Yemen Developing a Country Essay Example For Students

Yemen: Developing a Country Essay Yemen:A Focus on Development for the Oil and Tourism IndustriesYemen, a third world country desperately trying to achieve 2nd or even 1st world status, is in the midst of turmoil and tribulation in trying to bail out their economy and increase their level of reform. Since 1995, the Yemeni government began to implement a large scale program of reform. The program was formulated in cooperation with the IMF and the World Bank and it is considered a liberal program aimed at making the market the dominant regulator of the economy (6. Mallakh, 241.) Unfortunately, the outcome of this reform is not encouraging even though 1995 and 1996 were nominally successful years for the program. Yemens economy continues to operate under the auspices of the International Monetary Fund (IMF) and the World Bank, with the government moving forward with the economic-reform package that was initiated in 1995 (6. Mallakh, 241.) In the conclusion of my first case study, I found that in order for Yemen to succe ssfully reform economically, there was a definite need for foreign investment. Whereas this may prove to be true for a minute part of the economy, it fails to recognize the most blatant of truths: the Yemeni economy cannot survive without the counterbalance on the oil industry concerning the imports and exports. I. Yemeni oil production, Exploration and Foreign Investment1. Oil ProductionYemens current oil output of about 350,000 bbl/d provides the countrys main source of income. After a slight decline from 1995 to 1996, oil production is back on the increase. In 1996, output fell 5,000 bbl/d to 340,000 bbl/d, rebounding to 385,000 bbl/d in 1997. Yemen contains proven oil reserves of 4 billion barrels. Proven recoverable reserves of 1.7 billion barrels are concentrated in five areas: Marib-Jawf Block 18 (490 million barrels), Masila Block 14 (550 million barrels) in the south, the Jannab Block 5 (345 million barrels), and Iyad Block 4 (135 million barrels) in central Yemen. The Masi la block is the countrys most productive oil field at 200,000 bbl/d followed by Marib-Jawf at 140,000 bbl/d (4. USEIA)2. Exploration and Bringing in Foreign InvestmentA. ExplorationExploration for additional reserves and new investments from foreign companies began to decline in 1994, due mainly to civil war between north and south Yemen, unattractive exploration and production contractual conditions, and the low success rate of hydrocarbon discoveries. However, exploration activity picked up again in 1997 after the civil war ended and the government started to offer more attractive contract terms. By mid 1997, approximately 20 exploration agreements were in force with foreign oil companies (4. USEIA) (5. E.I Utilitarianism and Abortion Essay3. Tourist numbers increasedA record 60 thousand tourists visited Yemen in 1995 and 75,000 in 1997. The tourism revenues reached US$ 45 million in 1996. The number of workers in tourist establishments is now more than 5900. These figures indicat e that the momentum is accelerating, and hopefully, it has immense prospects in the coming phase. However, the number of tourists visiting Yemen is relatively modest in comparison with those visiting other countries which lack Yemens attractions and scope for tourism (2.Yemen Observer.) 4. Promotional SchemesBut to give it a positive thrust, there must be a comprehensive plan for promoting tourist drive in the country like a strategy for marketing and advertising, and tourism scheme for Yemeni coasts. The Ministry of Culture and Tourism must play a more aggressive role in promoting tourism. It should intensively provide all the facilities for all potential domestic as well as foreign investors in this field. In this respect, it should be pointed out that Yemen has various natural, cultural, and coastal resources that can, if exploited well, be developed into centers of tourist interest. The Yemeni coast extends over 2000 kilometers along the shores. It has also more than 112 islands, both in the Red and Arab seas. The Ministry of Culture and Tourism should also coordinate and cooperate with other ministries so as to promote this industry and show its rosy picture. There must be a cooperation with the Ministry of Housing and Urban Planning in order to build more hotels and increase access points such as airports. It should encourage the building of more four-star and five-star hotels. Roads to different archaeological site and high mountains, which can be used in gliding, should be improved. The rural places, in addition, should be taken into consideration because of their striking beauty (8. IGY pg 4-16.)5. Role of the MediaAnother point that should be raised here is the significant role of the mass media in activating and marketing tourism in Yemen. Their role is considerably integral to that of the Ministry of Tourism. They can help a lot in raising public awareness of the importance of the tourism industry in increasing the national income. This is because tourism is a product requiring social interaction and that social awareness should be promoted as a part of the effort to increase tourism. The information media can also help in conveying the messages of the Ministry of Tourism which must reach all people. They will also help in educating people in the significance of protecting the environment from any sort of destruction because if the environment is destroyed, then tourism will collapse. With regard to the archaeological sites, ancient monuments must be preserved and well looked after. The government should make strict measures against smugglers of archaeological masterpieces to other countries (2.Yemen Times.) A. World Bank AssistanceOne last note is that officials from the World Bank have also shown interest in Yemens tourist industry. A World Bank team that was recently visiting Yemen, and which traditionally financed efforts to preserve old/historic cities, showed interest in the re-structuring and re-invigorating of the tourism industry. Though previously not involved in tourism per se, the World Bank team expressed an interest in exploring financial development projects in this sector (2.Yemen Observer.) III. Concluding thoughts, Forcasts, and Works CitedFor the past several years, Yemen has been under the microscope of the world. Everyone has been analyzing everything from tourist kidnapping to the recent slide in oil prices and the recession it has caused. In the not so distant past, news headlines on Yemen were full of promise and optimism. Now, the economy is in trouble. In my opinion, the clear solution lies right at the top. You must have a stable, strong and concise government in order to maintain order throughout the country. With plenty of interest shown from International Banks and Trusts, Yemen has the resources to stabilize and restructure, starting with government bureaucracy, and eliminate corruption. The oil crisis will eventually play itself out, but foreign investors must be continually attracted to Yemen. This not only brings in revenue, but opens the door to the world of International Trade and the reality of a 1st world economy. But right now, Yemen needs to focus on continuing to repay their debts on time and developing their touris m industry. The tools are there for the Ministry of Culture and Tourism to implement, The only thing that needs to be complemented is the kidnapping problem. With stricter policy on this issue and the influence of a positive mass media, the tourist industry can become an important industry after oil in Yemen.