The Poverty Evaluation Report 2007 was launched recently by the Yemeni government in collaboration with Sana'a-based World Bank and United Nations Development Program (UNDP) and showed a decrease in poverty and poor people's numbers despite the adaptation of Millennium Development Goals strategy by the government that seeks to decrease the number of poor people by half.   

The report indicates the number of the poor remained 7 million and a slight fall was recorded and prompted by the rise of oil prices, hinting that any economic growth built on oil is not of benefit to the poor especially in the rural areas.

During the launch ceremony, World Bank experts assured that some rural areas, especially in Ibb, Al-Hodeidah, Al-Mahweet and Taiz, have witnessed a relative decrease in poverty levels while there have been an increase of poverty in eastern and middle areas.

He also stressed the figures shown by the poverty and family budget report will help the state make plans and reinforce the efforts aiming to alleviate poverty at the level of districts.

The Minister of Planning and International Cooperation pointed out that government adopts many programs aiming to reduce poverty, create more economic opportunities, and support youth employment, maintaining the 2006-2010 plan targets boosting the economic growth and encouraging investments in order to help the destitute people. 

In her speech, UNDP representative in Yemen Flavia Pansieri asked Yemeni government to exert more efforts to alleviate poverty especially in the rural areas, hinting the regional work plan of her program aims to achieve a development growth directed to the rural area's deprived people especially women through granting loans that help increase the income.

Moreover, the report has shown an increase in school drop-outs among deprived people's children, with 1 percent in urban areas and 21 percent in the countryside. Malnutrition is another serious problems and one third of children between 5-6 years suffer sever dwarfism.

Meanwhile, a recent report by Yemen's Central Bank indicated that the country's foreign indebt has climbed to $5.7 billion, after it was $5.4 billion during the same period of the previous year.

The report attributes this increase to the rise of the loans granted to Yemen over the same period, along with interests and deferred installments, mostly from countries outside Paris Club creditors.

It also added that indebt is distributed as follows: 60 percent to international financing institutions and mounting to $3.3 billion, $1.7 billion to countries outside Paris Club.

Observers believe that Yemen's foreign indebt has risen because of the some dysfunctions including the slow withdrawing of loans which delay the implementation of projects and thus cause an increase in their overall costs.

The annual control statement of government in 2006 indicated that foreign loans withdrawn during the same year reached YR33.8 billion, lesser than what is estimated in general budget with YR 28 billion; while withdrawal drop off to YR 15 billion, with a cut of 21.9 percent.

It hinted that the inaccuracy of estimated costs of projects financed by foreign grants caused some donor to freeze part of loans and thus depriving the country from funding, after the state exerted efforts to obtain it as in the project relating to the Capital's sanitation treatment station.

Further, the statement added those treasury stands further burden represented in settling the interests and commissions of funds not fully exploited and Yemen settled $6.6 million over the years 2004 to 2006, according to the Central Bank's statements.