World Bank2013-08-202013-08-2020020-8213-5210-50253-2132https://hdl.handle.net/10986/15222High and sustained rate of economic growth in Yemen is a necesary, though not sufficient, condition for reduction of the high incidence of poverty and for raising the living standards of Yemeni citizens. Evidence in this report suggests that the main obstacle to rapid and sustained economic growth is the weak governance that characterizes Yemen in addition to the weaknesses in domestic security, property rights, and rule of law systems. Weak governance in Yemen is characterized/manifested by widespread corruption, lack of transparency and accountability, inefficiency in the interaction of public officials and private business, ineffective or absent market promoting institutions such as those enforcing contracts (courts, tribunals, etc.), poor performance of the public sector in terms of delivering essential goods and implementing programs, associated lack of incentives and skills in the civil service, and weak enforceability of contracts and rulings. Along with ordering the governance situation, there are areas that should receive government priority in the short and medium term, including: 1) enhancing domestic security to boost economic activity in all economic sectors; 2) removing excessive and arbitrary regulations to strengthen basic infrastructure and other services and to attract private investment into these sectors; 3) legal and judicial reform; and 4) sustained implementation of civil service reforms.en-USCC BY 3.0 IGOADMINISTRATIVE REGULATIONSAGGREGATE GOVERNANCE INDICATORSAGRICULTURAL OUTPUTAGRICULTURAL SECTORAGRICULTUREAIRANNUAL GROWTHANNUAL GROWTH RATEAVERAGE GROWTHAVERAGE GROWTH RATEBUSINESS ENVIRONMENTCENTRAL BANKCIVIL WARCOMPARATIVE ADVANTAGECOMPETITIVE EXCHANGECOMPETITIVE EXCHANGE RATECOMPETITIVENESSCONSUMER PRICE INDEXCORRUPTIONCPICRIMEDEREGULATIONDIRECT INVESTMENTDISCOVERIESDIVERSIFICATIONDOMESTIC MARKETSDUMPINGECONOMIC ACTIVITIESECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICYECONOMIC REFORMSECONOMIC SECTORSEMPLOYMENTENVIRONMENTAL PROTECTIONEXCHANGE RATEEXCHANGE RATE POLICYEXCHANGE RATE REGIMEEXPENDITURESEXPORT GROWTHEXPORTSEXTERNAL SHOCKSEXTERNAL TRADEFINANCIAL RESOURCESFISHFISHERIESFISHINGFOREIGN EXCHANGEFORESTRYFREE TRADEGDPGDP PER CAPITAGOVERNANCE ENVIRONMENTGROSS DOMESTIC PRODUCTGROWTH PERFORMANCEGROWTH PROSPECTSGROWTH RATEGROWTH RATESHIGH GROWTHHIGH TAXESIMPORTSIMPROVING GOVERNANCEINCOMEINDUSTRIAL SECTORINEFFICIENCYINFRASTRUCTURE INVESTMENTINSTITUTIONAL ENVIRONMENTINTEREST RATESINVESTMENT CLIMATELIVING STANDARDSLONG-TERM GROWTHMACROECONOMIC MANAGEMENTMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMARKET ECONOMYMONOPOLIESNATIONAL ACCOUNTSOILOIL PRICESOIL RESERVESOIL SECTORPARTNERSHIPPOLICY REFORMSPOPULATION GROWTHPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRODUCT MARKETSPRODUCTION COSTSPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPUBLIC INVESTMENTPUBLIC SECTORPUBLIC UTILITIESREAL GDPSECTORAL COMPOSITIONSIGNIFICANT IMPACTSOCIAL DEVELOPMENTSTRUCTURAL CHARACTERISTICSTELECOMMUNICATIONSTELEPHONESTOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTRADE LIBERALIZATIONTRADE POLICIESTRANSACTIONS COSTSVALUE ADDEDWORLD TRADE ORGANIZATIONWTO GOVERNANCEPROPERTY RIGHTSRULE OF LAWJUDICIAL SYSTEMSLEGAL REFORMCIVIL SERVICE REFORMSCONTRACT ENFORCEMENTJUDGMENTSCORRUPTION IN POLITICSECONOMIC GROWTHTOURISM DEVELOPMENTMINING INDUSTRYCONFLICT RESOLUTION SKILLSDISPUTE RESOLUTIONSERVICE DELIVERYOIL SECTORMANUFACTURING PRODUCTIONFISHERIES SECTOREMPLOYMENT GENERATIONLAND TITLESBUSINESS ENVIRONMENTWorld Bank10.1596/0-8213-5210-5