1163.4 1721.3

Source: Central Bank rf Yemen, Annual Reports. Table 3.6: GEOGRAP1IICAL DISTRIBUTION OF EXPORTS (YR million)

Fiscal Years ending June 3o 71/72 72/73 7J/7M, 74/75 75/76 76/77

Arab Countries 7.85 8.47 7.89 13.98 13.13 17.17 PDRt of Ye-me-n ;7-- 3. 53 6. 35 81T? 12.59 Saudi Arabia .06 3-41 3.,9 t.54 4.59 4.51 Somalia 0.01 .. .. 1,.90 0.09 - Egypt .. 0.02 .. 0.03 - - Others 0.36 o.56 o.l7 0.16 0.02 0.07 Asian Countries 11.48 1271 359?9.86 ?.90 25.54 Japan 1.30 o.607 6.s9 7.26 0.20 China PR 9.91 11.72 3.00 29.09 2?.63 24.94 Singapore - 0.31 5.93 0.5l 0.1, - Others 0.27 0.01 0.03* -

African Countries o.68 0.82 0.97 0.92 0.77 0.85 Djibouti 0.68 0.76 o . l-3 0.85 Others o.o6 o.48 0.49 o.?h -

EEC 1.30 1.06 8.16 6.83 10.55 7.08 Italy 1.13 0.91 4.96 4.34 8 5.99 Germany FR 0.0? 0.03 0.15 1."6 0.33 0.43 Netherlands 0.08 0.01 0.10 0.8 0o.37 0.60 France _ 0.02 2.79 0.3? 0.69 0.06 UK 0.0 0.03 0.11 0.09 o.47 - Belgui:t - 0.07 o. o6 0.02 Others in EECJ 0.02 - - - -

Other airope 0.96 0.53 0.94 0.06 0.07 0.08 Greece 0. Switzerland 0.10 0.36 0.09 - - Norway - O.1' o.823.o6 0.07 0.08 Malta 0. 23 G.05 Other - 0.03 -

COMHJJON 1.67i.4? 1. ^4 1.01 USSR .67lii western Hemisphere 0.02 0.01 o0.27 0.?6 o.64 0.22 ubA- 0.0' 0.01 0.27 0.22

TOTAL 24.70 25.27 55.38 52.97 50.06 50.53

NBs Totals may not add up because of rounding.

Source: Central Bank of Yemen, Annual Reports. Table 3.7: GEOGRAPHICAL DISTRIBUTION OF IMPORTS Page 1 of 2 (YR inillion)

Fiscal Years ending June 30 71/72 72/73 73/74 74/75 75/76 76J77

Arab Countries 57.45 95.35 131.27 149.99 238.55 576.21 Saudi Arabia 10.)? 29.62 36.30 -75 118.85 374.28 PDR of Yemen 34-55 36.83 42.43 47.?4 84.30 138.66 Fgypt 8.99 17.09 18.09 18.92 16.11 8.08 Sudan 0.30 4.38 14.00 5.27 0.07 7.54 Iraq 1.99 2.13 $.2, 2.$6 ,.94 Lebanon 0.37 2.05 0.89 3.12 3-53 0.40 Others 0.73 3.25 5.25 13.41 13.13 43.31 Asian Countries 42.44 130.03 221.70 388.64 702.31 1,076.00 Japan '9-57 59-99 170.71 239.59 PR 409.97 of China 5.57 21.46 30.87 114.09 139-36 India 134.47 2.13 9.25 15.10 27.06 146.95 178.22 Singapore 5.88 9.99 22.34 26.06 57.77 143.62 Hongkong 2.35 11.09 26.74 24.80 43.33 53.84 Sri Lanka 2.79 11.04 13.84 9.31 36.24 Pakistan 14.78 1.89 6.12 7.46 8.13 6.89 16.71 Thailand 1.10 0.17 3.35 6.69 4.45 Others 1.21 0.21 0.08 5.12 1.46 27.73 123.18 African Countries 7.07 27.52 93.37 68.89 138.25 198.72 Djibouti 41 -20-.4 30.55 28-21 77-l3 129.27 Ethiopia 1.50 5.22 40.32 28.35 34.07 Kenya 17.97 o.58 1.80 12.82 12.17 19.75 51.44 Others 0.15 0.10 o.68 0.16 7.30 0.40

ED: 51.60 97.86 202.50 222.19 406.44 737.60 Netherlands 4971 35.93 37.42 105.80 109.45 UK 19.88 22.0? 26.75 49.67 89.96 169.57 FR of Germany 6.72 25.64 38.52 59.42 80.25 177.35

(Continued) Table 3.7: GEOGRAPHICAL DISTRIBUTION OF IMPORTS Page 2 of 2 (YR million)

Fiscal Years endinit June 30 71/72 72/73 73/74 74/75 75/76 76/77 France 12.60 25.24 49.59 29.58 56.06 117.01 Italy 7.31 10.90 23.58 24.96 40.86 121.88 Belguim o.56 4.15 27.?5 19.59 26.76 21.88 Others 0.37 0.17 0.88 1.55 6.75 20.46

COMECON 15.40 15.14 32.71 63.14 47.62 88.36 USSR 10.47 21.0& 50.90 29.37 41.76 Czechoslovakia 5.74 3.22 6.71 10.30 9.25 12.23 Romania o.o8 0.63 2.64 0.07 5.50 22.71 Others 1.13 0.82 2.28 1.87 3.50 11.66

Other Europe 0.43 1.61 5.66 3.89 16.36 109.64 Switzerland 0.12 0.41,7- ~T? 5.48 Sweden 0.28 0.20 1.43 o.63 2.38 22.79 Greece .. .. 0.15 0.10 2.10 24.13 Others 0.03 1.05 3.64 1.34 7.13 57.24

North America 1.08 4.81 18.81 38.85 21.84 84.73 USA 4.78. I T5t 221.3 83.97 Canada - 0.03 3.66 16.71 0.01 0.76

South America - 11.37 7.59 - 0.03 1.01 Argentina - 11-37 7.55 -_ Others - - - 0.03 1.01

Australia & New Zealand 28.57 26.94 29.60 44.17 133.86 160.06 Australia 297rt 26.94 29.60 44.17 133.30 160.06 New Zealand - - - - 0.56 -

Others 0.37 o.o6 0.83 0.25

Grand Total 204.43 410.67 744.98 981.00 11,706.89 3,032.33 - 75 -

Table 3.8: SERVICE RECEIPTS AND PAYMENTS (YR million)

Fiscal Years Ending June 30 1973/74 1974/75 1975/76

Investment Income Receipts 29.1 60.6 104.9 Payments -4.8 -6.3 -5.4

Transportation Receipts 14.0 24.2 33.7 Payments - .8 -5.7 -6.1

Travel and Tourism Receipts 9.5 15.2 30.0 Payments -10.7 -19.2 -24.0

Other Servicesi/ Receipts 89.3 123.6 174.2 Payments -40.9 -57.8 -111.4

Total Services2/ Receipts 141.9 223.6 342.8 Payments -57.2 -89.0 -146.9 Net Receipts 84.7 134.6 195.9

1/ Mostly government: n.i.e.

2/ Excluding workers;' remittances.

Source: Central Bank of Yemen and IMF estimates. Table 3.9: TECHNICAL ASSISTANCE RECEIVED (YR Million)

Fiscal Years EndinR June 30 1973/74 1974/75 1975/76 Fellow- Equip. Fellow- Equip. Fellow- Equip. Experts ships & Sup. Total Experts ships & Sup.. Total Experts ships & Sup. Total

Education 33 3 8 44 35 6 6 47 41 5 7 53

Public Hlealth 18 - 3 21 21 1 4 26 25 - 3 28

Public Administration 5 - 3 8 10 - 5 15 13 - 4 17 Agriculture 15 0 1 16 19 - 1 20 20 1 - 21

Construction 8 - 2 10 11 - 2 13 14 - 2 16 Industry 8 _ 1 9 8 - - 8 9 _ - 9

Transport & Cofmmunications I - - 1 1 1 2 4 4 - - 4

TOTAL 88 3 18 109 105 8 20 133 126 6 16 148

Source: Unpublished data provided by the Centeal Planning Organization. - 77 -

Table 3.10: OFFICIAL LOANS AND CREDITS (YR million)

Fiscal Year Ending June 30 1973/74 1974/75 1975/76 1976/77

Disbursements on Project and Commodity Loans 125 115 .213 Cash Loans 19 49 Total Disbursements 1 164 213 of which from: Multilateral Loans 6 68 113 IDA (6) (19) (59) Arab Fund (49) (54) Bilateral Loans 138 96 100 Arab Countries (43) (16) (36) CMEA Countries (12) (7) (36) PR of China (22) (29) (8) FR of Germany (61) (44) (20) Others

Total Repayments 15 17 14 of which to: Multilateral Agencies .. Arab Countries 14 13 9 CMEA Countries 0 1 2 PR of China .. FR of Germany .. 2 2 Others 1 1 1

Net Drawings 129 147 199

Source: Central Bank oi Yemen. Table 3.11: CENTRAL BANK RESERVES (YR million)

End of Fiscal'Year, June 30 1971 1972 1973 1974 1975 1976 1977

Convertible Reserves 35.7 157,6 295.4 401.0 841.4 2,129.4 4,141.9

SDRs 5.3 11.6 11.6 11.6 11.6 11.6 11.6 Reserve Position in IMF 7.5 8.1 13.8 13.8 14.1 13.1 24.0 Gold, Silver & Convertible Currencies in Hand 0.2 0.2 0.3 0.7 1.1 1.1 4.5 Convertible currency balances and securities abroad 22.7 137.7 269.7 374.9 814.6 2,103.6 4,101.8

Balances with the Central Bank of Egypt in Sterling Account 364.2 344.1 322.1 286.2 252.8 207.4 188.8

Source: Central Bank of Yemen and IMF. Table 4.1 EXTERNAL PUBLIC DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF JUN. 30, 1977

INCItES CENY CEST CCER17TEC JAN. ii 190C - JUN. 30, 1977 DEBT REPAYABLE IN FOREIGN CURRENCY AAC GCODS 11 THOUSANDS OF U.S. DELLARS)

O E B T O U iST A N O i N G I N A R R E AR IYPE EF CRECITCR -- _____ --- CREOIiCR COUNTRY DIS0URSED 2UNESOBURSEDI tOtiE s PRINCiPAL i INTEREST

_____~~~~~~~~~--__------:-_-_------: s-- s s SUPPLIEPS CREDITS GERPANY. FED.REP.; OF 2.430 - 2,430 - ItALY 270 - 270 - T1TAL SUPPLIERS tREtiiS 2,700 - 2.700 -

hULTIlERAL LCANS ARAe FUNC EC SOC OEV 22,500 33.931 56,431 - ICA 35,300 14,450 109,750 - OPEC FUNO 1.i25 1,125 2,250 - TOTAL MULlILATERAL-ttARS 58.925 IC9,506 168,431 -

BILATERAL LEANS ABU OHABI 1,610 S.700 11,310 - ALGERIA 4,000 1,000 5,000 - - CHIhA, P.R. GF 47,07C 31,821 78,891 2,925 - GERMAN DEE. REP. 5,847 1,163 7,010 2,123 GERPANY, FED.REP. OF 63,771 11,622 759399 - - IRAQ 5.828 159351 21,179 - KUWAIT 25,580 S,410 34,S90 2,000 I1o NErHERLANCS - 7i280 7,280 - SAUCI ARAEIA - IC,160 10,160 - UNITED STATES - 1,360 1,360 - - USSR 76,240 29,063 105,303 16,704 30 tGTAL BILATERAL LEANS 229,952 127930 357*E82 23,752 160

TOTAL EXTERNAL FUBLIC DEBT 291,577 231,436 529#C13 23,152 160

NOTESS 11I CNLY DEBTS blili AN ORIGIAAL OR EXTENDED mAiURITY OF tVER ONE YEAR ARE INCLUDED IN THIS TABLE. (-12) DEBT-OUTSTANDING INCLUDES PRINCIPAL IN ARREARS BUT EXCLUDES INTEREST IN ARREARS. Table 4.2; SERVICE PAYMENTS, COMMITMENTS, DISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT PROJECTIONS BASED ON DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF JUN. 30, 1977

INCLUDES CNtY OE8t C1CMIITEO JAN. 1, 190C - JUN. 30, 1577 CEBI REPAYABLE IN FOREIGN CURRENCY AND GCUOS IIN IHCUSAPOS CF U.S. COLLARSI ICTAL YEAR I DEeT OU1SANDING Al 2 1 R A N S-A C I I 0 N S C U R I N G P E Q I 0 0 OTHER CHANGES : BEGIIhNIG CF PEPICC 2 s __ ------… ------3 DISBURSEO * INCLUDING s CChHIT- 2 OISBURSE- 2 S E R V I C E P A V P E N 1 S * CANCEL- I ADJUST- $ ONLY SUNDISeURS[Ct PENIS 2 PENIS 2---- …------LATIONS MNENT * * 2 * 3 PRINCIPAL I INTEREST * TOTAL 2 t 2(1) 2 ~~~12)2 (3) 2 4) 2 53 2 (6) 2 I?$ 2 (8 9)

1969 - 4.COO - - 1970 - 4,000 - - - - - _ _ 1911 4CC-,c - - - - - _ _ 1972 - 4,000 7,70C 230 - - - - - 1973 230 11,700 32,213 24,147 6,013 743 6,756 - 283,172 1974 182,307 321,C72 56,353 56,971 8,115 707 9,572 - 6,329 1915 235,655 374,889 719296 22,606 2,906 173 3,759 - -6,209 1976 249,998 436,S9C 86,033 43,139 4,123 1,I22 5,245 23,922 7,719 1977-1 214,439 502,157 31,705 22,741 1,508 444 1,952 - -3,941 IS77-2 291,511 529,C13

* * * $ * * 1IPE FCLLCWING FIGURES ARE PRLJECTEO 4 * * * * 0 1977-2 291,171 529,C13 - 55,655 10,454 704 11,158 - -27,752 1918 305,C26 4SC,8C1 - 39,831 17,124 1,826 180,950 - 1 1979 33t,730 473,*84 - 39,436 17,t25 2,323 19,948 - - 1980 353,54C 45t,C5S - 31,466 20,142 2,983 23,125 - 2 1981 364,165 435,SIS - 20,215 22,896 3,925 26,821 -1 1982 362,184 413,C22 - 19,655 22,S64 3,851 26,815 - 4 1983 359,C77 390,C62 - 12,927 25,833 3,896 29,729 - - 1984 34t,l6e 364,229 - 8,789 28,E14 3,873 32,687 _ 2 19d5 321,143 33',411 - 5,816 28,060 3,658 31,718 - 3 1986 303,899 301,360 - 3,461 19,E57 3,445 23,342 - 5 1987 281,411 2E1,46e - - 20,555 3,353 23,908 - 3 1988 266,916 261,911 - - 12,112 3,136 15,998 - 2 1989 254,c5e 254,056 - - 12,770 2,935 15,705 - 3 1990 241,28S 241,28S - - 12,214 2,734 15,008 - 3 1991 229,C19 229,C18 - - 12,214 2,536 14,810 - I 1992 216,14! 216,145 - - 12,261 2,336 14,597 - S 1993 2C4,4ES 204,485 - - 12,161 2,136 14,797 - - 1994 1S,828 s11.2e - - 10,760 1,941 12,701 - 6 1995 181,014 18t.C74 - - 10,302 1,167 12,069 4 1996 17C,176 I17C,76 - - 8,755 1,612 10,367 I1

lHIS COLUMN ShGWS THE AD'CUIT CF APITIPETIC IP8ALANCE IN THE AMOUNT OUTSTANDING INCLUDING UNDIS8URSED FROM ONE VEAR TO tHE NEXT. THE POSt CGCPCN (AUSES OF IMBALANCES ARE CHANGES IN EXCHANGE RAIES AND 1RANSFER OF DEBTS FROM ONE CATEG[RY 10 ANEtHER IN 1CE TABLE. Table 4.2: SERVICE PAYMENTS, CpMMITEMENTS, DISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT PROJECTIONS BASED oh DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF JUN. 30, 1977

INCLtOES EhLY DEBT CCPMITTEC JAN. I, 1900 - JUN. 30, 191?

FCETN(1E: OEeTS EXCLUCEC BECAUSE REPAYMENT tERMS UNKNOWN.

YEAR I CEEl CUTSTANDING At : BEGIJAING CF PERICO

* DISEUPSED : INCLUCING OGALY :UNDISBURSED I9ii-2 4,000 4.000

* THIS COLUMN SHOWS 1HE APOUNT CF aPI1HMETIC IPBALANCE IN THE AMCUUT OUTSTANDING INCLUDING UNDISBURSED FROM ONE YEAR TO THE NEXT. THE POST COPPEt CAUSES OF IMBALANCES ARE CHANGES IN EXCHANGE RATES AND TRANSFER OF DEBTS FROM ONE CATEGGRY IC ANCEhER IN 1FE TABLE. - 82 - Table 5.1: SUOMARY O GOVERNMENT FINANCES (YR Million)

Actuals Fiscal Year Ending June 30 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77

1/ Domestic Revenuest- 97.4 151.3 199.0 276.8 381.1 564.5 1292.8 Tax Revenue 73.6 122.9 158.4 227.4 301.1 498.3 1074.4 Nontax Revenue 23.8 28.4 40.6 49.4 80.0 66.2 218.4

Current Expenditures.-l/ 170.7 228.3 271.5 322.5 472.3 603.5 841.0 Defense and Public Order and Safety 92.6 105.2 136.4 187.1 269.3 363.1 524.0 Health and Education 14.5 17.9 26.6 30.7 43.8 68.7 92.9 Other 63.6 105.2 108.5 104.7 159.2 171.7 224.1

Balance on Current Operations - 73.2 - 77.0 - 72.4 - 45.7 - 91.2 - 39.0 451.8

Development Expenditures 83.2 55.8 56.9 139.3 184.7 339.9 462.5 Finance by External Loans.d 83.2 55.8 56.9 125.6 115.4 213.1 188.1 Budgeted ...... 13.7 69.3 126.8 274.4

Overall Deficit (-) - 156.4 - 132.8 - 129.3 - 185.0 - 275.9 - 378.9 - 10.7

Financing of Deficit 156.4 132.8 129.3 185.0 275.9 378.9 10.7

External Financing (Net) 119.2 170.6 116.5 238.5 536.3 609.0 606.1 Commodity and Project Loans 83.2 55.8 56.9 125.6 115.4 213.1 188.1 Cash Loans 36.0 59.4 0.8 18.8 48.9 30.4 19.5 Less Repayments ...... - 15.1 - 16.9 - 14.1 - 19.4 Cash Grants n. a. 55.4 58.8 109.2 388.9 379.6;-/ 417.9

Domestic Financing (Net) Increase in D/posits (-) 37.2 - 37.8 12.8 32.0 - 231.3 - 245.0 - 531.9 Central Bank mL 32.7 - 39.8 31.3 - 46.3 - 210.4 - zJ7.7 - 484.7 Commercial Banks 4.5 2.0 - 18.5 14.8 - 20.4 12.7 - 47.2

Statistical Adjustmenrt.. - 21.5 - 29.1 14.9 - 63.5

i/ Excludes grants for budgetary support from revenues, and loan repayments from expenditures. t/ Equals drawings on commodity and project loans. 3/ Includes part of the arrears on loans contracted in the late 1950s and early 1960s. 4/ Differs by about YRIs 78.4 million from the figures given for the balance of payments, as this amount was not allocated to budgetary accounts. 5/ Deposits as reported by the Central Bank to IMF Data Fund; they exclude a foreign currency time deposit of the Ministry of Education associated with an external loan (about US$8-US$9 million), and also exclude Central Bank profits allocable to the Government as of June 30. 6/ Reflects lags in recording, exchange rate valuation adjustments associated with external financing and other errors and omissions.

Sources: Ministry of Finance and Central Bank of Yemen. - 83 -

Table 5.2: GOVERNMENT REVENUES (YR Million)

Actuals Fiscal year ending June 30 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77

Tax revenue 73.6 123.6 158.4 227.4 301.1 498.3 1,074.4

Taxes on income and profits 2.2 3.3 6.9 19.0 16.9 24.0 40.3 Tax on wages and salaries 1.8 1.9 2.9 9.7 4.6 8.4 15.6 Tax on commercial and industrial profits ------6.4 10.4 12.8 21.7 Tax on monopoly profits 0.3 1.2 3.1 0.8 0.4 - -- Tax on rental income 0.1 0.2 0.9 1.3 1.3 2.1 2.3 Other - - - 0.8 0.2 0.7 0.7

Taxes on goods and services 10.1 19.7 22.4 27.9 38.7 46.0 38.2 Selective excises on goods 8.1 15.9 19.6 21.5 30.9 34.0 2 Tobacco and cigarettes n.a. (0.8) (2.0) (2.6) (2.2) (5.0) (4.1) Petroleum products (8.1) (14.6) (17.5) (18.0) (27.9) (28.0) (21.2) Soft drinks n.a. (0.5) (0.1) (0.8) (0.8) il.G) (1.5) Selective taxes on services -- 0.5 0.2 1.0 0.6 0.8 0.7 Transport tax -- n.a. n.a. (0.6) (0.2) (0.4) (0.1) Cinema tax -- n.a. n.a. (0.4) (0.4) (0.4) (0.6) Motor vehicle taxes 2.0 3.3 2.6 3.0 3.6 6.7 9.5 Other taxes - - -- 2.4 3.6 4.5 1.2

Taxes on international trade 52.7 77.0 113.0 155.5 222.2 394.0 928.9 Import duties and taxes 52.7 75.8 112.0 155.2 222.0 393.2 928.6 Customs duties (35.3) (55.7) (82.0) (108.9) (160.6) (283.0) (675.0) Defense tax (11.8) (11.8) (19.5) (31.9) (43.8) (76.7) (176.0) Statistical tax (5.6) (5.5) (9.0) (12.6) (16.5) (30.7) (68.9) Other -- (2.8) (1.5) (1.8) (1.1) (2.8) (8.7) Export duties and taxes -- 1.2 1.0 0.2 0.2 0.8 0.3

Other taxes 8.6 23.4 16.1 24.9 23.3 34.3 67.0 Religious taxes (Zakat) 7.2 10.7 11.9 15.7 14.7 21.0 32.8 Agricultural Zakat (4.7) (6.7) (6.4) (8.0) (8.4) (13.5) (22.6) Cattle Zakat (0.6) (0.8) (0.8) (1.1) (1.4) (1.0) (2.3) Wealth Zakat (0.3) (1.0) (1.7) (2.1) (0.8) (1.7) (3.6) Poll Zakat (1.6) (2.2) (3.0) (4.5) (4.1) (4.8) (4.3) Stamp taxes - 0.7 4.2 9.2 8.6 13.3 34.2

Nontax revenue 23.8 28.4 40.6 49.4 80.0 66.2 21,.4 Property income 3.2 6.1 9.6 15.8 38.5 39.3 157.2 Administrative fees and charges 20.6 22.3 31.0 27.5 33.8 15.6 47.1 Fines and forfeits n.a. n.a. n.a. 2.8 3.3 9.4 14.1 nther 1/ - - - 3. 4.4 1.9 -- Total revenue 2/ 97.4 151.3 199.0 276.8 381.1 564.5 1.292.8

1/ Includes small maounts of 'capital revenues" derived from the sale of property. These amounted to YRls 1.6 million and YRls 1.5 million in 1973/74 and 1974/75, respectively. 2/ Excludes grants for budgetary support.

Source: Ministry of Fimance. 3 ..-. I 330r03d p. 11po .3A3 q p33000j /T

rr~~~~~~~~~~~~~~~~~~~t~~Xwgi-i v_iid a}1' izwiqXoiW-JAIo * J§riiu,Zo C01 q}44riAd pwit po°w{uc Vii T; V uJ

Iet? 1 iISII1 VISI T11 --- 91SCI 9 111 6I9S C SS I'911@ Pmp u ....

VMT rlz T **ga o El- MI osTt 1ITE TF.6ff .1.131q.5

_ iWF_ nw 9 __ 1 ---___------%I i Sw 61 r'zr---0I 691I 9q. .. Wu uzzv rim nr u /1 . i rum u-, *U 4.oq-- .)vu q

0.1 ...... u. 33 t:OE *-O1 11r91 o 0'1 e --- 60o u 0 .0 uS33o .0 t*o0 .*S 6 11 90dl t0 01l °0 00 9 l 01 61 *0 S 01 91 e; p05 330300531 -- - -~~~~~~. 00 0 - CIO I000 03 0 *0 5 033 i00 11t 11 C tl 1I6 90 1 0 1

:.Olzt O O--- t O t'0 t'O --- '0 ------___ *e-U *' 50 V00. 10W 30 30.. 10 .-Iujuj 160 111 1 9t 1 w0 W .ln I I e O9

96 0z -1s 9t po --- 9 1 r o TM090 0 3 90 0u 5 0u *v u 0013 0l6 *00 I 6 901 11 0,9 o'? 9O I'3l Vll 03 Sl u 0 WEI A033u3Jp1.000 .05 p.0 l33uJ5 S t~~~~~~~6 19 f4 HF I4 ri PFT 0T* Ir X j~ 91 FE b 050*0 7 IS 9"'iE

?4i- FtL...tL...11- ~~~~~~ 0 *50 50 0033303309 pOlOISt ~~~~~~~~~~~~~~~~~~~0030I-I00335033....3 6i soc rim iT Vii ri --- eT 7W nr 7W W 7 7 00 350

S 601 0 91 S t6 t 9t 1il 1S9 3399 9 Co 919 C01C 9601 OCE CI9t SSl * 11 4-1-S. 05 30930 Poiqoj

.- 31BnXpud.l 3 l 1.1.1 ... 4p.Ud -. 31pu d= 1-4°1 * n4lFudz, t.lpuda1.41 .. jp-d *-n1puln... J-X.3.Lo 1-4-L OC eunf uIPuX ...A I ... 1 f.ftH u -0 nD LInD Ju u 19-JJn9f_dulu zw fudo**dq"N f f-1n0 /till /9lCL61 93/ l 9t/1L _U901I FT16T 003*309 3 9t/0t6

03101303amll4331U09310 l-S *t0 l - 85 -

Table 5.4: GROSS SAVINGS OF PUBLIC AND MIXED ENTERPRISES (YR Million)

Enterprise Capital Net Profits Depreciation Dividends Gross Savings Y.B.R.D. a/ 10.0 - 1974 6.1 2.6 2.0 6.7 - 1975 10.7 2.6 2.0 11.3

Yemen Airways b/ 0.9 - 1974 3.2 0.5 - 3.7 - 1975 20.6 0.4 - 21.0

Yemen Petroleum Company c/ 10.0 - 1974 4.9 1.1 n.a. 6.0 - 1975 9.2 0.9 n.a. 10.1

Yemen Drug Co. 2/ 2.1 1975 1.1 0.1 n.a. 1.2

Yemen Cotton Company d/ 1.8 - 1973/74 0.9 0.03 n.a. 0.9 - 1974/75 2.6 0.03 n.a. 2.6

Yemen Cement Ind. b/ 50.9 - 1973/74 0.5 4.1 0.3 4.3 - 1974/75 3.2 3.4 1.9 4.7

Nat'l Tobacco Company c/ 5.1 - 1975 1.7 0.5 n.a. 2.2 Yemen Genl. Electric b/ 41.0 - 1975/76 3.1 1.8 - 4.9

Yemen Textile Company b/ 17.6 - 1974 2.9 2.1 - 5.0 ; 1975 1.6 2.0 - 3.6

TOTAL (1975): 56.7 a/ Government: 51%, Private: 49% bI Government: 100% c/ Government: 40%, YBRD: 35%, Private: 25% d/ Government: 51%, YBRD: 30%, Private: 19% e/ Government: 26%; YBRD: 25%, Private: 49% Table 6.1: MONETARY SURVEY (Yk Million)

June 30 June 30 June 30 1971 June 30 June 30 June 1972 1973 1974 30 June 30 1975 1976 Foreign Assets (net) 1977 Assets 432.1 539.5 609.1 692.48y182.3 Liabilitles 2 604 2 4,106.4 6J)2.4 751.8 1,256.1 2,804.2 4,555.2 -83.3 -59.4 -73.8 Domestic credit -197.4 448.8 196.3 Claims on Government (net) 211,8 270.2 141.2 103.4 307.2 232.6 159.5 Claims on nongovernment sector lOl. 69.7 535.1 Credit 55.1 108.4 -406.6 -939.2 to public enterprises and )(206) 168.5 237.5 394.2 !nvestment (31.5) (57.1) 566.1 1,474.3 in mixed enterprises ( (64.8) (108.7) Credit to private sector ( (102.5) (78.0) (34.5) (76.9) (111.4) (172.7) (285.5) Assets = Liabilities (463.6) (1,396.3) 428.4 751.3 879.3 999.6 1,414.8 2,766.3 Money and quasi-money 4,641.5 Money 305.2 400.7 599.0 269.1 756.3 1,141.9 2,509.1 Currency outside banks 348.2 488.7 639.5 4,370.4 Demand (230.5) (295.7) 964.0 2,028.4 3,516.0 deposits (412.8) (543.4) (794.0) Quasi-money (38.6) (52.5) (1,680.5) (3,020.9) (75.9) (96.1) (170.o) 36.1 52.5 (347.9,) (495.1) 110.3 116.8 177.9 O Other items (net) 480.7 854.4 323.2 0' 350.6 280.3 243.3 272.9 257.1 257.1

Source: Central Bank of Yemen and IMF - 87 -

Table 6.2: COMPOSITION OF MONEY AND QUASI-MONEY (YR Million)

Amounts as of June 30 Changes During 1974 1975 1976 1977 1974/75 1975/76 1976/77

Currency outside banks 543.4 794.0 1,680.5 3,020.9 250.6 886.5 1,340.4 Central Bank issue 549.0 804.0 1,708.6 3,067.3 255.0 904.6 1,358.7 One, five and ten rial notes (270.5) (372.8) (363.7) (352.2) (102.3) (-9.1) (-11.5) Twenty rial notes (99.2) (166.2) (188.5) (295.2) (67.0) (22.3) (106.7) Fifty rial notes (179.3) (261.0) (730.4) (997.1) (81.7) (469.4) (266.7) Hundred rial notes (--) (--) (420.8) (1,415.7) (--) (420.8) (994.9) Coin and other 1/ (-) (4.0) (5.2) (7.1) (4.0) (1.2) (1.9) Treasury Currency .4.5 4.5 4.5 4-5 ------Less: Cash in banks -10.2 -14.6 -32.7 -50.9 -4.4 -18.1 -18.2

Nongovernment deposits 2/ 212.9 347.9 828.6 1,349.5 135.0 480.7 520.9 Demand deposits 96.1 170.0 347.9 495.1 73.9 177.9 147.2

Foreign currency deposits 16.6 23.6 60.8 70.9 7.0 37.2 10.1

Time deposits 37.3 87.4 211.0 402.9 50.1 123.6 191.9

Savings deposits 12.0 19.1 46.9 74.0 7.1 27.8 27.1

Earmarked deposits 50.9 47.8 162.0 306.6 -3.1 114.2 144.6

Money and quasi-money 756.3 1,141.9 2,509.1 4,370.4 385.6 1,367.2 1,861.3

1/ Reflects retirement of temporary issue ("supporting currency") in 1973/74 and issue of new decimal coins from 1974/75.

2/ Deposits of residents other than Government and banks with commercial banks. Central Bank holds only government and bank deposits.

Sources: Central Bank of Yemen and IMF. l/ Table 6.3: COMMERCIAL BANKS ADVANCES AND INVESTMENTS (YR Million)

December 31, June 30, June 30, June 30, June 30, June 30, June 30, 1971 1972 1973 1974 1975 1976 1977

Participation in Capital of Mixed Enterprises 9.2 10.2 13.8 15.5 18.9 9.1 14.7

Credit to Public Enterprises 17.7 28.9 38.6 40.7 70.4 65.6 59.3 Financing Exports 7.9 20.6 25.6 19.0 24.4 30.3 -- Cotton ( 7.9) ( 19.9) ( 24.8) ( 19.0) ( 24.4) ( 30.3) __ Rock Salt (.) ( 0.7) ( 0.8) ( --- ) ( -- ) ( --- ) -- Financing Imports (including. Imports of Industrial Equipment) 4.2 4.5 3.0 16.4 38.4 34.8 -- Other 5.6 3.8 10.0 5.3 7.6 0.5 --

Credit to Private Sector 43.2 68.8 113.9 172.5 285.6 463.2 1396.3 Financing Imports 26.7 54.6 65.5 125.5 226.5 318.8 -- Financing Exports 2.4 2.2 2.5 0.9 2.1 3.4 -- c Financing Trade in Locally c Manufactured Goods ... -- -- 4.3 3.2 5.9 Financing Industrial Enterprises 0.5 1.6 2.1 ------Financing Other Business Enterprises 7.0 7.3 28.2 28.2 38.6 74:9 -- Private and Professional Loans 6.6 3.1 15.6 13.5 15.2 60.2 --

Other V ... 0.1 0.1 0.2 0.2 0.4 --

Total 70.0 108.0 166.4 228.9 375.1 538.3 1470.3

1/ Excluding advances to Government.

2/ Participation of the Yemen Bank for Reconstruction and Development in Union des Banques Arabes et Francaises.

Source: Central Bank of Yemen. - 89 -

Table 6.4: INTEREST RATE STRUCTURE (in percent per annum)

June Aprii Augup Junne April April Changes effective from 1976L/ 1972_2/ 1973_.2 19744/1 1975-5 197a/

Currency Board/Central Bank Treasury bill interest and discounts 1 3 3 4 4 4

Commercial Banks Lending rates Advances to Government 4 4 4 4-6 4 4 Commercial and other advances5/ 8 8-10 10 10-12 12 10 Mortgage and personal loans 11 11 11 11-13 14 10 Deposit rates Demand deposits - - - - - Fixed (time) deposits: Three months (and above one) 3 4.5 3-6.5 3-6.5 6 6.5 Six months (and above three) 3.5 5 6-7 6-7 7.5 7 Nine months (and above six) 4 5.5 6-7.5 6-7.5 8 7.5 Twelve months (and above n:Lne) 4.5 6 6-8 6-8 9 8 Savings deposits 3 4 4-6 4-6 5 6

1/ Commercial banks' rates are those of YBRD: its lending rates previously were 3 percent to Government, 7 percent on commercial and other advances, and 10 percent on mortgage and personal loans, while il.s deposit rates were as shown.

2/ Treasury bill rate raised in January 1972. Deposit rates are minimum rates effective from April 1972.

3/ Minimum rates on commercial bank lending and permissible ranges on deposits.

4/ Prevailing rates reported.

5/ Excluding some cotton and manufacturing credit.

6/ Fixed rates on commercial bank lending and minimum rates on deposits.

Source: Central Bank of Yemen.. - 90 -

Table 7.1: MAJOR LAND USE BY GOVERNORATES ('000 hectares)

Total Cultivated Marginal Forest and Governorate Area Land Agriculture Shrubs Other

Sana ra 8,000 400 600 100 6,900

Hodeidah 3,500 235 500 450 2,315

Taiz 1,200 250 100 500 350

Ibb 1,300 300 50 400 550 Hajja 1,700 130 250 50 1,270

Saada 1,800 60 200 - 1,540

Dhamar 1,000 100 200 100 600

Beida 1,500 40 100 - 1,360

Total 20,000 1,515 2,000 1,600 14,885

Source: CPO,Statistical Yearbook , 1976 - 91 -

Table 7.2: CULTIVATED LAND AND IRRIGATION BY SOURCE OF WATER

('000 hectares)

Cultivated Spate flood Governorate land Rainfed irrigated Perennial Wells

Sana'a 400 375 - 20 5

Hodeidah .235 105 100 5 25

Taiz 250 221 10 18 1

Ibb 300 279 - 20 1

Hajja 130 115 10 5 -

Saada 60 60

Dhamar ioo 92 5 3

Beida 40 38 - - 2

Total 1,515 1,285 120 73 37

Source: CPO.Statistical Yearbook, 1976 - 92 -

Table 7.3: VALUE OF AGRICULTURE PRODUCTION (YRLs million at 1971/72 constant prices)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76

Crops 676.6 871.2 821.1 1,024.9 920.8 1,186.2 1,090.5

Livestock 193.9 264.4 333.5 239.7 220.8 275.6 270.3 Fisheries 20.8 21.0 21.3 16.3 12.7 12.0 12.3

Forestry 45.9 44.6 43.3 42.0 40.7 39.5 38.3

Total 937.2 1,201.2 1,219.2 1,322.9 1,195.0 1,513.3 1,411.4

Source: CPO and ECWA, National Accounts of YAR, 1969/70-1975/76 Table 7-4: AREA AND PRODUCTION OF MAIN AGRICULTURAL CROPS (area: '000 hectares, production: '000 tons)

1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 Area Production Crop Area Production Area Production Area Production Area Production Area Production Area Production Cereals Sorghum &millet 886 610 973 730 920 627 1080 809 952 639 1215 1008 1145 859 Maize 4 8 16 30 20 16 50 70 52 80 50 79 50 72 wheat 35 16 30 33 25 25 50 50 70 71 50 56 50 52 Barley 145 160 140 154 125 140 110 120 77 85 73 80 68 75

Legumes, Vegetables Legumes 50 50 50 60 60 60 60 56 65 64 71 71 76 76 Green vegetables 8 50 10 100 -15 137 17 150 16 150 18 168 20 183 potatoes 4 20 6 55 5 58 6 64 6 64 7 71 7 76

Fruits, tree crops Fruita 4 23 5 25 5 28 10 60 10 60 12 60 12 65 Grapes 4 10 7 30 8 35 8 35 8 31 9 40 9 42 Dates - 3 - 5 _ 5 - - - Coffee 5 4 5 4 5 4 5 4 5 4 4 3 4 3

Industrial Crops Cotton 5 2 10 10 15 15 20 19 20 20 28 27 14 13 Tobacco 4 2 4 3 4 5 4 5 4 5 4 5 5 6 Sesamue 4 2 8 4 8 5 8 4 8 4 9 5 10 6

Source: Centrol Planning Organization--corrected series 1977.' Table 7.5: VARIABILITY OF RAINFALL BY HDNTHS, SOUTHERN UPLANDS

(mm)

lot Rainy Season 2nd Rainy Season Station/Year Jan Feb Mar Apr May June Total July Aug Sept Total Oct Nov Dec Annual Al-Udein 1970 0 0 24 79 - 48 - 116 45 2 163 85 0 0 399 1971 3 0 22 3 77 77 157 43 85 79 207 3 10 0 402 1972 1 1 6 86 34 66 186 86 51 27 164 13 - - 371 1973 8 0 22 2 79 51 132 76 166 51 293 4 5 1 465 1974 0 28 38 36 80 93 209 40 23 36 99 12 0 22 408 1975 23 15 91 60 102 53 185 102 150 42 294 - - - 638 Ibb Town 1970 8 4 45 79 112 258 449 174 199 110 483 60 0 0 1,049 1971 8 0 34 45 213 215 473 202 240 115 559 16 .24 12 1,124 1972 0 24 34 119 78 185 382 232 244 184 660 73 105 23 1,301 1973 43 0 0 50 202 190 442 195 364 165 724 58 3 0 1,270 1974 0 26 77 291 134 260 685 202 236 223 662 51 0 0 1,500 1975 5 23 60 164 248 367 772 414 40 221 685 50 22 34 1,648 1976 7 43 75 125 329 249 703 308 426 336 1,070 175 120 0 2,193

Source: ilydro-Meteorological Section, Tihama Development Authority Table 7.6: VARIABILITY OF RAINFALL BY MONTHS, TIHAHA COASTAL PLAINS (mm)

1st Rainy Season 2nd Rainy Season

Station Jan Feb Mar Apr May June Total July Aug Sept Total Oct Nov Dec Annual

Zahid Town 1970 15 0 0 2 0 0 2 8 16 63 87 29 0 0 133 1971 4 0 1 5 39 0 44 0 0 29 29 0 38 5 121 1972 11 0 0 12 0 8 20 0 17 32 49 15 0 0 95 1973 6 0 1 0 11 0 11 4 6 57 67 6 1 0 92 1974 0 0 22 0 11 0 11 15 40 118 173 2 0 0 208 1975 0 0 0 28 0 0 28 14 73 78 165 0 0 0 193

Wadi Zahid Camp 1970 3 0 0 3 0 1 4 41 34 173 248 124 0 0 379 1971 10 0 12 16 49 0 65 2 12 100 114 24 10 11 246 1972 0 3 1 0 10 7 17 3 96 103 202 3 0 0 226 1973 22 0 0 0 51 3 54 25 79 93 197 35 7 0 315 1974 0 0 17 1 18 15 34 69 109 281 459 36 0 0 546 1975 0 2 0 80 32 5 117 8 206 68 282 36 0 0 437

Source: Hydro-Meteorological Section, Tihama Development Authority Table 7.7: VARMA8ILITY OF RAINFALL BY RONTHS, CENTRAL HtGHLANDS

(m)

lot Ralny Season 2nd Rainy Season

Station/Year Jan Feb Mar Apr May June Total July Aug Sept Total Oct N,v l.e^' Annuial Sana'a 1963 14.3 3.8 10.6 13.0 128.0 80.8 221.3 20.9 81.5 0.0 102.4 0.0 47.2 I145 1414.6 1964 2.2 4.0 1.7 38.3 12.5 8.0 58.3 3). , 8.2 5.1 53.2 0.0 1.6 10.9 132.4 1965 0.0 0.0 25.9 56.4 0.0 o.6 57.2 28.i 88.9 0.0 117.4 0.0 11.7 0.0 212.0 1966 3.9 11.3 9.5 35.3 7.2 0.0 42.5 24., 65.6 143 94.2 .,) 1.1 0.0 162.7 1967 0.0 17.0 - - 66 h 94 2 i 1968 0.0 0.0 8.4 84.1 11.1 14.9 110.1 0.0 0.0 1.0 1.0 3.0 3.0 0.0 122.5 1969 9.0 16.4 .1.1 25.2 13.5 0.0 38.7 19.4 28.5 0.0 47.9 1.5 0.0 0.0 114.6 1970 4.1 0.0 1.0 1.7 1.0 1.0 3.7 0.0 136.7 12.5 149.2 0.0 0.0 0.0 158.o 1971 23.9 0.0 23.8 21.5 4.9 0.0 26.1 17.3 9.0 0.0 26.3 0.0 10.2 0.7 111.3 1972 0.0 3.0 10.0 83.1 6.o 0.5 89.6 0.0 6.9 0.5 7.4 0.0 6.o 0.5 116.5 1973 0.0 0.0 0.5 5.6 10.0 3.0 18.6 36.0 101.0 5.0 142.0 0.o 0.0 2.0 163.1 1974 0.0 0.0 34.8 44.2 89.1 0.0 133.3 1.5 45.8 0.0 47.3 0.0 0.0 0.0 215.4 1975 1.0 2.0 35.8 109.4 0.2 1.9 111.5 84.5 102.0 13.8 200.3 0.0 0.0 0.0 350.6 1976 0.0 1.1 27.7 32.0 36.6 0.0 68.6 19.5 3.7 0.0 22.2 0.0 31.5 3.0 194.1

Ave. 1970-76 4.1 0.9 19.1 42.5 21.1 0.9 64.5 22.6 57.9 4.5 85.o 0.0 6.8 0.9 181.3 Yarim 1970 14.6 16.2 34.9 54.9 2.4 24.1 81.4 86.5 105.8 36.4 228.7 0.0 0.0 0.0 365.8 1971 0.0 5.2 104.6 35.7 178.3 56.5 270.5 68.9 134.5 65.2 268.6 0.0 19.0 040 667.9 1972 0.0 3.6 33.7 202.1 46.o 4.3 252.4 59.9 69.7 5.3 134.9 23.4 0.0 14.5 1462.5 1973 0.0 0.0 2.4 21.0 48.9 61.7 131.6 61.6 138.2 54.5 254.3 0.0 o.o 7.9 396.2 1974 0.0 21.9 59.3 65.0 100.5 33.2 198.7 114.5 151.6 21.3 287.4 2.3 0.0 4.s 574.1 1975 9.1 37.2 43.2 72.9 11.14 109.5 193.8 4.3 242.3 57.0 303.6 - - - 586.9 1976 0.0 29.8 80.8 10.6 67.3 27.1 105.0 63.0 88.4 6.2 157.6 8.6 48.6 0.0 430.4

Ave. 1970-76 2.0 16.3 51.3 66.0 , 65.0 45.2 176.2 65.5 132.9 35.1 233.5 4.9 9.7 3.8 197.7

Souirce: Sana'a 1963-66, 1974-76 Department of Meteorology, Civil Aviation Authority. Sana'a 1967-73 Statistical Yearbook of 1973, CPO Yarim 1970-76, Hlydrology Section, Tihama Development Authority. Table 7.8: MEAN, MAXIMUM AND MINIMUM MONTHLY RAINFALL AT SELECTED STATIONS

(MM)

Annual Station/Years Record Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Tatz (24 -yrs record) Mean 1.3 11.8 15.9 73.6 97.6 83.9 60.9 66.8 83.7 60.9 14.3 9.7 580.4 Maximum 15.2 84.6 60.9 138.6 213.4 149.8 134.7 141.7 137.1 130.0 53.9 36.5 831.4 (1966) :nai'i-um O.G u.u 0.0 U.0 30.4 22.8 10.2 25.4 25.4 5.6 0.0 0.0 308.9 (1976)

Zabid Camp (7 yra 1970-76) Mean 5.0 0.7 5.4 21.9 29.1 4.4 35.7 80.7 128.4 36.9 2.4 1.6 352.2 546.o (1974) Maximum 22.0 3.0 17.0 80.0 51.0 15.0 102.0 206.0 281.0 124.0 10.0 11.0 (1972) Minimum 0.0 0.0 0.0 0.0 0.0 2.0 12.0 68.o 0.0 0.0 0.0 0.0 226.0

Sana'a (7 yrs 1970-76) Mean 4.1 0.9 19.1 42.5 21.1 0.9 22.6 57.9 4.5 0.0 6.8 0.9 181.3 Maximum 23.9 3.0 35.8 109.4 89.1 3.0 84.5 102.0 13.8 0.0 31.5 3.0 350.6 (1975) (1972) Minimum 0.0 0.0 0.5 5.6 0.2 0.0 0.0 3.7 0.0 0.0 0.0 0.0 111.3

Yarim (7 yrs 1970-76) Mean 2.0 16.3 51.3 66.0 65.0 45.2 65.5 132.9 35.1 4.9 9.7 3.8 497.6 667.9 Maximum 9.1 37.2 104.6 202.1 178.3 109.5 114.5 242.3 65.2 23.4 48.6 14.5 Minimum 0.0 9.0 2.4 10.6 2.4 4.3 4.3 69.7 5.3 0.0 0.0 0.0 365.8

Ibb (7 yrs 1970-76) 1,468.4 Mean 10.1 17.1 46.3 124.7 219.2 246.2 246.7 250.0 193.5 68.9 35.8 9.9 Maximum 43.4 42.9 76.6 291.0 402.0 367.0 414.3 426.3 335.9 174.8 120.5 33.6 2,228.6 (1970) Minimum 0.0 0.0 0.0 44.6 77.5 185.5 174.2 199.2 109.8 15.5 0.0 0.0 1,050.1 (1976)

Sources: Taiz data from Department of Meteorology, Civil Aviation Authority; Sana'a data 1970-73 from CPO Statistical Yearbook, 1974-76 from Department of Meteorology, Civil Aviation Authority; Zabid Camp, Yarim and Ibb data from Hydro-Meteorological Section, Tihama Development Authority. - 98 -

Table 7.9: MOTOR PUMPS AND FUEL CONSUMPTION

Total Year Pumps Fuel consumed Price cost of fuel (1,000 Liters) (YRLs/Liter) (YRLs)

1969/70 1,264 12,640 0.380 4,803,200

1970/71 1,614 16,140 0.380 6,133,200

1971/72 2,014 20,140 0.430 8,660,200

1972/73 2,384 23,840 0.460 10,966,400

1973/74 2,900 29,000 0.630 18,270,000

1974/75 3,451 34,510 0.720 24,847,200

1975/76 3,951 39,510 0.810 32,003,100

Source: CPO and ECWA, National Accounts of YAR, 1969/70-1975/76. - 99 -

Table 7.10: FERTILIZER AND INSECTICIDE IMPORTS

Fertilizers Insecticides Year Tons CIF Value Tons CIF Value (YRLs 1,000) (YRLs 1,000)

1969/70 1,997 900 118 300

1970/71 3,153 .200 135 300

1971/72 4,046 500 218 500

1972/73 1,799 800 382 800

1973/74 4,256 1,500 375 1,200

1974/75 3,869 1,700 717 2,100

1975/76 7,932 1,400 2,510 2,900

Source: CPO and ECWA, National Accounts of YAR, 1969/70-1975/76. - 100 -

Table 7.11: COMPARISON WITH OTHER COUNTRIES OF AVERAGE FERTILIZER USE PER HECTARE OF ARABLE LAND AND LAND UNDER PERMANENT CROPS; 1974

Countrv Nitrogen Phosphate Potash Total _ - kg per ha

Y.A.R. 2.0 - - 2.0

Libya 4.0 1.6 0.6 6.2 Syria 4.5 2.2 0.3 7.0 Sudan 8.4 - - 8.4 Saudi Arabia 6.5 3.5 4.5 14.5 Bahrain 10.0 5.0 5.0 20.0

Egypt 126.1 22.8 1.9 150.8

Europe 78.4 55.6 57.2 191.3

The World 25.8 15.1 13.2 54.1

Source: FAO: 1975 Annual Fertilizer Review, pp. 52-62. - 101 -

Table 7.12: MANPOWER TRAINED FOR MINISTRY OF AGRICULTURE THROUGH JUNE 30, 1976

For For Taiz For For Type of technician Ministry and Ibb Hodeidah Sana'a Remainder Total

University trained: Agricultural Engineers 18 20 21 9 2 70 Veterinarians 1 - - 1 - 2

Technicians for: Plant Protection 2 2 2 10 - 16 Horticulture - 1 - 3 - 4 Forestry - - - 1 1 2 Mechanization 6 5 1 4 1 17 Extension /1 1 39 79 1 - 120 Veterinary 1 - - 1 - 2 Irrigation 1 3 1 - - 5 General agriculture 6 14 22 7 - 49 Statistics 1 1 - - - 2 Livestock - - 1 1 - 2

Technical laborers 5 - 1 12 - 18

Total 42 85 128 50 4 309

/1 Extension workers are preparatory level graduates with short-term - (6-9 months) training courses.

Source: Preliminary Working Paper by Ministry of Agriculture, September 1976. Table 7.13: KSTDIHTD REQUIREIElITS FOR UNIVESIT TLRAIN MANPOW BY SPECIALIZATION OVER NET FM TEARS

Plant Agricultural irrigation year Crops Livestock FLsheries Forestry lHorticulture Protection Statistics Extension Mechanization General Engineers Veterinary Total 1977 4 3 5 - 4 5 4 7 3 9 1 4 49 1978 4 4 6 3 6 4 6 6 1 5 5 8 58 1979 4 4 8 3 4 6 8 8 2 5 6 7 65 1980 4 4 8 4 5 8 8 6 2 5 3 6 63 1981 4 2 8 5 5 8 8 3 1 5 1 3 53 Total 20 17 35 15 24 31 34 30 9 29 16 28 288

Source: Preliminary Working Paper by Ministry of Agriculture. September 1976. Table 7.14: SSTDhATID ADDITIONAL TRAINED MNAIPOWER REQUIRED FOR MINISTRY OF AMRICULTIRE OVER NRXT 5 YEARS

Technicians University Trained ManPower Mechanical Atency Agriculture Irrigation Veterinars Total Agriculture Veterinary Irrigation Surveyors Engineering Mechanics Total Livestock Directorate 12 - 27 39 32 72 - - - 104 Fisheries Directorate 35 - - 35 o0 o - - - - 60 Irrigation Directorate I 10 _ 11 - - 20 10 - - 30 Planntng Statistics & Directorate 26 - - 26 64 - - _- - 64 Field Crops Department 20 - - 20 40 -- - - 40 Agricultural Extension Department 30 - - 30 310- - - - - 310 Forestry Department 15 - - 15 31 - - 2 - - 33 Horticulture Department 24 - - 24 31 - - - - 31 Plant Protection Department 30 - - 30 86 - - 2 10 98 Agricultural Credit 8ank j7 6 - 43 74 - - _ - 74 Mechanical Engineering Department 9 - - 9 14 - - - - 14 Sordud Agriculture Corporation 5 - 1 6 5 2 - _ 2 9 Total 244 16 28 288 747 74 20 12 2 12 867

Source: Preliminary Working Paper by Ministry of Agriculture, September 1976. - 104 -

Table 7.15: ANTICIPATED NUIBER OF AGRICULTURE STUDENTS RETURNING BY YEARS AND SPECIALIZATION

Specialization 1976 1977 1978 1979 1980 Total

General Agrlculture 10 12 32 43 13 110

Plant Protection 1 1 1 7 - 10

Agronomy 2 - - 3 2 7

Agri. Chemistry 1 - 1 - 2 4

Horticulture 1 - 1 3 - 5

Livestock - - - 4 - 4

Genetics - - - 2 - 2

Extension - - - 3 - 3

Soils - - - 4 - 4

Irrigation - - - - 2 2

Fisheries _ _ 5 5

Total 15 ]3 35 69 24 156

Source: Preliminary Working Paper by Itinistry of Agriculture, September 1976. - 105-_

Table 7.16: TERMS OF AGRICULTURAL CREDIT FUND (Medium and Long-Term Loans)

Investment Categories Grace Period Repayment Total by Project (Years) Period (Years)

______(Years) TDA project

Groundwater Development 2 8 10 Farm machinery 2 5 7 On-farm Development 2 8 10 Processing and storage 2 8 10 SURDEP

Wells, pumps 1 5 6 Orchards and coffee 4 6 10 Processing and storage 2 8 10 Grain Storage Project

Silo - YGGC. 5 9 14 Warehouses - YGGC 4 10 14 Bakeries - YGGC 3 10 13 Private bakeries - new 3 5 8 Private bakeries - modernization 1 4 5

Livestock Credit Project

Livestock finishing farm - LDC 5 5 10 Dairy farms - LDC 4 7 11 Milk colonies - LDC 5 4 9 Poultry - feedmill LDC 4 8 12 Village development -6 5 11 Landowners credit 2 4 6 Tenant credit 3 4 7 Small hold poultry farms 1 6 7 Batchers 1 1 2

YCGC a Yemen General Grain Corporation LDC = Livestock Development Corporation

Source: 'Activities of ACF and ACB', Supervision Report, Agriculture Division, EHEDNA (February 1977). - 106 -

Table 7.17: LEDMING ACTIVITIES OF AGRICULTURAL CREDIT FUND AND AGRICULTURAL CREDIT BANK-

Lending by ACF for SURDEP up to 28 February 1977:

Purpose of Loan Applications Executed No. Amount No. Amount (1.000 YRLs) (1.000 YRLs)

Tractors and machinery 66 6,280 2 170 Irrigation, groundwater tree plantations 262 8,496 73 1,783 Seasonal 117 49 70 42

Total 445 14,825 145 1,995

Loans by ACF for TDA up to 31 January 1976:

Purpose Wadi Zabid Wadi Mawr No. Amount No. Amount (1.000 YRLs) (1.000 YRLs)

Farm machinery 8 682 2 133 On-Farm development 30 183 16 96 Seasonal inputs 216 851 95 264

Total 254 1,716 113 493

Loans by ACB up to 1 February 1977:

Purpose/Branch No. Amount (1.000 YRLs)

Seasonal loans at: Izbid 237 1,362 Wadi Mawr 37 36 Beital Fakhi 188 646 Sana'a 5 /1 2,519 Tractor, pumps, buildings 35 3,123

Total 502 7,686

/1 Includes a loan to General Cotton Company, a loan to Seyhan Cooperative and a YRLs 1.4 million poultry feed loan. Sources: Agricultural Credit Bank and Agricultural Credit Fund. - 107 -

Table 7.18: AGRICULTURAL PRODUCTION TARGETS DURING THE FIVE-YEAPR PLAN 1976/77-1980/81

Production Percent Item 1975/76 1980/81 Increase (1,000 tons)

Crop Production

Cereal crops 1,058 1,363 29 Sorghum & millet 859 1,042 21 Maize 72 110 53 Barley 75 83 11 Wheat 52 128 136 Cotton 13 32 150 Oil crops 5.5 10.8 96 Dry beans 76 105 83 Tobacco 5.6 9.6 71 Vegetables 183 605 285 'Tomatoes 76 360 374 Coffee 3 4 33 Fruits 112.4 142 26

Animal Production

Milk & products 331 367 11 Eggs (million) 210 230 12 Meat (tons) 39,738 46,840 18 Skins (tons) 7,230 7,953 10 Fish (tons) 11,525 17,288 50

Source: Central Plann:lng Organization - 108 °

Table 7.19: AGRICULTURAL INPUT AND YIELD TARGETS DURING THE FIVE-YEAR PLAN, 1976/77-1980/81

Percent Item Unit 1975/76 1980/81 Increase

Chemical fertilizers tons 7,000 27,000 286

Insecticides tons 210 1,100 412

Veterinary medicines 1,000 YR 75 200 167

Feed concentrates tons - 17,500 -

Tractors no. 1,130 3,565 215

Tree seedlings Fruits 1,000 46 368 700 Forestry trees 1,000 400 2,000 400 Coffee 1,000 12 435 2,346

Flood irrigation 1,000 ha 120 136 13

Perennial irrigation 1,000 ha 73 79 8

Well irrigation 1,000 ha 37 83 124

Total irrigation 1,000 ha 230 298 30

Crop Yields

Sorghum tons/ha 0.75 1.00 33 Maize tons/ha 1.33 2,20 65 Barley tons/ha 1.10 1.32 20 Cotton tons/ha 0.93 1.30 40 Oil seeds tons/ha 0.56 0.80 43 Wheat tons/ha 1.04 1.60 54

Source: Central Planning Organization - 109 -

Table 7.20: FIRST FIVE-YEAR PLAN FOR IRRIGATION

('000 Riyals)

Total Expenditure Estimated Estimated before the Expenditure Expenditures Project Cost Plan during Plan after Plan

Projects in Tihama Wadi Zabid 149,500 32,000 117,500 - Wadi Mawr 250,000 18,000 175,950 56,050 Wadi Rima 175,000 10,000 112,100 52,900 Wadi Siham 200,000 - 66,975 133,025 Wadi Sordud 190,000 - 76,200 113,800 Wadi Rasyan 35,000 - 30,575 4,425

Sub-total 999,500 60,000 579,300 360,200

Projects for Eastern Wadis Wadi Al Kharid 110,000 - 31,650 78,350 Wadi Jawf 150,000 - 44,250 105,750 Wadi Abida Marib 50,000 - 3,450 46,550 Wadi Harib 30,000 - 450 29,550

Sub-total 340,000 - 79,b00 260,200

Projects for other Wadis Wadi Bana 100,000 - 17,550 82,450 Wadi La'a 30,650 10,000 20,650 -

Dams Small dams 15,000 - 5,000 10,000 Storage dams 125,000 105,000 20,000 Sewerage Irrigation for Sana'a 3,000 500 2,500 Maintenance Diversion Structures 16,000 - 8,000 8,000 Ground Water Investigations 60,000 5,000 24,900 30,100 Hydro-Meteorological Stations 1,500 50 1,000 450 Institutional Support 5,000 - 3,300 1,700

Total 1,695.650 75,050 845.000 775.600

Source: From Irrigation Departmtent, Ministry of Agriculture: Not Official - 110 -

Table 7.21: LONG-RANGE IRRIGATION TARGETS

Flood Perennial Well Plan Period Irrigation Irrigation Irrigation ------1,000 ha--- - -

Present irrigation 120 73 37

1st 5-Year (1976/81) 134 79 83

2nd 5-Year (1981/86) 148 89 144

3rd 5-Year (1986/91) 158 96 194

Source: Central Planning Organization - ill -

Table 7.22: TARGET FOR EXPANSION OF FLOOD IRRIGATION

Wadi Present 1976/77 1977/78 1978/79 1979/80 1980/81 ------1,000 ha … ------

Mawr 35 35.0 35.0 35.0 35.0 36.0 Sordud 15 15.0 15.0 15.0 15.0 16.0 Seyham 10 10.0 10.0 10.0 10.0 11.0 Rima 10 10.0 10.0 10.0 11.0 12.0 Zabid 11 11.0 11.5 13.0 14.0 15.0 Rasyan 2 Mawza .2 7.0 7.0 7.0 7.5 8.0 Mawiah 3 Bina'a 2 .2.0 :2.0 2.0 2.5 3.0 Marib 10 10.0 10.0 10.0 10.5 11.0 Gawf 10 10.0 10.0 10.0 10.0 11.0 Others 10 10.0 10.0 10.0 10.5 11.0

Total 120 120.0 120.5 122.0 126.0 134.0

Source: CPO, The First; Five-Year Plan for Agriculture (Draft). - 112 -

Table 7.23: TARGET FOR MXPANSION OF PERENNIAL IRRIGATION

Wadi Present 1976/77 1977/78 1978/79 1979/80 1980/81 ------1,000 haa---

Mawr 15 15.0 15.0 15.00 15.50 16.0 Sordud 10 10.0 10.0 10.25 10.50 11.0 Seyham 5 5.0 5.0 5.00 5.25 5.5 Rima 2 2.0 2.0 2.00 2.25 2.5 Zabid 2 2.0 2.0 2.00 2.25 2.5 Risyan Mawzea 3 3.0 3.0 3.00 3.00 3.0 Mawiah Bina'a 8 8.0 8.0 8.00 8.50 9.0 Marib 5 5.0 5.0 5.00 5.00 5.5 Gawf 15 15.0 15.0 15.00 15.25 15.5 Others 8 8.0 8.0 8.00 8.25 8.5

Total 73 73.0 73.0 73.25 75.75 79.0

Source: CPO, The First Five-Year Plan for Agriculture (Draft). - 113 -

Table 7.24: TARGET FOR EXPANSION OF WELL IRRIGATION

Governorate Present 1976/77 1977/78 1978/79 1979/80 1980/81

…------…

Sana'a 5.0 6.0 7.0 7.0 9.0 10.0 Mahweit - - - - - Hodeidah 25.0 30.0 35.0 40.0 45.0 50.0 Taiz 1.0 1.0 1.5 2.0 2.5 3.0 Ibb 1.0 1.0 1.0 1.0 1.0 1.5 Haija - 0.5 1.0 1.5 2.0 2.5 Sada'a - 0.5 2.0 3.0 4.0 5.0 Damar 3.0 3.0 3.5 4.0 4.5 5.0 Beida 1.5 1.5 2.0 2.25 2.5 3.0 Marib 0.5 1.0 1.5 2.0 2.5 3.0

Total 37.0 44.5 54.5 62.75 73.0 83.0

Source: CPO, The First Five-Year Plan for Agriculture (Draft). Page 1 of 2

Table 8.1: 1975 STRUCTURE OF MANUFACTURING INDUSTRY

Sector Countrywide industrial survey Significant operations estab. by end-1975a No. of establishments Labourforce Turnover No. of Labourforce Turnover Capital (YR million) Establisnments (YR million)lnvestment (YR million) Food processing flour milling 6 1 0b 8,255 10 2 0Obc _ _ _ _ bread ( 298 2,610 81.5 ( - - - - biscuits and confectionery ( ( 2 444 22.7 9.9 vegetable oils 403 528 7.9 - - - -

Total (incl. others) 6,808 11,440 192.7 4 461 23.7 11.9

Soft drinks 6 207 12.7 4 160 10.0 7.4 Tobacco and cigarettes 70 462 18.9 1 214 11.7 5.0 Building materials cement 1 329 22.6 1 308 21.7 51.0 bricks 32 123 3.0 - - - - tiles and marble 13 122 4.4 - - - - cement blocks 19 72 8.9 8 133 2.4 2.0 Total (incl.others) 1 0 7 d 7 4 8 d 4 1 0Od 9 441 24.1 53.0

Textiles & related industries cotton ginning 1 550 28.9 1 138 34.5 2.0 cotton textiles 55 1,895 25.2 2 1,890 16.9 28.0 clothing 2,543 3,606 ... 4 63 1.3 0.4 Total (incl. others) 2,601 6,070 6 5 .3 e 7 2,091 52.7 30.4 Metal products general workshops 782 1,948 ... - - - - aluminium products 1 ll7 3.4 1 119 2.0 2.0 jewellery 368 502 10.4 - - - -

Total (incl. others) 1,158 2,819 63.9 9 238 3.3 8.5

/contd.... Page 2 of 2

Table 8.1: 1975 STRUCTURE OF MANUFACTURING INDUSTRY

Countrywide industrial survey Significant operations estab. by end-1975a Sector No. of establishments Labourforce Turnover No. of Labourforce Turnover Capital (YR million) Establishments (YR mill-ion)lnvestment (YR million)

Other manufacturing wood products 101 451 29.4 5 74 1.7 1.6 printing/publishing 42 246 1.1 8 204 2.5 3.2 pottery i70 283 4.5 - - - plasticsf 4 228 14.7 4 201 7.0 6.5

Total (incl. others) 337 1,331 72.4 22 528 14.1 12.8

GRAND TOTAL 10j587 23,076 4 6 6 .9 e 56 4,135 139.5 129.0

a includes most firms with more than 10 workers, and some smaller ones b including coffee roasting c estimated d excluding the 780 employed in 250 small stone quarries (turnover 24.3 million YR) e including only some clothing f including artificial limbs

Source, The Countrywide Industrial Survey was carried out under Arab League auspices and is summarised in the 1976/77 Statistical Yearbook. Data on significant operations are from the Ministry of Economy. - 116 -

Table 8.2: MAJOR MANUFACTURING ENTERPRISES

Expansion Owner- Year Current Position Planned' Name/main products ship estab Location Invest- Turn- Labour Add. Add. ment over force Invest. labour (Mn YR) (Mn YR) (No.) ) (No.

Spinning & Weaving Corp Pub 1968 Sana'a 21.0 17 .0b 1,50 0 c 6 5d 1 ,0 00 d (cotton textiles) 1973 Bajil 8.0 1.4 135 _d - d Y. Co. for Ind. & Trade Ltd Pri 1971 Taiz - Biscuits and Sweets 80 .0c,e ... 1,000 4009 - Plastic prods. and foam 25 .0c,e 350 f - - Ghee substitute 60 .0c,e ... 180 f -

Cement Corp Pub 1973 Bajil 51.0 21.7 .308 120d 419d Tobacco Corp Pub 1971 Hodeida 5.0 11.7 214 3 (cigarettes) Cotton Corp Pub 1967 Hodeidah 2.0 34.,6 138 12d ... (ginning) Printing & Publishing Corpi Pub 1963 Sana'a 2.0 1.0 132 ( 14i 1963 Taiz 0.5 0.1 32 ( Aluminium metal products Pri 1971 Taiz 2.2 2.1 119 4 65

Pepsi Cola plant Pri 1970 Hodeida 2.9 3.2 100c j j Balquis sweets factory Pri 1972 Taiz 0.9 1.4 94 4 102 Canada Dry plant Pri 1970 Hodeida 1.0 1.6 94 16 108 Maeen plastic shoes plant Pri 1969 Sana'a 1.0 0.9 42 1 6 Salah. Eddin aluminium and plastics Pri ... Hodeida ... 30 8 62 Super and steam plant Pri 1968 Taiz 3.2 0.3 35 10 92 (soft drinks) Plastics products plant Pri 1974 Taiz 4.0 0.8 34 6 13 National paint factory Pri 1971 Taiz 7.Oc 25 f 36

Note: except where noted, data refer to end-1975 a In Five Year Plan unless stated f included in current position b 1976 g figure supplied by company c 1978 h being moved to Zabeed d Plan also includes new projects i new plant being built following fire e includes suppliers' credits for new expansion j new plant being built at Sana'a

Sources: For 1975 position, Ministry of Economy. Where more up to date data are given, these obtained from company concerned. - 117 -

Table 8 . L: PAVED AND GRAVEL ROADS, 1977

(KM)

Road Paved Gravel Total

1. Primary Roads

Sana'a - Taiz 256 256 Sana'a - Sa'ada 242 242 Sana'a - Hodeidah 226 226 Km.16 - Km.63 191 191 Km.63 - Taiz 63 63 Sana'a - Al Wadi 14 14 Sana'a - Haddah 8 8 Sana'a - Airport Road 10 10 Airport Road - Arhab 15 14 29 Al Maraba - Manakha 5 5 Hodeidah - Port 5 5 Hodeidah - Airport 4 4 Sana'a - Al Rawda 10 10

Sub-Total 1049 14 1063

2. Secondary and Feeder Roads

Shibam - Al Ahjar 12 12 Jct. Sana'a-Sa'ada-Al Wadi 4 4 Km.63 - Al Mokha 44 44 Al Hawban - Mawiah 39 39 Taiz - Muzeikhera 37 37 Hadhran - Al Rawnah 27 27 Taiz - Sabir 14 14 Al Rahida - Haifan 14 14 Al Turbah - Sharjab 10 10 Taiz - Al Turbah-7afrus 4 4 Taiz - Al Turbah-J ebal Habashi 8 8 Al Kadma - Maqbanah 6 6 Al Khushum - Hajjah 63 63 Junc. Hodeidah-Taiz-Lawia 9 9 Al Kubba - Al Ribat 8 8 Al Mansuriah - Sukhna 20 20 Haith - Al Khowkhah 29 29 Hodeidah-Taiz Junc.-Wadi.Zabid 14 14 Zabid-Al Sowaik 18 18 Al Kadan - Al Mighlaf 10 10 Yarim-Rihab-Al Dalil 62 62 Kitab - Al Naderah-Demt 68 68 Yarim-Al Radmah-Demt 50 50 Ibb - Al Udain 31 31 Ibb - As Saddah 23 23 Ibb - Ba'adan 21 21 Al Qaidah-Thee Sufal 10 10 Ibb - Jiblah -6 6

Sub-Total 661 661

GRAND TOTAL 1049 675 1724

Source: CPO, YAR Statistical Yearbook (1976/77) Table 8.4: PORTS TRAFFIC IN YAR: 1969-1976 (Traffic Tonnage in '000 Tong) Through liodeideb Port Throuth Hocha Port Total TAR Ports Through Salif Port Export ------Imports ------Ltqutd bulk Total No. of Shtpa Passenger Traffic Ceneral (Petroleum Total Total General Liquid (All General General Liquid (Hodeidah; (all at Rodeidah; In '000) Year Cargo Products) lmpbrts Traffic Cargo bulk Imports Cargo Cargo Bulk Total arrivals) Arrival Departure 1969 - 212 63 275 275 - - - 0 ------1970 - 232 64 296 296 - 0 - - - - 1971 2 372 90 462 464 - - 0 - - - 367 _ 1972 8 385 122 507 515 - - - 0 - - - 506 - _ 1973 19 436 93 531 550 54 40 94 0 511 133 644 520 50 1964 23 464 - 114 578 601 56 36 92 0 543 t50 693 453 55 16 1975 24 479 154 633 657 58 38 96 0 561 192 753 559 74 45 1976 26 634 250 884 910 50 - 50 75 785 250 1035 640 104 (partly estimated) 60

Notes: 1. "-" means insignificant or not applicable. 2. The table excludes the salt export traffic through Salif before 1974 (5,000 to 10,000 tons per annum). 3. Te figures for 1976 Include some traffic which Is meant for re-exports by road to Saudi Arabia - estimated at about 80,000 tons In 1976 4. At least 150,000 tons of the traffic waiting in ships at the end of 1976 would have been discharged in the YAR Ports during the year, If port facilities vere adequate; this notional additional traffic ts, however, not Included in the above figures. Sources: CPO, YAR statistical yearbook, 1976; Yemen Oil Corporation and PHAC. - 119 -

Table 8.5: SANA'A INTERNATIONAL AIRPORT TRAFFIC, 1974-1976

Planes Planes Passengers Year Arrivals Departures Prop. Jet Arrivals Departures

1974 2141 ;2244 2748 1637 71,541 75,893

1975 .2654 2;586 2564 2676 121,249 119,712

1976 :2275 ;2487 3989 773 102,241 132,584

Source: CPO, 1976/1977 Statistical Yearbook - 120 -

Table 8.6: PASSENGERS CAEWED BY YEW AIRWAYS

Routes Year (1975) Total

1971 37,646 1972 48,660 1973 43,288 1974 71,098 1975 79,467 Sana's-Hodeidah 21 Sana'a-Taiz 1132 Sana'a-Aden 1532 Sana'a-Abudhabi 4829 Sana'a-Asmara 119 Sana'a-Cairo 4885 Sana'a-Djibouti 337 Sana'a-Doha 690 Sana'a-Jeddah 30,908 Sana'a-Kuwait 802 Hodeidah-Sana'a 47 Hodeidah-Aden 2220 Taiz-Abudhabi 1863 Ta±z-Aden 2397 Taiz-Cairo 1522 Taiz-Djibouti 1558 Taiz-Doha 563 Taiz-Jeddah 23,459 Taiz-Kuwait 583 1976 138,760

Source: CPO, 1976 Statistical Yearbook Table 9.1: CONSUMER PRICE INDEX FOR SANA4A CITY

(1972 - 100)

Caiendar Years Fiscal Years Period averages Weights 1973 1974 1975 1976 1973/74 1974/75 1975/76 1976/77

General index 10,000 143 181 224 261 154 203 237 329

Foodstuffs 6,500 142 166 203 226 145 187 210 285 Cereals 1,735 147 176 172 160 156 185 169 159 Lry vegetabUes 130 126 175 245 325 142 209 280 331 Meat, fish and eggs 1,205 129 159 245 323 155 199 264 418 Vegetables 447 160 152 220 248 142 173 215 386 Dairy products 301 122 158 174 177 140 164 177 343 Oils and fats; edible 295 189 232 297 359 206 257 343 383 Fruits 513 175 123 205 237 123 169 221 247 Sugar and sweets 382 117 224 271 204 151 272 226 193 Soft drinks 148 123 175 185 228 140 179 202 383 Tobacco, etc. 967 133 137 148 176 134 141 158 297 Other 377 132 163 226 253 139 204 240 289

Clothes 581 126 210 249 280 155 229 263 435

Dwelling 1,946 155 227 299 391 186 259 337 500 Furniture 206 103 142 188 210 131 167 196 257 Durable goods 407 12i 174 209 232 143 186 219 260 Rent and water 609 128 185 256 319 138 203 286 429 Fuel and lighting 724 212 318 421 593 266 374 487 766

Miscellaneous 973 132 169 196 219 152 180 206 274 Transportation 326 125 172 223 260 147 193 238 339 Education 87 121 155 180 213 143 170 205 239 Medical costs 268 156 177 185 193 166 181 188 263 Household cleaning items 166 123 168 181 199 153 172 191 216 Personal cleaning items 126 130 156 173 196 139 160 187 231

Source: Central Planning Organization. Table 10.1: PRIMARY LEVEL EDUCATION

Population Academic Age Group Enrollments No. of No. of Students No. of Teachers Year 6-11 Total M F Schools Per Classroom Total M F

1962/63 .. 61,335 59,555 1,780 919 .. 1963/64 .. 57,894 55,030 2,864 895 23 1964/65 .. 62,836 59,714 3,118 934 24 -1965/66 .. 69,139 65,683 3,556 997 26 1966/67 .. 63,508 59,608 3,900 709 30 1967/68 .. 66,830 62,212 4,618 749 48 1968/69 .. 66,468 61,592 4,876 744 74 1969/70 .. 72,107 66,104 6,003 700 41 1970/71 .. 88,217 79,954 8,263 821 49 1971/72 .. 118,868 106,629 12,239 1,155 39 1972/73 .. 153,807 136,177 17,630 1,442 49 1973/74 .. 179,079 158,242 20,837 1,570 35 1974/75 871,875 232,784 209,996 22,788 1,952 34 5A825 5,415 410 1975/76 .. 252,726 224,948 27,778 2,137 34 6,701 6,045 656

O,overnorate (1975/76)

Sana'a 142,976 75,419 68,599 6,820 687 37 Taiz 180,641 68,960 56,939 12,021 277 42 Hodeidah 130,148 24,041 20,218 3,823 159 34 Ibb 156,774 21,115 19,118 1,997 167 37 Damar 85,855 20,110. 19,326 784 238 25 Hajja 75,755 17,184 16,340 844 304 22 Beida 31,893 8,640 7,771 869 67 34 Saada 24,065 6,615 6,488 127 100 23 Mahweet 35,260 5,506 5,202 304 72 25 Marib 8,508 5,136 4,947 189 65 29

Source: Ministry of Education - 123 -

Table 10.2: PRIMARY SCHOOL TEACHERS BY SEX, STATUS AND EDUCATIONAL ATTAINMENT (1975/76)

Permianent Temporary Appointment Appointment TOTAL M F M F

Primary Diploma or it:s Equivalent 905 21 1,926 103 2,955

Preparatory Diploma or its Equivalent 350 6 798 79 1,233

Secondary Diploma or its Equivalent 550 6 911 45 1,512

College Diploma or.its Equivalent 82 - - - 82

Teacher -Training Lower Level 82 134 - 72 288 Higher Level 82 43 - 19 144 89 Training Sesgions 89 - - -

TOTAL .2,140 210 3,635 318 6,303 398 Expatriates - - 270 128

GRAND TOTAL 2,140 210 3,905 446 6,701

Source: Ministry of Education Table 10.3: GENERAL PREPARATORY LEVEL EDUCATION

Academic Population No. of No. of Students No. of Teachers Year Age Group Enrollments Schools Per Classroom Total M F 12-14 Total M F

1962/63 .. 730 730 - 5 43 1963/64 .. 1,032 1,032 - 5 33 1964/65 1,462 1,459 3 5 34 1965/66 .. 1,426 1,426 - 7 34 1966/67 1,672 1,672 - 7 45 1967/68 2,007 1,985 22 10 41 1968/69 .. 2,077 2,073 4 13 36 1969/70 3,118 3,028 90 20 37 1970/71 .. 3,931 3,806 125 22 35

1971/72 .. 5,768 5,732 36 47 35 1972/73 .. 7,306 7,212 94 59 33 1973/74 .. 9,362 9,229 133 81 33 1974/75 295,766 12,163 11,236 927 98 33 599 583 16 1975/76 .. 15,619 13,927 1,692 134 31 711 694 17

Governorates (1975/76)

Sana'a 49,696 4,124 3,760 364 18 39 213 203 10 Taiz 63,474 7,334 6,364 970 58 33 215 210 5 Hodeldah 44,204 2,087 1,833 254 17 32 114 112 2 Ibb 54,024 1,162 1,092 70 12 27 82 82 - Damtar 28,952 378 363 15 12 15 24 24 - Hajja 23,034 209 195 14 5 15 24 24 - Beida 10,392 199 196 3 5 17 20 20 - Saada 8,838 43 43 - 2 11 7 7 - Mahweet 10,772 36 34 2 3 9 4 4 Mareb 2,380 47 47 - 2 16 8 8 -

Source: Ministry of Education, except for age-group column which is a mission estiTate from 1975 census results. Table 10.4: GENEEAJ SECONDARY LEVEL EDUCATION

Population Academic Age Group Enrollments No. of No. of Students No. of Teachers Year 15-17 Total M F Schools Per Classroom Total M F

1963/64 .. 84 84 - i 28 .. 1964/65 .. 226 226 - 3 45 1965/66 433 433 - 3 27 1966/67 .. 656 656 - 3 36 .. 1967/68 .. 711 711 - 3 44 1968/69 I 803 8Q3 - 4 62 1969/70 .. 939 939 - 4 41 1970/71 .. 1,189 1,164 25 6 35 1971/72 .. 1,496 1,488 3 6 35 1972/73 .. 2,267 2,248 19 6 41 1973/74 .. 3,098 3,094 4 13 36 1974/75 222,816 4i350 4,153 197 25 38 233 230 3 327 5 1975176 .. 6,050 5,581 469 27 39 332 U' Governorates (1975/76) Sana'a 35,123 1,896 1,771 125 4 53 88 84 4 Taiz 47,870 2,917 2,689 228 9 43 137 137 - Hodeidah 34,471 751 662 89 5 30 55 54 1 Ibb 38,410 301 278 23 5 17 27 27 - Damar 24,358 82 80 2 1 16 13 13 - Hajja 17,430 66 65 1 2 13 5 5 - Beida 7,490 37 36 1 1 12 7 7 - Saada 7,659 - - - - Mahweet 8,124 - - - - Mareb 1,880 - - - -

Source: Ministry of Education, except for age-group column which is a mission estimate for 1975 census results. - 126 -

Table 10.5: NRDLLMNTS IN TEACHERS INSTITUTES

Prep. Teacher Training Secondary Teacher Training Enrollments Enrollments No. of Schools Males Females No. of Schools Males Females

1963/64 1 55 - 1964/65 1 24 - 1965/66 3 90 - - - 1966/67 5 163 27 - - 1967/68 6 185 30 - - - 1968/69 6 402 84 2 37 51 1969/70 6 266 64 3 91 11 1970/71 4 161 124 2 111 16 1971/72 4 - 342 5 192 84 1972/73 4 - 590 6 185 148 1973/74 5 32 847 7 192 278 1974/75 7 307 336 7 107 180 1975/76 8 508 453 7 155 190 of which Sana'a 2 156 182 2 41 54 Taiz 2 235 142 2 89 92 Eodeidah 2 19 97 1 - 37 Ibb 2 98 32 2 25 13

Source: Ministry of Education - 127 -

Table 10.6: SUBJECTS STtDETE AT THE THREE LEVELS OF EDUCATION (hours taught per week; 1975/76)

Secondary Grades Preparatory Litera- Primary Grades Grades ture Science 1st 2nd 3rd 4th 5th 6th 1st 2nd 3rd 1st 2nd 3rd 2nd 3rd

Religion 8 8 8 8 8 8 6 6 6 6 6 6 6 6

Arabic 9 9 9 9 8 8 6 6 6 6 8 8 5 5 Social Studies - - 2 2 4 4 4 4 4 1 3 1 1 1

Sciences 3 3 3 3 3 3 4 4 4 6 - 4 9 9

Mathematics 4 4 4 4 5 5 5 5 5 4 - - 7 8

Arts 2 2 2 .2 2 2 1 1 1 1 1 1 1 - Vocational Training - - - - 2 2 2 2 2 2 2 2 2 2 Physical Education 2 2 2 .2 2 2 2 2 2 2 2 2 2 2

English - - - - - 5 5 5 6 7 7 5 5

Music - - - - - 1 1 1 - - - - -

History ------2 3 3

Geography - - - - 2 4 4

Economics ------2 -

Psychology ------3 -

TOTAL .28 28 30 30 34 34 36 36 36 36 36 36 36 36

Source: Ministry of Education (1974/75) - 128 -

Table 10.7: ENROLLMENTS IN TECHNICAL AND COMMRCIAL SCHOOLS

Academic Year Technical Commercial

1970/71 92 43 1971/72 180 60 1972/73 250 124 1973/74 292 174 1974/75 337 215 1975/76 348 218 of which Sana'a 348 64 Taiz - 36 Hodeidah 118

Source: Ministry of Education Table 10:8: DISTRIBUTION OF YEHENI STUDENTS ABROAD BY COUNTRY AND SPECIALTY, 1976/77

Economics Tetal Medicine E,,ine..i,. A4.,,entcre ,,,4,..a r."neerce Pol. scisecep Arts Taw &Shsrin Education Others

Arab Countries, of which 1,521 202 248 193 68 221 119 87 i39 64 180 Egypt (657) (128) (123) (109) (9) (127) (22) (34) (42) (11) (52) Saudi Arabia (282) (-) (46) (11) (12) (26) (18) (22) (68) (8) (71) Iraq (173) (39) (29) (21) (13) (-) (52) (5) - (8) (6) Syria (109) (15) (24) (25) (1) (16) (1) (9) (7) - (11)

Communist Countries, of which 707 204 264 89 51 - 15 7 6 4 67 USSR (476) (124) (158) (70) (44) - (11) (4) (1) (4) (60) China (77) (7) (70) ------Czechoslovakia (46) (20) (12) (5) (2) - (1) (5) - (1) Germany, D.R. (21) (14) (3) (2) ------(2)

Vestern Countries, of which 44 14 10 4 - 1 3 2 1 - 9 Germany, F.R. (21) (3) (5) (1) - (1) - (2) (1) - (8)

Others, of which 42 24 9 - - 1 - 3 3 - 2 Iran (32) (17) (7) - - (1) - (2) (3) - (2)

TOTAL 2,314 444 531 286 119 223 137 99 149 68 258

Source: Central Planning Organization. Table 10.9: PROJECTED STUDENT ENROLLMENTS DURING FIVE-YEAR PLAN,'1976/77-1980/81

Annual Percentage Actual Plidi Targets Increase ITT777I 1976/77 1977/78 1978/79 1979/80 1980/81 (1976/77-1980/81)

Primary Education 252,726 286,940 315,690 339,590 285,250 426,860 11.0 Adult Literary Programs 5,731 n.a. n.a. n.a. n.a. 28,860 38.5

Preparatory 16,589 20,290 24,490 29,995 36,770 44,520 21.8 General (15,619) (19,400) (22,870) (27,670) (33,480) (40,300) 20.9 Teacher Training (970) (1,290) (1,620) (2,125) (2,710) (3,290) 27.5 Vocational - - - (200) (580) (930)

Secondary Education 7,016 7,854 10,578 12,955 15,809 18,980 29.5 General (6,050) (6,820) (9,350) (11,070) (13,110) (15,510) 29.0 Teacher Training (408) (550) (655) (845) (1,087) (1,364) 27.5 Vocational & Technical (348) (279) (293) (550) (811) (1,095) 25.5 Commercial (210) (205) (280) (400) (510) (535) 20.5 Agriculture - - - (90) (291) (476) ..

Higher Education 2,304 3,014 4,520 5,9io 7,085 8,040 28.5 School of Education (664) (964) (840) (1,090) (1,420) (1,740) 21.3

TOTAL (excl. adult literacy programs) 278,635 317,508 254,298 286,540 439,594 491,550 12.0

Source: Ministry of Education, The First Five-Year Plan for Education 1976/77 - 1980/81 (draft) and CPO, The First Five-Year Plan, i976/77 - 1980/81 - 131 -

Table 10.10: CAPITAL EXPENDITURES ON EDUCATION DURING THE PLAN PERIOD 1976/77-1980/81 (YR willion)

Financed by 1976/77 1977/78 1978/79 1979/80 1980/81 Gov't Foreign Private Total

Ministry of Education 38.3 65.8 89.8 122.7 167.9 231.4 253.1 - 484.5

Sana'a University 8.5 14.6 20.0 27.3 37.4 8.0 99.9 - 107.9

NIPA 0.9 1.6 2.2 2.9 4.0 7.3 4.4 - 11.7

Scientific Educational Comission 2.3 4.0 5.4 7.4 10.1 29.2 - - 29.2

Private Sector 0.4 0.7 0.9 1.3 1.7 - - 5.0 5.0

TOTAL 50.4 86.7 118.3 161.7 221.2 275.9 357.4 5.0 638.3

Source: CPO, The-First Five-Year Plan. 1976/77-1980/81 - 132 -

Table 10.11: DISTRIBUTION OF THE MINISTRY OF EDUCATION CAPITAL EXPENDITURES BY LEVEL AND TYPE OF EDUCATION, DURING THE PLAN PERIOD, 1976/77-1980/81

Total Expenditures Percent of (YR million) Total

Primary Education 149.1 30.8 Preparatory (General & Teacher Training) 50.5 10.4 Secondary (General & Commercial) 60.6 12.5 Industrial and Vocational 91.6 18.9 Agriculture 18.7 3.9 Teacher Training (Secondary) 86.2 17.8 School Furniture and Equipment Production 3.6 0.7 National Educational Center 0.9 0.2 Informal Education and Literacy Programs 23.3 4.8

TOTAL 484.5 100.0

Source: CPO, The First Five-Year Plan, 1976/77-1980/81 Table 10-12- CAPITAL EXPENDITURES BY THE MINISTRY OF EDUCATION AND SANA'A UNIVERSITY BY SOURCE OF FINANCE, DURING THE FIVE-YEAR PLAN, 1976/77-1980/81 (000 YP)

School Prep. Education Secondary Industrial Secondary Furniture National Primary Informal (General and and and Agricultural Teacher Production Education Total MOE Sana'a University Total Education Education Teacher Training) Commercial Vocational Education TraininR Center Center Expenditures 8,,on 2'9,422 Yemen Arab Renublic Gov't. 111,591 17.000 1930195 6 21,570 127?2 i I !? 9! 3',422 18,000 6,000 - 6,000 6,000 - - - - - 18,000 - Iraq 80,000 95.000 4,500 - 7,500 3,000 - - - - - 15,000 Kuwait 15,000 - 15,000 Libya 17,500 - 4,500 3,000 - - - - - 6,000 - 6,000 Qatar 1,500 - 3,000 1,500 - - - - - 15,000 - 15,000 Saudi Arabia 7,500 - 3,000 4,500 - - - - - 22,500 - 22,500 UAE 7,500 - 7,500 7,500 - - - - - 40,200 - - 64,624 5,000 69,624 Un-identified 3,000 V/ - - - 21,624 - 156,124 85,000 241,124 Total Bilateral 37,500 - 31,500 25,500 21,624 - 40,000 - - 96.945 14.263 111,808 IDA _ 6,337 - - 48,402 2/ 4.880 35.391 3/ 1.935 - 3.664 864 484.491 592354 TOTAL 149,091 23.337 50.519 60,576 91.596 18.672 86.172

1/ Possibly from Iran 2/ YR 18,002 mln are not yet certain 3/ YR 12,406 mln are not yet certain

Source: CPO, The Five-Year Plan, 1976/77-1980/81 - 134 -

Table 10.13: TRAINING OF YEKENIS ABROAD DURING THE FIVE-YEAR PLAN, 1976/77-1980/81 (Number of Trainees)

1977/78 1978/79 1979/80 1980/81 Total

Agriculture 77 91 98 83 349

Mining & Mineral Resources 8 3 2 - 13

Manufacturing 68 88 134 155 445

Electricity & water 22 22 18 18 80

Building & Construction 42 30 23 28 123

Trade 34 25 27 17 103

Transport & Comm. 136 175 200 148 659

Finance 23 21 18 14 76

Education 43 82 55 30 210

Health 28 49 31 47 155

Social Affairs 19 9 15 13 56

Information & Culture 54 52 44 45 195

Public Administration 86 79 64 59 288 TOTAL 640 726 729 657 2 752

Source: CPO, First Five-Year Plan. 1976/77-1980/81 - 135 -

Table 10.14: FOREIGN GRANTS ON MANPOWER DEVELOPMENT ORIENTED CURRENT EXPENDITURES, BY SOURCE OF SUPPLY, DURING THE FIVE-YEAR PLAN, 1976/77-1980/81 (000 YDR) Grants for 1/ Country/Organization Teachers Scholarships Others Total

1. Multilateral UNDP - - 13,223 13,223 UNFPA - - 1,500 1,500 WFP - - 10,800 10,800 Central Protestant Agency _ 665 - 665

TOTAL TOTAL - 665 15,523 26,188

2. Arab Couintries Egypt 952 890 - 1,842 Iraq - 5,500 - 5,500 Kuwait 6,027 1,450 - 7,477 Jordan - 600 - 600 Libya 19,285 3,800 - 23,085 Qatar 4,821 1.950 - 6,771 Saudi Arabia 17,890 23,390 - 41,280 Sudan - 160 500 660 Syria 5,000 1,870 - 6,870

TOTAL TOTAL 53,975 39,610 500 94,085

3. Communist Countries Bulgaria - 200 - 200 China, P.R. - 1,500 4,000 5,500 Czechoslovakia - 1,150 - 1,150 Germany, D.R. - 910 - 910 Hungary - 700 - 700 Korea, North - 540 - 540 Poland - 480 - 480 Romania - 810 - 810 U.S.S.R. - 5,500 - 5,500 Yugoslavia ,- - 550

TOTAL - 12,340 4,000 16,340

4. Western Countries France - 4,200 1,000 5,200 Germany, F.R. - 1,300 - 1,300 Greece - 450 - 450 Iran - 850 - 850 Italy - 250 - 250 Netherlands - 3,500 - 3,500 Turkey - 450 - 450 U.S.A. - 2,150 - 2,150 U.S.A.I.D. -_ 3,200 480 3,680

TOTAL - 16,350 1,480 17,830

GRAND TOTAL 53975 6896 2150 154443

1/ The funds under 'O-hers' are expected to be spent on educational development (UNDP), population census (UNFPA), food for school children (W4FP), school equipment (Sudan), vocational education (China, P.R.), local electric training (France) and population recording (U.S.A.I.D.).

Source: CPP. Firist Five-Year Plan, 1976/77 - 1980/81 - 136 -

Table 10.15: PUBLIC EXPENDITURES ON EDUCATION (YR million)

Actuals Estimates

1973/74 1974/75 1975/76 1976/77 1980T81

Public Expenditures on Education 19 34 56 101 188 1 Current 18 28 47 75 n 0/

Capital 1 6 9 261/ 7811/

Total Public Expendi- tures 335 441 748 928 1,742

Current 322 472 617 678 993

Capital 13 69 131 250 749

Gross National Product (GNP) 3,764 5,333 7,238 7,677 10,317

Public Expenditures on Education as Percent of Total Public Expen- ditures 5.7 7.7 7.5 10.9 10.8

Public Current Expen- ditures on Education as Percent of Public Current Expenditures 5.6 5.9 7.6 11.1 11.1

Public Expenditures on Education as Percent of GNP 0.5 0.6 0.8 1.3 1.8

./Bank Estimates

Source: CPO, The Five-Year Plan, 1976/77-1980/81 - 137 -

Table 10.16: MEDICAL PERSONNEL, 1976

Medical Qualified Physicians Dentists Pharmacists Assistants Nurses Midwives

A B A B A B A B A B A B

Sana'a 54 58 1 5 6 5 114 11 113. 63 5 5

Hodeidah 17 17 - 1 1 1 67 2 15 14 3 3

Taiz 36 22- 2 1 3 1 155 4 47 12 6 4

Al Beidha 6 1 - - 1 - 12 - - 4 -- 1

Sa'ada 1 2 -- - 1 11 -- 33

Ibb 5 6 - - -- 1 44 3 11 6 - 3

Dhamar 3 4 -- 6 -- -- 1

Hajjah 2 ------24 - - 1 -

Total 124 110 3 7 11 10 433 20 186 104 14 19

A - Yemeni

B - Expatriates

-Source: CPO, 1976/77 Statistical Yearbook - 138 -

Table 10.17: HALTH ESTABLISEENTS BY GOVERNORATES, 1976

Health Rural Hospitals Disgensaries Health Sub- Health Drug Phar- No. Beds No. Beds Centers Centers Units Stores macies

Sana'a 5 900 1 20 .6 - 11 44 7

Rodeidah 3 340 4 160 2 8 16 31 4

Taiz 7 970 3 60 3 3 16 62 5

Tbb 4 232 1 30 1 - 6 13 -

Dhamar 1 55 - - - - 6 6

Hajjah 1 68 3 60 2 - 6 1

Sa'ada 1 14 - - - - 3 3

Al Beidha 2 58 -- - - - 3 6

Al Mahweet - - 1 25 1 - 4 -

Mareb - - - - 1 - 4 - -

Total 24 2,637 13 355 16 11 75 166 16

Source: CP0, 1976/77 Statistical Yearbook - 139 -

SELECTED BIBLIOGRAPHY

Ahdul-Rahman, A. M. and E. Thompson. Report on the Tax System of the Yemen Arab Republic. Washington: International Monetary Fund, July 1974.

Bartelink, A. Yemen Agricultural Handbook. Eschborn, 1974.

Berger and Kampsax. Urban Planning Study of Sana'a, Al-Hludaydah,, Taiz, Ibb, Dhamar. Status Report I, Sana'a, 1977 (mimeographed).

Bishara, Mary. Yemeni Farmworkers in California. MERIP Reports, 34:22-26 (1975)

Bornstein, A. Food and Society in the Yemen Arab Republic. FAO, Rome, March 1974.

Central Bank of Yemen. A_nual Reports: 1971/72 - 1976/78. Sana'a.

Central Bank of Yemen. Financial Statistical Bulletin (published quarterly). Sana'a.

Central Planning Organization. Economic and Social Development in the Yemen Arab Republic (Arabic). Sana'a, 1976.

Central Planning Organization. Economic, Planning and Social Studies, 1972 - 1975 (Arabic). Sana'a, August 1975.

Central Planning Organization. Follow-up Report for the First Year (1973/74) of Three-Year Development Program (Arabic). Sana'a, March 1975.

Central Planning Organization. Follow-up Report for the Second Year (1974/75) of Three-Year Development Program (Arabic). Sana'a, March 1976.

Central Planning Organization. Laws and Regulations of the Central Planning Organization. Sana'a, August 1975.

Central Planning Organization. 1975 Manpower Survey. Sana'a, 1976.

Central Planning Organization. Population Status in the Yemen Arab Republic (Arabic). Sana'a, December 1976.

Central Planning Organization. Report on the First Round of the Family Budget Survey in Sana'a. Sana'.a, January 1973.

Central Planning Organization. Results of the Industrial Study for 1972 (Arabic). Sana'a, February 1973.

Central Planning Organization. Socio-Economic Report, 1970 - 1974. Sana'a, August 1975. -

Central Planning Organization. Statistical Yearbooks: 1970/71 - 1976/77. Sana'a. - 140 -

Central Planning Organization. Summary of the First Five-Year Plan of the YAR (Original in Arabic). Beirut, Lebanon: Economic Commission for Western Asia, November 1977.

Central Planning Organization. The First Five-Year Plan: 1976/77 - 1980/81 Seven volumes: Evaluation of the Period of the Three-Year Development Program; Analysis of the Present Situation; Targets & General Strategies; Material Objectives; Description of Projects; Plan of Finance & Expenditures; and the Manpower Plan). Sana'a June 1977.

Central Planning Organization. The Housing and Population Census, February 1975: Preliminary Results. Sana'a, December 1975.

Central Planning Organization. The Three-Year Development Program: 1973/74 - 1975/76 (Arabic). Sana'a, August 1973.

Central Planning Organization & Economic Commission for Western Asia. The National Accounts of Yemen Arab Republic, 1969 - 1973. Central Planning Organization & Economic Commission for Western Asia. The National Accounts of Yemen Arab Republic, 1969/70 - 1975/76. Sana'a, 1978.

Central Planning Organization & Economic Commission for Western Asia. The Socio- Demographic Survey of Sana'a City in 1972. Sana'a 1974.

Clarke, J. Middle East Labor Migration. A Scope Paper. Washington, D.C.: January 1977 (mimeographed).

Confederation of Yemeni Development Association. The Book on Cooperatives (Arabic). Sana'a.

Dubach, W. A Study of Traditional Forms of Habitation Types and of Types of Settlements in the Yemen Arab Republic. Zurich, 1977.

Economic Commission for Western Asia. Report of the Yemen International Development Conference, 28 November-1 December 1977. Sana'a, 1977 (Mimeographed)

Economic Commission for Western Asia. Situation and Needs of Youth in Yemen and Democratic Yemen. Beirut, Lebanon, February 1977 (mimeographed).

Economic Commission for Western Asia. The Present Position and Potential of Rural Development in the LDCs of the ECWA Region. Beirut, Lebanon, March 1978 (mimeographed).

Gerholm, Tomas. Market, Mosque, and Mafraj: Social Inequality in a Yemeni Town. Stockholm Studies in Social Anthropology No. 6 Stockholm: Stockholm University, 1977.

Green, J. W. Local Initiatives in Yemen: Exploratory Studies of Four Local Development Associations. Washington, 1975 (mimeographed).

International Labor Office. Manpower and Employment in the Arab Countries. Geneva, Switzerland: International Labor Office, 1976. - 141 -

International Monetary Fund. Recent Economic Developments, 1970-1977 Reports. Washington.

Ministry of Education. Educational Statistics, 1971-1976. Reports. Sana'a.

Ministry of Health and World Health Organization. National Health Programme 1976/77 - 1981/82. Sana'a, August 1976.

O'Ballance, E. The War in the Yemen. London, 1971.

Ross, L. A. Yemen Migration!. Blessing and Dilemma. Prepared for the AID Seminar on Near East Labor Flows. Washington, 1977 (mimeographed).

Sinclair, C. A. and Socknat, J. An Estimate of Yemen's Total Population and Workers Abroad in 1975. Sana'a, November 1975 (mimeographed).

Sinclair, C. A. and Socknat, J. Assessment of Manpower Development and Policy and Programme Suggestions for YAR, 1976. Draft report to ILO/UNDP and Government of the YAR, January 1976.

Stanford Research Institute. Area Handbook for the Peripheral States of the Arabian Peninsula. Washington, D. C.: American University, 1971.

Swanson, J. Some Conseguefices of Emigration for Rural Economic Development in Yemen. Wayne State University, Michigan, 1978 (unpublished, Ph. D. Dissertation)

Swiss Technical Co-operative Service. Final Report on the Airphoto Interpretation Project. Zurich, Switzerland, 1978.

The World Bank. YAR: Appraisal of a Port Development Project. Washington, May 5, 1977, Report. No. 12346-YAR.

The World Bank. YAR: Appraisal of a Second Education Project in the Yemen Arab Republic. Washington, December 31, 1975; Report No. 970-YAR.

The World Bank. YAR: Appraisal of an Education Project in the Yemen Arab Republic. Washington, May 30, 1973; Report No. 149a-YAR.

The World Bank. Yemen Arab Republic: Memorandum on Power and Energy Sector. Washington, April 22, 1977; Report No. 12346-YAR.

The World Bank. YAR: Staff Appraisal Report, Third Highway Project. Washington, April 3, 1978; Report No. 1854a-YAR.

United Nations Development Programme. Information-Paper No. 9. Compiled Report on the UNDP and FAO activities in the YAR, 1971. - 142 -

United Nations Economic & Social Office of Beirut, "Tax Structure, Government Savings and Tax Problems: A Case Study of Yemen". in Studies in Development Problems in Selected Countries of the Middle East, 1973. Beirut, Lebanon: UNESOB, 1973.

UNIDO. YAR: Establishment of Small-Scale Industrial Estates (1973).

Wambeke van A. and Rardy, E. A Soil and Land Resource Inventory for Yemen. Project proposals prepared for AID Yemen, 1977 (Mimeographed).