Towards a national health insurance system in ... - Detlef Schwefel

Towards a national health insurance system in Yemen – Part 1: Background and assessments 27
population growth rate and internal political dissension complicate the government's task. Plans
include a diversification of the eco nomy, encouragement of tourism, and more efficient use of scarce
water resources.” (CIA 2005)
Table 12
Macroeconomic indicators for Yemen
GDP purchasing power parity per capita 800 US$ per head (2003 est.)
Household income by percentage share lowest 10%: 3%
highest 10%: 25.9% (2003)
GDP real growth rate
2.8% (2003 est.)
GDP structure in % Agriculture 15 %
Industry 45 %
Services 40 %
Agricultural products
grain, fruits, vegetables, pulses, qat (mildly narcotic
shrub) , coffee, cotton; dairy products, livestock (sheep,
goats, cattle, camels), poultry; fish
Industries
crude oil production and petroleum refining; small-scale
production of cotton textiles and leather goods; food
processing; handicrafts; small aluminium products factory;
cement
Industrial production growth rate 3% (2003 est.)
Exports
crude oil, coffee, dried and salted fish
Export partners
China 31.7%, Thailand 20.3%, India 15.6%, South Korea
4.9%, Malaysia 4.3% (2003)
Imports
food and live animals, machinery and equipment,
chemicals
Import partners UAE 12.9%, Saudi Arabia 10.2%, China 8.9%, US 4.9%,
Kuwait 4.4%, France 4.1% (2003)
Budget
revenues: $3.729 billion
expenditures: $4.107 billion, including capital
expenditures of NA (2003 est.)
Military expenditures - percent of GDP 7.9% (2003)
Public debt 39.5% of GDP (2003)
Debt external $6.044 billion (2003)
Inflation rate (consumer prices) 10.8% (2003 est.)
Exchange rates Yemeni rials per US dollar - NA (2003), 175.625 (2002),
168.672 (2001), 161.718 (2000), 155.718 (1999)
Economic aid – recipient
$2.3 billion (2003-07 disbursements)
Source: CIA 2005
The dominant sector of Yemeni economy is the oil sector. It contributes to about one third of GDP but
employs less than 1% of the work force. Oil exports comprise close to 90% of the exports and oil
revenues finance about three quarters of government expenditures. Fluctuations in the oil prices affect
Yemen considerably . Export diversification is lowest in MENA.
In 1995 a stabilisation and structural adjustment programme was initiated in cooperation with the IMF
and the World Bank (WB). Its basic intention was to restructure and to transform a planned and state
controlled economy into a free market economy. Reforms were initiated towards deregulating and
liberalizing foreign trade, modernizing the banking system, privatising state owned companies, etc. A
noticeable macroeconomic stabilization, a freely convertible currency exchange and a reduction of the
inflation rate were achieved. Fiscal reforms aimed at reducing high government subsidies. Reducing
the huge wage bill in the civil services was another aim that did not materialise, yet. The shifting from
a deficit budget to a surplus budget affected sector budgets, e.g. the health and education budgets. A
tight control over spending is still being done. It obliges all sectors to fight for bringing effectively into